R&Q acquires FAIR from Validus

Bermuda-domiciled R&Q has acquired Cypriot re/insurer, FAIR from Validus for $24.1 million in its biggest deal in five years. FAIR has been in run-off since 2010.

FAIR—Flagstone Alliance Insurance and Reinsurance—commenced underwriting in 2000, but went into run-off in 2010, with net reserves of primarily international reinsurance business to the tune of approximately $16.4 million.

R&Q is paying cash for the entity and is getting FAIR at a discount. FAIR’s estimated net asset value is around $28.1 million. The business will be managed by R&Q Insurance Services and all assets will be held in UK banks and custodian accounts.

Commenting on the announcement, Ken Randall, CEO of Randall & Quilter, said: “We are delighted to have acquired FAIR from the Validus Group after an extensive due diligence process. FAIR is our largest run-off acquisition since 2006. This purchase demonstrates our commitment to seeking out legacy portfolios which meet our return and pay-back criteria. We have reported that our pipeline is active and that in addition to further captive related acquisition opportunities, we are seeing some larger sized legacy opportunities. FAIR is proof of this and we are pleased that our recent £25m fund raise has enabled us to conclude this deal. Through customary restructuring, we expect to make this acquisition both capital and operationally efficient for the Group over the near term.”