The High Court has approved DARAG Group's transfer of Soteria Insurance Limited's commercial liability portfolio to its UK carrier, completing an 18-month legacy transaction that began with a loss portfolio transfer in March 2025, and landing as other parts of the legacy market publicly question whether the Part VII mechanism DARAG just used remains cost-effective.

Soteria, formerly known as CIS General Insurance Limited, was the underwriting arm of the Co-operative Group. DARAG first agreed to reinsure the book of UK commercial policies in run-off through its German entity in March 2025, with the Part VII transfer always planned as the final step to achieve full legal finality. The court order, delivered on 17 September, also covers the business of DARAG Legacy UK Ltd, which the group intends to deauthorise and liquidate once the transfer completes on 30 September.

The timing is notable given a live industry debate: a separate legacy transfer completed by Carrick was accompanied by public comments flagging that Part VII's cost relative to the reserves involved is drawing growing scrutiny across the sector, even as the route remains the standard path to full legal finality in UK run-off.

DARAG CEO Tom Booth (pictured) said the transfer demonstrates "a trusted provider of finality solutions to the UK insurance market," and that it would help streamline the Group's structure as DARAG consolidates its UK operations under DARAG Insurance UK Limited (DIUK).

The transfer was supervised by the Prudential Regulation Authority and Financial Conduct Authority, with Lane Clark & Peacock LLP acting as independent expert, standard practice for Part VII schemes.

For brokers, the practical point is client-facing: anyone with commercial liability clients whose policies trace back to Soteria or its predecessor CIS General Insurance should expect those policies to move to DARAG Insurance UK from 30 September, and should be prepared to explain what a Part VII transfer means for ongoing claims and policy servicing, since the legal counterparty is changing even though the underlying cover terms are not.