Randall & Quilter Investment Holdings (R&Q) has revealed a 114 percent increase on last year’s figures in contracted premium, totalling $924.5 million in H1 2020, according to its latest performance update for its programme management business.
The results also showed a gross written premium (GWP) of $247.2 million, a 43 percent increase compared to the same period last year.
The non-life global specialty insurance company also found its economic commission revenue increased by 88 percent to $10.7 million compared to $5.7 million in 2019.
So far this year, R&Q has added 10 new programmes bringing the total number of active programmes to 36.
At the end of Q2 2020, four new programmes were signed with a contracted premium of around $200 million, R&Q said are all expected to begin generating GWP shortly.
In the results, R&Q revealed they are set to enter the US excess and surplus (E&S) programme management market in Q4 2020.
Commenting on the programme management results, Alan Quilter, group CEO, said: “In H1 2020, our programme management business, trading under the Accredited banner, continued to grow strongly. Importantly, this business has significant built-in growth through the 36 existing programmes and 34 different distribution partners with whom we have secured contracts as of the end of Q2 2020.”
He continued: “In addition, the four new programmes we signed post the half-year, are expected to generate in excess of $200 million of annual recurring GWP when they achieve scale over the next 18 months.”
“We continue to see strong demand from new origination partners as existing insurance capacity faces capital challenges given the magnitude of the insured losses from COVID-19. Moreover, due to current market conditions, we expect to enter the US E&S programme management market, a large addressable market in which we do not presently compete, in Q4 2020, accelerating our original plans. This launch will see Accredited achieve its strategic objective of being a comprehensive program management solutions provider in all its major markets”, he added.
