DARAG obliges SPA to purchase Cayman-Captive | Insurance business America
The deal will reinsure the expanded portion of the company’s core risk carrier in Germany
reinsurance
By Kenneth Araullo
Legacy acquisition group DARAG Insurance Guernsey Limited (DIGL) has entered into a sale and purchase agreement (SPA) to acquire a re/insurance company based in the Cayman Islands. The agreement is subject to the approval of the Cayman Islands Monetary Authority.
DIGL, part of the DARAG Group, plans to integrate the newly acquired captive into its operations and then reinsure the expanded part of the portfolio through DARAG Deutschland AG, its core risk carrier in Germany.
The unnamed Cayman Islands-based captive was previously owned by a large multinational corporation and poses significant liability risks for UK employers. DARAG noted that this acquisition represents one of the group’s larger transactions in the captive insurance sector.
Tom Booth, CEO of DARAG, commented on the deal and the opportunities it will provide for the old group in the future.
“This transaction is further evidence of DARAG’s dominance in the captive legacy space and its continued interest in acquiring and managing the UK EL exposure. “Given the advanced nature of a number of other attractive opportunities in its core European market, the group is confident of delivering excellent growth in 2024,” Booth said.
“We look to the future with increasing confidence as demand for our legacy solutions remains strong, investment returns and capital efficiency remain at attractive levels, and competition in the small to mid-sized legacy market is easing,” he said. “DARAG’s focused and well-capitalized company is particularly well positioned to benefit from these significantly improved market conditions thanks to its newly simplified structure.”
DARAG is an international insurance and reinsurance group specializing in the acquisition of discontinued businesses and the provision of capital and operational relief solutions. Since its inception, the group has successfully completed 67 settlement transactions in 21 countries with a total value of over €1.7 billion.
What do you think about this story? Please share your comments below.
Stay up to date with the latest news and events
Join our mailing list, it’s free!
Source link
2024-04-19 13:15:00
www.insurancebusinessmag.com
