The board of Randall & Quilter (R&Q) has branded 2014 as a “challenging year financially” in its full year results, but added that it remains confident about the prospects and outlook for the group itself.
The results were helped by a “strong contribution” from new legacy transactions completed during the year and from the UK operations of the Insurance Services Division (ISD), particularly broker run-off and credit control services.
Securing the contract to provide the back office support for Syndicate 2088, the newly established syndicate managed by XL Catlin and backed by China Re, was also picked by the board as a highlight of 2014.
As commented on in the 2014 interim results and subsequent trading updates, R&Q has stated that the 2014 result was adversely impacted by reserve deterioration in R&Q Re US, the legal costs relating to the recently concluded Syndicate 102 arbitration and weaker than expected trading in the group’s US service operations.
The board is proposing a final return of capital in respect of the 2014 financial year of 5p per share to those shareholders on the register on 28 July 2015, with payments expected to be made on or around 10 August 2015.
This will bring the total for the year to 8.4p per share (equal with 2013). There will be no option to receive an income dividend and the return of capital remains subject to the customary approval of the group’s shareholders at the forthcoming annual general meeting.
Ken Randall, R&Q group chairman and CEO, said: “We benefit from an excellent legacy transaction pipeline, a newly streamlined service operation in the US and further opportunity to grow fee income in our underwriting management division.
“The focus will be firmly on growing tangible book value and resuming the annual increases in cash distributions to shareholders.”
