R&Q sells Inceptum to Marco Capital

Transaction to generate millions in liquidity

R&Q sells Inceptum to Marco Capital

Mergers & Acquisitions

By Terry Gangcuangco

R&Q Insurance Holdings, which filed its application to appoint joint provisional liquidators in Bermuda on June 21, has agreed to sell its UK-based legacy general insurance subsidiary Inceptum Insurance Company to Marco Capital Holdings.

The deal is subject to certain conditions, including the closing of the previously announced sale of program management business Accredited to funds advised by Onex Corporation.

In its announcement, R&Q noted: “The transaction also includes and is subject to the completion of certain reinsurance agreements, between R&Q entities, Accredited Insurance Europe Ltd, and R&Q Re (Bermuda) Ltd and Inceptum being novated to Marco Re Limited.

“The transaction has already received necessary R&Q board approvals, but is subject to change of control approval by the PRA (Prudential Regulation Authority) and other regulatory approvals as required for the reinsurance agreements.”

Along with the transfer of related reinsurance arrangements, the agreement with Marco spans the sale of all shares of Inceptum. As of December 31, 2023, Inceptum’s estimated net assets stood at £19 million, although it incurred a loss of £2 million for the year ending on that date.

Inceptum, which R&Q acquired in 2020, previously traded as HSBC Insurance (UK) until 2011. The majority of its claims portfolio are motor and UK employers’ liability.

R&Q is set to receive £11.25 million in cash for the Inceptum shares. The overall transaction, including the reinsurance novations, is expected to generate around £13 million in liquidity for the company. The cash proceeds are anticipated to be received upon the transaction’s completion, which is expected in the third quarter.

Simon Minshall, chief executive at Marco, commented: “Marco specialises in complex situations, and we are pleased to be of assistance to R&Q in simplifying their group structure.

“PPOs (periodic payment orders) in particular are a class of claims where we have developed a specialisation and have acquired portfolios, while employers liability is an area of technical excellence for our venture PoloPartners, and the transaction overall provides a good outcome for all stakeholders.”

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