Legacy Acquirer DARAG and Pro Complete Operational Transfer.

Pro to manage former Zurich architects' and engineers' PI book, one of the largest P&C-run off transactions in Germany, reserved at approx EUR 200 million

London, 3rd July, 2020: Global re/insurance outsourcing and consulting specialist Pro Global Holdings Limited (‘Pro’) is pleased to announce that its German office has successfully completed the operational transfer of Zurich Insurance plc (‘Zurich’)’s former German professional Architects’ and Engineers’ (A&E) professional indemnity insurance (PI) portfolio.

This previously announced transaction, structured initially as an LPT or retrospective reinsurance, has now received court approval from the Irish High Court, and regulatory approval from the CBI in Ireland and BaFin in Germany.

Legacy acquirer DARAG Group Limited (‘DARAG’) appointed Pro as claims administrator to manage the former Zurich A&E PI book, which it reached an agreement to acquire from Zurich in 2019.

This is the second time that Pro has been selected as claims administrator on a significant German legacy portfolio, following the 2017 transfer of Zurich’s former legacy medical malpractice book.

With almost EUR400 million allocated for reserves, the medical malpractice book was bought by legacy acquirer Catalina Insurance Ireland DAC, which appointed Pro to manage the orderly run-off.

The German A&E PI is reserved at approx EUR 200 million and its transfer represents one of the largest P&C run-off transactions in Germany. Completed on 1 April, 2020, the operational transfer paves the way for Pro to support DARAG with an orderly run-off of the portfolio and achieve pro-active settlement of claims.

Pro’s innovative Pelican technology for automating and consolidating manual processes was instrumental in ensuring a smooth transition, together with the dedicated team of highly specialist liability claims experts focused on seeking settlements.

Pro Head of Germany Robert Buchberger said:

“This is the second significant German legacy portfolio bid we have successfully won as claims administrator, and our use of technology to automate and consolidate manual claims processes together with a highly focused team of experts is the key to our success.

Using technology this way increases the valuable time our experienced claims handlers can spend supporting policyholders and improving the claimant experience, whilst reducing operational costs.

I’m particularly proud that we have completed the operational transfer during these challenging times. After a competitive bid to become the trusted claims administrator for this portfolio, we faced the prospect of assembling and training a team of 12 dedicated professionals at a time of ongoing upheaval and crisis.

All this stands us in good stead to further serve the German re/insurance claims market in the coming years both in run-off and live-portfolios.”

Pro Project Manager Preeti Bansil added:

“I’m proud to be involved in this significant project, which is a testament to collaborative cross-border success. The operational transfer strategy saw a focused collaboration of legal entities –  Zurich, DARAG and Pro – working together in a stretched environment, and still achieving the timelines promised with the best and most efficient solutions.

The transfer itself saw the integration of at least three major IT systems into Pelican, together with thousands of physical files and a vast volume of claims data, moving to a fully paperless claims handling.

The result is an improved operating model, reduced reliance upon ancillary systems to manage and settle claims – and faster claims settlements as well.”

DARAG COO Andrew Hill said:

“Having identified Pro as our preferred partner to handle the claims administration for the German A&E PI portfolio during the transaction process, it was crucial to DARAG that the operational migration was subsequently delivered in a timely and efficient manner.

The fact this has been achieved despite notable disruption to the working environment in recent months is testament to the resilience of the parties’ operating models and to the dedication and collaboration shown by team members from DARAG, Pro and Zurich.

We look forward to partnering with Pro on future opportunities as DARAG continues its growth as a global legacy carrier.”

Ends

 

Notes for Editors – About Pro:

Pro is a leading international consultancy and service provider that focuses on delivering flexible outsourcing solutions for live and run-off business, operational consultancy and audit services exclusively to the global insurance industry.

Founded in 1993, Pro has some 160 clients spanning the global insurance market, including insurers, reinsurers, brokers, lawyers and corporate investors.

The company has over 500 employees around the world, with recent geographic expansion in Germany and North America. Pro has offices in London, Cologne, Zurich, New York and Buenos Aires, all supported by regional delivery centres, enabling Pro to act for clients across multiple markets, cultures and territories.

For more information, please visit: www.pro-global.com.

 

PR Contacts

Helen Wright

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Roddy Langley

Lysander PR Limited

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