DARAG completes eleventh run-off transaction
Run-off insurer DARAG (Deutsche Versicherungs- und Rueckversicherungs-AG) has acquired Hamburg-based Hanseatica Rueckversicherungs-AG (Hanseatica) including its entire run-off portfolio. As of December 2012, Hanseatica had a balance sheet total of €38 million.
Hanseatica, whose single shareholder is the Portuguese-based group José de Mello, has not written any new business since 2004. The run-off portfolio of Hanseatica includes the lines third-party liability insurance, motor, marine and aviation insurance, engineering insurance and fire insurance.
DARAG will take over its entire insurance portfolio onto its own balance sheet.
“We are excited about the opportunity to take over Hanseatica. It is the first deal following our capital raise in April 2013, proving us right that run-off business in Europe is experiencing rapid growth,” says Arndt Gossmann, CEO of DARAG.
“Also, this deal has shown that safeguarding the contractual partner’s reputation is a crucial aspect within the scope of run-off transactions. DARAG offers first-class alternatives as a landmark provider of run-off insurance in Continental Europe.”
DARAG raised capital commitments of €60 million from Keyhaven Capital Partners in London in April 2013. The transaction brings the total number of its transactions to eleven.
The parties have agreed not to disclose the terms of the transaction. The transfer still has to be approved by the regulators.
