Randall & Quilter Investment Holdings has acquired the entire share capital of Flagstone Alliance Insurance and Reinsurance, a Cyprus domiciled insurer and reinsurer from the Validus Group.
Flagstone, which began underwriting in 2000, went into run-off in 2010 and comprises primarily international reinsurance business with net reserves of approximately $16.4 million as of 30 June 2013.
The business will be managed by R&Q Insurance Services and all of Flagstone’s assets will be held in UK based bank and custodian accounts, other than very nominal balances held to pay local expenses.
Ken Randall, CEO of Randall & Quilter, said: “We are delighted to have acquired Flagstone from the Validus Group after an extensive due diligence progress. Flagstone is our largest run-off acquisition since 2006. This purchase demonstrates our commitment to seeking out legacy portfolios that meet our return and pay-back criteria.”
“We have reported that our pipeline is active and that in addition to further captive related acquisition opportunities, we are seeing some larger-sized legacy opportunities. Flagstone is proof of this and we are pleased that our recent £25 million fund raise has enabled us to conclude this deal. Through customary restructuring, we expect to make this acquisition both capital and operationally efficient for R&Q over the near term.”
