Transportation
NYC’s Largest Cab Insurer Ordered to Explore Sale After Losses
- American Transit posted $700 million loss in second quarter
- Regulators have known for years that the company is insolvent
Regulators scrutinized the company’s management, oversight and spending.
Photographer: Paul Fragipane/BloombergThis article is for subscribers only.
New York’s insurance regulator ordered American Transit Insurance Co. to immediately find capital and explore a sale in a damning report laying out its severe financial condition.
The report laid out dozens of potential financial improprieties and accounting problems at the city’s largest insurer of taxis and for-hire vehicles, and warned that the consequences of the company’s failure could be devastating for tens of thousands of drivers.