James River Group Holdings, Ltd. Q4 FY2025 earnings call

• Focus on wholesale-only E&S platform, maintaining position in E&S marketplace and delivering shareholder value.
• Three primary themes: refined risk appetite and enhanced performance monitoring, lasting operational efficiencies and expense management from cost-saving initiatives including redomicile to US, and continued engagement and deployment of technology platform.
• In Q4, average policy size decreased, submission flow healthy, rate change positive. Redomicile to US simplified structure, improved tax efficiency, and lowered expense ratio. Technology upgrades like Guidewire implementation and partnership with Kalepa for AI-enabled underwriting workbench.
• 2025 results showed strong underwriting income, improved expenses, solid investment returns, and tax benefit. 2026 has leadership reorganization complete, cleaner corporate structure, improving margins, disciplined portfolio, and technology empowerment for execution.
• North American E&S market has attractive opportunities, focusing on smaller insureds, refreshed underwriting guidelines, new technology, and rate actions in certain areas.

For the full year 2025, the company delivered a combined ratio of 96.6%. The E&S segment generated $59,500,000 of underwriting income for the year and $19,700,000 for the fourth quarter. The full group results were $20,300,000 and $8,600,000 respectively. Gross written premium was down approximately 5% overall in 2025, with Property down 27% year over year and Manufacturers and Contractors down 11% year over year. Specialty departments like Allied Health, Professional Liability, and Management Liability saw growth, while Excess Casualty maintained flat performance. The full-year expense ratio was 30.2%, down from 2024. In Q4, average policy size decreased by 9.6% compared to the prior-year quarter, and for the full year, it was a 8.4% decrease. Submission flow across the casualty-focused business had 4% overall growth for 2025, and rate change was positive at 9% for the year.

• Expect to generate a low- to mid-teens return on average tangible common equity in 2026.
• See meaningful opportunities for profitable top line growth in 2026 due to technology employment.
• Continue to be vigilant with expenses while seeking profitable growth to bring improved scale across E&S business.

• Forward-looking statements are subject to various risks and uncertainties which may cause actual results to differ materially.
• Risks and uncertainties detailed in cautionary language regarding forward-looking statements in yesterday's earnings release, and risk factors of most recent Form 10-Ks and other reports and filings with SEC.

Q: No questions from analysts received A: No questions answered as no analyst questions were presented