James River Group Holdings (JRVR) PT Lowered to $13 at UBS

UBS analyst Brian Meredith lowered the price target on James River Group Holdings (NASDAQ: JRVR) to $13.00 (from $15.00) while maintaining a Buy rating.

The analyst commented: "Following JRVR's announcement of a reinsurance agreement with State National Insurance Company ("SNIC"), we are revising our FY24/25 EPS estimates lower to $1.51/$1.73 from $1.65/$2.00, driven by a smaller investment portfolio/reduced investment income. With the agreement, executed on July 2, 2024, $310m of cash will be removed from JRVR’s balance sheet and the relevant E&S reserves will be offset by a reinsurance recoverable. JRVR will also recognize a $52.2m reduction in 3Q24's pretax income for excess consideration paid over reserves ceded in connection with the reinsurance agreement (we are currently treating the 3Q24 charge as non-operating and therefore it is not in our 2024 EPS estimate). The company's board of directors continues to explore "strategic alternatives."'

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