R&Q Insurance Holdings has announced its intention to file for provisional liquidation in Bermuda amid financial challenges.
Concurrently, the company confirmed that the sale of its programme management division, Accredited, to Onex will proceed as planned.
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Accredited, which operates across the US, UK, and Europe, is known for its insurance services, including both admitted and non-admitted business throughout the US.
This development follows R&Q Insurance’s struggle with adverse loss development in its legacy acquisition business, unexpected costs from the Accredited sale, and failed external legacy transactions.
Last week, Canadian private equity company Onex proposed the liquidation as an alternative when the original sale agreement faced obstacles due to R&Q’s financial hurdles.
Discussions between R&Q Insurance, Onex, and their representatives continued, aiming to finalise the deal with its initial terms, announced in October 2023.
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By GlobalDataThe original deal stated that Onex would acquire Randall & Quilter America Holding, the parent company of Accredited, for $465m.
In a statement, R&Q Insurance said: “Following the board’s exploration and evaluation and taking all other relevant factors into consideration, including the cash resources currently available to the company, the board has concluded that the alternative proposal represents the best option to secure value at this time.
“The implementation of the Alternative Proposal will involve the company filing for a provisional liquidation in Bermuda and the board expects the sale of Accredited to Onex to then be implemented through that process. The provisional liquidators would then look to realise value from the company’s remaining assets, at the end of which the remaining company would be wound up.”
R&Q Insurance has sought to restructure by raising capital and selling assets, intending to use the Accredited sale proceeds to reduce its debt.
In April 2024, R&Q Insurance reached an agreement to divest its joint venture (JV) interest in Sag Main to its JV partner Obra.
