Insurance run-off specialist Randall & Quilter has bought another company after doubling interim profits to £4.4 million pre-tax.

The AIM-quoted company is run by Lloyd’s veteran Ken Randall. It buys ‘solvent’ non-life insurance companies writing no new business but running off old policies. Randall has also acquired another successful run-off concern, KMS, for £1.78 million. KMS was set up by management three years ago and is the successor company to KWELM Management Services. It was established in 1992 to administer a scheme of arrangement, then the world’s largest ever in the sector, for five companies involved in the collapse of the London United Insurance Group.

Randall & Quilter increased profits in the six months to June despite a £200,000 slide in total income to £10.6 million, with an eightfold jump in net insurance claims released to £4.6 million. The company recovered 85 per cent of the cost of acquiring the Chevanstall concern with an £11 million capital release and is on the lookout for more deals, after arranging a £30 million revolving credit facility for that purpose.

Floated last December at 125p, Randall & Quilter shares reached 152.5p in June, but have now eased to 139p, valuing the company at £78 million. They could fare better over the longer term.

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Randall & Quilter Investment	AIM	£73.25m	131.00p	0.00p
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