Digital solutions provider Davies Group has been snapping up businesses in recent months – and now it has swooped for the insurance services and captive management operations of Randall & Quilter (R&Q).
R&Q revealed the sale of the businesses with an agreed value of £20 million (approximately NZ$37.8 million) – it will include the entire share capital of JMD Specialist Insurance Services Group and its subsidiaries, as well as John Heath & Company Limited and AM Associates Insurance Services Limited, R&Quiem Limited and Randall & Quilter Bermuda Holdings Limited along with its Quest subsidiaries. After deductive net debt applicable to the business, the net cash payable by Davies will be approximately £18.6 million (NZ$35.1 million).
In a statement outlining the sale, R&Q outlined that it would be focusing on “high growth activities” including the acquisition and assumption of run-off portfolios. In addition, the net proceeds will go towards helping finance its legacy pipeline, especially in the US and Lloyd’s.
“The sale of our Insurance Services and Captive Management operations is a significant milestone in the Group’s decision to simplify its operations and focus on our core areas of legacy acquisitions and the writing of quality programme business, which is mostly reinsured to highly rated reinsurers,” said Ken Randall, R&Q chairman and CEO.
“The 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.”
The company added that it hoped to develop further business relationships with Davies Group in the future.
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