Randall & Quilter Investment Holdings Ltd. (R&Q) has reached an agreement to raise its stake in Tradesman Program Managers, LLC, a New York-based Managing General Agent (MGA), from 35% to 40%.
R&Q acquired its stake in Tradesman Program Managers in August of last year through the merger of its wholly owned subsidiary, Sandell Re, with the MGA.
Under the terms of the latest arrangement, R&Q will divest its 35% in Roosevelt Road Re, Ltd., formerly called Sandell Re, to Roosevelt Road Capital Partners, Tradesman’s majority shareholder.
Roosevelt Road Re participates as part of a broad reinsurance panel on the business underwritten by Tradesman. R&Q adds that its divestiture is in line with its limited appetite for live underwriting exposure and is subject to regulatory approval by the Bermuda Monetary Authority (BMA).
Once this latest deal completes, R&Q will own 40% of Tradesman with Roosevelt Road Capital Partners owning 60% of Tradesman and 100% of Roosevelt Road Re.
Tradesman underwrites Contractors’ General Liability, Worker’s Compensation, and Habitational General Liability insurance via insurance policies which are issued by R&Q’s Accredited Surety and Casualty Company, Inc.
William Spiegel, Executive Deputy Chairman at R&Q, said: “We are delighted to have increased our interest in Tradesman, which is a dynamic and fast-growing MGA offering a strong and expanding product range to its clients. In addition to our two core business lines, Program Management and Legacy Insurance, we believe selective MGA investments allows us to access capital light fee income, in addition to strengthening relationships with our program partners.
“Through our Accredited platform, we have supported Tradesman’s continued success since its creation in 2017, and generated $6.7m of commissions on premium written by Tradesman in 2020. We look forward to the continuation of that partnership through our increased interest.”
Daniel Hickey, Jr., the Chief Executive Officer (CEO) of Tradesman and RRRe, added: “We’re excited to have R&Q as an engaged partner in the continued growth of Tradesman’s programs and this transaction gives R&Q an increased interest in Tradesman, while allowing RRCP to further develop RRRe into a significant reinsurance entity.
“The increased stake in Tradesman by R&Q further aligns our partnership with Accredited, our program partner, while our ownership of RRRe allows us to increase our risk-taking positions and further grow the Tradesman business.”
