copy-of-captives-international
29 June 2023Analysis

R&Q announces 2022 financial results


R&Q Insurance Holdings has announced its results for the year ended 31 December 2022.

The company said that from a strategic and governance standpoint it had had an eventful year, completing the legal separation of Accredited and R&Q Legacy and announcing the exploration of strategic transactions with third parties as part of the separation.

It also saw the recognition by AM Best of Accredited as an independent rating unit, with an A- financial strength rating, completed the sale of its minority stake in Tradesman Program Managers for $47 million at 10x adjusted EBITDA and 3.7x initial investment and raised $50m of preferred equity from Scopia Capital, with the opportunity to raise an additional $10 million to increase the capital resources of R&Q Legacy.

R&Q’s 2022 financial highlights saw Accredited write gross written premiums of $1.8 billion, a 76% increase on the 2021 figure of $1 billion, fee income (excluding MGA stakes) of $80.0 million (2021: $44.9 million, a 78% increase) and a pre-tax operating profit of $55.7 million (2021: $20.6 million, a 170% increase)

R&Q Legacy completed four transactions while exercising discipline in a soft market with gross reserves acquired of $68.8 million, down on the 2021 figure of $735.0 million.

Reserves under management totalled $395.6 million at year-end, which has increased to over $1 billion with MSA Safety transaction involving non-insurance liabilities that closed in January 2023.

R&Q Legacy reported a pre-tax operating loss of $56.6 million, which includes $32 million of adverse development primarily from older transactions. The loss, excluding adverse development, reflects the first full year of a transition to a capital efficient annual recurring, fee-based revenue model from a balance sheet intensive, Day-1 gain model.

R&G as a group made a pre-tax operating loss of $33.3 million impacted by $32 million of adverse development and the transition to a fee-based revenue model at R&Q Legacy.


More on this story

news
29 August 2023   The company is a joint venture between R&Q and Obra Capital.
news
17 July 2023   New non-executive director joins the board.
Analysis
12 June 2023   The money raised will be used to increase the capitalisation of R&Q’s legacy arm.

More on this story

news
29 August 2023   The company is a joint venture between R&Q and Obra Capital.
news
17 July 2023   New non-executive director joins the board.
Analysis
12 June 2023   The money raised will be used to increase the capitalisation of R&Q’s legacy arm.