Run-off specialist Randall & Quilter plans to launch its yacht and marine trades managing general agency (MGA) in late 2011 and a US MGA in time for the 2012 renewals.
The company had already revealed that it had more MGAs in the pipeline after unveiling a UK-based MGA, Just Underwriting, to write special event coverage. Just Underwriting has now launched and started operations.
R&Q announced last month that it would establish a new MGA, called R&Q Marine Services, to underwrite the yacht and marine trades portfolio written by Lloyd’s insurer Talbot Underwriting’s MGA, Underwriting Risk Services Limited (URSL).
URSL’s managing director Nick Hales now runs R&Q’s MGA business, while Paul Miller moved from URSL to R&Q to write the yacht and marine trades business.
R&Q announced the timings with its first half results. The company made a profit before tax of £3m in the first half of 2011, down 48% on the £5.8m it made in the same period last year.
The company attributed the dip in profit to a lower than anticipated result in its underwriting management division (which includes the MGA business), restructuring costs from the insurance services division and timing differences in the recognition of certain income and expenses.
Factoring in a tax credit of £0.1m (H1 2010: charge of £2.1m), R&Q made a profit after tax of £3.1m for the first half of 2011 (H1 2010: £3.7m).
On the positive side, R&Q was able to release £2m in capital from La Licorne, a French run-off reinsurer that the company bought in April 2010.
R&Q also reported a positive resolution of the Seaton & Stonewall litigation. The company said it has received damages payments and that a significant share of its costs from the litigation continue to be recovered.