Ocean Risk Retention Group, which writes liability insurance for taxis in New Jersy and Pennsylvania, has been placed into liquidation according to AM Best. The action could impact more than a quarter of a million medallion taxis in Philadelphia, the rating agency said.
The group, which is not rated by AM Best, insured about 480 of Philadelphia’s 1,600 medallion cabs and wrote direct premiums of $2.6 million. In 2008 that figure stood at $7.3 million. The company reported a net loss of $233,000 in 2012 and consented to voluntary liquidation.
Washington, D.C. superior court judge Stephanie Duncan-Peters signed off on an emergency liquidation order. In the petition officials said that Ocean had been operating in a “hazardous financial condition” and “apparent insolvency”. The group also lacked a formal management and board supervision for its more than 600 active claims.