DARAG Guernsey has acquired the entire share capital of SOBC Services, via its wholly owned subsidiary, SOBC DARAG Holdings.
In July, SOBC and DARAG launched a joint venture to support expansion into the US and Bermuda/Caribbean run-off markets.
This acquisition now means that DARAG wholly owns the joint venture, which will continue to trade under the name SOBC DARAG.
The entire SOBC staff and executive team have transferred to SOBC DARAG with immediate effect.
Stephanie Mocatta has taken the role of CEO, Brian Johnston has taken the roles of CFO and executive vice president, and Tom Hodson has taken the role of general counsel.
Additionally, SOBC DARAG Holdings has agreed to acquire four insurance entities in run-off and Connecticut-based protected cell company SOBC Insurance Company from SOBC Corp and SOBC Sandell Holdings.
The entities in run-off include American Safety Captive Insurance in Vermont, which wrote general and professional liability; American Staffing Assurance, a protected cell company domiciled in Washington DC that wrote workers’ compensation and general liability protection to temporary staffing agencies, PIA Professional Liability Insurance, a captive insurer in Montana that issued errors and omissions coverage to professional insurance agents; and the economic interest in the Insuratex cell in Bermuda which contains auto liability, general liability and workers’ compensation risks.
Following SOBC DARAG’s acquisition of Peachtree Insurance in July, and the change of control approvals for the above entities, SOBC DARAG will own six carriers across the US and Bermuda.
The company is hopeful that this can all be completed prior to the end of 2018.
Mocatta said the transaction marks a “great new chapter”.
She commented: “With the capital and expertise of the DARAG Group now fully behind us, we believe there is significant opportunity to develop and grow SOBC DARAG.”
“We have already completed the Peachtree Casualty Insurance Company acquisition and are actively working on a number of other new opportunities.”
“We look forward to the considerable expansion of SOBC DARAG here in the US as well as in Bermuda and the Caribbean.
According to Tom Booth, group CEO of DARAG, the acquisition provided a “great platform” for DARAG’s expansion strategy into the US and Bermuda markets.
He explained: “The acquisition of SOBC Services via DARAG Guernsey’s wholly owned subsidiary SOBC DARAG Holdings in Delaware, brings onboard an exceptional team of seasoned local professionals.”
“Following the equity commitment of €260m ($300m) in July, DARAG announced its intention to expand into the USA and Bermuda markets.”
“The acquisition of SOBC Services via DARAG Guernsey’s wholly owned subsidiary SOBC DARAG Holdings in Delaware, brings onboard an exceptional team of seasoned local professionals. “
