Best’s News & Research Service - September 30, 2021 08:28 AM (EDT)
AM Best Revises Outlooks to Stable for James River Group Holdings, Ltd. and Subsidiaries
- September 30, 2021 08:28 AM (EDT)
Oldwick //BestWire// - AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) 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 revised the outlook to stable from negative and affirmed the Long-Term ICR of “bbb-” (Good) of JRG Holdings. 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.
The outlooks have been revised to stable from negative and the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) 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.
The revision of the outlooks to stable reflect the additional protection afforded to the group’s balance sheet strength following the implementation of a loss portfolio transfer (LPT) effective July 1, 2021, on the commercial auto lines, which have had recurring adverse reserve development in recent quarters. AM Best feels that the protection provided by the LPT reduces uncertainty as the contract significantly mitigates the potential for ongoing adverse reserve development while providing stability in reserves and consistent risk-adjusted capital composition.
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 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.