DARAG, an international insurance and reinsurance company, and SOBC, a US-based run-off specialist, have announced the formation of a joint venture, SOBC DARAG, to support DARAG’s expansion into the US and Bermuda/Caribbean run-off markets.
The joint venture also announced its first acquisition, Peachtree Casualty Insurance Company, a Florida-based nonstandard auto insurer in run-off. The acquisition is subject to regulatory approval and is expected to close in the third quarter.
Both the joint venture and the acquisition are part of DARAG’s planned expansion into the US and Bermuda/Caribbean markets, and follow the appointment of Tom Booth as CEO and the completion of a €260 million capital raise.
“Following our recent announcement of an additional equity commitment of €260 million ($300 million), DARAG is targeting the US and Bermuda/Caribbean markets through the SOBC DARAG (joint venture),” Booth said. “The agreement by SOBC DARAG to acquire a US carrier in run-off and the announcement of our joint venture with SOBC are exciting steps in our continued growth. We are pleased to be partnering with SOBC and see Peachtree as the first of many opportunities to work together in the US and Bermuda/Caribbean.”
“We are extremely pleased to form this joint venture with DARAG,” said Stephanie Mocatta, CEO of SOBC. “We have already worked together on the acquisition of Peachtree Casualty Insurance Company, and are delighted to announce that we have signed the sale and purchase agreement on this acquisition. SOBC already has a very strong reputation in the US and Bermuda legacy markets. Working with DARAG and its strong capital backing will strengthen this, and together we will be able to provide a variety of run-off solutions to a much broader spectrum of companies seeking well-priced and innovative solutions for their legacy portfolios.”
