China Taiping Insurance (UK) Co Ltd (CTI) has agreed to a loss portfolio transfer deal with DARAG Deutschland AG’s German insurer for a “clean exit” from European insurance operations.
In a statement, the inherited acquirer noted: “CTI has been underwriting in the UK and Europe since 1985, but due to changing regulatory requirements after Brexit, it has switched to the legacy market to move its business book into the European Union (EU).
“The transaction includes CTI’s underwritten businesses in the Republic of Ireland, the Netherlands, Belgium and Denmark and will provide a clean exit for CTI.”
CTI is a wholly owned subsidiary of China Taiping Insurance Group, which is headquartered in Hong Kong.
“Partnering with DARAG to transform the loss portfolio provides an efficient and compliant solution for CTI, and is an important first step towards the Part VII transition,” said CTI CEO Sheldon Yu.
Meanwhile, DARAG Group President Tom Booth said: “We are pleased to partner with CTI through this transaction, which forms part of our overall strategy to deliver customized local solutions, backed by regional expertise.
“CTI’s confidence in DARAG to support its clients for the rest of their policies demonstrates the strength of our reputation for delivering successful client outcomes.”
In addition, Alexander Roth, CEO of DARAG Europe, referred to the “ultimate economic and operational situation” offered to partners such as the China Taiping subsidiary.
The financial terms of the deal were not disclosed.