BMO Capital Starts James River Group Holdings (JRVR) at Outperform

BMO Capital initiates coverage on James River Group Holdings (NASDAQ: JRVR) with a Outperform rating and a price target of $25.00.

Analyst Charles Sebaski comments, "James River is a specialty insurance company mainly focused on small, specialty, liability coverages, which we see as one of the most defendable segments of the P&C market. The company core is its E&S division, which should write just under $200 million of net premiums in 2014 at an 83% combined ratio. This business, with an average premium of under $17,000 in difficult to place coverages, should allow the company to maintain pricing in excess of the loss cost trend, a feat we believe will be challenging in many other classes of business. Overall, we see James River as properly positioned to continue its growth story in spite of a reduction in its third- party casualty reinsurance business. We also believe that once the legacy issues are fully behind it, James River should once again be on the list of take-out candidates for larger insurers looking to diversify their product lineup either into specialty classes or just away from the deteriorating property market."

For an analyst ratings summary and ratings history on James River Group Holdings click here. For more ratings news on James River Group Holdings click here.

Shares of James River Group Holdings closed at $22.82 yesterday.

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