R&Q completed 17 legacy insurance and captive deals in 2018
Randall & Quilter Investment Holdings (RQIH), a specialist non-life legacy insurance investor, acquired 17 different portfolios or insurance companies and captives in 2018, representing £18.5 million in net reserves, it’s full year results show.
RQIH’s pre-tax profit from continuing operations was up 45 percent to £14.3 million. Group chairman and CEO Ken Randall noted that this result was achieved despite the deferral of a number of legacy transactions into 2019 – most notably the delayed acquisition of Global Re.
RQIH also agreed to acquire Global Re in 2018, its largest legacy deal to date, costing $80.5m and expected to complete in the first half of 2019.
“Our legacy pipeline remains very active with continuing evidence that insurers are increasingly turning to run off specialists to offload discontinued portfolios of insurance business in order to improve their capital efficiency and reduce costs of managing non-core activities,” said Randall.
In 2018, R&Q suggested it made “healthy” reserve savings from previously acquired portfolios, notably the run-off of our Lloyd’s Syndicates and a mature portfolio of US customs import bonds, along with a number of workers’ compensation portfolios acquired from USA captive insurers.
At the start of 2018, R&Q completed the sale of its non-core insurance services and captive management operations to Davies Group, in a move to streamline the business.
This involved the sale of the entire share capital of JMD Specialist Insurance Services Group Limited and its subsidiaries, R&Quiem Limited, John Heath & Company Limited and AM Associates Insurance Services Limited as well as Randall & Quilter Bermuda Holdings Limited and its Quest subsidiaries.
On March 31, 2018, R&Q novated the UK motor, employers’ and public liability policies of Derwent Insurance Limited (Derwent), a Guernsey based captive, to Accredited Insurance (Europe).
On June 1, R&Q novated the workers’ compensation and auto liability policies fronted by Travelers of Traffic Insurance, a Cayman based captive, to a cell within R&Q Quest (SAC)
On July 31, R&Q completed the novation of the commercial general liability policies of Norcan Insurance Company, a Barbados based captive, to a cell within R&Q Bermuda (SAC).
In December, it novated the workers’ compensation policies of Temporary Services Insurance Limited (TSIL), a Cayman domiciled captive, to a cell within R&Q Bermuda (SAC).