Randall & Quilter Investment Holdings' wholly-owned Vermont subsidiary ICDC has entered into a stock purchase agreement to acquire NationsBuilders Insurance Company (NBIC), a Washington DC-domiciled captive from NationsBuilders Insurance Services (NBIS).
The transaction is subject to customary closing conditions and regulatory approval in Washington DC and Vermont.
NBIC participated as a reinsurer of the business underwritten by its parent, NBIS on casualty
exposures including worker’s compensation, general liability, auto liability and inland marine until it went into run-off in 2019.
The sale of NBIC provides full finality for NBIS.
Commenting on the acquisition, Paul Corver, group head of mergers and acquisitions at R&Q, said: “We are delighted to have agreed [to] terms on which we will acquire NBIC.”
He continued: “While this transaction remains subject to regulatory approval and normal closing conditions, our track record in executing captive acquisitions in the US, with our Vermont-based acquisition vehicle gives counterparties confidence in our ability to complete transactions in a timely manner.”
“We have enjoyed working with NBIS and Piper Sandler to find a finality solution for NBIS’s captive operations. More broadly, we continue to see a growing number of opportunities with respect to captive insurers as captive owners seek full finality solutions to free trapped capital – a trend we expect to continue regardless of the continuing disruption caused by the COVID-19 lockdown,” Cover added.
