DARAG Group, a specialist in legacy acquisition, has agreed to acquire the run-off portfolio of Wefox Insurance, which includes motor damage and third-party liability, private liability, and property business in Germany, Italy, and Switzerland.
The portfolio transfer will be preceded by a loss portfolio transfer (LPT), pending regulatory approvals. Wefox Insurance has ensured the continuity of claims services for policyholders. The portfolio transfer is connected to Wefox Insurance’s sale to a consortium of Swiss companies led by pension services provider BERAG.
Wefox has been streamlining its operations by focusing on its core strengths and divesting non-core assets. The deal marks a significant milestone for DARAG, which has completed 67 run-off transactions across 21 countries, with a combined value of €1.7 billion ($1.75 billion).
In June 2024, Wefox announced that insurance ceased to be part of its core operations. DARAG’s CEO, Tom Booth, believes that the transaction is a great way to start 2025, highlighting the company’s position as a premier legacy solution provider in Europe.
Wefox’s CEO, Peter Huber, expressed delight in welcoming DARAG as the ideal partner, saying that the company is now confident in completing the sale of wefox Insurance AG in the first half of 2025, marking a step towards the company’s focus on the Swiss short- and long-term absence market.