28 November 2016USA analysis

R&Q completes US-based self insurer novation

Randall and Quilter Investment Holdings (R&Q) has completed its novation of liabilities from Maryland Motor Truck Association Workers’ Compensation Self Insurance Group (MMTA WCSIG), a captive insurer, to its US admitted insurer Accredited Surety and Casualty (Accredited).

The MMTA WCSIG was formed in August of 1994 as a workers’ compensation self-insurance group for the members of the Maryland Motor Truck Association; and was later discontinued on January 1, 2006.

Accredited assumed all liabilities from the group for years 1994-2006, and in doing so has provided full finality for the MMTA WCSIG.

“We are delighted to complete this novation, which represents our first transaction with a US based self-insurer,” said Ken Randall, chairman and CEO of R&Q.

“This deal reinforces our team’s innovation in structuring transactions to provide full finality to an increasing variety of entities with legacy insurance liabilities in the US marketplace. The US self-insurer market is very substantial in size and we have several legacy deals of this nature in the pipeline.”