R&Q buys captive subsidiary from Old Mutual

Randall & Quilter Investment Holdings (R&Q) has acquired Constantia Insurance Company (Guernsey), a captive company currently in run-off, from Old Mutual.

The acquisition price is £1.5 million and represents a small discount to Constantia’s pro-forma net assets of £3.4 million.  According to R&Q the transaction will be settled in cash and financed from the group’s existing resources.  In the year ended 31 December 2016 Constantia reported a loss before tax of £2.4 million.

Constantia wrote professional indemnity & crime programme insurance to various Old Mutual Group companies from 2003 to 30 April 2017.

Regulatory approval for the acquisition has been given and Constantia will be amalgamated into Capstan Insurance Company, R&Q’s Guernsey-based consolidation vehicle, subject to necessary consents.

“We are delighted to have acquired Constantia and this continues to demonstrate the ability of R&Q to provide exit solutions for end of life captive insurance companies,” said Ken Randall, chairman and chief executive officer of R&Q.  “This continues our excellent track record of acquiring captive insurance companies and we remain excited about our legacy acquisition pipeline.”