Randall & Quilter Investment Holdings (R&Q) has acquired Constantia Insurance Company (Constantia) from Old Mutual (OM).
The Guernsey-domiciled captive, which is now in run-off, will be amalgamated into Capstan Insurance Company, R&Q’s consolidation vehicle in Guernsey.
Between 2003 and 2017 Constantia wrote professional indemnity and crime programme insurance to various OM companies.
At the end of 2016, Constantia reported a loss before tax of £2.4 million.
The transaction will be settled in cash and financed from the group’s existing resources, with the agreed purchase price of £1.5 million, representing a small discount to Constantia’s pro-forma net assets of £3.4 million.
Ken Randall, chairman and CEO of R&Q, said: “We are delighted to have acquired Constantia and this continues to demonstrate the ability of R&Q to provide exit solutions for end of life captive insurance companies.”
He added: “This continues our excellent track record of acquiring captive insurance companies and we remain excited about our legacy acquisition pipeline.”
Regulatory approval for the acquisition has been granted subject to necessary consents.
