Randall & Quilter Investment Holdings Ltd. (R&Q) said this morning that it has entered into an agreement with RenaissanceRe Syndicate Management Limited (RSML) that will see it reinsuring Casualty reserves from the 2009 to 2017 years of account for RenRe’s Lloyd’s Syndicate 1458.
This arrangement had been out for tender to most of the legacy and run-off market, as reinsurer RenaissanceRe looked for a solution to end its liabilities from prior years of casualty underwriting.
R&Q has now won the tender, against competition from the other legacy market major players and will provide the reinsurance to RenRe’s syndicate as a loss portfolio transfer, attaching at 70% of held reserves, with an additional limit for adverse development cover.
As a result, RSML will be able to retain control of the claims handling process for the business, while R&Q provides it with balance-sheet protection in the event of any significant deterioration from the book’s modelled loss picks.
R&Q’s Lloyd’s run-off vehicle, Syndicate 1110, will provide the protection, as the syndicate has permission to execute legacy deals by way of Reinsurance to Close (RITC) and retroactive reinsurance.
TigerRisk Partners acted as the reinsurance Broker for this transaction.
Ken Randall, Chairman of R&Q, commented: “We are pleased to have worked with TigerRisk Partners and RenaissanceRe Syndicate Management Limited on this legacy solution. This transaction is another example of R&Q helping strong-performing Syndicates to remove reserve risk, allowing them to release capital which they can use to take advantage of the positive rating environment. The evolution of the legacy market continues apace, and we are seeing a pipeline of such structured solutions both for Lloyd’s syndicates and across the wider insurance market.”
