Legacy carrier DARAG has concluded a novation agreement between an undisclosed Benelux based captive, the captive’s policyholder and DARAG’s German insurance carrier DARAG Deutschland AG.
The parties have agreed that DARAG shall assume expired long term liability insurance policies.
“DARAG continues to expand its footprint in Benelux and has brought to bear its local claims know-how in the diligence and ongoing management of this specialist portfolio,” said Tom Booth, DARAG CEO.
“Once again, we have proven that our Continental European DNA is a differentiator in the marketplace.”
DARAG will provide full legal, operational, and economic finality for the captive, with the transaction allowing the company to cease operations of its captive.
Guy Carpenter acted as broker and sell-side advisor on this transaction.
“We were delighted to be able to offer our client a comprehensive final solution for its captive insurance company via this novation agreement,” said Alexander Roth, global head of M&A and CEO of DARAG Europe.
“Novation is an extremely efficient process, which meant it could be completed swiftly allowing our client to focus on its core business.”
Roth said the deal was further demonstration of DARAG’s ability to provide “timely and attentive service” to clients looking to redeploy capital to further their strategic goals.