James River completes JRG Re sale to Fleming

Following a brief back-and-forth between purchaser and vendor, James River Group has introduced the completion of the sale of its subsidiary, JRG Reinsurance Firm (JRG Re), to Fleming Intermediate Holdings for the beforehand agreed upon phrases of $277 million.

The transaction was finalized as per the Inventory Buy Settlement executed on November 8, 2023.

James River CEO Frank D’Orazio launched a press release highlighting the deal’s closure and its plans in transferring ahead.

“We’re happy to have efficiently accomplished our sale of JRG Re to Fleming in accordance with the Inventory Buy Settlement that the events negotiated collectively and executed on November 8, 2023. James River will proceed to focus its assets on its core US insurance coverage companies the place we have now significant scale, together with our E&S and fronting companies,” he stated.

The completion follows a authorized dispute by which James River secured a preliminary injunction from the New York County Supreme Court docket, Industrial Division. The court docket then mandated Fleming, a portfolio firm of Altamont Capital Companions, to proceed with the acquisition by no later than April 16, 2024.

Fleming contested the injunction earlier this month, arguing the dispute arose from what it claimed have been misleading practices by James River post-agreement, not from a change of coronary heart concerning the acquisition.

“This isn’t a case of purchaser’s regret. It’s a bait and swap,” Fleming acknowledged in its authorized filings.

The corporate additionally expressed its continued willingness to buy JRG Re, contingent on James River addressing sure alleged contractual breaches associated to reserves and liquidity. It’s unclear how Fleming reached its present settlement with James River over the JRG Re sale.

The transaction has been the supply of hassle for the James River guardian firm, which has confronted downgrades in its rankings. The corporate additionally famous a web loss realized in its This autumn 2023 monetary outcomes, which revealed a notable $80.4 million loss associated to the sale.

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