Randall & Quilter Inv Hldgs Ltd Disposal (8067B)
15 January 2018 - 6:00PM
UK Regulatory
TIDMRQIH
RNS Number : 8067B
Randall & Quilter Inv Hldgs Ltd
15 January 2018
15 January 2018
Randall & Quilter Investment Holdings Ltd.
Randall & Quilter sells its Insurance Services and Captive
Management operations
to Davies Group
Randall & Quilter Investment Holdings Ltd. ('R&Q' or
'the Group') is pleased to announce the sale of its Insurance
Services and Captive Management Operations to Davies Group
("Davies") a leading operations management, consultancy and digital
solutions provider. The transaction involves the sale of the entire
share capital of JMD Specialist Insurance Services Group Limited
and its subsidiaries, R&Quiem Limited, John Heath & Company
Limited and AM Associates Insurance Services Limited as well as
Randall & Quilter Bermuda Holdings Limited and its Quest
subsidiaries.
The sale follows the previously announced decision to simplify
the Group's operations to focus on its core, high growth activities
which include: (i) the acquisition/assumption of run-off
portfolios; and (ii) the use of its licensed companies in the US
and EU as conduits for niche and profitable books of insurance
business, primarily to highly rated reinsurers.
The agreed valuation of the businesses being sold is GBP20m.
Net cash consideration payable by Davies, after deducting net
debt applicable to the businesses, is approximately GBP18.6m.
The sale agreement provides for a post completion adjustment in
relation to working capital requirements, but the overall impact of
the disposal on the Group is expected to be broadly neutral to book
value and earnings after allowance for transaction expenses,
related incentive payments, working capital adjustments and
goodwill written off.
As anticipated in the October 2017 Share Placing, there will be
a consequential uplift to the Group's tangible net assets of
approximately GBP12m as a result of the transfer of value from
goodwill to cash.
The net proceeds of the sale will be deployed to help finance
the growing legacy transaction pipeline, especially in the US and
Lloyd's, and to generate commission income from the use of
Accredited and Malta's direct licenses.
Ken Randall, R&Q Chairman and CEO, commented: "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 programme business, which is mostly
reinsured to highly rated reinsurers.
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. 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 organisations in the future.
The sale will enable us to focus further on our core operations
where we remain excited about the growth potential in the current
year and beyond, underpinning the Group's financial performance and
distribution policy."
-Ends-
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) No 596/2014 until the release of this
announcement.
Randall & Quilter Investment
Holdings Ltd.
Ken Randall Tel. 0207 780
Alan Quilter 5945
Tel: 0207 780
5943
Numis Securities Limited (Nominated Adviser)
Stuart Skinner Tel: 020 7260
1000
Charles Farquhar Tel: 020 7260
1000
Shore Capital Stockbrokers Limited
Dru Danford / Stephane Auton Tel: 020 7408
4090
FTI Consulting
Edward Berry/Tom Blackwell Tel: 020 3727
1046
Notes to Editors:
About R&Q
The overall mission of the Bermuda based Group is to:
-- generate profits and capital extractions from expert
management of legacy non-life insurance acquisitions/ reinsurances,
including in Lloyd's; and
-- grow commission income from its licensed (and rated) carriers
in the US and EU/UK, writing niche and profitable programme
business, largely on behalf of highly rated reinsurers.
Our aim is to continue to grow sustainable profit streams to
support our business model and increase book value and cash
distributions to shareholders.
The Group was founded by Ken Randall and Alan Quilter in
1991.
Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94
Website: www.rqih.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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