DARAG Guernsey acquires SOBC Services and agrees to acquire four US carriers and a Bermuda-based cell, subject to change of control approval
Further to the announcement in July regarding the joint venture between DARAG and SOBC, we are delighted to announce that DARAG Guernsey via its wholly owned subsidiary, SOBC DARAG Holdings Ltd has now acquired the entire share capital of SOBC Services. SOBC Services is focused on the sourcing, acquisition and management of insurance entities and portfolios in run off in the US, Bermuda and Caribbean. Stephanie Mocatta will be CEO of this US focused legacy business, which will trade under the name SOBC DARAG. Brian Johnston will be CFO and EVP and Tom Hodson, General Counsel. This executive team is complemented by 9 other staff, primarily based in Ohio, with extensive US claims, financial, regulatory and operational experience.
In addition, SOBC DARAG Holdings Ltd, has agreed to acquire from SOBC Corp and SOBC Sandell Holdings, subject to regulatory approval, four insurance entities in run-off and SOBC Insurance Company Ltd, a Protected Cell Company in Connecticut. The entities in run-off comprise:
- American Safety Captive Insurance Company in Vermont, which wrote general and professional liability;
- American Staffing Assurance Company Inc., a protected cell company domiciled in Washington DC which wrote workers’ compensation and general liability protection to temporary staffing agencies;
- PIA Professional Liability Insurance Company Limited, a captive insurer in Montana which issued errors and omissions coverage to professional insurance agents; and
- The economic interest in the Insuratex cell in Bermuda which contains auto liability, general liability and workers’ compensation risks.
Following the recent acquisition of Peachtree in Florida and the change of control approvals for the entities above, SOBC DARAG will own 6 carriers across the US and Bermuda. The team is hopeful that this can all be completed prior to Year End.
Building on this strong infrastructure base in the US and given an excellent pipeline of transactions, SOBC DARAG is expected to see fast expansion in the small to mid-sized run-off space, whilst also challenging the traditional players at the larger end of the market. The existing SOBC staff, including all the executive team, have transferred to the new operation with immediate effect.
SOBC DARAG is focused on acquisitions, LPTs and other business transfers within the run-off markets in the USA, Bermuda and Caribbean.
Stephanie Mocatta, CEO of SOBC DARAG, said: “This transaction marks a great new chapter. With the capital and expertise of the DARAG Group now fully behind us, we believe there is significant opportunity to develop and grow SOBC DARAG. We have already completed the Peachtree Casualty Insurance Company acquisition and are actively working on a number of other new opportunities. We look forward to the considerable expansion of SOBC DARAG here in the USA as well as in Bermuda and the Caribbean. We would also like to thank our previous capital partners, Sandell, for their support. We have enjoyed working with them for the past 24 months.”
Tom Booth, Group CEO of DARAG, said: “Following the equity commitment of €260m ($300m) in July, DARAG announced its intention to expand into the USA and Bermuda markets. The acquisition of SOBC Services via DARAG Guernsey’s wholly owned subsidiary SOBC DARAG Holdings in Delaware, brings onboard an exceptional team of seasoned local professionals. Together with the insurance entities being purchased from the SOBC Group this provides us with a great platform for our future expansion plans in the US legacy market. We have worked closely with the SOBC team on these acquisitions and we are looking forward to continuing our work together and to considerable growth in the coming months and years.”
Notes to editors:
SOBC DARAG Holdings, a direct subsidiary of DARAG Guernsey, is to be the principal vehicle for future US and other non-EU based acquisitions.
About DARAG:
DARAG is a leading international insurance and reinsurance group 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 secured a €260m ($300m) capital commitment, subject to regulatory approval, with Aleph Capital Partners and Crestview Partners alongside current owners Keyhaven Capital Partners. For more information, please visit: www.darag-group.com
About SOBC DARAG:
SOBC DARAG 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.sobcdarag.com
Contacts:
Tom Booth, DARAG
Stephanie Mocatta, SOBC DARAG
Media contact
Peter Rigby
Haggie Partners LLP
Tel.: +44 207 562 4444
Jakub Stawiski
Haggie Partners LLP
Tel.: +44 207 562 4444
Becky Young
Haggie Partners LLP
Tel.: +44 207 562 4444