Randall & Quilter Investment Holdings (R&Q) has agreed to acquire The Royal London General Insurance Company (RLGI) from The Royal London Mutual Insurance Society £11.9m.

RLGI is a UK non-life insurance company in run-off. It underwrote non-life insurance from 1985 to 1999.

The agreed purchase price represents a small discount to RLGI’s net assets of £13.5m as at the end of last year.  

RLGI reported a profit before tax of £0.8m for the year ended 31 December 2015.

After securing regulatory approval, RLGI will be transferred to the business to R&Q Insurance (Malta) Limited under Part VII of the 2000 Financial Services and Markets.

R&Q expects to complete the process by the end of 2017.

R&Q chairman and CEO Ken Randall said: “We are delighted to have reached agreement to acquire RLGI and this continues to demonstrate the ability of R&Q to provide exit solutions to owners of insurance companies in run-off. 

"This will be the second transaction where R&Q has provided non-life legacy solutions to the life and pensions sector.  We remain excited about our legacy acquisition pipeline.”

In an other development, R&Q transferred the business of Aegon Insurance Company (UK) to R&Q Insurance (Malta).

The AIC business transferred to RQIM is said to be further proof of the concept of consolidating the run-off of long term liabilities.

AIC, a general insurer has been in run-off since 1994 and was acquired by the Guardian Assurance Group (GA) in 2002.


Image: Randall & Quilter announced the transfer of Aegon Insurance Company (UK) to its subsidiary R&Q Insurance (Malta). Photo: courtesy of adamr at FreeDigitalPhotos.net.