DARAG Guernsey has acquired the Guernsey-based captive (re)insurer Thames Water Insurance Company (TWIC) from its parent Kemble Water Finance.
The share purchase agreement was signed and completed on 16 October 2019 in cooperation with the broker Willis Towers Watson, who will continue to act as captive manager in the future.
The captive will be renamed DARAG Insurance (Guernsey) and will serve as a consolidator for certain future DARAG non-European Economic Area (EEA) legacy deals, including captive acquisitions and other legacy reinsurance contracts.
TWICL, which is the captive (re-)insurer for Thames Water and subsidiary companies, was placed into run-off in 2005, providing coverage for burst pipes, public liability, employers’ liability, personal accident, property damage and business interruption and professional indemnity.
Tom Booth, CEO, DARAG, said: “DARAG and SOBC DARAG have developed an expansive international platform over the past year, with the ability to seamlessly conduct business across continental Europe and the UK under DARAG Group in Malta, and more latterly Bermuda and the US under SOBC DARAG.”
He continued: “DARAG Insurance (Guernsey) will provide a further option for the acquisition of legacy captive and LPT business outside of the EEA. We are an established provider of legacy solutions for captive (re)insurers and are looking to grow our imprint in the sector.”
He added: ”This transaction provides Kemble Water with legal and economic finality for its liabilities assumed through the Thames Water captive. With a strong pipeline of deals for the next few months, I’m very pleased to announce this acquisition and look forward to concluding more in the future.”
