Randall and Quilter has announced a pre-tax operating loss of $23.5m (£17m) in H1 2021.
However, the firm said the loss was reduced to approximately breakeven when including two signed legacy insurance transactions with $23m (£16.6m) of underwriting profit that are expected to close in in the period.
The company also revealed a program management pre-tax operating profit of $20m (£14.5 H1 2021 annualised) compared with $1.6m (£1.16m H1 2020 annualised) the previous year.
It said this reflected a program management gross written premium of $890m (£644) and fee Income of $50m (£36m) (H1 2021 annualised), increases of 80% and 135%, respectively, from H1 2020.
Meanwhile, the company also formed Gibson Re, a Bermuda-domiciled collateralised reinsurer with $300m (£217m) of capital.
Gibson Re will reinsure 80% of all of Randall and Quilter’s new qualifying legacy transactions for three years, with R&Q participating in 20% to promote alignment of interest.
By 2023 the company “expect run-rate Group Fee Income of greater than $140m (£101) and Group Pre-Tax Operating Profit of over $90m (£65m), assuming Gibson Re capital is fully utilised by 2023”.