R&Q raises up to $60m from shareholder
Bermuda-based R&Q Insurance Holdings has raised up to $60 million from investment funds affiliated with one of its largest shareholders, Scopia Capital Management.
R&G also said it has received regualtory approvals to separate its programme management business known as Accredited from its legacy insurance business which trades as R&Q Legacy.
"Accredited and R&Q Legacy will now operate under two separate holding companies within the Group. This separation is part of the requirement for Accredited to receive its own separate subgroup financial strength rating from AM Best," R&Q said.
As announced in April, R&Q said it continues to explore strategic transactions with third parties as part of the separation to enable Accredited to operate independently.
R&Q said: "A process is underway for the potential sale of Accredited with interest expressed from a number of parties. In addition, a variety of strategic alternatives are being explored in relation to R&Q Legacy.
"The proceeds from the R&Q PS Investment will be used to increase the capitalization of R&Q Legacy, which is providing reinsurance support for completed legacy transactions originated by Accredited. Proceeds will also be used for general corporate purposes due to Accredited no longer paying intra-group dividends to R&Q as part of a requirement to secure its financial strength rating from AM Best."
R&Q also said Accredited has seen a 34% increases to $500 million in first quarter gross writen premium while programme fee Income rose 24% to $22 million.
Chief executive officer William Spiegel (pictured) said: “This additional capital, alongside our completed internal reorganisation, means Accredited and R&Q Legacy can be established as stand-alone entities within R&Q.
"2023 has seen Accredited continue its strong momentum and leadership position in the program market, achieving a record first quarter in terms of GWP and Fee Income. For the 12 months ended 31 March 2023, Accredited’s GWP is greater than $2.0 billion, an increase of more than $200 million from year end 2022 where we reported GWP of $1.8 billion.
"We are currently working very closely with AM Best to secure a subgroup rating for Accredited and have completed the key reorganisational requirements.
"R&Q Legacy has seen three transactions signed or completed this year and has a strong pipeline of transactions to grow Reserves Under Management beyond $1.0 billion. R&Q Legacy continues to focus its efforts on its key areas of strength, medium sized legacy transactions, while exploring potential further corporate liability opportunities."
