Vida Capital backs R&Q CEO Spiegel as row over strategy rolls on

In the latest twist in what has become a very public battle around the future leadership of  R&Q Insurance Holdings, another investor has come out in support of incumbent executive chairman William Spiegel (pictured).

Investor Vida Capital, which owns just over 9% of R&Q’s shares and took over the shares of Brickell PC Insurance Holdings, said that it believes any change in strategy or leadership now would be a “distraction for the company”.

Comments echo sentiments from JO Hambro UK Equity Income Fund which also pledged its support this week.

The rally of support follows an open letter from long-term investor group Phoenix Asset Management Partners, which owns 46 million ordinary shares in the company and has called for Spiegel to step down.

In its statement, Vida Capital Management said it “supports the current Executive Chairman, William Spiegel, the management team and the Board of R&Q in their efforts to maximize shareholder value. We believe a dramatic change to the strategy or to the executive leadership at this time would be counterproductive and would create a major distraction for the company.

“This is especially true after the successful recent capital raise, which allows the company to focus on execution of its strategy without the fundraising and merger distractions of the last year. We look forward to seeing the results that the team can deliver going forward.”

R&Q has raised $130 million in new capital, an increase on its initial intention to raise $100 million, citing strong investor demand.

That was necessary after Brickell PC Insurance Holdings backed out from its proposed £482 million deal to acquire R&Q, alleging “material breach” of their implementation agreement – a claim that the legacy and programme manager has firmly denied.

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