R&Q Insurance expects sale of Accredited to close in second quarter

(Alliance News) - R&Q Insurance Holdings Ltd on Friday noted press reports about its planned sale of its programme management business Accredited, and its legacy insurance business.

The Hamilton, Bermuda-based non-life specialty insurance company said it expects the sale of Accredited for around USD465 million to close in the second quarter of this year.

R&Q added: "In the meantime, the board of R&Q continues to evaluate any and all options so as to realise value from its legacy insurance business for the benefit of all its stakeholders, including its shareholders, whether that be through the ongoing trading of that business or through alternative strategic options."

On Thursday, Insurance Insight Intelligence reported on theinsurer.com that PricewaterhouseCoopers was acting for the Bermuda Monetary Authority to assess the adequacy of R&Q's legacy reserves, noting that the regulator was scrutinising the details of the plan.

Back in December, R&Q said it "engaged closely" with the BMA, which requested an independent actuarial review of the remaining company's reserves.

Back then, the BMA said that R&Q needed to pause redemption of the Tier 2 USD20 million floating rate subordinated notes issued by R&Q Re (Bermuda) Ltd, with notes remaining outstanding and R&Q continuing to pay interest.

Furthermore, the regulator had ordered R&Q to put on hold approval of any new external legacy transactions to Re (Bermuda) while the BMA was undertaking is review.

R&Q shares fell 8.0% to 5.25 pence late on Friday morning in London.

By Tom Budszus, Alliance News slot editor

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