DARAG Group Ltd., the Malta-based legacy acquirer, announced it has reached an agreement with Zurich Insurance plc to acquire Zurich’s German architects and engineers (A&E) professional indemnity insurance portfolio.
The transaction is subject to relevant regulatory and court approvals, in particular by the High Court in Ireland. Upon effectiveness of the transfer, DARAG’s German risk carrier, DARAG Deutsche Versicherungs- und Rückversicherungs-AG, will assume reserves of over €180 million.
Financial details of the deal were not disclosed.
The transaction shall be performed in two steps: DARAG will initially provide Zurich with economic finality through a loss portfolio transfer (LPT), by which the portfolio is economically transferred to DARAG. Following the completion of the LPT, DARAG and Zurich will apply for an Irish Section 13 Insurance Business Transfer to achieve complete legal and operational finality.
“This significant transaction in our core German market demonstrates the capabilities of DARAG today,” said Tom Booth, CEO of DARAG Group.
“Earlier this year, we completed a significant capital upscaling of our business, enabling DARAG to transact large portfolios and tailor our offering to the needs of the most sophisticated carriers in the insurance market,” he added.
“The deal with Zurich follows a number of recently announced transactions for DARAG as we continue the strategic expansion of our business,” Booth went on to say.
“The professionalism and expertise of the Zurich team meant we were able to reach agreement quickly and efficiently, providing economic, legal and operational finality to Zurich and security to insureds. I am therefore very pleased to announce reaching agreement on this transaction.”
Was this article valuable?
Here are more articles you may enjoy.