DARAG announces E180M professional indemnity insurance portfolio

September 10, 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.”

About DARAG:
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 28 run-off transactions in 17 countries with a value in excess of €900m. For more
information, please visit: www.darag-group.com

Media contact
Peter Rigby
Haggie Partners LLP
Tel.: +44 207 562 4444, email: peter.rigby@haggie.co.uk

Jakub Stawiski
Haggie Partners LLP
Tel.: +44 207 562 4444, email: jakub.stawiski@haggie.co.uk

Vivian Lai
Haggie Partners LLP
Tel.: +44 207 562 4444, email: vivian.lai@haggie.co.uk