R&Q completes Lloyd’s managing agency sale to Coverys
Randall and Quilter Investment Holdings (R&Q) has completed the sale of its Lloyd's managing agency to US medical professional liability insurer Coverys, after receiving all regulatory approvals.
R&Q Managing Agency (RQMA) has subsequently been renamed as Coverys Managing Agency Limited, according to a statement.
The sale proceeds to be received in cash are $22.6 million, which, after costs and related incentive and other payments, will result in net proceeds to R&Q of £13.1 million. This is expected to generate a gain of approximately £11.8 million over the Group’s carrying value of RQMA, it said.
RQMA currently manages three syndicates - 1991, 3330 & 1110, and Coverys has recently gained in-principle approval from Lloyd’s to establish Syndicate 1975. Managed by RQMA, Syndicate 1975 is expected to commence underwriting on 1 January 2018 and will write both med-mal insurance and healthcare reinsurance.
Ken Randall, R&Q chairman and CEO, commented: "We are pleased to have concluded this transaction with Coverys which is a key element of our strategy to focus on legacy acquisitions and the writing of quality program business, which is mostly reinsured to highly rated reinsurers.
"We have already demonstrated how Coverys and R&Q are able to continue working together through the approval process of turnkey Syndicate 1975 and the ongoing management of the run-off Syndicate 1110. We look forward to continuing to build this relationship and exploring further opportunities to work together in the future. We remain an active participant as regards legacy portfolios at Lloyd’s and have a pipeline of further opportunities which we hope enhance our collaboration with Coverys."
Gregg L Hanson, CEO and president of Boston, Massachusetts-based Coverys, said: "Through the acquisition, Coverys will inherit the continued responsibility to support the syndicates currently under management with RQMA. The acquisition additionally allows Coverys to assist new underwriting syndicates that seek to launch their business at Lloyd’s, while also maintaining business operations for existing syndicates. We are excited to enter the London marketplace and will look to RQMA’s industry knowledge and expertise to guide us in this prestigious market."
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