James River has announced its financial results for the third quarter of 2026, reporting a net loss available to common shareholders of $189.4 million, which included a non-cash goodwill impairment of $181.8 million.
The goodwill was added to the balance sheet when James River was acquired by an investor group in 2007, rather than as a result of any acquisition made by the company.
According to the insurance holding company, the impairment charge does not affect its adjusted net operating results, statutory capital or compliance with debt covenants.
Adjusted net operating loss for Q3 2026 stood at $4.4 million, improving from the $17.4 million reported for Q3 2025. The improvement was primarily impacted by adverse reserve development in the Excess & Surplus (E&S) segment.
Submission volume for both new and renewed business across active E&S divisions remained robust, rising 8% year-over-year.
James River has remained disciplined in adding risk that aligns with its underwriting standards, choosing to focus on growth in smaller accounts, the firm noted.
For Q3 2026. the firm recorded gross written premiums of $186.1 million, compared to Q3 2025’s $237.3 million. Net earned premiums for the quarter were $127.7 million, with E&S lines contributing $126.3 million, and Specially Admitted Insurance contributing $1.4 million.
This year, James River completed a Detailed Valuation Review of the E&S segment’s reserves. This is a first principles, ground-up review of all assumptions underpinning the reserve base.
Following this evaluation, a net adverse development of $19.2 million was recognized by the company against $1 billion in total E&S net reserves. A specific runoff portfolio inside the Product Liability line was the primary driver of this development, explained the company.
Notably, across the broader E&S portfolio, lower claim frequency and reduced incurred loss trends persist for more recent accident years starting in 2023.
Total revenues for Q3 2026 were $147.7 million, compared to the $172.7 million seen in Q3 2025.
The combined ratio for the quarter increased to 115.6% compared to Q3 2025’s 94%. The Q3 2026 loss ratio was 81.9%, the expense ratio 33.7%, and the accident year loss ratio was 65.7%.
Frank D’Orazio, the Company’s Chief Executive Officer, commented: “E&S submission growth and our market opportunity set remain strong across the franchise as we leverage our investments in technology and further emphasize smaller accounts and greater profitability.
“During the quarter, we completed our first principles reserve review and while the Company continues to see distinct improvement in overall profitability since 2023, we bolstered reserves in our Product Liability line to address a specific portfolio that is now fully in runoff.”
