DARAG quadruples liabilities under management in 2015

European specialty run-off insurer DARAG added some €299 million of new business to its portfolio last year, it has revealed, increasing its liabilities under management increase by 388 percent.

The run-off specialist signed three deals with a total volume of €299 million in 2015. Liabilities under management at group level almost quadrupled, growing from €77 million to €376 million.

Two transactions were structured as share deals with DARAG Group acquiring the entire company, while one transaction entailed a portfolio transfer.

Counterparties of last year´s deals were based in the UK, in Germany and in Greece. The parties have agreed not to disclose the terms of these transactions. One transaction has already been approved, while the rest are subject to regulatory approval.

Since specialising in run-off acquisitions in 2009, DARAG has now signed a total of 22 transactions in 12 European countries.

“2015 was a very strong year for run-off specialists. With the European Solvency II regulation coming into effect on January 1st, run-off has developed from a niche topic to a versatile strategic tool for capital management, widely used across Europe,” said DARAG CEO, Arndt Gossmann.

“Accordingly, the overall interest of non-life insurers in ceding risks and releasing capital has been remarkable across the European market. In this market, DARAG was able to accomplish three very strong business cases, thanks to our solid reputation and excellent track record, as well as our transaction solutions that can be tailored to the exact requirements of every individual client.”