Randall & Quilter makes acquisitions in UK and US

19th Sep 2018 08:52

(Sharecast News) - Run-off insurance investor Randall & Quilter has agreed to snap up two more businesses, one in the UK and the other in the US.R&Q on Wednesday said it has signed an agreement to acquire MPS Risk Solutions, a UK authorised insurer which ceased active underwriting in October 2012, for £16m in cash - a small discount to the company's net assets of £17.8m.The AIM-listed group, which buys and manages run-off non-life insurance portfolios and global program capacity for brokers and their reinsurers, also signed a definitive agreement to acquire, Global US Holdings, a New York-based subsidiary of investment funds managed by AXA Liabilities Managers.R&Q will acquire Global for approximately $80.5m in cash, funded from the firm's cash and debt facilities.The investment firm believes the acquisition will generate material gains. Should regulatory approval be received before the end of 2018, R&Q expects the acquisition to result in the group's full-year profits being "substantially ahead of market expectations".R&Q's chairman and chief executive Ken Randall said: "R&Q is delighted to agree terms to acquire GLOBAL US Holdings Incorporated. We are very experienced in managing portfolios of this nature which reflects our expertise in managing long-tail US liabilities."As of 0850 BST, R&Q shares had climbed 4.92% to 189.90p.