R&Q Insurance Holdings, a London-listed insurer, has announced a wider pretax loss for the first half of 2023 due to adverse reserve developments. The company is currently focused on the legal split of its R&Q Legacy and Accredited businesses.
Financial Performance
In the six months ended June 30, R&Q Insurance Holdings reported a pretax loss of $52.1 million, compared to a loss of $6.5 million during the same period last year. The pretax operating loss also widened to $58.0 million from $27.0 million.
The losses in the R&Q Legacy branch more than doubled, primarily due to $40.0 million of adverse reserve developments related to older transactions in Lloyd’s. This offset an 86% year-on-year increase in its Accredited business.
Business Metrics
Despite the wider losses, fee income increased to $55.9 million from $47.9 million. Additionally, gross premiums written for the Accredited business rose to $1.09 billion from $807.3 million.
Future Plans
R&Q Insurance Holdings is determined to minimize future reserve volatility and enhance the underlying performance of the group. To achieve this, they will focus on implementing better automation and expense management strategies.
