Trading Update

RNS Number : 6420Y

Randall & Quilter Inv Hldgs PLC

05 March 2012

 



5 March 2012

Randall & Quilter Investment Holdings plc

Trading Update

The Board of Randall & Quilter (AIM: RQIH), the specialist non-life insurance investor, service provider and underwriting manager, announces that it expects that the Group's adjusted pre-tax result for the year ending 31 December 2011, to be at the top end of current market expectations. 

The adjustment to the pre-tax profits refers to the exclusion of a likely total impairment in respect of the goodwill carried in respect of the Insurance Investments Division's US Cash-Generating Unit ('IID US unit'). This anticipated impairment has been brought about purely by an unprecedented reduction in US investment returns with 10 year US Treasury rates of c. 2%, The impairment is not due to any change in the expected trading performance of any of the Group's operating companies.

Further information on the goodwill carried in the IID US Unit and its sensitivity to long term investment returns can be found in the Group's annual report for the year to 31 December 2010. The impairment is a non-cash item and will not affect the Group's tangible net asset value per share.

The Group's progressive distribution policy is also unaffected and the total distributions to shareholders in respect of the 2011 financial year will be in line with expectations.

The Board remains confident in the positive outlook for the Group during 2012.

The Group's preliminary results will be announced on 19 April 2012.

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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] / 7297

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 ten 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, Gibraltar and Norway; and

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

 

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