Randall & Quilter plans for expansion

The insurance investments division boosted profit 19 per cent to £9.9m - driven by reserve releases on two run-off syndicates, and a doubling in net investment income to £12.6m. That pushed the investment return up from 2.5 per cent to 5.9 per cent. Meanwhile, operating profit from insurance services - which includes claims and reinsurance management, captive and cell management and accounting facilities - rose from £5.75m to £10.3m, boosted by third-party income from an exceptional level of credit write-backs. The underwriting management side, however, made a £1.5m loss - reflecting slower premium development and regulatory costs associated with Solvency II compliance. There were also closure costs relating to the Canadian management services operation.

Headline pre-tax profit includes £5.2m from the group's 55 per cent stake in RITC (run-off) Lloyd's syndicate 3330. Numis Securities' forecasts strip out that income and, prior to these figures, the broker was expecting pre-tax profit on that basis of £8.9m, giving EPS of 15.3p - but that's likely to be upgraded.