Results for the year ended 31 December 2021

About this update from Randall & Quilter Investment Holdings Ltd.

[{"type":"text","content":"Randall & Quilter Investment Holdings Ltd Results for the year ended 31 December 2021  13 June 2022Randall & Quilter Investment Holdings Ltd. (AIM: RQIH) (“R&Q” or the “Group”), the leading non-life global specialty insurance company focusing on the Program Management and Legacy Insurance businesses, today announces its audited results for the year ended 31 December 2021.Strategic Update  Shareholders did not approve the proposed cash acquisition of R&Q at 175 pence per share, which included $100 million of committed capital for R&QR&Q is now focussed on raising at least $100 million via a placing and up to $8 million via an open offer (the “Fundraise”), which will be announced today FY 2021 Financial Highlights  Program ManagementGross Written Premium of $1.0 billion (2020: $539 million, a 92% increase)Fee Income of $56.1 million (2020: $24.1 million, a 133% increase)Pre-Tax Operating Profit of $20.6 million (2020: $3.4 million, a 506% increase)Pre-Tax Operating Profit Margin of 35.7% (2020: 14.3%, a 21.4 percentage point increase) Legacy Insurance Completed 15 transactions with Gross Reserves Acquired of $735 millionReserves Under Management of $417 millionFee Income of 4.25% or $17.7 million beginning in 2022 as legacy transactions ceded to Gibson Re were concluded at year-end 2021Pre-Tax Operating Loss of $5.7 million due to $29 million of adverse development and transformation from upfront ‘Day-One’ Underwriting Income to annual recurring Fee-IncomeGroupPre-Tax Operating Loss of $21.0 million results impacted by:Legacy Insurance business model transformation$29 million of adverse reserve developmentIFRS Loss of $127.4 million; results primarily impacted by a ~$90 million pre-tax, non-cash chargeA final dividend for FY 2021 will not be declared; from FY 2022 onwards, the dividend strategy will be to payout 25-50% of Pre-Tax Operating Profit Outlook Program Management expected to achieve $1.75 billion of Gross Written Premium in 2022Q1 2022 Gross Written Premium of $370 million; 92% year-over-year growth76 programs at 31 March 2022 (an increase of 7 programs from 31 December 2021)Legacy Insurance transactions continue to have heavy weighting towards Q4Year-to-date two legacy transactions have been completedStrong pipeline of activity on which we expect to ea...

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