R&Q novates four loss portfolio transfer agreements
Bermudian-based Randall & Quilter Investment Holdings Ltd has completed the novation of four loss portfolio transfer agreements managed by Armour Risk Management Ltd previously in place between ILS P&C Re and various entities within the QBE Group.
The company said two of the agreements have been novated to R&Q Re Bermuda Ltd and two to R&Q’s wholly owned Lloyds’ Run-off Syndicate 1110.
R&Q said these entities will now provide QBE with the protection under the novated reinsurance agreements. Novation is an agreement to replace one party to an insurance policy or reinsurance agreement with another company from inception of the coverage period. The novated contract replaces the original policy or agreement.
The company said the four portfolios consisted of more than £75 million of reserves relating to insurance and reinsurance employer’s liability and public liability risks mainly emanating from the UK and Ireland, underwritten by the QBE Group prior to 2008 in its company and syndicate businesses.
R&Q, through its established group structure, said it has been able to offer economic finality to novate existing loss portfolio transfers covering business written across several platforms and jurisdictions and has taken over the claims management of the business.
Utilising the wider group entities, R&Q will commence various transfer mechanisms in both the UK and EU to provide full finality to the QBE Group for these portfolios, including a Part VII transfer, the company said.
Paul Corver, group head of M&A at R&Q, said: “We are thrilled to have been able to provide an exit solution for the investors behind ILS P&C Re.
“The novation includes multiple portfolios across various classes of business, platforms and jurisdictions showing the ability of R&Q to utilise its extensive group structure to provide a range of finality solutions.
“We are pleased that R&Q continues to be a market of choice for such transactions and look forward to working with QBE to also provide them with legal finality.”
R&Q is a non-life global specialty insurance company focusing on programme management and legacy insurance businesses.
Headquartered and operating in Bermuda with extensive operations in the US and Europe, it provides finality solutions for run-off portfolios and global programme capacity for MGAs and their reinsurers.