Legacy acquirer DARAG Group Limited has announced an agreement to acquire a portfolio of Italian non-life business from DONAU Versicherung AG, subject to regulatory approval.
The portfolio consists primarily of motor third party liability business, and the transaction also comprises a going concern transfer from DONAU into DARAG Italia S.p.A., the firm’s Italian arm.
According to an announcement, the transfer provides DONAU with a clean exit from its Italian business and is the first third party transfer into DARAG’s Italian business. Furthermore, DONAU’s existing Italian employees and intermediaries will transfer into DARAG Italia.
DARAG Italia Chief Executive Officer (CEO), Tullio Ferrucci, said: “Italy is a core market for DARAG, and our carrier has an unparalleled ability to offer local solutions to local and foreign parties seeking a total or partial exit from their non-strategic operations. We are excited to be a key part of DARAG’s expansion and growth, offering legacy solutions whatever the scale and scope required.”
DARAG Group CEO, Tom Booth, added: “Securing €260m of committed equity capital from Aleph and Crestview in July 2018 alongside Keyhaven Capital Partners, long term shareholder, and expanding into the US and Bermuda marked an exciting new chapter for DARAG. To start 2019 by announcing reaching agreement on this sizeable deal is extremely pleasing and demonstrates our ability to convert an ever increasing pipeline of legacy deals.
“Our expertise in European markets remains unparalleled, and we continue to build on our key strength: our ability to deliver flexible capital management solutions for even the most complex legacy portfolios. Italy is an example of a country where our ability to deliver a purely local solution is vital to successful execution and by potential clients. This transaction is significant in that it is the first of its type in the Italian market involving Italian based risks. We look forward to leveraging our unique platform as the market continues to open up to legacy based solutions.
“We were delighted to have been selected to work with DONAU to provide a solution to assist their withdrawal from the Italian market, delivering capital and operational benefits.”