James River Group Holdings has announced that the Supreme Court, New York County, Commercial Division has issued an order directing Fleming Intermediate Holdings to complete its acquisition of JRG Reinsurance Company (JRG Re) by April 16, 2024.
The sequence of events leading to this began on November 8, 2023, when James River announced its intention to sell JRG Re, its third-party casualty reinsurance business, to Fleming for an estimated $277 million.
However, in March 2024, James River filed a complaint with the court, citing Fleming’s refusal to finalise the previously negotiated transaction executed in November.
Eric Haller, CEO at Fleming, attributed this to James River “violating express prohibitions in the Agreement and failing to satisfy numerous closing conditions.”
Despite Fleming’s belief that this matter does not necessitate Court intervention and the remedy is straightforward, James River sought a preliminary injunction against Fleming, which was recently granted.
Frank D’Orazio, Chief Executive Officer at James River, expressed satisfaction with this outcome, stating, “We are pleased that the Court has granted James River’s request for a preliminary injunction, compelling Fleming to complete the acquisition of JRG Re in accordance with the Stock Purchase Agreement that the parties negotiated together and executed on November 8, 2023. We look forward to finalising the transaction.”
