Key Highlights

  • Net loss from continuing operations was USD 187.3 million.
  • A USD 181.8 million charge fully impaired goodwill.
  • Underwriting loss was USD 20.0 million; combined ratio was 115.6%.
  • Net written premiums were USD 105.0 million, down 14.4%.

James River Group Holdings, Inc. (NASDAQ:JRVR) reported a net loss from continuing operations of USD 187.3 million for the three months ended September 30, 2026, largely driven by a USD 181.8 million charge to fully impair the previously carried amount of goodwill. This compares with Net Income from continuing operations of USD 1.6 million in the third quarter of 2025. Reported EPS was negative USD 0.10 and Revenue was USD 127.71 million, compared with estimates of EPS of USD 0.17 and revenue of USD 134.80 million.

Adjusted net operating results were a loss of USD 4.4 million, compared with income of USD 17.4 million. The net loss from discontinued operations was USD 133 thousand, compared with USD 572 thousand, reflecting litigation and other costs related to the sale of JRG Re.

Underwriting Results

Underwriting results were a loss of USD 20.0 million, with a combined ratio of 115.6%, compared with an Underwriting profit of USD 8.9 million and a combined ratio of 94.0% a year earlier. The prior year quarter was affected by USD 3.8 million of premium adjustments tied to prior years, including reinstatement premium in the Excess and Surplus Lines segment, which represented a 2.3 percentage point increase in that quarter's combined ratio.

The expense ratio increased to 33.7% from 28.3%, which the company attributed to a 14.0% decline in net earned premiums and lower ceding commissions reflecting higher retention in the Excess and Surplus Lines segment and significant non-renewals of programs in the Specialty Admitted Insurance segment.

Net written premiums were USD 105.0 million, compared with USD 122.7 million, with Excess and Surplus Lines net written premiums at USD 104.0 million, compared with USD 121.7 million.

Expenses and Capital

General and administrative expenses were down USD 2.9 million, or 9.2%, including a USD 3.4 million, or 15.6%, decline in compensation expenses, partially offset by higher software costs reflecting Investment in new E&S underwriting technology.

Tangible common Equity declined 11.7% in the quarter, driven by the net loss and rising interest rates, which led to unrealized losses on fixed maturities in other comprehensive income.

Nine Month Results

For the nine months ended September 30, 2026, the net loss from continuing operations was USD 189.5 million, including the USD 181.8 million Goodwill impairment, compared with net income from continuing operations of USD 17.7 million. Underwriting results were a loss of USD 26.5 million with a combined ratio of 106.6%, compared with a profit of USD 11.6 million and a combined ratio of 97.4%.

The expense ratio increased to 34.4% from 30.5%, due to an 11.2% decline in net earned premiums and the same ceding commission and non-renewal factors. General and administrative expenses decreased USD 9.5 million, or 9.0%. The net loss from discontinued operations was USD 503 thousand, compared with USD 2,347 thousand.

Goodwill Charge and Segment Ratios

James River's net loss of USD 187.3 million includes a USD 181.8 million charge that fully impaired goodwill. The company reports Excess and Surplus Lines and Specialty Admitted Insurance segments, and cited the combined ratio in each period, the premium decline in each segment and the change in tangible common equity.