Randall & Quilter (R&Q) has signed an agreement to acquire the entire issued share capital of Trimac Acceptance and Trimac Exit Insurance, a Barbados domiciled captive insurer.
R&Q has paid $2.7m (£1.68m) for the acquisitions based on the final completion accounts of the company.
Randall & Quilter chairman and chief executive officer Ken Randall said that following the acquisition, the firm will optimise operational and capital efficiency through a novation to a Group owned cell within its Bermudian captive management operations.
"The acquisition of Trimac Acceptance and Trimac Exit demonstrates further our ability to provide attractive exit solutions for captive owners who have put their captives in run-off or are contemplating ceasing writing new business," Randall added.
R&Q will supervise the run-off of both the firms by structuring Trimac into its own captive insurance business in Bermuda.
A newly formed R&Q owned cell within R&Q Quest (SAC) will be set up by R&Q to replace the outstanding liabilities following the completion of the acquisition.
The Trimac group will also transfer cash into the cell to cover held reserves and collateral requirements and will provide the cell with a full indemnity for any future claims deterioration.
The acquisition will be completed after receving approval from Barbadian regulatory change of control, which is expected in the next few weeks.
Owned by Trimac Investments Limited Partnership, Trimac Exit has been writing general liability risks for the Trimac group’s US operations and since 1996 it has been in run-off.