James River’s Bermuda-based subsidiary dissolved
Carolina Re, a subsidiary of troubled Bermuda-based re/insurer James River Holdings, has been dissolved.
The Bermuda-based reinsurer had commuted the outstanding obligations ceded under the intercompany quota-share reinsurance agreements back to James River Group Holdings' US-based insurance subsidiaries effective January 1, 2022.
"Carolina Re concluded all operations and was dissolved in December 2023. Accordingly, AM Best has withdrawn these ratings as Carolina Re, Ltd. no longer exists," AM Best said.
"AM Best has withdrawn the Financial Strength Rating of A- and the Long-Term Issuer Credit Rating of “a-” of Carolina Re (Bermuda). At the time of the withdrawal, the outlook of the Credit Ratings was negative.
"The withdrawal of the ratings previously assigned to Carolina Re, Ltd reflects the dissolution of the company."
James River and its operating subsidiaries' ratings were downgraded last year after the company identified a material weakness in its internal control over financial reporting.
It announced then it would sell subsidiary JRG Re and would explore strategic business alternatives for the organisation.
JRG Holdings recently announced that it had entered into a definitive agreement to sell JRG Re to Fleming Intermediate Holdings LLC at .75x the book value of JRG Re at closing.
AM Best added its procedure was for a final rating opinion to be produced in conjunction with a rating withdrawal.
"However, a final rating opinion could not be produced for Carolina Re, Ltd. due to the absence of an insurance license and insurance liabilities," the company said
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