DARAG Group has announced the “conclusion of a new agreement with an undisclosed captive insurance company”.
A spokesperson said: “The structure of the transaction was a novation of its 03-06 and 15/16 policy years with primarily workers’ compensation reserves, allowing the counterparty full legal finality with DARAG against the original front belayer. The value of the transaction on the record date was approximately $30 million.
“The transaction was written in DARAG Bermuda, which has a strong balance sheet and high solvency ratio having benefited from the recent switch of a commercial automotive ledger.”
Tom Booth, CEO of DARAG Group, said: “We are delighted to have acted as a trusted partner for our client, allowing them to focus on their core business and continued underwriting profitability.
“DARAG has developed an excellent track record in this core niche of small to medium sized captive and self-insured portfolios in North America. Our focus on underwriting discipline and risk management is central to our expansion. Our desire to continue our growth in this area is therefore stronger than ever. We expect to announce another transaction of a similar size soon and the pipeline for the rest of the year is beyond expectations.
“DARAG Bermuda is a key operator for the Group and now benefits from a well diversified, mature and low volatility portfolio. I am delighted that we continue to have a wealth of exciting opportunities and the ability to execute transactions in our traditional area of focus. I look forward with confidence to the future of DARAG Bermuda and the rest of the group.
Joel Neal, Executive Vice President, M&A at DARAG North America, added, “We see a continued need for operational efficiency improvements in the North American market. Such transactions allow our clients to achieve this, while freeing up trapped capital. We look forward to announcing further transactions in the future.
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