R&Q complete loss portfolio transfer for Devlag

Randall & Quilter Investment Holdings has completed a loss portfolio transfer of reinsurance business with Germany’s Delvag Versicherungs-AG, the insurance captive wholly owned by airline Lufthansa Group.

The transfer concerns a third-party reinsurance portfolio of €22 million of reserves underwritten from 1969 onwards and with no active client relationships. Reinsurance is being provided by R&Q’s A.M. Best A- (Excellent) rated carrier in Malta, Accredited Insurance (Europe) Limited.

The transaction also includes the mutual interest to undertake an insurance business transfer of the portfolio to Accredited, subject to regulatory approvals.

Paul Corver, group head of M&A at R&Q, explained: “We are delighted to have completed another loss portfolio transfer with the mutual intention to follow on with a reinsurance business transfer from Germany to Malta. We have assumed numerous portfolios of business from across Europe into our rated Maltese platform, which provides complete finality to the cedant along with the accompanying cost and capital efficiencies.

“We are very pleased to have executed this transaction with Delvag. Once again, it proves R&Q’s capabilities to utilize its international team to provide full finality legacy solutions across the US and Europe and here in particular in the DACH region.”

Andreas Brügel, director of reinsurance at Delvag, also welcomed the deal: “After Delvag’s decision to cease writing third-party reinsurance business after 50 years, this portfolio transfer was the logical consequence to free-up Solvency II capital. This fundamentally supports the reinsurance department’s new strategy to concentrate on providing services as a group captive instead of primarily acting as a third-party business writer.”