R&Q acquires Bermuda captive from diverse base of shareholders
A UK based investor in non-life legacy business has acquired a Bermuda captive in run-off as it looks to diversify its operations into Bermuda and North America.
Randall & Quilter Investment Holdings acquired Agency Program Insurance Company (APIC), a Bermuda-based Class 3 insurer in run off, for $1.4 million from a diverse base of predominately individual shareholders.
The company, which has 28 cells, reinsures SPARTA Insurance Company, Discover Reinsurance Company, Nova Casualty Company, Hartford Insurance Company, AmTrust International, Wesco Insurance Company, PMA Companies and Arch Insurance Company through various insurance and quota share agreements.
The lines of business it covers include workers’ compensation, general, commercial auto, inland marine, property and auto liability exposures.
APIC has a total net asset value of $2.4 million and reserves of in the region of $8.6m. The company generated a pre-tax profit of $0.6 million for the year ended December 31, 2015. To acquire APIC, the total consideration payable by R&Q, in cash from existing resources, amounts to approximately $1.4 million.
Ken Randall, chairman and chief executive officer of R&Q, said: “We are delighted to complete the acquisition of APIC. This transaction, which grows R&Q’s balance sheet, demonstrates our ongoing commitment to continue to acquire legacy insurance assets and also continues to expand our acquisition activity in the North America, Bermuda and Caribbean region.”