Law firm Kirby McInerney LLP is investigating potential claims against James River Group Holdings (James River). The investigation concerns whether James River and a certain of its officers have violated the federal securities laws or engaged in other unlawful business practices.
James River owns and operates a group of specialty insurance and reinsurance companies. The company includes excess and surplus lines, specialty admitted insurance and casualty reinsurance segments.
On 8 November, James River disclosed that the company identified an error in its accounting for reinstatement premium on a specialty casualty reinsurance treaty in its excess and surplus lines segment from the company’s previous financial statement.
As a result, the company previously overstated its net written and earned premiums of US$9.4 million and US$12.3 million, respectively, for the second quarter of 2023.
Additionally, the company previously overstated its net income of US$7.8 million and US$10.4 million for the second quarter of 2023, due to its accounting error.
On this news, the price of James River shares declined by $0.99 per share, or approximately 7 per cent, from US$14.14 per share to close at $13.15 on 8 November.
