23 June 2017
Reporter: Becky Butcher

R&Q sells Lloyds managing agency to Coverys

R&Q Investment Holdings has reached an agreement to sell the entire share capital of its Lloyd’s managing agency, R&Q managing agency, to Coverys, a provider of medical professional liability insurance based in Boston.

The sale follows R&Q’s decision to simplify the group’s operations to focus on its core, high-growth activation, including the acquisition of run-off portfolios, as well as the use of its licensed companies in the US and EU.

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

Once the sale is complete, a cash payment by Coverys of $22.6 million will be paid to R&Q, which, after costs and related incentive payments, will result in estimated net proceeds of £13.9 million.

The net proceeds of the sale will be deployed to help finance R&Q’s legacy transaction pipeline, especially in the US and Lloyd’s, and to generate valuable commission income from the use of Malta’s direct licenses.

The managing agency was formed in 2003 to handle run-off business, and in 2010 it was approved as an agency to manage live syndicates.

Its core business is the management of Syndicate 1991, which writes niche SME property and casualty business, mostly through delegated underwriting authorities.

It also manages Syndicate 3330, which provides reinsurance to close and other reinsurance solutions for legacy business within Lloyd's.

According to Ken Randall, R&Q chair and CEO, the “proposed sale of our Lloyd's managing agency is a significant milestone in the group's decision to simplify its operations and focus on our core areas of legacy acquisitions and management and the provision of services to our live underwriting partners”.

Randall said: “R&Q Managing Agency is a well-developed and scalable platform and we are confident it will prosper under the stewardship of Coverys.”

He continued: “The proposed sale will enable us to focus further on our core operations where we remain excited about the growth potential in the current year and beyond, underpinning the Group’s financial performance and distribution policy.”

Gregg Hanson, CEO and president of Coverys, added: “Through the acquisition, Coverys will inherit the continued responsibility to support the syndicates currently under management with RQMA.”

“The acquisition additionally allows Coverys to assist new underwriting syndicates that seek to launch their business at Lloyd’s, while also maintaining business operations for existing syndicates.”

More Industry news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Advantage opens Vermont office
18 January 2018 | Vermont | Reporter: Ned Holmes
Advantage Insurance has opened a new office in Vermont to support its growing captive insurance services business
Tennessee captive premiums exceed $1 billion in 2017
18 January 2018 | Nashville | Reporter: Ned Holmes
Tennessee-domiciled captive insurance companies exceeded $1 billion in written premiums in 2017 for the first time, according to year-end figures from TDCI
National Interstate establishes group captive
17 January 2018 | Ohio | Reporter: Ned Holmes
National Interstate Insurance has launched TowCap Premier, a group rental captive, designed exclusively for the towing and recovery industry
Martin & Company opens EB division
16 January 2018 | Philadelphia | Reporter: Ned Holmes
Martin & Company has established an employee benefits consulting division and expanded its life, accident and health department
Utah sees 63 new captive formations in 2017
15 January 2018 | Salt Lake City | Reporter: Ned Holmes
The Utah Insurance Department licensed 60 new full captive insurance companies in 2017, in comparison to the 68 that it licensed in 2016
R&Q sells captive operations
15 January 2018 | London | Reporter: Ned Holmes
R&Q has sold its insurance services and captive management operations to Davies Group, a UK-based operations management, consultancy and digital solutions provider
Conyers welcomes new COO
11 January 2018 | Bermuda | Reporter: Ned Holmes
Paul Naylor has been appointed as the new COO for international law firm Conyers Dill & Pearman