22nd Sep 2015 09:11
LONDON (Alliance News) - Non-life insurance investor, service provider and underwriting manager Randall & Quilter Investment Holdings Ltd on Tuesday said its first-half loss widened significantly following a challenging period.
The company said the first half was hit by delays in the completion of legacy deals, restructuring and investment costs in its US services business, and lower investment returns. This resulted in it reporting a pretax loss of GBP4.5 million in the half to the end of June, compared to a GBP648,000 loss a year earlier.
Randall & Quilter said things have improved since the end of the half, with progress made in completion run-off deals and the group completing the sale of R&Q Marine Services Ltd to insurer Hiscox Ltd.
It also said its UK insurance services arm had performed well in the half, particularly in its broker run-off and premium credit control services units, while its underwriting management division delivered a rise in revenue, driven by acquisitions and a contract won with China Re, the Chinese reinsurer.
The company said its interim dividend will be flat at 3.4 pence per share.
"Despite a first half loss, recent positive developments on large legacy transactions mean we have confidence in delivering a profitable outcome for the full year, which together with stronger expected cash generation to year end, enables us to maintain distributions per share for the period." said Chairman and Chief Executive Ken Randall.
"The board is fully committed to improving the financial performance of the group and has launched a review of the business aimed at simplifying the group's business model to focus on core areas of profitable growth. The group's prospects continue to be attractive in our traditional run-off and service core, and we wish to capitalise fully on our success in these operations," Randall added.
Shares in Randall & Quilter were down 9.1% to 92.75 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
RQIH.L