DARAG Group, a specialised run-off and legacy acquirer, has signed a retrospective quota share reinsurance agreement with Scandinavian insurance firm Protector Forsikring.
Pursuant to the terms of the reinsurance pact, DARAG Deutsche Versicherungs- und Ruckversicherungs-AG, a German risk carrier of DARAG, will act the vehicle for the transaction, effective immediately.
DARAG will reinsure Protector’s liabilities arising out of the ‘Change of Ownership’ business underwritten between 1 June 2004 and 31 March 2019.
Also, DARAG will offer coverage for all Change of Ownership business underwritten from 1 April 2019 until 30 June 2020.
DARAG Group CEO Tom Booth said: “Scandinavia has always been a core market for DARAG. As we continue with our long-term growth strategy and with our enhanced balance sheet, we have the capital strength and transactional expertise to provide solutions for even the most complex risk portfolios.
“We worked hard with Protector to devise an effective solution for their needs. It is therefore my pleasure to announce this transaction today.”
DARAG, which assumes inactive or discontinued business from direct insurers and reinsurers, acquired a portfolio of Italian non-life business, from DONAU Versicherung in May.
Through SOBC DARAG, DARAG recently expanded into the US and Bermuda. So far, the company has concluded 27 run-off transactions in 16 countries worth over €750m.