R&Q Insurance Holdings Ltd, the Bermudian-headquartered global non-life specialty insurer, has completed the sale of its 40 per cent minority holding in TPM Holdings USA LLC, the New York-based managing general agent.

The stake in Tradesman has been acquired by Roosevelt Road Capital Partners LLC, the controlling 60 per cent shareholder of Tradesman, which is majority owned by Daniel Hickey Jr, the chief executive of Tradesman.

The total consideration is $47 million, subject to post-closing adjustments based on 2022 audited financials of Tradesman.

R&Q said it would use the proceeds from the transaction for general corporate purposes and to pay down debt.

The company said it would have almost quadrupled its initial investment of $25 million from the acquisition of Sandell Re Ltd in 2019, which was subsequently converted into a 40 per cent stake in Tradesman, including $46 million of dividends received.

As a result of the transaction, R&Q will no longer be liable for, nor benefit from, any contingent commissions to or from reinsurers.

When the deal was announced last month, William Spiegel, executive group chairman, said: "Tradesman is a high-quality MGA with whom we have had a long-term profitable partnership.

“Our decision to reduce our exposure to certain Tradesman programmes as part of our ongoing active portfolio management meant our minority investment was no longer strategic and we believe its long-term ownership better fits with its existing management team.”