DARAG Group Ltd., a leading European legacy acquirer, it has acquired IKANO Försäkring AB, the Sweden-based insurance company.
The transaction provides the owner of the Swedish insurer with legal and economic finality in relation to all its insurance business and has received approval from the Swedish Financial Supervisory Authority (SFSA), said DARAG in a statement. IKONO Försäkring’s parent company is IKANO Insurance Holding AG, which is 51 percent owned by IKANO Group and 49 percent owned by INGKA Group (IKEA), explained a DARAG representative.
In a separate step, IKANO’s non-life business will be integrated into DARAG’s German carrier. The remaining operations, including active and life business, have been transferred to transaction partners which worked closely with DARAG to provide IKANO with a tailored legacy solution.
“The operational and capital burdens following the implementation of Solvency II are driving companies, for which insurance is non-core to their overall business or strategy, to dispose of elements of their business that drain too much management time, operational resources and capital,” said Stuart Davies, executive chairman at DARAG.
DARAG describes itself as the first German insurance and reinsurance company specializing in the assumption of discontinued business and the provision of capital relief solutions. DARAG Group has its origins in the German DARAG Deutsche Versicherungs und Rückversicherungs AG. Since 2009, DARAG has signed 25 run-off transactions from 14 countries with a volume in excess of €700 million ($862.4 million).
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