Loss Portfolio Transfer

RNS Number : 8527O

Randall & Quilter Inv Hldgs Ltd

04 June 2020

 

Randall & Quilter Investment Holdings Ltd.

Loss Portfolio Transfer with Houston International Insurance Group

4 June 2020

Randall & Quilter Investment Holdings Ltd. ('R&Q' or 'the Group') is pleased to announce, following approval from the Texas Department of Insurance, the completion of its loss portfolio transfer from Houston International Insurance Group (HIIG).  This provides reinsurance protection and limited adverse development cover for circa $95m of net reserves of three companies in HIIG - Houston Specialty Insurance Company, Imperium Insurance Company and Great Midwest Insurance Company.  The reserves relate to the companies' 2017 and prior policy years for certain portfolios. 

Peter B. Smith, President of HIIG says "We are pleased to have entered into a partnership with R&Q with this meaningful transaction.  Combined with our recent equity capital raise and strong talent additions, HIIG is on a solid path towards the top tier of specialty carriers."

Paul Corver, Group Head of M&A at R&Q says "We are delighted to have completed this transaction with HIIG.  Whilst particularly complex, involving three HIIG operating companies and the need for regulatory approval, the parties along with Guy Carpenter have successfully achieved this under challenging market conditions. We look forward to the ongoing relationship created with HIIG through this transaction.  This deal is indicative of a growing trend amongst established insurers and reinsurers to work with the major legacy players to address reserve volatility.  Moreover, with the increasing pressure from the COVID-19 pandemic on carriers' capital and rating requirements we are seeing a significant increase in demand for R&Q's structured approach to assuming legacy liabilities.  The pipeline remains very healthy and we expect to finalise further deals in the coming weeks regardless of the continuing disruption caused by the COVID-19 lockdown."

Ends

Enquiries to:

Randall & Quilter Investment Holdings Ltd. www.rqih.com Paul Corver Tel: [phone] Numis Securities Limited Stuart Skinner (Nominated Adviser) Tel: [phone] Charles Farquhar (Broker) Tel: [phone] Shore Capital Stockbrokers Limited Stephane Auton/James Thomas Tel: [phone] FTI Consulting Edward Berry/Tom Blackwell HIIG Linda Madden Tel: [phone] LM [e-mail] Tel: 713 410n2869

Notes to Editors:

About R&Q

 The overall mission of the Bermuda based Group is to:

· Generate profits and capital extractions from expert management of legacy non-life insurance acquisitions/reinsurances, including in Lloyd's; and

· Grow commission income from its licensed (and rated) carriers in the US and EU/UK, writing niche and profitable program business, largely on behalf of highly rated reinsurers.

Our aim is to continue to grow sustainable profit streams to support our business model and increase book value and cash distributions to shareholders.

The Group was founded by Ken Randall and Alan Quilter in 1991.

Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94

Website: www.rqih.com

 

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