R&Q has written a $70mn Adverse Development Cover (ADC) reinsuring medical professional liability and general liability risks on behalf of a US domiciled risk retention group.
The coverage was written by R&Q’s admitted US carrier, Accredited Surety and Casualty Company (Accredited), protecting the alternative risk transfer vehicle from downside risk on its legacy insurance programme.
Purchases of ADC have been on the up, with Aspen confirming this week it had bought a $125mn policy to protect against prior year deterioration.
Ken Randall, chairman and CEO of R&Q said the transaction adds to R&Q’s continued development of exit solutions to risk retention groups within the US.
“We are excited to expand our capabilities using Accredited to assist in solving various issues that arise on legacy liabilities for RRG’s, self-insurers, and corporates within the U.S.”
London-listed R&Q has been restructuring the business over the past year in an effort to simplify its operations.
In January R&Q sold its insurance services and captive management operations to the UK outsourcing and consultancy firm Davies Group for £20mn ($27.7mn).
This followed the $22mn sale of its Lloyd’s managing agency - and ‘live’ underwriting Syndicate 1991 - to the US healthcare insurer Coverys last year.
In 2017 R&Q raised £68mn in two equity fundraisings - the equivalent of around 40 percent of its then market cap - that were designed to channel additional funds into its European insurer - R&Q Malta - and Accredited, that are used to write legacy business.