Source - SMW
Randall & Quilter Investment Holdings has reached agreement to sell the entire share capital of its Lloyd's managing agency, R&Q Managing Agency Ltd (RQMA) to Coverys, a provider of medical professional liability insurance based in Boston, Massachusetts. 

The sale remained subject to regulatory change of control approval by Lloyd's and the PRA, anticipated to be received in late 2017.

The sale followed the previously announced decision to simplify the group's operations to focus on its core, high growth activities which include: (i) the acquisition/assumption of run-off portfolios; and (ii) the use of its licensed companies in the US and EU as conduits for niche and profitable books of P&C business, primarily to highly rated reinsurers.

On completion, the agreement involves the cash payment by Coverys to R&Q of $22.6m, which after costs and related incentive payments, would result in estimated net proceeds to R&Q of £13.9m. 

This was expected to generate a gain of about £12.6m over the carrying cost of RQMA in the group's 2016 audited accounts. 

The sale of RQMA would be materially EPS and NTA accretive to the group in the current year. In addition, the group was expected to make cost savings in other parts of the Group that supported RQMA and these savings were likely to offset the loss of estimated RQMA related profit in 2018.

"Net proceeds of the sale will be deployed to help finance the ever growing legacy transaction pipeline, especially in the US and Lloyd's, and to generate valuable commission income from the use of Accredited and Malta's direct licenses."