Legacy specialist Darag has completed its first transaction as part of its recent partnership with investment firm New Nordic in a deal which will see the carrier take on two legacy portfolios of Scandinavian insurer Qudos Insurance.
The financial terms of the transaction, as well as the specific portfolios acquired, were not disclosed and the deal remains subject to approval by the Danish and Maltese regulators.
Qudos was acquired by New Nordic last year after it suffered a second consecutive year of heavy losses totalling DKK90mn ($14.5mn) due to “due to significant under-reserving at year-end 2016 and contractual commitments in relation to cancelled agent business”, according to the Danish carrier’s 2017 financial report.
Darag chairman Stuart Davis commented: “As Darag has continued to grow, we have remained true to our client focused approach of delivering bespoke solutions that enable them to concentrate on their core business.”
“The conclusion of our first transaction, demonstrates the strength of the strategic partnership we have forged with New Nordic and the new capabilities we are bringing to the disposal of our clients.’
Darag agreed to partner up with the insurance company and managing agent owner in March in a deal which allows the run-off buyer to take on run-off books which also contain live business.
The move was another signal of Darag’s intent to bolster its already-strong presence in the legacy market following this publication’s revelation in February that the firm is raising EUR100mn to boost its deal making capabilities.