Randall & Quilter completes IC Insurance deal

The London-listed group first announced the deal on 26 May, although it had to wait for regulatory approval from the Prudential Regulation Authority and from the Financial Conduct Authority to complete the acquisition.

IC Insurance, which was formed in 1926 and ceased active underwriting in 1996, had claim reserves amounting to £1.9m and shareholders’ funds of £22.5m as of 31 December last year.

Randall said the £17m cash deal was financed by existing cash resources and by a debt facility with Royal Bank of Scotland.

“This is one of a number of current transactions we are assessing where a corporate parent is looking to dispose of their legacy captive prior to the implementation of Solvency II,” said group chairman and chief executive Ken Randall.

“The advent of Solvency II is generating a number of prospects for the Group across Europe and in general we remain excited about our legacy acquisition pipeline."

Randall shares were up 0.81% to 93.25p at 1007 BST on Monday.