R&Q Insurance ‘pauses’ redemption of tier 2 subordinated notes

Chicago, Dec. 22 – R&Q Insurance Holdings Ltd. is pausing the redemption of its $20 million tier 2 floating-rate subordinated notes issued by R&Q Re (Bermuda) Ltd. due on Dec. 22, 2023, according to a press release.

The notes will remain outstanding on their terms and the issuer will continue to pay interest as it accrues.

The update relates to the sale of Randall & Quilter America Holding Inc., as previously announced.

The Bermuda Monetary Authority is requesting an independent actuarial review of the required reserves of the remaining group post-sale, its capital and its cash flow projections.

The Bermuda Monetary Authority also notified R&Q that it should put on hold the approval of any new external legacy transactions to R&Q Re (Bermuda) while the BMA undertakes its review of R&Q Legacy. This includes the UK Motor loss portfolio transfer announced Oct. 26.

Fenchurch Advisory Partners LLP, Barclays and Howden Tiger are listed as financial advisers. Deutsche Numis is the nominated adviser. FTI Consulting is also listed as a contact.

The specialty insurer is based in Bermuda.

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