7 Best Nano Cap Stocks To Invest In

3. James River Group Holdings, Ltd. (NASDAQ:JRVR)

Market Cap: $244.76 Million

Number of Hedge Funds: 19

James River Group Holdings, Ltd. (NASDAQ:JRVR) is an insurance company based in Bermuda that primarily focuses on specialty insurance. The company owns and manages several specialized insurance companies, through which it engages in underwriting and investment returns. They specialize in providing tailored insurance solutions for unique risks that typical insurance companies might not cover adequately.

The second quarter of 2024 came in with significant highlights for this $244.76 million nano-cap company. James River Group Holdings, Ltd. (NASDAQ:JRVR) net income for the quarter improved 24.7% year-over-year to reach $11.85 million. The growth was driven by the casualty underwriting division which improved 5.3% when compared to the same quarter last year. Moreover, the general casualty division also witnessed a 14.6% growth.

The E&S Segment experienced an average renewal rate increase of 9.1%, indicating that existing clients are paying more to renew their policies. Due to increasing competition and more available insurance capacity, the company has become more selective in its excess property insurance offerings, resulting in a 27.9% decline in gross written premiums for this line. However, despite the decline, the overall gross written premium for the E&S segment increased by 2.3%, supported by stable growth rates in most casualty divisions and strong submission flows.

The second quarter results indicated that James River Group Holdings, Ltd. (NASDAQ:JRVR) is strategically adjusting as per the market conditions while aiming to maintain profitability across its insurance segments.

Bernzott Capital Advisors US Small Cap Value Fund stated the following regarding James River Group Holdings, Ltd. (NASDAQ:JRVR) in its fourth quarter 2023 investor letter:

“Our position in James River Group Holdings, Ltd. (NASDAQ:JRVR) also hurt performance as the stock declined by over 40% following their earnings release, which highlighted adverse reserve developments. They also announced a dilutive sale of their casualty reinsurance segment. We exited the position.”