Possible MQ insurance concerns: part 1 -Artex RR4 – an R&R owned insurance captive
At the Jan 2020 AGM we were told what good value for money (VFM) MQ’s insurance is and that the rate used to calculate our premium is in the lowest 5% out of the Rendall and Rittner (R&R) portfolio. So why are questions raised about MQ insurance?
R&R structure R&R has a fairly opaque structure. A holding company R&R Residential Management Limited (R&R RML), wholly owns eight companies including Rendall and Rittner Limited (R&R) and Artex Insurance (RR4) IC Limited (Artex RR4) – a Guernsey registered insurance company.
R&R insurance arrangements Since 2015 R&R has insured its property portfolio with AXA. AXA have then ‘re-insured’ a part of the risk with Artex RR4 (owned by R&R RML). Figures extracted from the R&R RML accounts for their Insurance Activity are:
![](https://static.wixstatic.com/media/a27d24_053a2304253a4fc89e0e07001948213b~mv2.jpg/v1/fill/w_740,h_579,al_c,q_90,usm_0.66_1.00_0.01/a27d24_053a2304253a4fc89e0e07001948213b~mv2.webp)
Gross and net profit hovering around 40% of the turnover is hardly modest but equally concerning the “Aggregate” figure is apparently the limit of Artex RR4’s liability. As this is less than turnover (reinsurance premiums from AXA) it presumably means making a loss is impossible and raises the question as to if this is really “insurance”. Information from Artex Risk Solutions, a company that helps set up companies such as Artex RR4 indicates it probably has more to do with avoiding declaring commission – see link.
Is it good value? All of this may not matter if it is good value for money – in the Jan 2020 AGM the meeting was told that at the last renewal “AXA provide terms that were £21,945.11 more competitive than any of the 13 insurers approached and £50,511.24 more competitive than the most expensive”. Unfortunately, these can’t be scrutinised as the chair of MQA-G has declined to share these. However, we may gain an insight from another development.
Quay 430 was another R&R managed development. They were so concerned about the Artex RR4 arrangement that they got their own quotes and switched their insurance from R&R saving £61k or 34% of the £180k premium! Apparently, they subsequently switched managing agents after 22 years with R&R with a further saving of £30k.
Should we be concerned about MQ insurance and if it really is good value for money?
If you are concerned about issues raised in this item and want to try to change things, or wish to express your support to those organising the site then contact : independentmqra@gmail.com
Likewise if there are issues you would like to raise.
Note: Views in this piece and on this site are the honest opinion of the author & are made available in the interest of residents at MQ.