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11 Dec 2018 11:53
Randall & Quilter Investment Holdings Ltd.
11 December 2018
Update on the Acquisition of GLOBAL Reinsurance Corporation of America
Randall & Quilter Investment Holdings Ltd. ("R&Q" or "the Company") announced on 19 September 2018 that it had signed a definitive agreement to acquire GLOBAL U.S. Holdings Incorporated, the 100% parent of GLOBAL Reinsurance Corporation of America, a New York domiciled reinsurance company in run-off. The acquisition is conditional upon regulatory consent for the change of control. At the time of that announcement the Company indicated that it expected receipt of change of control approval and to complete the acquisition before the end of 2018.
The Company remains confident of achieving change of control approval of Global Re US and the Board now anticipates that regulatory approval is likely to occur early in 2019.
As a consequence of the applicable accounting requirements, the benefits of the acquisition will therefore now be accounted for in the first half of 2019, rather than the full year 2018. The Board's current assessment is that, as a consequence, while the Group's profit before tax for 2018 will be below current market expectations, that for 2019 will be correspondingly above current market expectations.
Ken Randall, Group Chairman and Chief Executive Officer said "We have always stressed the difficulty of predicting the exact timing of legacy deals. The acquisition of Global Re remains on track and the new business pipeline for legacy is very encouraging. Moreover, Accredited, our programme management business in the USA and Europe, continues to attract a lot of interest. By 31 December 2018, we anticipate having signed contracts with managing general agents which are expected to generate future gross written premiums of around $500m per annum. Both of the Accredited companies have a strong pipeline of further opportunities for execution in 2019. As we have previously indicated, earned commissions on programme business will begin to have a material impact on the Group's results from the second half of 2019 and beyond".
Ends
This Announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.
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Notes to Editors:
About R&Q
The overall mission of the Bermuda based Group is to:
· generate profits and capital extractions from expert management of legacy non-life insurance acquisitions/ reinsurances, including in Lloyd's; and
· grow commission income from its licensed (and rated) carriers in the US and EU/UK, writing niche and profitable program business, largely on behalf of highly rated reinsurers.
Our aim is to continue to grow sustainable profit streams to support our business model and increase book value and cash distributions to shareholders.
The Group was founded by Ken Randall and Alan Quilter in 1991.
Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94
Website: www.rqih.com
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