R&Q
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The restructuring arrangement is designed to protect creditors. -
ILS investors’ stress over Gibson Re is unlikely to inhibit legacy ILS’s future.
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The Lloyd’s legacy business has been placed up for sale, along with other units.
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The first edition of the vehicle has generated fee income of $29mn to date.
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The CEO received $3.9mn in shares alongside his salary and bonus.
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R&Q launched Bermuda-based reinsurance sidecar Gibson Re with $300mn of capital in September 2021.
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The company believes the program management and legacy businesses would work better as standalone operations.
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The executive chairman has sold around half of his holding back to the company.
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Randall & Quilter’s ambition is to launch additional vehicles once Gibson Re’s $300mn is deployed.
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The deal will also provide $100mn in new equity funding to the legacy carrier.
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The business has reported sustained strong growth in its programs segment.
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The portfolio has no active client relationships and was underwritten from 1969 onwards.
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Gibson Re will be domiciled in Bermuda and reinsure 80% of R&Q’s new qualifying legacy transactions.
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The loss portfolio transfer gave an exit solution to investors in the ILS-backed legacy fund.
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R&Q executives have said managing legacy business on behalf of third parties is part of their strategy going forward.
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The legacy carrier still sees opportunities for large deals through such arrangements.
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A sidecar arrangement would allow the company to finance larger acquisitions, it said
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Ken Randall has stepped down from the role but stays with the group as chairman.
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The carrier completed 17 legacy acquisitions and reinsurance deals in 2018.
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Darren Bailey has been hired by the legacy insurer in a business development role for the firm’s M&A team.
