James River Cedes About $345.1 Million in Commercial Auto Liabilities to Aleka
September 30 2021 - 7:15AM
Dow Jones News
By Dave Sebastian
James River Group Holdings Ltd. said it has ceded to Aleka
Insurance Inc. about $345.1 million of commercial auto liabilities
relating to business written for Uber Technologies Inc.'s
ride-sharing business from 2013 to 2019.
James River on Thursday said two of its main operating
subsidiaries have entered into a loss portfolio transfer
reinsurance transaction with Aleka, a wholly owned captive insurer
of Uber. Through the transaction, Aleka will reinsure substantially
all of James River's legacy portfolio of commercial auto policies
tied to Uber's ride-sharing business, James River said.
James River said it will recognize an aftertax loss of about
$23.5 million during the third quarter associated with the loss
portfolio transfer. The transaction was effective July 1 and closed
upon signing, it said.
Two James River subsidiaries and Aleka have entered into an
administrative services agreement with Helmsman Management Services
LLC for certain claims management services as part of the
transaction, James River said.
"While we are confident in our carried reserves for this
portfolio, the transaction brings economic finality to
substantially all of our commercial auto run off portfolio,
effectively insulating the portfolio from further potential reserve
development," Chief Executive Frank D'Orazio said. "This decisive
step enables James River to focus firmly on the future and continue
to build on the progress we have made in advancing our core
businesses and risk management practices," he said.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
September 30, 2021 07:00 ET (11:00 GMT)
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