R&Q reveals ‘critical milestone’ in strategic business split plan
Global specialty insurer R&Q Insurance Holdings has secured an independent rating for Accredited from AM Best, marking what it described as a “critical milestone” in its strategic plan to separate its programme management and legacy insurance businesses.
AM Best has recognised Accredited as an independent ratings unit, distinct from R&Q. It has maintained 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.
AM Best cited Accredited’s balance sheet strength as “very strong”. The rating is an important part of establishing Accredited as a stand-alone entity, demonstrating its financial strength to MGA and reinsurance partners.
The news follows the ratings agency’s initial apprehensions over “ material weakening of the group’s risk-adjusted capitalisation”.
Accredited has already achieved the necessary approvals to operate as a separate holding company within the group and a process is underway for the potential sale of Accredited with interest expressed from a number of parties.
William Spiegel (pictured), chief executive officer of R&Q, said: “Since announcing our strategic plan to separate Accredited and R&Q Legacy we have moved at pace to realise this objective. Securing an independent rating for Accredited is a critical milestone, underpinning its exciting prospects as a standalone business.
“As we recently announced, Accredited has enjoyed an excellent start to 2023 with Gross Written Premium for the 12 months ended 31 March 2023 of ~$2 billion. This independent AM Best rating will give the team, and their partners in the market, continued confidence as we build on Accredited's position as a leading global independent hybrid carrier.”
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