With a growth potential of 35.86%, James River Group Holdings, Inc. (NASDAQ:JRVR) is among the 10 Best Insurance Stocks to Buy After First Quarter Earnings.
On May 19, UBS downgraded James River Group Holdings, Inc. (NASDAQ:JRVR) to Neutral from Buy and reduced its price target to $4.75 from $8.00. The firm cited a higher cost of equity capital stemming from higher risks related to adverse reserve development. UBS also noted that intensifying competition within the small and mid-market surplus and surplus lines sector could make it difficult for the company to achieve significant growth, prompting the analyst to take a more cautious stance on the stock.
Previously on May 5, Citizens downgraded James River Group Holdings, Inc. (NASDAQ:JRVR) to Market Perform from Outperform without assigning a price target. The firm pointed to disappointing first-quarter results, noting that the company used approximately two-thirds of its excess and remaining surplus adverse development coverage limit, leaving only $7.5 million available for potential future adverse developments. According to the analyst, the reduced protection weakens a key risk mitigation mechanism that had previously given investors greater confidence regarding reserve-related exposures.
Founded in 2002 and headquartered in Pembroke, Bermuda, James River Group Holdings, Inc. (NASDAQ:JRVR) is an insurance holding company that owns and operates a group of specialty property and casualty insurance and reinsurance companies, operating primarily in the U.S. surplus and surplus lines (E&S) market.
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