Randall & Quilter Investment Holdings (R&Q) has transacted a loss portfolio transfer of reinsurance business with Lufthansa Group’s captive, Delvag Versicherungs-AG.
The non-life speciality insurance firm was supported in the transaction by Black Forest Reinsurance Consulting (BRFC) and Guy Carpenter Munich.
The reinsurance business is administered by R&Q’s Malta-based carrier, Accredited Insurance (Europe), which was recently rated A- (Excellent) by A.M. Best.
Completion of the transaction marks Delvag reaching economic finality of a third-party reinsurance portfolio, which has approximately €22 million of reserves and no active client relationships.
Subject to regulatory approvals, the transaction also indicates mutual interest to engage in an insurance business transfer of the portfolio to Accredited.
Paul Corver, group head of mergers and acquisitions at R&Q, affirms: “We are delighted to have completed another loss portfolio transfer with the mutual intention to follow on with a reinsurance business transfer from Germany to Malta.”
“Once again, it proves R&Q’s capabilities to utilise its international team to provide full finality legacy solutions across the US and Europe and here in particular in the DACH region. We look forward to working closely with BFRC to conclude further legacy deals in the near future,” Corver adds.
Andreas Brügel, director of reinsurance at Delvag, explains: “After Delvag’s decision to cease writing third-party reinsurance business after 50 years, this portfolio transfer was the logical consequence to free-up Solvency II capital.”
“This fundamentally supports the reinsurance department’s new strategy to concentrate on providing services as a group captive instead of primarily acting as a third-party business writer.”
