Randall & Quilter Investment Holdings has effected a novation of policies from SL Insurance Limited to R&Q Insurance (Guernsey).
SLI is a Guernsey domiciled captive insurer that provided aviation hull and airline liability cover to airlines in the Virgin Group and has been in run off since May 2011. SLI is executing a number of novations that will remove these insurance liabilities from its book.
SLI has been advised on the transaction by insurance broker and risk adviser Marsh in London.
Commenting on today's announcement, Ken Randall, chairman and CEO of Randall & Quilter said:
“This transaction evidences our continued success in providing exit solutions to captives. Having acquired five run-off captives in 2012 and another captive already in 2013, this latest transaction demonstrates an alternative exit solution whereby R&Q take on the liabilities by way of novation.
“This method is proving to be of great interest to captive owners who wish to continue using their captive but want to remove legacy or long tail liabilities. We are seeing a healthy pipeline of future opportunities as captive owners become increasingly aware of the exit solutions available.”
