Randall & Quilter Investment Holdings (R&Q) has revealed an increase of 81 percent in acquired net reserves for H1 2020, following the completion of a record nine transactions.
The H1 results showed a total of £267 million in acquired net reserves, up from £148 million during the same period in 2019.
The nine deals, which were across seven different jurisdictions, included large reinsurance deals with counterparties such as Renaissance Reinsurance, Allianz and Houston International Insurance Group compared to the previous year where business was influenced by the Global Re acquisition.
Commenting on the results, Ken Randall, executive chairman and co-founder of R&Q, Alan Quilter, CEO and co-founder of R&Q and William Spiegel, deputy executive chairman of R&Q, said: “We target returns of at least 15 percent in all legacy transactions regardless of the accounting treatment of reinsurance and acquisitions.”
R&Q also showed solid operating returns on tangible capital and equity of 17.7 percent and 23.3 percent, respectively.
Randall, Quilter and Spiegel revealed: “Our growth has continued into the second half of the year with four additional transactions already signed and we have several other deals under exclusivity.”
The group also reported an increase of 30 percent on its pre-tax operating profits of £10.4 million in H1 2020 compared to £8 million during the same period last year.
In addition, it saw a decrease in profits before tax of £0.6 million in H1 of 2020 compared to £33.1 million in H1 last year, representing a decrease of 98.2 percent.
R&Q also highlighted the number of new hires made this year, including Spiegel, who is set to replace Randall when he steps down in 2021.
Other senior hires include Thomas Solomon as group chief financial officer and Patrick Rastiello as CEO of R&Q’s newly established US excess and surplus programme management business, Accredited Specialty Insurance Company (ASIC).
In addition to its US excess and surplus programme management business, R&Q has also established new branches in the UK and Italy in order to strengthen its programme management offering as well as securing licenses to write third-party legacy business in Bermuda.
Despite unprecedented challenges introduced by COVID-19, Randall said: “We have had minimal disruptions to our operations. Importantly, we are excited by the opportunities available to us in the current market.”
Spiegel noted: “COVID-19 and other market events have generated significant losses for the insurance industry, creating a ‘hardening’ insurance environment and increasing the demand for our legacy and programme management solutions.”
“We have a strong balance sheet, expertise, relationships and the track-record to capture the additional growth in front of us. However, as is our tradition, we will be patient and disciplined as we continue to grow our business,” added Quilter.
