DARAG to buy Zurich’s €180m German A&E professional indemnity portfolio in expansion move

European legacy acquirer DARAG Group has agreed to acquire Zurich Insurance's German architects and engineers (A&E) professional indemnity insurance portfolio, assuming reserves of over €180 million.

DARAG will initially provide Zurich with economic finality through a loss portfolio transfer (LPT), by which the portfolio is economically transferred to DARAG.

Following the completion of the LPT, DARAG and Zurich will apply for an Irish Section 13 Insurance Business Transfer (IBT) to achieve complete legal and operational finality.

The transaction is subject to relevant regulatory and court approvals, in particular by the High Court in Ireland.

DARAG’s German risk carrier, DARAG Deutsche Versicherungs- und Rückversicherungs-AG, will assume reserves of over €180 million.

Tom Booth, CEO of DARAG Group, said: “This significant transaction in our core German market demonstrates the capabilities of DARAG today. Earlier this year, we completed a significant capital upscaling of our business, enabling DARAG to transact large portfolios and tailor our offering to the needs of the most sophisticated carriers in the insurance market. The deal with Zurich follows a number of recently announced transactions for DARAG as we continue the strategic expansion of our business.

He added: “The professionalism and expertise of the Zurich team meant we were able to reach agreement quickly and efficiently, providing economic, legal and operational finality to Zurich and security to insureds. I am therefore very pleased to announce reaching agreement on this transaction.”