11th Oct 2013 13:57
LONDON (Alliance News) - Randall & Quilter Investment Holdings Ltd Friday said it has acquired Flagstone Alliance Insurance and Reinsurance LTD, a Cyprus domiciled insurer and reinsurer, from the Validus Group, in a USD24.1 million deal.
Flagstone went into run-off in 2010 after eight years of underwriting and had net reserves of around USD16.4 million on June 30.
"FAIR is our largest run-off acquisition since 2006. This purchase demonstrates our commitment to seeking out legacy portfolios which meet our return and pay-back criteria. We have reported that our pipeline is active and that in addition to further captive related acquisition opportunities, we are seeing some larger sized legacy opportunities," Chief Executive Ken Randall said in a statement.
"FAIR is proof of this and we are pleased that our recent GBP25 million fund raise has enabled us to conclude this deal. Through customary restructuring, we expect to make this acquisition both capital and operationally efficient for the group over the near term," Randall added.
R&Q Insurance Services Ltd will manage the business, while all of FAIR's assets will be held in UK accounts, aside from nominal balances held to pay local expenses.
Randall & Quilter shares were Friday quoted at 150.0 pence, up 3.0 pence, or 2.0%.
By Samuel Agini; [email protected]; @samuelagini
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