On this page of StockholderLetter.com we present the 6/22/2023 shareholder letter from James River Group Holdings, Ltd. — ticker symbol JRVR. Reading current and past JRVR letters to shareholders can bring important insights into the investment thesis.
2022 Annual Report
Dear Fellow Shareholders: 2022 was a pivotal year for James River Group Holdings, Ltd. (the Company or James River ) as the Company returned to profitability after the significant efforts and strategic actions to address legacy issues while making improvements in how we manage and govern our business. Simultaneously, we have continued to capitalize on attractive underwriting conditions that have allowed us to gain additional scale in our insurance operations. The result has been a stronger and more profitable James River focused on providing earnings consistency and attractive returns on tangible capital to our shareholders. Our flagship Excess & Surplus lines ( E&S ) segment has continued to experience broad-based growth during the current market cycle highlighted by 24 consecutive quarters of positive renewal rate increases compounding to 64%, which we believe bodes well for future profitability. Our longstanding presence in the market and distinguished underwriting expertise in small and medium sized casualty risks has made us a trusted partner of both distribution and insured clients for over twenty years. In 2022, our E&S gross written premiums increased by more than 10% to $921 million while producing an 85% combined ratio1 and $83 million of underwriting profit2, the highest level in the segment s history. The Company s Specialty Admitted segment also had another strong year, producing a 94% combined ratio while continuing to grow fee income. The unit generated gross written premiums of $490 million while growing its fronted program business and maintaining underwriting and program management discipline. As a bottom-line focused organization, we continue to deploy our capital where we believe it will generate consistent and attractive returns for shareholders. As a result, we made the decision to meaningfully reduce our Casualty Reinsurance writings in 2022. Earlier this year, we suspended writing business in that segment as we reposition the Company s focus on our core insurance businesses, where we have considerably more scale and sector leadership positions. In summary, James River delivered very strong financial results in 2022 while continuing to execute on our corporate objectives. Achievements for the year included: Record underwriting profit2 of $50 million; A combined ratio1 of 94% which is the lowest for the Company since 2014; Net investment income of $71 million, representing an increase of 25% from the prior year; Adjusted net operating return on tangible common equity2 of 17%; and Further advances in corporate initiatives centered around employee engagement, enterprise risk management and technology. Since joining the organization, I continue to be extremely proud of what our team has collectively accomplished and believe the Company is well positioned for continued success in 2023 and beyond as we build an even stronger organization while creating additional shareholder value. 1 Excludes the impact of retroactive reinsurance accounting. 2 Underwriting profit and adjusted net operating return on tangible common equity (which is calculated as annualized adjusted net operating income (loss) divided by the average quarterly tangible common equity balances in the respective period) are nonGAAP financial measures. See Reconciliation of Non-GAAP Measures beginning on page 118 of this 2022 Annual Report for a reconciliation of each of underwriting profit, adjusted net operating income (loss) and tangible equity to the most comparable GAAP measures.
We appreciate your continued interest in James River and thank you for your ongoing support. Sincerely, Frank N. D Orazio Chief Executive Officer June 6, 2023 Forward-Looking Statements This letter contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the intent, belief or current expectations of James River and its management team, and may be identified by terms such as believe, expect, seek, should, may, will, intend, project, anticipate, plan, estimate or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forwardlooking statements. Important information regarding such risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this letter and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
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JRVR 6/22/2023 Shareholder/Stockholder Letter Transcript:

2022 Annual Report


Dear Fellow Shareholders:
2022 was a pivotal year for James River Group Holdings, Ltd. (the    Company    or    James River   ) as
the Company returned to profitability after the significant efforts and strategic actions to address legacy
issues while making improvements in how we manage and govern our business. Simultaneously, we have
continued to capitalize on attractive underwriting conditions that have allowed us to gain additional scale in
our insurance operations. The result has been a stronger and more profitable James River focused on
providing earnings consistency and attractive returns on tangible capital to our shareholders.
Our flagship Excess & Surplus lines (   E&S   ) segment has continued to experience broad-based growth
during the current market cycle highlighted by 24 consecutive quarters of positive renewal rate increases
compounding to 64%, which we believe bodes well for future profitability. Our longstanding presence in the
market and distinguished underwriting expertise in small and medium sized casualty risks has made us a
trusted partner of both distribution and insured clients for over twenty years. In 2022, our E&S gross written
premiums increased by more than 10% to $921 million while producing an 85% combined ratio1 and
$83 million of underwriting profit2, the highest level in the segment   s history.
The Company   s Specialty Admitted segment also had another strong year, producing a 94% combined
ratio while continuing to grow fee income. The unit generated gross written premiums of $490 million while
growing its fronted program business and maintaining underwriting and program management discipline.
As a bottom-line focused organization, we continue to deploy our capital where we believe it will
generate consistent and attractive returns for shareholders. As a result, we made the decision to meaningfully
reduce our Casualty Reinsurance writings in 2022. Earlier this year, we suspended writing business in that
segment as we reposition the Company   s focus on our core insurance businesses, where we have considerably
more scale and sector leadership positions.
In summary, James River delivered very strong financial results in 2022 while continuing to execute on
our corporate objectives. Achievements for the year included:
    Record underwriting profit2 of $50 million;
    A combined ratio1 of 94% which is the lowest for the Company since 2014;
    Net investment income of $71 million, representing an increase of 25% from the prior year;
    Adjusted net operating return on tangible common equity2 of 17%; and
    Further advances in corporate initiatives centered around employee engagement, enterprise risk
management and technology.
Since joining the organization, I continue to be extremely proud of what our team has collectively
accomplished and believe the Company is well positioned for continued success in 2023 and beyond as we
build an even stronger organization while creating additional shareholder value.
1
Excludes the impact of retroactive reinsurance accounting.
2
Underwriting profit and adjusted net operating return on tangible common equity (which is calculated as annualized adjusted
net operating income (loss) divided by the average quarterly tangible common equity balances in the respective period) are nonGAAP financial measures. See    Reconciliation of Non-GAAP Measures    beginning on page 118 of this 2022 Annual Report for
a reconciliation of each of underwriting profit, adjusted net operating income (loss) and tangible equity to the most comparable
GAAP measures.

We appreciate your continued interest in James River and thank you for your ongoing support.
Sincerely,
Frank N. D   Orazio
Chief Executive Officer
June 6, 2023
Forward-Looking Statements
This letter contains forward-looking statements as that term is defined in the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include statements regarding the intent, belief or current
expectations of James River and its management team, and may be identified by terms such as believe, expect,
seek, should, may, will, intend, project, anticipate, plan, estimate or similar words. Forward-looking statements
involve risks and uncertainties that could cause actual results to differ materially from those in the forwardlooking statements. Important information regarding such risks and uncertainties can be found in our filings with
the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K.
These forward-looking statements speak only as of the date of this letter and the Company does not undertake
any obligation to update or revise any forward-looking information to reflect changes in assumptions, the
occurrence of unanticipated events, or otherwise.


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