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(Sharecast News) - R&Q announced a significant loss portfolio transfer (LPT) reinsurance agreement with an unnamed prominent UK motor insurer on Thursday.
The AIM-traded company said the move would involve the transfer of a net reserve amounting to approximately $80m.
It noted that the transaction remained contingent on obtaining regulatory approvals and satisfying other closing conditions.
"We are pleased to announce this transaction for R&Q Legacy and work to put in place a reinsurance solution that supports our client with its ongoing business objectives," said Huw Battrick, co-head of legacy mergers and acquisitions at R&Q.
Battrick's fellow co-head, Parri Spector, added that the company was seeing increased interest in legacy insurance solutions for UK motor as incumbents looked to manage the current inflationary claims environment in a competitive marketplace.
"Given R&Q's strong in-house expertise, [they] see this as an area of opportunity.
"This transaction increases our reserves under management, and we continue to have a strong pipeline for R&Q Legacy with $900m of identified reserves across Europe, North America and Bermuda consisting of both direct and brokered transactions."
At 1000 BST, shares in R&Q Insurance Holdings were up 0.62% at 16.15p.
Reporting by Josh White for Sharecast.com.
