R&Q sees massive year-on-year spike in profitability in H1 2019


Randall & Quilter Investment Holdings, the specialist non-life legacy insurance investor and capacity provider to the US and European MGA business, reported profit after tax of $32.6 million for the six months ended 30 June 2019. This represented a massive increase on the $5 million it generated in the same period in 2018.

It wrote gross premiums of $226 million for the first six months of the year, compared to $157.6 million in H1 2018. But premiums written net of reinsurance were $87.8 million in H1 2019, compared with $112.4 million in the same period the previous year.

R&H saw a 13 percent increase in net tangible assets per share to 133.2p, up from 117.6p in the same period of 2018, and a return on tangible equity of 12.5 percent, compared to 6.8 percent the previous year.

The period was particularly notable for the completion of its acquisition of Global Re for $80.5 million, its largest ever legacy transaction, one of five new legacy acquisitions and three legacy reinsurances in the half year. It also agreed the acquisition of Sandell Re for $25 million, subject to regulatory approval.

Ken Randall, executive group chairman, attributed its massive increase in profitability to the completion of legacy deals that were carried over from 2018, particularly of Global US Holdings and retro-active reinsurance of Schools Association for Excess Risk. Strong investment performance, with total income of £16 million against only £5.4 million for the whole of 2018, also played a significant part, he added.

“Our program management Business is growing strongly as we continue to expand our relationships with business producers and mainstream reinsurers and we have good visibility of future commission earnings,” said Randall.

“The onboarding process for newly agreed programs in Europe is a little slower than we had originally expected, however, the program segment of our business is expected to move into profit by the middle of 2020 with anticipated strong earnings growth thereafter.”

Randall & Quilter, Growth, Profits, Non-life insurance, Captive, MGA, Ken Randall, North America, Europe

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