GCIR&Q Insurance shares plummet on weak guidance
, the AIM-listed non-life insurer, lost almost half of its market value on Friday after announcing it would report a "significant pre-tax loss" for last year.
The Bermuda-headquartered company said the new guidance was a result of adverse developments in the Legacy division and a big increase in corporate costs in relation to the sale of its Accredited division.
R&Q Legacy is expected to realise "adverse development of ~23% of the group's net reserves" for 2023.
Reserves under management in R&Q Legacy were around $1bn by the end of 2023, though this will fall by $670m after the sale of the corporate liabilities joint venture with Obra for $27m.
"Although we believe that the corporate liabilities market continues to represent an attractive long-term opportunity, developing regulations, including potential changes around capital requirements, have reduced the strategic attractiveness of direct equity participation in joint ventures of this type for R&Q," said chair Jeff Hayman.
The stock was down 45% at just 3.03p by 1101 BST.
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