R&Q makes another acquisition and warns more to come

Randall & Quilter II Holdings, a subsidiary of Randall & Quilter Investment Holdings, has signed an agreement to acquire the entire issued share capital of Sandell Holdings, including its subsidiary Sandell Re.

The deal follows on from its recent acquisition of Global Re, and Ken Randall, executive chairman of R&Q, indicated the company expected more would follow.

“R&Q takes pride in providing finality for owners and we expect to announce a number of additional acquisitions during the rest of this year,” he said.

Sandell Re, which had net technical reserves of $48.3m as at 31 December 2018, was incorporated in Bermuda in 2014. It was licensed as a Class 3A segregated account company by the Bermuda Monetary Authority (BMA) in February 2015, to write all classes of general business insurance and reinsurance.

The cash consideration payable at closing by R&Q is $25 million, with further amounts payable subject to certain conditions being met. This represents a discount to the company’s net assets, which stood at $40.8 million at the close of 2018. The residual liabilities comprise primarily of contractor’s liability exposures arising in the US.

In the year to 31 December 2018 Sandell Holding recorded a loss of $2.7m.

The deal is subject to regulatory approval from the BMA.