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DARAG acquires North American captive insurance company for $30mn

30th August 2022 - Author: Kassandra Jimenez-Sanchez

Legacy acquirer, DARAG Group concluded a new agreement with an undisclosed captive insurance company, with a transaction value of approximately $30 million.

darag-logoThe transaction, written into DARAG Bermuda, allows the original insurer full legal finality, with DARAG facing the original fronting insurer.

Its structure was a novation of its 03-06 and 15/16 policy years with primarily workers’ compensation reserves.

Tom Booth, CEO of DARAG Group, said: “We are pleased to have acted as a trusted partner for our client enabling them to focus on their core business and ongoing underwriting profitability.

“DARAG has developed an excellent track record in this core niche of small to mid-sized captive and self-insured portfolios in North America. Our focus on underwriting discipline and risk management is central to our expansion. Our appetite to continue growth in this area is therefore stronger than ever.

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According to Booth, the Group will be announcing another similar sized transaction shortly. This past April, DARAG Group entered another North American captive transaction; its value hit the $10 million mark.

He added: “DARAG Bermuda is a core carrier for the Group and now benefits from a well-diversified, mature and low volatility portfolio. I am delighted that we continue to have a wealth of attractive opportunities and the capacity to execute deals in our traditional area of focus. I look forward to the future of DARAG Bermuda and the remainder of the Group with confidence.”

Joel Neal, executive vice president, M&A at DARAG North America, said: “We are seeing a continued need for improved operational efficiency in the North American market. Transactions such as these enable our clients to achieve this, while simultaneously freeing up trapped capital. We look forward to announcing further transactions in the future.”

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