Strategic Initiative to Separate Program Management and Legacy Insurance & Trading Update

About this update from Randall & Quilter Investment Holdings Ltd.

[{"type":"text","content":" R&Q Insurance Holdings Ltd Strategic Initiative to Separate Program Management and Legacy Insurance & Trading Update 4 April 2023R&Q Insurance Holdings Ltd, (AIM-RQIH) (“R&Q” or the “Group”), the leading non-life global specialty insurance company focusing on Program Management and Legacy Insurance businesses, announces that the Board of R&Q is reviewing strategic options to separate its Program Management business, Accredited, and its Legacy Insurance business. In addition, R&Q also provides a trading update on the Group’s expected operating performance for the financial year ended 31 December 2022. Strategic Initiative to Separate Accredited and Legacy Insurance R&Q’s Program Management business, Accredited, has grown significantly over the past three years, achieving record Gross Written Premium and Fee Income (excluding minority stakes in MGAs) of $1.8 billion and $80 million, respectively, in 2022. It is now one of the largest program managers globally.Accredited relies on an ‘A’ credit rating to conduct business and historically relied on the financial strength of the broader Group to obtain its credit rating. However, given Accredited’s current size and scale, R&Q believes it is in the best interests of R&Q’s shareholders for Accredited to stand on its own. Therefore, the Board of R&Q is reviewing strategic alternatives to separate Accredited and Legacy Insurance, which will include a legal reorganisation followed by strategic transactions with third parties to achieve this objective. R&Q expects the separation will set each of Accredited and Legacy Insurance on more favourable footing to deliver profitable growth, each with their own appropriate capital structures.The legal reorganisation is subject to regulatory and lender consents, which R&Q expects to obtain in Q2 2023.Preliminary FY 2022 Trading Update Based on preliminary and unaudited information, R&Q anticipates that it will realise a Pre-Tax Operating Profit (Loss) for the financial year ended 31 December 2022 of $(30)-(40) million, comprising $55-60 million in Program Management, $(55)-(60) million in Legacy Insurance and ~$(35) million in Corporate and Other, which is primarily interest expense.1Program Management Program Management is expected to realise a Pre-Tax Operating Prof...

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