Investor backs R&Q CEO Spiegel amid public row over strategy

In what is threating to become a tit for tat war of words played out in the public domain, an investor in  R&Q Insurance Holdings has today pledged its support to the company’s leadership – just hours after another shareholder called for the CEO to step down.

James Lowen and Clive Beagles, co-managers of the J O Hambro UK Equity Income Fund, which holds almost 5% of R&Q’s shares, have offered CEO William Spiegel (pictured) and the wider board their support, arguing that any change in strategy or leadership would be counterproductive now.

“We have full support for the current Executive Chairman - William Spiegel and indeed the wider Board. We think any change to the strategy or the executive leadership would be counterproductive post a year of change and the recent fund raising,” they said in a statement.

“The business is well placed in its two main markets to drive significant growth and shareholder value. The proposed changes, which we do not support, would create a major distraction at a time when the focus should be on growing the business.”

The pledge of support represented a counterpunch to an open letter published by long-term Phoenix Asset Management Partners, which owns 46 million ordinary shares in the company, which called for Spiegel to step down.

In that letter, the investor says it has seen the performance of the business deteriorate under the leadership of Spiegel. It wants a general meeting to be called at which resolutions will be proposed for Spiegel to stand down and a new executive director be appointed.

This latest move comes after R&Q raised $130 million in new capital, an increase on its initial intention to raise $100 million, citing strong investor demand.

That was necessary after Brickell PC Insurance Holdings backed out from its proposed £482 million deal to acquire R&Q, alleging “material breach” of their implementation agreement – a claim that the legacy and programme manager has firmly denied.

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