Legacy acquisition group DARAG Insurance Guernsey Limited (DIGL) has finalized a sale and purchase agreement (SPA) to acquire a re/insurance captive based in the Cayman Islands. The agreement is pending approval from the Cayman Islands Monetary Authority.
DIGL, a part of the DARAG Group, intends to seamlessly integrate the newly acquired captive into its operations. Subsequently, it plans to reinsure the extended tail of the portfolio through DARAG Deutschland AG, its core risk carrier in Germany.
The unnamed Cayman Islands-based captive, previously owned by a large multinational corporation, includes significant UK employers’ liability exposure. DARAG highlighted that this acquisition marks one of the group’s larger transactions within the captive insurance realm.
Tom Booth, CEO of DARAG, shared his thoughts on the deal and the opportunities it presents for the legacy group in the future.
“This transaction further showcases DARAG’s leadership in the captive legacy space and underscores our ongoing interest in acquiring and managing UK EL exposure. With numerous attractive opportunities in our core European market, we are confident that 2024 will yield excellent growth,” Booth stated.
“As demand for our legacy solutions continues to soar, and investment yields and capital efficiency remain favorable, DARAG is exceptionally positioned to capitalize on these improved market conditions,” he added. “Our focused and well-capitalized business, supported by our newly streamlined structure, is poised to seize these opportunities effectively.”
DARAG is an international insurance and reinsurance group specializing in assuming discontinued business and providing capital and operational relief solutions. Since its inception, the group has successfully executed 67 run-off transactions across 21 countries, totaling a value exceeding €1.7 billion.
Earlier this year, DARAG Group also announced the completion of two significant captive legacy deals, based in Bermuda and the Cayman Islands.
