UK P&I Club has concluded an agreement with subsidiaries of Randall & Quilter Investment Holdings Ltd. (R&Q), an Alternative Investment Market (AIM) listed run-off insurance specialist, to transfer the Club’s occupational disease liabilities.
Most occupational disease claims result from seafarers being exposed to asbestos on ships, going back as far as the 1950s. It can be 40 years or longer before symptoms of any disease occur and these can often be fatal, and the resulting compensation awards can be significant. These claims are very uncertain and volatile, and the exposure will continue for many years to come.
The transfer of liabilities will be subject to the approval of the High Court in London, which will ensure the interests of those members who are exposed to these claims and equally the claimants who suffer from these diseases are not prejudiced by the transfer. It will also be overseen by the UK insurance regulators, the PRA and FCA. In the interim, the Club has concluded a reinsurance agreement with R&Q so the benefits of the overall transaction can be recognised by the Club's current membership. The parties expect the transfer to be completed within the next two years.
Nicholas Inglessis, Chairman of the UK P&I Club, says: “Transferring these claims to a recognised and well-regarded occupational disease specialist, such as R&Q, will significantly improve the Club’s capital position and bring finality to a highly volatile book of claims. This will greatly benefit the Club’s current members.”
Ken Randall, Executive Chairman at R&Q, says: “We are delighted to enter into this agreement with the UK Club which recognises our experience in this field and follows on from the previous transfer of liabilities from the Liverpool & London Steamship P&I Association in 2015. Occupational disease liability can negatively impact a Club’s capital outlook and risk appetite. This transfer agreement will allow the UK Club more flexibility and stability in planning its financial future, while ensuring any claimants remain unaffected.”
For further details, please contact:
Jonathan Atkins/ Alastair Doyle/ Narmina Yusifova
UKP&I@fourcommunications.com / +44 (0) 20 3697 4200
Notes to Editors
The UK P&I Club is a leading provider of P&I insurance and other services to the international shipping community. Established in 1869 the UK P&I Club insures over 244 million tonnes of owned and chartered shipping through its international offices and claims network. ‘A (Stable)’ rated by Standard & Poor’s with free reserves of $505m, the UK P&I Club is renowned for its specialist skills and expertise which ensure ‘best in class’ underwriting, claims handling and loss prevention services.
The UK P&I Club is managed by Thomas Miller, an independent and international insurance, professional and investment services provider.
About Thomas Miller
Thomas Miller is an international provider of market leading insurance services.
Founded in 1885, Thomas Miller’s origins are in the provision of management services to mutual organisations, particularly in the international transport and professional indemnity sectors; where today they manage a large percentage of the foremost insurance mutuals. Increasingly Thomas Miller applies its knowledge and expertise to the development of specialist businesses.
Principal activities include:
About Randall & Quilter
Randall & Quilter Investment Holdings Ltd. (R&Q) is listed on the London Stock Exchange’s Alternative Investment Market (AIM) 100 Index and provides core services of legacy acquisitions and program management. The Group was founded by Ken Randall and Alan Quilter in 1991.
R&Q has a proven track record over three decades of acquiring discontinued books of non-life business and non-life (re)insurance companies and captives in run-off.
We have access to capital and the experience of managing run-off which enables us to free management and investors from the cost and constraints of handling discontinued business. We can do this on both sides of the Atlantic with our licenced platforms in the US, Bermuda and Europe.