AM Best Affirms Credit Ratings of James River Group Holdings, Ltd. and Its Subsidiaries

Rhea-AI Summary

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of 'a-' (Excellent) for James River Group Holdings, Ltd. (NASDAQ: JRVR) and its subsidiaries, with a stable outlook. The ratings reflect the group's very strong balance sheet strength and adequate operating performance, although recent results have been mixed across segments. The company has enhanced its balance sheet through successful capital raises and loss portfolio transfer transactions. The Long-Term ICR of 'bbb-' (Good) for JRG Holdings has also been affirmed.

Positive

• Affirmed Financial Strength Rating of A- (Excellent).
• Long-Term ICR of 'a-' (Excellent) reflects strong financial health.
• Stable outlook indicates confidence in future performance.
• Successful capital raises in 2021 and 2022 improved financial flexibility.
• Balance sheet strengthened by loss portfolio transfer transactions addressing adverse reserve developments.

Negative

• Operating performance has been unbalanced since 2021, with unfavorable results in casualty reinsurance segment.

OLDWICK, N.J.--(BUSINESS WIRE)-- 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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005831/en/

Gordon McLean

Senior Financial Analyst

+1 908 439 2200, ext. 5487

gordon.mclean@ambest.com

Greg William

Senior Director

+1 908 439 2200, ext. 5815

greg.williams@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Al Slavin

Communications Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

Source: AM Best

FAQ

What is the Financial Strength Rating of James River Group Holdings, Ltd. (JRVR)?

The Financial Strength Rating of James River Group Holdings, Ltd. is A- (Excellent).

What does AM Best's stable outlook mean for JRVR?

The stable outlook signifies AM Best's confidence in the financial stability and performance of JRVR.

What factors contributed to the rating affirmation for JRVR?

Factors include very strong balance sheet strength, adequate operating performance, and successful capital raises.

What impact did the loss portfolio transfer transactions have on JRVR?

These transactions strengthened JRVR's balance sheet by addressing adverse reserve development in specific segments.

What are the recent performance challenges faced by JRVR?

JRVR has experienced unbalanced operating performance, particularly in its casualty reinsurance segment.