Diverse insurance group Randall & Quilter Investment (R&Q) has agreed to acquire Global U.S. Holdings from AXA DBIO, a subsidiary of investment funds managed by AXA Liabilities Managers, for about $80.5m in cash.
R&Q said that it will fund the deal through cash at hand and debt facilities.
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Global U.S. Holdings manages Global Reinsurance Corporation of America (Global Re US), which went into run-off in August 2002. The company was purchased by an investment vehicle managed by AXA LM in June 2014.
Global Re US had total assets of $260m, gross reserves of $146m and $107m of shareholders’ equity as of 31 December 2017.
Upon completion of acquisition, Global Re US will be managed by R&Q, which specialises in managing US asbestos, pollution and health hazard (APH) exposures.
Pending receipt of regulatory approval from the New York Department of Financial Services, the acquisition is scheduled to be completed by the end of 2018.
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By GlobalDataR&Q chairman and CEO Ken Randall said: “It is a significant legacy transaction for the Group and, with a continuing pipeline of further potential acquisitions, we anticipate an active second half of the year.”
Separately, R&Q’s wholly-owned European insurance company Accredited Insurance (Europe) has agreed to acquire the entire issued share capital of MPS Risk Solutions (MPSRS) for £16m in the UK.
R&Q will fund the cash deal through its existing resources.
Accredited Insurance will buy MPSRS from its owners The Medical Protection Society (MPS). In January 2004, MPSRS was established as a UK authorised insurer subsidiary of MPS. The company stopped active underwriting in October 2012.
Ken Randall said: “We are delighted to have agreed terms to acquire MPSRS. R&Q takes pride in assisting companies to dispose of companies in run-off and providing finality for the owners. We expect to announce a number of additional acquisitions before year-end.”
