Houston-headquartered Skyward Specialty Insurance Group Inc has commuted a loss portfolio transfer and adverse development and retrocession agreement with R&Q Re (Bermuda) Ltd.

Skyward said it related to accident years 2018 and prior. The company received $11.7 million in cash.

Additionally, at December 31, 2024 Skyward said it strengthened LPT loss reserves by $25.3 million and recognised approximately $9.8 million, net of tax, of uncollectible reinsurance recoverable from R&Q.

Skyward Specialty chairman and chief executive Andrew Robinson said: “We are pleased to have completed the commutation of the LPT and remove future reinsurance recoverable credit risk related to this portfolio.

“We believe our reserve charge represents a conservative view of the ultimate losses at December 31, 2024.”

The Supreme Court of Bermuda has sanctioned a scheme of arrangement in relation to R&Q Re (Bermuda) Ltd.

Creditors voted unanimously in support of the scheme of arrangement on January 27, and the court sanctioned it on January 31.