RQIH.L Regulatory News (RQIH)

Randall & Quilter Investment Holdings plc

Captive Exit Solution

21 January 2013

Randall & Quilter Investment Holdings plc ('R&Q' or the 'Group') is pleased to announce that it has effected a novation of policies from SL Insurance Limited ("SLI") to R&Q Insurance (Guernsey) Limited ("RQIGL").

SLI is a Guernsey domiciled captive insurer that provided aviation hull and airline liability cover to airlines in the Virgin Group and has been in run off since May 2011. SLI is executing a number of novations that will remove these insurance liabilities from its book.

SLI has been advised on the transaction by insurance broker and risk adviser Marsh in London.

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

"This transaction evidences our continued success in providing exit solutions to captives. Having acquired five run-off captives in 2012 and another captive already in 2013, this latest transaction demonstrates an alternative exit solution whereby R&Q take on the liabilities by way of novation. This method is proving to be of great interest to captive owners who wish to continue using their captive but want to remove legacy or long tail liabilities. We are seeing a healthy pipeline of future opportunities as captive owners become increasingly aware of the exit solutions available."

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Notes to Editors:

Enquiries to:

FTI Consulting

Edward Berry \ Tom Blackwell

Tel: 020 7269 7297 \ 7222

R&Q

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;

- Underwriting Management & Captives;

- Insurance Services.

The Group currently:

- 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 portfolio of 11 insurance companies in run-off (from the UK, US and Continental Europe) with net assets of c.£85.9m as at 30 June 2012;

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

- acquires and manages a portfolio of insurance receivables, with a carrying cost of c.£8.1m as at 30 June 2012;

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

Notes to Editors:

About Marsh

Marsh, a global leader in insurance broking and risk management, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has approximately 26,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 53,000 employees worldwide and annual revenue exceeding $11 billion, Marsh & McLennan Companies is also the parent company of Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; Mercer, a global leader in human resource consulting and related services; and Oliver Wyman, a global leader in management consulting. Follow Marsh on Twitter @Marsh_Inc.