R&Q revenues jump despite “challenging year”
Revenues jumped at Randall & Quilter (R&Q), the insurance services and investment company, in 2014, although it also made heavy losses driven by reserve deterioration.
The group’s total income for the year, including premiums written and investment income, increased to £65.4 million in 2014, compared with £54.8 million in 2013. However, it posted a pre-tax loss of £1.6 million, compared with a pre-tax profit of £9.6 million in 2013.
R&Q had previously mentioned that it was experiencing a tough year because of a deterioration in net provisions for asbestos claims in R&Q Re US, the significant legal expenses associated with the recently successfully concluded arbitration of a large life settlement claim in former Syndicate 102, and the failure to secure a number of anticipated service contract wins in the now restructured US service operations were the main contributory factors.
R&Q completed nine legacy transactions in 2014, with an increased emphasis on EU-domiciled and Bermuda based entities, prompted in part by the impending introduction of Solvency II and other equivalent solvency regimes.
Ken Randall, chairman and chief executive of the group, said: “We look to the future with confidence after a challenging year financially during 2014. We benefit from an excellent legacy transaction pipeline, a newly streamlined service operation in the US and further opportunity to grow fee income in our underwriting management division. The focus will be firmly on growing tangible book value and resuming the annual increases in cash distributions to shareholders.”