Finality
solutions & services

Need for
legacy solutions

We see ourselves as a service provider: simplifying your operations, enabling your strategy and freeing up capital for your core business. Whether it’s operational efficiency, capital relief or portfolio management solutions that your company needs, DARAG will have a range of solutions on offer. With decades of experience in developing and designing a regulatory and legal framework for legacy transactions, we are able to design effective packages across all territories and jurisdictions.

Companies under pressure

Companies have been under pressure to improve their capital management measures and operational efficiency continues to be a key priority for carriers across a range of territories. The strain on capital has prompted several strategic reviews of portfolios, particularly in cases where discontinued or non-core business incurs disproportionate expenses to retain on the balance sheet.

Operational
spring cleaning

In what could be described as a careful “operational spring cleaning”, companies begin to consider the disposal of portfolios whose maintenance is difficult to justify. Sometimes, these have been core lines in the past, perhaps even the basis of a company’s previous growth. But, as time has gone by, the resources spent on maintaining a book of business start to outweigh the benefits, becoming a liability rather than an asset.

Niche lines sometimes require large networks of third party providers, a significant cost and operational investment when a manual process is in place. These historic products require a small but dedicated workforce and begin to distract businesses from their core lines, where there is a greater potential for a return to their shareholders.

A global legacy specialist

Legacy transfer is a mature and recognised solution to support companies and reallocate resources. The risk of additional programme costs and delays is also eliminated through a legacy deal and resources can be focused on profitable activity and growth.

As a global legacy specialist, DARAG offers innovative capital release solutions through our network of group companies in Bermuda, the United States, the United Kingdom and Continental Europe

Service Offerings

DARAG offers finality solutions for all types of non-life portfolios, each with a range of different benefits depending on need.

Portfolio transfer: involves DARAG taking over all policies as well as outstanding and expected claims. DARAG receives all technical insurance provisions, including incurred-but-not-reported (IBNR) reserves and any assets set aside to cover those liabilities and takes over all the expense of administering the business. A legal framework exists to facilitate this type of transaction, which guarantees legal and economic finality but requires approval by the appropriate regulator. A typical portfolio transfer can take as little as one or two months until a transaction is signed.

Five Reasons for choosing DARAG

Strategic hires and well planned organic growth

As a market leader in the legacy sector, DARAG has armed itself with significant and strategic management experience to ensure future successful growth opportunities. DARAG’s unique market approach and C-suite industry network provides access to influential decision makers and key executives. DARAG’s management team is supported by senior local market executives and associates who act as introducers to exclusive opportunities.

Effective due diligence process

At DARAG, careful and efficient analyses of risk exposures, claims practices and reserve requirements are part of our standard and detailed due diligence process. We believe this can effectively decrease risks and ensure that we can deliver positive operating results from the companies and portfolios acquired.

Close and established relationships to regulators

The appropriate correspondence with involved regulatory bodies is one of the highest priorities in an acquisition process to assure a high level of compliance and to ensure a smooth and fast approval process after signing.

DARAG has established solid relationship with 21 regulators in the United States, Bermuda, United Kingdom and Continental Europe. All regulators are fully aware and receptive to DARAG’s business. The relationships are based on approved transactions.

Operational excellence at investment & capital management

Our operational structure allows us to be more capital-efficient and to maintain a strong balance sheet. Through a conservative investment strategy and limited live exposure, we are insulated from high-risk investments or underwriting losses. In terms of appetite, we have a rigorous due diligence process that screens potential portfolios for unacceptable volatility and difficult to accurately price exposures.

Selective in business partners

DARAG is in a constant lookout for highly skilled claims management in all jurisdictions to ensure all policyholders are treated appropriately.

We consider claims management to be a core competency. Following the acquisition of a company or portfolio of business in run-off, we strive to conduct the run-off in a professional manner to efficiently discharge the liabilities associated with the business while preserving and maximizing its assets.