R&Q Insurance Holdings Ltd. confirmed it filed on June 21 an application with the Bermuda Supreme Court to appoint provisional liquidators to oversee the liquidation and ultimately the winding up of the company.
R&Q anticipated this process will result in the prompt closing of the sale of the company’s program management business, Accredited, to funds advised by Onex Corp.
“The board believes that this will provide the best possible result in the circumstances for the company’s stakeholders,” R&Q said.
R&Q has faced adverse loss development in its core legacy acquisition business, unexpected costs and expenses connected to the sale of Accredited, as well as the inability to consummate external legacy transactions – all of which put it into a weakened financial state. It announced on Friday, June 21, it would file for liquidation and indeed completed the filing on the same day, according to a statement issued today.
Sale of Inceptum Insurance
In a separate announcement, R&Q said it had agreed to sell its UK-based legacy general acquisition subsidiary, Inceptum Insurance Co. Ltd. to Marco Capital Holdings Ltd., a Malta-based legacy acquisition group, for £11.25 million (US$14.2 million) in cash. Inclusive of the impact of the novation of the reinsurance arrangements, the transaction is expected to generate approximately £13 million (US$16.4 million) of liquidity for the company.
R&Q said the transaction is conditional on the completion of the previously announced sale of the shares in Accredited to Onex. The transaction also is subject to the completion of certain reinsurance agreements between R&Q entities, Accredited Insurance Europe Ltd. (AIEL), and R&Q Re (Bermuda) Ltd. – as well as Inceptum being novated to Marco Re Ltd.
The sale has already received necessary R&Q board approvals, but is subject to change of control approval by the UK Prudential Regulation Authority (PRA) and other regulatory approvals required for the reinsurance agreements.
The agreement represents the sale of 100% of the shares of Inceptum to Marco, alongside the novation of any related reinsurance arrangements with other R&Q entities (including AIEL).
As of Dec. 31, 2023, Inceptum had estimated net assets of £19 million ($24 million) and generated a loss during the year of £2 million ($2.5 million).
The cash proceeds from the sale of the shares in Inceptum will be received on completion, which is anticipated to occur during the third quarter of 2024.
Related:
Was this article valuable?
Here are more articles you may enjoy.
Bagikan Berita Ini
0 Response to "R&Q Files for Provisional Liquidation in Bermuda; Agrees to Sell Legacy Unit Inceptum - Insurance Journal"
Post a Comment