Page 1

JAMES RIVER GROUP HOLDINGS , INC . James River Announces Third Quarter 2021 Results November 2 , 2021 - ■ Third Quarter 2021 Net Loss of $ 23.9 million ( $ 0.64 per diluted share ) and Adjusted Net Operating Loss¹ of $ 26.8 million - ( $ 0.72 per diluted share ) . ■ 21.3 % growth in Excess and Surplus Lines ( " E & S " ) Gross Written Premium and 8.7 % increase in E & S renewal pricing , each versus the prior year quarter , with nearly all underwriting divisions reporting positive growth and rate increases . The segment experienced its nineteenth consecutive quarter of renewal rate increases , compounding to 45.9 % over the same period . ■ Net catastrophes losses were $ 5.0 million in the third quarter and related to Hurricane Ida . Because the Company purchases significant property catastrophe reinsurance , it does not expect any additional net catastrophe losses from events during the quarter . The losses were primarily related to the Excess Property book in the E & S segment . ■ As previously announced , third quarter results include a pre - tax loss of $ 29.6 million recognized as adverse loss and loss adjustment expense reserve development in the E & S segment . This is associated with the loss portfolio transfer ( " LPT " ) reinsurance transaction executed during the third quarter that reinsures substantially all of the legacy portfolio of commercial auto policies . ■ Absent the catastrophe losses , an additional $ 8.1 million of reinstatement premiums related to casualty treaties and the LPT impact , the combined ratio for the E & S segment would have been 83.4 % , which compares to 85.2 % in the prior year quarter . ■ Fronting Gross Written Premium within the Specialty Admitted segment grew 11.6 % driven by the expansion of recently added programs , while gross fee income increased 21.5 % over the prior year quarter . -- PEMBROKE , Bermuda , Nov. 02 , 2021 ( GLOBE NEWSWIRE ) James River Group Holdings , Ltd. ( " James River " or the " Company " ) ( NASDAQ : JRVR ) today reported a third quarter 2021 net loss of $ 23.9 million ( $ 0.64 per diluted share ) , compared to net income of $ 26.3 million ( $ 0.85 per diluted share ) for the third quarter of 2020. Adjusted net operating loss¹ for the third quarter of 2021 was $ 26.8 million ( $ 0.72 per diluted share ) , compared to adjusted net operating income of $ 17.4 million ( $ 0.56 per diluted share ) for the same period in 2020 . ( Loss ) Earnings Per Diluted Share Net ( Loss ) Income Adjusted Net Operating ( Loss ) Income 1 Three Months Ended September 30 , 2021 2020 $ $ ( 0.64 ) $ ( 0.72 ) $ 0.85 0.56 1 See " Reconciliation of Non - GAAP Measures " below . Frank D'Orazio , the Company's Chief Executive Officer , commented , " With the legacy transaction executed during the third quarter , we have brought economic finality to substantially all of our commercial auto run off portfolio , allowing us to fully focus on the demonstrated strengths of our specialty insurance franchise . Our E & S and Specialty Admitted segments continue to deliver strong growth and underlying profitability . The E & S segment recorded its nineteenth consecutive quarter of positive rate impact , achieving a positive 14.5 % rate change on a year to date basis , while Specialty Admitted grew fee income by 21.5 % in the quarter as the segment continues to build scale . While our third quarter results were impacted by the aforementioned legacy transaction and reinsurance reinstatements , catastrophe losses stemming from Hurricane Ida and elevated prior year Casualty Reinsurance losses , overall macro and industry conditions remain very favorable and allow us to continue to focus on executing our corporate objectives . " Third Quarter 2021 Operating Results • Gross written premium of $ 346.6 million , consisting of the following : Three Months Ended September 30 , ( $ in thousands ) 2021 2020 % Change Excess and Surplus Lines Specialty Admitted Insurance $ Casualty Reinsurance 217,673 $ 121,175 7,751 179,458 112,589 21 % 19,805 $ 346,599 $ 311,852 8 % ( 61 ) % 11 % • Net written premium of $ 158.2 million , consisting of the following :