Legacy Acquirer DARAG Group Ltd. announced it has agreed to purchase a portfolio of Italian non-life business, consisting primarily of motor third party liability from DONAU Versicherung AG.
Financial details of the transaction, which is subject to approval by the relevant local authorities, were not disclosed.
The transaction comprises a going-concern transfer from DONAU into DARAG Italia S.p.A, DARAG Group’s Milan, Italy-based subsidiary. In addition, DONAU’s existing Italian employees and intermediaries will transfer into DARAG Italia, which has an existing portfolio of non-life personal lines business.
The transfer provides DONAU, which is a subsidiary of Vienna Insurance Group, with a clean exit from its Italian branch operations and is the first third party transfer into DARAG Italia.
“Italy is a core market for DARAG, and our carrier has an unparalleled ability to offer local solutions to local and foreign parties seeking a total or partial exit from their non-strategic operations,” said Tullio Ferrucci, CEO of DARAG Italia. “We are excited to be a key part of DARAG’s expansion and growth, offering legacy solutions whatever the scale and scope required.”
Tom Booth, CEO of DARAG Group, said the company has entered into an “exciting new chapter” with its expansion into the U.S. and Bermuda as well as the €260 million ($295.6 million) of committed equity capital, which it secured in July 2018 from Aleph and Crestview, alongside long-term shareholder, Keyhaven Capital Partners.
“To start 2019 by announcing reaching agreement on this sizable deal is extremely pleasing and demonstrates our ability to convert an ever-increasing pipeline of legacy deals,” said Booth, noting that this transaction is the first of its type in the Italian market involving Italian based risks.
“We were delighted to have been selected to work with DONAU to provide a solution to assist their withdrawal from the Italian market, delivering capital and operational benefits,” he continued.
Malta-based DARAG has completed 25 run-off transactions in 15 countries with a value in excess of €600 million ($682.2 million).
Source: DARAG
Topics Mergers & Acquisitions
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