In June we told you about R&Q Managing Agency Ltd (RQMA) being sold to medical professional liability insurance provider Coverys. Now it has been announced that all required approvals have been obtained, completing the US$22.6 million transaction.
RQMA – which provides back office support to Syndicate 2088 and is currently the managing agent for Syndicate 1991, Syndicate 3330, and Syndicate 1110 – will subsequently be known as Coverys Managing Agency Limited. Meanwhile the Boston-based buyer has gained in-principle approval from Lloyd’s to establish Syndicate 1975, which will also be managed by RQMA when the syndicate begins underwriting next year.
“We are pleased to have concluded this transaction with Coverys, which is a key element of our strategy to focus on legacy acquisitions and the writing of quality programme business, which is mostly reinsured to highly rated reinsurers,” commented R&Q chairman and chief executive Ken Randall. “We have already demonstrated how Coverys and R&Q are able to continue working together through the approval process of turnkey Syndicate 1975 and the ongoing management of the run-off Syndicate 1110.
“We look forward to continuing to build this relationship and exploring further opportunities to work together in the future. We remain an active participant as regards legacy portfolios at Lloyd’s and have a pipeline of further opportunities which we hope enhance our collaboration with Coverys.”
In other developments for R&Q, its subsidiary Accredited Surety and Casualty Company, Inc. (Accredited) has entered into an agreement with The Hotaling Group, Inc. (THG) for the latter’s contractor business called Tradesman Program Managers. The US business, which is being 100% ceded to a collateralised reinsurer, is expected to generate up to $10 million annual gross written premium.
“Accredited is authorised to underwrite a wide range of domestic insurance business across the USA, and we are delighted to launch another meaningful sized programme in 2017,” said Randall. “With the support of a number of highly rated Lloyd’s and international reinsurers, our aim is to generate growing and sustainable service fee income for the group while retaining limited net underwriting exposures.”
Related stories:
R&Q enjoys profit rise on back of ‘disposal’ program
Disclose your climate risks, Vanguard urges companies
