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R&Q Insurance Holdings Ltd on Friday said it has invested in a joint venture, formed with Obra Capital Inc, to buy legacy liabilities of MSA Safety for a disclosed sum.
R&Q Insurance is a Bermuda-based specialty non-life insurer formerly known as Randall & Quilter Investment.
The joint venture is a wholly-owned subsidiary of global safety equipment manufacturer MSA Safety Incorporated.
R&Q Insurance said the acquired subsidiary holds legacy product liability claims relating to coal dust, asbestos, silica, and other exposures. MSA Safety contributed about $341 million in cash to the company, in addition to related insurance assets, and the joint venture contributed $35 million.
As a result of the transaction, R&Q will provide claims and management services and Obra will provide investment management services to the newly acquired subsidiary.
R&Q Executive Chair William Spiegel says: ‘We are pleased to form a joint venture with Obra to acquire and professionally manage these legacy liabilities, providing MSA Safety with a complete finality solution. This is an exciting transaction for R&Q, showcasing the capabilities, reputation and innovation of our Legacy Insurance business. This will see our reserves and non-insurance liabilities under management increase to over $1 billion, comprising two pools: traditional insurance reserves via Gibson Re, and non-insurance legacy liabilities.’
Shares were down 0.6% at 58.62 pence each on Friday morning in London.
By Xindi Wei, Alliance News reporter
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