R&Q’s posts record operating profit for 2020 in year of ‘accelerated growth’
Non-life global specialty insurance company Randall & Quilter Investment Holdings (R&Q) has announced its results for the year ended 31 December 2020. These include a dip in profits, reflecting a reduction in net intangibles due to the mix of legacy insurance transactions, but a record pre-tax operating profit.
R&Q’s profit before tax was £30.2 million, a decrease of 21 percent on its 2019 figure of £38.1 million. The company hailed a record Q1 pre-tax operating profit of £16 million, an increase of 102 percent, reflecting a year of accelerated growth across both business segments.
The company also announced a breakthrough year for its Program Management segment, which was profitable for the first time, earning pre-tax operating profit of $3.4 million (2019: $1.8 million loss) a 14.3 percent margin, which the company said demonstrated the operating leverage benefits of increased scale. Some 18 new programs were signed, increasing total programs to 48, driving a 46 percent increase in gross written premium to $538.9 million ($368.9 million in 2019); on course to achieve previously announced target of at least $1.5 billion of gross written premium in 2023.
For Q1 2021, its Program Management segment increased gross written premium by 52 percent to $185.2 million.
Executive chairman William Spiegel, said: “2020 was a challenging year and the pandemic tested the resilience of our employees and our business model. Our team responded with agility and confidence in a dynamic market environment and this was demonstrated by our record 2020 operating results.
“Since joining R&Q, I have experienced first hand the esprit de corps that exists between our employees based across our eight global offices. All our employees contribute to the entrepreneurial and pioneering spirit that R&Q is known for and which we demonstrated once again last year. What our 2020 results demonstrate is that the difficulties of last year – not least the ‘work from home’ phenomenon – did not hamper our ability to deliver on behalf of our clients and ultimately our shareholders.
“I believe 2020 at R&Q can best be described as a year of accelerated growth. Our Legacy Insurance business reported its strongest year ever and our Program Management business, after just four years, became profitable. With both of our businesses profitable, we now have the foundation to continue accelerating our growth and delivering sustainable earnings in the years to come.”
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