R&Q sells off Bermuda holdings in operations rationalisation

Randall & Quilter Investment Holdings is selling off its insurance services and captive management operations, including some of its Bermuda holdings, to operations management, consultancy and digital solutions provider Davies Group.

The deal involves the sale of the entire share capital of JMD Specialist Insurance Services Group and its subsidiaries, R&Quiem, John Heath & Company and AM Associates Insurance Services as well as Randall & Quilter Bermuda Holdings and its Quest subsidiaries.

In a statement R&Q said that the agreed valuation of the businesses being sold is £20m and that the net cash consideration payable by Davies, after deducting net debt applicable to the businesses, is approximately £18.6m.

R&Q said that the sale came from its plan to simplify its operations to focus on its core, high growth activities which include the acquisition/assumption of run-off portfolios and the use of its licensed companies in the US and EU as conduits for niche and profitable books of insurance business, primarily to highly rated reinsurers.

According to R&Q, the net proceeds of the sale will be deployed to help finance the growing legacy transaction pipeline, especially in the US and Lloyd’s, and to generate commission income from the use of Accredited and Malta’s direct licenses.

“The sale of our insurance services and captive management operations is a significant milestone in the group's decision to simplify its operations and focus on our core areas of legacy acquisitions and the writing of quality programme business, which is mostly reinsured to highly rated reinsurers,” said Ken Randall, chairman and chief executive officer of R&Q.

“The insurance services and captive management operations are market leading, well-developed and scalable and we are confident the operations will prosper under the stewardship of Davies. As we have progressed discussions with Davies we have developed a good working relationship and hope to be able to develop business between our two organisations in the future.

“The sale will enable us to focus further on our core operations where we remain excited about the growth potential in the current year and beyond, underpinning the group’s financial performance and distribution policy.”