9 October 2019Insurance

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.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

Argo to review board as it receives subpoena over compensation

Too many carriers in D&O, and none of them making a profit.

BMS poised for 'strong profitable growth' as it closes major investment deal 

Talanx to automate claims process using robotics and artificial intelligence

Risk Strategies replaces CEO as it outlines plan for growth

Insurtech Inzura hires telematics expert for UK and Europe

Feature:  10 ways insurers are using insurtech to drive new business

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
7 November 2019   This is the 10th consecutive quarter of renewal rate increases in the core E&S book
Insurance
1 August 2019   Bermuda-based James River Group Holdings's chief executive officer Robert Myron is stepping down from the top position due to ill health, the company said July 31.
Insurance
7 November 2018   Bermuda-based James River Group Holdings has appointed Christopher Harris and Sundar Srinivasan to its board of directors, and to its audit and investment committee, respectively.