Randall & Quilter Inv Hldgs Ltd R&Q increases interest in Tradesman (6392S)
March 18 2021 - 2:00AM
UK Regulatory
TIDMRQIH
RNS Number : 6392S
Randall & Quilter Inv Hldgs Ltd
18 March 2021
Randall & Quilter Investment Holdings Ltd.
R&Q increases interest in Tradesman
18 March 2021
Randall & Quilter Investment Holdings Ltd. ("R&Q"), the
leading non-life global specialty insurance company focusing on
Program Management and Legacy Insurance businesses, today announces
that it has reached agreement to increase its stake in Tradesman
Program Managers, LLC ("Tradesman"), the New York-based Managing
General Agent, from 35% to 40%.
As part of the transaction, R&Q will divest its 35% interest
in Roosevelt Road Re, Ltd. ("RRRe"), formerly known as Sandell Re
Ltd, to Roosevelt Road Capital Partners ("RRCP"), Tradesman's
majority shareholder. RRRe participates as part of a broad
reinsurance panel on the business underwritten by Tradesman.
R&Q's divestiture is in line with its limited appetite for live
underwriting exposure and is subject to regulatory approval by the
Bermuda Monetary Authority.
R&Q acquired its interest in Tradesman when it merged RRRe
into Tradesman on 1 September 2020. Following completion of today's
agreement R&Q will own 40% of Tradesman with RRCP owning 60% of
Tradesman and 100% of RRRe.
Tradesman underwrites Contractors' General Liability, Worker's
Compensation and Habitational General Liability insurance through
insurance policies which are issued by R&Q's US program
manager, Accredited Surety and Casualty Company, Inc.
("Accredited"). Accredited is rated A- IX by AM Best.
In the year to 31 December 2020, Tradesman reported earnings
before interest, tax depreciation and amortisation of $13.0m, an
increase of 61% on 2019, which itself was an increase of 99% from
2018.
William Spiegel , Executive Deputy Chairman at R&Q said: "We
are delighted to have increased our interest in Tradesman, which is
a dynamic and fast-growing MGA offering a strong and expanding
product range to its clients. In addition to our two core business
lines, Program Management and Legacy Insurance, we believe
selective MGA investments allows us to access capital light fee
income, in addition to strengthening relationships with our program
partners. Through our Accredited platform, we have supported
Tradesman's continued success since its creation in 2017, and
generated $6.7m of commissions on premium written by Tradesman in
2020. We look forward to the continuation of that partnership
through our increased interest."
Daniel Hickey, Jr ., the CEO of Tradesman and RRRe, said: "We're
excited to have R&Q as an engaged partner in the continued
growth of Tradesman's programs and this transaction gives R&Q
an increased interest in Tradesman, while allowing RRCP to further
develop RRRe into a significant reinsurance entity. The increased
stake in Tradesman by R&Q further aligns our partnership with
Accredited, our program partner, while our ownership of RRRe allows
us to increase our risk-taking positions and further grow the
Tradesman business."
Ends
Enquiries to: Randall & Quilter Investment Holdings Ltd
Ken Randall Tel: +44 (0)7831 145440
William Spiegel Tel: +1 917-826-5877
Numis Securities Limited (Nominated Advisor and Joint Broker)
Stuart Skinner Tel: 020 7260 1000
Charles Farquhar Tel: 020 7260 1000
Barclays Bank PLC (Joint Broker)
Mark Astaire Tel: 020 7632 2322
Milan Solanki Tel: 020 7632 2322
FTI Consulting
Tom Blackwell Tel: 020 3727 1051
Notes to Editors:
About R&Q
R&Q is a non-life global specialty insurance company
operating two core, highly complementary, businesses: Program
Management and Legacy Insurance. Both these businesses are leaders
in markets with high barriers to entry and significant secular
growth opportunities.
Legacy Insurance generates profits and capital extractions from
expert management of legacy non-life insurance portfolios. Program
Management generates commission income from its licensed (and
rated) carriers in the US, EU and the UK, writing niche and
profitable program business, largely on behalf of highly rated
reinsurers.
Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94
Website: www.rqih.com
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