RQIH.L Regulatory News (RQIH)

Randall & Quilter Investment Holdings plc

Acquisition

Randall & Quilter Investment Holdings plc ('R&Q' or the 'Group') is pleased to announce that, subject to change of control approval by the FSA and certain customary pre-completion deliverables, it has reached agreement to acquire the entire issued share capital of Principle Insurance Company Limited ('Principle'), a UK domiciled insurer, from Principle Insurance Holdings Limited.

Principle has been in run-off since October 2009 and comprises almost entirely of Takaful motor insurance business with net reserves of c. £2.8m as at 30 June, 2011 and a net asset value of c. £5.1m as at 31 December 2010 (the date of the latest available audited accounts). The consideration, payable by Randall & Quilter in cash from existing resources, is £4.275m, subject completion adjustments. The business will be managed by R&Q Insurance Services Ltd.

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

"We are pleased to have reached agreement to acquire Principle and it demonstrates our commitment to find new legacy portfolios which meet our return criteria and have shorter anticipated run-off profiles. We have commented that our pipeline has grown in recent times and it is pleasing to report that this heightened activity has now resulted in a run-off company purchase, subject to regulatory approval, expected to be received in the coming months."

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Enquiries to:

Randall & Quilter Investment Holdings PLC www.rqih.co.uk

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 nine insurance companies in run-off (from the UK, US and Europe) with net assets of c.£72.2m 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 and Gibraltar; and

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