JAMES RIVER SWINGS TO RED ON RESERVE STRENGTHENING

Bermudian re/insurer James River swung to a fourth-quarter net loss of $20.3m from income of $20.5m after strengthening reserves for its casualty reinsurance business and one large commercial motor account in runoff. The group swung to an adjusted operating loss per share of 95¢ from income of 76¢, missing analysts’ forecast of a 14¢ loss. With adverse reserve development jumping to $86m from $8.8m, the group swung to an underwriting loss of $43.4m from income of $18.7m and the combined ratio added 37.2 points to 131%. Gross written premiums fell 4.1% to $359.7m, as the cancellation of the large commercial motor account offset a 39% increase in the group’s excess and surplus lines divisions. For all of 2020, James River’s net income fell 87% to $4.8m, reflecting a swing to a $4.4m underwriting loss from income of $17.9m and a $13.1m increase in realised and unrealised losses. The combined ratio added 4.4 points to 105.6%, while gross written fell 14.5% to $1.26bn.