(Bloomberg) — The insurer that ride-sharing service Uber Technologies Inc. uses to protect drivers and passengers is going public, promoting how it's more willing than competitors to invest in junk-rated loans.
James River Group Holdings Ltd. outlined its strategy this way in a Dec. 2 prospectus: "We do not operate like a hedge fund, but we are comfortable allocating a portion of our assets to non-traditional investments."
About a fifth of its $1.2 billion portfolio was in bank loans at the end of September, according to the filing from the company, which is backed by hedge fund firm D.E. Shaw & Co. and Goldman Sachs Group Inc. While these holdings offer higher yields than insurers' typical investments, they tend to be below investment grade and trade infrequently, making them hard to sell in a pinch.
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