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Outgoing Randall & Quilter co-founder sells £0.8m

The speciality insurer's executive chairman is due to retire next year
Outgoing Randall & Quilter co-founder sells £0.8m

Randall and Quilter (RQIH) co-founder and outgoing executive chairman Kenneth Randall has sold shares worth £0.8m in the group. However, his stake has increased to 5.14 per cent following the insurer’s July bonus share issuance.

IC TIP: Hold at 156p

In July, Mr Randall announced his intention to retire from his role and step down as a board director in March next year. He will be replaced by deputy executive chairman William Spiegel.

Like its peers, Randall and Quilter eschewed paying a final dividend in favour of issuing bonus shares to shareholders after the Prudential Regulation Authority wrote to insurers and lenders advising them to “pay close attention” to the need to protect policyholders and “maintain safety and soundness” in the wake of the pandemic. However, at the time of the group’s 2019 results release, Mr Randall said it intended to return to cash payments this financial year.

Those results revealed that pre-tax profits had more than doubled as it continued to buy up legacy books of business, with the insurer completing 16 deals, including its largest acquisition to date with the purchase of Global Re for $81m (£68.6m). In May, $100m was raised to invest in buying more legacy books of business, although management hopes to complete more transactions with third-party investors, helping boost return on capital in turn.

It has also been ploughing ahead with growing its programme management business, which acts as an intermediary delegating the issue of licensed insurance policies to managing general agents, through which it earns fee-based annually recurring commission.

Buys      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
IG GroupMike McTighe (ch)23 Jul 203,500740.725,925 
IG GroupJune Felix (ceo)23 Jul 206,200742.946,061Average price
WM MorrisonAndrew Higginson23 Jul 2021,340185.5239,590

Purchased by PCA

WincantonStewart Oades23 Jul 2010,657186.2519,849 
AlumascGraham Hopper23 Jul 2028,53069.9919,971 
WincantonMartin Read (ch)24 Jul 2021,50718539,788 
Henry BootGerald Jennings24 Jul 208,25024119,883 
Anglo PacificJulian Treger (ceo)24 Jul 2030,000177.635,280 
Countryside PropertiesIain MacPherson (ceo)27 Jul 2028,35833594,999Placing
Countryside PropertiesNicholas Worrall27 Jul 2022,38833575,000Placing
St Modwen PropertiesSarah Whitney27 Jul 208,371298.224,963Average price
St Modwen PropertiesSarah Whitney27 Jul 203,0613029,244

Purchased by PCA

St Modwen PropertiesDanuta Gray27 Jul 208,36130225,250 
IMICaroline Dowling27 Jul 201,7141,06518,254 
HeadlamKeith Edelman28 Jul 207,059281.919,899 
Sells      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
Croda InternationalAnthony Fitzpatrick23 Jul 202,4045,600134,624 
Randall & QuilterKenneth Randall (ch)23 Jul 20500,000151.91759,569Average price
IntegraFinJudith Davidson (coo)23 Jul 20287,500539.221,550,250

Average price, sold by PCA