13 August, 2018 – DARAG, the leading legacy acquirer, and SOBC, the US-based run-off specialist, today announce the formation of a joint venture, SOBC DARAG, in Delaware, to support DARAG’s expansion into the US and Bermuda/Caribbean run-off markets. The joint venture combines the experience and strong capital access of DARAG with the local expertise and reputation of SOBC.
SOBC DARAG is especially pleased to announce its first acquisition, namely of Peachtree Casualty Insurance Company (“Peachtree”), a Florida domiciled nonstandard auto insurer in run-off. The acquisition of Peachtree is subject to regulatory approval and is expected to close in the 3rd quarter of 2018.
The joint venture and acquisition are part of DARAG’s planned expansion into the US and Bermuda/Caribbean markets, and follow the appointment of Tom Booth as CEO and the completion of a €260m ($300m) capital raise by DARAG.
Tom Booth, CEO of DARAG, said: “Following our recent announcement of an additional equity commitment of €260m ($300m), DARAG is targeting the US and Bermuda/Caribbean markets through the SOBC DARAG JV. The agreement by SOBC DARAG to acquire a US carrier in run-off and the announcement of our joint venture with SOBC are exciting steps in our continued growth. 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.”
Stephanie Mocatta, CEO of SOBC, said: “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.”
Notes to editors:
Peachtree is to be ultimately owned by the newly-formed DARAG Guernsey, owned by DARAG Group Investors. SOBC DARAG Holdings, a direct subsidiary of DARAG Guernsey is to be the principal vehicle for future US and other non-EU based acquisitions.
DARAG is a leading international insurance and reinsurance company specialising in the assumption of discontinued business and the provision of capital relief solutions. Building on its strong European roots, since 2009 DARAG has completed 23 run-off transactions in 15 countries with a value of in excess of €740m. DARAG recently completed a €260m ($300m) capital raise, with Aleph Capital Partners and Crestview Partners joining current owners Keyhaven Capital Partners as strategic backers of the business. For more information, please visit: www.darag-group.com
SOBC is a USA based company specializing in the acquisition of entities with legacy insurance liabilities, including insurance companies, captives and risk retention groups. Building on the experience of the management team, and founded in 2006, the team has made 17 acquisitions of insurance entities and currently has six under management in various US states and Bermuda. Please visit www.sobcsandell.com