R&Q and UK P&I Club agree transfer of liabilities

13 March 2020

Randall & Quilter Investment Holdings Ltd.

("R&Q", "Group" or the "Company")

R&Q and UK P&I Club agree transfer of occupational diseases liabilities to R&Q

R&Q is pleased to announce that it has concluded an agreement with UK P&I Club, a leading provider of P&I insurance and other services to the international shipping community, to transfer the Club's occupational disease liabilities, totalling $103.8 million on an undiscounted basis.

Most occupational disease claims result from seafarers being exposed to asbestos on ships, going back as far as the 1950s. It can be 40 years or longer before symptoms of any disease occur and these can often be fatal, and the resulting compensation awards can be significant. These claims are very uncertain and volatile, and the exposure will continue for many years to come.

The transfer of liabilities will be subject to the approval of the High Court in London, which will ensure the interests of those members who are exposed to these claims and equally the claimants who suffer from these diseases are not prejudiced by the transfer. It will also be overseen by the UK insurance regulators, the PRA and FCA. In the interim, R&Q has concluded a reinsurance agreement with the Club so the benefits of the overall transaction can be recognised by the Club's current membership. The parties expect the transfer to be completed within the next two years.

Ken Randall, Executive Chairman at R&Q, says: "We are delighted to enter into this agreement with the UK Club which recognises our experience in this field and follows on from the previous transfer of liabilities from the Liverpool & London Steamship P&I Association in 2015. Occupational disease liability can negatively impact a Club's capital outlook and risk appetite. This transfer agreement will allow the UK Club more flexibility and stability in planning its financial future, while ensuring any claimants remain unaffected."

Nicholas Inglessis, Chairman of the UK P&I Club, says: "Transferring these claims to a recognised and well-regarded occupational disease specialist, such as R&Q, will significantly improve the Club's capital position and bring finality to a highly volatile book of claims. This will greatly benefit the Club's current members."

Ends.

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About R&Q 

The overall mission of the Bermuda based Group is to:

· generate profits and capital extractions from expert management of legacy non-life insurance acquisitions/ reinsurances, including in Lloyd's; and 

· grow commission income from its licensed (and rated) carriers in the US and EU/UK, writing niche and profitable program business, largely on behalf of highly rated reinsurers.

Our aim is to continue to grow sustainable profit streams to support our business model and increase book value and cash distributions to shareholders. 

The Group was founded by Ken Randall and Alan Quilter in 1991.

Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94

Website: www.rqih.com

About UK P&I

The UK P&I Club is a leading provider of P&I insurance and other services to the international shipping community. Established in 1869 the UK P&I Club insures over 244 million tonnes of owned and chartered shipping through its international offices and claims network. 'A (Stable)' rated by Standard & Poor's with free reserves of $505m, the UK P&I Club is renowned for its specialist skills and expertise which ensure 'best in class' underwriting, claims handling and loss prevention services.

The UK P&I Club is managed by Thomas Miller, an independent and international insurance, professional and investment services provider.

Website: www.ukpandi.com

About Thomas Miller

Thomas Miller is an international provider of market leading insurance services.

Founded in 1885, Thomas Miller's origins are in the provision of management services to mutual organisations, particularly in the international transport and professional indemnity sectors; where today they manage a large percentage of the foremost insurance mutuals. Increasingly Thomas Miller applies its knowledge and expertise to the development of specialist businesses.

Principal activities include:

· Management services for transport and professional indemnity insurance mutuals

· Managing general agency

· Professional services including legal services, claims and captive management

Website: www.thomasmiller.com