LONDON: Randall & Quilter Investment Holdings Ltd. (R&Q) announced that its wholly owned subsidiary, Randall & Quilter II Holdings Limited, has signed an agreement to acquire the entire issued share capital of The World Marine & General Insurance Company PLC (WMG) from BHP Group Limited.

World Marine & General Insurance Company PLC (WMG) was incorporated in England & Wales in 1894 and was purchased by BHP in 1987.

BHP is a world-leading resources company which focuses on the extraction and processing of minerals, oil and gas worldwide. WMG wrote various insurance coverages since incorporation and from 1987 the Company provided insurance protection solely for the BHP Group until it was placed into run-off in 2001.

Commenting on today’s announcement, Paul Corver, Group Head of M&A at R&Q, said: “We are very pleased to have agreed  terms to provide an exit to BHP for their owned insurance company. BHP are one of a number of companies with whom we are discussing exit or restructuring solutions for their captives.

Current market conditions are causing companies to look closer at the capital tied up in their captives and whether it can be released to distribute to the parent or recycled to support new business lines. Disposal of legacy liabilities can achieve either of these ambitions. This is our second executed acquisition agreement for a UK insurer this week, demonstrating R&Q’s reputation as a counterparty of choice in the UK market. We are expecting to announce further transactions in the coming period.”

R&Q is a non-life global specialty insurance company operating two core, highly complementary, businesses: Program Management and Legacy Insurance. Both these businesses are leaders in markets with high barriers to entry and significant secular growth opportunities. 

Legacy Insurance generates profits and capital extractions from expert management of legacy non-life insurance portfolios. Program Management generates commission income from its licensed (and rated) carriers in the US, EU and the UK, writing niche and profitable program business, largely on behalf of highly rated reinsurers.

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