Randall & Quilter America, a subsidiary of specialist non-life insurance investor Randall & Quilter, has signed a merger agreement with Accredited Holding Corporation.
Accredited is the holding company for Accredited Surety and Casualty Company, a Florida-domiciled specialist insurer and two managing general agencies used for business distribution.
Accredited Surety has active licences in 49 US states and the District of Columbia, is Treasury listed and has an A- rating from AM Best. The company has a small non-contract commercial surety book which is in run-off with reserves of $200,000.
The holding company has estimated adjusted net assets of $21 million as per IFRS.
The agreed consideration is $25 million, to be satisfied from own group cash resources and an agreed term loan of $8.4 million from the newly refinanced group bank facility.
Accredited will continue to be run by the existing management team, comprised of Deborah Snow, president and chief executive officer (CEO); Sharon Jallad, chief operating officer; Marney Emel, chief financial officer and AJ Campofiore, chief business development officer.
Ken Randall, chairman and CEO of the group, said: “We are delighted to have reached agreement with Accredited. There is an excellent cultural fit and this represents an important milestone in the group’s stated strategy of accessing high quality, niche business for our growing underwriting franchise at Lloyd’s and elsewhere, whilst securing stable income streams from associated fee and distribution income.
“The bail business track record of Accredited Surety is exemplary and its niche characteristics fit neatly within our own underwriting philosophy. Accredited will be the first insurer acquired by the Group with an ‘A’ rating from a major rating agency and we believe that there are a number of exciting opportunities which stem from that. We are excited to welcome Accredited’s management and associates to our organization and look forward to working with Debbie and her team to grow their existing book and explore other attractive niche underwriting opportunities.”
Snow said: “We are very excited about the prospects of joining R&Q. As part of the Group, we will remain fully focused on delivering our corporate strategy, with the additional, long term aim of positioning Accredited firmly as the Group’s live platform in the US.”
Randall & Quilter, North America, Accredited Holding Corporation, Ken Randall