The non-life specialty insurance company experienced an International Financial Reporting Standards (IFRS) loss after tax of $297 million during this period, marking a significant increase from the previous year’s loss. Additionally, the firm faced a higher pre-tax operating loss.
Breaking down the figures, R&Q’s Accredited business witnessed a growth in pre-tax operating profit, reaching $55.7 million. However, the legacy unit struggled, incurring a larger pre-tax operating loss of $56.6 million.
In an official statement, R&Q’s Chief Executive William Spiegel addressed the results, stating, “While our pre-tax operating loss of $33.3 million is primarily driven by $32 million of adverse development in R&Q Legacy, our performance reflects two businesses in different stages of development.”
Spiegel further noted, “Accredited continued to grow and reported record results, while R&Q Legacy experienced a loss but executed well on its transition plan to become a more capital-efficient business.”
As previously announced, the separation of the two units aims to position them for profitable growth. Spiegel emphasized that this strategic move allows for the appropriate management focus and capital structures tailored to each operation’s specific needs.
“We have two exceptional businesses operating within different sectors of the insurance industry, requiring distinct skillsets, expertise, and regulatory requirements,” Spiegel explained. “Now, with the scale, maturity, and brand strength of each unit, they are well-positioned to thrive independently.”
It was highlighted that both Accredited and R&Q Legacy possess promising pipelines for future growth.
