Insurance group Randall & Quilter Investment Holdings Ltd swung to a profit of £2.8 million ($4 million) last year.

The profit compared to a $1.6 million net loss in 2014 for the Bermudian-based firm.

Operating earnings were £4.1 million, compared to a loss of £0.8 million in the first quarter of 2014.

Shareholders’ equity was £86.5 million at the end of 2015, edging slightly higher from the £86.3 million 12 months earlier, as its book value per share reached 98.5p.

R&Q announced an unchanged distribution of 8.4p.

The firm makes money through acquiring or reinsuring insurers in run-off and through providing a range of specialist insurance services. The group also has a Lloyd’s managing agency and a US admitted carrier called Accredited.

Ken Randall, the company’s chairman and chief executive officer, said performance had picked up strongly in the second half of last year.

“Completion of further legacy transactions during the period was the primary driver and the business overall performed in line with expectations,” Mr Randall said.

“This profitable trading, coupled with strong cash generation means that distributions per share have been maintained at 8.4p for the full year with a final payment of 5.0p due in early June, subject to customary approvals.”

Mr Randall said R&Q was working to simplify its business model by disposing of non-core operations.

He added that the firm planned to focus on core operations, including the acquisition of run-off portfolios and further development of its niche UK services.

“We are pleased with performance of both our Insurance Investments and Insurance Services divisions in the second half of the year, while the scale and profile of our Lloyd’s managing agency benefits from the steady growth of Syndicate 1991 despite challenging underwriting conditions and we continue to attract interest in our Lloyd’s Turnkey Syndicate capability,” Mr Randall said.

“Operating expenses across the group are being addressed and will start to benefit results in the latter part of 2016 and beyond.

“The board has a positive outlook for the current year albeit with the usual second half year bias in profitability. The pipeline of potential legacy acquisitions is very promising with a diverse range of opportunities.”

The earnings statement added: “It is anticipated that a number of other transactions will complete before June 30, especially, but not exclusively in Bermuda.”