RQIH Ltd : Part VII Transfer of Chevanstell

Randall & Quilter Investment Holdings Ltd

Randall & Quilter completes Part VII Transfer of Chevanstell & other insurance company mergers

13 January 2014

Randall & Quilter Investment Holdings Ltd ("R&Q") is pleased to announce that the UK Court recently sanctioned the Part VII Transfer of the entire business of Chevanstell Limited to R&Q Insurance (Malta) Limited ("RQIM") and this transfer is now effective.

RQIM was incorporated in February 2013 and has been authorised by the Malta Financial Services Authority since June 2013.  As recognised by  Mr. Justice Norris in his summing up at the sanction hearing, RQIM will now act as the Group's regulated European run-off insurance consolidator, both for its existing EEA (European Economic Area) based owned insurance companies and for future EEA based run-off transactions. RQIM is fully licensed for all non-life classes across the EU, thereby greatly enhancing and accelerating the Group's ability to execute a wide variety of legacy related transactions, ranging from portfolio transfers and mergers to loss portfolio transfers (reinsurances).

With the Chevanstell transfer now complete, RQIM has a strong financial balance sheet to support future transactions and discussions are underway with a number of parties.  Aside from transactions with third parties, it is envisaged that RQIM will absorb other R&Q owned insurers, namely Principle Insurance Company Limited and Alma Vakuutus OY, subject to relevant regulatory and Court approvals.  The rationalisation and simplification of R&Q's structure is a key objective ahead of the 2016 implementation of Solvency II and should bring considerable capital and operational efficiencies to the Group.

Ken Randall, Chairman and CEO of R&Q, commented, "As planned, the Group has been very active during the past year with structural reorganisation.  This has included the redomicile of the parent company to Bermuda and the rationalisation of our European owned insurance companies as outlined above. As consolidation of our EEA based insurers continues, it will bring about significant capital and regulatory efficiencies for the Group. Above all, we are excited by the fact that the new Maltese company cements R&Q's position as an efficient and flexible force in the provision of Europe wide run-off solutions."

Aside from the Chevanstell transfer, R&Q has further rationalised the structure of its Insurance Investments Division by merging both R&Q Reinsurance Company (Belgium) and newly acquired La Reassurance Intercontinentale SA into La Licorne Compagnie de Reassurances SA. This has been done to consolidate the Group's unregulated run-off reinsurers and to provide a consolidation vehicle for future acquisitions of this type.  Finally, the Group's remaining Belgian company, La Metropole Compagnie Belge d'Assurance SA, has now extinguished its last claims and is in a voluntary liquidation process.

Enquiries to:

Randall & Quilter Investment Holdings Ltdwww.rqih.com

Tom Booth                                                                          Tel: + 1 441 247 8330

Numis Securities Limited

Stuart Skinner/Robert Bruce (Nominated Adviser)            Tel: 020 7260 1000

Charles Farquhar (Broker)                                                 Tel: 020 7260 1000

Shore Capital Stockbrokers Limited

Dru Danford/Stephane Auton                                             Tel: 020 7408 4090

FTI Consulting

Edward Berry / Tom Blackwell                                           Tel: 020 7269 7297              

Website

http://www.rqih.com/

Notes to Editors:

About R&Q

Since formation, Randall & Quilter has pursued a buy and build strategy to create a comprehensive range of investment activities and services in the global non-life insurance market and is focused on the following three core areas:

·     Insurance Investments;

·     Insurance Services; and

·     Underwriting Management

The Group:

·     provides a range of services to both the live and legacy (re)insurance markets to support growing businesses and address problematic run-off issues.

·     has a team of up to 400 insurance professionals based in the UK, USA, Bermuda, and Continental Europe with wide service capability in both the 'live' and 'run-off' market;

·     has a current portfolio of 14 insurance companies and captives in run-off (from the UK, US and Continental Europe) with net assets of c.£96.4m as at 30 June 2013

·     owns a Bermuda Class 3A insurance company which currently supports the Group's four syndicate participations;

·     has launched Syndicate 1991 which commenced underwriting from January 1, 2013 with a Capacity of £150m for 2014, provides 'turnkey' management services to Lloyd's syndicate 1897, manages two RITC ('run-off') syndicates and owns and operates 3 MGA business units; and

·     acquires and manages a portfolio of insurance receivables, with a carrying cost of c. £8.9m as at 30 June 2013;

The Group was founded by Ken Randall, Executive Chairman and Chief Executive, and Alan Quilter, Chief Operating Officer and Deputy Group Chief Executive.