R&Q agrees to $465M sale of program management unit to PE firm
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Bermuda-based runoff and program insurer R&Q Insurance Holdings Ltd. has agreed to sell its program management insurance unit Accredited to private-equity investment company Onex Corp. in a deal that values the business at about $465 million.
The deal, which requires shareholder and regulatory approval, follows a “strategic initiative” R&Q announced in April to separate its runoff business from its ongoing insurance business, which supports program managers in the United States and Europe.
R&Q expects $300 million in net cash proceeds from the sale. The proceeds “will be entirely used to facilitate a material de-leveraging of R&Q,” the company said in a statement.
In the U.S., Accredited’s operations include Accredited Specialty Insurance Co. The insurer targets small to medium-sized businesses and offers limits up to $50 million, according to its website.
On closing, William Spiegel, CEO of R&Q, and Thomas Solomon, chief financial officer, will transfer to Accredited and R&Q will seek a new top executive, the statement said.
