R&Q shareholders approve $465m sale of Accredited
R&Q Insurance Holdings shareholders have approved the sale of the company’s Accredited programme management business to a Canadian investment company for $465 million.
The approval was by no means unanimous, with 55% of voting shareholders supporting the sale and 44% opposing the sale to Onex Corp. Almost 75% of the company’s issued shares were voted.
The sale to Onex also remains on hold while regulatory and financial hurdles are overcome.
Bermuda-based R&Q said yesterday: “Notwithstanding shareholder approval, the sale remains conditional on a number of other matters.
“R&Q continues to work expediently towards satisfying all other remaining conditions to the Sale and remains hopeful that appropriate agreements can be reached with all of its lending banks, providers of credit and other finance providers to enable the sale to take place.
“Shareholders should note that there is no guarantee that all conditions to the sale will be satisfied (or waived, if applicable) or that all necessary agreements will be reached with all of the R&Q finance providers.
R&Q said the sale is expected to close late in the first quarter of 2024 or early in the second quarter. It expects to receive net proceeds of $300 million from the sale which it intends to use to support its legacy insurance business.
Chief executive officer William Spiegel and Thomas Solomon, chief financial officer, are expected to transfer to Accredited and R&Q will seek a new top executive when the deal closes.
The Bermuda Monetary Authority told R&Q in December to put on hold any external legacy insurance transactions until the regulator completes a review.
R&Q said it had been told to put on hold approval of any external legacy transactions to R&Q Re pending the review, including a loss portfolio transfer announced in October.
It has also been told to pause the redemption of $20 million worth of notes which were due to be redeemed.
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