AM Best Revises Outlooks to Stable for James River Group Holdings, Ltd. and Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--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.

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