24th Apr 2020 14:33
(Alliance News) - Insurance services company Randall & Quilter Investment Holdings Ltd on Friday said that it has entered into a loss portfolio transfer reinsurance contract and a transfer agreement with US-based Repwest Insurance Co.
A loss portfolio transfer is a reinsurance treaty in which an insurer cedes policies and the loss reserves to pay them to a reinsurer. Insurers use loss portfolio transfers to remove liabilities from their balance sheets.
"This transaction assists Repwest towards its target of reaching economic finality of its Assumed Re run-off business, which it underwrote from 1978 through 2003," Randall & Quilter said.
Repwest is based in Phoenix Arizona and is a unit of AMERCO, the operator of "do-it-yourself" moving and self-storage operator U-Haul.
Paul Corver, R&Q's head of mergers and acquisitions, said: "We are delighted to have completed this loss portfolio transfer with the mutual intention to undertake an insurance business transfer in Oklahoma, subject to appropriate approvals. Our legacy pipeline across the group remains strong despite the current turmoil from Covid-19 and we look forward to closing more transactions in the coming months".
Shares in the company were up 0.7% at 146.00 pence each in London on Friday afternoon.
By Tapan Panchal; [email protected]
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