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James River’s E&S profit rises, but higher expense ratio lifts combined
E&S gross written premium fell 17% to $250.2 million, while underwriting expenses rose 5.1% to $37.6 million, pushing the combined ratio to 92.8%.
James River Group Holdings reported a profitable second quarter in its excess and surplus (E&S) segment, but underwriting discipline came at a cost to the ratios, according to Insurance Business.
The E&S loss ratio improved to 65.4% from 66.4% a year earlier, yet the expense ratio widened to 27.4% from 25.3%. As a result, the E&S combined ratio rose to 92.8% from 91.7%, after underwriting expenses increased to $37.6 million even as net earned premium edged down 2.9% to $137.3 million.
E&S gross written premium fell 17% to $250.2 million, and net written premium declined 11% to $147.7 million. Chief executive officer Frank D'Orazio said the company is seeing growth in submissions and quotes but remains committed to disciplined capital deployment rather than writing more volume.
Insurance Business also noted that James River exhausted the $7.5 million remaining adverse development cover with Cavello Bay, the E&S Top Up ADC, in the second quarter. In specialty admitted insurance, gross written premium fell 76% to $18.7 million, while net written premium dropped 92% to $0.7 million, as the company reduced its fronting book and reallocated toward more attractive E&S opportunities.