More to come from Randall & Quilter

Operating profits in the year to December 2018 grew by nearly a half despite the deferral of significant legacy transactions into 2019. These included Global Re, its largest acquisition to date for around £61m where regulatory approval was not secured until April this year.

The rise in profits reflected a stronger contribution from previous run-off transactions. There was a healthy increase in reserve savings from previously acquired portfolios, notably the run-off in its Lloyd’s Syndicates. However, gross investment income slipped from £8.2m to £5.4m, reflecting increased market turbulence, notably in the last few weeks of the year.

The company also acts as an intermediary delegating the issue of licenced insurance policies to MGAs or managing general agents, effectively providing a conduit between MGAs and the reinsurance market. During the year, it achieved its goal of securing contracts with an estimated value of $500m (£387m) gross written premiums per annum. R&Q retains a commission on each premium transaction which provides a useful annually renewable source of fee income. Earnings per share were lower, reflecting the issue of new shares which raised £103.5m.

Analysts at Numis are forecasting pre-tax profits for the year to December 2019 of £42.2m and EPS of 19.4p