DARAG acquires SunPoint Holdings
DARAG has acquired SunPoint Holdings in Bermuda in a deal that sees Amel Esposito, who headed SunPoint's claims operation, named as head of US claims and service operations at DARAG North America.
A team of eight from SunPoint take up positions at DARAG alongside Esposito. SunPoint will serve as a vehicle for further expansion, DARAG said.
SunPoint offered reinsurance and run-off solutions to US and Bermuda insurers from 2017 to 2019, with a portfolio consisting of general liability, construction defect, New York labour law and workers’ compensation across the US. The deal provides the seller with complete economic and legal finality in respect of the business.
SunPoint is DARAG’s first company acquisition in Bermuda since it launched its operation there in 2019.
Tom Booth, DARAG Group chief executive, noted that DARAG has made substantial investments into its claims function. “Claims expertise for portfolio due diligence and pro-active claims management, to ensure strong case reserving and prompt and mutually beneficial settlements, must be a key attribute of any market leading legacy acquirer,” he argued.
“We have already seen the benefit in the US of having dedicated and skilled oversight of our third party administrator-managed portfolios, led by Christine Karolyi,” Booth added. “DARAG North America now benefits from a US claims operation with wide scale licenses, in-house management capability and expertise in specialist and complex claims.”
Daniel Linden, chief executive officer at DARAG North America, DARAG’s Bermuda and US arm, said: “DARAG’s expansion across global markets and in Bermuda in particular has been gathering pace this year. This landmark transaction consolidates our presence in the North American legacy market and furnishes DARAG North America with a sophisticated platform for further growth, with a diversified portfolio and market-leading claims talent.”
Esposito added: “With DARAG, we foresee significant expansion plans in the US runoff space and are fortunate to be the ones to help achieve these goals.”