DARAG strikes legacy portfolio transfer deal with German re/insurer SOVAG
European legacy acquirer DARAG Group has signed a new portfolio transfer pact with Germany-based re/insurer major SCHWARZMEER UND OSTSEE Versicherungsaktiengesellschaft (SOVAG).
The legacy portfolio comprising direct insurance and inwards reinsurance business will be transferred to DARAG’s German risk carrier, DARAG Deutsche Versicherungs- und Ruckversicherungs.
The insurance business comprises various specialty lines including liability, property, transport and motor, with clientele located in Germany, Spain, Malta, Belgium, the Netherlands and Austria.
The inwards reinsurance portfolio includes European and international business, underwritten by SOVAG’s UK branch while German risks underwritten by its Hamburg office.
DARAG Group CEO Tom Booth said: “SOVAG’s diversified book is a great match with DARAG’s other portfolios and this transaction highlights our deep understanding of the German re/insurance market’s legacy needs.
“Germany remains an important market for DARAG, as we press ahead with our long-term expansion strategy across Europe and beyond.”
SOVAG CEO Arndt Gossmann Arndt Gossmann said: “The sale of our run-off portfolio has been a major step in SOVAG’s restructuring and we are satisfied to hand over a legacy portfolio that is in excellent financial shape.
“DARAG’s strength and reliability have been the determining factors for our decision. In DARAG we have an excellent partner to ensure that the portfolio and the outstanding claims are dealt with at the highest level.”
The deal is subject to receipt of regulatory approval from the German Federal Financial Supervisory Authority, BaFin.
DARAG said that the company will provide complete finality for the legacy business, as requested by SOVAG’s shareholders after completion of its restructuring.
Legal & General strikes £4bn real estate partnership with Oxford university
Legal & General has entered a deal with the University of Oxford to provide up to £4bn of funding for student and staff accommodation.
The 10-year partnership will deploy money from the UK insurance company’s shareholder and annuity funds, and from funds managed by its investment arm, Legal & General Investment Management.
The funding, which will be delivered across the next 10 years, will be delivered by Legal & General’s Future Cities division, which has already funded the creation of more than 1,000 new homes in cities including Cardiff, Newcastle and Leeds.
Legal & General said it is working “50-50” on the project alongside the university, and could replicate the joint venture with other educational institutions in the future.
Group chief executive Nigel Wilson said: “Oxford University is one of the best in the world. It has inspired generations of academics and researchers, and today nurtures outstanding modern businesses with world-leading potential.
“Our partnership with Oxford University is leading the way in bringing together dynamic cities and patient capital, creating great outcomes for long-term investors and for the cities themselves.”
Professor Louise Richardson, vice-chancellor of the University of Oxford, said: “My colleagues and I are delighted to have formed this partnership with Legal & General.
“We look forward to working together to address some of the most pressing challenges facing the university today.
“We will build much-needed graduate accommodation, subsidised housing for university staff, and new science parks, where academic departments, university spin-outs and commercial partners can work together to create new companies as well as high-quality jobs.”