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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