R&Q Insurance Holdings is set to enter provisional liquidation in Bermuda as it grapples with financial difficulties, the company announced. This decision comes amidst challenges including adverse loss developments in its legacy acquisition business, unforeseen expenses from the planned sale of its programme management division, Accredited, and unsuccessful external legacy transactions.
Simultaneously, R&Q Insurance confirmed that the sale of Accredited to Onex will proceed as originally outlined. Accredited, operating in the US, UK, and Europe, is renowned for its insurance services covering both admitted and non-admitted business across the United States.
The move towards liquidation was proposed by Canadian private equity firm Onex after encountering obstacles in the initial sale agreement due to R&Q Insurance’s financial predicament. Discussions are ongoing between the involved parties to finalize the deal under the terms initially announced in October 2023.
Under the proposed arrangement, Onex is slated to acquire Randall & Quilter America Holding, Accredited’s parent company, for $465 million. R&Q Insurance’s board deemed the alternative proposal as the most viable option to preserve value at this juncture, citing the company’s current cash resources and strategic evaluation.
According to R&Q Insurance, “The implementation of the Alternative Proposal will involve the company filing for provisional liquidation in Bermuda, with the sale of Accredited to Onex anticipated to proceed through this process. The provisional liquidators will subsequently work towards realizing value from the company’s remaining assets, culminating in the winding up of the residual entity.”
R&Q Insurance has undertaken efforts to restructure its operations by raising capital and divesting assets. The proceeds from the sale of Accredited are intended to alleviate the company’s debt burden. In April 2024, R&Q Insurance finalized an agreement to divest its joint venture interest in Sag Main to its joint venture partner, Obra.
