Randall & Quilter (R&Q) has reached an agreement with MPPA Insurance, formed in 1992 as a captive of the Michigan Plastic Processors Association, to receive by way of novation all contracts underwritten by MPPA. The captive, which has been in run-off since 2008, will novate its risk to R&Q’s Bermuda rent-a-captive facility.
MPPA, which wrote excess workers compensation, transferred assets in the novations amounted to $4.9 million. R&Q paid a transaction fee of $3.4 million. The acquisition required the two front companies— Travelers Indemnity Company and National Union Fire Insurance Company of Pittsburgh—to reach agreement.
Ken Randall, CEO of R&Q, said: “We are delighted to have completed this transaction, which is our first for the Bermuda captive market. Having seen success in other domiciles in the last twelve months, notably Guernsey, we are pleased to now see increasing activity from Bermuda captives looking for exit or restructuring solutions. Whether acquisition, novation or loss portfolio transfers, the group has a suite of versatile solutions for the captive sector.”
Novation, acquisition, R&Q, rent-a-captive