(Alliance News) - R&Q Insurance Holdings Ltd on Monday confirmed the filing of an application to liquidate the company in Bermuda and announced the sale of its general insurance business.
The Bermuda-based non-life insurer announced on June 19 that it will be filing for provisional liquidation in Bermuda.
It is the result of an alternative proposal relating to the sale of the firm's Accredited programme management business to Onex Corp through holding company Randall & Quilter America Holding Inc.
On June 21, the company filed, in the Bermuda Supreme Court, an application to appoint liquidators to oversee the ultimate winding up of the company
In addition, R&Q said it has agreed to sell its UK legacy general insurance company, Inceptum Insurance Co Ltd, to Marco Capital Holdings Ltd, a Malta-based acquisition group.
The agreement represents the sale of all Inceptum shares, alongside the novation of any related insurance agreements with other R&Q entities.
At December 31, Inceptum held GBP19 million in net assets and generated a GBP2 million loss.
R&Q is due to receive GBP11.3 million in cash for the sale in the third quarter, with the transaction expected to generate GBP13 million of liquidity for the company.
The transaction is conditional on the sale of Accredited.
R&Q Insurance shares are suspended in London. They last traded at 0.08 pence each on June 19.
By Elijah Dale, Alliance News reporter
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R&Q Insurance (RQIH)