A year after the Bermuda-based programme management and legacy acquisition specialist Randall & Quilter Investment Holdings Ltd. agreed to be purchased by shareholder Brickell PC Insurance Holdings LLC for $632 million in cash, together with $100 million of new equity funding, other high level moves have brought scrutiny.

AM Best has placed the ratings of R&Q Insurance Holdings Ltd and its subsidiaries under review.

The rating actions follow the announcement on Tuesday that R&Q is reviewing strategic options to separate its programme management and legacy insurance businesses, and that the group is expected to report a material operating loss for 2022.

There were other recent high level moves at the company.

Not even two weeks ago, R&Q had installed a new non-executive chairman.

Two weeks before, it completed sale of its 40 per cent minority holding in the New York-based managing general agent TPM Holdings USA, LLC.

Separately, just last month, R&Q told AM Best that it was planning to put its reinsurance subsidiary R&Q Re US in liquidation.

The rating agency has now placed under review with negative implications the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of wholly-owned subsidiaries Accredited Surety and Casualty Company Inc of Florida, Accredited Specialty Insurance Company of Phoenix and Malta-based Accredited Insurance (Europe) Limited.

Concurrently, AM Best has placed under review with negative implications the long-term ICR of “bbb-” (Good) of the Bermudian-based non-operating holding company of the group.

The credit ratings reflect R&Q’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

AM Best had previously considered ASC, ASI and AIEL (the Accredited companies) to be strategically important to the R&Q group and will now review the impact of the likely separation on their rating fundamentals.

Furthermore, the expected operating loss for 2022, driven by R&Q’s legacy operations, will likely lead to a material weakening of the group’s risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio.

The agency said the ratings are expected to remain under review until AM Best has sufficient clarity over the rating fundamentals of the Accredited companies and the R&Q group, subsequent to their likely separation.

It is considered probable that in the near future, the Accredited companies will form an independent rating unit, separate from R&Q.