DARAG Group Limited (“DARAG”), a leading legacy acquirer, today announced the acquisition of The Underwriter Insurance Company Limited (“The Underwriter”), a UK-based insurer in run-off. The transaction will be completed through DARAG Deutsche Versicherungs- und Ruckversicherungs-AG, DARAG’s German carrier, and is subject to regulatory approval.
The Underwriter provided cover for commercial liability risks through insurance intermediaries between 1998 and 2003. Specialty areas included employers’ liability, professional indemnity, general liability, financial institutions, professional liability and construction risks policies.
The Underwriter has been in solvent run-off since 2003 and will serve as the primary vehicle for future DARAG acquisitions in the UK. It also provides DARAG with a UK carrier to enable the company to continue seamlessly trading in the UK market post-Brexit.
Tom Booth, CEO of DARAG, said: “This transaction provides a simple and efficient solution for DARAG’s further expansion into the UK market and full legal and economic finality for The Underwriter shareholders.
“The Underwriter’s portfolios are highly complementary to our business and we look forward to announcing further transactions in the future.”
DARAG is a leading international insurance and reinsurance company specialising in the assumption of discontinued business and the provision of capital relief solutions. Building on its strong European roots with a recently announced expansion, through SOBC DARAG, into the US and Bermuda, DARAG has completed 27 run-off transactions in 16 countries with a value in excess of €750m. For more information, please visit: www.darag-group.com