AM Best

MAY 27, 2022 12:15 PM (EDT)

AM Best Revises Under Review Status to Negative for Credit Ratings of Randall & Quilter Investment Hldgs Ltd. and Its Rated Subs

 Barnaby Unwin Hoskins
Financial Analyst
+44 20 7397 0327

William Keen-Tomlinson
Associate Director, Analytics
+44 20 7397 4395

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jeff Mango
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204


LONDON - MAY 27, 2022 12:15 PM (EDT)
AM Best has revised the implications of the under review status to negative from developing for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Accredited Surety and Casualty Company, Inc. (ASC) (Orlando, FL), Accredited Specialty Insurance Company (ASI) (Phoenix, AZ) and Accredited Insurance (Europe) Limited (AIEL) (Malta). Concurrently, AM Best has revised the implications of the under review status to negative from developing for the Long-Term ICR of “bbb-” (Good) of Randall & Quilter Investment Holdings Ltd. (R&Q) (Bermuda) [AIM: RQIH], the non-operating holding company of the group. ASC, ASI and AIEL are wholly owned subsidiaries of R&Q.

The Credit Ratings (ratings) reflect R&Q’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating actions follow the announcement on 25 May 2022, that R&Q’s shareholders did not approve the required special resolutions for the proposed acquisition of R&Q by Brickell PC Insurance Holdings LLC (Brickell). The acquisition agreement included the issue of USD 100 million of convertible preference shares to Brickell, which would have mitigated the impact of an expected IFRS loss for 2021 of between USD 135 million and USD 145 million on R&Q’s capital base.

Subsequently, R&Q announced its intention to raise USD 100 million through an equity raise, which is expected to complete on 12 July 2022. The revision of the implications of the under review status to negative from developing reflects the risk that the equity raise will not complete and that R&Q’s risk-adjusted capitalisation will not return to historical levels. The ratings will remain under review until AM Best has certainty around R&Q’s capital position.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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