R&Q sells stake in MGA TPM Holdings USA

Bermuda-based insurer R&Q Insurance has completed the sale of its 40% minority holding in TPM Holdings USA, a New York-based Managing General Agent (MGA).

The stake has been acquired by Roosevelt Road Capital Partners, the controlling 60% shareholder of Tradesman, which is majority owned by Daniel Hickey, the CEO of Tradesman.

The total consideration is $47 million, subject to post-closing adjustments based on the 2022 audited financials of Tradesman.

The firm said it would use the proceeds from the transaction for general corporate purposes and to pay down debt.

R&Q suggests that it will have almost quadruples its initial investment of $25 million from the acquisition of Sandell Re in 2019, which was subsequently converted into a 40% stake in Tradesman, including $46 million of dividends received to date.