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27 November 2020
Bermuda
Reporter Maria Ward-Brennan

R&Q Re acquires Bermuda-based captive

R&Q Re (Bermuda) has entered into a stock purchase agreement to acquire a Bermuda-domiciled captive insurance company.

The transaction is subject to customary closing conditions and regulatory approval.

R&Q Re, a class 3A reinsurer which is registered as a segregated account company, is R&Q’s primary legacy vehicle in Bermuda.

The transaction provides full finality for the seller after the captive was placed into run-off.

Commenting on the deal, Paul Corver, group head of M&A at R&Q, said: “We are delighted to have agreed terms on the acquisition of another captive insurer.”

Corver added: “This continues a trend we’ve seen over the past six months or so where captive owners are seeking full and economic finality solutions. While this transaction remains subject to regulatory approval, we have confidence in our ability to complete the transaction in a timely manner.”

Recently, R&Q had approval for insurance business transfer of a portfolio of Sentry Insurance reinsurance policies to National Legacy Insurance Company, a R&Q wholly-owned subsidiary by the Oklahoma Insurance Commissioner.

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