11th Jan 2008 12:30
Randall & Quilter Inv Hldgs PLC11 January 2008 11 January 2008: Randall & Quilter Investment Holdings plc ("Randall & Quilter" or the "Group") Approval received for Class 3 Bermudan reinsurer Randall & Quilter, the award winning run-off management service provider andacquirer of solvent insurance companies in run-off, has received approval fromthe Bermuda Monetary Authority for the registration of a Bermudan class 3reinsurer (Note 1), R & Q Re (Bermuda) Ltd. As indicated at the time of the recent admission to AIM, the establishment of R&Q Re (Bermuda) is part of the Group's strategy to optimise capital efficiency. R&Q Re (Bermuda), a wholly owned subsidiary of the Group, will solely provideintra-group reinsurance, assisting the structuring of future acquisitions andenhancing the returns derived from new and existing insurance companysubsidiaries. It is expected that R&Q Re (Bermuda) will be capitalised purelyfrom internal resources, during Q1 2008. In the past, the Group has used third party reinsurers such as BerkshireHathaway's National Indemnity Company to support acquisitions. The Directorsbelieve that the benefit of reinsuring in whole or in part with a Group-ownedentity is that the Group will reduce the economic value ceded to such thirdparty reinsurers and, importantly, achieve much greater flexibility as regardsthe terms of such reinsurance. The Group expects to continue to work with thirdparty reinsurers where intra group cover may not be available or appropriate. Commenting on the subsidiary, Ken Randall, Chairman and Chief Executive Officer of Randall & Quilter, said: "This is a development we have planned for a long time. The additional funding available from our AIM listing has enabled us to establish a reinsurer sooner than would otherwise have been possible." ENDS Note 1: Class 3 Insurers The Class 3 approval enables reinsurance of subsidiary insurance companies and alimited capacity to underwrite third-party business, both subject to regulatoryapproval. Randall & Quilter is the holding company for a group of companies which operatein the non-life run-off insurance sector (the "Group"). The Group comprisesthree divisions: • Insurance Services Division. This manages insurance portfolios in run-off for both third party clients, including syndicates at Lloyd's, and for the Group's own insurance subsidiaries. • Insurance Company Division. This acquires solvent insurance companies in run-off, avoiding companies with any material personal lines business. Currently this division has eight companies in its portfolio. • Liquidity Management Division. This acquires reinsurance receivables on a recourse or non-recourse basis and seeks to realise them for cash. The Group has approximately 170 staff in its offices in the UK and the US andhas recently been selected as 'Run-off Management Service Provider of the Year2007' by the Association of Run-off Companies. Further information can be found at www.rqih.co.uk. Enquiries: Randall & Quilter Investment Holdings plcKen Randall Tel: 020 7780 5945 Mobile: 07831 145440Alan Quilter Tel: 020 7780 5943 Mobile: 07773 428617 Noble & Company LimitedJohn Riddell Tel: 020 7763 2200 Mobile: 07854 041636 Numis Securities LimitedCharlie Farquhar Tel: 020 7260 1233 Mobile: 07990 593 733 Polhill CommunicationsPJ Lewis Tel: 07932 351704 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RQIH.L