Accredited gains independence as Onex, R&Q $465m deal now complete
Private equity investment company Onex has completed its acquisition of R&Q Insurance Holdings’ global P&C programme management business Accredited. Enstar has provided reinsurance in connection with the deal.
Accredited will now operate as an independent program management company providing A- rated (AM Best) insurance capacity in Europe, the UK and the US. Accredited writes more than $2.1 billion of gross premium and partners with MGAs on over 70 programmes.
The deal was first announced in October 2023 following months-long talks with Onex. R&Q said at the time that the proceeds from the sale “will be entirely used to facilitate a material de-leveraging of R&Q”. R&Q has now filed for liquidation at the Bermuda Supreme Court. It has also sold UK-based legacy general insurance company Inceptum to Malta-based legacy acquirer Marco Capital Holdings for $11.25 million in cash.
Enstar Group's wholly owned subsidiary has completed a transaction to reinsure legacy business written by Accredited Surety and Casualty Company and Accredited Insurance (Europe). Enstar has provided reinsurance in connection with the acquisition of Accredited by Onex Partners. Guy Carpenter acted as the broker.
The reinsurance provides cover for net reserves of approximately $234 million, with all administrative duties and claims handling transferring to Enstar.
The reinsurance addresses Accredited’s assumed and underwritten legacy deals, comprising diversified portfolios, including asbestos, general casualty, workers’ compensation, and other exposures in both the US and the UK/European markets.
William Spiegel (pictured right), CEO of Accredited, said: “As an independent platform, we will continue to partner with best-in-class MGAs and reinsurers, supported by our global scale, strong balance sheet and A- AM Best financial strength rating. Our strategy remains unchanged; we will focus on supporting the growth of our MGA partners and delivering high quality, diversified business to our reinsurance partners.”
Adam Cobourn (picturef left), managing director at Onex Partners, said: “Accredited has established itself as a leading program manager with a differentiated transatlantic footprint, a well-diversified and high-quality book of business, deep reinsurer relationships and robust underwriting and risk management protocols. We look forward to partnering with Accredited’s management and employees to strengthen and grow the business. As an independent company, Accredited will be well positioned for responsible growth with a strong balance sheet and backing from Onex Partners.”
Commenting on the reinsurance deal, Dominic Silvester, Enstar’s chief executive officer, said: “This partnership with Onex is a strong example of how Enstar can step in to facilitate broader M&A transactions in support of our partner’s long-term strategic goals. The legacy arrangement will enable Accredited to continue to focus on serving its programme management business with a strong capital base.”
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