Insr announces Loss Portfolio Agreement with DARAG Germany
Release Date: 14th of August 2021
Insr Insurance ASA (“Insr”), today announces, that following a competitive process, the company has signed a Loss Portfolio Transfer (“LPT”) followed by a Portfolio Transfer (“PTA”) with DARAG Deutschland AG (“DARAG”), the German carrier of the DARAG Group, a leading legacy acquirer.
All of Insr’s remaining insurance business will form part of this proposed transaction. The portfolio consists mainly of motor, property, casualty and workers’ compensation liabilities from both Norwegian and Danish jurisdictions. The deal will see DARAG provide legal finality of all Insr’s insurance liabilities before the end of the 2021, but economic relief as of LPT signing.
Niclas Ward, CEO of Insr, commented “From Insr´s point of view, we are pleased to have reached this agreement with DARAG. This secures an orderly exit from the insurance business for Insr, and we are very satisfied to have DARAG as a counterparty, that has a proven track record in the legacy business. We will now focus on a smooth transition of the business to DARAG. In addition, we will review if there is any opportunity for the remains of Insr to continue in one form or another.”
Alexander Roth, Chief Executive Officer of DARAG Europe, said: “This agreement demonstrates clearly again that DARAG is trusted worldwide to provide high quality, reliable legacy solutions for a wide spectrum of clients. We are particularly pleased to have once again achieved a successful outcome for a client in the Nordics region where we continue to expand our footprint.”
The agreements with DARAG do not change the financial expectations for Insr in any material way compared to information given earlier. Thus, the expected end game is a small positive net equity, however still with a noticeable insecurity based on that small deviations have a significant impact on the outcome.
The PTA is subject to approval by the Norwegian FSA, Finanstilsynet (“NFSA”) and Bundesanstalt für Finanzdienstleistungsaufsicht(“BaFin”) while the LPT comes into immediate effect.
Information about the agreement with DARAG will also be given in the Insr Q2 presentation on the 17th of August
About DARAG:
DARAG is a leading international insurance and reinsurance group specialising in the assumption of discontinued business and the provision of capital relief solutions. The Group has completed 49 run-off transactions in 21 countries with a value in excess of €1.7bn.
For more information, please visit: www.darag-group.com
About Insr:
Insr Insurance Group ASA was established in 2009 and is an independent insurance group listed on the Oslo Stock Exchange, with headquarters in Oslo. The company’s main task and focus going forward are to wind down the insurance business.
Media contact Insr
Hans Petter Madsen, CFO
T: +47 901 57 505
E: investorrelations@insr.io