Pre-tax result for 2013 to be in line with expectations but 2014 group profit is likely to emerge later in the year
Randall and Quilter (R&Q) plans to complete a number of acquisitions in the second half of 2014.
The run-off buyer made the announcement in a trading update issued ahead of its full-year 2013 results, which will come out on 30 April.
R&Q buys companies in run-off but also has a ‘live’ division which includes MGAs and managing Lloyd’s syndicates.
The directors says they expect the group’s pre-tax result for the year ending 31 December 2013 will be in line with management expectations.
But they added that most of the group’s 2014 profit is likely to come from latter part of the year because of the acquisitions and because the companies it already owns tend to release more reserves in the latter part of the year.
The company has doubled the capacity of its Syndicate 1991 in the 2014 underwriting year with the consolidation activity of its insurance companies and the group’s relocation to Bermuda.
In the trading update R&Q said: “We continue to develop a good pipeline of attractive run-off acquisition opportunities and a number of specific projects are being worked on, including some more significant portfolio transfers.
“Whilst the group’s ongoing investment in building a significant management presence in the active Lloyd’s market will continue to be felt in the current financial year, the board remains confident that its strategy will deliver strong profit growth over the medium term, helped by a continuing focus on the re-engineering of its niche service business and buoyant legacy acquisition activity.”