AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of the rated operating subsidiaries of Bermudian-based James River Group Holdings Ltd.

In addition, the agency has affirmed the long-term ICR of “bbb-” (Good) of JRG Holdings.

The outlook of these ratings is negative.

The ratings of JRG Holdings’ subsidiaries reflect their balance sheet strength, which AM Best assesses as very strong, as well as their adequate operating performance, neutral business profile and marginal enterprise risk management.

AM Best said: “These rating affirmations reflect JRG Holdings’ substantial efforts to protect its balance sheet, particularly through recent adverse development cover and loss portfolio transfer reinsurance transactions, as well as de-risking its operations via the sale of JRG Reinsurance Company Ltd.

“Additionally, the rating affirmations consider the group’s ongoing dedication to and investment in its ERM initiatives.

“The negative outlooks reflect the execution risks associated with the group’s projections as presented to AM Best. Failure to meet these projections may result in downward rating pressure.”

The FSR of A- (Excellent) and the long-term ICRs of “a-” (Excellent) have been affirmed with negative outlooks for the following subsidiaries of JRG Holdings: James River Insurance Company, James River Casualty Company, Falls Lake National Insurance Company, Stonewood Insurance Company, and Falls Lake Fire and Casualty Company.