DARAG to buy Cayman captive
DARAG Insurance Guernsey, a legacy insurer which has operations in Bermuda, has agreed to buy a Cayman Island based captive re/insurer.
DARAG, said it intends to merge with the acquired captive in due course and reinsure the longer tail portion of the portfolio to its core risk carrier in Germany, DARAG Deutschland.
The (re)insurance captive, acquired from a very large multinational corporate, possesses long tail UK employers’ liability (EL) exposure and is one of the larger transactions completed by DARAG in the captive space.
Tom Booth, CEO of DARAG, said: “This transaction is further evidence of DARAG’s dominance in the captive legacy space as well as its continued interest in acquiring and managing UK EL exposure.
"The Group is confident, given the advanced nature of a number of other attractive opportunities in its core European market, that 2024 will deliver excellent growth.
“We look to the future with increasing confidence as demand for our legacy solutions is plentiful, investment yields and capital efficiency continue at attractive levels and competition at the small to mid-sized end of the legacy market reduces.
"DARAG’s focused and well capitalised business, helped by its newly simplified structure is particularly well placed to take advantage of these much improved market conditions.”
The sale is subject to regulatory approval from the Cayman Islands Monetary Authority. DARAG has completed 67 run-off transactions in 21 countries with a value in excess of €1.7 billion.
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