R&Q nearing deal with Onex for Accredited; confirms ‘advanced’ talks
Global specialty insurance company R&Q Insurance Holdings is in “advanced” talks with private equity firm Onex Corporation for a potential sale of Accredited, its hybrid fronting business.
The board of R&Q had been evaluating strategic options for the Group, including the legal separation of Accredited and R&Q Legacy.
“The Board confirms that it is in an advanced stage of discussions with Onex Corporation (“Onex”) regarding a potential sale of Accredited,” R&Q said in a statement on September 22.
Earlier this year, the specialty insurer revealed its strategic plan to separate its programme management and legacy insurance businesses. The move is part of its efforts to set the business on a “more favourable footing” to deliver profitable growth as it transitions its legacy business to a fee-based and capital efficient model.
The management highlighted that Accredited has witnessed substantial growth over the past three years, recording gross written premium and fee income (excluding minority stakes in MGAs) of $1.8 billion and $80 million, respectively, in 2022. Accredited now stands as one of the largest programme managers globally.
In July, AM Best recognised Accredited as an independent ratings unit, distinct from R&Q. It affirmed the financial strength rating of A- of Accredited Specialty Insurance Company (ASI), Accredited Surety and Casualty Company, Inc. (ASC) and Accredited Insurance (Europe) Limited (AIEL), collectively known as Accredited.
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