Non-life insurance run-off specialist Randall & Quilter Investment has acquired a majority stake in US reinsurer Goldstreet.
Non-life insurance run-off specialist Randall & Quilter Investment has acquired a majority stake in US reinsurer Goldstreet.
AIM-quoted Randall & Quilter, headed by veteran Lloyd’s insurance market figure Ken Randall, is paying from existing resources for Goldstreet, which has been in run off for 22 years and comprises mostly assumed reinsurance business with net reserves of some £5 million and a net asset value of £5.6 million. The company is buying its Goldstreet stake from US aerospace concern Sequa Corporation and says it is continuing negotiations to buy the remaining 29.82 per cent from Republic Insurance.
Lately, Randall & Quilter has fared less well in a legal dispute with another run-off vehicle, Equitas, the company set up Lloyd’s 13 years ago to handle the market’s long-tail non-life liabilities, including asbestosis. The English Commercial Court has found in favour of Equitas over claims arising from the Exxon Valdez oil spill of 1989 and claims from Kuwait Airways arising from the First Gulf War of 1990.
The court has decided Equitas can use an ‘actuarial model’ to demonstrate some of these claims are payable by Randall & Quilter’s reinsurance arm. This would significantly increase the company’s exposure, albeit at an appreciable discount.
Randall & Quilter says another hearing will be needed to decide the amount of Equitas claims that will fall to Randall & Quilter as a result of this ruling and has made it clear it is considering ‘whether the judgement gives ground for an appeal’.
