SOBC DARAG, the newly-formed joint venture between U.S run-off specialist SOBC and European legacy acquirer DARAG, has completed its acquisition of Florida-based Peachtree Casualty Insurance Company.
The acquisition, which was first announced in August 2018, marks SOBC DARAG’s first U.S acquisition and represents part of the initial stage of the company’s expansion into the U.S and Bermuda/ Caribbean run-off markets.
SOBC DARAG said that it has received approval from the Florida Office of Insurance Regulation for its purchase, and added that its Ohio-based team has already taken over the day-to-day management and claims handling of Peachtree to ensure a successful run-off.
“We are really pleased to have closed our first transaction under our new joint venture between SOBC and DARAG,” said Stephanie Mocatta, Chief Executive Officer (CEO) of SOBC DARAG.
“Working together with DARAG has been extremely satisfying; we have been able to work efficiently and effectively to get this transaction completed in a short time frame,” Mocatta continued. “We are now working together on several more potential transactions and look forward to considerable expansion of SOBC DARAG here in the USA.”
Tom Booth, Group CEO of DARAG, also commented: “The completion of Peachtree is the first step in our exciting expansion plans into the USA. DARAG Group, having raised an additional equity commitment of €260m ($300m) in July, is committed to expansion in the USA and Bermuda markets: SOBC DARAG will be the platform to achieve this. We are looking forward to considerable growth in this area over the next 12 to 24 months.”
Peachtree will ultimately be owned by the newly-formed DARAG Guernsey, a company owned by DARAG Group Investors, the company explained.
SOBC DARAG Holdings is a direct subsidiary of DARAG Guernsey, and will be the principal vehicle for future U.S and other non-EU-based acquisitions.