DARAG Group Ltd., the Malta-based legacy acquirer, announced it has entered into a retrospective quota share reinsurance agreement with Protector Forsikring, the Norwegian insurance company.
DARAG’s German risk carrier, DARAG Deutsche Versicherungs-und Ruckversicherungs-AG, is the vehicle for the transaction, which is effective immediately.
DARAG will provide Protector with reinsurance cover for liabilities arising out of “Change of Ownership” business underwritten between June 1, 2004 and March 31, 2019. In addition, DARAG will provide cover for all Change of Ownership business underwritten from April 1, 2019 until June 30, 2020.
(Editor’s note: Scandinavian homeowners buy “Change of Ownership” cover to protect them against financial liability from disputes related to hidden defects when a house is sold. Protector announced in December 2018 that it was withdrawing from this line of business because of its weak technical performance in recent years.)
“Scandinavia has always been a core market for DARAG,” said Tom Booth, CEO of DARAG Group.
“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,” he added.
“We worked hard with Protector to devise an effective solution for their needs. It is therefore my pleasure to announce this transaction today.”
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