DARAG agrees LPT deal with China Taiping’s UK subsidiary hit by Brexit

European legacy acquirer  DARAG Group’s German insurance carrier has signed an agreement for a loss portfolio transfer (LPT) with China Taiping Insurance UK (CTI), a subsidiary of China Taiping Insurance Group, as the first step towards a Part VII transfer.

CTI has been underwriting in the UK and Europe since 1985, but due to changing regulatory requirements following Brexit, has turned to the legacy market to transfer its EU book of business.

The transaction includes CTI’s business underwritten in the Republic of Ireland, the Netherlands, Belgium and Denmark and will provide a clean exit to CTI.

Tom Booth (pictured), group chief executive officer of DARAG, said: “We are delighted to partner with CTI through this transaction, which forms part of our overall strategy to offer bespoke localised solutions, backed by regional expertise. CTI’s trust in DARAG to support its clients for the remainder of their policies demonstrates the strength of our reputation to provide successful outcomes for clients.”

Alexander Roth, chief executive officer of DARAG Europe, added: “Our track record of successful transactions – both in Europe and globally - makes us the natural choice to provide a high quality and reliable legacy solution for CTI. Through our forward-thinking solutions, we are pleased to offer economic and operational finality for our partners.”

Xiaodong (Sheldon) Yu, CTI chief executive officer, commented: “Partnering with Darag for a loss portfolio transfer provides an effective and compliant solution to CTI, which is an important first step towards Part VII transfer.”