The board of directors of Bermudian-based James River Group Holdings Ltd has begun an exploration of strategic alternatives for the company, including its potential sale.

The company said on Friday that the options also include a “merger or other strategic transaction”.

Ollie Sherman, the chairman of the board of directors, said: “Over the past three years, James River’s executive leadership team and board of directors have taken decisive actions to focus resources on core businesses where we have meaningful scale, de-risk the organisation, reduce volatility and meaningfully strengthen the balance sheet.

“The board now believes it is appropriate to explore a range of potential strategic alternatives to maximise shareholder value.”

The company said there can be no assurance that this process will result in the company pursuing a particular transaction or other strategic outcome.

James River said it has not set a timetable for completion of this process, and it does not intend to disclose further developments unless and until it determines that further disclosure is appropriate or necessary.

The company said it has retained Citi and Ardea Partners as financial advisers.

The news comes in the same week that James River Group announced that it has entered into a definitive agreement to sell JRG Reinsurance Company Ltd, its third-party casualty reinsurance business, to Fleming Intermediate Holdings.

The total estimated transaction value is $277 million, inclusive of a $139 million pre-closing dividend and a $138 million cash payment from Fleming at close.