Lyft Results Presentation Deck
Insurance Transaction Overview
Transaction Summary:
On April 22, we executed an agreement with DARAG Bermuda LTD to
reinsure our captive insurance entity for $183.2 million of economic
coverage above the liabilities recorded as of March 31, 2021 for policies
underwritten during the period of 10/1/2018-10/1/2020.
Net Transaction Cost: $20.2M
-
Transaction Overview
Structure:
Insurance liabilities will remain on our books after the transaction closes,
but Lyft will recognize an offsetting reinsurance recoverable.
From an economic perspective, when the claims we are reinsuring are
ultimately resolved, to the extent the ultimate value exceeds the liabilities
as of March 31, 2021, Lyft will receive dollar for dollar coverage for up to
$183.2 million. To the extent the ultimate insurance liability is below the
March 31, 2021 balance sheet, the benefit will accrue to the reinsurer.
Expected Closing Date: Mid May
Rationale
Secured $183.2 million of protection against the economic cost of future adverse
development on claims reinsured by our captive insurance entity with no impact
to unrestricted cash.
Note: Due to rounding, numbers presented may not add up precisely to the totals provided.
($ in Millions)
Assets
Related Balance Sheet Movements
Restricted Cash
Reinsurance Recoverable
Total Assets
Liabilities
Insurance Reserves
Funds Held Liabilities
Stockholders' Equity
Total Liabilities & Stockholders' Equity
March 31,
2021
$271.5
$271.5
$251.3
$20.2
$271.5
Impact
$251.3
$251.3
$271.5
($20.2)
$251.3
At Closing
$271.5
$251.3
$522.8
$251.3
$271.5
$522.8
9View entire presentation