Insurance group R&Q has acquired Old Mutual’s (OM) captive firm Constantia Insurance Company (Guernsey) Limited for £1.5 million.
The company now in run-off – which reported a loss before tax of £2.4 million at the end of 2016 – will be amalgamated into R&Q’s consolidation vehicle in Guernsey, Capstan Insurance Company Limited. From 2003 to April 30 of last year, Constantia wrote professional indemnity & crime programme insurance to various OM Group firms.
Regulatory approval for the acquisition has been granted, with the agreed purchase price representing a small discount to Constantia’s pro-forma net assets of £3.4 million.
“We are delighted to have acquired Constantia, and this continues to demonstrate the ability of R&Q to provide exit solutions for end-of-life captive insurance companies,” commented Ken Randall, chairman and chief executive of R&Q. “This continues our excellent track record of acquiring captive insurance companies and we remain excited about our legacy acquisition pipeline.”
Financed from existing resources, the transaction will be settled in cash.
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