James River Group Holdings, Inc.

Thanks, Frank. Good morning, everyone. Given Frank's extensive comments on the current quarter as well as the past 12 months, I'm going to focus my comments on a few discrete parts of the quarter as well as some other key financial items. Last night, we reported a net loss of $23.9 million for the quarter and had a $26.8 million operating loss. This loss was impacted by the aforementioned commercial auto LPT that we executed at the end of September, bringing economic finality to substantially all of our commercial auto runoff portfolio. We also had two other unique impacts on the quarter, which I will further explain in a moment. Frank has already commented on the adverse development in the casualty reinsurance segment. So, to sum the unique impacts of the quarter in ENS, first, As we mentioned in conjunction with our 8K filing and the signing of the commercial auto LPT, there is the impact of the transaction of which the majority is related to claims expense. Second, there is the $5 million net impact of the IDA CAD losses. We have a small, geographically diversified excess property portfolio that the company has written for many years, which is heavily reinsured. Our reinsurance incepts at $5 million of losses and provides for $40 million of limit. We also benefit from a substantial surplus share treaty. For that reason, the $5 million of net losses should not grow. Last, this quarter was unique in that we had $8.1 million of reinstatement premiums for casualty treaties in different years caused by losses we experienced in those accident years. Reinstatement premiums are a function of excessive loss reinsurance, which is what these treaties are. Generally, our casualty treaties work such that the first reinstatement premium is due on first loss of the treaty, but thereafter, we have a few free reinstatement premiums to provide coverage should further losses arise. As these treaties protect losses in prior accident years, the $8.1 million is a straight reduction to net written and net earned premium in the current quarter. Absent these three impacts, as Frank mentioned, the combined ratio for the ENS segment would have been 83.4%, which is improved by about two points as compared to the 85.2% in the comparable quarter last year. The ENS ex-CAT accident year loss ratio adjusted for the casualty-related reinstatement premiums and the commercial auto LPT would have been 64.6% consistent with our performance year-to-date and in excess of our historical fully developed loss ratios for prior years in core E&S. Absent the casualty-related reinstatement premiums, which again served to reduce net written and net earned premium in E&S by $8.1 million, Net written and net earned premium in ENS would have grown 25 and 22% respectively over the prior year quarter, a meaningful acceleration from the growth rate of last quarter. Moving on to our group-wide expenses, our group expense ratio was 24.8% this quarter as compared to 24.8% in the third quarter of last year, and 26% last quarter. We had favorable adjustments to bad debt expense and certain accruals for taxes, licenses, and fees within the specialty admitted segment this quarter, which served to lower the segment expense ratio by about five points. This was partially offset by a higher expense ratio in casualty re due to lower sliding scale commission reductions and less premium earned. It also benefited meaningfully from the scale we continue to build in our ENS and specialty admitted segments. Finally, on to investments. Net investment income for the third quarter was $15.3 million, an increase of 2% from the third quarter of last year and about 7% from the prior quarter. The increase is due to increased returns from both our renewable energy portfolio and some other private investments. We ended the quarter well within our target operating and leverage ratios of 1.2 times and 29% respectively. So with that, I will hand it back to Frank.

Thank you, Sarah. Operator, please open the lines for questions from our listeners.

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