UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): | March 5, 2018 |
JAMES RIVER GROUP HOLDINGS, LTD.
(Exact name of registrant as specified in its charter)
| Bermuda | 001-36777 | 98-0585280 |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
| Wellesley House, 2nd Floor, 90 Pitts Bay Road, Pembroke Bermuda | HM 08 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: +1-441-278-4580
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
| ¨ | Written Communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
| Item 7.01 | Regulation FD Disclosure. |
James River Group Holdings, Ltd. (the “Company”) is furnishing a copy of its fourth quarter 2017 investor presentation as Exhibit 99.1 to this Current Report on Form 8-K. The Company intends to use the investor presentation from time to time in meetings with investors and analysts. The presentation will also be posted on the investor relations portion of the Company's website.
The information provided pursuant to this Item 7.01, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” with the Securities and Exchange Commission or incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filings.
| Item 9.01 | Financial Statements and Exhibits. | ||
| (d) | Exhibits | ||
The following Exhibit is furnished as a part of this Form 8-K:
| Exhibit No. | Description | |
| 99.1 | Investor Presentation |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| JAMES RIVER GROUP HOLDINGS, LTD. | ||
| Dated: March 5, 2018 | /s/ Sarah C. Doran | |
| Name: Sarah C. Doran | ||
| Title: Chief Financial Officer | ||
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Investor Presentation |
Exhibit 99.1
Compounding Value through an Unrelenting Focus on Underwriting Profit Fourth Quarter 2017 Investor Presentation
Disclosure Forward - Looking Statements This press release contains forward - looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 . In some cases, such forward - looking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate, guidance or similar words . Forward - looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward - looking statements . Although it is not possible to identify all of these risks and factors, they include, among others, the following : the inherent uncertainty of estimating reserves and the possibility that incurred losses may be greater than our loss and loss adjustment expense reserves ; inaccurate estimates and judgments in our risk management which may expose us to greater risks than intended ; the potential loss of key members of our management team or key employees and our ability to attract and retain personnel ; adverse economic factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both ; a decline in our financial strength rating resulting in a reduction of new or renewal business ; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships ; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain such relationships ; a failure of any of the loss limitations or exclusions we employ ; losses from catastrophic events which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events ; potential effects on our business of emerging claim and coverage issues ; exposure to credit risk, interest rate risk and other market risk in our investment portfolio ; changes in laws or government regulation, including tax or insurance laws and regulations ; our ability to obtain reinsurance coverage at reasonable prices or on terms that adequately protect us ; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims or insurance companies with whom we have a fronting arrangement failing to pay us for claims ; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents ; our ability to manage our growth effectively ; inadequacy of premiums we charge to compensate us for our losses incurred ; the recently enacted Public Law No . 115 - 97 , informally titled the Tax Cuts and Jobs Act, may have a significant effect on us and our shareholders ; in the event we do not qualify for the insurance company exception to the passive foreign investment company (“PFIC”) rules and are therefore considered a PFIC, there could be material adverse tax consequences to an investor that is subject to U . S . federal income taxation ; the Company or any of its foreign subsidiaries becoming subject to U . S . federal income taxation ; failure to maintain effective internal controls in accordance with Sarbanes - Oxley Act of 2002 , as amended ; and changes in our financial condition, regulations or other factors that may restrict our subsidiaries’ ability to pay us dividends . Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward - looking statements, is contained in our filings with the SEC, including our Annual Report on Form 10 - K filed with the U . S . Securities and Exchange Commission on March 1 , 2018 . These forward - looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward - looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise . Non - GAAP Financial Measures This presentation contains non - GAAP financial measures as defined by Regulation G of the rules of the SEC . These non - GAAP measures, such as underwriting profit, adjusted net operating income and tangible equity are not in accordance with, nor are they a substitute for, GAAP measures . We believe these non - GAAP measures provide users of our financial information useful insight into our performance . Investors should consider non - GAAP measures in addition to, and not as a substitute for, or superior to, the comparable GAAP measures . Please refer to pages 29 & 30 of this presentation for a reconciliation of the non - GAAP financial measures to the equivalent GAAP equivalents . 2
Overview Slide 4 Franchise Slide 11 Operating Segments Slide 15 Financial Highlights Slide 18 Appendix Slide 27 Table of Contents 3
Overview
Strategy and Overview We seek to deliver consistent, top tier returns on tangible equity and achieve sector leading value creation We are active managers of capital, seeking to generate top tier returns and return excess capital, while being able to respond quickly to match capital to evolving risk opportunities We are underwriters first, and target low volatility risks with our ‘A’ rated balance sheet We are focused on profitably growing our niche portfolio of new economy, excess and surplus, and workers’ compensation risks We continue to meaningfully build fee income, and increase the proportion of earnings represented by fees We seek meaningful investment returns, largely generated from niche strategies representing a small portion of our portfolio We mitigate volatility via portfolio construction, low retentions and little property exposure – 1 : 1000 PML represents $ 10 million 5
Our current valuation supports meaningful upside 6 P/TBV vs Operating ROTE 1 Price/Next Twelve Month Consensus Earnings Source: SNL Financial, company filings. Market data as of 3/1/18 1 P/TBV data as of March 1, 2018; Operating ROTE data is trailing twelve months as of December 31, 2017 31.3 28.2 25.1 19.5 18.7 17.6 15.4 12.7 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x MKL RLI KNSL NAVG WRB AMSF AGII JRVR Median = 19.1% JRVR AMSF AGII KNSL MKL NAVG RLI WRB R² = 0.5402 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x 3.50x 4.00x 4.50x 5.00x 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Price to TBV Operating ROTE
We have a history of profitable growth and disciplined underwriting 7 Net Written Premiums & Operating ROATE Operating Income $58.9 $58.4 $61.1 $71.3 $47.4 $- $10 $20 $30 $40 $50 $60 $70 $80 2013 2014 2015 2016 2017 $325 $450 $471 $558 $767 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2013 2014 2015 2016 2017 OROATE $MM ROATE $MM - $1.8 $5.0 $14.2 $28.3 Gross Fee Income ($MM) • Strong, consistent underwriting, profitable growth • Efficient operator (24.3% expense ratio for 2017) • Increasing E&S contribution • Growing fee income Source: Company filings. 1 Operating Return on Average Tangible Equity for the full financial year 1
Growth and Benefits of Scale 8 1 GAAP expense ratio; all corporate/other expenses adjusted for inclusion in the expense ratio. 2 Peer Group: Amerisafe Inc., Argo Group International Holdings, Ltd., Kinsale Capital Group Inc., Markel Corp., Navigators Group Inc., RLI Corp. and W. R. Berkley Corp. Source: SNL Financial, company filings Our material expense advantage positions us well for profitability Expense advantage of 10.2% 1 35.2 33.6 33.6 31.5 24.4 34.3 34.1 34.4 34.6 34.6 2013 2014 2015 2016 2017 James River Peer Average 2
Leading Value Creation We have delivered best in class shareholder returns since becoming a public company 9 1. Shareholder return represents the dividend - adjusted share price appreciation from James River’s initial public offering date of December 12, 2014 until March 1, 2018. 2. KNSL’s total shareholder return is calculated since its July 27, 2016 initial public offering. 3. KNSL data is 2 Year Avg Operating ROATE. Source: SNL Financial, company filings Total Shareholder Return Since JRVR IPO 1 3 Year Avg Operating ROATE 2 3 0% 50% 100% 150% 200% 250% KNSL JRVR AMSF MKL RLI NAVG WRB AGII Median = 58.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% AMSF KNSL RLI JRVR WRB MKL NAVG AGII
Capital Management Maximizes Shareholder Value 10 Capital Management History • $370 million of capital returned since 2008 • $164 million of capital returned to shareholders since December 2014 IPO, or 35.2% of tangible book value at that time • Last twelve month d ividend yield of 5.3% 1 $388 $442 $482 $529 $559 $479 $466 $460 $472 $475 $388 $442 $506 $553 $584 $615 $672 $713 $792 $845 $350 $450 $550 $650 $750 $850 $950 $1,050 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Tangible Equity Plus Cumulative Dividends and Share Repurchases ($ in MM) Tangible Equity Cumulative Capital Returned 1. Calculated as dividends paid over last 4 quarters of $1.70 divided by March 1, 2018 closing share price of $32.38. Source: Company filings
Franchise
Franchise Overview 12 • We are a specialty, low volatility underwriting company with a proven history of generating consistent profits • Our area of focus is small and medium sized commercial account Excess & Surplus Lines casualty business with $1 million per occurrence limits and $20,000 average account premiums • We expect to deliver 12% or better operating returns on tangible equity for the 2018 fiscal year and a combined ratio of 94% to 97% • 2016 result: 14.6% OROATE; 2017 result: 9.7% OROATE Negligible Primary Property Exposure 2017 Group - wide NWP: $767mm Excess & Surplus Lines 81% Specialty Admitted 19% 2017 Group - wide Net Written Premiums by Type 2017 Group - wide Net Written Premiums by Coverage Property 4% Casualty 96%
13 Our Specialty Market History Adam Abram and a group of investors purchase Front Royal, Inc., for $3 million • James River Group, Inc. is formed with $58 million of capital and a single insurance subsidiary, James River Insurance Company, an E&S underwriter • Stonewood Insurance Company is formed in Raleigh, NC to write highly inspected workers’ compensation risks in 2004 James River successfully completes an IPO at 1.70x tangible book value The Group begins building out infrastructure for fronting and programs business in its Specialty Admitted segment Front Royal purchases Colony Insurance Company, an E&S underwriter (and Rockwood Casualty Insurance Company, a PA - based workers’ compensation writer, in 1996) On pace to write more than $200 million of specialty premiums in the calendar year, Adam Abram sells Front Royal to Argo Group for 1.70x tangible book value • D. E. Shaw leads the purchase of James River for 2.60x tangible book value and re - domiciles the group to Bermuda • JRG Re, a Bermuda Class 3B reinsurer, is capitalized with $250 million the following year James River surpasses $1 billion in invested assets Received upgraded A.M. Best Rating of A (Excellent) • MARKET CAP IN EXCESS OF $1 BILLION • GROSS WRITTEN PREMIUMS OF $1.1 BILLION • 9.7% OROATE • 99.2% COMBINED RATIO James River successfully completes an IPO at $21 per share (1.35x tangible book value) YE 2017
14 E&S Focus | Profitable, niche specialty underwriting Profitability of E&S vs. Total P&C Industry E&S Gaining Share of P&C Insurance Market E&S segment GWP grew by 20% during 2016 and 43% during 2017. • Our business is heavily concentrated in E&S Casualty (81% of 2017 premium). • E&S is the most profitable part of the property/casualty market and has been gaining market share. 102.3 96.1 Total P&C Total US E&S Avg. Combined Ratios 1999 – 2016 Difference of 6 percentage points Total P&C GWP: $308.7bn E&S GWP: $10.6bn Total P&C GWP: $612.9bn E&S GWP: $42.4bn 1999 P&C Market 2016 P&C Market Source: A.M. Best data and research, SNL. Admitted Market 96.6% E&S 3.4% Admitted Market 93.5% E&S 6.5%
Operating Segments
16 Segment Review E&S Segment Specialty Admitted Segment Casualty Reinsurance Segment • E&S business underwritten by specialists in 13 divisions organized by product or industry segment • 81.9% average combined ratio from 2013 - 2017 • Focus on small and medium - sized commercial accounts; 97% casualty and no primary property • Distributes through 120+ broker groups • Fee income of $10.1M in 2016 and $17.0M in 2017, an increase of 69% PROFITABLE SPECIALTY UNDERWRITING • Specialty admitted insurance coverages in the US, including a growing fee income business • Segment comprises: - Core book of workers’ compensation in select Southeastern and Eastern U.S. states - Fee - based fronting business • Gross f ee income of $4.2M in 2016 and $11.3M for 2017, an increase of 171% A FOCUS ON FEE INCOME • Third - party proportional and working - layer excess casualty business focused on small and medium U.S. specialty lines • The two largest relationships, representing 51% of the segment’s gross written premium, related to program business • At December 31, 2017, 99% of third party treaties were written as quota share arrangements and 67% contained loss mitigation features (example: sliding scale commissions or deficit carryforwards) LOW VOLATILITY UNDERWRITING
17 Attractive Growth in Gross Written Premium Growth driven by new economy risks, core E&S growth, and expansion of fronting business E&S Segment PROFITABLE SPECIALTY UNDERWRITING Specialty Admitted Segment A FOCUS ON FEE INCOME Casualty Reinsurance Segment LOW VOLATILITY UNDERWRITING ($ in Millions) $253 $309 $371 $530 2014 2015 2016 2017 $59 $91 $182 $316 2014 2015 2016 2017 1 $207 $172 $184 2014 2015 2016 2017 2 2 2 2 1 Gross Written Premium. 2 Net Written Premium. 1 1 1 $235
Financial Highlights
Broad risk appetite permits us to ‘pick our spots’ 19 Each Excess & Surplus lines policy is underwritten by in - house specialists with deep technical expertise across 13 underwriting divisions ($ in millions) Lead U/W Years of Year Year Year Industry Ended Ended Ended Division Experience Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Description Commercial Auto 30 $248.0 $110.1 $73.8 Hired / non-owned auto, ride share Manufacturers & Contractors (MC) 34 85.7 83.3 78.3 Products liability & completed operations exposure Excess Casualty 34 51.2 43.5 32.5 Following form excess on risks similar to GC and MC General Casualty (GC) 30 38.1 36.9 31.0 Premises ops (e.g., apartments, offices & restaurants) Energy 46 29.7 29.7 30.6 Oil & gas contractors, mining, alternative energy & utilities Allied Health 24 19.2 14.4 13.5 Long-term care, outplacement facilities & social services Excess Property 32 14.4 14.1 12.5 CAT-exposed excess property > 1/100 year return period Life Sciences 34 13.0 11.1 8.9 Nutrition products, medical devices and human clinical trials Small Business 30 11.3 9.1 6.9 Small accounts similar to GC and MC Environmental 46 7.9 5.3 4.4 Environmental contractors and consultants Professional Liability 24 6.3 8.4 10.0 E&O for non-medical professionals (lawyers, architects, engineers) Sports & Entertainment 30 3.0 2.2 2.7 Amusement parks, campgrounds, arenas Medical Professional 24 2.3 2.7 3.6 Non-standard physicians and dentists Total $530.1 $370.8 $308.7 Gross Written Premiums
Demonstrated underwriting discipline 20 Source: Company filings, A.M. Best data and research We have proven our willingness to expand and contract when market conditions dictate, and have a strong track record of profitable underwriting E&S Segment Loss Ratio vs. E&S Industry E&S Segment – GWP Growth vs. E&S Industry James River GWP Growth E&S Industry GWP Growth Source: A.M. Best report 2007 - 2016 Average James River 54.9 E&S Industry 65.2 (3.8) (23.1) (25.0) (15.9) 12.8 21.1 21.3 31.3 22.2 20.1 (3.5) (6.2) (4.1) (3.8) (1.8) 11.8 8.4 6.7 2.5 2.8 (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 GWP Growth (%) JRVR E&S Market 56.1 61.4 62.6 54.9 48.5 52.6 40.4 55.2 54.5 62.6 52.4 68.3 65.4 71.0 75.9 80.4 62.5 56.7 57.0 62.0 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Loss Ratio (%) James River Calendar Year E&S Industry
21 A Growing Fee Business Fee income example Insured Companies Capacity Providers Falls Lake National Insurance Company Retains $19M (or 10%) of premium/risk and receives $6M of fees Assumes $171M (or 90%) of premium/risk $190M GWP Claims Payments $171M GWP $6M Fronting Fees Claims Payments The effect of fee income in underwriting Example: Expected GWP: Retention: Fee: Result: Program renewed 7/1/17 $190M annually 10% quota share 3.35% of $171M of premium $6 million in fees, 30% benefit
Prudent Reserving Philosophy • Over $120 million of net favorable reserve development since 2008 • As of December 31, 2017, 65% of net reserves were attributable to IBNR • Full internal reserve reviews performed quarterly, external reserve reviews performed during Q3 and Q4 22 Commentary
Updated Structure: Carolina Re A. Internal Quota Share (“IQS”) - > Carolina Re Prior IQS As of 12/31/2017: Runoff of IQS liabilities 2017 and prior (remaining at JRGRe) Future IQS Proforma 1/1/2018: Go forward IQS liabilities only B. Stop - Loss Cover Stop - loss protection written by JRG Re to Carolina Re, Ltd . James River Group Holdings, Ltd. Incorporated 6/1/2007 Bermuda JRG Reinsurance Company, Ltd. Incorporated 11/8/2007 Bermuda James River Group Holdings UK Limited Incorporated 11/4/2015 United Kingdom James River Group, Inc. Incorporated 9/3/2002 Delaware Carolina Re, Ltd. Incorporated January 2018 Bermuda James River Insurance Company Incorporated 6/30/1987 Ohio (Acq’d 6/30/2003) Falls Lake National Insurance Company Incorporated 2/6/1974 Ohio James River Casualty Company Incorporated 4/19/2007 Virginia Stonewood Insurance Company Incorporated 10/16/2003 North Carolina Falls Lake General Insurance Company Incorporated 9/5/1989 Ohio Falls Lake Fire and Casualty Company Incorporated 12/11/2013 California 23 Ⓐ Reflects 70 % IQS of pool from U . S . statutory companies .
3.4 3.8 4.0 0.0 1.0 2.0 3.0 4.0 5.0 2015 2016 2017 24 Traditional investment approach augmented by higher yielding alternatives Total Cash and Investments: $ 1,611M Duration: Investment Portfolio (as of December 31, 2017) Net Investment Yield 63% 5% 15% 2% 5% 10% Fixed Maturity Securities Equity Securities Bank Loans Short-Term Investments Other Invested Assets Cash • Our investment portfolio consists of investment grade fixed maturity securities, selectively supplemented by non - traditional investments • Examples of non - traditional investments we have made include: • Participations in floating rate syndicated bank loans, generally senior secured loans with an average credit rating 1 of “B”; • Equity and debt investments in renewable energy project limited partnerships; • Investment in a limited partnership that invests in the equity tranches of collateralized loan obligations (CLOs) • Weighted average credit rating¹: “A” • Negligible exposure to equity markets or correlated equity market exposure 1. Per S&P, or an equivalent rating from another nationally recognized rating agency; credit ratings of fixed maturity securities, bank loans and redeemable preferred stocks as of December 31, 2017. 3.5 yrs 3.6 yrs 3.5 yrs Commentary
Composition of Operating Return on Average Tangible Equity 25 1 1
15.7% 14.8% 13.3% 12.8% 8.4% 6.9% 5.3% 5.2% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 3 - Yr Average Operating ROATE 3 - Yr Average Operating ROATE Standard Deviation 26 Consistent Top Tier Returns Extremely attractive risk reward proposition AMSF NAVG RLI WRB JRVR Source: SNL Financial Data as of December 31, 2017 KNSL MKL AGII
Appendix
James River Group Key Metrics 28 Exchange/Ticker NASDAQ / “JRVR” Initial Public Offering $21.00 (December 12, 2014) Current Share Price $32.38 (Closing Price March 1, 2018) Market Capitalization $963 million (March 1, 2018 market close) LTM Dividend / Yield $1.70 per share declared 5.3% yield 1 Gross Written Premium $1,082 million in 2017 Total Capitalization $897 million as of December 31, 2017 AM Best Rating ‘A’ (Excellent) Analyst Coverage and Rating 2 Dowling (Neutral) – Aaron Woomer FBR (Neutral) – Randy Binner JMP (Outperform) – Matthew Carletti KBW (Market Perform) – Meyer Shields SunTrust (Buy) – Mark Hughes UBS (Neutral) – Brian Meredith 1. Based on Q1 2017, Q2 2017, Q3 2017 and Q4 2017 dividends and closing price of $32.38 on March 1, 2018. 2. As of March 1, 2018.
Non - GAAP Measures Reconciliation 29
Non - GAAP Measures Reconciliation 30 Note: In the Tangible Equity Table, 2008 to 2013 shares outstanding are retroactively adjusted for 50/1 stock split. Addition all y, all amounts are as of December 31 for each period indicated. Non-GAAP Reconciliation ($mm) Adj. Net Operating Income 2014 2015 2016 2017 Income as reported 44.7$ 53.5$ 74.5$ 43.6$ Net realized inv. (gains) losses (0.9) 4.1 (5.2) 1.4 Initial public offering costs 13.2 - - - Dividend withholding taxes - 2.5 - 1.0 Other expenses 1.0 0.6 1.1 0.6 Interest expense 0.4 0.4 0.9 0.8 Adjusted net operating income 58.4$ 61.1$ 71.3$ 47.3$ Tangible Equity 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Shareholders’ equity 677.8$ 724.7$ 714.2$ 762.4$ 784.0$ 701.5$ 687.9$ 681.0$ 693.2$ 694.7$ Goodwill & intangible assets (289.7) (282.4) (232.7) (233.8) (225.0) (222.6) (222.0) (221.4) (220.8) (220.2) Tangible equity 388.0$ 442.3$ 481.5$ 528.5$ 559.0$ 478.9$ 466.0$ 459.7$ 472.5$ 474.5$ Shares Outstanding (000's) 35,718 35,718 35,718 35,718 36,030 28,540 28,540 28,942 29,258 29,697 Tangible Equity per Share 10.86$ 12.38$ 13.48$ 14.80$ 15.52$ 16.78$ 16.33$ 15.88$ 16.15$ 15.98$
Compounding Value through an Unrelenting Focus on Underwriting Profit InvestorRelations@jrgh.net