R&Q Insurance Holdings Ltd Update on discussions with the BMA (7001X)

TIDMRQIH

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: [phone] 
    Jeff Hayman 
    William Spiegel 
    Tom Solomon 
 
    Fenchurch Advisory Partners LLP (Financial Adviser) Tel: [phone] 
    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 : [phone] 
    Rob Bredahl 
    Leo Beckham 
 
    Deutsche Numis (Nominated Adviser and Joint Broker) Tel : [phone] 
    1000 
    Charles Farquhar 
    Giles Rolls 
 
    FTI Consulting Tel: [phone] 
    Tom Blackwell 
 
 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCFEWSSEEDSESE

(END) Dow Jones Newswires

December 22, 2023 02:00 ET (07:00 GMT)