30th Apr 2018 11:55
LONDON (Alliance News) - Insurance investment firm Randall & Quilter Investment Holdings Ltd hiked its dividend Monday after its 2017 profit widened on greater premiums written
In 2017, pretax profit from continuing operations widened to GBP9.5 million from GBP7.0 million the year prior. This was after total income rose to GBP185.0 million from GBP60.9 million the year before as gross written premiums multiplied to GBP188.0 million from GBP53.4 million the year before.
Including discontinued operations, pretax profit widened to GBP23.0 million from GBP8.3 million the year prior. This was after it made a GBP11.8 million profit on the disposals of its Lloyd's managing agency.
"2017 was a year of transformation for Randall & Quilter as we refocussed and simplified the business around legacy acquisitions and insurance program underwriting management," Chairman & Chief Executive Officer Ken Randall said.
"I am pleased to report that we have an excellent pipeline of new business in both program underwriting management and legacy acquisitions," Randall added. "2017 saw a further increase in the profit contribution from legacy acquisitions. Program underwriting management business has been building steadily, especially towards the end of the year and we anticipate strong future profit growth from this business area, as commission earnings from new program launches gain momentum from the end of 2018 and beyond."
"In 2018 and 2019 we should finally see a positive contribution from our residual participation on Lloyd's Syndicate 1991," Randall added. "There is also potential for an increase in investment earnings as we continue to build our "float" of cash and investments in an expected rising interest rate environment."
Randall & Quilter declared a 5.4 pence per share final dividend, up from 5.2p the year prior. For the full year, the dividend rose to 8.9p from 8.6p the year prior.
"As a group we have always seized upon opportunities which inevitably come from market turbulence and this is certainly true today as we witness major upheavals in the global insurance industry - especially those arising out of the challenges posed by Brexit and the emergence of new technologies," Randall said.
"We are progressing with the possible launches of a small number of "Fintech" program underwriting management initiatives and see long term growth potential through using our extensive insurance licences in the USA and Europe to deliver "disruptive" technologies to the market," Randall added.
"In summary, I believe the business is in good shape," Randall concluded. "With a strong and energised management team, we are very well placed to develop and profit from the multiple opportunities in our chosen business segments."
Shares in Randall & Quilter were 5.9% higher at 159.90p on Monday.
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