25 June 2019USA analysis

Peachtree signals appetite for future acquisitions

Peachtree Casualty Insurance Company has completed its first assumption of legacy liabilities since it was acquired by SOBC DARAG in November 2018, and is surveying the landscape for new potential targets.

Stephanie Mocatta, CEO of SOBC DARAG, said the company is looking to expand its existing licenses, both geographically and by class, noting that the outcome of this merger provided a template for future transactions.

That should simplify future deals. “Since we acquired Peachtree in November 2018, we have been considering the best way to runoff Peachtree and utilise its potential as a licensed carrier,” said Mocatta.

“We look forward to building Peachtree as an acquirer of legacy business, to the benefit of existing and future policy holders,” she added.

Tom Booth, Group CEO of DARAG described its acquisition of SOBC last year as “a great step forward” in its expansion plans in the US and Bermuda. “With the completion of our capital raise we have the scale and ambition to succeed as a truly global legacy provider,” he said.