Randall and Quilter Investment Holdings has sold its insurance services and captive management operations to Davies Group, a UK-based operations management, consultancy and digital solutions provider.
The transaction will see Davies acquire the entire capital share of JMD Specialist Insurance Services Group, as well as its subsidiaries, R&Quiem, John Heath & Company and AM Associates Insurance Services.
Randall & Quilter Bermuda and its Quest subsidiaries will also be acquired in the sale.
The sale reflects R&Q’s decision to simplify its operations and focus on the acquisition of run-off portfolios and the use of its licensed companies in the US and EU as conduits for niche and profitable books of insurance business, primarily to reinsurers.
The accepted valuation of the businesses being sold is £20 million, after deducting net debt applicable to the business, the net cash consideration payable by Davies is approximately £18.6 million.
The transaction is expected to have a broadly neutral impact on R&Q’s book value and earnings, after allowance for transaction expenses, related incentive payments, working capital adjustments and goodwill written off.
R&Q chair and CEO Ken Randall stated: “The insurance services and captive management operations are market leading, well-developed and scalable and we are confident the operations will prosper under the stewardship of Davies.”
He added: “The sale will enable us to focus further on our core operations where we remain excited about the growth potential in the current year and beyond, underpinning the Group’s financial performance and distribution policy.”