Randall & Quilter (R&Q) has signed an agreement to purchase the entire issued share capital of Alma Insurance Company, subject to change of control approval by the FSA.

Under the terms of the accord, R&Q will pay £4.4m ($7.05m) in cash for Alma Insurance, a discount to the estimated adjusted net asset value.

The Finnish domiciled run-off reinsurer will be managed by R&Q Insurance Services, following the completion of transaction.

R&Q chief executive Ken Randall said that the new agreement to acquire Alma is a part of company’s plan to find new legacy portfolios to meet return criteria.

"Regulatory approval is expected to be received by year end," Randall added.

Randall & Quilter Investment Holdings owns and manages insurance companies in run off in the UK, Europe, the US, Canada, and Bermuda.

Since 1989, Alma has been in run-off and comprises international reinsurance business with net reserves of about £1.6m as of 30 September 2012.