Accredited, the property/casualty program supervisor and subsidiary of R&Q Insurance coverage Holdings Ltd., introduced the completion of its acquisition by Onex Companions, the Toronto-based personal fairness firm.
The sale of the unit comes on the heels of R&Q’s decision on June 21 to file for liquidation in Bermuda, after going through months of rising monetary difficulties.
Accredited will now function as an unbiased program administration firm offering “A-” rated (AM Finest) insurance coverage capability in Europe, the UK and the US. Accredited writes greater than $2.1 billion of gross premium and companions with MGAs on over 70 packages.
R&Q had seen ongoing adverse loss development in its core legacy acquisition enterprise, surprising prices and bills related to the sale of Accredited, in addition to the lack to consummate exterior legacy transactions – all of which put it right into a weakened monetary state.
R&Q’s unique plan was to promote Accredited, use the money to rebuild its capital and refocus on its core legacy enterprise. Nevertheless, the capital crunch had “a fabric impression on the corporate’s stability as a enterprise and as a going concern,” according to R&Q on June 13. The choice finally was made to liquidate the corporate, which helped expedite the sale of Accredited.
The sale was first announced on Oct. 20, 2023 – for a purchase order worth of $465 million. A consultant of Accredited confirmed that the transaction construction has modified however wouldn’t disclose specifics about whether or not there have been modifications to the deal worth.
“As an unbiased platform, [Accredited] will proceed to accomplice with best-in-class MGAs and reinsurers, supported by our world scale, robust steadiness sheet and ‘A-‘ AM Finest monetary power ranking,” commented William Spiegel, CEO of Accredited, in a press release. “Our technique stays unchanged; we’ll concentrate on supporting the expansion of our MGA companions and delivering top quality, diversified enterprise to our reinsurance companions.”
“Accredited has established itself as a number one program supervisor with a differentiated transatlantic footprint, a well-diversified and high-quality e-book of enterprise, deep reinsurer relationships and strong underwriting and danger administration protocols,” based on Adam Cobourn, managing director at Onex Companions.
“We sit up for partnering with Accredited’s administration and staff to strengthen and develop the enterprise. As an unbiased firm, Accredited can be effectively positioned for accountable development with a robust steadiness sheet and backing from Onex Companions,” Cobourn continued.
Along with the sale of Accredited, R&Q announced on June 24 it had agreed to promote its UK-based legacy common acquisition subsidiary, Inceptum Insurance coverage Co. Ltd., to Marco Capital Holdings Ltd., a Malta-based legacy acquisition group, for £11.25 million (US$14.2 million) in money. Inclusive of the impression of the novation of the reinsurance preparations, the transaction is predicted to generate roughly £13 million (US$16.4 million) of liquidity for the corporate.
R&Q additional announced on June 27 that joint provisional liquidators (JPLs) had been appointed in Bermuda to supervise the liquidation and finally wind up the corporate. Michael Morrison, Mark Allitt and Charles Thresh of Teneo (Bermuda) Ltd. had been named JPLs of R&Q.
On the identical time, Jeffrey Hayman, William Spiegel, Tom Solomon, Philip Barnes, Eamonn Flanagan, Jo Fox, Lawrence Hirsh, Jerome Lande and Robert Legett tendered their resignations as administrators of R&Q.
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