AM 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, AM 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.)
The ratings of JRG Holdings’ operating subsidiaries reflect their balance sheet strength, which AM Best categorizes as very strong, as well as their adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating affirmations and outlooks reflect the history of maintaining a very strong level of risk-adjusted capitalization in line with exposures. This is supported by the organization’s consistency in prudent allocation of annual earnings. Favorable operating performance is cultivated by consistent underwriting results complemented by reliable investment performance. The enterprise has a solid position in the excess and surplus lines market, along with established diversification in non-correlated insurance markets. AM 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 AM Best’s expectation of ongoing supportive risk-adjusted capital, overall operating profitability, and sustained business profile competencies. The ratings could be impacted positively by demonstrated improvement in underwriting results across segments or continued advancement in balance sheet strength. The ratings could be impacted negatively by less-than-optimal underwriting results in any one segment, significantly adverse reserve development, or a sudden decline in risk-adjusted capital.
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 Fire and Casualty Company
- 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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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