Deal will reinsure the prolonged tail of agency’s core danger service in Germany
Legacy acquisition group DARAG Insurance coverage Guernsey Restricted (DIGL) has entered right into a sale and buy settlement (SPA) to amass a re/insurance coverage captive based mostly within the Cayman Islands. The settlement is contingent on approval from the Cayman Islands Financial Authority.
DIGL, a part of DARAG Group, plans to combine the newly acquired captive into its operations and subsequently reinsure the prolonged tail of the portfolio by way of DARAG Deutschland AG, its core danger service in Germany.
The unnamed Cayman Islands-based captive was beforehand owned by a big multinational company and consists of vital UK employers’ legal responsibility publicity. DARAG famous that this acquisition marks one of many group’s bigger transactions throughout the captive insurance coverage realm.
Tom Sales space, CEO of DARAG, commented on the deal and the chance it can current for the legacy group sooner or later.
“This transaction is additional proof of DARAG’s dominance within the captive legacy area in addition to its continued curiosity in buying and managing UK EL publicity. The group is assured, given the superior nature of a lot of different engaging alternatives in its core European market, that 2024 will ship glorious progress,” Sales space stated.
“We glance to the long run with growing confidence as demand for our legacy options is plentiful, funding yields and capital effectivity proceed at engaging ranges and competitors on the small to mid-sized finish of the legacy market reduces,” he stated. “DARAG’s centered and nicely capitalized enterprise, helped by its newly simplified construction is especially nicely positioned to make the most of these a lot improved market circumstances.”
DARAG is a world insurance coverage and reinsurance group specializing within the assumption of discontinued enterprise and offering capital and operational aid options. Since its inception, the group has efficiently executed 67 run-off transactions throughout 21 international locations, totaling a price in extra of €1.7 billion.
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