R&Q Insurance Regulatory News (RQIH)

Randall & Quilter Investment Holdings plc

AGM Statement

12 June 2013

Randall & Quilter Investment Holdings plc (AIM:RQIH), the specialist non-life insurance investor, service provider and underwriting manager, is holding its Annual General Meeting today at 12.30 p.m. In his address, Chairman and CEO Ken Randall, will update shareholders as follows:

"Since announcing our final results on April 25, 2013, I am pleased to confirm that the business is performing well and we expect the first half year result to be in line with the Board's expectations. 

The Insurance Investments Division ('IID') looks set to have a good first half, driven by a strong performance from the Group's run-off syndicate participations, higher than anticipated investment income following credit spread tightening during the first quarter with limited impact to date from recent market volatility, and reserve releases from certain of the non-US owned legacy insurance companies.

Results on our active syndicate participations will however reflect slow earned premium development in the newly launched Syndicate 1991, which was largely anticipated by management and is typical of a syndicate in its early stages of growth. This syndicate is otherwise performing to plan and likely to reach, or be close to, its ultimate premium target for the 2013 underwriting year.

The Insurance Services Division is again benefiting from strong levels of credit write-backs and is otherwise performing in line with expectations although there has been a certain amount of new business income deferral in the US operations.

The Underwriting Management Division performance is improving, as anticipated, driven by the increased scale of its operations. We expect this to be reflected more significantly in the second half of the year when higher commissions from the MGAs and a larger contribution from fee income are expected.

We have had an active first part of the year in terms of acquisitions in the IID, having completed the acquisition of the Hickson captive in run-off in the IOM, the novation of the liability policies from Virgin's Guernsey captive and the acquisition of La Reassurance Intercontinentale in France (together with the reinsurance of an associated portfolio). In addition, we have purchased a number of new insurance debt positions and recently agreed a portfolio transfer from Turva to Alma, our Finland based run-off insurer.

Our acquisition pipeline continues to be strong and we are pursuing a number of attractive opportunities, certain of which are of a larger scale than those recently announced. Having raised c.£24m in the placing completed last month and with the benefit of our impending improved regulatory and operational platforms in Bermuda and Malta, we consider that we are well positioned to exploit fully the growth opportunities open to us ahead.

In summary, we look forward to the remainder of the year and beyond with confidence."

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Enquiries to:

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.