Roosevelt Road Capital Partners (RRCP) has reached an agreement to buy back R&Q Insurance Holdings’ 40% stake in New York-based MGA Tradesman.
R&Q announced this morning that the total consideration is $47 million, subject to post-closing adjustments based on the 2022 audited financials of Tradesman.
Approximately $41 million of the consideration will be paid in cash upon closing of the transaction, while the $6 million will be paid in the form of a 2-year promissory note.
R&Q acquired its interest in Tradesman when it merged Roosevelt Road Re into RRCP, Tradesman’s majority shareholder on 1 September 2020.
Following the completion of the transaction, which is expected sometime in the first quarter of 2023, RRCP will own 100% of both Tradesman and Roosevelt Road Re.
Daniel Hickey Jr, CEO of Tradesman and Roosevelt Road Re, commented, “We are grateful to both the past and present leadership of R&Q and Accredited Surety and Casualty Company, Inc., for supporting our programs in the past 5+ years.
“We have excelled and realized our growth targets. The next part of RRCP’s compelling journey requires looking forward to achieving our 5-year targets under this energized ownership structure.”
Hickey Jr continued, “As we look to expand our product offerings into new geographic territories alongside our capacity partnerships (Clear Blue Insurance Group, Accredited, and Knight Insurance Company), Tradesman will continue to differentiate with integrated ‘best in class’ underwriting, claims management and loss control.”
RRCP notes that Tradesman has the capacity to write +$340m in 2023, establishing itself as a leading solution for New York and New Jersey General Contractors’ General liability, Event Liability, Assisted Living programs and Habitational General Liability.
Hickey Jr concluded, “Roosevelt Road Capital Partners is committed to remaining a long-term provider of casualty insurance products to our targeted industry niches.
“RRCP intends to remain and grow our market expertise through constant reinvestment in our company. We have responsible and dynamic expansion plans which will take RRCP to new heights.”
