Randall & Quilter Investment Holdings (R&Q) has reported a record year for its legacy insurance in 2020, executing on 19 deals and delivering a 46 per cent increase in pre-tax operating profit to £38.1 million. The 2020 results showed that R&Q’s business continues to be written at attractive returns with an operating return on tangible equity of 14.8 per cent and a five-year average return of 20.2 per cent. R&Q’s programme management was profitable for the first time, earning pre-tax operating profit of $3.4 million, a 14.3 per cent margin, demonstrating the operating leverage benefits of increased scale. The figures show accelerated growth for the group with pre-tax operating profit of £16.0 million, an increase of 102 per cent, reflecting a year of accelerated growth across both business segments. In addition, fee income of £18.8 million, an increase of 89 per cent, representing 17 per cent of gross operating income. For Q1 2021, programme management has already increased gross written premium by 52 per cent to $185.2 million, and fee income by 91 per cent to $9.7 million, compared with Q1 2020. R&Q has already launched five new programmes this year, increasing active programmes to 52 and contracted premium to $1.4 billion. Commenting on the results, newly appointed executive chairman, William Spiegel, says: “2020 was a challenging year and the pandemic tested the resilience of our employees and our business model. Our team responded with agility and confidence in a dynamic market environment and this was demonstrated by our record 2020 operating results.” Recently, R&Q’s wholly-owned UK subsidiary, Randall & Quilter II Holdings completed the acquisition of Electric Insurance Ireland DAC (EIIDAC), a wholly-owned captive insurer of Electric Insurance Company (EIC).
