James River Group Holdings, Inc.JRVR

James River Group Holdings, Inc. Segments Disclosure

10-KFiled Mar 4, 20257 min read
Segment Information
The Company's continuing operations are comprised of three reportable segments, two of which are separately managed business units and the third (“Corporate and Other”) includes the Company’s remaining operations. The Excess and Surplus Lines segment primarily offers commercial excess and surplus lines liability and excess property insurance products. The Specialty Admitted Insurance segment offers specialty admitted fronting and program business and, prior to the sale of the Company's renewal rights in 2023, workers’ compensation insurance coverage. The Corporate and Other segment consists of certain management and treasury activities of James River Group, James River UK, and JRG Holdings as well as interest expense associated with senior debt and Junior Subordinated Debt, and investment income. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Prior to entering into a definitive agreement to sell JRG Re on November 8, 2023, JRG Re was considered a reportable segment (the “Casualty Reinsurance” segment). After entering into the agreement to sell JRG Re, the Company no longer considers Casualty Reinsurance to be a reportable segment, but instead it is reported as discontinued operations. The segment information below excludes discontinued operations for all periods presented.
Segment profit (loss) is measured by underwriting profit (loss), which is generally defined as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) in “other income” in the Consolidated Statements of (Loss) Income and Comprehensive Loss less loss and loss adjustment expenses on business not subject to retroactive reinsurance accounting (see Retroactive Reinsurance Accounting in Note 8 - Reserve for Losses and Loss Adjustment Expenses) and other operating expenses. Other operating expenses include the underwriting, acquisition, and insurance expenses of the operating segments and, for consolidated underwriting profit, the expenses of the Corporate and Other segment. Other operating expenses for the Corporate and Other segment include personnel costs associated with the Bermuda and U.S. holding companies, professional fees, share-based compensation for the full Company, and various other corporate expenses that were not reimbursed by our subsidiaries, including costs associated with rating agencies and strategic initiatives. Net commissions in the table below are net of amounts deferred as deferred policy acquisition costs. Employee compensation includes both cash and share-based compensation, as well as employer expenses related to payroll taxes and benefits, and is net of amounts allocated to losses and loss adjustment expenses and amounts deferred. All other operating expenses include, amongst other expenses, costs for insurance, outside professional fees including legal, audit, and consulting, office rent, bad debt expense, and taxes, licenses and fees on business written. Segment results are reported prior to the effects of intercompany pooling agreements and intercompany reinsurance agreements. All gross written premiums and net earned premiums for all periods presented were generated from policies issued to U.S. based insureds. Segment revenues for each reportable segment consist of net earned premiums, net investment income, and realized and unrealized (losses) gains on investments.
The Company's Chief Executive Officer ("CEO") has final authority over segment resource allocation decisions and performance assessment, and consequently, is identified as the Chief Operating Decision Maker ("CODM"). The CEO considers segment underwriting profit (loss) in the annual budget and forecasting process, and in monthly financial reviews of actual segment results compared to budget and prior year periods in order to assess segment performance and make strategic operating decisions regarding the business written by the segments, the allocation of capital and personnel to the segments, and compensation for segment employees. The segment information presented below aligns with the information that is presented regularly to the CEO.
Excess and
Surplus Lines		Specialty
Admitted
Insurance		Corporate
and
Other		Total
(in thousands)
As of and for the Year Ended
December 31, 2024
Gross written premiums$1,017,029 $414,743 $— $1,431,772 
Net earned premiums512,237 87,959 — 600,196 
Fee income— 4,585 — 4,585 
Losses and loss adjustment expenses485,951 68,423 — 554,374 
Less: losses and loss adjustment expense - retroactive reinsurance37,237 — — 37,237 
Losses and loss adjustment expenses excluding retroactive reinsurance448,714 68,423 — 517,137 
Other operating expenses:
Net commissions56,186 (11,243)— 44,943 
Employee compensation62,176 14,115 23,804 100,095 
All other operating expenses22,616 14,376 11,168 48,160 
140,978 17,248 34,972 193,198 
Underwriting (loss) profit(77,455)6,873 (34,972)(105,554)
Segment revenues594,433 109,472 3,721 707,626 
Net investment income73,341 16,937 2,811 93,089 
Interest expense— — 24,666 24,666 
Segment goodwill181,831 — — 181,831 
Segment assets3,516,399 1,390,894 99,783 5,007,076 
Excess and
Surplus Lines		Specialty
Admitted
Insurance		Corporate
and
Other		Total
(in thousands)
As of and for the Year Ended
December 31, 2023
Gross written premiums$1,007,351 $501,309 $— $1,508,660 
Net earned premiums609,566 98,439 — 708,005 
Fee income— 5,301 — 5,301 
Losses and loss adjustment expenses425,035 75,122 — 500,157 
Less: losses and loss adjustment expense - retroactive reinsurance4,991 — — 4,991 
Losses and loss adjustment expenses excluding retroactive reinsurance420,044 75,122 — 495,166 
Other operating expenses:
Net commissions61,542 (12,809)— 48,733 
Employee compensation57,436 18,492 22,502 98,430 
All other operating expenses16,197 18,858 11,438 46,493 
135,175 24,541 33,940 193,656 
Underwriting profit54,347 4,077 (33,940)24,484 
Segment revenues690,388 119,777 1,844 812,009 
Net investment income69,325 13,568 1,153 84,046 
Interest expense— — 24,627 24,627 
Segment goodwill181,831 — — 181,831 
Segment assets3,083,798 1,387,020 63,039 4,533,857 
Excess and
Surplus Lines		Specialty
Admitted
Insurance		Corporate
and
Other		Total
(in thousands)
As of and for the Year Ended
December 31, 2022
Gross written premiums$921,164 $490,208 $— $1,411,372 
Net earned premiums555,597 74,137 — 629,734 
Fee income— 3,761 — 3,761 
Losses and loss adjustment expenses382,094 58,548 — 440,642 
Less: losses and loss adjustment expense - retroactive reinsurance15,742 — — 15,742 
Losses and loss adjustment expenses excluding retroactive reinsurance366,352 58,548 — 424,900 
Other operating expenses:
Net commissions47,006 (18,411)— 28,595 
Employee compensation47,898 17,823 20,857 86,578 
All other operating expenses11,290 15,704 10,403 37,397 
106,194 15,116 31,260 152,570 
Underwriting profit83,051 4,234 (31,260)56,025 
Segment revenues570,087 81,593 9,834 661,514 
Net investment income28,664 5,068 9,456 43,188 
Interest expense— — 13,872 13,872 
Segment goodwill181,831 — — 181,831 
Segment assets2,627,956 1,277,988 85,332 3,991,276 
The following table reconciles the underwriting (loss) profit of operating segments by individual segment to consolidated (loss) income from continuing operations before income taxes:
Year Ended December 31,
202420232022
(in thousands)
Underwriting (loss) profit of the operating segments:
Excess and Surplus Lines$(77,455)$54,347 $83,051 
Specialty Admitted Insurance6,873 4,077 4,234 
Total underwriting (loss) profit of operating segments(70,582)58,424 87,285 
Other operating expenses of the Corporate and Other segment(34,972)(33,940)(31,260)
Underwriting (loss) profit(105,554)24,484 56,025 
Losses and loss adjustment expenses - retroactive reinsurance(37,237)(4,991)(15,742)
Net investment income93,089 84,046 43,188 
Net realized and unrealized gains (losses) on investments3,625 10,441 (15,720)
Other income6,131 4,216 551 
Other expenses(6,145)(3,792)(795)
Interest expense(24,666)(24,627)(13,872)
Amortization of intangible assets(363)(363)(363)
Impairment of intangible assets— (2,500)— 
(Loss) income from continuing operations before income taxes$(71,120)$86,914 $53,272 
The Company currently has 15 underwriting divisions, including 14 in the Excess and Surplus Lines segment, and one in the Specialty Admitted Insurance segment. Each underwriting division focuses on a specific industry group or coverage.
Gross written premiums by segment and underwriting division are presented below:
Year Ended December 31,
202420232022
(in thousands)
Excess Casualty$325,017 $339,870 $310,383 
General Casualty237,632 202,861 173,574 
Manufacturers and Contractors176,494 180,074 156,645 
Excess Property53,254 64,574 52,104 
Energy46,405 51,593 42,290 
Small Business39,946 38,561 36,930 
Allied Health31,791 30,904 34,156 
Commercial Auto27,819 29,379 37,974 
Life Sciences25,642 27,595 32,277 
Sports and Entertainment22,192 17,826 13,934 
Environmental20,096 13,832 20,676 
Professional Liability9,367 9,264 8,936 
Medical Professionals870 955 1,285 
Management Liability504 63 — 
Total Excess and Surplus Lines segment1,017,029 1,007,351 921,164 
Specialty Admitted Insurance segment414,743 501,309 490,208 
Total$1,431,772 $1,508,660 $1,411,372 
The Company does business with three brokers that generated $345.1 million, $245.5 million and $134.1 million of gross written premiums for the Excess and Surplus Lines segment for the year ended December 31, 2024, representing 24.1%, 17.1%
and 9.4% of consolidated gross written premiums and 33.9%, 24.1% and 13.2% of the Excess and Surplus Lines segment’s gross written premiums, respectively. The Company has agency contracts with various branches within the aforementioned brokers. No other broker generated 10.0% or more of the gross written premiums for the Excess and Surplus Lines segment for the year ended December 31, 2024. No individual insured generated 10.0% or more of the gross written premiums for the Excess and Surplus Lines segment for the year ended December 31, 2024.
The Specialty Admitted Insurance segment accepts applications for insurance from a variety of sources, including program administrators and managing general agents (“MGAs”). The Company does business with two agencies that generated $175.7 million and $63.7 million of gross written premiums for the Specialty Admitted Insurance segment for the year ended December 31, 2024, representing 12.3% and 4.5% of consolidated gross written premiums and 42.4% and 15.4% of the Specialty Admitted Insurance segment’s gross written premiums, respectively. No other agency generated 10.0% or more of the gross written premiums for the Specialty Admitted Insurance segment for the year ended December 31, 2024.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsNew Standards