James River Group Holdings, Ltd. (NASDAQ:JRVR) Q3 2023 Earnings Call Transcript

Meyer Shields: Okay, perfect. And Frank, I think, in your comments you mentioned pulling back in Commercial Auto within E&S. I guess, ignoring the Uber stuff that’s gone, can you give us a sense of how big the current Commercial Auto reserves are?

Frank D’Orazio: I don’t have that in front of me right now. I mean the portfolio itself is not that significant, but I know that’s not your question. I mean it’s probably about a $30 million, $35 million portfolio. I don’t have the reserve numbers in front of me. You are talking about non-rideshare portfolio, specifically?

Meyer Shields: Yes, exactly. Yes.

Frank D’Orazio: Sarah, I don’t have it.

Sarah Doran: I don’t have that in front of me.

Frank D’Orazio: Yes, I’m sorry, we’ll have to follow-up with you on that.

Meyer Shields : Okay, prefect. Thank you so much.

Frank D’Orazio: Thanks Meyer.

Operator: Thank you. [Operator Instructions] The next question comes from the line of Casey Alexander from Compass Point. Your line is open.

Casey Alexander: Yes, two questions. One, the sale of the Casualty Re business is also moving a lot of people. How should we expect the expense ratio to develop once the sale is complete?

Sarah Doran: Sure, Casey. It’s actually six people, six people in Bermuda. So it’s a fairly small team.

Casey Alexander: Okay.

Sarah Doran: I wouldn’t think there – there is going to be an impact on the expense ratio more so because of the commission structure in the reinsurance business historically, but as you know that business is running off. So, I wouldn’t expect much of any impact on the expense ratio going forward.

Casey Alexander: Okay. Then one other question, the $7 million development on the Casualty Re LPT with $38 million remaining, the way that’s been developing over the last several quarters argues that you may actually be taking losses on that book again by 2025. Would that be your expectation at this point in time?

Sarah Doran: Well, Casey, we did announce the transaction to sell the balance sheet. We would hope to sell – as per our press release, we’d hope to close that transaction in the next quarter. So by that construct, we would not have any exposure to that balance sheet, to that business, starting in the second quarter of 2024 if we’re able to close it like along that schedule.

Casey Alexander: Okay. Thank you.

Operator: Thank you. There are no further questions at this time. I’d now like to turn the call over back to our CEO, Frank D’Orazio. Sir?

Frank D’Orazio: Thank you. I want to thank everyone for their time today and for the questions we received on the call. We certainly look forward to speaking with you all in 2024 to discuss our fourth quarter and full year results. Enjoy the rest of your day.

Operator: This concludes today’s conference call. You may now disconnect.