R&Q Insurance Holdings Ltd, the Bermudian-based non-life global specialty insurance company focusing on the programme management and legacy insurance businesses, has reported a group pre-tax operating loss of $33.3 million for the 2022 fiscal year.

The company said the result was impacted by $32 million of adverse development and the transition to a fee-based revenue model at R&Q Legacy.

William Spiegel, chief executive officer of R&Q, said: “During the year we saw substantial progress with regards to our five-pillar strategy, which includes significant investment and change aimed at making R&Q a more modern and efficient company with a stronger culture.

“In many ways the changes we are making represent a multiyear operational turnaround at R&Q and, although not always easy, they will make us a stronger, more sustainable and more effective business.

“While our pre-tax operating loss of $33.3 million is driven primarily by $32 million of adverse development in R&Q Legacy, at an underlying level our performance reflects two businesses at different stages of their development.

“Accredited continued to grow and reported record results while R&Q Legacy reported a loss but has shown good execution against its transition plan to become a more capital efficient business.”

He added: “We have two great businesses, but they operate in different parts of the insurance ecosystem, require different skill sets and expertise, and have different rating and regulatory needs.

“We are now in a position where each has the scale, maturity, and brand strength to stand on its own. By separating these businesses, we can ensure both have the right level of management focus and appropriate capital structures to achieve their full potential.”