Legacy acquirer DARAG and US-based run-off specialist SOBC have launched a joint venture, SOBC DARAG, to support expansion into the US and Bermuda/Caribbean run-off markets.
The joint venture, based in Delaware, combines the experience and strong capital access of DARAG with the local expertise and reputation of SOBC.
SOBC DARAG’s first acquisition will be Peachtree Casualty Insurance, a Florida-based nonstandard auto insurer in run-off.
The acquisition is subject to regulatory approval and is expected to close in the 3rd quarter of 2018.
The launch of SOBC DARAG, and the subsequent acquisition, follow the appointment of Tom Booth as DARAG CEO and the receipt of €260 million in equity funding.
Booth said the company was pleased to be partnering with SOBC and the acquisition of Peachtree as the first of many opportunities to work together in the US and Bermuda/Caribbean market.
He added: “Following our recent announcement of an additional equity commitment of €260m ($300m), DARAG is targeting the US and Bermuda/Caribbean markets through the SOBC DARAG.”
“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.”
According to Stephanie Mocatta, CEO of SOBC, working with DARAG and it strong capital backing will help to strengthen SOBC’s already strong reputation in the US and Bermuda/Caribbean.
Mocatta commented: “We are extremely pleased to form this joint venture with DARAG.”
“We have already worked together on the acquisition of Peachtree Casualty Insurance Company and are delighted to announce that we have signed the Sale & Purchase agreement on this acquisition.”
“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.”
