DARAG makes acquisition in Guernsey to conduct non-EEA business
DARAG Guernsey has acquired Guernsey-based captive re/insurer Thames Water Insurance Company (TWIC) from Kemble Water Finance.
TWIC is the captive re/insurer for Thames Water and subsidiary companies. It was placed into run-off in 2005, providing coverage for burst pipes, public liability, employers’ liability, personal accident, property damage and business interruption and professional indemnity.
The captive will be renamed DARAG Insurance (Guernsey) and will serve as a consolidator for certain future DARAG non EEA legacy deals, including captive acquisitions and other legacy reinsurance contracts.
The share purchase agreement was signed and completed on October 16. Willis Towers Watson will continue to act as captive manager.
Tom Booth, CEO of DARAG, pointed to DARAG and SOBC DARAG’s expanding international platform, including DARAG Group in Malta, and SOBC DARAG in Bermuda and the US. “DARAG Insurance (Guernsey) will provide a further option for the acquisition of legacy captive and LPT business outside of the EEA.”
Booth added: ”This transaction provides Kemble Water with legal and economic finality for its liabilities assumed through the Thames Water captive.”
DARAG has a strong pipeline of deals for the next few months and will continue to look to grow its imprint in the sector, Booth said.