Randall & Quilter Investment Holdings Ltd. (R&Q) is set to grow its Florida domiciled U.S. domestic insurer Accredited Surety and Casualty Company, Inc. with the help of backing from Lloyd’s of London and global reinsurance players.
Today, R&Q has announced the completion of an arrangement with Cinium Financial Services Corp., a company that specialises in offering surety bonds to small and mid-size companies in the “non-standard” surety market.
Cinium will write business through Accredited Surety and Casualty (ASC), which is set to retain a small percentage of the business, alongside A rated sources of reinsurance capacity.
R&Q, which specialises in acquisitions, run-off, legacy and other niche re/insurance transactions or investments, acquired Accredited Surety and Casualty in November 2014 as part of its strategy to underwrite admitted business in the United States.
Reinsurance will play a key role in enabling R&Q to grow ASC, offering a way for reinsurers and Lloyd’s players (perhaps third-party capital too) to access U.S. domestic market business through the R&Q platform.
Ken Randall Chairman and Chief Executive Officer (CEO) of R&Q, explained; “We have successfully launched the first phase of our plan to broaden the business model for Accredited, which was acquired by the Group at the end of 2014. Accredited is authorised to underwrite a wide range of domestic insurance business across the USA.
“With the support of a number of highly rated domestic, Lloyd’s and international reinsurers, our aim is to generate sustainable service fee income for the group. I believe that Accredited has the potential to become a meaningful source of income for Lloyd’s and other international reinsurers who are not authorised to underwrite such domestic USA business. We see significant growth potential for Accredited and we expect to be making further announcements in due course, as and when specific transactions have been concluded.”