Adverse reserve development, primarily from older transactions in Lloyd’s, was the driver as R&Q Insurance Holdings Ltd, the Bermudian-headquartered global non-life specialty insurer, reported a pre-tax operating loss of $58 million for the first half of 2023.

Some $40 million of that total was attributed to adverse reserve development.

R&Q Legacy reported a pre-tax operating loss of $24.2 million before factoring in the $40 million adverse reserve development.

The company’s legacy insurance arm has reserves under management of $1.1 billion, which is a 172 per cent increase year-over-year.

R&Q Legacy reported fee income of $9.7 million, compared with $8.8 million in the first half of 2022.

R&Q Holdings is in advanced talks with Canada’s Onex Corporation regarding the sale of Accredited, the company’s programme management business.

Accredited reported a pre-tax operating profit of $28.6 million in the first half.

That compares with a first-half 2022 pre-tax operating profit of $15.4 million, an 86 per cent increase.

Gross written premiums were $1.1 billion compared with $800 million in the prior year first half.

Accredited generated fee income of $46.2 million, up 18 per cent on the first-half 2022 total of $39.1 million.

Pre-tax operating profit margin was 57 per cent, compared with 43.6 per cent a year ago.

Total fee income for the group was $55.9 million, a 17 per cent increase year-over-year.

William Spiegel, chief executive officer of R&Q, said: “R&Q is undergoing a multi-year operational turnaround aimed at creating a stronger, sustainable and more efficient business.

“We are well under way with this programme and continued to make good progress in the first half of 2023.”