Randall & Quilter Investment Holdings Ltd. (R&Q) has announced that its wholly owned subsidiary, Accredited Insurance (Europe) Limited, has agreed to acquire the entire issued share capital of MPS Risk Solutions Limited (MPSRS) from its owners, The Medical Protection Society Limited (MPS), for £16 million.
MPSRS was formed in January 2004 as a UK authorised insurer subsidiary of MPS, but ceased active underwriting in 2012.
The residual liabilities comprise primarily of Professional Liability exposures arising in the UK, and the company had gross claim reserves of £2.4 million at 31 December 2017.
MPSRS also recorded a profit before tax of £2.3 million in the year to 31 December 2017, R&Q said.
R&Q’s £16 million consideration will be paid in cash from existing resources, and represents a small discount to MPSRS’s net assets of £17.8 million.
“We are delighted to have agreed terms to acquire MPSRS,” said Ken Randall, Chairman and Chief Executive Officer (CEO) of R&Q. “R&Q takes pride in assisting companies to dispose of companies in run-off and providing finality for the owners. We expect to announce a number of additional acquisitions before year-end.”
The company specified that the acquisition by Accredited (previously R&Q Insurance (Malta) Limited) will remain subject to regulatory approval from the MFSA, the PRA and the FCA.