Randall & Quilter strikes captive acquisition in the US

Insurance services and investment company Randall & Quilter Investment Holdings is acquiring Washington D.C. domiciled captive NationsBuilders Insurance Company (NBIC).

R&Q's wholly owned Vermont subsidiary ICDC has entered into a stock purchase agreement NationsBuilders Insurance Services (NBIS).

NBIC participated as a reinsurer of the business underwritten by its parent, NBIS on casualty exposures including worker’s compensation, general liability, auto liability and inland marine until it went into run-off in 2019.  The sale of NBIC provides full finality for NBIS.

The transaction is subject to customary closing conditions and regulatory approval in Washington D.C. and Vermont.

Paul Corver, group head of M&A at R&Q, said: “We are delighted to have agreed terms on which we will acquire NBIC.  Whilst this transaction remains subject to regulatory approval and normal closing conditions, our track record in executing captive acquisitions in the U.S., with our Vermont-based acquisition vehicle gives counterparties confidence in our ability to complete transactions in a timely manner.  We have enjoyed working with NBIS and Piper Sandler to find a finality solution for NBIS’s captive operations.

"More broadly, we continue to see a growing number of opportunities with respect to captive insurers as captive owners seek full finality solutions to free trapped capital – a trend we expect to continue regardless of the continuing disruption caused by the COVID-19 lockdown.”