R&Q sees profits soar in 2017
Randall & Quilter Investment Holding (R&Q) has reported a 2017 pre-tax profit of £23.5 million, almost triple the £8.5 million it made over 2016.
The company reported an operating profit of £27.9 million for the year, again substantially up on the £10.4 million it made the previous year.
According to R&Q over 2017 it delivered on its strategy of creating a streamlined and focused business centred around two core offerings: legacy acquisitions and program underwriting management.
Operational highlights for the year included the sale of R&Q’s Lloyd’s managing agency (November 2017) and Insurance Services businesses (completed January 2018) to allow the Group to focus on its chosen core business activities. In addition R&Q said that there had been an excellent contribution from 19 completed legacy transactions, with especially strong growth in North America.
2017 also saw two successful share offerings in the year raising a total of £65 million of new capital. According to the company all £47 million proceeds of funds raised in October 2017 have now been injected into R&Q’s US and European insurance companies, Accredited Surety & Casualty Company and R&Q Insurance (Malta).
“2017 was a year of transformation for Randall & Quilter as we refocussed and simplified the business around legacy acquisitions and insurance program underwriting management,” said Ken Randall, group chairman and chief executive officer.
“I am pleased to report that we have an excellent pipeline of new business in both program underwriting management and legacy acquisitions. 2017 saw a further increase in the profit contribution from legacy acquisitions. Program underwriting management business has been building steadily, especially towards the end of the year and we anticipate strong future profit growth from this business area, as commission earnings from new program launches gain momentum from the end of 2018 and beyond.
“As a Group we have always seized upon opportunities which inevitably come from market turbulence and this is certainly true today as we witness major upheavals in the global insurance industry - especially those arising out of the challenges posed by Brexit and the emergence of new technologies.
“We are progressing with the possible launches of a small number of “Fintech” program underwriting management initiatives and see long term growth potential through using our extensive insurance licences in the USA and Europe to deliver “disruptive” technologies to the market.”
Randall concluded: “In summary, I believe the business is in good shape. With a strong and energised management team, we are very well placed to develop and profit from the multiple opportunities in our chosen business segment.”