Bermudian-based R&Q Insurance Holdings Ltd has filed for provisional liquidation.

The company said it filed in the Supreme Court of Bermuda on Friday an application to appoint joint provisional liquidators to oversee the liquidation and ultimately the winding up of the company and a petition to take the initial steps to commence that winding up.

R&Q said it anticipates that this process will result in the prompt closing of the sale of the company's programme management business, Accredited, to funds advised by Onex Corporation.

It added that the company’s board of directors believes that this will provide the best possible result in the circumstances for the company’s stakeholders.

R&Q said further announcements will be made, as appropriate, in due course.

The company also announced an agreement to sell Inceptum Insurance Company Ltd, a legacy general insurance company located in Britain and regulated by the Prudential Regulation Authority and Financial Conduct Authority, to Marco Capital Holdings Ltd, a Malta-based legacy acquisition group.

R&Q said the transaction is conditional on the completion of the sale of the shares in Accredited to Onex.

The transaction also includes and is subject to the completion of certain reinsurance agreements between R&Q entities Accredited Insurance Europe Ltd and R&Q Re (Bermuda) Ltd, and Inceptum being novated to Marco Re Ltd.

It added that the transaction has received necessary R&Q board approvals, but is subject to change of control approval by the PRA and other regulatory approvals as required for the reinsurance agreements.

The agreement represents the sale of 100 per cent of the shares of Inceptum to Marco, alongside the novation of any related reinsurance arrangements with other R&Q entities (including AIEL).

At year-end 2023, Inceptum had estimated net assets of £19 million (approximately $24 million).

In the year to December 31, Inceptum generated a loss of £2 million.

R&Q will receive £11.25 million for the sale of the shares in Inceptum, payable in cash.

Inclusive of the impact of the novation of the reinsurance arrangements, the transaction is expected to generate approximately £13 million of liquidity for the company.

R&Q said the cash proceeds from the sale of the shares in Inceptum will be received on completion, anticipated to be the third quarter of this year.