Davies acquires R&Q insurance services, captive operations

Operations management, consulting and digital solutions provider Davies Group is acquiring the international insurance services assets of Randall & Quilter Investment Holdings (R&Q).

The move is set to extend the Davies’ reach and capability in insurance services and captive management while adding new operations in the UK and Bermuda to the group.

The deal will see Davies acquire JMD and Requiem in the UK, Quest in Bermuda, and John Heath and AMA in North America. The acquisition strengthens Davies’ position as a provider of core operations, digital solutions and consulting to the Lloyd’s and global insurance markets, and other highly regulated organisations, according to the press release.

Davies’ enlarged insurance services business will be led by Steven Crabb, who steps up to the new role of CEO – Insurance Services, reporting to Davies CEO Dan Saulter. Following the acquisition, Davies plans to simplify its insurance services offering.

Dan Saulter, group CEO of Davies said: “We invest for the future and this deal marks our commitment to the vibrant insurance services market in the UK and internationally. Our clients value specialist capability and increasingly want to build deeper long term relationships with us across; claims, insurance services, customer experience, and regulatory solutions.”

The transaction follows R&Q’s decision to focus on its core business of insurance run-off investment and programme business. The agreed valuation of the businesses being sold is £20 million. Net cash consideration payable by Davies, after deducting net debt applicable to the businesses, is approximately £18.6 million.

Alan Quilter, group CFO of R&Q, said: “This sale follows the previously announced decision to simplify our operations to focus on core high growth activities and we are delighted to have concluded this transaction with Davies, a group committed to growing insurance services”.

R&Q plans to deploy the net proceeds of the sale to help finance the growing legacy transaction pipeline, especially in the US and Lloyd’s, and to generate commission income from the use of Accredited and Malta’s direct licenses.

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