D’Orazio named new James River Group CEO

Former Allied World executive Frank D’Orazio has been named CEO of James River Group Holdings, with the specialty (re)insurer’s founder J Adam Abram retiring from the position but continuing as non-executive chairman.

The changes are effective 2 November with D’Orazio also named to the board of directors.

The company announced the news as it unveiled a Q3 adjusted operating profit of $17.4mn, compared with an operating loss of $22.2mn in the prior-year period. At $0.56 a share the operating profit was ahead of Wall Street forecasts of $0.50 a share.

The results included 28 percent growth in its core E&S top line and a 12.8 percent increase in E&S renewal pricing.

The Insurer revealed in January this year that D’Orazio had stepped down as corporate COO and chief of staff at Fairfax Financial-owned Allied World.

Commenting on the new CEO, Abram said: “Frank is a highly experienced and successful senior executive and profitable business builder with many years of experience in the areas where James River has concentrated.”

“Throughout his 30 year career in the insurance industry, Frank has proven to be an excellent leader who has developed a deep understanding of underwriting, finance, enterprise risk management and strategic thinking by leading significant initiatives in each of these areas,” he continued.

D’Orazio added: “I am excited to join James River. The company has a very strong franchise, great leadership and talented employees in each of its segments. I am looking forward to working with the board and with Adam to continue to create value for our shareholders.”

The newly appointed CEO had previously held a range of senior underwriting management roles in his 16 years at Allied World, including president of underwriting and global risk, and spent 11 years in Bermuda in roles such as president of international insurance.

He played a key role in the build-out of the company’s international insurance platform. The executive began his year as a casualty underwriter at Chubb and also served in underwriting manager roles at Munich Re America.

Abram had retaken the reins as CEO of the Bermuda-based company from Robert Myron last summer when the executive stepped down due to ill health after contracting Lyme disease, although he remains at the company as president and COO.

Abram was the founding executive chairman, president and CEO of James River Group from its inception in 2002 through 2007 and has rotated between the roles of non-executive and executive chairman, CEO and various leadership roles at the company’s subsidiaries since.

Operating companies in the group include US E&S specialty insurer James River Insurance Company, fronting carrier Falls Lake Insurance, and Bermudian reinsurer JRG Reinsurance Group.

The leadership transition comes after James River has spent the last year steadying the ship following the cancellation of Uber, its biggest account, as it moved the business into run-off.

Today’s earnings come after a strong performance in Q2 this year as it comfortably beat earnings forecasts and reported strong E&S renewal pricing and an overall improvement in its underwriting profitability.