R&Q lands contracts underwritten by SEG Insurance
R&Q has received by way of novation all contracts underwritten by one of the cells SEG Insurance, which will now be moved into the company’s Bermuda-based rent-a-captive R&Q Quest SAC Limited.
SEG wrote business in the cell from July 1st 2007 to July 1st 2010 as a reinsurer of direct policies issued by a large US carrier. The captive wrote workers compensation, employers’ liability, automobile liability, automobile physical damage, general liability and crime.
Transferring liabilities were estimated at $0.7m as of 31 December 2013 and transferring assets included a customary risk and profit margin over this figure.
Commenting on today's announcement, Ken Randall, Chief Executive Officer of R&Q, says: "We are pleased to have completed the RITC of Syndicate 102 into the 2014 year of account of Syndicate 3330. We now have a 100 percent economic interest in the result of the business formerly reinsured into Syndicate 102 and have provided additional capital in exchange for a customary risk margin. The transaction further reinforces R&Q's position as an active participant in the RITC market as manager, service provider and capital provider.
“We are also pleased to announce the completion of another transaction in the Bermuda captive market, where our model for sharing cost efficiencies and providing liquidity to owners of programmes in run-off continues to gain traction. Whether acquisition, novation or loss portfolio transfers, the Group has a suite of versatile solutions for the captive sector.”
“These transactions evidence the Group’s continued activity in the acquisition of legacy insurance assets and the pipeline continues to grow with a range of transaction types, geographies and sizes.”