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For More Informaton:
Ken Mitchell
919-882-3500
kmitchell@stonewoodins.com
A.M. Best Affirms A- (Excellent) Rating of Stonewood Insurance Company
June 21, 2005, Raleigh, NC – On June 16, 2005, A.M. Best Company affirmed the financial strength
rating of A- (Excellent) of Stonewood Insurance Company, which was licensed in November 2003
to provide workers’ compensation insurance for the residential construction industry
in North Carolina. The company is an insurance subsidiary of James River Group, Inc.,
which is headquartered in Chapel Hill, North Carolina.
In its published Rating Rationale, A.M. Best states, “The rating reflects the company’s
solid performance in its initial year of operation, the strong track record of its
management team in producing profitable results, adequate capitalization and a sound
business plan designed to capitalize on opportunities to provide workers' compensation
insurance within the same residential construction market in North Carolina where management
has already exhibited its expertise.” A.M. Best expands on the management team’s prior
experience and expertise by saying, “While at Builders Mutual, the executive team had
successfully produced operating returns and profitability that far exceeded the industry
and its peers”.
A.M. Best also indicated “Furthermore, the rating considers management’s intention to prudently
manage capital in accordance with levels previously discussed with A.M.Best, its
importance to the James River Group, Inc. and the benefits to be gained from
James River Group Inc.’s pending Initial Public Offering (IPO).” A.M. Best noted, “Proceeds
from this prospective offering are to be infused into the company and its affiliate,
James River Insurance Company, to support near-term operating plans of each operating entity.
These rating factors are offset by the significant challenges and uncertainties associated
with any newly formed, start-up company, including the successful execution of business plans,
lack of scale and management’s ability to compete and grow its business profitably.
The company enjoys the prospect of additional financial support by James River Group, Inc.
In the first quarter of 2005, James River Group, Inc. contributed $3 million of additional
capital to Stonewood." On June 16, 2005, A.M. Best also affirmed the financial strength
rating of A- (Excellent) of James River Insurance Company.
“We are pleased that A.M. Best’s analysis of our first year operating results led them to
affirm Stonewood Insurance Company with an ‘Excellent’ rating as well as our affiliate,
James River Insurance Company,” said Ken Mitchell, Stonewood President and Chief Executive Officer.
About Stonewood Insurance Company
Licensed in November 2003, Stonewood provides workers’ compensation insurance for homebuilders,
including general contractors and related artisan contractors, operating within the state of
North Carolina. Stonewood is led by C. Kenneth Mitchell, who has more than 20 years experience
in the workers’ compensation and the homebuilding markets in North Carolina. Based in Raleigh, North Carolina,
Stonewood Insurance Company is a wholly owned subsidiary of James River Group, Inc.
James River Group, Inc. owns and operates property and casualty insurance companies that
underwrite specialized insurance for business. The Group is headquartered in Chapel Hill, NC.
James River Insurance Company, an excess and surplus lines company headquartered in Richmond, Virginia,
is approved to write business in 48 states plus Washington, D.C.For more
information on Stonewood, please contact Ken Mitchell, 919-882-3500,
kmitchell@stonewoodins.com.
For additional information about A.M. Best and the current rating of Stonewood Insurance Company, visit www.ambest.com
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