5th Sep 2022 17:46
(Alliance News) - R&Q Insurance Holdings Ltd on Monday posted a widened interim loss as an eventful 2022 so far for the non-life insurer continues.
In the six months to June 30, gross written premiums increased 59% to USD837.3 million from USD527.0 million a year earlier. R&Q's pretax loss widened to USD136.7 million from USD45.4 million a year prior.
R&Q reported a USD89.8 million investment loss, swinging from USD5.4 million investment income a year earlier.
"In conclusion, the first half of the year has firmly demonstrated our ability to deliver on our 5-year, 5-pillar strategy of implementing a capital-lighter business model underpinned by recurring fee income. We know there is more work to do, but I am encouraged by how much we have already accomplished and the pace at which we are evolving into a less balance sheet intensive business with more predictable earnings," Executive Chair William Spiegel commented.
R&Q decided against an interim dividend, having paid out 2.0 pence per share a year earlier.
In April, R&Q accepted takeover offer from Brickell PC Insurance Holdings LLC. Brickell backed out of the GBP482 million takeover offer in May, however.
Chair Spiegel has faced pressure from an R&Q shareholder. Phoenix Asset Management Partners Ltd, which holds 12% stake in R&Q, has backed removing the executive chair.
Spiegel said on Monday: "It would be remiss if I did not comment on the requisition notice from a minority shareholder and the proposed resolutions to bring back the former executive chairman. While our sentiments on this situation are documented in the circular distributed on 24 August 2022, I wanted to personally thank the board, our employees and the shareholders who have provided support to both me and the strategy that we have laid out and been executing on. Despite this and a number of other exceptional corporate events in 2022 that have caused some short-term and unexpected disruption to the business, our focus for the remainder of the year and beyond is firmly on the continued delivery of our plan."
In late-August, Phoenix once again hit out at Spiegel. It said R&Q "is not competently led". Phoenix said Chair William Spiegel has three serious shortcoming. The investor said Spiegel is not competent, does not align with the interests of R&Q shareholders and lacks integrity.
In a potentially damning indictment, Phoenix said the debate among shareholders is not whether Spiegel should go, but the manner in which he departs.
The investor said that back in April, Slater Investments, the holder of a 12% stake in R&Q, approached Phoenix and said it was unhappy with R&Q's management. Slater's issue was particularly centred on the offer to sell R&Q to Brickell.
Phoenix wants to appoint Ken Randall as director and, if Spiegel is removed, have him act as an executive director to fill the vacancy. Ken Randall used to be chair of Randall & Quilter Investment, before retiring in March 2021 and being succeeded by Spiegel. R&Q was previously known as Randall & Quilter Investment.
Slater recently came out in support of under-fire Spiegel, however. R&Q had made a new board appointment, and announced plans to name an independent non-executive chair. Spiegel is the firm's executive chair.
R&Q named Robert Legget as a senior independent director on Monday, with the appointment effective from Friday. Alastair Campbell, who is currently the senior independent director, remains as an independent director before retiring on January 31, rounding off a nine-year stint on the board.
"We have the highest regard for Robert having worked with him previously," Slater said in August.
"We also note the intention to appoint a new non-executive chair. We believe that their appointments are the best way to address the governance of the business."
Shares in the company ended 1.5% higher at 100.50p each in London on Monday.
By Eric Cunha; [email protected]
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