DARAG Group Ltd. signed a portfolio transfer agreement with German insurer Schwarzmeer und Ostsee Versicherungsaktiengesellschaft, or SOVAG.

The legacy book consists of direct insurance and inwards reinsurance business. The insurance business includes a number of specialty lines such as liability, property, transport and motor, with clientele based in Germany, Spain, Malta, Belgium, the Netherlands and Austria.

The inwards reinsurance portfolio includes European and international business, underwritten by SOVAG's U.K. branch, and German risks underwritten by its Hamburg office.

The legacy portfolio will be transferred to DARAG's German risk carrier, DARAG Deutsche Versicherungs-und Rückversicherungs-AG, subject to regulatory approval from Bafin, the German financial regulator. DARAG will provide complete finality as requested by SOVAG's shareholders following its restructuring, according to a statement.