Shares of insurer plunge after it nixes all Uber policies
Shares of specialty insurer James River Group Holdings plummeted more than 22 percent during the trading day on Wednesday after the company canceled all plans issued to Uber.
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Uber’s wholly-owned commercial auto insurance business Raiser LLC was James Rivers’ largest customer, and Wednesday’s market moves all but eliminated the company’s year-to-date gains.
The Bermuda-based insurer announced that all policies related to Raiser would be canceled as of Dec. 31.
“This account has not met our expectations for profitability, and we think it best to terminate the underwriting relationship as of year-end,” J. Adam Abram, Chairman and Chief Executive Officer of James River, said on a conference call.
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The company reported losses of between $55 million and $60 million related to its commercial auto line of business, including the Raiser policies.
It was not immediately clear who Uber would tap to replace James River, but shares of the ridesharing giant were unmoved by the news.