Bermudian-based Randall & Quilter Investment Holdings Ltd has reported a loss of $127.4 million for fiscal year 2021.

That compares with a profit of $37.7 million in the prior year.

The group IFRS loss was primarily impacted by a $90-million pre-tax, non-cash charge, the company said.

The non-life global specialty insurance company focuses on the programme management and legacy insurance businesses.

The programme management sector reported higher gross written premium of $1 billion (2020: $539 million, a 92 per cent increase).

Fee income was up to $56.1 million (2020: $24.1 million, a 133 per cent increase).

Pre-tax operating profit was $20.6 million (2020: $3.4 million, a 506 per cent increase).

The pre-tax operating profit margin was 35.7 per cent (2020: 14.3 per cent, a 21.4 percentage point increase).

The legacy insurance sector completed 15 transactions with gross reserves acquired of $735 million.

Reserves under management are $417 million.

The sector had a pre-tax operating loss of $5.7 million due to $29 million of adverse development and transformation from upfront “day-one” underwriting income to annual recurring fee-income.

The group had a pre-tax operating loss of $21 million, results impacted by the legacy insurance business model transformation and $29 million of adverse reserve development, compared with a pre-tax operating profit of $20.6 million in the prior year.

William Spiegel, executive chairman of R&Q, said: “2021 was a significant year for R&Q as we outlined an ambitious five-year strategy that will see us transform into a fee-based, capital lighter business.

“This strategy will deliver higher quality and more predictable profits in both legacy insurance and programme management, while also enabling us to better leverage our leading underwriting and origination capabilities. In turn, this will support our goal to further develop the compelling opportunities we have identified for these businesses.

“We have already taken major strides in delivering against this strategy including the launch of Gibson Re, ongoing momentum in programme management and a number of organisational improvements which will make us more efficient, strengthen our culture and enhance our risk management. We also have under way a series of projects as part of our goal to be a more data-driven business.”

He added: “I am pleased to report continued momentum in our two core businesses.

“Programme management is now fully demonstrating its fee earning power, with pre-tax operating profit increasing nearly fivefold to $21 million, and we expect it to achieve $1.75 billion of gross written premium this year – one year ahead of schedule.

“Legacy insurance continues to benefit from attractive market dynamics, completing 15 deals with gross reserves acquired of $735 million.

“With the launch of Gibson Re, legacy insurance is in the process of moving to a recurring fee model and at year-end 2021 had reserves under management of $417 million on which we will earn a 4.25 per cent annual fee, alongside potential performance fees.”