Acquisition

RNS Number : 1058L

Randall & Quilter Inv Hldgs PLC

05 January 2009

 



5 January 2009

Randall & Quilter Investment Holdings plc

Randall & Quilter Investment Holdings plc ('Randall & Quilter')

Acquisition of the Quest Group of Companies, Bermuda

Randall & Quilter, the AIM traded insurance service provider and acquirer of solvent insurance companies in run-off, is pleased to announce that it has acquired Quest Management Services Limited, Quest (SAC) Limited and Sentry Intermediaries Limited (together the 'Quest Group of Companies'). The Quest Group of Companies are Bermuda based, providing accounting and management services to a diverse client base in the captive non-life insurance sector. 

The Quest Group of Companies have been acquired for a cash consideration of up to $6.9m, which includes a small deferred element linked to the results for the year ended 31 December 2009. The consideration will be satisfied through existing resources.

The Quest Group of Companies generated a profit before tax of $0.9m on revenues of $3.9m for the year ended 31st December 2007.  The acquisition will be earnings enhancing to Randall & Quilter in 2009.

The Quest Group of Companies are ranked fourth in Bermuda for the number of companies under management, and is the second largest of those that are independent. They are also ranked in the top ten captive management companies worldwide by Business Insurance Magazine.

Jerry McArthur, Chief Executive Officer, US & Bermuda of Randall & Quilter commented: 'I am pleased to be able to announce the acquisition of the Quest Group of Companies. Following on from Randall & Quilter's approval from the Bermuda Monetary Authority for the registration of a Bermudian reinsurance subsidiary in 2007, this is a decisive step forward for us into the Bermudian insurance market. The acquisition provides Randall & Quilter with a great opportunity to diversify its service provision both geographically and functionally, and provides excellent opportunities for growth.  The acquisition now provides a service platform in each of the key insurance markets of Bermuda, US and UK which will also enable Randall & Quilter to source run-off and debt acquisition opportunities and provide risk capital solutions to clients who are seeking to restructure their balance sheets across one or more of these markets.'

Nicholas Dove, President of the Quest Group of Companies, said: 'Becoming part of a dynamic, international service organization such as Randall & Quilter is a perfect fit for Quest. It will enable us to build on our success of recent years and to offer a wider range of services to our current and future clients. We're looking forward to working with our new colleagues and continuing to provide the personal service to our clients that we have always prided ourselves upon.'

ENDS

  Notes for Editors:

Randall & Quilter key corporate development milestones in 2008:

• 08 Jan 08: John O'Neill joins as Chief Operating Officer of UK Insurance Services Division.

• 06 Jun 08: Jerry McArthur, previously Chairman of Capita Commercial Insurance Services and CEO of major claims and run-off management operation CMGL, joins to become CEO of USA and Bermuda operations.

• 21 Aug 08: strategic partnership created with GLOBAL Reinsurance Company (GLOBAL Re) for the purchase and management of non-life run-off companies in Continental Europe. The total outstanding liabilities of the European run-off market is estimated at more than 200 billion Euros.

• 16 Sep 08: acquires KMS, the London-based provider of insurance run-off services, for a total cash consideration payable on completion of £1.78 million.

• 02 Oct 08: Colin Johnson and Mike Palmer, former Directors of Helix UK Limited, join to further grow Insurance Services Division.

Randall & Quilter is the holding company for a group of companies which operate in the non-life insurance services and run-off sector (the 'Group'). The Group comprises three divisions:

• Insurance Services Division. This provides insurance services and portfolio management for both third party clients, including syndicates at Lloyd's, and for the Group's own insurance subsidiaries.

• Insurance Company Division. This acquires solvent insurance companies in run-off, avoiding companies with any material personal lines business. Currently this division has eight companies in its portfolio.

• Liquidity Management Division. This acquires reinsurance receivables on a recourse or non-recourse basis and seeks to realise them for cash. 

The Group has approximately 215 staff in its offices in the UK and the US.

Further information can be found at www.rqih.co.uk.

Enquiries:

Randall & Quilter Investment Holdings plc

Ken Randall                     Tel: [phone]                    Mobile: [phone]

Alan Quilter                     Tel: [phone]                     Mobile: [phone]

Jerry McArthur                Tel: [phone]                Mobile: [phone]

Noble & Company Limited

John Riddell                      Tel: [phone]                    Mobile: [phone]

Numis Securities Limited

Charlie Farquhar               Tel: [phone]                     Mobile: [phone]

 

END

 

 

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