OREANDA-NEWS. February 16, 2012. DARAG Deutsche Versicherungs- und Ruckversicherungs-AG (Germany) acquires IngoNord Insurance Company Ltd., Finland, the affiliate of Ingosstrakh Insurance Company (Russia).

DARAG Deutsche Versicherungs- und Ruckversicherungs-AG (www.darag.de) – is the first German insurance company specialized in acquisition of companies in so-called Run-off phase, i. e. those companies which are not assuming new liabilities (not issuing new insurance policies) anymore and waiting for the expiration of responsibility under previously issued policies.

This acquisition marks DARAG?s fourth transaction in the last 12 months, however it is DARAG?s first transaction in Scandinavia. IngoNord, which sole shareholder is the Russian Ingosstrakh Insurance Company, went into Run-off in 2010. Its book includes fire and property insurance, marine, aviation and other transport insurance, travel insurance and active reinsurance.

After the closing of the transaction, DARAG intends to transfer the portfolio of IngoNord to its own balance sheet. The handling of insured events under insurance policies issued by IngoNord will be continued by its employees.

Geographically, IngoNord was focused on Northern Europe. As of December 2010, the company had a balance sheet total of 10.5 million euro.

Tatiana Kaygorodova, Deputy General Director of Ingosstrakh Insurance Company, said:

“The decision to sell our business in Finland was made by our Company within the framework of targeted measures for strengthening of positions in strategically important regions, among which we at the present consider neighbouring countries, first of all. In DARAG we have found a strong partner in Continental Europe who meets our expectations with regard to safeguarding reputations. DARAG as landmark provider of Run-off solutions is ensuring a fair portfolio Run-off.”

Arndt Gossmann, DARAG CEO, explained:

“We assume full risk for IngoNord being fully aware that the reputation is the most important factor for the insurer. For Run-off consumers it’s essential to gain and keep confidence that specialized insurers, such as DARAG, take full responsibility and handle transferred business fair and reliable.”

The transfer still has to be approved by the Finnish and German supervisory authority. The parties have agreed not to disclose the terms of the transaction.