James River Group Holdings (JRG) is cancelling all insurance policies issued to its largest customer, Rasier, a subsidiary of Uber, and its affiliates, from December 31, 2019.
JRG confirmed it has delivered a notice of early cancellation for these commercial auto policies, within its excess and surplus lines segment. A majority of the insurance policies were due to expire on February 29, 2020.
J. Adam Abram, chairman and CEO of James River, said: “This account has not met our expectations for profitability, and we think it best to terminate the underwriting relationship as of year end.”
JRG also warned of a pre-tax, adverse development of between $55 and $60 million, net of reinsurance recoveries and reinstatement premiums, primarily related to the same excess and surplus lines within its commercial auto insurance business. Less than $10 million of losses related to the casualty reinsurance segment.
The losses relate to the 2016 and 2017 underwriting years and will impact Q3 results, JRG warned.
Howevwer, JRG also announced growth of 72 percent in its core, non-commercial auto excess and surplus lines gross written premium versus the prior year quarter.
JRG will release its Q3 earnings after the market closes on November 6, 2019.
James River Group Holdings, J. Adam Abram, Raiser