Malta-based legacy acquirer DARAG Group has signed an agreement to acquire One Re, a UK-based non-life reinsurance company, for an undisclosed sum.
DARAG is set to execute the transaction through its German risk carrier, DARAG Deutsche Versicherungs- und Ruckversicherungs.
One Re is solely owned by 54 North and the transaction is expected to deliver complete economic and legal finality to the business. The company is engaged in providing reinsurance to African-based insurers for industrial property risks and engineering projects in Africa from 2015 till 2018.
Subject to regulatory approval, the deal marks DARAG’s first acquisition in the UK.
DARAG Group CEO Tom Booth said: “With this transaction, DARAG cements its reputation as a leading provider of legacy solutions in the European market. Our capital strength, the team’s expertise and the flexibility of our solutions has given us the ability to transact even the most complex legacy risks.
“54 North were looking for legal and economic finality and our team were able to efficiently assess and agree the acquisition, which provides us with significant portfolio diversification and an entry into the UK market. I am very pleased to announce this deal today.”
In May this year, DARAG announced that the Austrian financial authority, Finanzmarktaufsicht (FMA) given its approval for the acquisition of DONAU Versicherung’s Italian portfolio.
DARAG has signed the purchase agreement in December 2018, with the approval of the Italian Istituto per la vigilanza sulle assicurazioni (IVASS), and has completed the transfer of a portfolio of Italian non-life business from DONAU Versicherung(DONAU).
The acquired portfolio is primarily comprised of motor third party liability.
The transaction is a going concern transfer from DONAU into DARAG Italia, DARAG Group’s Italian entity. DONAU’s Italian employees and intermediaries have joined DARAG Italia.
DARAG is an international insurance and reinsurance company focused on the assumption of discontinued business and the provision of capital relief solutions.
Furthermore, the company claims that it has completed 26 run-off transactions in 15 countries, totalling more than €700m (£628m).