DARAG Group has entered into an agreement with Soteria Insurance Ltd. (SIL) for a loss portfolio transfer involving a portfolio of UK commercial policies in run-off.
The transaction is structured to transfer the liabilities to DARAG Deutschland AG through reinsurance, with a subsequent Part VII transfer of the portfolio to DARAG Insurance UK Ltd. planned, subject to regulatory approvals.
SIL, formerly known as CIS General Insurance Ltd., was the underwriting business of the Co-operative Group. The deal aligns with DARAG’s strategy of expanding its legacy portfolio in the UK and European markets.
DARAG CEO Tom Booth (pictured above) said this deal marks the end of the first quarter of 2025 and coincides with DARAG’s 15th year in business. Booth also said that the company expects to announce additional transactions in the coming months.
In 2024, DARAG Group underwent significant strategic shifts and completed notable transactions.
In December, DARAG finalized the sale of its North American and Bermuda operations to RiverStone Group, a subsidiary of Fairfax Financial Holdings Ltd. This move was aimed at streamlining DARAG's operations and refocusing on its core European market.
Earlier in the year, DARAG completed two significant captive legacy transactions. The first involved a Bermuda-based captive for insured risks through to 2016, concluded at the end of 2023. The second pertained to a Cayman-based captive for insured risks through 2015, finalized in early 2024.
Both portfolios included workers' compensation, general liability, and auto liability exposures. These transactions were executed by way of novation with the captives and their respective fronting carriers, providing full legal finality for the counterparties.
Additionally, in April 2024, DARAG entered into a sale and purchase agreement to acquire a re/insurance captive based in the Cayman Islands. This acquisition was part of DARAG's strategy 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.
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