Randall & Quilter (R&Q) has acquired another legacy firm in run-off, its second this week.
R&Q had earlier announced its acquisition of the share capital of Inceptum Insurance Company Limited, which was incorporated in England & Wales back in 1998.
Now, R&Q subsidiary Randall & Quilter Holdings II has signed an agreement to acquire the entire issued share capital of The World Marine & General Insurance Company PLC (WMG) from BHP Group Limited, a leading resources company which focuses on the extraction and processing of minerals, oil, and gas worldwide.
WMG was incorporated in England and Wales in 1894 and was purchased by BHP in 1987. The firm wrote various insurance coverages since incorporation and from 1987 provided insurance protection solely for the BHP Group until it was placed into run-off in 2001.
“We are very pleased to have agreed terms to provide an exit to BHP for their owned insurance company,” said Paul Corver, group head of M&A at R&Q. “BHP are one of a number of companies with whom we are discussing exit or restructuring solutions for their captives. Current market conditions are causing companies to look closer at the capital tied up in their captives and whether it can be released to distribute to the parent or recycled to support new business lines. Disposal of legacy liabilities can achieve either of these ambitions. This is our second executed acquisition agreement for a UK insurer this week, demonstrating R&Q’s reputation as a counterparty of choice in the UK market. We are expecting to announce further transactions in the coming period.”
The deal is still subject to regulatory approval.