R&Q Insurance buys subsidiary of MSA Safety through joint venture

(Alliance News) - R&Q Insurance Holdings Ltd on Friday said it has invested in a joint venture, ...

Alliance News 6 January, 2023 | 11:36AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - R&Q Insurance Holdings Ltd on Friday said it has invested in a joint venture, formed with Obra Capital Inc, to buy legacy liabilities of MSA Safety for a disclosed sum.

R&Q Insurance is a Bermuda-based specialty non-life insurer formerly known as Randall & Quilter Investment.

The joint venture is a wholly-owned subsidiary of global safety equipment manufacturer MSA Safety Incorporated.

R&Q Insurance said the acquired subsidiary holds legacy product liability claims relating to coal dust, asbestos, silica, and other exposures. MSA Safety contributed about USD341 million in cash to the company, in addition to related insurance assets, and the joint venture contributed USD35 million.

As a result of the transaction, R&Q will provide claims and management services and Obra will provide investment management services to the newly acquired subsidiary.

R&Q Executive Chair William Spiegel says: "We are pleased to form a joint venture with Obra to acquire and professionally manage these legacy liabilities, providing MSA Safety with a complete finality solution. This is an exciting transaction for R&Q, showcasing the capabilities, reputation and innovation of our Legacy Insurance business. This will see our reserves and non-insurance liabilities under management increase to over USD1 billion, comprising two pools: traditional insurance reserves via Gibson Re, and non-insurance legacy liabilities."

Shares were down 0.6% at 58.62 pence each on Friday morning in London.

By Xindi Wei, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
R&Q Insurance Holdings Ltd

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures