DARAG Group, a leading legacy acquirer specializing in discontinued insurance business, has successfully completed the sale of its North American and Bermuda operations to RiverStone Group. The transaction, which was announced earlier this year, has now received all necessary regulatory approvals to proceed.
Tom Booth, CEO of DARAG, emphasized that the divestment aligns with the company’s strategic objective to streamline operations and concentrate on its core European business. According to Booth, the European market presents robust opportunities for growth, enabling DARAG to leverage its well-established presence in the region.
The sale underscores DARAG’s commitment to prioritizing its European operations, where the company has cultivated a strong niche. Over the years, DARAG has completed 67 run-off transactions across 21 countries, representing a total value of more than €1.7 billion. The group remains focused on delivering capital and operational relief solutions within the insurance and reinsurance sectors.
PJT Partners and Nomura served as lead financial advisers to DARAG for the transaction, with RBC providing additional financial advisory support. Legal counsel for DARAG was provided by Proskauer Rose LLP, while RiverStone Group was advised by Norton Rose Fulbright US LLP.
In a separate development, DARAG announced in April that it had entered into a sale and purchase agreement (SPA) to acquire a re/insurance captive based in the Cayman Islands. This acquisition is part of DARAG’s broader strategy to expand its portfolio of captive insurance solutions.
DIGL, a subsidiary of DARAG Group, plans to integrate the Cayman Islands-based captive into its operations and subsequently reinsure the extended tail of the portfolio through DARAG Deutschland AG, the group’s core risk carrier in Germany. The acquired entity, previously owned by a large multinational corporation, includes substantial UK employers’ liability exposure. DARAG highlighted that this acquisition represents one of its largest transactions in the captive insurance realm.
These strategic moves reflect DARAG’s commitment to optimizing its global footprint and reinforcing its leadership in the legacy insurance market.
