DARAG Group, a legacy acquirer specializing in discontinued insurance business, has finalized the sale of its North American and Bermuda operations to RiverStone Group. The transaction, announced today, received the necessary regulatory approvals to proceed.
Tom Booth, CEO of DARAG, stated that the transaction streamlines the company’s operations and positions it to focus on its core European business.
“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.
Booth described the European market as offering strong opportunities, where DARAG aims to capitalize on its established position.
Announced earlier this year, the sale aligns with DARAG’s strategy of prioritizing its European operations, where the company has built a niche presence.
DARAG was advised on the transaction by PJT Partners and Nomura as lead financial advisers, RBC as financial adviser, and Proskauer Rose LLP as legal counsel. RiverStone Group’s legal counsel for the deal was Norton Rose Fulbright US LLP.
DARAG has completed 67 run-off transactions across 21 countries, with a total value exceeding €1.7 billion. The company focuses on providing capital and operational relief solutions in the insurance and reinsurance sectors.
In April, the legacy acquisition group also entered into a sale and purchase agreement (SPA) to acquire a re/insurance captive based in the Cayman Islands.
DIGL, part of DARAG Group, plans to integrate the newly acquired captive into its operations and subsequently reinsure the extended tail of the portfolio through DARAG Deutschland AG, its core risk carrier in Germany.
The unnamed Cayman Islands-based captive was previously owned by a large multinational corporation and includes significant UK employers’ liability exposure. DARAG noted that this acquisition marks one of the group’s larger transactions within the captive insurance realm.
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