As at 30 June, the division has 36 active programmes compared to 26 at this point last year
Randall and Quilter (R&Q) has reported that its programme management business has achieved $247.2m of gross written premium (GWP) in the first half of 2020, a 43% increase on the $172.9m GWP it recorded last year.
R&Q’s programme management arm partners with MGAs and their reinsurers to provide programme capacity through its licensed platforms in the US, Bermuda and Europe.
In the UK, this business operates as Accredited Insurance (Europe) and writes all non-life classes of business as well as assumes legacy portfolios of non-life business across the UK and Europe. There is also a US-based programme management business - Accredited Surety and Casualty Company.
According to R&Q’s 2020 half year results, published today, its programme management businesses has a contracted premium of $924.5m, which is an 114% improvement on last year’s $431.6m. Its economic commission revenue has also increased by 88%, moving from $5.7m in 2019 to $10.7m this year.
The addition of 10 new programmes also brings the total of active programmes from 26 in H1 2019 to 36 as at 30 June 2020. At the end of Q2 2020, R&Q signed four new programmes with contracted premium of approximately $200m – these are expected to begin generating GWP soon.
The H1 results also revealed that R&Q’s programme management arm intends to enter the US excess and surplus programme management market in Q4 of this year.
Commenting on these results, Alan Quilter, group chief executive at R&Q, said: “In the first half of 2020, our programme management business, trading under the Accredited banner, continued to grow strongly.
“Importantly, this business has significant built-in growth through the 36 existing programmes and 34 different distribution partners with whom we have secured contracts as of the end of Q2 2020. In addition, the four new programmes we signed post the half year, are expected to generate in excess of $200 million of annual recurring gross written premium when they achieve scale over the next 18 months.
“We continue to see strong demand from new origination partners as existing insurance capacity faces capital challenges given the magnitude of the insured losses from Covid-19.
“Moreover, due to current market conditions, we expect to enter the US E&S programme management market, a large addressable market in which we do not presently compete, in Q4 2020, accelerating our original plans. This launch will see Accredited achieve its strategic objective of being a comprehensive programme management solutions provider in all its major markets.”