Legacy acquirer DARAG Group has entered into a new agreement to purchase a Texas-based insurer in run-off.
DARAG will look to use this insurer as its key US-based carrier to assume previously self-insured risk and other third-party legacy portfolios requiring licensed paper.
The transaction, which has received regulatory approval, will also relieve the Texas Department of Insurance (TDI) of the administration of the insurer.
“With this acquisition, DARAG is notably strengthening its presence and infrastructure in North America,” said Daniel Linden, CEO of DARAG North America.
“Our management team has worked with TDI previously and greatly appreciates their knowledge of the complex legacy market. We look forward to a successful partnership with the state and future clients alike.”
Tom Booth, Group CEO, also commented: “We are pleased to widen DARAG’s toolkit and to be able to offer licensed paper in the US for self-insured entities.”
“This will provide them with full finality exit solutions alongside more traditional LPTs,” Booth added. “We believe a Texas-domiciled insurer is an ideal platform for this line of business in which the DARAG team has strong experience of and expertise.”
