Leading legacy acquirer, DARAG Group has announced the conclusion of an agreement between an undisclosed Cayman-based captive company and its Bermudian insurance carrier, DARAG Bermuda Ltd. (DBL).
According to the announcement, the transaction structure is a renewal of a previous novation agreement, with DBL assuming additional policy years.
This agreement will allow the counterparty to release capital back to members of the wider group. Through this, the captive will be able to achieve full legal finality for its workers’ compensation, general liability and auto liability lines of business for the added policy years.
Joel Neal, executive vice president, M&A, at DARAG North America, commented: “It’s a pleasure to renew this business with our Cayman-based partner.
“In doing so, we are enabling them to concentrate on their primary business operations and underwriting profitability, freeing up trapped capital and improving efficiency. Our pipeline for 2023 exceeds expectations and we look forward to announcing further transactions.”
As an international re/insurance group, DARAG specialises in the assumption of discontinued business and the provision of capital relief solutions. The Group has completed 61 run-off transactions in 21 countries with a value in excess of €1.7bn.
Tom Booth, CEO of DARAG, said: “DARAG’s exceptional track record as a trusted partner in servicing small to mid-sized captive and self-insured portfolios in North America is a testament to our expertise in this niche market.”
