Legacy acquirer DARAG Insurance Guernsey Limited (DIGL) has announced it is to acquire a Cayman Islands-based re/insurance captive.
The firm has signed a sale and purchase agreement (SPA) for a re/insurance captive from a very large multinational corporate that possesses long tail UK employers’ liability (EL) exposure.
According to the announcement, DIGL intends to merge with the acquired captive in due course and reinsure the longer tail portion of the portfolio to its core risk carrier in Germany, DARAG Deutschland AG.
The SPA is subject to regulatory approval from the Cayman Islands Monetary Authority, and continues DARAG’s strong track record in executing captive transactions, the firm stated.
This acquisition, it has been highlighted, is one of the larger transactions completed by DARAG in the captive space.
Tom Booth, CEO of DARAG, said: “This transaction is further evidence of DARAG’s dominance in the captive legacy space as well as its continued interest in acquiring and managing UK EL exposure. The Group is confident, given the advanced nature of a number of other attractive opportunities in its core European market, that 2024 will deliver excellent growth.
“We look to the future with increasing confidence as demand for our legacy solutions is plentiful, investment yields and capital efficiency continue at attractive levels and competition at the small to mid-sized end of the legacy market reduces.
“DARAG’s focused and well capitalised business, helped by its newly simplified structure is particularly well placed to take advantage of these much improved market conditions.”
