R&Q’s latest transaction, the creation of Gibson Re as a ‘sidecar’ for future legacy deals should progressively smooth contributions from the Legacy Insurance division and create a new, equally substantial but far more visible, source of profitable revenue. R&Q referred to planned sidecar creation previously and the structure will reduce opportunities for earnings surprises caused by unpredictable legacy deal timings. As its portfolio scales, Gibson Re should help transform R&Q’s Legacy division from an entity that reports substantial but unpredictable, episodic upfront profits on acquisitions, into an asset manager earning fee income from legacy insurance portfolios assembled on behalf of third parties. On all new deals, R&Q will only retain a 20% participation onto its own balance sheet.
10 Sep 2021
Transforming revenue visibility
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Transforming revenue visibility
R&Q Insurance Holdings Ltd (RQIH:LON) | 3.0 0 5.4% | Mkt Cap: 11.2m
- Published:
10 Sep 2021 -
Author:
Andy Edmond | Roger Leboff -
Pages:
7
R&Q’s latest transaction, the creation of Gibson Re as a ‘sidecar’ for future legacy deals should progressively smooth contributions from the Legacy Insurance division and create a new, equally substantial but far more visible, source of profitable revenue. R&Q referred to planned sidecar creation previously and the structure will reduce opportunities for earnings surprises caused by unpredictable legacy deal timings. As its portfolio scales, Gibson Re should help transform R&Q’s Legacy division from an entity that reports substantial but unpredictable, episodic upfront profits on acquisitions, into an asset manager earning fee income from legacy insurance portfolios assembled on behalf of third parties. On all new deals, R&Q will only retain a 20% participation onto its own balance sheet.