R&Q Insurance Share News (RQIH)

(Sharecast News) - Randall & Quilter (R&Q) on Monday announced that its wholly owned subsidiary, Accredited Surety and Casualty Company, has entered into a new program underwriting partnership with MG Skinner & Associates Insurance Agency.
Under the terms of the partnership, Accredited will be the issuing carrier on behalf of MG Skinner for directors & officers (D&O) and crime coverage offered to community associations primarily in western states in the US such as California, Texas, and Arizona.

Los Angeles-based MG Skinner operates as a specialty insurance broker and program administrator, providing proprietary property and liability products of insurance under the brand name Skinner Select, for habitational, commercial, hospitality, and community association assets.

Todd Campbell, president and chief executive of Accredited, said: "MG Skinner is a leading MGA producing property and liability insurance for community associations in the US market and has an excellent reputation in their industry. We are pleased to partner with them as they seek to expand their D&O and Crime coverage business."

Analysts from Shore Capital said: "The program management business is still in its infancy, but we expect this to quickly become highly profitable and increasingly drive the investment case. At the end of the first half of 2019, R&Q had signed up contracts worth around $800m in annual premiums (FY 2018: $500m) showing the continued strong demand for the product.

"The time lag between signing up new business to seeing the revenues in the IFRS results is around 12-24 months. We expect 2019F to show positive momentum and 2020F to see a step change in profit."

Randall & Quilter shares were up 0.60% at 201.20p at 1531 GMT.