1 December 2017Insurance

R&Q completes Lloyd’s managing agency sale to Coverys

Randall and Quilter Investment Holdings (R&Q) has completed the sale of its Lloyd's managing agency to US medical professional liability insurer Coverys, after receiving all regulatory approvals.

R&Q Managing Agency (RQMA) has subsequently been renamed as Coverys Managing Agency Limited, according to a statement.

The sale proceeds to be received in cash are $22.6 million, which, after costs and related incentive and other payments, will result in net proceeds to R&Q of £13.1 million. This is expected to generate a gain of approximately £11.8 million over the Group’s carrying value of RQMA, it said.

RQMA currently manages three syndicates - 1991, 3330 & 1110, and Coverys has recently gained in-principle approval from Lloyd’s to establish Syndicate 1975. Managed by RQMA, Syndicate 1975 is expected to commence underwriting on 1 January 2018 and will write both med-mal insurance and healthcare reinsurance.

Ken Randall, R&Q chairman and CEO, commented: "We are pleased to have concluded this transaction with Coverys which is a key element of our strategy to focus on legacy acquisitions and the writing of quality program business, which is mostly reinsured to highly rated reinsurers.

"We have already demonstrated how Coverys and R&Q are able to continue working together through the approval process of turnkey Syndicate 1975 and the ongoing management of the run-off Syndicate 1110. We look forward to continuing to build this relationship and exploring further opportunities to work together in the future. We remain an active participant as regards legacy portfolios at Lloyd’s and have a pipeline of further opportunities which we hope enhance our collaboration with Coverys."

Gregg L Hanson, CEO and president of Boston, Massachusetts-based Coverys, said: "Through the acquisition, Coverys will inherit the continued responsibility to support the syndicates currently under management with RQMA. The acquisition additionally allows Coverys to assist new underwriting syndicates that seek to launch their business at Lloyd’s, while also maintaining business operations for existing syndicates. We are excited to enter the London marketplace and will look to RQMA’s industry knowledge and expertise to guide us in this prestigious market."

Take part in our reader survey to be in with a chance to win a £3,000 corporate subscription to Intelligent Insurer

More of today's news

UK Justice Committee report delays Ogden rate changes

Aon snaps up Swiss insurance broker Unidelta

Ironshore environmental chair and US field operations president steps down

Beazley unveils new US marine insurance platform

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
9 January 2018   Georgia Tsiakki, chief risk officer of Argo Global, has agreed to join Coverys’ newly-acquired Lloyd’s business later this year.
Insurance
8 January 2018   Randall & Quilter (R&Q), the specialist non-life legacy insurance investor and capacity provider of US and European MGA programme business, has made a number of changes to its senior management team. The business said it wants to simplify its group structure.
Insurance
21 December 2017   Hamilton Underwriting, the managing agency of Syndicate 3334 and the Lloyd's operations of Hamilton Insurance Group, has reached an agreement with Randall & Quilter (R&Q) in conjunction with AXA DBIO, to support the Reinsurance to Close (RITC) of Syndicate 3334’s 2014 and prior years of account.