James River Group's Q2 2025: Unpacking Contradictions in Casualty Growth, Premium Retention, and Market Competition

Excess casualty growth and focus areas, policy/premium retention and market dynamics, expense ratio projections, competition from MGAs and MGUs are the key contradictions discussed in James River Group Holdings, Ltd.'s latest 2025Q2 earnings call.



Earnings and Operational Efficiency:
- James River Group reported an annualized adjusted net operating return on tangible common equity of 14%, consistent with their mid-teens target.
- This was achieved through deliberate operational efficiency improvements, with segment expenses declining over 20% in the first half of the year and corporate expenses decreasing by $2.4 million sequentially.

Premium Growth and Rate Changes:
- Gross written premium for casualty E&S increased by 4% compared to the prior year quarter, with overall E&S premium growing by 3%.
- The increase was supported by a healthy rate environment, with casualty rates up 14.5% in the quarter, including rate changes of over 20% in excess casualty.

Reinsurance Strategy and Retention:
- During the treaty renewal process, James River increased its retention of midyear E&S casualty quota share, while improving overall pricing and receiving additional treaty authorizations.
- This move is due to confidence in the business written since 2023, supported by underwriting changes that have led to a notable drop in claims counts.

Increased Underwriting Profitability:
- The E&S segment reported an underwriting profit of $11.7 million, with a combined ratio of 91.7%, nearly 4 points lower than the prior year quarter.
- This is attributed to consistent underwriting discipline, strong broker relationships, and favorable market conditions.