R&q Insurance Share Discussion Threads

[red ninja] 25/3/2022 13:28

See there was a 741,000 number (ie £1million) shares trade today. It was listed as a sell, but it is often not clear whether a trade is a buy or sell.

I've been adding a few at this level although have to admit with all the problems in the world at the moment it's not always clear when is the best point to pick up a few.

[simon gordon] 03/3/2022 14:51

Looks like a new deal:

The Insurer - 2/3/22

R&Q behind $95mn casualty LPT with Hiscox

London-listed Randall & Quilter (R&Q) is the legacy specialist behind Hiscox’s $95mn casualty reinsurance loss portfolio transfer (LPT), The Insurer can reveal.

[lomax99] 03/3/2022 12:29

Plenty patience required here, tempted to average down but put off by the ongoing slide in the share price

[simon gordon] 25/2/2022 15:41

Fred,

Me too!!

Like you say, patience is key.

They are a Champions League team with a Championship rating.

[simon gordon] 25/2/2022 15:39

Pretty strange to keep shareholders in the dark about that sizable deal. I thought in the past all deals done were announced to the market. Had me thinking they might not make the 2021 forecast. Wonder how many Legacy deals they've done since September but not announced.

Last year they issued a Program update on the 22nd February.

Maybe we'll get an update on Program and Legacy in the coming days/weeks.

[fred177] 25/2/2022 15:36

thanks Simon im keeping faith

[simon gordon] 25/2/2022 15:23

First Group - 25/2/22:

Proactive management of Greyhound legacy assets and liabilities

As part of the Greyhound sale in October 2021, we announced that the Group would retain its pensions and insurance legacy liabilities which we would de-risk, as well as Greyhound's property holdings which we would continue to monetise over time. We are pleased to update on significant progress made in both of these areas.

The Group has recently concluded a reinsurance risk transfer agreement that de-risks c.$147m of Greyhound's legacy self-insurance reserves with a subsidiary of Randall & Quilter Investment Holdings Ltd ('R&Q'), a leading non-life global speciality insurance company. Under the agreement, effective 1 December 2021, R&Q indemnifies the Group for these liabilities and any adverse developments on them up to a maximum of $275m. The liabilities covered remain on the Group balance sheet but with an offsetting asset reflecting the risk transfer agreement. The cash cost to the Group of this agreement is modestly better than budgeted for in our guidance for FY22 Adjusted Net Debt1 of c.£10-20m. As a result, the Group's exposure to Greyhound's legacy self-insurance liabilities has reduced to c.$19m of older claims not covered by the risk transfer agreement or recently settled.

[simon gordon] 25/2/2022 15:17

Scottish Business Insider - 25/2/22:

FirstGroup de-risks $147 million of Greyhound liabilities

Scottish transport group also sells more of the US coach company's properties, making around $32m

FirstGroup has concluded a reinsurance deal to de-risk around $147m of Greyhound's legacy self-insurance reserves, and sold three Greyhound properties for around $32m.

As part of the Aberdeen-based transport group's sale of the US coach company in October, it retains pensions and insurance legacy liabilities, which are now being de-risked, alongside property holdings which can be monetised over time.

The reinsurance transaction with Randall & Quilter Investment indemnifies the group for these liabilities and any adverse developments on them up to a maximum of $275m. The liabilities covered remain on the balance sheet, but with an offsetting asset reflecting the risk transfer agreement.

The cash cost is "modestly better than budgeted" for in previous guidance for adjusted net debt of between £10m and 20m. As a result, the group's exposure to Greyhound's legacy self-insurance liabilities has reduced to $19m of older claims not covered by the risk transfer agreement or recently settled.

FirstGroup is now ahead of plan to realise the previously guided $155m in net value from the legacy Greyhound assets and liabilities during 2023 and beyond.

Executive chair David Martin said: "We now have a focused and simplified group and continue to enhance our financial strength and resilience by proactively managing the legacy assets and liabilities associated with last year's portfolio rationalisation."

The market update also noted that current trading is in line with management’s expectations as set out in the half-yearly results on 9 December.....

[fred177] 25/2/2022 14:25

Drifting down limited newsflow on deals etc, no bounce today like most others, patience required

[simon gordon] 06/2/2022 10:04

Some of the highlights since William Spiegel joined:

2020

Q1 - William Spiegel joins RQIH.

Q2 - $100m equity investment by Brickell and Hudson into RQIH at 135p.

Q3 - Pat Rastiello joined as CEO E&S Accredited America. Ben Masel joined as Head of Corporate Development.

Q4 - Thomas Solomon joined as CFO. Michele Briggs joined as Human Resources Chief. Paul Amrose joined as Chief Underwriting of Property at Accredited America. Issue $108m of subordinated debt.

-

2021

Q1 - Dawn Puro joined as Chief Underwriting of Casualty at Accredited America.

Q2 - William Spiegel made Executive Chairman. Rob Thomas joined as Chief Data and Technology Officer. Pat Rastiello becomes President and CEO of Accredited America.

Q3 - Gibson RE seeded with $300m to hold $1.6bn reserves. CFO spent 340K on stock.

Q4 - Andy Pinkes joined as head of Global Legacy. $2bn GWP. ILS market indicated for some of Accredited’s GWP.

-

2022

Q1 - OTC joined to enable share trading in America. First Underwriting £1bn GWP over 5 years for Accredited Europe. Peter Hartt joined as head of Compliance and Regulatory Affairs America.

Q2 -

Q3 -

Q4 -

[simon gordon] 04/2/2022 17:59

Pleasure Martin and thanks for sharing that insight!

It's good to see Pat Rastiello create the Accredited symposium and build a think tank get together for the Accredited posse. I have little doubt that he will build Accredited to be the best in class and number one Program manager in America. The ILS development is interesting and builds the network tighter into the Accredited offering. It looks like we will probably see more multi year agreements going forward and a deeper more engaged network effect.

Here's the website for Ledger Investing Inc an ILS tech platform who are presenting at the symposium:

Ledger is a technology company that is disrupting the financing of the insurance industry. Ledger Investing, Inc. and Ledger Capital Markets, LLC were formed to enable insurers to create substantial value by securitizing insurance risk while providing investors with an opportunity to invest directly in a new and growing asset class. We are backed by a combination of leading tech VCs and strategic insurance industry investors.

[martindjzz] 04/2/2022 17:39

Simon, thanks for directing us to the new Program Manager publication. Having flicked through the first edition, the most interesting article for me was about the launch of AM Best's Performance Assessment for Delegated Underwriting Authority Enterprises. It is a development that over time should drive business towards the quality operators across the sector. Hopefully RQH has plans to enhance its own proposition to MGAs allowing the latter to get a better AM Best PA.

[simon gordon] 04/2/2022 13:48

Accredited are advertising in the digital magazine called Program Manager and have three pages on their inaugural Program symposium in Florida during April.

"Welcome to the relaunch issue of Program Manager

We’re back for 2022 with a new format and a fresh look, but the same comprehensive, in-depth monthly coverage of the program insurance sector featuring plenty of exclusive content.

The program sector continues to be one of the hottest and most dynamic areas of the non-life (re)insurance industry. The wave of MGA start-ups, insurtechs and hybrid fronting carriers speaks to the unprecedented interest from investors, reinsurers and other capacity providers to access the business and from underwriting talent spying entrepreneurial opportunities.

The dynamics driving that activity show no sign of changing. But we have evolved the monthly publication of Program Manager to include a digital pdf edition full of exclusive news, commentary on the latest developments, in-depth analysis and coverage of televised interviews with key senior executives in the program space.

Look out for more exciting developments from Program Manager in the coming weeks."

[simon gordon] 02/2/2022 12:58

These folks have a conference/exhibition in London on the 29th June, looks a good spot to learn more about the MGA scene:

Formation of the MGAA

Managing General Agents (MGAs) are an important, established and fast-growing sector of the UK insurance industry.

Over 300 MGAs currently underwrite over 10% of the UK’s £47 billion general insurance market premiums. MGAs deserve specific representation to lobby on their behalf, communicate their considerable benefits and drive best practice.

The Managing General Agents’ Association (MGAA) was formed in 2011 to fulfil this role.

As a not-for-profit organisation, the MGAA, and its board of directors and specialist committees focus 100% on shaping the future of delegated underwriting in the UK and Republic of Ireland.

[simon gordon] 26/1/2022 17:00

New top level hire in America:

Peter Hartt

US Head of Compliance and Regulatory Affairs




WASHINGTON INSURANCE RIDER

Peter Hartt, former FSOC member & NAIC macroprudential oversight leader, exiting NJ DOBI at year-end

Updated Jan. 25th with Hartt’s new job.

Hartt to take ‘early retirement’ after 21 years at NJ regulatory agency

Dec. 7, 2021 —

Key state insurance regulator Peter Hartt, who helped spearhead life insurance solvency oversight and expanded group supervision of Prudential Financial, will be ending his long career with the New Jersey Department of Banking and Insurance at the end of the year.

Hartt will be joining Randall & Quilter Investment Holdings Ltd. as U.S. head of compliance and regulatory affairs. The dividend-paying non-life insurance group is domiciled in Bermuda, owns surety and other property casualty companies in the U.S. and Europe and buys discontinued books of non-life business and non-life (re)insurers and captives in run-off. It owns and manages both active and run-off businesses, often dissolving them, and also has operates as a fronting business, or conduit for capital providers in the insurance and reinsurance sphere.

Although he began his tenure at the Department in June 2000 as a public information officer. Hartt served as director of the division of insurance at the department during a critical time in state and federal relations involving solvency regulation.

Hartt served as the state insurance representative on the U.S. Financial Stability Oversight Council from September 2016 to September 2018, a period when the Council was considering designating and de-designating large national life insurers as systemically important financial institutions. FSOC voted to remove the last insurance SIFI, New Jersey-domiciled Prudential, a month after Hartt left FSOC, based on work and findings he and other members contributed to the process.

Hartt also led the National Association of Insurance Commissioners’ Financial Stability Task Force and led on the initiate developed by state regulators to more broadly oversee and monitor life insurers’ financial health. He worked with global supervisory partners in developing international capital standards for large group insurers and on resolution issues as well, for orderly unwinding of assets.

Colleagues during his time on the insurance regulatory national stage were happy to praise his work in bringing understanding of the expanding state insurance solvency oversight system to his work on FSOC .

“He was extraordinarily important for his work on FSOC, the right person at the right time,” said Eric Cioppa, Maine insurance superintendent and the current state insurance FSOC representative. Cioppa said Hartt was instrumental in establishing the macroprudential initiative at the NAIC, and contribute d a lot in this and other areas of oversight. He called Hartt a credit to the NAIC and FSOC.

Tom Workman, the FSOC’s current presidentially appointed independent member with insurance expertise, whose tenure overlapped with Hartt’s in 2018, praised Hartt’s work. Workman said his FSOC colleague served with great knowledge, patience and grace at a critical time. This would have been during fraught deliberations on removing Prudential’s SIFI designation, when the state insurance regulator on the Council would have a strong voice but not a vote in deliberations.

Prudential was the largest U.S. insurance group in the U.S., the largest nonbank SIFI, and the last to lose its designation as such. Minutes of FSOC meetings show Harrt supported the de-designation of Prudential. Hartt was preceded at FSOC by John Huff and Adam Hamm, both former NAIC presidents.

Hartt became assistant director of the division in 2002 and acting director in 2011, according to an online bio The New Jersey state Senate confirmed him as director back in 2014.

[simon gordon] 22/1/2022 18:07

Just getting stuck into Chapter 5 of Volume 1, titled: CNA & Fraud. The story revolves around Rob Thomas and the application of analytics.

Rob moved from CNA to RQIH in May last year.

[simon gordon] 22/1/2022 12:45

Fred,

Volume 1 of The Future of Insurance has a glowing review of Andy Pinkes in the acknowledgements section.

Volume 2 covers the MGA scene.

They are easy reads.

[fred177] 22/1/2022 12:07

Thanks that’s very helpful will do some reading

[simon gordon] 22/1/2022 10:27

According to the November edition of Growth Company Investor the forecasts (Barclays?) are as follows:

2021
PTP - 20m
EPS - 4.6p
DPS - 5p

2022
PTP - 34.2m
EPS - 8.3p
DPS - 7p

2023
PTP - 80m
EPS - 19.1p
DPS - 8.5p

2024
PTP - 96m
EPS - 22.7p
DPS - 9.4p


Potential Catalysts in 2022:

-Gibson RE starts filling, nailing down the 2023 forecast.
-Accredited lands more GWP and heads toward $3bn.
-If Phoenix are a share overhang, they get cleared.
-William Spiegel pulls a rabbit out of the hat with some wondrous deal making.

-----

Mr Spiegel looks to be in good physical condition and health:



------

Interesting books on the insurance scene:

The End of Insurance As We Know It



The Future of Insurance: Volume 1



The Future of Insurance: Volume 2



IRLA Handbook

Covers the Legacy scene.

If you tell them you're an RQIH shareholder when ordering you get the discounted price...

[fred177] 21/1/2022 13:48

It seems lots of potential here and regularly reporting improving numbers, when will any of this be reflected in the share price?

[simon gordon] 20/1/2022 13:31

PWC's thirty six page report:

Global Insurance Run-off Survey 2021

Market size

Overall, we estimate that the global run-off reserve has increased from approximately US$791bn to US$864bn; representing a 9% increase since the previous edition of our survey. While the North America region continues to dominate the global run-off market, with reserves of US$402bn, the UK and Continental Europe markets have a combined reserve of US$302bn. Our estimates of the run-off liability in other key territories, including Asia, the Middle East and South America, have also increased to US$160bn.

Market evolution

The majority of survey respondents believe the global legacy market is in the growth stage of its evolution. While only one in ten survey respondents indicated that they believe the market has reached maturity, a noticeable contingent responded that the market is continuing to emerge and take-off. This is in line with our review that legacy management is further growing, as it integrates itself into the traditional insurance life cycle.

[simon gordon] 13/1/2022 18:05

Enstar, listed on Nasdaq, look to be a big player in Legacy:

Enstar is a leading global insurance group that delivers innovative insurance solutions through our network of group companies. Spanning a 27+ year history of operating in the run-off space, we leverage our ability to thoroughly understand risks and liabilities to create ideal legacy solutions for our partners. Our analytical approach benefits our partners seeking optimal capital deployment solutions crafted to meet their individual risk profiles.

We complement our core claims management business with a number of high-quality strategic investments.

ENSTAR CREATES VALUE

Founded in Bermuda in 1993, Enstar was created through acquisitions to become, by 2013, the industry’s largest stand-alone run-off consolidator. Later in 2013, we diversified into live risk by investing in leading specialty insurance companies in global markets, including Lloyd’s.

In 2020, as part of our strategy to focus on our core legacy competency, we announced transactions – alongside trusted partners - at our live underwriting operations, StarStone and Atrium, which retain our investments in these high-quality companies, through meaningful minority stakes.

Regulatory change around the world is driving risk businesses to refocus, which creates opportunities in the legacy space. In this environment, Enstar has the vision and appetite to grow further.

Enstar leverages its expertise in claims management, risk analysis, and investment to generate value. These services make Enstar different, something unique. Click here to learn more.

Enstar is publicly traded on the NASDAQ stock market (ticker symbol: ESGR).

-

Market Cap today - $4.82bn

-

They recently closed one legacy deal valued at $3.12bn in reserves - 10/1/22:




Here's their site:



=====

Hopefully, Andrew Pinkes, the new Global Legacy CEO at RQIH will bring in some chunky reserves for Gibson RE mark 1 and mark 2 can follow in a canter.

'Andrew is a 30 year veteran of the insurance industry, focused on P&C, Specialty, Disability and Property Casualty run-off management. Currently, Andrew serves as a consultant and senior advisor to a number of private equity and venture capital portfolio companies and is an independent board director.

Andrew was the Executive Vice President, Worldwide P&C Claims at CNA. He was a member of the senior leadership team and had responsibility for over 1,700 claims, legal, operations, finance, actuarial, and business intelligence professionals.

Before CNA, Andrew was the Executive Vice President, Global Head of Claims at XL Group, and also Executive Vice President, Claims, P&C run-off operations and acting head of Commercial Markets business at The Hartford Financial Services Group, Inc. Prior to that, Andrew was the Senior Vice President and General Counsel, Special Liability Group at the Travelers.

Throughout his career, Andrew has led a series of large-scale transformations focused on delivering bottom line impact through improved service, efficiency, and outcomes leveraging analytics, operating model design, and large scale change management. He has deep expertise in legal/litigation management, medical management, large loss claim handling, quality program design, TPA oversight, and vendor management. Andrew also has led several operating model redesign efforts, modernizing the organizational design, processes, and systems to drive improved results and ongoing continuous improvement.

Andrew is on the Board of Overseers for the Rand Institute for Civil Justice.'

[simon gordon] 13/1/2022 14:58

Hi Martin,

10% of the $100bn premium with MGAs is taken by Progam managers with $90bn currently going to the big insurers like AON.

I note one small MGA went bust the other day when Berkshire cut their line.

William Spiegel highlighted lack of control as one reason why more business will move from MGAs to Program managers like Accredited.

Maybe the MGAs get a better deal and more security with a Program relationship rather than working with the likes of AON?

[martindjzz] 13/1/2022 14:32

To quote Falvey, "With R&Q Accredited America, it allows Falvey to enter into a strategic partnership to enable us to share in the profitable portfolio that we underwrite on behalf of our partners.”

That sounds to me like Falvey is going to move some business from existing carrier relationships to Accredited in return for a bigger share of the underwriting profit. I think more MGAs will be interested in that and we trust in the RQH management team to find the right balance of risk and reward.

[geraldus] 13/1/2022 14:03

Great info on this thread.One of the best boards.Thanks to all.