Prospects for an independent R&Q
On 1 April 2022 R&Q announced a recommended (175p/share) acquisition by its major shareholder, Brickell PC Insurance Holdings LLC (Brickell). The price represented 1.8x tangible net asset value and a 20% premium to the unaffected market price. That was accompanied by news of Brickell’s commitment to provide US$100m of new equity. This transaction was prompted by the results of in-depth review of the group’s legacy insurance portfolio initiated by new management in Q4 2021.This reflects the need for this subsidiary, acquired 15 years ago, to provide liquidity to meet anticipated claims which have accelerated above expectations. The impairment is not related to either of its two core businesses nor any of the Accredited companies, which are capitalised above target levels.
The group reported that it continues its transformational into a primarily recurring fee-based business by 2024, but the uncertainty related to an unsuccessful takeover bid has adversely affected the shares. The business’s underlying strengths remain intact, subject to successful and timely completion of the fundraising.
Randall & Quilter Investment Holdings is a holding and investment company. Through its subsidiaries, Co. acts as owners and managers of insurance companies, live and in run-off, as underwriting managers for insurers, as participators and managers of Lloyd's syndicates, as purchasers of insurance receivables and as service providers to the non-life insurance market. Co.'s has 3 segments: insurance investments which acquires and assumes legacy portfolios, insurance debt and provides capital support to Lloyd's syndicates; insurance services which provides insurance related services; and underwriting management, which provides management to Lloyd's syndicates and operates underwriting entities.
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