Darag Insurance Guernsey has signed a sale and purchase agreement to acquire a Cayman-based (re)insurance captive.
The contract, one of the largest transactions completed by Darag Group in the captive space, is subject to regulatory approval from the Cayman Islands Monetary Authority.
The company intends to merge with the acquired captive in due course, and reinsure the longer-tail portion of the portfolio with its core risk carrier in Germany, Darag Deutschland AG.
According to the firm, the (re)insurance captive, purchased from a very large multinational corporation, possesses long tail UK employers’ liability (EL) exposure.
Tom Booth, CEO of Darag Group, comments: “This transaction is further evidence of [Darag’s] continued interest in acquiring and managing UK EL exposure.”
He adds: “We look to the future with increasing confidence as demand for our legacy solutions is plentiful, investment yields and capital efficiency continue at attractive levels, and competition at the small to mid-sized end of the legacy market reduces.
“Darag’s focused and well capitalised business, helped by its newly simplified structure, is particularly well placed to take advantage of these much improved market conditions.”
Darag Group specialises in the assumption of discontinued business and the provision of capital and operational relief solutions.
The firm has completed 67 run-off transactions in 21 countries with a value in excess of US$1.81 billion.
