Randall & Quilter Inv Hldgs Ltd Agreement with ProSight Specialty Insurance (9022U)
October 30 2017 - 2:00AM
UK Regulatory
TIDMRQIH
RNS Number : 9022U
Randall & Quilter Inv Hldgs Ltd
30 October 2017
Randall & Quilter Investment Holdings Ltd.
R&Q reaches agreement with ProSight Specialty Insurance to
novate the management of Syndicate 1110
30 October 2017
Randall and Quilter Investment Holdings Ltd. ("R&Q"), is
pleased to announce that it has reached agreement with ProSight
Specialty Insurance ("ProSight") to novate the management of
Syndicate 1110 ("S1110") to R&Q Managing Agency Limited
("RQMA") with day to day claims handling on non-US business
outsourced to R&Q Central Services. At the same time R&Q
will acquire, for a nominal sum, the 100% shareholding of the
ProSight corporate members; ProSight Specialty (TSMC) Limited
("TSMC") and ProSight Specialty (ECUCM) Limited ("ECUCM") that
provide capital support to S1110.
ProSight will continue to meet Funds at Lloyd's ('FAL')
obligations in respect of S1110 until a Reinsurance to Close
("RITC") by R&Q in early 2020, though ProSight has the option
of requiring R&Q to provide up to 30% of the FAL with 4 months'
notice in exchange for annual payments to cover R&Q's cost of
capital. Based upon current expectations, the amount of FAL R&Q
could be required to provide is circa GBP9.4m, the majority of
which would be sourced from external funding providers.
As part of ProSight's exit from Lloyd's, all of S1110's
reinsurance of ProSight's US based insurance companies was
commuted, and business sourced by ProSight coverholder ProSight
Specialty Insurance Solution to S1110 is being reinsured back to
the ProSight Group via 100% quota share reinsurance provided by
ProSight's subsidiary New York Marine and General Insurance Company
("NYMG") which is A- rated by AM Best. S1110 will also have the
benefit of an Aggregate Stop Loss reinsurance on the non-US
business by NYMG in excess of current syndicate reserves of circa
GBP76 m.
R&Q, as owner of the corporate members, will have the
benefit of 75% of any future reserve savings, with ProSight
retaining a 25% profit interest.
Subject to regulatory approvals, R&Q will also acquire
ProSight Specialty Underwriters Limited ("PSUL") and ProSight
Specialty Managing Agency Limited ("PSMAL"). PSMAL will be
de-authorised ahead of the completion of the acquisition by
R&Q. The consideration payable will be equal to the tangible
net asset value of the two companies, approximately GBP1.1m,
satisfied in cash.
Commenting on the transaction, Ken Randall, Chairman of R&Q
said, "We are delighted to have reached agreement with ProSight in
respect of S1110. Our appetite for using our expert claims
administration skills in the run-off of legacy Lloyd's portfolios
continues and this transaction is evidence of that. The ongoing
collaboration with RQMA and Coverys, its proposed new owners,
provides R&Q with continued access to the infrastructure
required to manage syndicates with legacy business and we look
forward to completing further transactions as the pipeline in this
segment continues to grow."
ProSight CEO Joe Beneducci commented that, "We are pleased to
have completed this transaction enabling us to recapture our well
performing US book of business and also retain a profits interest
on the UK portfolio. We look forward to working together with
R&Q on the run-off of the UK book."
Ends
Enquiries to:
Randall & Quilter Investment www.rqih.com
Holdings Ltd.
Tom Booth Tel: +1 441 247
8330
Numis Securities Limited (Nominated Adviser)
Stuart Skinner Tel: 020 7260
1000
Charles Farquhar Tel: 020 7260
1000
Shore Capital Stockbrokers Limited
Dru Danford / Stephane Auton Tel: 020 7408
4090
FTI Consulting
Edward Berry/Tom Blackwell Tel: 020 3727
1046
Notes to Editors:
About R&Q
Randall & Quilter pursues a buy and build strategy and has
created a comprehensive range of investment activities and services
in the global non-life insurance market.
R&Q is focused on the following three areas:
-- Insurance Investments
-- Insurance Services
-- Underwriting Management
The Group:
-- provides a range of services to both the live and legacy
(re)insurance markets to support growing businesses and address
complex and challenging run-off issues;
-- employs over 400 insurance professionals based in Bermuda,
the US and Europe with wide service capability in both the 'live'
and 'run-off' markets;
-- owns and manages a portfolio of insurance companies, both
active and in run-off, in Bermuda, the US and Europe with net
assets of GBP201m as at 30 June 2017;
-- owns an admitted P&C Insurer, A- rated by AM Best, with
licenses throughout the US; owns a Bermuda Class 3A insurance
company;
-- launched Syndicate 1991, which commenced underwriting from
January 1, 2013 and has an agreed capacity of GBP127m for 2017,
manages one RITC ('run-off') syndicate, 3330, and owns and operates
an MGA platform;
-- acquires and manages a portfolio of insurance receivables,
with a carrying cost of GBP5.1m as at 30 June 2017
The Group was founded by Ken Randall and Alan Quilter in
1991.
Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94
Website: www.rqih.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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