Insurance services and investment company Randall & Quilter (R&Q) will acquire the captive insurer of Imperial Chemical Industries (ICI) for £17 million.
Formed in 1926 as the UK registered captive insurer for ICI, IC Insurance has been in run-off since 1996.
The residual liabilities comprise primarily of US workers’ compensation reinsurance of the United Insurance Company pooling facility along with some residual losses from self-insured liabilities and London market underwriting activity.
R&Q Market Services will manage the captive, with the intention of undertaking a Part VII Transfer of the remaining insurance business to the group’s consolidation vehicle R&Q Insurance (Malta), subject to approval.
Ken Randall, chairman and chief executive officer of R&Q, said: “We are delighted to have entered into an agreement to acquire IC Insurance from AstraZeneca UK and Imperial Chemicals Industries.
“This is one of a number of current transactions we are assessing where a corporate parent is looking to dispose of their legacy captive prior to the implementation of Solvency II. The advent of Solvency II is generating a number of prospects for the group across Europe and in general we remain excited about our legacy acquisition pipeline.”
Randall & Quilter, R&Q, Europe, Imperial Chemical Industries, Mergers & Acquisitions