James River Turns to AI After a Volatile Year
With its E&S combined ratio down to 88.3% in Q3 2025, the insurer embeds Kalepa into submission intake and risk triage
James River Insurance Company has selected Kalepa to deploy an AI underwriting platform across its excess and surplus (E&S) business, according to Kalepa’s press release announcing the engagement. The company said the system will support submission intake, risk triage, and portfolio management within its E&S segment.
Todd Sutherland, president of James River, said, “This investment directly supports our focus on disciplined underwriting and our commitment to providing our employees with state-of-the-art technology to deliver shareholder value.” He added that Kalepa will help underwriters make “faster, more consistent decisions with better insight, strengthening risk selection and portfolio performance”.
The announcement follows a shift in underwriting results. In its third quarter 2025 earnings release, James River reported a 94% combined ratio, compared with 135.5% in the third quarter of 2024. The E&S segment reported an 88.3% combined ratio for Q3 2025. A combined ratio below 100% indicates underwriting profitability.
In its second quarter 2025 results, the company reported combined ratios in the low 90s in its E&S segment and cited rate increases across underwriting divisions. Coverage of its fourth quarter 2024 results noted a quarterly loss driven in part by adverse development and reinsurance impacts. Recent quarterly filings show improved underwriting performance compared with that period.
Restoring Margin Stability in E&S
James River has stated in investor materials that its objective is to generate attractive returns while limiting underwriting and investment volatility. In specialty property and casualty insurance, the combined ratio is a primary measure of underwriting performance.
The excess and surplus market insures risks that fall outside standard admitted lines. Policies are customized, and underwriting decisions depend on risk evaluation at submission. James River’s 2025 earnings commentary referenced pricing increases and selective underwriting in its E&S segment.
Analysis has described progress in restoring profitability in the E&S segment and emphasized continued focus on underwriting margins and portfolio quality. Specialty insurers are commonly evaluated by investors on underwriting profitability and reserve stability.
James River’s regulated insurance subsidiaries hold an “A-” (Excellent) financial strength rating from AM Best, as noted in the Kalepa press release. Ratings agencies assess underwriting performance, capitalization, and risk management practices in determining financial strength ratings.
Where AI Enters the Process
Kalepa’s platform automates submission intake, triages risks, embeds rating logic, and centralizes risk-critical information from multiple data sources to produce a decision-ready quote, according to the company’s announcement. The system is described as supporting the full underwriting lifecycle.
Valdean Langenburg, group chief information officer at James River, said, “Unleashing AI enabled technology and fostering a culture of continuous improvement is a winning formula and what we will be known for. Kalepa’s integrated platform, deep understanding of insurance underwriting and proven ability to drive measurable results were key in our selection process”.
Other insurers have announced AI deployments focused on underwriting workflows. Swiss Re has outlined AI applications aimed at automating underwriting case reviews and reducing manual processing time. This month, AI-focused carrier MGT partnered with Amwins to modernize E&S underwriting workflows with emphasis on underwriting rigor.
James River’s 2025 quarterly results show improved combined ratios and underwriting income in its E&S segment compared with the prior year. The AI deployment is being implemented within a segment that has reported stronger underwriting margins in recent quarters.