Ken Randall, R&Q
15 October 2020Bermuda analysis

R&Q reports strong growth in H1 2020

Randall & Quilter Investment Holdings (R&Q) reported strong growth across both its programme and legacy businesses in the first half of 2020.

R&Q reported a pre-tax operating profit of  £10.4 million in the first half of 2020, a 30 percent increase on the £8 million generated in the same period of 2019.

The programme management business saw gross written premium increase by 42.6 percent to $247.2 million, from the $173.4 million reported in the six month period to June 2019. It added ten new programmes in H1, taking the total number of active programmes to 36 at the end of the end of June.

The legacy business saw its net reserves acquired increase by 81 percent to £267 million, from £148 million in H1 2019, with nine transactions completed across seven jurisdictions.

This generated an operating return on tangible capital of 17.7 percent, up from 14.1 percent in the same period the previous year.

R&Q noted it had raised $100 million of new equity in the period, strengthening its capital base and increasing its group solvency ratio to 191 percent.

In a joint statement, its senior management team of Ken Randall, Alan Quilter and William Spiegel, noted this growth had come despite a reduction in total investment returns and delays in on-boarding new programnes , caused by COVID-19.

The pandemic has caused minimal disruptions to its operations, R&Q said, with the hardening market creating exciting opportunities for future growth in both the legacy and programme management businesses.

“We have a strong balance sheet, expertise, relationships and the track-record to capture the additional growth in front of us,” R&Q added. “However, as is our tradition, we will be patient and disciplined as we continue to grow our business.”

R&Q predicted fiscal year 2020 results will be in line with market expectations. The board has recommended an interim distribution to shareholders of 3.8p per share in cash.