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DARAG acquires run-off portfolio from wefox Insurance

DARAG acquires run-off portfolio from wefox Insurance

DARAG Group, a prominent legacy acquirer, has agreed to purchase a run-off portfolio from wefox Insurance AG. The portfolio includes motor damage, third-party liability, private liability, and property insurance across Germany, Italy, and Switzerland.

The acquisition follows the sale of wefox Insurance AG to a group of Swiss firms led by BERAG. This move aligns with wefox Group’s strategy to divest its insurance carrier, announced in June 2024.

wefox Insurance AG, established in 2018 and based in Vaduz, Liechtenstein, operates as the insurance arm of the wefox Group, a European insurtech company founded in 2015. The company offers a range of insurance products, including motor damage, third-party liability, private liability, and property insurance, serving customers across Germany, Italy, and Switzerland.

In June 2024, wefox Group announced plans to divest wefox Insurance AG as part of a strategic shift to concentrate on its core business areas. Subsequently, in December 2024, an agreement was reached to sell wefox Insurance AG to a consortium of Swiss companies led by BERAG, an independent Swiss pension services provider. This transaction is pending approval from the Liechtenstein Financial Market Authority and is expected to conclude in the first half of 2025.

Tom Booth, CEO of DARAG, stated, “This marks a strong start to 2025, our 15th year as a run-off consolidator in Europe. It underscores DARAG’s leadership in offering legacy solutions, supported by our well-capitalized German carrier and local claims expertise. Our record of delivering legal finality remains unmatched in Europe.”

We welcome DARAG as the ideal partner for this portfolio. We are confident in completing the sale of wefox Insurance AG by mid-2025

Peter Huber, Chief Insurance Officer of wefox Insurance AG

Peter Huber also highlighted that this move supports wefox’s focus on the Swiss short- and long-term absence markets.

As part of this transition, DARAG Group, a legacy acquirer, has agreed to acquire a run-off portfolio from wefox Insurance AG. The transaction involves an initial loss portfolio transfer, followed by the full transfer of all European Economic Area (EEA)-domiciled business, subject to regulatory approval.

These developments reflect wefox Group’s strategic realignment and the ongoing consolidation within the European insurance market.