Onex Partners V to acquire Accredited from R&Q Insurance Holdings

CPE News

CPE News (10.21.2023) – Onex Corporation (TSX: ONEX) has announced that Onex Partners V has agreed to acquire Accredited, the global program management business of R&Q Insurance Holdings Ltd. (LSE: RQIH).

Onex chose not to disclose purchase price in its news release while it is publicly available from R&Q.

R&Q disclosed the entering into a conditional agreement with Onex Partners V to sell 100% of the equity interest in Randall & Quilter America Holding Inc., the holding company of Accredited, for an enterprise value of $465 million, representing an expected equity value of approximately $438 million. (all dollar figures in US dollars)

R&Q said the closing of the sale is conditional on R&Q shareholder approval, regulatory approval and customary consents from certain R&Q debt providers. The sale is also conditional on the transfer of R&Q’s CEO William Spiegel, and CFO Thomas Solomon to Accredited upon closing.

Accredited is a leading program manager, providing A-rated insurance capacity in the US, UK and Europe. Accredited’s US, UK and EU-regulated insurance companies act as an intermediary between Managing General Agents (MGAs) and reinsurers. Accredited has grown significantly over the last three years achieving Gross Written Premium and Fee Income of $1.8 billion and $80 million, respectively, in the twelve months to 31st December 2022, and $1.1 billion and $46 million, respectively, in the six months to 30th June 2023.

Accredited Surety and Casualty Company, Inc., a Florida domiciled company founded in 1971, was acquired by R&Q in November 2014 for $20 million with $5 million deferred payment.

photo credit: R&Q Accredited

News Release

Onex Partners to Acquire Accredited from R&Q Insurance Holdings

TORONTO, October 20, 2023 – Onex Corporation (“Onex”) (TSX: ONEX) today announced that Onex Partners V has agreed to acquire Accredited, the global program management business of R&Q Insurance Holdings (“R&Q”).

Accredited is a specialty insurance company operating in North America and Europe that provides underwriting capacity to Managing General Agents (“MGAs”) with support from the global reinsurance market. Accredited operates as a hybrid fronting carrier, retaining a portion of the premium and risk it underwrites while ceding the majority to reinsurance partners. It is the only dedicated hybrid fronting carrier to provide A- rated insurance capacity in each of the U.S., UK, and EU, with licenses to write admitted business in all 50 U.S. states.

Adam Cobourn, Managing Director at Onex Partners, said, “We are pleased to have the opportunity to establish Accredited as an independent, market-leading program management platform. Accredited has all the ingredients for success as a hybrid carrier, including a talented management team, a well-diversified and high-quality book of business, strong reinsurer relationships and robust underwriting and risk management protocols. It will be well positioned for responsible growth with a strong balance sheet and backing from Onex Partners. Investing in the insurance industry has been a core strength for Onex for many years. We look forward to supporting Accredited’s management team in this next phase of growth.”

The transaction is anticipated to close in the first half of 2024, subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval by R&Q’s shareholders.

Evercore served as lead financial advisor and Latham & Watkins LLP acted as legal counsel to Onex. BMO Capital Markets, Citigroup, and CIBC Capital Markets also provided financial advisory services to Onex.

About Onex

Onex is an investor and asset manager that invests capital on behalf of Onex shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. Onex’ two primary businesses are Private Equity and Credit. In Private Equity, we raise funds from third-party investors, or limited partners, and invest them, along with Onex’ own investing capital, through the funds of our private equity platforms, Onex Partners and ONCAP. Similarly, in Credit, we raise and invest capital across several private credit, public credit and public equity strategies. Our investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, insurance companies and family offices. In total, Onex has $49.5 billion in assets under management, of which $7.9 billion is Onex’ own investing capital. With offices in Toronto, New York, New Jersey, Boston and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.

Onex is listed on the Toronto Stock Exchange under the symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedar.com.

Forward-Looking Statements

This press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as “believes”, “expects”, “potential”, “anticipates”, “estimates”, “intends”, “plans” and words of similar connotation, which would constitute forward-looking statements. Forward-looking statements are not guarantees. The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance or results to be materially different from those indicated in these forward-looking statements. Except as may be required by Canadian securities law, Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. These cautionary statements expressly qualify all forward-looking statements in this press release.

For Further Information:
Jill Homenuk
Managing Director – Shareholder
Relations and Communications
Tel: +1 416.362.7711

Zev Korman
Vice President, Shareholder
Relations and Communications
Tel: +1 416.362.7711