DARAG Group, a specialised run-off re/insurer, has signed an agreement to acquire a portfolio of Italian non-life business from DONAU Versicherung for an undisclosed sum.

The business being acquired mainly includes DONAU’s Motor Third Party Liability business.

After completion of the deal, DONAU’s existing staff in Italy and intermediaries will be absorbed by DARAG Italia that already manages a portfolio of non-life personal lines business.

Furthermore, DONAU will exit its Italian branch operations upon closing of the transaction, subject to regulatory approvals.

DARAG Italia CEO Tullio Ferrucci said: “Italy is a core market for DARAG, and our carrier has an unparalleled ability to offer local solutions to local and foreign parties seeking a total or partial exit from their non-strategic operations.

“We are excited to be a key part of DARAG’s expansion and growth, offering legacy solutions whatever the scale and scope required.”

DARAG Group CEO Tom Booth said: “Securing €260m of committed equity capital from Aleph and Crestview in July 2018 alongside Keyhaven Capital Partners, long term shareholder, and expanding into the US and Bermuda marked an exciting new chapter for DARAG.

“To start 2019 by announcing reaching agreement on this sizeable deal is extremely pleasing and demonstrates our ability to convert an ever increasing pipeline of legacy deals.

“This transaction is significant in that it is the first of its type in the Italian market involving Italian based risks. We look forward to leveraging our unique platform as the market continues to open up to legacy based solutions.”

So far, DARAG has concluded 25 run-off transactions in 15 nations with a value of more than €600m.