R&Q acquires US captive; transfers Bermuda staff
Randall & Quilter has completed its acquisition of United States Sports Insurance Company (USSIC), a wholly owned captive insurer of USA Swimming (USAS). As part of the acquisition, the directors of USSIC will be appointed from R&Q's exisiting staff in the US and Bermuda.
USSIC, which is in run-off, had a total net asset value of $5.3 million as at June 30, 2016, adjusted for a pre-acquisition dividend. The company generated comprehensive income of $972,000 for the year ended December 31, 2015. To acquire USSIC, the total consideration paid by R&Q was $2.1 million financed by a draw down on the group’s revolving credit facility with the Royal Bank of Scotland.
USSIC was incorporated originally under the laws of Barbados in 1988 and was re-domiciled in Washington DC, effective December 31, 2014. The company reinsured a US insurance company which provided coverage to USA Swimming Inc., its local swimming committees and clubs throughout the US from 1988 to December 31, 2013.
“We are delighted to complete the acquisition of USSIC. This transaction demonstrates our ongoing commitment to continue to acquire legacy insurance assets and also continues to expand our acquisition activity in the North America, Bermuda and the Caribbean region,” said Ken Randall, chairman and chief executive officer of R&Q.