James River Group Holdings, Inc.

Ladies and gentlemen, thank you for standing by. Hello, and welcome to James River Group's fourth quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. Thank you. I would now like to turn the conference over to Bob Zimardo, Senior Vice President of Investor Relations. Please go ahead, sir.

Thank you. Good morning, everybody, and welcome to James River Group's fourth quarter 2025 earnings conference call. A reminder that during the call, we'll be making forward-looking statements that are based on current beliefs, intentions, expectations, and assumptions that are subject to various risks and uncertainties, which may cause actual results to differ materially. Such risks and uncertainties are detailed in the cautionary language regarding forward-looking statements in yesterday's earnings release and the risk factors of our most recent Form 10-K and other reports and filings we have made with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements. In addition, during this presentation, we may reference non-GAAP financial measures. Please refer to our earnings press release for a reconciliation of these numbers to GAAP, a copy of which can be found on our website. Lastly, unless otherwise specified, for the reasons described in our earnings press release, all underwriting performance ratios referred to are for our continuing operations and business that is not subject to retroactive reinsurance accounting or lost portfolio transfers. Thank you, and I'll now turn the call over to Frank D'Orazio, Chief Executive Officer of James River Group.

Okay, thanks, Bob. Good morning, everyone, and thank you for joining our call today. We're speaking to you this morning, already two months into 2026, and keenly focused on executing our business plan and strategic objectives for the year. Today, I'm eager to discuss our fourth quarter and full year results with you, but just as importantly, I want to communicate our vision and share our optimism for 2026. Over the past few quarters, we have commented at length on the strides that the company has taken to focus on its wholesale-only E&S platform maintaining a strong position in the E&S marketplace while delivering shareholder value to our investors. I think it's fair to say that our future success will not be driven by a single factor, but rather the combination of several purposeful prioritized initiatives working in concert to drive our future results. At a high level, I believe three primary themes both underlie and empower our ability to perform in 2026 and beyond. First, I would point to our refined risk appetite and enhanced performance monitoring that we have invested in over the last few years, which has resulted in a focus on smaller and more profitable accounts across our casualty universe, while exiting or reengineering our stance on several classes that have proven to be unprofitable to James River over time. Secondly, we will benefit from the lasting operational efficiencies and expense management focus achieved through substantial cost-saving initiatives across the business during 2025, including our re-domicile to the United States. And finally, our continued engagement and deployment of our technology platform will support both of these efforts, which we expect will drive efficiencies and future profitable scale in our E&S business. Now as for execution, we've begun the year with a refreshed and reorganized E&S leadership team fully in place with a compelling game plan for the implementation of our strategic vision. With respect to our redefined appetite in E&S, that work has largely been done already. We will continue to target smaller accounts that tend to have higher renewal retention ratios that we believe have proven to be more profitable for James River over the company's 20-plus year history. In Q4, that same focus saw our average policy size decrease by 9.6% compared to the prior year quarter, and for the full year, the impact has been an average policy size decrease of 8.4%. While our approach tempered top-line growth in the quarter and much of 2025, The prioritized focus of the organization is on profitability, and admittedly, we were comfortable with that tradeoff. Submission flow across our casualty-focused business remains healthy, with 4% overall growth for 2025. With increased competition in a transitioning market, we are seeing a combination of both strong renewal submission activity, which we view as a sign of continued relevance with our distribution partners, and an increase in new submissions overall. Rate change remained positive at 9% for the year, consistent with 2024, and above loss trend, but clearly the level of rate increases have moderated, and there is dispersion by product line and division. Expense discipline remains an essential part of our story. In the fourth quarter, we executed on our re-domicile to the U.S., which simplifies our corporate structure, improves tax efficiency, and gives us greater flexibility as a U.S. specialty insurer. Through the re-domicile and other initiatives, we removed meaningful expenses permanently, lowering our full-year expense ratio over one point from 2024 and the quarterly expense ratio over two and a half points from the first quarter, all on fairly flat net earned premium. Combined with the underwriting improvements and appetite changes we've made over the last several years, our expense discipline has meaningfully improved the company's profitability and earnings profile. Perhaps even more importantly, Deliberately taking these measures has enhanced the organization's future ability to further leverage profitability and increase scale, utilizing the investments we've made in technology. Most notably, complete multi-year upgrade of our core operating systems to Guidewire that will be completed in 2026, and our recently announced partnership with Caleppa to roll out AI-enabled underwriting workbench capabilities throughout our E&S segments. The Guidewire implementation has afforded our platform a notable modernization uplift while allowing us to fully engage in the deployment of customized AI underwriting workbench technology, which we believe will enhance our underwriting efficiency in 2026 and beyond. We're using advanced data and decision support tools to enhance underwriting judgment, not replace it. These tools will help us assess risk more consistently, identify outliers earlier, and improve operating efficiency in an increasingly competitive environment. While speed in our market is a priority, the goal isn't speed for its own sake. It's about better decisions, made more efficiently, and having a positive impact on our day-to-day underwriting workflows and quote and bind rates. We are confident that continued technology adoption will undoubtedly be a tangible differentiator for us as we optimize our SME platform and our very special wholesale-only distribution model. Moving back to our performance, our 2025 results validate the balance sheet actions of the last few years, but more so positions us for continued success ahead. For the full year, we delivered a 96.6 percent combined ratio and generated a 15.3 percent annualized adjusted net operating return on tangible common equity, while growing tangible common book value per share by 34 percent. Those outcomes weren't driven by a favorable market surprise, Rather, they are a result of strong execution, deliberate choices around underwriting, expenses, and risk selection. Our fourth quarter E&S combined ratio of 86% reflects that progress and represents our strongest quarterly profitability in several years. When we look at production over the course of 2025, our gross written premium was down approximately 5% overall. That said, two of our five primary divisions are driving most of that reduction, with property down 27% year-over-year, and manufacturers and contractors, one of our larger divisions, down 11% year-over-year. Property remains a small component of our overall focus, and our construction production has been impacted by our decision to refine our underwriting guidelines relative to tracked housing exposure. Despite these dynamics, we did see growth in this year across several specialty departments, including Allied Health, Professional Liability, and management liability and maintain flat performance in our largest division, excess casualty. Overall, we remain encouraged by the profitability headroom we see across even more divisions in 2026. On recent accident years, we continue to be encouraged by a lower frequency of claims and improved loss emergence, but remain cautious in recognizing those trends as the book continues to mature. Importantly, we continue to operate with reserve protection in place which has allowed us to focus on the company's current performance profile rather than its legacy. In sum, while growth in certain lines has slowed, we believe that the trade-off has been the right one for James River. Profitability, balance sheet strength, and earnings durability were priorities in 2025, and our results reflect that focus. We enter 2026 with a leadership reorganization complete, a cleaner corporate structure, improving margins, a more disciplined portfolio, and a team that is empowered by technology and positioned well to execute. The North American ENS market is vast, and although the market has been transitioning for several quarters now, we see attractive opportunities for James River in 2026, particularly with our focus on smaller insureds and with the benefit of refreshed underwriting guidelines, new technology, and the emphasis we have placed on performance monitoring. In particular, we see an opportunity to scale our small business unit as well as several underwriting departments in our specialty division like Allied Health and Professional Liability, departments that have historically been very profitable for the company. We also expect to push rate in areas like excess casualty and parts of our general casualty portfolio in an effort to stay ahead of our view of loss trends, but have also identified areas across the E&S segment where we can relax rate and attempt to gain a bit of scale in those businesses. In short, we feel 2026 holds significant promise and opportunity for James River. With that, I'll turn it over to Sarah to walk through more details for the quarter and the year.