Randall & Quilter Investment Holdings (R&Q) has entered into an agreement to acquire IC Insurance from its indirect owners AstraZeneca UK and Imperial Chemicals Industries, for around £17m.
Under the deal, R&Q will acquire the entire issued share capital of IC Insurance, subject to change of control approval from the PRA and FCA.
Randall & Quilter chairman and CEO Ken Randall said: "We are delighted to have entered into an agreement to acquire IC Insurance from AstraZeneca UK Limited and Imperial Chemicals Industries Limited.
"This is one of a number of current transactions we are assessing where a corporate parent is looking to dispose of their legacy captive prior to the implementation of Solvency II."
IC Insurance was established in 1926 as the UK registered captive insurer for Imperial Chemical Industries and it ended active underwriting in 1996.
Its residual liabilities include US workers’ compensation reinsurance of the United Insurance Company, as well as some residual losses from self-insured liabilities and London market underwriting activity.
According to R&Q, IC Insurance had claim reserves of £1.9m and shareholder’s funds of £22.5m, as of 31 December 2014 and will be managed by R&Q Market Services.
R&Q provides services in three core areas, including Insurance Investments, insurance services and underwriting management.
Image: IC Insurance was established in 1926 as the UK registered captive insurer for Imperial Chemical Industries. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.