Darag to take over HVA
May 04, 2010
BERLIN-based Deutsche Versicherungs- und Rückversicherungs-AG (Darag) is to take over Hamburger Versicherungs-AG (HVAG), which has been in run-off since the end of 2008. Darag will acquire a 55% stake from Japan-based Mitsui Bussan, part of the Mitsui & Co group, which will cease all insurance business in Germany. Other shareholders gave up a further 15%. According to market sources Darag got money for taking over the run-off, rather than paying a price. HVAG was mainly engaged in transport insurance and recently had an annual premium income of E10m. It ceased doing new business in 2008. Darag – once the government owned marine insurer and reinsurer in the former German Democratic Republic – will take over claims reserves of E5m and will be in charge of the run-off, which may drag on over many years. Run-off business is expected to grow strongly...