DARAG Group, a legacy acquisition specialist focused on the European and UK markets, and wefox Insurance AG, the Liechtenstein-based insurance carrier of the wefox Group, have announced the transfer of a run-off portfolio.
The transaction includes motor damage and third-party liability, private liability, and property business across Germany, Italy, and Switzerland.
The portfolio transfer is connected to the previously disclosed sale of wefox Insurance AG to a consortium of Swiss companies led by BERAG. Claims services for all existing policyholders will continue without disruption.
The agreement also involves an initial loss portfolio transfer (LPT), followed by the full transfer of all European Economic Area (EEA) domiciled business, pending regulatory approval.
Tom Booth (pictured above), CEO of DARAG, said that this transaction marks a significant start to 2025, coinciding with DARAG's 15th year as a run-off consolidator in Europe.
“It is further evidence of DARAG’s premier position in offering legacy solutions to the European market with our well capitalized German based carrier and local claims management expertise. Our track record in providing legal finality is unparalleled in the European market,” Booth said.
Peter Huber, CEO of wefox Insurance AG, expressed confidence in DARAG as a partner for managing the portfolio.
“We now are very confident that we will be able to successfully complete the announced sale of wefox Insurance AG in the first half of 2025. This is a further step towards our future focus on the Swiss short- and long-term absence market,” Huber said.
In December, DARAG also announced that it has finalized the sale of its North American and Bermuda operations to RiverStone Group.
“We are pleased to complete this transaction, which simplifies DARAG’s operations. It allows the group to focus on its core European business, and brings additional capital to execute a strong pipeline of European transactions, several of which are in advanced stages of negotiation,” Booth said.
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