Randall & Quilter buys Bermuda group
Article Date: Jan 05 2009Insurance run-off specialist Randall & Quilter is paying £4.7 million for Bermudan insurance accountant and management services provider Quest Group.
AIM-quoted Randall is buying Quest, which serves clients in the captive non-life insurance sector, for US$6.9 million, which the company says will come from 'existing resources’. The US group, which is ranked fourth in insurance tax-haven Bermuda by a number of companies under management, made $900,000 pre-tax in 2007 on revenues of £3.93 million, will be ‘earnings enhancing’ this year, says Randall, which doubled first-half profits last year to £4.4 million pre-tax.
Jerry McArthur, Randall’s US and Bermuda chief, describes the takeover as ‘a decisive step forward for us into the Bermudan insurance market’. He maintains the acquisition ‘will also enable Randall & Quilter to source run-off and debt acquisition opportunities and provide risk capital solutions to clients seeking to restructure their balance sheets across one or more of these markets’.
Floated in December 2007 at 125p, Randall’s shares reached 152.5p last June. They now trade at 131p, valuing the company at £73.25 million.
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