Final results for the year ended 31st December 2019

1 June, 2020

The Board of Randall & Quilter Investment Holdings Ltd. (AIM-RQIH), the leading non-life global specialty insurance company focusing on the Program Management and Legacy Insurance businesses, announces the Group’s final results for the year ended 31 December 2019.

2019 Highlights

Group

• Pre-Tax Profit up 180% to £40.1 million (2018: £14.3 million) (continuing operations)
• After-Tax Profit up 399% to £38.9 million (2018: £7.8 million)
• 13% growth in Net Asset Value per Share (including return to shareholders) (2018: 12%)
• Net Asset Value per Share of 148.1p (2018: 139.4p)
• Earnings per Share (basic) up 269% to 21.4p (2018: 5.8p)
• Bonus shares to be issued of 1 share for every 22 existing shares which brings the total distribution to approximately 9.9p per share (2018: 9.2p)
• £103.4 million of equity raised in March 2019

Program Management

• 147% increase in Gross Written Premium to $369.3 million (2018: $149.4 million)
• 148% growth in Economic Commission Revenue to $12.9 million (2018: $5.2 million)
• Achieved Economic EBITDA of $1.8 million (2018: loss of $3.8 million)
• Establishment of a “Brexit” solution through the creation of a UK branch of our Malta program insurer

Legacy

• 31% growth in Gross Reserves (2018: decline of 15%)
• Operating Return on Capital of 19.6% (2018: 16.7%)
• 16 transactions completed, including the largest acquisition to date with the purchase of Global Re at a cost of $80.5 million
• Appointed Mike Walker as Head of Legacy Operations

Post Period End

• $100 million of new capital raised in May 2020 to fund further growth
• In 2020, announced William Spiegel as Executive Director and Deputy Group Chairman in January, Tom Solomon as Executive Director and Chief Financial Officer and Eamonn Flanagan as Non-Executive Director in May, as part of succession planning

Outlook and Covid-19

• Business continuity plan successfully implemented
• Limited impact on existing business and investment portfolio from Covid-19
• Existing strong pipeline of opportunities in both Program Management and Legacy, enhanced by “hard” market created by Covid-19

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