R&Q acquires Bermuda reinsurer Sandell Re for $25m in cash

Insurance services and investment company Randall & Quilter Investment Holdings (R&Q) is to acquire the entire issued share capital of Bermuda-based Sandell Holdings and its subsidiary Sandell Re (SRL) for an initial cash consideration of $25 million with further amounts payable subject to certain conditions being met.

Sandell Re was incorporated in Bermuda in 2014, and was licensed as a Class 3A segregated account company by the Bermuda Monetary Authority (BMA) in February 2015. It writes all classes of general business insurance and reinsurance.

The residual liabilities comprise primarily of contractor’s liability exposures arising in the US. SRL had net technical reserves of $48.3 million as at 31 December 2018. The $25 million cash consideration payable at closing by R&Q represents a discount to the company’s net assets which, at 31 December 2018, were $40.8 million. In the year to 31 December 2018 SHL recorded a loss of $2.7 million.

The transaction is subject to regulatory approval from the Bermuda Monetary Authority.

Ken Randall, executive chairman of R&Q, said: “We are delighted to have agreed terms to acquire SHL and its subsidiary Sandell Re. This is another sizeable acquisition for R&Q following on from our recent completion of the Global Re deal. R&Q takes pride in providing finality for owners and we expect to announce a number of additional acquisitions during the rest of this year.”

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