R&Q
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Available net cash proceeds on closing are now down ~$100mn to $65mn-$110mn
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The company is still working to get debt holder approval for the Accredited deal.
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The company reiterated its commitment to consummating the Accredited sale.
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The Lloyd’s legacy business has been placed up for sale, along with other units.
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R&Q is still dealing with a Bermudian regulatory review, personnel turnover and a transitioning business model.
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Just over half of votes cast were in favour of the $465mn sale to Onex.
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The company announced in March last year that the executive was set to retire.
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The regulator has also paused the redemption of the company’s $20mn Tier 2 floating-rate subordinated notes.
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The company reiterated that, if the sale does not complete, R&Q “may not be able to repay its debt facilities as they become due, and R&Q would, therefore, be unable to continue as a going concern”.
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The company said that the targets were dependent on ‘many factors’, including closing the Accredited sale and paying down debt.
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The executive has been in post since September 2020.
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The R&Q share price has plummeted since the sale of the ~$1.8bn-premium fronting arm was announced 10 days ago.
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The LPT comes less than a week after the legacy carrier agreed the sale of its program management business, Accredited.
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Shares continued to slide in trading on Tuesday, falling by a further 31%.
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The revised status follows the recent announcement that R&Q Insurance Holdings has agreed a sale of its Accredited program.
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R&Q expects ongoing operating losses after the sale as transitions its legacy business to a fee-based model.
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Halfway through a complex restructuring is not the time for a CEO (and CFO) change.
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R&Q CEO William Spiegel will transfer to the Accredited program management business.
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Program management arm Accredited, which is in advanced sale discussions, posted profits of $28.6mn.
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Insurance Insider revealed yesterday that the two firms were in advanced talks over a potential transaction.
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Goldman Sachs’ private equity arm and Atlas Merchant are no longer involved in the process, sources said.
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It is understood that the three firms are in the late stages of the process, with a September deal targeted.
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Jerome Lande is deputy CIO and managing partner at Scopia Capital Management.
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The downgrade and withdrawal follows R&Q’s request to no longer participate in AM Best’s interactive rating process.
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Scopia nominated Jerome Lande as its representative to be appointed to the R&Q board, subject to due diligence checks.
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The CEO received $3.9mn in shares alongside his salary and bonus.
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The carrier’s legacy business reported pre-tax losses of $56.6mn, while its Accredited business recorded a pre-tax profit of $55.7mn.
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The agency maintained the financial strength rating of A- for Accredited, reflecting a "very strong" balance sheet.
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Accredited and R&Q Legacy will now operate under two separate holding companies within the group.
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The decision comes after R&Q announced it was looking to separate Accredited, its programme management business, and its legacy insurance business.
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The company is considering separating its program management business Accredited from its legacy division.
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The split of the program and legacy businesses is the most obviously compelling path for R&Q shareholder value creation.
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The company believes the program management and legacy businesses would work better as standalone operations.
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Jeffrey Hayman has been nominated as non-executive chairman.
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After taking a $90mn capital charge relating to the former Ace run-off asbestos book in 2021, the group is looking to liquidate the entity.
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R&Q is selling its 40% minority stake in Tradesman, which it acquired in 2019 following the acquisition of Sandell Re.
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