DARAG closes captive legacy deals in Bermuda and Cayman
DARAG Group has completed two legacy transactions involving Bermuda and Cayman captives, just one week after announcing a transaction in Hawaii.
The transactions, the terms for which were not disclosed, were both executed by way of novation with the captives and their respective fronting carrier.
“The first transaction involved a Bermuda-based captive for insured risks through to 2016 and was completed at the end of 2023,” the Guernsey-based company with Bermuda operations said. “The second was an undisclosed Cayman-based captive for insured risks through 2015 and was concluded in early 2024.
“Both portfolios insured workers compensation, general liability and auto liability exposure.”
Tom Booth, CEO of DARAG, said: “Completing these transactions is an excellent way to begin 2024. They demonstrate the busy year DARAG North America has had and show that there is increased interest for bespoke legacy solutions that enable insurers to achieve finality for their books of business.”
Joel Neal, executive vice president, M&A, at DARAG North America, added: “Agreements like these are vital in supporting our clients, allowing our counterparties to release capital, achieve full legal finality and operate more efficiently. The conclusion of these deals also shows the continuation of a successful partnership with Guy Carpenter’s Captive Segment, who advised both sellers.”
DARAG Group last week closed the purchase of a Hawaii captive insurer which went into runoff last year.
DARAG said the insurer’s portfolio of workers compensation business will be transferred into an existing US domiciled DARAG entity, thereby offering full legal finality.
