OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has commented that the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of James River Group Holdings, Ltd. (JRG Holdings) (NASDAQ:JRVR) and the Financial Strength Rating of A (Excellent) and the Long-Term ICR of “a” of JRG Reinsurance Company, Ltd. (JRG Re) (Pembroke, Bermuda) and its U.S.–based affiliates remain unchanged following the announcement of the organization’s actions regarding their internal reinsurance structure. The outlook of these Credit Ratings (ratings) remains stable.
On Feb. 22, 2018, JRG Holdings’ management team announced that effective Jan. 1, 2018, the company will restructure its internal quota share to be ceded to a newly formed related counterparty, Carolina Re Ltd. Previously, JRG Re was the recipient of the cession.
A.M. Best’s comment takes into consideration that these steps are in response to the introduction of the Tax Cuts and Jobs Act of 2017. The comment also takes into consideration that while JRG Re will no longer act as the internal reinsurer, it will continue to write third-party casualty reinsurance.
A.M. Best will continue to monitor the progress of the modifications of the internal reinsurance programs, and evaluate any developments and implications for impact on the ratings.
The U.S. affiliates’ include:
- 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
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