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Insurance media, GLOBAL – R&Q Insurance Holdings is preparing to divest its accredited program management business to private equity investment manager Onex Corporation. Currently, the two companies are in the negotiation phase.

Reported by the Reinsurance News page, this news was reported last night and this morning R&Q submitted a stock announcement confirming its validity.

R&Q completed the internal separation of its program management business, Accredited, from its traditional insurance business earlier this summer and clarified its intentions for the Accredited business.

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The move means that Accredited and R&Q Legacy can operate under two separate holding companies, while R&Q also notes that the separation is a condition of Accredited receiving separate subgroup financial strength ratings from AM Best.

However, R&Q also said at the time that it was still exploring possible strategic third-party transactions that would allow Accredited to operate independently and that a process was underway in June for a possible sale of Accredited , with interest already expressed by a number of parties.

The sale of the program management business will enable R&Q to realize the value of Accredited, while allowing it to focus on the core activities that constitute the company’s legacy.

For Onex, Canada’s leading private equity investor, adding another insurance stake to its portfolio will give it access to another part of the insurance and reinsurance value chain, having already invested in Convex, Cypress P&C, Ryan Specialty Group, USI and others.

Editor: S. Edi Santosa