R&Q sells part of its business for $27.6m
Randall & Quilter Investment Holdings Ltd has sold its insurance services and captive management operations to UK-based Davies Group in a deal worth £20 million ($27.6 million).
R&Q, whose head office is in the FB Perry Building on Church Street, said the sale would include Randall & Quilter Bermuda Holdings Ltd and its Quest subsidiaries, as well as JMD Specialist Insurance Services Group Ltd and its subsidiaries, R&Quiem Ltd, John Heath & Company Ltd and AM Associates Insurance Services Ltd.
The sale follows the previously announced decision to simplify the group’s operations to focus on its core, high-growth activities which include the acquisition of run-off portfolios and the use of its licensed companies in the US and EU as conduits for niche and profitable books of insurance business, primarily to highly rated reinsurers.
Net cash consideration payable by Davies, after deducting net debt applicable to R&Q said the overall impact of the sale on the group is expected to be broadly neutral to book value and earnings after allowance for transaction expenses, related incentive payments, working capital adjustments and goodwill is written off.
The group’s tangible net assets will increase by about £12 million as a result of the transfer of value from goodwill to cash, R&Q added.
“The net proceeds of the sale will be deployed to help finance the growing legacy transaction pipeline, especially in the US and Lloyd’s, and to generate commission income from the use of Accredited and Malta’s direct licences,” R&Q said.
Ken Randall, R&Q’s chairman and chief executive officer, said: “The sale of our insurance services and captive management operations is a significant milestone in the group’s decision to simplify its operations and focus on our core areas of legacy acquisitions and the writing of quality programme business, which is mostly reinsured to highly rated reinsurers.
“The sale will enable us to focus further on our core operations where we remain excited about the growth potential in the current year and beyond, underpinning the Group’s financial performance and distribution policy.”
A fun business that works on many levels
Call for schools to merge or close
Gosling bemoans lack of city consultation
Nusum thrilled to win top teaching award
OBA hits back over Burt’s recession comments
What are we afraid of, Bermuda?
Financial assistance to fall by $1.5m
Message of unity at PLP Founders’ Day
Take Our Poll