15 May 2018Analysis

DARAG and New Nordic Malta cell makes first transaction

European legacy acquirer DARAG and investment management company New Nordic have made their first joint transaction since partnering, acquiring two portfolios of Qudos Insurance via their joint cell structure in Malta.

Qudos is a Danish regulated insurer that was established seven years ago and underwrote a range of niche business across Europe. The two portfolios were underwritten through two MGAs, providing cover for vans and commercial fleets, and cover for commercial taxis and chauffeurs, respectively.

New Nordic acquired Qudos in March 2017 and Qudos now focusses primarily on Scandinavian business.

“The team at New Nordic Advisors is delighted to have negotiated, on behalf of Qudos Insurance, the first in a series of portfolio transfer agreements with DARAG, signifying the deepening of the strategic relationship between our firms," said Nicolai Borcher Hansen, CEO of New Nordic. "This transaction catalyses the restructure of Qudos Insurance, into a lean Scandinavian-focused insurance company”.

The transaction is subject to the approval of the Danish and Maltese regulators.

It is the first in what is expected to be a series of joint cell transactions, leveraging New Nordic's expertise in Solvency II investment strategies and DARAG's expertise in legacy liability management. The two entities will be working closely in a number of project areas, including the provision of legacy and capital relief solutions, active business and restructuring solutions.

DARAG's protected cell company formed the joint consolidation platform in Malta earlier in the year, with DARAG and New Nordic jointly owning a new cell to manage legacy liabilities.

Stuart Davies, executive chairman of DARAG, said: “As DARAG has continued to grow, we have remained true to our client focused approach of delivering bespoke solutions that enable them to concentrate on their core business. The conclusion of our first transaction, demonstrates the strength of the strategic partnership we have forged with New Nordic and the new capabilities we are bringing to the disposal of our clients. I am looking forward to working closely with New Nordic as we continue to build out our specialist joint offering.”

Alex Roth, head of M&A at DARAG added: “The DARAG team is delighted that the first transaction of our partnership is concluded. Our joint cell in Malta is the perfect home for these types of portfolios giving unrivalled access to our clients, via our partnership with New Nordic, to meaningful capital solutions.”

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