Non-life specialty insurer R&Q Insurance Holdings has signed a Loss Portfolio Transfer (LPT) reinsurance agreement with a UK motor insurer covering net reserves of around $80 million.
According to R&Q, the transaction is subject to regulatory approvals and other conditions of closing.
Huw Battrick, Co-Head of Legacy M&A at R&Q, commented, “We are pleased to announce this transaction for R&Q Legacy and work to put in place a reinsurance solution that supports our client with its ongoing business objectives.”
Parri Spector, Co-Head of Legacy M&A at R&Q, added, “We are seeing increased interest in legacy insurance solutions for UK motor as incumbents look to manage the current inflationary claims environment in a highly competitive marketplace and, given R&Q’s strong in-house expertise, see this as an area of opportunity.
“This transaction increases our reserves under management, and we continue to have a strong pipeline for R&Q Legacy with c. $900m of identified reserves across Europe, North America and Bermuda consisting of both direct and brokered transactions.”
In other R&Q news, on October 20th, the company confirmed that it had entered into a conditional agreement to sell its Accredited program management business to private equity investment manager Onex Corporation.
This was anticipated, as R&Q had previously stated it was in advanced talks regarding a potential sale.
The agreement that has been reached will see Onex Corporation buying 100% of the equity interest in Randall & Quilter America Holding Inc., which is the holding company of Accredited.
Closing the deal is conditional on R&Q shareholder approval, regulatory approval and customary consents from certain R&Q debt providers, the firm explained.
