DARAG Group has announced the completion of two significant captive legacy deals, with the specifics of these transactions confidential.
The agreements involve the transfer of insurance liabilities through novation from the captives to DARAG, alongside their respective fronting carriers. One of the captives, located in Bermuda, covered insured risks up until 2016 and successfully completed its transaction at the close of 2023.
The other, based in the Cayman Islands, dealt with insured risks through 2015, with its transaction finalized in early 2024. The coverage areas for both portfolios included workers’ compensation, general liability, and auto liability exposures.
Tom Booth, CEO of DARAG, expressed enthusiasm about the completion of the deals, which he views as a strong start to 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,” Booth said.
Joel Neal, executive vice president of M&A at DARAG North America, also emphasized the importance of such agreements in supporting client needs.
“The conclusion of these deals also shows the continuation of a successful partnership with Guy Carpenter’s Captive Segment, who advised both sellers,” Neal said.
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