DARAG is expanding internationally, building on its European roots, the group has completed 29 run-off transactions in 18 countries with a value excess of £777m (€900m)
DARAG has acquired Guernsey-based captive (re)insurer – Thames Water Insurance Company Limited (TWICL) from its parent Kemble Water Finance Limited.
The share purchase agreement was signed and completed on Wednesday via its Guernsey subsidiary. Willis Towers Watson (WTW) will continue to act as a captive manager.
The captive manager will be renamed DARAG Insurance (Guernsey) Limited and serve as a consolidator for some upcoming DARAG non-EEA legacy deals including captive acquisitions as well as other legacy reinsurance contracts.
The captive (re)insurer for Thames Water Limited and subsidiary companies was placed into run-off in 2005.
TWICL provided coverage for burst pipes, public liability, employers’ liability, personal accident, property damage, business interruption and professional indemnity.
Speaking about the deal, Tom Booth, chief executive at DARAG, said: “This transaction provides Kemble Water with legal and economic finality for its liabilities assumed through the Thames Water captive.
”With a strong pipeline of deals for the next few months, I’m very pleased to announce this acquisition and look forward to concluding more in the future.
“DARAG Insurance (Guernsey) will provide a further option for the acquisition of legacy captive and LPT business outside of the EEA (European Economic Area).”
Booth said that as DARAG is “an established provider of legacy solutions for captive (re) insurers, it is looking to grow its imprint in the sector”.
He explained that DARAG and SOBC DARAG – the latter of which specialises in providing solutions for businesses in runoff, have developed a an expansive international platform over the past year, with the ability to “seamlessly conduct business across Europe and the UK under DARAG Group Limited in Malta” and Bermuda and the US under SOBC DARAG.
DARAG is expanding internationally, building on its European roots. Overall the group has completed 29 run-off transactions in 18 countries with a value excess of £777m (€900m).
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