R&Q Re (Bermuda) Ltd has issued $20 million of floating rate subordinated notes, which are due in December 2023.

In a statement, the company said the notes are Tier 2 eligible capital and will increase R&Q Re Bermuda’s statutory capital and surplus to help support “the growth of this core group insurance platform”.

The statement added: “As well as the continued support of the group’s Lloyd’s syndicate participations, R&Q Re Bermuda is the key risk-taking entity for the group’s US legacy transactions, writing adverse development covers for the loss portfolio transfers and any other retrospective policies written by Accredited, the group’s A- rated US admitted carrier.”

R&Q Re Bermuda, a Class 3A insurer, will support a number of the legacy portfolios assumed through the acquisition and novation of captive programmes in Bermuda, the US and elsewhere.

Twelve Capital Group, an investment manager specialising in insurance investments including private debt, acted as sole investor in the issue.

The transaction marks Twelve Capital Group’s first transaction supporting a Bermudian insurance company issuing Tier 2 eligible capital. The broker was the Bermuda office of the Beach Group.

Ken Randall, chief executive officer of the group, said: “We are really pleased to have completed this issue of Tier 2 eligible capital out of R&Q Re (Bermuda) to help fund our fast growing legacy activity in the US and offshore US markets and to strengthen the balance sheet of this key group insurance carrier.”