Bermuda-based insurance company Randall & Quilter Investment (R&Q) has signed two separate agreements for the acquisition of Global Reinsurance Corporation of America (Global Re US) and MPS Risk Solutions from their respective owners.
Image: R&Q to acquire Global Re US for $80.5m. Photo: courtesy of Randall & Quilter Investment Holdings Ltd.
In the first deal, R&Q has agreed to acquire Global U.S. Holdings, the parent company of Global Re US, from AXA DBIO, for about $80.5m.
Based in New York, Global Re US is an insurance company in run-off that was engaged in underwriting of mainly property and casualty pro-rata treaties and facultative business.
The company served regional and specialty insurance firms on non-standard automobile, multi-peril and general liability lines.
Global Re US had reported $260m in total assets, $146m in gross reserves and shareholders’ equity of $107m, as of 31 December 2017.
R&Q said that based on its own reserve evaluation and significant operational synergies, the acquisition of the New York-based insurance company will give it a material gain.
The acquisition would need regulatory approval from the New York Department of Financial Services, said R&Q.
R&Q chairman and CEO Ken Randall said: “We are very experienced in managing portfolios of this nature which reflects our expertise in managing long-tail US liabilities.
“It is a significant legacy transaction for the Group and, with a continuing pipeline of further potential acquisitions, we anticipate an active second half of the year.
“Two weeks ago we announced our largest ever legacy reinsurance transaction providing a limit of $146m for a US based Risk Retention Group for a premium of approximately $108.5m. These transactions demonstrate both the breadth of our ability to provide exit solutions and our continuing penetration into larger deal activity.”
As far as the second deal goes, R&Q has agreed to acquire MPS Risk Solutions from The Medical Protection Society (MPS) for £16.0m ($21.04m).
The acquisition will be carried out through Accredited Insurance (Europe), its wholly-owned European insurance company.
Founded in January 2004, MPS Risk Solutions was an UK authorized insurer subsidiary of MPS, which stopped active underwriting services in October 2012.
Randall said: “R&Q takes pride in assisting companies to dispose of companies in run-off and providing finality for the owners. We expect to announce a number of additional acquisitions before year-end”.