DARAG Insurance Guernsey has completed the signing of a sale and purchase agreement (SPA) to acquire a Cayman domiciled (re)insurance captive.
The SPA is subject to regulatory approval from the Cayman Islands Monetary Authority.
DARAG intends to merge its Guernsey vehicle 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 AG.
The captive was acquired from a large multinational corporate, has long tail UK employers’ liability exposure and DARAG said it is one of the larger transactions completed by the company in the captive market.
“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,” said Tom Booth, CEO of DARAG.
“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.”
In February, DARAG Group completed two undisclosed captive legacy transactions in Bermuda and the Cayman Islands, as well as one in Hawaii.
In October, DARAG concluded a novation agreement between an undisclosed Benelux based captive, the captive’s policyholder and DARAG’s German insurance carrier, DARAG Deutschland AG.