Randall & Quilter reports strong progress in interim results

Pre-tax profit surged for group, which is a specialist non-life legacy insurance investor and capacity provider of US and European managing general agent business, to £5.4m from £1.2m as more transactions occurred in the first half.

The group touted strong performance in its principal carriers, R&Q Re Bermuda, Accredited and R&Q Insurance Malta, which it said was due to legacy loss portfolio transfer activity.

Record contribution from legacy transactions was completed in the first half year, rising to £19.1m from £2.7m thanks to a high level of premiums in excess of undiscounted reserves assumed and higher goodwill from bargain purchase.

Distribution per share had also increased very slightly to 3.5p from 3.4p.

However, the group reported a mild investment return of 1.4% on their 'free' assets from 2.1% last year, which was said to be a result of favourable credit markets and rising yields on a predominantly US dollar based portfolio.

Having delivered a strong financial performance during the first half of the year, the group said it was now confident about the remainder of the year.

"We look forward to 2017 and beyond with confidence, having delivered a strong financial performance during the first half of the year. Following the disposals already completed and those in progress, we believe our focus on our two core operations will grow profits and optimise long-term returns to shareholders", said chairman and CEO Ken Randall.

The company's shares were up 2.77% to 148.50p by 9:09 BST.