Randall & Quilter (R&Q) announced it has acquired Constantia Insurance Co. (Guernsey) Ltd., a captive company now in run-off, from Old Mutual plc.
Regulatory approval for the acquisition has been granted and Constantia will be amalgamated into Capstan Insurance Company Ltd., R&Q’s consolidation vehicle in Guernsey, subject to necessary consents.
Constantia wrote professional indemnity and crime program insurance from 2003 to April 2017 for various Old Mutual group companies.
The agreed purchase price is £1.5 million ($2.0 million) and represents a small discount to Constantia’s pro-forma net assets of £3.4 million ($4.6 million), said R&Q in a statement. The transaction will be settled in cash and financed from the R&Q’s existing resources. In the year ended Dec. 31, 2016, Constantia reported a loss before tax of £2.4 million ($3.2 million), R&Q added.
“We are delighted to have acquired Constantia and this continues to demonstrate the ability of R&Q to provide exit solutions for end of life captive insurance companies,” said Ken Randall, chairman and chief executive officer of R&Q.
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