REG - R&Q Insurance Hldgs - Update on discussions with the BMA

R&Q Insurance HoldingsAnnouncement

22/12/2023 07:00

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RNS Number : 7001X  R&Q Insurance Holdings Ltd  22 December 2023

 

 

 

R&Q Insurance Holdings Limited

 

Update on discussions with the BMA

 

22 December 2023

 

R&Q Insurance Holdings Ltd (AIM-RQIH) ("R&Q" "the Group") today
provides an update on discussions with The Bermuda Monetary Authority ("BMA"),
the Group's principal insurance regulator.

 

R&Q has, over recent months, engaged closely with the BMA regarding the
future strategy for R&Q Legacy, given the proposed sale of Accredited
("the Sale"). As part of these discussions the BMA has requested an
independent actuarial review of the required reserves of the remaining Group
post the Sale, its capital and its cash flow projections.

 

The BMA has now notified R&Q that it will need to:

·      Pause the redemption of the Tier 2 US$20 million floating rate
subordinated notes issued by R&Q Re (Bermuda) Limited which are treated as
Tier 2 capital for solvency (the "Bermuda Subordinated Notes") due on 22
December 2023. Accordingly, the Bermuda Subordinated Notes remain outstanding
on their terms and R&Q Re (Bermuda) will continue to pay interest on such
notes as it accrues.

·      Put on hold the approval of any new external legacy transactions
to R&Q Re (Bermuda) while the BMA undertakes its review of R&Q Legacy.
This includes the UK Motor loss portfolio transfer announced 26 October 2023.

 

Although these decisions by the BMA and the BMA's review will impact R&Q
Legacy's ability to complete certain transactions in the short term, the Board
remains firmly committed to the legacy plan outlined in the circular published
on 14 December 2023. The Board reiterates its belief that a successful Sale
represents the best outcome for all stakeholders, including enabling R&Q
to undertake a material financial de-leveraging to support the strategy of
transitioning the Legacy business to a capital efficient and stable recurring
fee-based business model.

 

Ends

 

This announcement contains inside information as stipulated under the UK
market abuse regulation no 596/2014, which is part of English law by virtue of
the European (withdrawal) act 2018, as amended.  On publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

 

 Enquiries to:

R&Q Insurance Holdings Ltd

 Tel: +44 (0)20 7780 5850

 Jeff Hayman

 William Spiegel

 Tom Solomon

 Fenchurch Advisory Partners LLP (Financial
 Adviser)                              Tel: +44
 (0)20 7382 2222

 Kunal Gandhi

 Brendan Perkins

 John Sipp

 Richard Locke

 Tihomir Kerkenezov

 Barclays Bank PLC (Financial Adviser and Joint
 Broker)                          Tel: +44 (0)20 7632
 2322

 Gary Antenberg

 Richard Bassingthwaighte

 Anusuya Nayar Gupta

 Grant Bickwit

 Howden Tiger (Financial Adviser)

 Tel : +44 (0)20 7398 4888

 Rob Bredahl

 Leo
 Beckham

 Deutsche Numis (Nominated Adviser and Joint
 Broker)                           Tel : +44 (0)20
 7260 1000

 Charles
 Farquhar

 Giles
 Rolls

 FTI
 Consulting
     Tel: +44 (0)20 3727 1051

 Tom
 Blackwell

 

 

 

 

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