James River Group Holdings Ltd. said on Thursday that they have secured a reinsurance contract for their remaining business book involving the ridesharing company Uber Technologies Inc. with an Uber company in captivity.
James River Group stated that two of its principal operations subsidiaries have entered into a loss-making reinsurance transaction with Aleka Insurance Inc., a wholly-owned Uber insurance company under which Aleka essentially reinsures the entire James River's older portfolio of commercial car policies related to Uber's exchanges. .
The transaction was effective from 1 July 2021 and was closed at the time of signing and has received all necessary regulatory approvals.
James River will recognize a loss after tax in connection with the loss portfolio transfer of approximately $ 23.5 million during the third quarter of 2021, largely due to claims handling costs associated with the transaction.
The agreement includes an administrator service agreement with Helmsman Management Services LLC claims management services for reinsured commercial vehicle policies for the remaining life of these claims after a transitional period.
James River has disposed of a total of approximately $ 345.1 million of commercial car liabilities related to the writing of Uber's ride-sharing business to Aleka during the years 2013-2019. The coverage provided by Aleka is fully guaranteed and is not covered by an overall limit.
CEO Frank D & # 39; Orazio said in the statement that the transaction provides financial finality to essentially the entire insurer's commercial car drain portfolio.
The James River Group took its third quarter 2019 results hard as a result of its deal with Uber.