Q2 Program Management Update

RNS Number : 2531W

Randall & Quilter Inv Hldgs Ltd

17 August 2020

 

Randall & Quilter Investment Holdings Ltd.

Q2 Program Management Update

17 August 2020

Randall & Quilter Investment Holdings Ltd. (AIM-RQIH) ("R&Q"), the leading non-life global specialty insurance company focusing on Program Management and Legacy Insurance businesses, announces a performance update for its Program Management business, for the six months ended 30 June 2020.

Highlights

· Contracted Premium of $924.5 million (H1 2019: $431.6 million), a 114% increase

· Gross Written Premium of $247.2 million (H1 2019: $172.9 million), a 43% increase

· Economic Commission Revenue¹ of $10.7 million (H1 2019: $5.7 million), an 88% increase

· Addition of 10 new programs bringing the total number of active programs to 36 (H1 2019: 26)

· Subsequent to the end of Q2 2020, four new programs were signed with Contracted Premium of approximately $200 million, all of which are expected to begin generating Gross Written Premium shortly

· Expected to enter the US Excess & Surplus ("E&S") Program Management market in Q4 2020

Commenting on the Program Management results, Alan Quilter, Group Chief Executive Officer, said:

"In the first half of 2020, our Program Management business, trading under the Accredited banner, continued to grow strongly. Importantly, this business has significant built-in growth through the 36 existing programs and 34 different distribution partners with whom we have secured contracts as of the end of Q2 2020. In addition, the four new programs we signed post the half year, are expected to generate in excess of $200 million of annual recurring Gross Written Premium when they achieve scale over the next 18 months.

We continue to see strong demand from new origination partners as existing insurance capacity faces capital challenges given the magnitude of the insured losses from Covid 19. Moreover, due to current market conditions, we expect to enter the US E&S Program Management market, a large addressable market in which we do not presently compete, in Q4 2020, accelerating our original plans.  This launch will see Accredited achieve its strategic objective of being a comprehensive program management solutions provider in all its major markets."

R&Q will provide a further update on its Program Management business for the nine months ended 30 September 2020 in the fourth quarter.

1: Economic Commission Revenue represents the Commission Revenue from insurance policies already bound (written), regardless of the length of the underlying policy period (earned). We believe Economic Commission Revenue is a more appropriate measure of the revenue of the business during periods of high growth, due to larger than normal gap between Gross Written and Gross Earned (IFRS) Premium, and the corresponding fees.

Ends

  Notes to Editors:

Randall & Quilter Investment Holdings Ltd.
Ken Randall William Spiegel	Tel: [phone] Tel: [phone]
Numis Securities Limited (Nominated Adviser)
Stuart Skinner / Huw Jeremy	Tel: [phone]
Charles Farquhar	Tel: [phone]
Shore Capital Stockbrokers Limited
Stephane Auton James Thomas	Tel: [phone]
FTI Consulting Edward Berry Tom Blackwell	Tel: [phone]

About Accredited

Accredited is R&Q's Program Management business. Operating in the US, UK and Europe, Accredited is the only program carrier that has an AM Best A- credit rating in all these markets. In the US Accredited is licensed in all 50 states and in the UK/Europe it is licensed to write all classes of non-life business.

Accredited has also established a fully authorised UK branch to facilitate continued access to the large UK market, post Brexit. This branch will get the full benefit of Accredited Malta's A- rating from AM Best.

Accredited's (US) Financial Strength Category increased in 2019 to an AM Best category IX making it one of the highest rated program managers in the US and providing an important support for the business' continued growth.

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.

For the financial year ended 31 December 2019 R&Q reported pre-tax profits of over £40 million.

Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94

Website : www.rqih.com  

 

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