R&Q posts $127m loss for 2021

Randall & Quilter Investment Holdings has reported a loss of over $127 million for fiscal year 2021, mainly due to a $90-million pre-tax, non-cash charge. The loss compares with a profit of nearly $38 million in 2020.

The company’s programme management sector reported a gross written premium (GWP) of $1 billion, a 92% year-on-year rise from $539 million.

“2021 was a significant year for R&Q as we outlined an ambitious five-year strategy that will see us transform into a fee-based, capital lighter business,” William Spiegel, executive chairman of R&Q, said.

“We have already taken major strides in delivering against this strategy including the launch of Gibson Re, ongoing momentum in programme management and a number of organisational improvements which will make us more efficient, strengthen our culture and enhance our risk management. We also have under way a series of projects as part of our goal to be a more data-driven business.”

He noted that programme management saw pre-tax operating profit increase nearly fivefold to $21 million, adding he expected it to make $1.75 billion in GWP this year.

Its legacy insurance unit completed 15 deals with gross reserves acquired of $735 million.

“With the launch of Gibson Re, legacy insurance is in the process of moving to a recurring fee model and at year-end 2021 had reserves under management of $417 million on which we will earn a 4.25 per cent annual fee, alongside potential performance fees,” Spiegel said.