DARAG has completed a recapitalization with Keyhaven Capital
DARAG Deutsche Versicherungs- und Rueckversicherungs-AG, a Continental European run-off insurer, has announced today that it has raised Euro 60 million of new capital from Keyhaven Capital Partners in London. The increase brings DARAG’s capital base to a total of Euro 83 million. Existing investor Augur Financial Opportunity SICAV, will maintain its majority stake in DARAG. Of the total Euro 60 million raised, an amount of Euro 24 million has already been transferred to DARAG. Further tranches will be called as necessary to finance new acquisitions. DARAG conducted a fund-raising to address an expected increase in deal flow in the coming months.
The company, founded in 1949 in Berlin as a re-insurer by the Soviet Union, was privatised after German reunification in 1990. Since 2009 the business model has focused on run-off (re)insurance, after Augur took over DARAG from AIG (WueBa). Today, DARAG is a pioneer in non-life run-off insurance in Continental Europe and is the first insurance company in the region to focus exclusively on acquiring and managing discontinued lines of business from other insurance companies.
About DARAG Deutsche Versicherungs- und Rueckversicherungs-AG
DARAG Deutsche Versicherungs- und Rueckversicherungs-AG is the first German direct and reinsurance company specialised in run-off. DARAG takes over inactive or discontinued business from direct insurers and reinsurers. Consequently, DARAG conclusively relieves these companies from old risks and guarantees professional settlement of claims. Independent experts estimate the market potential of run-off business to be considerable. In German-speaking countries alone, the run-off volume amounts to over Euro 115 billion. The preparation of Solvency II is likely to stimulate a further emergence of run-off volumes.
About Keyhaven Capital Partners Ltd.
Keyhaven Capital is an independent, London-based private equity firm founded in 2003. Keyhaven invests in Europe through primary partnerships, secondary and direct investments. Since inception, the firm has made 46 investments, and is responsible for amounts in excess of Euro 1.5 billion on behalf of its investors, which comprise leading pension funds, endowments, foundations and family offices from around the world.
About Augur Financial Opportunity SICAV
Augur Financial Opportunity SICAV is advised by Augur Capital Advisors S.A. in Luxemburg and its subsidiary, Augur Capital AG in Frankfurt. Augur Financial Opportunity SICAV is specialised on the management of investments in the banking, insurance and asset management sector.
Meet our Senior Team with Business Services Expertise
I am enthusiastic about creating sustainable growth and the highest value for our clients and strive to leave a positive footprint beyond any successful M&A transaction.
Friedrich Bieselt
Managing Director & Head of Business Services, Europe
Frankfurt
The transactions we work on are often trajectory-altering, with high stakes and pressure to get it right. We know our work, however challenging in the moment, is going to be impactful.
Mike Iannelli
Managing Director & Co-head of Business Services
Chicago
View More Transactions
Any information or testimonials contained in this post may not be representative of the experience of other clients and is no guarantee of future performance or success.