DARAG Group, a company specialising in acquiring legacy insurance portfolios, has announced the conclusion of two captive legacy transactions while keeping the details undisclosed.
In these agreements, insurance liabilities were transferred from the captives to DARAG through novation, along with their respective fronting carriers.
In the first transaction, DARAG assumed the insured risks of a Bermuda-based captive until 2016, finalised by the end of 2023.
The second deal involved similar arrangements with an undisclosed Cayman-based captive, covering insured risks until 2015 and concluded in early 2024.
Both sets of policies provided coverage for workers’ compensation, general liability, and auto liability exposures.
Tom Booth, CEO of DARAG, expressed enthusiasm about completing these deals, stating, “Completing these transactions is an excellent way to begin 2024.”
Following DARAG’s recent acquisition of a Hawaii captive on February 1, 2024, where the workers’ compensation business went into runoff in 2023, Joel Neal, Executive Vice President of M&A at DARAG North America, highlighted the company’s swift provision of legal closure for the workers’ compensation business “in a highly efficient timeframe.”
Booth believes that DARAG’s completion of multiple transactions in February indicates an “increased interest for bespoke legacy solutions that enable insurers to achieve finality for their books of business.”
Joel Neal, Executive Vice President, M&A, at DARAG North America, added: “Agreements like these are vital in supporting our clients, allowing our counterparties to release capital, achieve full legal finality and operate more efficiently.
Neal also underscored the continued successful collaboration with Guy Carpenter’s Captive Segment, which provided advisory services to both sellers.
