James River Group announces leadership transition in E&S segment

PEMBROKE, Bermuda - James River Group Holdings, Ltd. (NASDAQ: JRVR), a Bermuda-based specialty insurance company, today announced a change in leadership for its Excess and Surplus Lines (E&S) segment. Todd Sutherland will take over as President of the E&S segment, succeeding Richard Schmitzer, who will retire at the end of July after leading the segment since 2010.

Schmitzer, who has been with the company for over a decade, will step down from his role as CEO of the E&S segment on July 31, 2025, and will retire from the industry in the fourth quarter of 2025 after a career spanning more than 45 years. Frank D’Orazio, CEO of James River, praised Schmitzer for his contributions to building a resilient E&S business and wished him well for his retirement.

Sutherland, who joined James River in 2023, will report directly to D’Orazio and will remain based in Richmond, Virginia. He brings over 30 years of industry experience, including leadership roles at AXA XL and Allied World Assurance Company, as well as underwriting management positions at Axis Capital and American International Group. His appointment is part of a strategic plan to continue the segment’s profitable growth.

The company also announced that the title of CEO for the E&S segment will be retired, with the role being referred to as segment President going forward.

This leadership transition is part of James River’s strategic priorities and plans, aiming to ensure continuity and success in the future. The company, which operates in two specialty property-casualty insurance segments, has its regulated insurance subsidiaries rated A- (Excellent) by A.M. Best Company. For deeper insights into James River’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

The information in this article is based on a press release statement from James River Group Holdings, Ltd.

In other recent news, James River Group Holdings disclosed a $483,625 adjustment to a previous transaction’s closing purchase price following a resolved dispute over the sale of JRG Reinsurance Company Ltd. This adjustment will be reflected as an additional loss in the company’s Q1 2025 financial results. Shareholders have raised concerns about the Board of Directors’ decision to award substantial cash incentives to management despite a significant decline in share price and book value over the past year. The Fortunoff family, notable shareholders, criticized the bonuses and suggested alternative uses for the funds, such as increasing dividends or investing in growth.

Additionally, Keefe, Bruyette & Woods adjusted their price target for James River to $5.00, down from $6.00, while maintaining a Market Perform rating. This change follows a reassessment of the company’s earnings projections, citing factors like a slowdown in premium growth and rising expense ratios. Truist Securities also revised their price target to $5.00, maintaining a Hold rating, due to uncertainties around the company’s reserves and future earnings potential. Furthermore, James River increased executive payouts for 2024 despite not meeting performance targets, attributing the decision to strategic activities impacting financial metrics. The Board excluded certain costs from the calculations to determine the adjusted payouts for executives.

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