R&Q profits surge 180% in 'outstanding' 2019 results

Randall & Quilter Investment Holdings enjoyed an "outstanding" year against the backdrop of solid growth in both program management and legacy businesses.

In the financial year 2019, the insurance services and investment company recorded a net profit almost three times the equivalent result in 2018.

R&Q made a pre-tax profit of £40.1 million in 2019, a 180 percent increase on the £14.3 million profit generated in 2018.

The legacy business saw a 31 percent growth in gross reserves, having completed 16 transactions including executing on two of the largest transactions in R&Q’s history. These transactions contributed £332.2 million of new cash and £276.2 million of additional net reserves.

The program management business reported gross written premiums of $369.3 million, representing a 147 percent increase over 2018.

The company's executive chairman Ken Randall, deputy executive chairman William Spiegel, and group chief executive Alan Quilter stressed in a joint statement that the company has a "strong pipeline of opportunities" in both program management and legacy, enhanced by “hard market” created by COVID-19. R&Q sees "limited impact" on existing business and investment portfolio from the pandemic.

“We are pleased to report that 2019 was a record year for the Group," Randall, Spiegel and Quilter said in a joint statement. "2019 was an outstanding year for R&Q and in 2020 our opportunity set continues to grow. We will continue, as is our tradition, to be patient and disciplined as we continue to grow our businesses.”

"Due to current market conditions, we are bringing forward our entry into the US Excess & Surplus (E&S) Lines Program Management market, a large addressable market in which we do not presently compete.

"Over the next few years we expect our Legacy business to continue to provide strong and consistent Operating Returns on Capital. In our Program Management business, which is already largely fee-based, we expect to continue its rapid growth and benefit from its scalable business model to drive a large portion of future commission revenue from new business, straight to the bottom line.

"We are excited about the future of both of our businesses and believe we are well positioned to achieve our goals," they concluded.