Acquisition of Synergy Insurance Services (UK) Ltd

RNS Number : 1171T

Randall & Quilter Inv Hldgs PLC

01 December 2011

 



1 December 2011

For immediate release

Randall & Quilter Investment Holdings plc

Acquisition of Synergy Insurance Services (UK) Limited

Randall and Quilter Investment Holdings plc, the AIM listed specialist insurance investor, service provider and underwriting manager, has agreed to purchase the entire share capital of Synergy Insurance Services (UK) Limited ('Synergy'), the High Net Worth Managing General Agent (MGA).

Created in 2006, Synergy is an approved Managing General Agent and Coverholder for a number of insurance carriers, predominately Lloyd's Syndicates, providing a range of specialist insurance services to High Net Worth individuals, including property, motor and fine art.

As a result of the proposed purchase, which is subject to FSA approval, the Group is assuming a negligible level of net current liabilities. Whilst some planned restructuring actions and the benefits of scale from R&Q's existing MGA infrastructure will enable operating performance to improve significantly, Synergy is expected to produce a small loss for the Group in the 2011 financial year. 

However, Synergy has a good renewal book and underwriting track record and is anticipated to grow premium strongly from the current year estimate of c.£6m.  It is expected therefore that Synergy will make a positive contribution to the Group's financial results in 2012 and beyond.

Commenting on the proposed acquisition, Ken Randall, R&Q's Chairman, said; "We are delighted to announce the acquisition of Synergy and welcome Emma Bennett and her highly experienced team to R&Q.  Synergy has established an excellent reputation within the specialist personal insurance market and will complement our existing MGA businesses."

Emma Bennett, Director of Underwriting at Synergy said, "R&Q's experience and balance sheet strength will provide Synergy with an exceptional opportunity to expand and we are very pleased to be joining the Group."

Enquiries to:

Randall & Quilter Investment Holdings PLC         www.rqih.co.uk 

Tom Booth                                                                          Tel: [phone]

Numis Securities Limited

Stuart Skinner (Nominated Adviser)                       Tel: [phone]

Charles Farquhar (Broker)                                            Tel: [phone]

Shore Capital Stockbrokers Limited

Dru Danford/Stephane Auton                                     Tel: [phone]

FTI Consulting                                                 

Neil Doyle/Edward Berry                                               Tel: [phone]

 Notes to Editors:

Since formation in 1991, Randall & Quilter has pursued a buy and build strategy to create a comprehensive range of investment activities and services in the global non-life insurance market and is focused on the following four core areas:

-          Insurance Investments;

-          Insurance Services;

-          Underwriting Management; and

-          Captives.

The Group currently:

Has a portfolio of nine insurance companies in run-off (from the UK, US and Europe) with net assets of c.£72.2m as at 30 June 2011;

Acquires and manages a portfolio of insurance receivables, with a carrying cost of c. £5.5m as at 30 June 2011;

Has wide service capability in both the 'live' and 'run-off' markets;

Has a team of approximately 350 insurance professionals based in the UK, USA, Bermuda, Canada and Gibraltar; and

Provides 'turnkey' management services to new Lloyd's syndicate 1897, manages two RITC

('run-off') syndicates and owns and operates three MGAs.

The Group was founded by Ken Randall, Executive Chairman and Chief Executive, and Alan Quilter, Chief Operating Officer, who both have extensive experience in the industry including as Head of Regulation of Lloyd's and as Head of the Market Financial Services Group respectively.

 

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