030510_PM DARAG takes over HVAG_final

PRESS RELEASE
DARAG Deutsche Versicherungs- und Rückversicherungs-AG
Run-off insurer DARAG acquires majority shareholding in HVAG
DARAG Deutsche Versicherungs- und Rückversicherungs-AG, Berlin, acquires the majority
shareholding in Hamburger Versicherungs-Aktiengesellschaft HVAG.
Berlin, 3/5/2010. The Hamburg-based insurance company, HVAG, was active on the German market
from 1999 to 2008 as a broker insurer in the industry and transport insurance business. At the end of
2008, the company ceased underwriting new business and has since been entirely in run-off. As at
31.12.2009, HVAG’s claims reserves amounted to € 5.4 million.
The acquisition of 70% of the shares will make DARAG the majority shareholder of HVAG. The Berlinbased
specialised insurer is acquiring 55% of the share contingent from the principal shareholder
Mitsuibussan Insurance Co. Ltd, a subsidiary of the Japanese Mitsui & Co. Just below 15% of the
shares were purchased from minority shareholders. The transaction price was not disclosed.
With the sale of its shares, Mitsuibussan is terminating its insurance activities on the German market.
A pull-out of this nature would normally only be possible as a consequence of a solvent liquidation
lasting several years. With DARAG as shareholder HVAG is leveraging the strengths and experiences
of a local and financially sound partner, guaranteeing the professional and efficient handling of the
run-off in bests interest of the policyholders.
“In DARAG, we are pleased to have found a professional partner on the German market to handle the
run-off of HVAG, with the experience to drive the winding-up process forward. Mitsuibussan’s decision
to transact the deal with DARAG was primarily based on the company’s financial soundness as well as
its competence and experience in claims management,” explains Taku Matsumoto, President of
Mitsuibussan Insurance Company Ltd, Tokyo.
DARAG, the pioneer in Germany for the acquisition of discontinued business (run-off), specialises in
taking over run-off business on the basis of portfolio transfers.
“As well as portfolio transfers, the acquisition of HVAG in the run-off phase is a text-book transaction
for DARAG. The challenges associated with run-off are our bread-and-butter business and we will
offer HVAG the best possible support during the winding-up phase. Our first priority in this process is
the interests of the policyholders,” says Arndt Gossmann, DARAG Executive Board member
responsible for transaction management.
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DARAG Deutsche Versicherungs- und Rückversicherungs-AG, Berlin
DARAG Deutsche Versicherungs- und Rückversicherungs-AG is the first and only active German
insurance company fully specialised in taking over inactive or discontinued business, so-called “Runoff”,
of direct insurers and reinsurers into its own balance sheet. DARAGs goal is to offer insurers
reliable and rapid relief from associated risk and at the same time guarantee policyholders
professional and non-bureaucratic settlement of claims. As former insurer of the GDR in transport and
external up to German Reunification, DARAG can look back on more than 50 years’ active experience
and expertise in active direct insurance and reinsurance business.
Independent experts believe run-off business has considerable market potential, also under
Solvency II.
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Company contact
DARAG Deutsche Versicherungs- und Rückversicherungs-AG
Gustav-Adolf-Straße 130, 13086 Berlin, Germany
Arndt Gossmann, Member of the Executive Board
Telephone: +49 (0)30 47708-143
Fax: +49 (0)30 47708-100
E-mail: a.gossmann@darag.de
www.darag.de
Press contact
Jennifer Sachtjé
Telephone: +49 (0)30 47708-170
Fax: +49 (0)322 21640760
E-mail: presse@darag.de
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