Bermudian-based R&Q Insurance Holdings Ltd has signed a loss portfolio transfer reinsurance agreement with a UK motor insurer covering net reserve of approximately $80 million, the company announced.

The transaction is subject to regulatory approvals and other conditions of closing.

Huw Battrick, co-head of Legacy M&A at R&Q, said: “We are pleased to announce this transaction for R&Q Legacy and work to put in place a reinsurance solution that supports our client with its ongoing business objectives”.

Parri Spector, co-head of Legacy M&A at R&Q, added: “We are seeing increased interest in legacy insurance solutions for UK motor as incumbents look to manage the current inflationary claims environment in a highly competitive marketplace and, given R&Q’s strong in-house expertise, see this as an area of opportunity.

“This transaction increases our reserves under management, and we continue to have a strong pipeline for R&Q Legacy with c $900m of identified reserves across Europe, North America and Bermuda consisting of both direct and brokered transactions.”