Run-Off Venture Targets Florida Auto Insurer Peachtree Casualty for First Acquisition

International insurance and reinsurance company DARAG and U.S.-based acquisition specialist SOBC have formed a joint venture with SOBC DARAG in Delaware to support DARAG’s expansion into the U.S. and Bermuda/Caribbean run-off markets.

SOBC DARAG’s first acquisition will be Peachtree Casualty Insurance Co., a Florida domiciled non-standard auto insurer in run-off. The acquisition of Peachtree is subject to regulatory approval and is expected to close in the third 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 $300 million capital raise by DARAG.

According to Booth, DARAG is targeting the U.S. and Bermuda/Caribbean markets through the SOBC DARAG joint venture.

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 an international insurance and reinsurance company specialising in the assumption of discontinued business and the provision of capital relief solutions. Since 2009 DARAG has completed 23 run-off transactions in 15 countries with a value of in excess of €740 million.

SOBC is a USA based company specializing in the acquisition of entities with legacy insurance liabilities, including insurance companies, captives and risk retention groups.

Topics Florida Mergers & Acquisitions USA Carriers Auto Casualty