9 September, 2016
R&Q is pleased to announce that, subject to regulatory approval, it has agreed to acquire RLGI, a UK non-life insurance company in run-off, from The Royal London Mutual Insurance Society Limited.
RLGI underwrote non-life insurance from 1985 to 1999; the remaining liabilities relate to employers’ liability originating from cover provided to SMEs. The agreed purchase price is £11.9m and represents a small discount to RLGI’s net assets of £13.5m as at year-end 2015. The transaction will be financed from the Group’s bank facility and cash at hand. In the year ended 31 December 2015 RLGI reported a profit before tax of £0.8m.
Once regulatory approval has been given to the acquisition, it is planned to transfer the business to R&Q Insurance (Malta) Limited under Part VII of the 2000 Financial Services and Markets Act. R&Q will target to complete this by the end of 2017.
Commenting on today’s announcement, Ken Randall, Chairman and Chief Executive Officer of R&Q, said: “We are delighted to have reached agreement to acquire RLGI and this continues to demonstrate the ability of R&Q to provide exit solutions to owners of insurance companies in run-off. This will be the second transaction where R&Q has provided non-life legacy solutions to the life and pensions sector. We remain excited about our legacy acquisition pipeline.”
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