26th May 2015 08:05
LONDON (Alliance News) - Randall & Quilter Investment Holdings Ltd on Tuesday said it has agreed a deal to buy IC Insurance Ltd from indirect owners AstraZeneca UK Ltd and Imperial Chemicals Industries Ltd for a total of GBP17 million.
The insurance services company said IC Insurance was created in 1926 as the UK-registered captive insurer for Imperial Chemical Industries, the former British chemicals company sold to Dutch group AkzoNobel NV in 2008. It ceased underwriting activity in 1996.
Randall & Quilter will pay a total of GBP17 million for the business, funded from existing cash resources and from its bank facility with The Royal Bank of Scotland Group PLC.
The company will be managed by R&Q Market Services Ltd, with plans to undertake a Part VII transfer of the remaining insurance businesses to its R&Q Insurance (Malta) Ltd consolidation vehicle.
"This is one of a number of current transactions we are assessing where a corporate parent is looking to dispose of their legacy captive prior to the implementation of Solvency II. The advent of Solvency II is generating a number of prospects for the Group across Europe and in general we remain excited about our legacy acquisition pipeline," said Ken Randall, Randall & Quilter's chairman and chief executive.
Shares in Randall & Quilter were up 3.6% to 116.515 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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