ICDC, Ltd., the wholly owned Vermont-based subsidiary of Randall & Quilter Investment Holdings Ltd. (R&Q), has entered into a stock purchase agreement to acquire NationsBuilders Insurance Company (NBIC).
The transaction, which is subject to customary closing conditions and regulatory approvals, sees the R&Q subsidiary acquire a Washington-based captive from NationsBuilders Insurance Services (NBIS).
NBIC participated as a reinsurer of the business underwritten by NBIS on casualty exposures, including workers’ compensation, general liability, auto liability, and inland marine until it went into run-off in 2019. The sale of NBIC to R&Q provides full finality for its parent, NBIS.
Group Head of M&A at R&Q, Paul Corver, said: “We are delighted to have agreed terms on which we will acquire NBIC. Whilst this transaction remains subject to regulatory approval and normal closing conditions, our track record in executing captive acquisitions in the U.S., with our Vermont-based acquisition vehicle gives counterparties confidence in our ability to complete transactions in a timely manner.
“We have enjoyed working with NBIS and Piper Sandler to find a finality solution for NBIS’s captive operations. More broadly, we continue to see a growing number of opportunities with respect to captive insurers as captive owners seek full finality solutions to free trapped capital – a trend we expect to continue regardless of the continuing disruption caused by the COVID-19 lockdown.”
