Randall & Quilter buys USA Swimming's insurer for $2.1m

AIM listed Randall & Quilter Investment Holdings bought United States Sports Insurance Company (USSIC), a captive insurer of governing body USA Swimming, for $2.1m

The acquisition, which was funded through a draw down on the company's debt with the Royal Bank of Scotland, is part of the company's strategy to buy legacy insurance assets.

The directors of USSIC will be appointed from Randall & Quilter’s existing US and Bermudian staff and there are no separate service contracts or associated remuneration.

Chairman and chief executive Ken Randall, said: "This transaction demonstrates our ongoing commitment to continue to acquire legacy insurance assets and also continues to expand our acquisition activity in North America, Bermuda and the Caribbean region".

USSIC, which is in run-off, had a net asset value of $5.3m as at 30 June, adjusted for a pre-acquisition dividend, and generated income of $972,000 for the year ended December 31, 2015.

Randall and Quilter was initially incorporated in Barbados in 1988 and was re-domiciled in Washington DC from December 2014, to become a US insurance company which provided coverage to USA Swimming, its local swimming committees and clubs throughout the country from 1988 to 2013.

Shares in Randall & Quilter were down 0.78% to 120.06p at 0802 BST.