R&Q
-
The company is still working to get debt holder approval for the Accredited deal.
-
The company reiterated its commitment to consummating the Accredited sale.
-
The Lloyd’s legacy business has been placed up for sale, along with other units.
-
R&Q is still dealing with a Bermudian regulatory review, personnel turnover and a transitioning business model.
-
Just over half of votes cast were in favour of the $465mn sale to Onex.
-
The company announced in March last year that the executive was set to retire.
-
The regulator has also paused the redemption of the company’s $20mn Tier 2 floating-rate subordinated notes.
-
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”.
-
The company said that the targets were dependent on ‘many factors’, including closing the Accredited sale and paying down debt.
-
The executive has been in post since September 2020.
-
The R&Q share price has plummeted since the sale of the ~$1.8bn-premium fronting arm was announced 10 days ago.
-
The LPT comes less than a week after the legacy carrier agreed the sale of its program management business, Accredited.
-
Shares continued to slide in trading on Tuesday, falling by a further 31%.
-
The revised status follows the recent announcement that R&Q Insurance Holdings has agreed a sale of its Accredited program.
-
R&Q expects ongoing operating losses after the sale as transitions its legacy business to a fee-based model.
-
Halfway through a complex restructuring is not the time for a CEO (and CFO) change.
-
R&Q CEO William Spiegel will transfer to the Accredited program management business.
-
Program management arm Accredited, which is in advanced sale discussions, posted profits of $28.6mn.
-
Insurance Insider revealed yesterday that the two firms were in advanced talks over a potential transaction.
-
Goldman Sachs’ private equity arm and Atlas Merchant are no longer involved in the process, sources said.
-
It is understood that the three firms are in the late stages of the process, with a September deal targeted.
-
Jerome Lande is deputy CIO and managing partner at Scopia Capital Management.
-
The downgrade and withdrawal follows R&Q’s request to no longer participate in AM Best’s interactive rating process.
-
Scopia nominated Jerome Lande as its representative to be appointed to the R&Q board, subject to due diligence checks.
-
The CEO received $3.9mn in shares alongside his salary and bonus.
-
The carrier’s legacy business reported pre-tax losses of $56.6mn, while its Accredited business recorded a pre-tax profit of $55.7mn.
-
The agency maintained the financial strength rating of A- for Accredited, reflecting a "very strong" balance sheet.
-
Accredited and R&Q Legacy will now operate under two separate holding companies within the group.
-
The decision comes after R&Q announced it was looking to separate Accredited, its programme management business, and its legacy insurance business.
-
The company is considering separating its program management business Accredited from its legacy division.
-
The split of the program and legacy businesses is the most obviously compelling path for R&Q shareholder value creation.
-
The company believes the program management and legacy businesses would work better as standalone operations.
-
Jeffrey Hayman has been nominated as non-executive chairman.
-
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.
-
R&Q is selling its 40% minority stake in Tradesman, which it acquired in 2019 following the acquisition of Sandell Re.
-
The R&Q founder had been linked to 777 since its attempted acquisition of the listed firm.
-
Among the programmes accredited, R&Q agreed its first in Germany.
-
Going forward, the legacy M&A division will be led by co-heads Huw Battrick and Parri Spector.
-
The executive chairman has sold around half of his holding back to the company.
-
The pair have acquired an MSA subsidiary that holds product liability claims for exposure to harmful substances.
-
The LPT will provide the unnamed California-based pool with reserves related to legacy general liability, employment practices liability and auto liability risks.
-
The carrier also reported a fee income of $60mn, up from $30mn in the nine-month period ended 30 September 2021.
-
Huw Battrick replaces Tom Dixon, who left R&Q earlier this year after more than six years at the carrier.
-
Activist investors had tabled resolutions to oust William Spiegel as executive chairman and appoint Ken Randall as a director.
-
The carrier’s programme management business’ GWP rose by 82% to $807.3mn.
-
Phoenix’s original letter, penned by CIO and co-founder Gary Channon last week, described the carrier as being “not competently led” by executive chairman William Spiegel.
-
Research from this publication exposed a dearth of female leadership in the Lloyd’s market.
-
CIO Gary Channon claimed R&Q executive chairman William Spiegel is lacking in “competence, alignment and integrity”.
-
The executive has come under fire from the company’s two largest shareholders, which are calling for his removal.
-
Five of R&Q’s top 10 shareholders have now come out in support of the executive chairman, while two activist shareholders seek his removal.
-
Alastair Campbell, current senior independent director, will remain an independent director and retire as planned on 31 January 2023.
-
Abrdn manages funds owning approximately 6.2% of the outstanding shares of R&Q.
-
Plus the latest on the FCA backlog, exclusive people moves and all the top news of the week.
-
A very public shareholder dispute is taking centre stage at a firm in transition.
-
The investor now has a ~9% holding in the legacy specialist.
-
In an open letter, the asset manager said investors had seen the performance of the business deteriorate under the leadership of William Spiegel.
-
The carrier also increased its GWP by 82%, raising it to $807mn in H1 2022 compared to $445mn last year.
-
The ratings were removed from under review with negative implications after the legacy and programme specialist successfully executed a capital raise.
-
The two carriers have injected a further $100mn into the underwriting project.
-
-
The legacy and programme specialist has also changed its name to R&Q Insurance Holdings.
-
The legacy specialist started the fundraise in the wake of a collapsed takeover by Brickell.
-
The longevity specialist had sought to sell on R&Q shares pledged to it as collateral.
-
The price is a 14% premium on yesterday’s close but substantially below the price that Brickell offered to take the firm private.
-
The settlement is a “contribution towards costs” from R&Q to Brickell but not an “admission of liability by either party”.
-
The investment management firm holds a 12.4% stake in the company.
-
The company also gave further details on its planned $100mn fundraise.
-
The legacy carrier’s program fee income was $18mn, a 125% year-on-year increase.
-
The review follows the move by Brickell to terminate its acquisition plans, as AM Best noted an expected 2021 loss for R&Q of $135mn-$145mn.
-
Plus latest people moves and all the top news of the week.
-
The company must launch a $100mn placement against the backdrop of a failed takeover deal and a 40% share price collapse.
-
The legacy and program specialist is pursuing a $100mn rights issue after the collapse of its sale to 777 Partners-owned Brickell.
Most Recent
-
RSA, CNA settle ExCel Covid BI lawsuit
19 April 2024 -
RSA refocuses cyber capacity to InsurTech MGA Resilience
19 April 2024 -
Hadron aims for UK and Europe to make up half business
19 April 2024 -
HDI elevates Hensel to CUO
18 April 2024