James River cancels auto insurance for Uber subsidiary Rasier over profit concerns
Bermuda-based James River Group Holdings has given notice of early cancellation of all insurance policies issued to Rasier - its largest customer and an affiliate of ridesharing company Uber Technologies.
James River said the policies will be cancelled as of December 31. The majority of the insurance policies were due to expire on February 29, 2020.
“This account has not met our expectations for profitability, and we think it best to terminate the underwriting relationship as of year end,” said J. Adam Abram, chairman and chief executive officer of James River.
All insurance policies related to Rasier are included in the company’s commercial auto line of business within its excess and surplus lines segment.
The decision comes after the company announced pre-tax, adverse development of between $55 and $60 million, net of reinsurance recoveries and reinstatement premiums, in its third quarter 2019 results.
The company said these losses are primarily related to its commercial auto line of business within its E&S lines segment, for the 2016 and 2017 underwriting years. The remainder of these losses, less than $10 million, relate to prior underwriting years in its casualty reinsurance segment.
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