Old Mutual sells Constantia to R&Q
Old Mutual has sold Constantia Insurance Company (Guernsey), a captive company currently in run-off, to Bermuda-based Randall & Quilter Investment Holdings (R&Q) for £1.5 million.
“We are delighted to have acquired Constantia and this continues to demonstrate the ability of R&Q to provide exit solutions for end of life captive insurance companies,” commented Ken Randall, chairman and chief executive officer of R&Q. “This continues our excellent track record of acquiring captive insurance companies and we remain excited about our legacy acquisition pipeline.”
According to R&Q the acquisition price represents a small discount to Constantia’s pro-forma net assets of £3.4 million. Regulatory approval for the acquisition has been given. In a statement R&Q said that the transaction will be settled in cash and financed from the group’s existing resources. In the year ended 31 December 2016 Constantia reported a loss before tax of £2.4 million.
Before it was placed into run-off Constantia wrote professional indemnity & crime programme insurance to various Old Mutual Group companies from 2003 until 30 April 2017.
In the wake of the acquisition Constantia will be amalgamated into Capstan Insurance Company, R&Q’s Guernsey-based consolidation vehicle, subject to necessary consents.