Shares of the insurance company James River Group Holdings (NASDAQ: JRVR) traded more than 31% lower approaching noon EDT today, after the company announced earnings results and commenced a public offering.
James River reported a net loss in the first quarter of more than $103 million, a drop of 178% from the first quarter of 2020. Total revenue of nearly $183 million jumped significantly from the first quarter of last year, but missed on analysts' estimates for revenue.
"During the quarter, we continued to experience higher than expected reported losses in our large commercial auto account in runoff," CEO Frank D'Orazio said in a statement. " In response, we meaningfully changed our actuarial methodology, resulting in a material strengthening of reserves. We believe this overhang has been eliminated, and that we are now fully able to focus on our prospective business and what continues to be a historically strong E&S [excess and surplus lines] marketplace."
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Why Shares of James River Group Holdings Are Plummeting Today