Randall & Quilter Investment Holdings has signed an agreement to acquire the entire issued share capital of IC Insurance from owners AstraZeneca UK and Imperial Chemicals Industries.
IC Insurance was formed in 1926 as the UK registered captive insurer for Imperial Chemical Industries. It ceased active underwriting in 1996.
Its residual liabilities comprise primarily of US workers’ compensation reinsurance of the United Insurance Company pooling facility along with some residual losses from self-insured liabilities and London market underwriting activity.
IC Insurance had claim reserves as at 31December 2014 amounting to £1.9 million and shareholder’s funds of £22.5 million. The consideration payable by Randall & Quilter in cash from existing resources and its bank facility with RBS is £17 million.
Ken Randall, chairman and CEO of Randall & Quilter, commented: “This is one of a number of current transactions we are assessing where a corporate parent is looking to dispose of their legacy captive prior to the implementation of Solvency II.”
