DARAG Group (DARAG) has executed a reinsurance transaction with Pacific Valley Insurance Company (PVIC), Lyft’s captive insurance company.
The reinsurance transaction, written through DARAG Bermuda, covers PVIC’s commercial auto liabilities — predominantly from an excess layer for policies with a limit of up to $1 million per claim — occurring from 1 October 2018 through 30 September 2020.
The underlying reserves subject to the transaction are estimated to be approximately $250 million.
The transaction delivers economic finality to Lyft while bringing together the experience and know-how of the Lyft and DARAG claims teams for oversight of the legacy risk management.
Commenting on the deal, Daniel Linden, CEO of DARAG North America, says: “This transaction follows an exit solution we provided to a US retailer at the end of 2020 and solidifies DARAG North America’s commitment to providing legacy liability solutions to corporations across the globe.”
He continues: “The capital being contributed to DARAG Bermuda. as part of the transaction, builds upon the substantial growth it has experienced since being licensed in March of 2020.”
The transaction is the fifth completed by DARAG Bermuda within 12 months and according to Linden is “further illustration of the hard work, partnership, and forward thinking approach the Bermuda based merger and acquisition (M&A) team brings to the legacy market”.
Tom Booth, CEO of DARAG Group, notes: “I am delighted that we have reached agreement on another sizable legacy deal, further cementing DARAG’s place as one of the leading worldwide legacy players. This portfolio builds upon the two other US commercial auto books DARAG North America has assumed and is running off successfully with assistance from its expert claims team.”
In April 2020, a wholly-owned US subsidiary of Enstar Group entered into a novation agreement with Lyft and underwriting companies of Zurich North America.
