Legacy acquisition specialist DARAG Group has agreed to acquire the run-off portfolio of wefox Insurance.
This portfolio includes motor damage and third party liability, private liability, as well as property business across Germany, Italy and Switzerland.
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A LPT will precede the full portfolio transfer of all EEA-domiciled business, pending regulatory approvals.
Wefox Insurance, the Liechtenstein-domiciled insurance carrier of troubled insurtech company wefox Group, has ensured the continuity of claims services for policyholders.
The portfolio transfer is connected to Wefox Insurance’s sale to a consortium of Swiss companies spearheaded by pension services provider BERAG.
Wefox has been streamlining its operations by focusing on its core strengths and trimming non-core assets.
In June 2024, the company announced that wefox Insurance is no longer part of its core operations.
DARAG CEO Tom Booth said: “This transaction is a great way to start 2025, which is our 15th year operating as a run-off consolidator in Europe. It is further evidence of DARAG’s premier position in offering legacy solutions to the European market with our well-capitalised German-based carrier and local claims management expertise.”
Wefox Insurance AG CEO Peter Huber commented: “We are pleased to welcome DARAG as the ideal partner for our portfolio. We now are very confident that we will be able to successfully complete the announced sale of wefox Insurance AG in the first half of 2025. This is a further step towards our future focus on the Swiss short- and long-term absence market.”
DARAG specialises in the assumption of discontinued business, offering capital and operational relief to insurers looking to divest their legacy portfolios.
To date, the group has completed 67 run-off transactions across 21 countries, with a combined value of more €1.7bn ($1.75bn).
Last month, the company completed the sale of North American and Bermuda business entities to the RiverStone Group.
