AM Best

AUGUST 18, 2017 10:59 AM (EDT)

A.M. Best Affirms Credit Ratings of JRG Reinsurance Company, Ltd. and Its Affiliates

 Robert Raber
Senior Financial Analyst
+1 908 439 2200, ext. 5696

Greg Williams
Senior Director
+1 908 439 2200, ext. 5815

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


OLDWICK - AUGUST 18, 2017 10:59 AM (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 JRG Reinsurance Company, Ltd. (JRG Re) (Hamilton, Bermuda) and its U.S.–based affiliates. Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb” of James River Group Holdings, Ltd. (JRG Holdings) [NASDAQ: JRVR]. JRG Holdings and JRG Re are domiciled in Pembroke, Bermuda, while the U.S. companies are based in Richmond, VA and Raleigh, NC. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the U.S.-based affiliates.)

The rating affirmations reflect JRG Re’s solid business profile, strategy execution under its experienced management team and strong consolidated capitalization. This includes earnings from the company’s position as a significant quota-share reinsurance participant for its U.S.-based affiliates and as a provider of third-party reinsurance for U.S.-based specialty insurers. These positive rating factors are offset partially by the challenges presented by a competitive casualty reinsurance market.

JRG Re has recorded favorable consolidated combined ratios in support of the diversified premium writings. These results reflect the impact of the company’s underwriting discipline. The excess and surplus lines segment reinsurance portfolio produced by the U.S.-based affiliates is focused on short- to intermediate-tail casualty business. In terms of third-party business, the company selectively utilizes existing relationships along with market dynamics to generate a substantial flow of casualty reinsurance opportunities.

The ratings could be impacted positively by the combined insurance operations continuing to demonstrate improvement in underwriting results across its segments, or continued advancement in balance sheet strength. The ratings could be impacted negatively by less-than-optimal underwriting results in any one segment (e.g., workers’ compensation) or balance sheet strength that does not support the risk profile.

The U.S. affiliates’ ratings are correlated directly to the ratings of JRG Re and receive full rating enhancement due to the explicit and implicit support provided by JRG Re.

The FSR of A (Excellent) and the Long-Term ICRs of “a” of JRG Reinsurance Company, Ltd. and its following U.S.-based affiliates have been affirmed with a stable outlook:

  • 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.

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