James River Group (JRVR) Misses Q2 EPS by 9c, Revenues Beat

James River Group (NASDAQ: JRVR) reported Q2 EPS of $0.56, $0.09 worse than the analyst estimate of $0.65. Revenue for the quarter came in at $214.52 million versus the consensus estimate of $211.72 million.

• Fourth Quarter 2018 Net Income of $11.6 million -- $0.38 per diluted share, a $0.37 increase over the fourth quarter of 2017, and Adjusted Net Operating Income of $17.1 million -- $0.56 per diluted share, a $0.43 increase over the fourth quarter of 2017
• Full year 2018 Net Income of $63.8 million -- $2.11 per diluted share, a $0.67 increase over the full year 2017, and Adjusted Net Operating Income of $70.6 million -- $2.33 per diluted share, a $0.76 increase over the full year 2017
• Full year Adjusted Net Operating Return on Average Tangible Equity1 of 14.8%, the Company's highest return since 2006
• Tangible Book Value per Share of $16.34, an increase of 9.8% from year-end 2017, inclusive of dividends
• Combined Ratio of 96.5% for the quarter, an improvement of 5.5 percentage points over the prior year quarter
• Net Investment Income was largely flat compared to the prior year quarter and year, but Net Investment Income (Loss) from Other Private Investments was ($1.3 million) for the quarter, as compared to $1.4 million in the prior year quarter

Robert P. Myron, the Company’s Chief Executive Officer, commented, “I am pleased with our results for the full year 2018. Our 2018 Adjusted Net Operating Return on Average Tangible Equity of 14.8% represented our highest result since 2006. We had strong performance across the Company as all three segments generated significant underwriting profits in 2018 with minimal property losses."

"Looking ahead, I am very optimistic about our prospects for a successful 2019. We continue to get strong rate increases and submission growth in our core Excess & Surplus Lines business as rates increased 9.7% and submissions increased 12% for the fourth quarter, causing our core Excess & Surplus Lines gross written premium to grow 18% during the quarter. We renewed our largest account for another year. In our Workers' Compensation business, loss emergence has been low and margins remain attractive. We have significant momentum to continue to grow our fronting business. We are well positioned to achieve a 12.0% or better Adjusted Net Operating Return on Average Tangible Equity for 2019.”

For earnings history and earnings-related data on James River Group (JRVR) click here.

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