James River Group Holdings, Ltd. Q4 FY2026 earnings call

First, refined risk appetite and enhanced performance monitoring with focus on smaller and more profitable accounts in casualty universe, exiting unprofitable classes. Second, lasting operational efficiencies and expense management from 2025 initiatives like re-domicile to US, removing meaningful expenses. Third, continued engagement and deployment of technology platform, including core operating systems upgrade to Guidewire in 2026 and partnership with Caleppa for AI-enabled underwriting workbench. Refreshed and reorganized E&S leadership team in place. Submission flow across casualty-focused business healthy with 4% growth in 2025. Rate change positive at 9% for the year. Expense discipline with re-domicile simplifying corporate structure, improving tax efficiency, and greater flexibility.

For the full year 2025, gross written premium was down approximately 5%. Two primary divisions, 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. ENS segment generated $59.5 million of underwriting income for the year and $19.7 million for the quarter. Full year combined ratio was 96.6%. Fourth quarter ENS combined ratio was 86%. Average policy size decreased in Q4 and full year. Rate change was positive at 9% for the year. Expense ratio improved with full-year expense ratio over one point lower than 2024 and quarterly expense ratio over two and a half points lower than first quarter.

Expect to generate a low to mid-teen return on average tangible common equity in 2026. See meaningful opportunities for profitable top-line growth in 2026, especially with focus on smaller insureds, refreshed underwriting guidelines, new technology, and performance monitoring. Expect to push rate in areas like excess casualty and parts of general casualty portfolio, and relax rate in some E&S segment areas to gain scale.

Forward-looking statements subject to various risks and uncertainties detailed in cautionary language in earnings release and risk factors of Form 10-K and other filings. Impact of lower rate environment on investment income. Competition in transitioning market affecting business. Continued caution in recognizing trends as book matures despite lower frequency of claims and improved loss emergence.

Q: No analyst questions received.

A: Concluded call, pleased with 2025 performance, motivated for 2026 with new leadership and progress.