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Davies acquires R&Q's insurance services and captive operations

IBR Staff Writer Published 16 January 2018

Davies Group has acquired insurance services and captive management operations of Randall & Quilter Investment (R&Q) for £20m.

After deductive net debt applicable to the business, the net cash payable by Davies will be about £18.6m.

Davies acquired the entire share capital of JMD Specialist Insurance Services Group and its subsidiaries, R&Quiem, John Heath & Company and AM Associates Insurance Services as well as Randall & Quilter Bermuda Holdings Limited and its Quest subsidiaries.

The sale follows the previously announced decision to simplify R&Q's operations to focus on its core, high-growth activities which include the acquisition of run-off portfolios and the use of its licensed companies in the US and EU as conduits for niche and profitable books of insurance business, primarily to highly rated reinsurers.

The transaction provides for post completion adjustment in relation to working capital requirements but, the overall impact on R&Q is expected to be neutral to book value and earnings, after allowing for transaction expenses.

R&Q plans to use the net proceeds of the sale towards financing its growing legacy transaction pipeline, in the US and Lloyd’s and to generate commission income by using Accredited and Malta’s direct licenses.

R&Q chairman and CEO Ken Randall said: “The sale of our Insurance Services and Captive Management operations is a significant milestone in the Group’s decision to simplify its operations and focus on our core areas of legacy acquisitions and the writing of quality programme business, which is mostly reinsured to highly rated reinsurers.

“The Insurance Services and Captive Management operations are market leading, well-developed and scalable and we are confident the operations will prosper under the stewardship of Davies.  As we have progressed discussions with Davies we have developed a good working relationship and hope to be able to develop business between our two organisations in the future.”


Image: Davies Group acquires insurance business from R&Q. Photo: Courtesy of savit keawtavee/FreeDigitalPhotos.net.