View this article online: https://www.insurancejournal.com/news/international/2018/01/16/477211.htm
Randall & Quilter Investment Holdings Ltd. (R&Q) announced the sale of its Insurance Services and Captive Management Operations to Davies Group, a London-based operations management, consultancy and digital solutions provider.
The transaction involves the sale of the entire share capital of JMD Specialist Insurance Services Group Ltd. and its subsidiaries, R&Quiem Ltd., John Heath & Co. Ltd. and AM Associates Insurance Services Ltd. as well as Randall & Quilter Bermuda Holdings Ltd. and its Quest subsidiaries.
The agreed valuation of the businesses being sold is £20 million (US$27.6 million). Net cash consideration payable by Davies, after deducting net debt applicable to the businesses, is approximately £18.6 million ($25.6 million), said R&Q in a statement.
The sale follows R&Q’s previously announced decision to simplify the group’s operations to focus on its core, high growth activities which include:
The net proceeds of the sale will be deployed to help finance the growing legacy transaction pipeline, especially in the U.S. and Lloyd’s, and to generate commission income from the use of accredited and Malta’s direct licenses, the company added.
“The sale of our Insurance Services and Captive Management operations is a significant milestone in the group’s decision to simplify its operations and focus on our core areas of legacy acquisitions and the writing of quality program business, which is mostly reinsured to highly rated reinsurers,” commented Ken Randall, R&Q chairman and CEO.
“The Insurance Services and Captive Management operations are market leading, well-developed and scalable and we are confident the operations will prosper under the stewardship of Davies,” he added. “As we have progressed discussions with Davies we have developed a good working relationship and hope to be able to develop business between our two organiztions in the future.”
He said the sale will enable R&Q to focus on its core operations “where we remain excited about the growth potential in the current year and beyond….”
Source: Randall & Quilter Investment Holdings Ltd.