R&Q Insurance Holdings has agreed to sell its subsidiary Inceptum Insurance Company to Malta-based legacy acquisition group Marco Capital Holdings for £11.25m ($14.28m) in cash.
The sale of Inceptum, a UK-based legacy general insurance company, is expected to enhance R&Q’s liquidity by approximately £13m.
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This deal is contingent on the completion of R&Q’s previously announced divestiture of Accredited Insurance Europe and R&Q Re (Bermuda) shares to Onex.
The anticipated completion date for the Inceptum deal is the third quarter of the current year, with cash proceeds to be received upon closing.
This transaction includes the novation of certain reinsurance agreements to Marco Re and has secured the clearance of the R&Q board.
It now awaits other regulatory consents, including change of control approval by the Prudential Regulation Authority.
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By GlobalDataReinsurance News quoted Marco CEO Simon Minshall as saying: “Marco specialises in complex situations, and we are pleased to be of assistance to R&Q in simplifying their group structure.”
“PPOs in particular are a class of claims where we have developed a specialisation and have acquired portfolios while Employers Liability is an area of technical excellence for our venture PoloPartners, and the transaction overall provides a good outcome for all stakeholders.”
R&Q operates in the specialty non-life insurance sector, focusing on Program Management and Legacy Insurance.
The company’s subsidiary Inceptum, which was part of HSBC Insurance (UK) until 2011 and entered run-off in 2009, was acquired by R&Q in 2020.
Inceptum’s claims portfolio is predominantly in Motor and UK Employers’ Liability.
The company, with net assets estimated at £19m as of 31 December 2023, reported a loss of £2m for the year.
This sale follows R&Q’s application for liquidation in Bermuda, which is expected to facilitate the swift closure of its programme management business sale to Onex.
R&Q’s board believes this course of action will offer the best outcome for stakeholders.
