European legacy acquirer DARAG has announced the formation a joint venture with run-off specialist SOBC Sandell, to facilitate an expansion into the U.S and Bermuda/Caribbean run-off markets.
Concurrently, SOBC DARAG has confirmed the acquisition of Peachtree Casualty Insurance Company – a Florida-domiciled non-standard auto insurer in run-off – expected to close in Q3 2018.
DARAG’s joint venture with U.S-based SOBC follows the appointment of Tom Booth as Chief Executive Officer and the completion of a €260m ($300m) capital raise by DARAG.
“The agreement by SOBC DARAG to acquire a U.S carrier in run-off and the announcement of our joint venture with SOBC are exciting steps in our continued growth,” commented Booth.
“We are pleased to be partnering with SOBC and see Peachtree as the first of many opportunities to work together in the US and Bermuda/Caribbean.”
CEO of SOBC, Stephanie Mocatta, added, “We are extremely pleased to form this joint venture with DARAG. We have already worked together on the acquisition of Peachtree Casualty Insurance Company and are delighted to announce that we have signed the Sale & Purchase agreement on this acquisition.”
“SOBC already has a very strong reputation in the US and Bermuda legacy markets. Working with DARAG and its strong capital backing will strengthen this and together we will be able to provide a variety of run-off solutions to a much broader spectrum of companies seeking well priced and innovative solutions for their legacy portfolios.”