James River Group Holdings Ltd. will cancel all insurance policies issued to its largest customer, Rasier LLC, and its affiliates, effective Dec. 31.
James River said the account did not meet its expectations for profitability. The policies, most of which were due to expire Feb. 29, 2020, are included in James River's commercial auto line of business within its excess and surplus lines segment. Rasier is an affiliate of ride-hailing company Uber Technologies Inc.
Additionally, James River expects pretax adverse development of between $55 million and $60 million, net of reinsurance recoveries and reinstatement premiums, to impact its third-quarter results.
The losses are primarily related to the company's commercial auto line of business for the 2016 and 2017 underwriting years. Less than $10 million of the losses are related to prior underwriting years in its casualty reinsurance segment.
