Non-life legacy insurance investor Randall & Quilter has announced the completion of its loss portfolio transfer from Houston International Insurance Group (HIIG).
The transfer provides reinsurance protection and limited adverse development cover for around $95 million of net reserves of three companies in HIIG – Houston Specialty Insurance Company, Imperium Insurance and Great Midwest.
The reserves relate to the companies’ 2017 and prior policy years for certain portfolios.
Peter B. Smith, President of HIIG said, “We are pleased to have entered into a partnership with R&Q with this meaningful transaction. Combined with our recent equity capital raise and strong talent additions, HIIG is on a solid path towards the top tier of specialty carriers.”
Paul Corver, Group Head of M&A at R&Q added, “We are delighted to have completed this transaction with HIIG. Whilst particularly complex, involving three HIIG operating companies and the need for regulatory approval, the parties along with Guy Carpenter have successfully achieved this under challenging market conditions.
“We look forward to the ongoing relationship created with HIIG through this transaction.
“This deal is indicative of a growing trend amongst established insurers and reinsurers to work with the major legacy players to address reserve volatility.
“Moreover, with the increasing pressure from the COVID-19 pandemic on carriers’ capital and rating requirements we are seeing a significant increase in demand for R&Q’s structured approach to assuming legacy liabilities.
“The pipeline remains very healthy and we expect to finalise further deals in the coming weeks regardless of the continuing disruption caused by the COVID-19 lockdown.”
