Market Overview

A.M. Best Affirms Credit Ratings of James River Group Holdings Ltd. and Subsidiaries; Assigns Credit Ratings to Carolina Re Ltd.


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 the rated operating subsidiaries of James River Group
Holdings, Ltd.
(JRG Holdings) (NASDAQ:JRVR). In addition, A.M. 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.) Concurrently, A.M. Best has assigned an FSR of A
(Excellent) and a Long-Term ICR of "a" to Carolina Re Ltd.
(Carolina Re) (Pembroke, BE). The outlook assigned to these ratings is

The ratings of JRG Holdings' operating subsidiaries reflect their
balance sheet strength, which A.M. Best categorizes as very strong, as
well as their adequate operating performance, neutral business profile
and appropriate enterprise risk management.

The rating affirmations reflect the organization's very strong level of
risk-adjusted capitalization as measured by the Best's Capital Adequacy
Ratio, which is supported by the annual generation of earnings.
Operating performance is supported by consistent performance across
underwriting and investment results. JRG Holdings has a solid position
in the excess and surplus lines market as a primary writer and assuming
company. A.M. 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 the expectation of ongoing
supportive risk-adjusted capital, overall operating profitability, and
sustained business profile competencies. The ratings could be positively
impacted by demonstrated improvement in underwriting results across
segments or continued advancement in balance sheet strength. The ratings
could be negatively impacted by less than optimal underwriting results
in any one segment, significantly adverse reserve development, or a
sudden decline in risk-adjusted capital.

The ratings assigned to Carolina Re reflect its key role as a member of
JRG Holdings. Factors supporting the relationship are common ultimate
ownership and management, and strategic alignment across the
organization. In addition, Carolina Re provides explicit financial
support to affiliated companies through a quota-share reinsurance treaty.

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 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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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