R&Q appoints restructuring experts as directors
Bermuda-based R&Q Insurance Holdings has appointed two new directors, both experienced in restructuring companies, to its board as it continues to move towards selling its subsidiary Accredited.
R&Q said last Friday it expected the sale of R&Q to take place in this quarter and also warned it would take a “significant pre-tax loss” for the 2023 year.
Its shares plummeted 45% on London's AIM exchange following the news and closed trading on Friday at £3.00.
The sale to Onex Corporation was delayed while the Bermuda Monetary Authority completed an actuarial review of the reserves R&Q would hold after the sale.
Stephen Welch and Lawrence Hirsh became non-executive directors, effective on Wednesday.
Welch is currently a director of Telegraph Media Group, the owners of the Telegraph newspaper and The Spectator magazine, having been appointed by its receivers with the task of steering the media business through a sale, which is still ongoing.
R&Q said Welch has extensive experience managing complex corporate issues, including several restructuring situations of regulated financial services and insurance businesses. Welch was a partner at McGrathNicol and a senior managing director at FTI Consulting.
Hirsh was previously a managing director for Alvarez & Marsal, leading its Southeastern US corporate restructuring practice, and a partner at Arthur Andersen. As both an advisor and during his career, Hirsh has a track-record of helping drive operational improvements and cost reduction programmes.
Jeff Hayman, chairman of R&Q, said: “Stephen and Lawrence both bring relevant additional experience to the Board, in particular with regards to our priorities of reducing debt and improving the efficiency and expense base of the go-forward business.
“As we continue to work towards completing the sale of Accredited, these appointments also support our ongoing discussions with lenders to achieve their necessary approvals.”
R&Q’s sale of Accredited to Onex remains on hold while regulatory and financial hurdles are overcome.
It said in January it remains hopeful that appropriate agreements can be reached with all of its lending banks, credit providers and other finance providers to enable the sale to take place.
R&Q expects net proceeds of $300 million from the sale which intends to use to support its remaining 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 new top executives when the deal closes.
The Bermuda Monetary Authority told Accredited in December to put on hold any external legacy transactions until it completed a review.
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