Wolf Popper LLP Announces Investigation on Behalf of Purchasers of James River Group Holdings, Ltd. (JRVR) Common Stock

New York, New York--(Newsfile Corp. - May 27, 2021) - Wolf Popper LLP is investigating potential securities fraud claims on behalf of purchasers of James River Group Holdings, Ltd. (NASDAQ: JRVR) common stock.

James River offers insurance in three different segments - Excess and Surplus Lines (E&S), Specialty Admitted Insurance and Casualty Reinsurance. Raiser LLC, an affiliate of Uber, had been one of James River's largest customers in the past but on October 8, 2019, James River announced it was going to cancel all of Raiser's policies as of December 31, 2019. On that news, James River's stock price fell $11.06 per share to $37.88, or down 22.6%. On February 17, 2021, James River announced preliminary fourth quarter 2020 results and said it was increasing its fourth quarter 2020 reserves for the commercial auto and casualty reinsurance businesses by $85MM to $90MM. On the subsequent February 26, 2021 earnings call, James River's CEO assured investors that "I'm comfortable with where we ended the quarter in particular with the overall group reserve position. Given indications of our external reserve study, we are definitely better off today than we were a quarter ago" and "So I'm comfortable with the actions we've taken".

Unbeknownst to investors, and as subsequently revealed, during the first quarter of 2021, James River continued to experience higher than expected reported losses on the cancelled Raiser insurance contracts. After the market closed on May 5, 2021, James River announced its first quarter 2021 results and acknowledged that it had to add another $170MM to its commercial auto reserves. In the earnings press release, James River's CEO said "During the quarter, we continued to experience higher than expected reported losses in our large commercial auto account in runoff. In response, we meaningfully changed our actuarial methodology, resulting in a material strengthening of reserves." Furthermore, James River announced it was going to raise $175MM in equity at $31.00 per share which was significantly below James River's May 5, 2021 stock price. On this news, James River's stock price collapsed $12.27 per share to $34.23, or a drop of 26.4%.

For more information, James River investors with trading losses of over $50,000 should contact Robert Finkel at (212) 451-9620 or at rfinkel@wolfpopper.com.

Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper's reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm's website at www.wolfpopper.com.

Attorney Advertising: Prior Results Do Not Guarantee A Similar Outcome.

Wolf Popper LLP

Robert Finkel
845 Third Avenue
New York, NY 10022
Tel.: (212) 451-9620
Email: rfinkel@wolfpopper.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/85468