DARAG forms platform in Southern Europe via acquisition

DARAG, the European run-off specialist, is to acquire ERGO Assicurazioni (ERGO), an Italian insurance consolidator – its first transaction in Italy and one which will give the company a platform in Southern Europe.

ERGO was part of the ERGO Italia Group and was sold in 2015 by German insurance group, ERGO Group, a sale approved by the regulator IVASS.

ERGO’s portfolio includes retail non-life personal line products. Once it is confirmed with IVASS, ERGO will be renamed DARAG Group and will be a platform for DARAG’s activities in Southern Europe.

DARAG said it plans to continue to develop ERGO’s current line of business but also establish a second pillar, of run-off operations.

“Italy is a very attractive market, ranking number five in Europe in terms of gross written premiums. Through ERGO Assicurazioni, we can leverage the expertise and professionalism of our new Italian colleagues who are already well positioned in the Italian insurance market today,” said Arndt Gossmann, group CEO of DARAG.

“By adding run-off solutions to the existing lines of business, ERGO Assicurazioni can also spearhead the introduction of highly efficient capital management instruments in the Italian market.”