Legacy acquirer DARAG Group Limited has announced a new Portfolio Transfer Agreement with German insurer and reinsurer, SOVAG.
The legacy book, which comprises direct insurance and inwards reinsurance business, will be transferred to DARAG’s German subsidiary, DARAG Versicherungs- und Ruckversicherungs-AG.
The legacy portfolio transfer is part of SOVAG’s ongoing restructuring, and DARAG will provide complete finality, as requested by SOVAG’s shareholders, following its restructure.
The direct insurance business in the legacy book includes a number of specialty lines, including liability, property, transport and motor, with customers in Germany, Spain, Malta, Belgium, the Netherlands, and Austria. The inwards reinsurance portfolio includes both European and international business, underwritten by SOVAG’s UK office, and German risks underwritten by its Hamburg office.
DARAG Group’s Chief Executive Officer (CEO), Tom Booth, said: “SOVAG’s diversified book is a great match with DARAG’s other portfolios and this transaction highlights our deep understanding of the German re/insurance market’s legacy needs. Germany remains an important market for DARAG, as we press ahead with our long-term expansion strategy across Europe and beyond.”
Arndt Gossmann, CEO of SOVAG, added: “The sale of our run-off portfolio has been a major step in SOVAG’s restructuring and we are satisfied to hand over a legacy portfolio that is in excellent financial shape. DARAG’s strength and reliability have been the determining factors for our decision.
“In DARAG we have an excellent partner to ensure that the portfolio and the outstanding claims are dealt with at the highest level.”