Significant Milestone in E&S Premium Growth: Surpassing $300 Million in a Quarter
James River achieved a milestone by surpassing $300 million in E&S gross written premiums in a single quarter, a notable achievement after making strategic underwriting changes over the past three years.
This milestone reflects the company's focus on smaller, profitable accounts and a disciplined rate environment, contributing to the segment's growth and profitability.
Adjusted EBITDA rose 32.1% to $114 million, with an improved margin of 15%, up 139 basis points.
Adjusted EPS increased by 40.9% to $0.31 from $0.22, demonstrating strong operating leverage.
Capital Markets revenues surged 37.9%, reflecting a 135% increase in total debt volumes compared to 38% industry growth, and investment sales volumes rose 26% versus 11% industry growth.
Cash and cash equivalents ended at $195.8 million with net leverage of 1.4x; cash generated by the business was $133.9 million.
Introduced adjusted free cash flow metric showing $228 million for the 12 months ended June 2025, a 121.4% year-over-year improvement.
Leasing revenues increased 13.8%, led by double-digit growth in retail volumes and improving office activity in key gateway markets.
Management services, servicing and other revenues grew 13.6%, driven by 30% growth in Valuation and Advisory and improvements in servicing and asset management.
Newmark delivered strong revenue growth of 19.9% in Q2 2025, with total revenues reaching $759.1 million compared to $633.4 million a year earlier.
The company repurchased approximately 10.8 million shares for $125.5 million at $11.58 per share, reducing fully diluted weighted average share count by 1.2% to 252.6 million.
Book value per share increased 16% year-to-date, inclusive of dividends, on an 82% combined ratio and double-digit net investment income growth.
Casualty and Surety segments posted 7% premium growth each, with Casualty combined ratio at 96.5% and Surety at 87.9%.
Net earnings on a GAAP basis were $1.34 per share versus $0.89 in Q2 2024, influenced by $44 million unrealized equity gains this quarter compared to $4 million last year.
Operating cash flow for Q2 was $175 million, up $33 million from last year, with a 2.9% total return for the quarter and strong first half performance.
Property segment premiums declined 10%, influenced by rate decreases in E&S Property, but Marine and Hawaii Homeowners products grew.
Second quarter operating earnings were $0.84 per share, supported by solid underwriting performance and a 16% increase in investment income.
The total combined ratio was 84.5%, up from 81.5% last year, reflecting modest increases in loss and expense ratios but still within expectations.
Adjusted book value per share increased 14% year-over-year to $144.57, excluding unrealized investment gains and losses.
All three segments showed strong net earned premiums and excellent profitability: Business Insurance combined ratio improved to 88.3%, Bond and Specialty to 87.8%, and Personal Insurance to 79.3%.
Capital returned to shareholders totaled $809 million, including $557 million in share repurchases and $252 million in dividends.
Net earned premiums grew 7% to $10.9 billion with an underlying combined ratio improving 3 points to 84.7%.
Net investment income after tax was $774 million, a 6% increase from prior year, driven by a growing fixed income portfolio with total invested assets surpassing $100 billion.
Operating cash flow was $2.3 billion for the quarter, marking the 21st consecutive quarter with over $1 billion in operating cash flow, totaling over $40 billion in that period.
The Travelers Companies, Inc. reported exceptional Q2 2025 results with core income of $1.5 billion or $6.51 per diluted share and a core return on equity of 18.8% for the quarter, 17.1% on a trailing twelve-month basis.
Dafinchi