DARAG, an international re/insurance group and legacy acquirer, has completed an agreement between an undisclosed Benelux based captive, the captive’s policyholder and DARAG’s German insurance carrier DARAG Deutschland AG.
According to the announcement, the parties have agreed that DARAG shall assume expired long term liability insurance policies. By way of the novation, the Group will provide full legal, operational, and economic finality for the captive.
The completion of this transaction allows the company to cease operations of its captive insurance company, DARAG stated. Guy Carpenter acted as broker and sell-side advisor.
Tom Booth, CEO of DARAG, said: “DARAG continues to expand its footprint in Benelux and has brought to bear its local claims know-how in the diligence and ongoing management of this specialist portfolio. Once again, we have proven that our Continental European DNA is a differentiator in the market place.”
Alexander Roth, global head of M&A and CEO of DARAG Europe, added: “We were delighted to be able to offer our client a comprehensive final solution for its captive insurance company via this novation agreement.
“Novation is an extremely efficient process, which meant it could be completed swiftly allowing our client to focus on its core business. This is a further demonstration of DARAG’s ability to provide timely and attentive service to clients looking to redeploy capital to further their strategic goals.”
This is one of DARAG’s latest captive transactions. Back in July, the Group announced the conclusion of two transactions with undisclosed North American captive insurance companies.
And in April, the legacy acquirer completed an agreement between an undisclosed Cayman-based captive company and its Bermudian insurance carrier, DARAG Bermuda Ltd. (DBL).
