Legacy acquirer DARAG Group Limited has entered into an agreement with Zurich Insurance plc to acquire Zurich’s German architects and engineers professional indemnity insurance portfolio.
Upon effectiveness of the transfer, which remains subject to relevant regulatory and court approvals, DARAG Deutsche Versicherungs- und Rückversicherungs-AG, the firm’s German risk carrier, will assume reserves of more than €180 million.
DARAG has revealed that the transfer is to be completed in two steps, with DARAG initially providing Zurich with economic finality through a Loss Portfolio Transfer (LPT), by which the portfolio is economically transferred to DARAG. Once the LPT has completed, DARAG and Zurich will apply for an Irish Section 13 Insurance Business Transfer (IBT) to achieve complete legal and operational finality.
Chief Executive Officer (CEO) of DARAG Group, Tom Booth, said: “This significant transaction in our core German market demonstrates the capabilities of DARAG today. Earlier this year, we completed a significant capital upscaling of our business, enabling DARAG to transact large portfolios and tailor our offering to the needs of the most sophisticated carriers in the insurance market. The deal with Zurich follows a number of recently announced transactions for DARAG as we continue the strategic expansion of our business.
“The professionalism and expertise of the Zurich team meant we were able to reach agreement quickly and efficiently, providing economic, legal and operational finality to Zurich and security to insureds. I am therefore very pleased to announce reaching agreement on this transaction.”