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(Alliance News) - Randall & Quilter Investment Holdings Ltd on Monday reported a sharp rise in its earnings for 2019 as it expressed confidence in its "bright future".
Randall & Quilter is a non-life legacy insurance investor and capacity provider for the US and European managing general agent market.
Shares in the company were trading 13% higher at 155.00 pence each on Monday afternoon in London.
For 2019, pretax profit from continuing operations more than trebled to USD40.1 million from USD14.3 million posted for 2018, with gross written premiums also increasing to USD369.3 million from USD149.4 million. Net asset value per share at the end of the year was 148.1p, up from 139.4p a year before.
Randall & Quilter completed 16 new legacy acquisitions, including the purchase of Global US and subsidiary Global Reinsurance Corp of America at USD80.5 million. The 16 transactions contributed GBP332.2 million of new cash and investments and GBP276.2 million of additional net reserves.
"Our pretax profit was a group record and almost three times the equivalent result in 2018. This was the result of the continued growth in both our Program Management and Legacy businesses as we successfully executed against our strategy and capitalized on the significant opportunities in both segments," said Executive Chair Ken Randall, Chief Executive Alan Quilter and Deputy Executive Chair William Spiegel.
The company said that following the Covid-19 pandemic, its Legacy business has already seen increased opportunities from insurance companies seeking to free-up capital by divesting insurance reserves.
"Over the next few years we expect our Legacy business to continue to provide strong and consistent operating returns on capital. Our key goal for the Legacy business is to add a recurring fee component to its income by managing legacy business on behalf of third parties. Our goals for the Program Management business are by 2022 to 2023 to have gross written premium of USD1.5 billion to USD2 billion, to achieve approximately 80% pretax margins and to generate economic earnings before interest, taxes, depreciation, and amortization in excess of USD50 million," they added.
"We are excited about the future of both of our businesses and believe we are well positioned to achieve our goals."
By Ife Taiwo; ifetaiwo@alliancenews.com
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