AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of the rated operating subsidiaries of James River Group Holdings, Ltd. (JRG Holdings) [NASDAQ: JRVR]. In addition, AM Best has affirmed the Long-Term ICR of “bbb-” (Good) of JRG Holdings. The outlook of these Credit Ratings (ratings) is stable. JRG Holdings is domiciled in Pembroke, Bermuda, while its subsidiaries are based in Pembroke, Richmond, VA, and Raleigh, NC. (See below for a detailed listing of the subsidiaries.)
The ratings reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management (ERM).
The very strong balance sheet assessment considers the company’s risk-adjusted capital position and the financial flexibility provided by JRG Holdings, as demonstrated by successful capital raises in 2021 and 2022. Additionally, the group’s balance sheet has been strengthened by the execution of two loss portfolio transfer transactions over the past few years, which addressed the recurring adverse reserve development within the commercial auto lines and casualty reinsurance segment.
The group’s adequate operating performance assessment reflects its consistently positive overall net income across consolidated underwriting and investment results through 2020. Since 2021, overall operating performance has been unbalanced with favorable results in the surplus lines and specialty admitted segments offset by unfavorable results in the casualty reinsurance segment.
The adequate business profile assessment reflects the group’s solid market presence operating across three distinct market segments, excess and surplus, specialty admitted, and casualty reinsurance. The marginal ERM assessment reflects the need for the current ERM framework and risk evaluation to evolve proactively while demonstrating competencies necessary to mitigate any effect on the organization’s balance sheet strength, operating performance or business profile.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) with stable outlooks have been affirmed for the following subsidiaries of James River Group Holdings, Ltd.:
- James River Insurance Company
- James River Casualty Company
- Falls Lake National Insurance Company
- Stonewood Insurance Company
- Falls Lake Fire and Casualty Company
- JRG Reinsurance Company Ltd.
- Carolina Re, Ltd.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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