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January 20, 2020

DARAG announces completion of loss portfolio transfer

Legacy acquirer DARAG has announced the completion of a transaction with a Multi-National insurance company for more than $100m.

The deal was completed through DARAG Insurance Guernsey (DIGL) which is offering economic and operational finality for the counter-party’s US General Liability book of business.

DARAG CEO Tom Booth said: “We continue to expand our geographical footprint, illustrated by the completion of this sizeable US transaction underwritten by DIGL.

“The portfolio            will be managed through service agreements between DIGL and our SOBC DARAG operations in the US.

“I am delighted to be able to announce our continued growth and success in providing attractive legacy solutions to the market.”

For the transaction, TigerRisk has acted as advisers to both the companies.

In August 2019, DARAG had signed a new portfolio transfer pact with Germany-based re/insurer major SCHWARZMEER UND OSTSEE Versicherungsaktiengesellschaft (SOVAG).

As per the terms of the agreement, the legacy portfolio comprising direct insurance and inwards reinsurance business would be transferred to DARAG’s German risk carrier, DARAG Deutsche Versicherungs- und Ruckversicherungs.

Prior to that, DARAG Group had finalised its acquisition of The Underwriter Insurance Company as part of its strategy to further strengthen its operations in the UK.

The Underwriter, which is currently under run-off, offered cover for commercial liability risks through insurance intermediaries between 1998 and 2003.

DARAG specialises in the assumption of discontinued business and the provision of capital relief solutions. The Group claims to have completed 33 run-off transactions in 18 countries with a value in excess of €1.1bn.

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