Darag Group, the international legacy specialist with an office in Bermuda, has announced that its German insurance carrier, Darag Deutschland AG, has received court approval to complete a Part VII transfer with China Taiping Insurance (UK) Co Ltd, a subsidiary of China Taiping Insurance Group.

In December 2021, Darag announced that it had signed an agreement for a loss portfolio transfer with CTI ahead of approval for the Part VII transfer.

CTI had been underwriting in Britain and Europe since 1985, but due to changing regulatory requirements after Brexit, turned to the legacy market to transfer its EU book of business.

Tom Booth, CEO of Darag, said: “We have worked closely with CTI over the past few years to ensure that the process of transferring their EU business has been as smooth as possible.

“As this is our first Part VII transfer, we are delighted to announce its completion and look forward to helping future clients navigate this process.”

Alexander Roth, global head of M&A and CEO of Darag Europe, added: “Completion of this transaction demonstrates the flexibility of legacy solutions. With this transaction, Darag provided a post-Brexit solution to CTI providing continuity of service while maintaining operational efficiency.

“Part VII transfers are flexible tools that help facilitate this by enabling insurers to respond to regulatory requirements and achieve finality on their non-core books of business. We are pleased to have been chosen by CTI to partner with them on this transaction.”