Acquisition

RNS Number : 4208Q

Randall & Quilter Inv Hldgs PLC

19 October 2011

 



Date:	19 October 2011
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, subject to change of control approval by the FSA and certain customary pre-completion deliverables, it has reached agreement to acquire the entire issued share capital of Principle Insurance Company Limited ('Principle'), a UK domiciled insurer, from Principle Insurance Holdings Limited.

Principle has been in run-off since October 2009 and comprises almost entirely of Takaful motor insurance business with net reserves of c. £2.8m as at 30 June, 2011 and a net asset value of c. £5.1m as at 31 December 2010 (the date of the latest available audited accounts). The consideration, payable by Randall & Quilter in cash from existing resources, is £4.275m, subject completion adjustments. The business will be managed by R&Q Insurance Services Ltd.

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

"We are pleased to have reached agreement to acquire Principle and it demonstrates our commitment to find new legacy portfolios which meet our return criteria and have shorter anticipated run-off profiles. We have commented that our pipeline has grown in recent times and it is pleasing to report that this heightened activity has now resulted in a run-off company purchase, subject to regulatory approval, expected to be received in the coming months."

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Enquiries to:

Randall & Quilter Investment Holdings PLC               www.rqih.co.uk  

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 portfolio of nine insurance companies in run-off (from the UK, US and Europe) with net assets
               of c.£72.2m as at 30 June 2011;

-              acquires and manages a portfolio of insurance receivables, with a carrying cost of c. £5.5m as at 30
               June 2011;

-              has wide service capability in both the 'live' and 'run-off' markets;

-              has a team of approximately 350 insurance professionals based in the UK, USA, Bermuda, Canada
               and Gibraltar; and

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

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.

 

END

 

 

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