DARAG buys major UK employer liability captive book
European legacy acquirer DARAG Group laid claim to what it called one of its largest ever captive acquisitions, picking up a UK employer liability book from an unspecified large multi-national corporate.
Unit DARAG Insurance Guernsey Ltd. signed for the pending purchase of the captive re/insurance vehicle registered in Cayman. Terms of the deal were not disclosed.
“The re/insurance captive, acquired from a very large multinational corporate, possesses long tail UK employers’ liability (EL) exposure and is one of the larger transactions completed by DARAG in the captive space,” the company said.
The DARAG unit will merge with the acquired captive and reinsure the longer tail portion of the portfolio to its core risk carrier in Germany, DARAG Deutschland AG.
The deal remains subject to regulatory approval from the Cayman Islands Monetary Authority.
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.”
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