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AM Best Comments on Credit Ratings of James River Group Holdings, Ltd. and Its Subsidiaries Following Legacy Reinsurance Agreement with State National Insurance Company, Inc.

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AM Best has confirmed that the credit ratings of James River Group Holdings (NASDAQ: JRVR) and its subsidiaries remain unchanged following a reinsurance agreement with State National Insurance Company. Effective January 1, 2024, this agreement includes a combined loss portfolio transfer and adverse development cover, providing $160 million in reinsurance coverage for JRG Holdings' excess and surplus lines segment for accident years 2010-2023. The agreement excludes the company's former large commercial auto book. JRG Holdings will continue managing claims, with a 15% co-participation in the reinsurance structure.

Positive
  • Credit ratings remain unchanged post-reinsurance agreement.
  • State National provides $160 million in adverse development reinsurance coverage.
  • Agreement covers accident years 2010-2023 for excess and surplus lines segment.
Negative
  • 15% co-participation required from JRG Holdings.
  • Excludes coverage for former large commercial auto book.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has commented that the Credit Ratings (ratings) of James River Group Holdings, Ltd. (JRG Holdings) [NASDAQ: JRVR] (Bermuda) and its subsidiaries remain unchanged following the announcement that its two principal operating subsidiaries have entered into a combined loss portfolio transfer and adverse development cover reinsurance agreement with State National Insurance Company, Inc. (State National). The reinsurance agreement was executed on July 2, 2024, and is effective Jan. 1, 2024.

Under the terms of the agreement, State National will provide $160.0 million of adverse development reinsurance coverage for JRG Holdings’ excess and surplus lines segment casualty portfolio for accident years 2010-2023 (both years inclusive), subject to a 15% co-participation by the company. The reinsurance structure has no coverage sublimits, but does exclude exposure to the JRG Holdings’ former large commercial auto book, with the vast majority of that exposure already subject to a previously executed loss portfolio transfer. JRG Holdings will retain claims management.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Gordon McLean

Senior Financial Analyst


+1 908 882 2109

gordon.mclean@ambest.com

Edin Imsirovic

Director

+1 908 882 1903

edin.imsirovic@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

FAQ

What is the recent reinsurance agreement involving James River Group Holdings (JRVR)?

James River Group Holdings has entered into a reinsurance agreement with State National Insurance Company, effective January 1, 2024. It includes a loss portfolio transfer and adverse development cover, providing $160 million in coverage for accident years 2010-2023.

How does the reinsurance agreement affect the credit ratings of James River Group Holdings (JRVR)?

AM Best confirmed that the credit ratings of James River Group Holdings and its subsidiaries remain unchanged following the reinsurance agreement.

What coverage does State National provide under the new reinsurance agreement with James River Group Holdings?

State National provides $160 million in adverse development reinsurance coverage for JRG Holdings’ excess and surplus lines segment for accident years 2010-2023.

Does the reinsurance agreement include James River Group Holdings' former large commercial auto book?

No, the agreement excludes coverage for the company's former large commercial auto book, which is already subject to a previous loss portfolio transfer.

What is the co-participation requirement for James River Group Holdings in the new reinsurance agreement?

James River Group Holdings is required to have a 15% co-participation in the reinsurance structure.

James River Group Holdings, Ltd.

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