Paul Corver, R&Q
Randall & Quilter II Holdings, a subsidiary of Randall & Quilter Investment Holdings, has signed an agreement to acquire the entire issued share capital of The World Marine & General Insurance Company (WMG) from BHP Group.
WMG was incorporated in England and Wales in 1894 and was purchased by BHP in 1987. It has written various insurance coverages since incorporation and from 1987 provided insurance protection solely for the BHP Group until it was placed into run-off in 2001.
This is R&Q’s second executed acquisition agreement for a UK insurer this week. It had already signed a separate deal to acquire Inceptum Insurance Company , also incorporated in England & Wales in 1998. Inceptum was placed into run-off in September 2009 and sold by the HSBC group to Syndicate Holding in September 2011. Inceptum is part of the Vibe Group of companies.
Both deals remain subject to regulatory approval.
Paul Corver, group head of M&A at R&Q, said BHP is just one of several companies R&Q is negotiating potential exit or restructuring deals with for their captives.
“Current market conditions are causing companies to look closer at the capital tied up in their captives and whether it can be released to distribute to the parent or recycled to support new business lines,” he explained. “Disposal of legacy liabilities can achieve either of these ambitions.”
Randall & Quilter, The World Marine & General Insurance Company, BHP Group, Paul Corver