Darag signed three deals worth a total volume of €299m in 2015, almost quadrupling the legacy group’s liabilities under management.
At group level, liabilities under management at the run-off specialist grew by 388% from €77m to €376m which Darag mainly puts down to Solvency II coming into effect.
Two transactions were structured as share deals with Darag acquiring the entire company, while one transaction entailed a portfolio transfer.
Counterparties of last year´s deals were based in the UK, Germany and Greece, but further terms of the transactions are undisclosed.
One deal has already been approved, while the rest are subject to regulatory approval, Darag said.
Since specialising in run-off acquisitions in 2009, Darag said it has made 22 such transactions in twelve European countries.
“2015 was a very strong year for run-off specialists. With the European Solvency II regulation coming into effect on January 1st, run-off has developed from a niche topic to a versatile strategic tool for capital management, widely used across Europe,” said Arndt Gossmann, CEO of Darag (pictured).
Accordingly, the overall interest of non-life insurers in ceding risks and releasing capital has been remarkable across the European market,” he said.
In 2015, Darag also restructured its business and expanded its operations, the German firm said.
It established a group structure based in Malta and launched a second risk carrier managing R-pad (Run-off pad), described as a customisable transaction and investment vehicle.
R-pad allows Darag to efficiently structure large and complex portfolios and enables run-off investors to participate directly in run-off opportunities.
The run-off firm also hired eight senior industry experts last year, it added.