German insurance and reinsurance company DARAG has completed the acquisition of IKANO Försäkring (IKANO), the Sweden-based captive insurer owned by IKANO Group.
The transaction was approved by the Swedish Financial Supervisory Authority (SFSA), in September 2017, and provides IKANO Group with legal and economic finality in relation to all insurance.
In a separate step, IKANO’s non-life business is to be integrated into DARAG’s German carrier.
Other operations, such as active and life business, have been transferred to transaction partners who worked closely with DARAG to provide the IKANO with a bespoke legacy solution.
It is a landmark deal for DARAG, which has now signed 25 run-off transactions with a volume in excess of €700 million since 2009.
Stuart Davies, DARAG executive chairman, said: “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.”
He added: “DARAG offers the expertise, scale and scope to provide the solutions such clients require. We are pleased that we can, once again, show that we are able to bring the right partners together and provide finality for the client.”
IKANO Group, which was originally a part of IKEA, became an independent group of companies in 1988 and now focuses on areas such as finance, insurance, real estate and retail in Asia, with a head office in Luxembourg.