Arndt Gossmann, DARAG Making a dash for run-off


You recently closed more deals—what is the deal pipeline looking like now? We have closed four transactions year to date, including transactions in Germany, Switzerland                   two transactions will follow before the end of   


I understand alternative investors have also shown an interest in bespoke deals. What is the latest on this? Can the idea work?                our fundraising, we came across alternative investors, which showed an interest in a long- term, non-correlated insurance risk without necessarily taking direct stakes into companies  risk transfer (ART) and insurance-linked  One should never say never, but DARAG is


     strong commitment to our business model that        So I do not see an ultimate need for alternative  


How is run-off uptake increasing in Europe? Which areas of Europe are seeing growth? The run-off-market is growing all over Europe and we see an increasing activity in every            Within Continental Europe, Switzerland stands                      off as a strategic management instrument in Germany, France and southern European 


4


Interview:


MONDAY 21.10.13


There’s a growing interest in run-off as a strategic management tool in Europe, 


“There must be evident advantages for an insurer to consider this step, such as cost savings, capital release and reduction of complexity.”


Arndt Gossmann


What is DARAG’s strategic plan over the next 12 months?   to take advantage of the potential Europe’s run-off market is offering for both the ceding  


How much potential does the run-off market have to grow? According to the PwC survey of September               market potential because not all portfolios of discontinued liabilities are intended to be       highest value if the portfolio contains medium  There must be evident advantages for an


insurer to consider this step, such as cost savings,        so that a portfolio transfer creates a win-win situation for the ceding insurer and the run-    of the overall discontinued business represents        


| BADEN-BADEN TODAY | DAY 1: Monday October 21 2013


How can DARAG help businesses that are looking to reduce capital requirements before Solvency II? Most big European insurance groups already have internal equity models closely linked with standards of Solvency II in    releases this capital, optimises the ceding insurer’s balance sheet and opens up growth opportunities and competitive advantage   DARAG aims to support companies by consulting, analysing and acquiring their       technical and operational finality, so they 


Could the growth of alternative capital also increase run-off?           industry, leading to a higher pressure on prices  to compete in this environment and might go         Therefore, with run-off transfers or company       


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