Randall & Quilter Investment Holdings Ltd. (R&Q) has entered into a joint venture agreement with Phoenix Asset Management Partners Ltd. which will see the pair building a fund of insurance and reinsurance debt assets.
The partnership will see the two firms look to acquire insurance and reinsurance debt assets from insolvent estates in a jointly held fund, with a focus on assets that are similar to the kind acquired by R&Q in its RQLM operations during recent years.
R&Q believes that the joint venture will help the firm to access a broader range of opportunities in the area of insurance and reinsurance debt investments through greater scale.
As part of this joint venture deal, R&Q has sold the economic interest in 50% of its existing insurance debt assets to Phoenix for a sum of up to $6.9m. R&Q said that this consideration is slightly ahead of the fair value of these assets as at June 30th 2014.
Insurance and reinsurance debt investing increasingly crops up in our coverage of the reinsurance linked investments world. As investment and asset managers find new ways to extract value from insurance and reinsurance businesses for their investors, re/insurance debt as an asset class is likely to play an increasing role in diversified re/insurance focused investment strategies.