12th Jun 2023 14:04
R&Q Insurance Holdings Ltd - Hamilton, Bermuda-based non-life specialty insurance - Raises up USD60 million in new equity from funds affiliated with largest shareholder Scopia Capital Management, as separates program management business from legacy insurance business. The Scopia funds invest USD50 million in non-voting, perpetual preferred equity issued by Randall & Quilter PS Holdings Inc, an indirect wholly-owned subsidiary of R&Q. This amount can be raised to USD60 million. The preferred shares can exchanged for ordinary shares of R&Q Insurance at 60.98 pence per share.
R&Q also says its plan announced in April to put its two operating arms into separate holding companies within the group has received all necessary approvals. A process to sell Accredited, the programme management business, is underway, R&Q says, with interest received from "a number of parties". Meanwhile, the funds from the equity raise will be used to increase the capitalisation of R&Q Legacy, the legacy insurance business, and for general purposes, as Accredited is no longer paying intra-group dividends in order to build up its own financial strength rating.
Accredited records USD500 million in gross written premium in the first quarter of 2023, up 34% from a year before, while its program fee income rises by 24% to USD22 million.
Current stock price: 56.51p, down 1.5% on Monday in London
12-month change: down 40%
By Tom Waite, Alliance News editor
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