DARAG and New Nordic Advisors will acquire two portfolios of Qudos Insurance A/S, the control of which New Nordic acquired in 2017 via a joint cell structure.
The transaction, which is subject to the approval of the Danish and Maltese regulators, is the first since DARAG and New Nordic formed a strategic partnership in March.
The deal is the beginning of what is expected to be a series of joint cell transactions, where DARAG and New Nordic cooperate to deliver a holistic solution to clients.
The strategic partnership sees the combination of New Nordic’s Solvency II optimised investment strategies expertise with DARAG’s knowledge in legacy liability management.
Both entities will work together closely in a number of project areas, including the provision of legacy and capital relief solutions, active business and restructuring solutions.
Nicolai Borcher Hansen, New Nordic CEO, said the transaction will catalyse the restructure of Qudos Insurance into “a lean Scandinavian-focused insurance company”.
Borcher Hansen stated: “The team at New Nordic Advisors is delighted to have negotiated, on behalf of Qudos Insurance, the first in a series of portfolio transfer agreements with DARAG, signifying the deepening of the strategic relationship between our firms.”
Stuart Davies, executive chairman of DARAG, said: “As DARAG has continued to grow, we have remained true to our client focused approach of delivering bespoke solutions that enable them to concentrate on their core business.”
“The conclusion of our first transaction, demonstrates the strength of the strategic partnership we have forged with New Nordic and the new capabilities we are bringing to the disposal of our clients.”
Head of mergers and acquisitions, Alex Roth, said the DARAG is delighted over the conclusion of the partnership’s first transaction.
He added: “Our joint cell in Malta is the perfect home for these types of portfolios giving unrivalled access to our clients, via our partnership with New Nordic, to meaningful capital solutions.”