Twelve Capital sole investor in $20m R&Q Re private debt deal

Zurich headquartered insurance and reinsurance linked investment fund manager Twelve Capital was the sole investor in a $20 million private debt issuance from R&Q Re (Bermuda) Ltd., the Bermuda Class 3A reinsurer of Randall & Quilter Investment Holdings Ltd.

R&Q Re (Bermuda) Ltd. issued $20 million of floating rate Subordinated Notes due December 2023, with the notes and their proceeds qualifying as Tier 2 eligible capital for the reinsurer, which will be used to fund boost its Statutory Capital and Surplus and to support growth.

The private debt transaction is the first that Twelve Capital has been involved in that supports a Bermudian insurance company issuing Tier 2 eligible capital and the deal was brokered by the Bermuda office of the Beach Group.

Ken Randall, Chairman and CEO of the Group, said; “We are really pleased to have completed this issue of Tier 2 eligible capital out of R&Q Re (Bermuda) to help fund our fast growing legacy activity in the US and offshore US markets and to strengthen the balance sheet of this key Group insurance carrier.”

Twelve Capital, which was investing on behalf of its investor base, is a specialist across the insurance and reinsurance risk return curve, allocating funds to insurance-linked securities (ILS), private ILS and reinsurance, private insurance debt, public insurance debt and insurance equities.

R&Q Re Bermuda provides capacity to support Randall & Quilter’s U.S. legacy transactions, underwriting adverse development covers for loss portfolio transfers and other retrospective covers written by Accredited, the firm’s A- rated US admitted carrier.

Randall & Quilter said that R&Q Re Bermuda will support some of the legacy insurance and reinsurance portfolios assumed through run-off and acquisition deals involving captive programs in Bermuda, the U.S. and elsewhere.