RQIH.L Regulatory News (RQIH)

28 March 2012

Randall & Quilter Investment Holdings plc

Acquisition

Randall & Quilter Investment Holdings plc ('R&Q' or the 'Group') is pleased to announce that it has completed the acquisition of the entire issued share capital of NFIL*, a Guernsey domiciled captive insurer.

NFIL has been in run-off since 2007 and wrote employer's liability, property and motor third party risks. There are however no open property or motor third party claims and net reserves relating to employer's liability claims were c. £262k as at 29 February, 2012, the date of the latest available management accounts. The Net Asset Value based on the same management accounts is estimated at c. £1.0m. The consideration, payable by Randall & Quilter in cash from existing resources is £706k.

Commenting on today's announcement, Ken Randall, Chairman and Chief Executive Officer of Randall & Quilter, said:

"The acquisition of NFIL is further proof of the heightened acquisition activity we are seeing as a Group. It also demonstrates our ability to provide attractive exit solutions for captive owners who have put their captives in run-off or are contemplating ceasing writing new business. Following this acquisition, we have two owned captives in run-off in Guernsey and will therefore seek to optimise operational and capital efficiency, subject to regulatory approval. "

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Enquiries to:

Randall & Quilter Investment Holdings PLC www.rqih.com

Tom Booth Tel: 020 7780 5850

Numis Securities Limited

Stuart Skinner (Nominated Adviser) Tel: 020 7260 1000

Charles Farquhar (Broker) Tel: 020 7260 1000  

Shore Capital Stockbrokers Limited

Dru Danford/Stephane Auton Tel: 020 7408 4090

FTI Consulting

Neil Doyle/Edward Berry Tel: 020 7269 7237/7297

Notes to Editors:

Since formation, Randall & Quilter has pursued a buy and build strategy to create a comprehensive range of investment activities and services in the global non-life insurance market and is focused on the following four core areas:

- Insurance Investments;

- Insurance Services;

- Underwriting Management; and

- Captives.

The Group currently:

- has a portfolio of ten insurance companies in run-off (from the UK, US and Europe) with net assets of c.£77.3m as at 30 June 2011;

- acquires and manages a portfolio of insurance receivables, with a carrying cost of c. £5.5m as at 30 June 2011;

- has wide service capability in both the 'live' and 'run-off' markets;

- has a team of approximately 350 insurance professionals based in the UK, USA, Bermuda, Canada, Norway and Gibraltar; and

- provides 'turnkey' management services to Lloyd's syndicate 1897, manages two RITC ('run-off') syndicates and owns and operates five MGAs.

The Group was founded by Ken Randall, Executive Chairman and Chief Executive, and Alan Quilter, Chief Operating Officer, who both have extensive experience in the industry including as Head of Regulation of Lloyd's and as Head of the Market Financial Services Group respectively.

*NFIL is Northern Foods Insurance Limited, the Guernsey domiciled captive of Northern Foods Limited, which has been in run-off since 2007.