Bermuda-based James River Group Holdings Ltd expects to post losses for the third quarter, the company has said in advance of next week’s quarterly earnings statement.

The James River Group expects to report a net loss for the third quarter of 2021 of between $23 million and $26 million, and an adjusted net operating loss of between $25.5 million and $28.5 million. The combined ratio for the quarter is expected to be between 120 and 125 per cent.

The combined ratio for the excess and surplus Lines (E&S) segment would have been in the low 80s for the third quarter of 2021, an improvement as compared with the previous year’s quarter, absent catastrophe losses, additional reinstatement premiums for casualty treaties and the previously announced loss portfolio transfer (LPT), all having and impact on the E&S segment.

Growth in the E&S segment gross written premium was approximately 20 per cent compared with the quarter last year, and approximately 10 per cent across the company.

The results are inclusive of the pretax impacts of catastrophe losses of $5 million related to Hurricane Ida, net of reinsurance recoveries, additional reinstatement premiums of $8.1 million for casualty treaties in the E&S segment, $29.6 million associated with the previously announced LPT, and adverse development of $15.1 million related to the casualty reinsurance segment.

Because the company purchases significant property catastrophe reinsurance, it does not expect any additional net catastrophe losses related to recent events in excess of the $5 million included in the quarter.

In a parallel announcement, the company said that Patricia H Roberts and Thomas L Brown have been elected to the board of directors. In addition, Kirstin M Gould was also appointed to the board, which increases its membership from 10 to 11.

Ms Gould served as executive vice-president and general counsel and corporate secretary of XL Group Ltd.

She joined XL in 2000 and served in various leadership roles until XL was acquired by AXA, SA in 2018. She currently serves on the board of Pacific Life Re Global Limited where she is a member of the risk, audit and remuneration committees.

From 2005-2011, Ms Gould chaired the policy committee of the Association of Bermuda Insurers and Reinsurers.

J. Adam Abram, the company non-executive chairman, said: “Tom and Kirstin have valuable financial, risk management and corporate governance expertise, with deep knowledge of the specialty property and casualty insurance industry.

“We have been fortunate to attract directors who are independent and will bring a wealth of experience and expertise to our board.”

Ms Roberts, who served on the board since 2019, is the retired president and chairman of General Star Management Company and retired president and chairman of Genesis Management and Insurance Services Corporation, two wholly owned subsidiaries of General Reinsurance Corporation.

She joined Gen Re as an excess casualty underwriter and progressed through a variety of leadership and operational roles during her 35-year career with the company.

Ms Roberts was appointed chairwoman of the compensation committee and is a member of the nominating and corporate governance committee.

Mr Brown served as senior vice-president and chief financial officer of RLI Corp, a publicly traded specialty insurer serving diverse niche property, casualty and surety markets.

Mr Brown currently serves on the board of First Midwest Bancorp Inc, where he is a member of the audit and enterprise risk committees.