Randall & Quilter buys Constantia for £1.5m in cash
AIM-listed Randall & Quilter has acquired Constantia Insurance Company, a captive company now in run-off, from Old Mutual, for £1.5m in cash, which will be financed from existing resources.
Regulatory approval for the acquisition has been granted and Constantia will be amalgamated into Capstan Insurance Company Limited, R&Q's consolidation vehicle in Guernsey, subject to necessary consents.
Constantia wrote professional indemnity & crime programme insurance from 2003 to 30 April 2017 to various OM Group companies.
Randall said the agreed purchase price represents a small discount to Constantia's pro-forma net assets of £3.4m. In the year to the end of December 2016, Constantia reported a pre-tax loss of £2.4m.
Chairman and chief executive officer Ken Randall said: "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. This continues our excellent track record of acquiring captive insurance companies and we remain excited about our legacy acquisition pipeline."
At 0910 GMT, the shares were up 0.8% to 133.50p.