Randall & Quilter has acquired Sandell Re, which had net technical reserves of $48m last December
R&Q acquires Sandell Holdings (Credit: R&Q)
Randall & Quilter Investment (R&Q), through its subsidiary Randall & Quilter II, has completed the acquisition of Sandell Holdings (SHL) along with its subsidiary Sandell Re, for $25m.
Founded in 2014, Sandell Re is a Bermuda-based reinsurer and is registered as a segregated accounts company. It secured licence as a Class 3A segregated accounts company from the Bermuda Monetary Authority (BMA) in February 2015 to write all classes of general business insurance and reinsurance.
The firm is claimed to have been established to bring a new approach to reinsurance, based on stable underwriting and solid asset management.
Sandell Re offers reinsurance a range of services, including workers’ compensation, professional liability, general liability, auto liability, environmental, multi-line, non-standard auto, commercial transportation, contractors’, healthcare benefits and structured reinsurance products.
As of last December, Sandell Re had net technical reserves of $48.3m. The residual liabilities comprise mainly of contractors’ liability exposures arising in the US.
The consideration will include additional payments, subject to certain conditions
R&Q stated that $25m is payable as consideration, with additional amounts to be payable, subject to certain conditions being met.
It represents a discount to SHL’s net assets, which stood at $40.8m last December. Also, last year the firm recorded a loss of $2.7m.
Randall & Quilter Investment executive chairman Ken Randall said: “We are delighted to have completed the acquisition of SHL and its subsidiary, Sandell Re. This is the second significant legacy acquisition we have completed this year, following the May acquisition of Global, and demonstrates our ability to provide exit solutions and our continuing penetration into larger deal activity.
“R&Q is well positioned to take on books of business of this size in the future and we expect to announce further legacy acquisitions and reinsurances before the end of the year.”
In May this year, Randall & Quilter acquired Global US from an investment vehicle managed by AXA Liabilities Managers. The deal was announced in April this year.