Interim results for the 6 months ended 30 June 2016

5 September, 2016

The Board of Randall & Quilter (AIM:RQIH), the specialist non-life insurance investor, service provider and underwriting manager, announces the Group’s interim results for the 6 months ended 30 June 2016.

Highlights:

• Pre-tax profit of £1.2m (H1 2015: loss of £4.5m)
• Additional FX gains of almost £5m in ‘Other Comprehensive Income’
• Positive movements in the Group’s run-off portfolios with net reserve releases of £6.2m (H1 2015: £4.3m), aided by commutation activity
• Goodwill on bargain purchase of £2.7m arising from three completed legacy acquisitions, mainly out of the Bermuda based M&A operation
• Continued strong performance in the UK operations of the Insurance Services Division, particularly broker run-off, binding authority management and premium credit control services
• An excellent investment return of 2.1% on the Group’s ‘free’ assets (H1 2015: 1.1%), due to duration related gains and favourable credit markets
• Successful expansion of Accredited’s P&C licences with our first new program now being written with several others in the near term pipeline
• Proposed Distributions per share maintained at 3.4p payable on or around 3 November 2016
• Book value per share excluding goodwill broadly flat at 98.1p (Dec 2015: 98.5p), after maintaining substantial distribution. This was a result of profitable trading and favourable currency movements, partially offset by a formulaic adjustment to the liability discount factor in the pension deficit due to falling long term gilt yields.

Ken Randall Chairman and Chief Executive Officer commented: “I am pleased to report that the Group delivered a significantly stronger performance during the first half of the year compared with 2015, especially when factoring in the additional c.£5m boost from FX gains, not taken through the Group’s pre-tax profit.

“The Group’s result is always heavily second half weighted and this year is no exception. Trading is expected to be strong during the remainder of the year, driven by an excellent pipeline of legacy acquisition and reinsurance deals.

“Full year profits are expected to be in line with market expectations and the outlook looks very promising, especially in the core legacy acquisition business, in Accredited through its development as a niche programme conduit and in UK services.”

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