JRVR - Earnings call transcript Q1 2021 | James River Group Holdings, Ltd.

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Operator

Welcome to the James River Group Q1 2021 Earnings Call. My name is John, and I'll your operator for today's call. [Operator Instructions]. Please note the conference is being recorded. And I will now turn the call over to Sarah Doran, Chief Financial Officer. begin. may you Sarah,

Sarah Doran

Good First and Call. Quarter John. James to River Group XXXX morning, you, welcome everyone, the Thank Earnings Conference

the actual beliefs, be are will various risks that call, statements. which to differ During statements may materially. uncertainties, These cause are making subject based to expectations intentions, forward-looking current and and results assumptions on we

most uncertainties, Commission. the For we a update made with section recent Group. We statements will over the cautionary in do statements. Executive earnings language forward-looking and and D’Orazio, undertake Securities now and to the River XX-K, and other Officer duty of discussion of Frank filings Form our the James call please such Exchange XX-Qs to Form regarding any see risks I Factors turn not release and Risk any Chief of reports forward-looking

Frank D’Orazio

and strengthen James everyone the Sarah have to Auto the overhang of I've pre-recorded to quarter. as able November we eliminate like it in continue to have the to call joining opportunities market first, it our the goal hand for fronting us to over fee today Commercial Welcome of But of our my you joined company be taken regarding best-in-class Since and I income today, to business; actions as a carrier made runoff my and our to focused primary cover we secondly, with for our E&S on before expanding I'd an during earnings the who to portfolio. quarter. joining surrounding personal will I'm been: by remains quarter in XXXX, listening first thank position objectives insure for with fully XXXX. that the us, our front we've some Sarah, Doran, significant commentary share performance you River CFO, financial

segments start a have to first in more moments objective in achieve significant been few concerns that Commercial underwriting behind good. runoff the for share that step about company you able Auto in quarter, commentary and with While I accomplishments us major I put first took my to our to our intend with it's portfolio the just with quarter a the appropriate

first strengthened $XXX by the million year quarter, our portfolio. prior Auto our runoff During we reserves Commercial in

As the losses meaningfully it imagine, data, Directors, in Commercial taking as moved our you of so terminated decision quarters, reported Commercial more at lightly, methodologies. this of for the decline on and actuarial data, in a account industry would the indicated support reserve The March thriving than Auto taken can charge expectations our expected reported strengthening losses but adjusted runoff, XXXX. for blended further data, a methodology XX, In the meaningfully been this average heavy the into severity significant work experience claim prior reserves account inherent reported in continued anticipated. loss emergence account response, we in XXXX In resulting actuarial book QX have this is ending came of data, our emergence severity River this X pricing based for outcome XXXX. disappointing focus after months quarter. might We saw had March James for on with Auto a terminated after Board business. wasn't XX, Admittedly, on that prospective that portfolio we that in full account QX our but exceeded our the

recent loss and COVID-XX quarters reserve catch paid and to thought a quarter conservative the significant elevated and changed in that weight the more up. the incurred had losses reported XXXX continuation conclude first own also account. than inputs this loss us greater experience that to rather of the on a in in the on array of used originally was result The we to of us give estimate methodology our impacted emergence and incurred our only more highly be portfolio projections losses of was our However, is would using led methods than prior in better an giving likely ultimate what acknowledgment that

in they've been this to the are than and portfolio history. close now reserves a Our stronger step the company's of proactive chapter

Our are on XX/XX/XXXX. the auto into commercial account runoff than significant now total went reserves more when at

of XXXX IBNR, held Our of the XX% now end of at closed. today runoff portfolio in consist reserves the XX% with the existed that claims

now the Commercial runoff. since Our account per into current increased to net went have open reserves Auto claim XXX%

in claim per Additionally, our is claim reserve greater average this more portfolio XXXX. current net XX% on paid open commercial our net than than

may previously reduce our to reinsurance legacy co-participation of you move interest in features range end very to the risk-sharing outcomes limit. of that legacy new in likely levels our I exploring premium as reserve additional recall and I QX as require as defined levels portfolio. at the call, potentially the frictional higher costs tail marketplace view. a risk that and I feel potential an meaningful believe could this of ultimate or voiced structures many in available As from the a the market similar may feature, are a comfortable well

River and to all My months. without sector highlights which numerous define we the account, at company primary with experience ventures. our underwriting the River, the should years at a industry It the from now got commitment to to history, not working of onset stronger with the not excellence. team call. the of were over to metrics And for triangles, in been I forward auto underwriting noted and make ago, I'd quarter, come, listeners the to like that on other wrong. of runoff the look larger, consist that of point continue XX more the I loss vanguard my the of benefit of culture portfolio consists we a this of objective to today remind years this and runoff commercial some discussing a rich profitable underwriting past carriers, does management unlike company very failed promulgated James rates loss that or in James this is and it Several call has one in large new Before

you me some And that ability favorable E&S, of in quarter. ongoing let QX, core In the with experienced underlying now very the XX.X% positive market to our company's conditions. the we maximize segment's the so demonstrates GWP fundamentals current business for that the by share grew

rate to to that markets positive Just the yet the in moderate our Rate recorded full we eclipsed compounded change QX XXXX. our current positive since also quarter of cumulative of the and market conditions consecutive we as importantly, serve. XXth for quarter both sign figures, bringing rate at QX begun our a XXXX XX.X%, not XX.X% XXXX year have change

ratio in the activity and Our XX.X%, over quarter experienced year reported at The in ratio we XX% very is attractive XX% submission year similar the remained for QX calendar remains ratio XXXX. calendar robust, XXXX. very to excellent loss quote-to-buying improved core all E&S which reported loss the of core E&S

to We decline segment. from this in claims significant also continue benefit of a the frequency in

overall QX and ratio the This also is an Uri. portfolio what Winter addressed no now E&S through the impact the in conservatively we've between XX adjusted of E&S Remember for end For on risk attritional portfolio property had reminder managed from exposure from XX% combined exposure our decline runoff seen a XXXX, months very metric. that result, tail a claims last the earnings depending that an of capable virtually with a On segment our to quarter. excess of And of Storm our has XX% core as basis, certainty. is produced losses. we've is been perspective for XX% and both frequency

enjoys years, should the Our XXXX, by milestone grown last core in company. industry be for by space position $X E&S which division, over X its an a billion has segment a the leadership approaching end of major XX% the and

for fronting company's traction. fee-based active, The basis E&S is conscious the Specialty distribution our and to industry submission scale to commitment the significant QX plan. better gain have GWP relationships wake as positive and programs and of meaningful signed of partners the on have a we also efforts existing XXXX are fee-based significant the in to growth segment's with this payrolls, other pipeline organization several of fact wholesale Also as several traction, U.S. beginning that's XX.X% revenues activity as our we COVID-XX. segment's XXXX, increase also that the is over specialty very increased -- segment. impact our XX% starting that Our economy quarter, segment's programs over to just the significant and signs the already of demonstrating the get onboarded have in exposure new leverage workers' segment gaining are as segment forecast in the The new expand with Admitted show our recover fronting notable stated remains to opportunity compensation growth beginning in making mine begun business to throughout contacts and to fronting relationships XXXX prior continues

It in is well to XX.X% XXXX our And employee navigating In market by growing a our addition ahead quartile activity XX-year base as navigating attractive very XX.X% excellent of year. fee as appropriate, capturing the a the change QX I quarter, not a done well insurers. is ratio performs rate, its finally, record sign rate the dynamics the risk segment that current runoff combined has James very the for as and COVID renewal and date underlying show prudently, define this of performer embedded and the and large partners growth expansion, plan, job Collectively, producing distribution for an the of income cat company for wisely, inclusive will quarter. that the over where health Casualty actions pricing, segment of QX our over moved XX%, of unit the continues syndicating to quarter. top who good focus is portfolio. The its of track River, assumption believe primary positive an a to servicing due out growing margin accident current fourth and Reinsurance change the rate and of is effective capably our on quarter our Much these is effective prior.

the people, culture call With larger, returns. while our our producing carrier I'll us profitably profitable to turn in to call effort plans technology processes top-tier over and our Sarah create the that, renewing continuing specialty to an continue consistently for for in commitment more grow to our to Our invest a to Doran. XXXX the company, underwriting

Sarah Doran

Thanks, Frank.

points loss quarter. loss net the from the given a previously for few $XXX.X and quarter, the Let mentioned. $XXX.X financial million We the highlight the had of a a reported million reserve we charges of for quarter, me operating

attractive on reserving and As for Commercial pricing, in basis growth large very in of attractive rate quarter uplift growth remain segment, we our throughout meaningful runoff, Specialty E&S for turn Admitted continues and renewal organization. on for the business. savings go-forward fee the accelerating a segment, our prudent scale to the the significant reflect and and income page Market the scale acceleration expense performance our Auto conditions account

company's Let building incurred me Said are the in billion was strength of of block despite core This that franchise. year we from highlight year in the we and the our The a of year is and $XXX About quarter, XX.X% XX% different slightly block. of XX.X% E&S E&S way, a largest reserves, accident the block and have largest profitability net for XX.X% represents accident reported $X.X this renewal in is ratio we of also of rate about reserve ratio the the down few XXXX. not E&S. reserves. XXXX continue in XX.X% million than the of figures quarter increases of net XX% year-to-date. reserves higher our first The business core loss we reported XXXX, loss to ongoing full of of that full feel but core strength

Moving on to expenses.

to decreased or of X% of year. decreased this compared ratio segments as of the $X.X across dollar and XX.X% X quarter operating last to expenses down Our absolute the in the million group. expense amount XX.X% was quarter first group in The each about

segment. for continue been expense where efficiency. build our the expenses significant we as last have over commissions, meaningfully growth also gain lines We It years we Admitted working premium ceding to excess attractive casualty the scale ratio E&S strong and to our from benefited see in reduce such Specialty in also The X.X from segment. benefited in

increase to across first across quarter that increased in book. premiums highest company and quarter, been quarter expense our last the the expect first meaningfully down continued increases year combined the in as Gross highest year-to-date year. E&S in to line written of ratio that for rate Bringing the from XX.X% loss We ratio full XXX% the the accident casualty have over year accident have would in our and year either our ratios results. or excess XXX% together, expense amongst the the was be close

of segment to of pushed quarter, the has ratio of was in E&S, it net it is it quarter about that fourth which line the gross also business first meaningfully in in from That As retention this to the largest where is is last our down XX% quarter XXXX. year. down

E&S million. third compared loan to a in of and on net depending decline the of sale during retention was generally quarters as is to to be growth. quarter par the of between for portion and XXXX due we portfolio rates of The the of last investments, second divisions second the XXXX. the $XX.X year bank XX throughout investment first underwriting in our where to short-term quarter the We the meaningful reduction result interest expect ratio quarter income in NII $XX with on on the XX%, finally million, XX% And roughly experienced

quarter, that, hand it Frank. X%, last to yield was on gross And I'll This par with our back with quarter.

Frank D’Orazio

Sarah. our call. you, everyone to listening QX many XXXX again, pre-recorded Thank thanks And to earnings

We you to next to Enjoy quarter. forward rest your will look day. again reporting of the

James River (JRVR) 9 May 212021 Q1 Earnings call transcript