James River Group Holdings Ltd has reported second quarter net income of $20.8 million, or 60 cents per diluted share, compared to net income of $35.6 million, or $1.16 per diluted share, for the second quarter of 2020.

The Bermuda-based insurance holding company said adjusted net operating income for the second quarter of 2021 was $18.8 million, or 54 cents per diluted share, compared to adjusted net operating income of $17.4 million, or 56 cents per diluted share, for the same period in 2020.

James River reported a combined ratio of 89.7 per cent for the Group and 77.2 per cent in the E&S segment, an improvement of 5.3 and 6.8 points, respectively, over the prior year quarter.

The company had record quarterly underwriting profit of $25.7 million for the combined operating segments.

James River reported adjusted net operating return on average tangible equity of 14.2 per cent for the second quarter.

The company recorded 15.1 per cent growth in Core, excluding Commercial Auto, Excess and Surplus Lines gross written premium and an 18.1 per cent increase in E&S renewal pricing, each versus the prior year quarter.

Fronting business gross premiums written grew 59 per cent within the Specialty Admitted segment as recently added programmes continue to mature and expand. Segment gross written premium grew 46.1 per cent versus the prior year quarter.

Tangible book value per share was $17.18, an increase of 25.4 per cent from March 31, reflecting second quarter results and $192.1 million of net proceeds (6.5 million new shares issued) from the common share offering which closed on May 10.

Net investment income for the second quarter was $14.3 million, which compares to $15.4 million for the same period in 2020. The decrease was principally caused by lower investment income from restricted cash and lower investment income from the company’s bank loan portfolio resulting from the sale of a substantial part of that portfolio during the second quarter of 2020.

The board of directors declared a cash dividend of 30 cents per common share, payable on September 30 to all shareholders of record on September 13.

Frank D'Orazio, the company’s chief executive officer, said: “The company has delivered excellent second quarter results, reflecting the resilience of our business model and singular focus of responding to our trading partners during very robust market conditions.

“Our growth in Core E&S gross written premiums exceeded expectations while our 18.1 per cent increase in E&S renewal rates marked the 18th consecutive quarter of rate growth, compounding to 42.5 per cent over the same period.

“The fronting business and fee income in our Specialty Admitted Insurance segment also continues to scale meaningfully, as segment premium increased by 46.1 per cent in the quarter.

“Overall, the Group produced a record underwriting profit in the quarter as commercial auto loss emergence was in line with our indications while our claims closure rate remained strong.”

James River Group Holdings is a Bermuda-based insurance holding company that owns and operates a group of specialty insurance and reinsurance companies. The company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance.