Randall & Quilter Investment Holding said, subject to regulatory approval, it has agreed to acquire The Royal London General Insurance Company Ltd (RLGI), a UK non-life insurance company in run-off, from The Royal London Mutual Insurance Society Limited.
The agreed purchase price was £11.9m and represents a small discount to RLGI's net assets of £13.5m as at year-end 2015. The transaction will be financed from the Group's bank facility and cash at hand. In the year ended 31 December 2015 RLGI reported a profit before tax of £0.8m.
RLGI underwrote non-life insurance from 1985 to 1999; the remaining liabilities relate to employers' liability originating from cover provided to SMEs.
Once regulatory approval has been given to the acquisition, it is planned to transfer the business to R&Q Insurance (Malta) Limited under Part VII of the 2000 Financial Services and Markets. R&Q will target to complete this by the end of 2017.