Randall & Quilter (R&Q) has reported an increase in its profits during the first half of 2016, partially due to the growth of Capstan, its Guernsey captive consolidator.
R&Q’s pre-tax profit for the first half of 2016 was $1.6 million, compared with a loss of $6 million for the same period of 2015.
R&Q’s gross written premiums increased to $28.1 million in the first half of this year ending in June 30 2016, compared with $18.1 million in the first half of 2015, an increase of 23.1 percent.
The report said: “Reserve releases from the run-off insurance companies were higher than the prior year, led by the pro-active claims management strategy in R&Q Re (US), which was previously impeded by the ACE surplus maintenance agreement which was commuted at the end of last year.
“La Licorne, R&Q Alpha (previously IC Insurance) and our Guernsey captive consolidator, Capstan were all additional contributors to the positive reserve development in the period through a combination of favourable settlements and interim reserve reassessments.”
Ken Randall, chairman and chief executive officer of R&Q, said: “The group’s result is always heavily second half weighted and this year is no exception. Trading is expected to be strong during the remainder of the year, driven by an excellent pipeline of legacy acquisition and reinsurance deals.
“Full year profits are expected to be in line with market expectations and the outlook looks very promising, especially in the core legacy acquisition business, in Accredited through its development as a niche programme conduit and in UK services.
"We are pleased with the performance of both our Insurance Investments and Insurance Services divisions in the first half of the year, especially given the usual second half year bias in profitability.
“The scale and profile of our Lloyd’s managing agency benefits from the growth of Syndicate 1991, which is now generating increased premium income, despite challenging underwriting conditions. Interest in our Lloyd’s Turnkey Syndicate capability continues.”
Randall & Quilter, North America, Capstan, Insurance, Captive, Results, Reinsurance, Ken Randall