Italian insurer Unipol secures a second service contract with DARAG
DARAG Group Strengthens Presence in European Run-Off Market with Unipol Assicurazioni Deal
DARAG Group, a leading player in the acquisition and management of legacy insurance portfolios, has signed a significant service contract with Unipol Assicurazioni S.p.A. (Unipol), a prominent Italian insurer. This deal marks the fifth major agreement executed by DARAG in 2025, making it a record-breaking year for the company.
Under the terms of the contract, DARAG Deutschland AG (DAG) will partner with Davies Group to manage and service all claims related to the run-off of Unipol's UK motor portfolio. This partnership is expected to add to DARAG's offerings of unique local claims expertise to strategic clients, generating valuable fee-based revenue.
The agreement between DARAG and Unipol aims to deliver an optimum solution for the management of Unipol's UK motor business run-off. This deal represents a natural development in the expansion of DARAG's services and business model, as the company continues to focus on specializing in run-off and legacy insurance business.
Unipol Assicurazioni is the parent company of the Unipol Group, one of the leading insurance groups in Europe and the leader in Italy in the non-life insurance business. The deal with DARAG is a testament to the growing acceptance of run-off structures in Europe, as DARAG expands beyond Germany into other major continental markets.
Tom Booth, CEO of DARAG, expressed delight over Unipol's trust in DARAG for managing their runoff business and TPA relationships. He stated, "We are thrilled to partner with Unipol to provide our expertise in managing their UK motor business run-off. This partnership underscores our commitment to delivering optimal solutions for our clients and further strengthens our position in the European run-off market."
The Unipol deal follows another recent acquisition by DARAG Group, this time from wefox Insurance AG. This expansion strategy, focused on acquiring and managing legacy insurance portfolios, particularly in the Property and Casualty (P&C) run-off market, is intended to strengthen DARAG's footprint across Europe.
Unipol Gruppo S.p.A. reported a preliminary consolidated net result of EUR 866 million in 2022, around 9% higher than in 2021. This deal is expected to contribute positively to both companies' financial performance, further solidifying DARAG's reputation as a reliable partner in the run-off market.
In summary, DARAG Group's strategic expansion strategy is bearing fruit, as demonstrated by the Unipol contract. The company is strengthening its presence in the European run-off market by acquiring legacy insurance portfolios and entering service contracts that enhance their ability to manage run-off businesses. This approach, which includes specializing in run-off and legacy insurance business, geographic expansion in Europe, use of loss portfolio transfers and portfolio transfers, and growth via both acquisitions and service contracts, is expected to continue driving DARAG's success in the coming years.
- The Unipol deal, along with the recent acquisition from wefox Insurance AG, indicates a growth in DARAG Group's financial earnings, as they continue to expand their business in the European run-off market.
- The strategic partnership between DARAG and Unipol is expected to generate valuable fee-based revenue for DARAG, thereby boosting their financial business performance.
