Randall and Quilter (R&Q), the global underwriting management and legacy acquisition specialist, saw an increase in profits of nearly 300 percent last year following the implementation of its streamlining strategy.
The Bermuda-based firm’s year-end results for 2017 revealed that the pre-tax profit was £23.5 million last year, up from £8.5 million in 2016.
The figures included the £11.8 million profit on the sale of R&Q’s Lloyd’s managing agency, meaning the underlying profit growth was 38 percent.
As part of R&Q’s strategy to create a streamlined business that was focussed around legacy acquisitions and programme underwriting management, the company sold both its Lloyd’s management agency, in November 2017, and insurance services businesses, in January 2018.
R&Q’s captive management operations were included in the sale of the insurance services to Davies Group earlier this year.
The transaction saw the sale of the entire share capital of JMD Specialist Insurance Services Group and its subsidiaries, R&Quiem, John Heath & Company, AM Associates Insurance Services and Randall & Quilter Bermuda Holdings Limited and its Quest subsidiaries.
According to Ken Randall, group chairman and CEO, R&Q was in “good shape” following the transformation it experienced in 2017.
Randall stated: “We refocused and simplified the business around legacy acquisitions and insurance program underwriting management, however, this did not divert the business from delivering strong underlying earnings growth of 38 percent.”
“I am pleased to report that we have an excellent pipeline of new business in both programme underwriting management and legacy acquisitions.”
“Programme underwriting management business has been building steadily, especially towards the end of the year and we anticipate strong future profit growth from this business area, as commission earnings from new program launches gain momentum from the end of 2018 and beyond.”
He added: “As a group we have always seized upon opportunities which inevitably come from market turbulence and this is certainly true today as we witness major upheavals in the global insurance industry–especially those arising out of the challenges posed by Brexit and the emergence of new technologies.”
“With a strong and energised management team, we are very well placed to develop and profit from the multiple opportunities in our chosen business segment.”
