RQIH.L Regulatory News (RQIH)

Randall & Quilter Investment Holdings plc

Acquisition

24 June 2013

Randall & Quilter Investment Holdings plc ('R&Q' or the 'Group') is pleased to announce that it has successfully reached agreement with MPPA Insurance Ltd ('MPPA') to receive by way of novation all contracts underwritten by MPPA. The contracts have been novated to cells in the R&Q owned Bermuda rent-a-captive facility, R&Q Quest SAC Limited. This required agreement of the two front companies; Travelers Indemnity Company and National Union Fire Insurance Company of Pittsburgh (part of AIG).

MPPA was formed in 1992 as a Class 2 Bermudian captive insurer of the Michigan Plastic Processors Association and has been in run-off since 2008. The captive wrote excess workers compensation protecting the Michigan Plastic Processors Association's self-insured fund. Transferred assets in the novations amounted to $4.9m for which R&Q paid a transaction fee of $3.4m. Transferring liabilities were estimated at $0.5m as at 28 February 2013.

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

"We are delighted to have completed this transaction which is our first for the Bermuda captive market. Having seen success in other domiciles in the last twelve months, notably Guernsey, we are pleased to now see increasing activity from Bermuda captives looking for exit or restructuring solutions. Whether acquisition, novation or loss portfolio transfers, the Group has a suite of versatile solutions for the captive sector."

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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 three core areas:

·; Insurance Investments;

·; Insurance Services; and

·; Underwriting Management

The Group:

·; has a team of up to 400 insurance professionals based in the UK, USA, Bermuda, and Continental Europe with wide service capability in both the 'live' and 'run-off' market;

·; has a current portfolio of 12 insurance companies in run-off (from the UK, US and Continental Europe) with net assets of c.£91.3m as at 31 December 2012

·; owns a Bermuda Class 3A insurance company which currently supports the Group's four syndicate participations;

·; has launched Syndicate 1991 which commenced underwriting from January 1, 2013 with a Capacity of £77m for 2013, provides 'turnkey' management services to Lloyd's syndicate 1897, manages two RITC ('run-off') syndicates and owns and operates 3 MGA business units; and

·; acquires and manages a portfolio of insurance receivables, with a carrying cost of c.£6.5m as at 31 December 2012.

The Group was founded by Ken Randall, Executive Chairman and Chief Executive, and Alan Quilter, Chief Operating Officer.