SOBC DARAG, a joint venture between US-based run-off specialist SOBC and European legacy acquirer DARAG, has closed its first US run-off deal with the acquisition of Florida-based Peachtree Casualty Insurance Company.
The deal was finalised after receiving approval from the Florida Office of Insurance Regulation. SOBC DARAG’s Ohio-based team has taken over the day-to-day management and claims handling of Peachtree to ensure a successful run-off.
DARAG had announced its joint venture with SOBC in Delaware back in August, with the aim of expanding into the US, Bermuda and Caribbean run-off markets.
“We are really pleased to have closed our first transaction under our new joint venture between SOBC and DARAG," said Stephanie Mocatta, CEO of SOBC DARAG. "Working together with DARAG has been extremely satisfying; we have been able to work efficiently and effectively to get this transaction completed in a short time frame. We are now working together on several more potential transactions and look forward to considerable expansion of SOBC DARAG here in the USA.”
Tom Booth, group CEO of DARAG, added: “The completion of Peachtree is the first step in our exciting expansion plans into the USA. DARAG Group, having raised an additional equity commitment of €260m ($300m) in July, is committed to expansion in the USA and Bermuda markets: SOBC DARAG will be the platform to achieve this. We are looking forward to considerable growth in this area over the next 12 to 24 months.”
SOBC, DARAG, Run-off, M&A, Florida, North America