SOBC DARAG, the joint venture between legacy acquirer DARAG and US-based run-off specialist SOBC, has completed its first acquisition; Peachtree Casualty Insurance.
The acquisition of the Florida-based nonstandard auto insurer was completed after approval from the state’s Office of Insurance Regulation.
SOBC DARAG was launched in August to support expansion into the US and Bermuda/Caribbean run-off markets.
The joint venture’s Ohio-based team has also taken over Peachtree’s day-to-day management and claims handling to ensure a successful run-off.
Following the acquisition, the Florida-based insurer will be ultimately owned by the newly-formed DARAG Guernsey.
Stephanie Mocatta, CEO of SOBC DARAG, said working with DARAG had been “extremely satisfying”.
She added: “We are really pleased to have closed our first transaction under our new joint venture between SOBC and DARAG.”
“We have been able to work efficiently and effectively to get this transaction completed in a short time frame.”
“We are now working together on several more potential transactions and look forward to considerable expansion of SOBC DARAG here in the USA.”
Tom Booth, group CEO of DARAG, said the completion of the acquisition is “the first step in our exciting expansion plans into the USA”.
He explained: “DARAG Group, having raised an additional equity commitment of €260 million ($300 million) in July, is committed to expansion in the USA and Bermuda markets: SOBC DARAG will be the platform to achieve this.”
“We are looking forward to considerable growth in this area over the next 12 to 24 months.”