AM Best

A.M. Best Affirms Credit Ratings of James River Group Holdings Ltd and Subsidiaries; Assigns Credit Ratings to Carolina Re Ltd


Robert Raber
Associate Director
+1 908 439 2200, ext. 5696

Greg Williams
Senior Director
+1 908 439 2200, ext. 5815
Christopher Sharkey
Manager, Public Relations
(908) 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
(908) 439 2200, ext. 5644


OLDWICK - AUGUST 14, 2018 03:05 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of the rated operating subsidiaries of James River Group Holdings, Ltd. (JRG Holdings) [NASDAQ: JRVR]. In addition, A.M. Best has affirmed the Long-Term ICR of “bbb” of JRG Holdings. JRG Holdings is domiciled in Pembroke, Bermuda, while its subsidiaries are based in Pembroke, Richmond, VA, and Raleigh, NC. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the subsidiaries.) Concurrently, A.M. Best has assigned an FSR of A (Excellent) and a Long-Term ICR of “a” to Carolina Re Ltd. (Carolina Re) (Pembroke, BE). The outlook assigned to these ratings is stable.

The ratings of JRG Holdings’ operating subsidiaries reflect their balance sheet strength, which A.M. Best categorizes as very strong, as well as their adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating affirmations reflect the organization’s very strong level of risk-adjusted capitalization as measured by the Best’s Capital Adequacy Ratio, which is supported by the annual generation of earnings. Operating performance is supported by consistent performance across underwriting and investment results. JRG Holdings has a solid position in the excess and surplus lines market as a primary writer and assuming company. A.M. Best acknowledges the group’s formalized and well-developed ERM program, noting the clearly defined risk appetite and tolerance levels.

The stable outlooks take into consideration the expectation of ongoing supportive risk-adjusted capital, overall operating profitability, and sustained business profile competencies. The ratings could be positively impacted by demonstrated improvement in underwriting results across segments or continued advancement in balance sheet strength. The ratings could be negatively impacted by less than optimal underwriting results in any one segment, significantly adverse reserve development, or a sudden decline in risk-adjusted capital.

The ratings assigned to Carolina Re reflect its key role as a member of JRG Holdings. Factors supporting the relationship are common ultimate ownership and management, and strategic alignment across the organization. In addition, Carolina Re provides explicit financial support to affiliated companies through a quota-share reinsurance treaty.

The FSR of A (Excellent) and the Long-Term ICRs of “a” of the following subsidiaries of James River Group Holdings, Ltd. have been affirmed with a stable outlook:

  • JRG Reinsurance Company Ltd.

  • James River Insurance Company

  • James River Casualty Company

  • Falls Lake National Insurance Company

  • Stonewood Insurance Company

  • Falls Lake General Insurance Company

  • Falls Lake Fire and Casualty Company

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.

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