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R&Q Insurance Holdings Ltd - Hamilton, Bermuda-based non-life specialty insurance - Raises up $60 million in new equity from funds affiliated with largest shareholder Scopia Capital Management, as separates program management business from legacy insurance business. The Scopia funds invest $50 million in non-voting, perpetual preferred equity issued by Randall & Quilter PS Holdings Inc, an indirect wholly-owned subsidiary of R&Q. This amount can be raised to $60 million. The preferred shares can exchanged for ordinary shares of R&Q Insurance at 60.98 pence per share. R&Q also says its plan announced in April to put its two operating arms into separate holding companies within the group has received all necessary approvals. A process to sell Accredited, the programme management business, is underway, R&Q says, with interest received from ‘a number of parties’. Meanwhile, the funds from the equity raise will be used to increase the capitalisation of R&Q Legacy, the legacy insurance business, and for general purposes, as Accredited is no longer paying intra-group dividends in order to build up its own financial strength rating. Accredited records $500 million in gross written premium in the first quarter of 2023, up 34% from a year before, while its program fee income rises by 24% to $22 million. Current stock price: 56.51p, down 1.5% on Monday in London 12-month change: down 40% Copyright 2023 Alliance News Ltd. All Rights Reserved.
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