1. Despite a 40% stock drop and negative earnings, the author believes James River Group is undervalued and reiterates a buy rating with a $9 price target. 2. Recent losses are attributed to a one-time $52.2 million excess consideration payment, and management is taking steps to de-risk and capitalize on E&S market trends. 3. Major industry players like Gallatin Point and Enstar Group are investing significantly in James River, indicating confidence in its long-term potential.