DARAG announces acquisition of Zurich’s German professional Architects’ and Engineers’ professional indemnity insurance portfolio
8 September 2019 – DARAG Group Limited (“DARAG”), a leading legacy acquirer, today announced it has reached an agreement with Zurich Insurance plc (“Zurich”) to acquire Zurich’s German architects and engineers (“A&E”) professional indemnity insurance portfolio. The transaction is subject to relevant regulatory and court approvals, in particular by the High Court in Ireland. Upon effectiveness of the transfer, DARAG’s German risk carrier, DARAG Deutsche Versicherungs- und Rückversicherungs-AG, will assume reserves of over €180mn.
The transaction shall be performed in two steps: 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.
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.
“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.”