Acquisition

RNS Number : 6485B

Randall & Quilter Inv Hldgs PLC

19 April 2012

 



Date:	19 April 2012
On behalf of:	Randall & Quilter Investment Holdings plc ("R&Q" or the "Group")
For immediate release

Randall & Quilter Investment Holdings plc

Acquisition

Randall & Quilter Investment Holdings plc ('R&Q' or the 'Group') is pleased to announce that it has agreed to acquire the entire issued share capital of Trimac Acceptance Limited ('Trimac Acceptance') and its wholly owned subsidiary, Trimac  Exit Insurance Limited, ('Trimac Exit') a Barbados domiciled captive insurer, from Trimac Investments Limited Partnership.

Trimac Exit has been in run-off since 1996 and wrote general liability risks for the Trimac group's US operations. The net reserves relating to workers' compensation claims were c. $118k as at 31 December 2011, the date of the latest available management accounts. The adjusted Net Asset Value based on the same management accounts is $2.9m. The consideration, payable by Randall & Quilter in cash from existing resources is $2.7m, subject only to a final $ for $ net asset adjustment based on the final completion accounts.

We are currently awaiting Barbadian regulatory change of control approval, expected within the next few weeks.

Following completion, we will novate the outstanding liabilities to a newly formed R&Q owned cell within R&Q Quest (SAC) Limited, our Group cell company in Bermuda and will receive a fee for this novation from the Trimac group. The Trimac group will also transfer sufficient cash into the cell to cover held reserves and collateral requirements and will provide the cell with a full indemnity for any future claims deterioration. Following the novation, we will seek to wind-up the Trimac Acceptance and Trimac Exit companies as soon as practicably possible.

Commenting on today's announcement, Ken Randall, Chairman and Chief Executive Officer of Randall & Quilter, said:

"The acquisition of Trimac Acceptance and Trimac Exit demonstrates further our ability to provide attractive exit solutions for captive owners who have put their captives in run-off or are contemplating ceasing writing new business. Following this acquisition, as outlined above, we will optimise operational and capital efficiency through a novation to a Group owned cell within our Bermudian captive management operations. "

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Enquiries to:

Randall & Quilter Investment Holdings PLC               www.rqih.com  

Tom Booth                                                                  Tel: [phone]

Numis Securities Limited

Stuart Skinner (Nominated Adviser)                           Tel: [phone]

Charles Farquhar (Broker)                                         Tel: [phone]

Shore Capital Stockbrokers Limited

Dru Danford/Stephane Auton                                     Tel: [phone]

FTI Consulting                                                                            

Neil Doyle/Edward Berry                                            Tel: [phone]

Notes to Editors:

Since formation, Randall & Quilter has pursued a buy and build strategy to create a comprehensive range of investment activities and services in the global non-life insurance market and is focused on the following four core areas:

-          Insurance Investments;

-          Insurance Services;

-          Underwriting Management; and

-          Captives.

The Group currently:

-          has a team of up to 400 insurance professionals based in the UK, USA, Bermuda, and Continental Europe with wide service capability in both the 'live' and 'run-off' market;

-          has a portfolio of 10 insurance companies in run-off (from the UK, US and Continental Europe) with net assets of c.£85.5 as at 31 December 2011;

-          provides 'turnkey' management services to Lloyd's syndicate 1897, manages two RITC ('run-off') syndicates and owns and operates 5 MGAs.

-           acquires and manages a portfolio of insurance receivables, with a carrying cost of c. £8.2m as at 31 December 2011;

The Group was founded by Ken Randall, Executive Chairman and Chief Executive, and Alan Quilter, Chief Operating Officer, who both have extensive experience in the industry including as Head of Regulation of Lloyd's and as Head of the Market Financial Services Group respectively.

 

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