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<\/div>\nJames River Group Holdings Ltd. announced that Fleming Intermediate Holdings has completed the $277 million acquisition of James River\u2019s casualty reinsurance business \u2013 after a period of legal wrangling that had threatened to derail the deal.<\/p>\n
The transaction, which was first announced in November 2023<\/a>, hit a roadblock when Fleming resisted completion, indicating that James River had misrepresented the level of its casualty reserving for JRG Reinsurance Co.<\/p>\n On March 11, James River filed a lawsuit<\/a> to force Fleming to honor its contractual obligation to complete the acquisition in accordance with the terms of original stock purchase agreement (SPA).<\/p>\n Fleming responded on March 26 with its own legal action, asking the court to deny James River\u2019s preliminary injunction. The legal filing said that James River had \u201csandbagged Fleming with disclosures about unusually low reserving.\u201d<\/p>\n \u201cThis is not a case of buyer\u2019s remorse. It is a bait and switch,\u201d the Fleming court filing said.<\/p>\n In a press statement issued on March 28, Fleming\u2019s CEO Eric Haller described James River\u2019s lawsuit as \u201cmeritless.\u201d<\/p>\n However, the court did not agree with Fleming. On April 8, the Supreme Court, New York County, Commercial Division, ordered Fleming to complete its acquisition of JRG Re on or prior to April 16, 2024. Although a Fleming media representative at the time told Insurance Journal<\/em> the company planned to appeal, the deal ultimately was completed on April 16.<\/p>\n \u201cWe are pleased to have successfully completed our sale of JRG Re to Fleming in accordance with the Stock Purchase Agreement that the parties negotiated together and executed on Nov. 8, 2023,\u201d commented Frank D\u2019Orazio, James River\u2019s chief executive officer, in a media statement.<\/p>\n Fleming did not have a comment about the completion of its acquisition.<\/p>\n \u201cJames River will continue to focus its resources on its core U.S. insurance businesses where we have meaningful scale, including our E&S and fronting businesses,\u201d D\u2019Orazio added.<\/p>\n Bermuda-based James River Group Holdings owns and operates a group of specialty insurance and reinsurance companies in three specialty property\/casualty insurance and reinsurance segments: excess and surplus lines, specialty admitted insurance and casualty reinsurance.<\/p>\n Fleming is a portfolio company of private equity sponsor Altamont Capital Partners, which is based in Palo Alto, California.<\/p>\n Topics<\/span> Mergers & Acquisitions<\/a> Reinsurance<\/a> Casualty<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n