DARAG announces transaction with DONAU

January 02, 2019

DARAG Group Limited, a leading legacy acquirer, today announced it has agreed to purchase a portfolio of Italian non-life business, consisting primarily of Motor Third Party Liability from DONAU Versicherung AG (“DONAU”). The transaction is subject to approval by the relevant local authorities.

The transaction comprises a going concern transfer from DONAU into DARAG Italia S.p.A, DARAG Group’s Italian entity. DONAU’s existing Italian employees and intermediaries shall transfer into DARAG Italia, which has an existing portfolio of non-life personal lines business.

The transfer provides DONAU with a clean exit from its Italian branch operations and is the first third party transfer into DARAG Italia.

Tullio Ferrucci, CEO of DARAG Italia, said: “Italy is a core market for DARAG, and our carrier has an unparalleled ability to offer local solutions to local and foreign parties seeking a total or partial exit from their non-strategic operations. We are excited to be a key part of DARAG’s expansion and growth, offering legacy solutions whatever the scale and scope required.”

Tom Booth, CEO of DARAG Group, said: “Securing €260m of committed equity capital from Aleph and Crestview in July 2018 alongside Keyhaven Capital Partners, long term shareholder, and expanding into the US and Bermuda marked an exciting new chapter for DARAG. To start 2019 by announcing reaching agreement on this sizeable deal is extremely pleasing and demonstrates our ability to convert an ever increasing pipeline of legacy deals.

Our expertise in European markets remains unparalleled, and we continue to build on our key strength: our ability to deliver flexible capital management solutions for even the most complex legacy portfolios. Italy is an example of a country where our ability to deliver a purely local solution is vital to successful execution and by potential clients. This transaction is significant in that it is the first of its type in the Italian market involving Italian based risks. We look forward to leveraging our unique platform as the market continues to open up to legacy based solutions.”

We were delighted to have been selected to work with DONAU to provide a solution to assist their withdrawal from the Italian market, delivering capital and operational benefits.

About DARAG:

DARAG is a leading international insurance and reinsurance company specialising in the assumption of discontinued business and the provision of capital relief solutions. Building on its strong European roots with recently announced expansion into the US and Bermuda, DARAG has completed 25 run-off transactions in 15 countries with a value of in excess of €600m. For more information, please visit: www.darag-group.com

13 August, 2018 – DARAG, the leading legacy acquirer, and SOBC, the US-based run-off specialist, today announce the formation of a joint venture, SOBC DARAG, in Delaware, to support DARAG’s expansion into the US and Bermuda/Caribbean run-off markets. The joint venture combines the experience and strong capital access of DARAG with the local expertise and reputation of SOBC.

SOBC DARAG is especially pleased to announce its first acquisition, namely of Peachtree Casualty Insurance Company (“Peachtree”), a Florida domiciled nonstandard auto insurer in run-off. The acquisition of Peachtree is subject to regulatory approval and is expected to close in the 3rd quarter of 2018.

The joint venture and acquisition are part of DARAG’s planned expansion into the US and Bermuda/Caribbean markets, and follow the appointment of Tom Booth as CEO and the completion of a €260m ($300m) capital raise by DARAG.

Tom Booth, CEO of DARAG, said: “Following our recent announcement of an additional equity commitment of €260m ($300m), DARAG is targeting the US and Bermuda/Caribbean markets through the SOBC DARAG JV. The agreement by SOBC DARAG to acquire a US carrier in run-off and the announcement of our joint venture with SOBC are exciting steps in our continued growth. We are pleased to be partnering with SOBC and see Peachtree as the first of many opportunities to work together in the US and Bermuda/Caribbean.”

Stephanie Mocatta, CEO of SOBC, said: “We are extremely pleased to form this joint venture with DARAG. We have already worked together on the acquisition of Peachtree Casualty Insurance Company and are delighted to announce that we have signed the Sale & Purchase agreement on this acquisition. SOBC already has a very strong reputation in the US and Bermuda legacy markets. Working with DARAG and its strong capital backing will strengthen this and together we will be able to provide a variety of run-off solutions to a much broader spectrum of companies seeking well priced and innovative solutions for their legacy portfolios.”

Notes to editors:
Peachtree is to be ultimately owned by the newly-formed DARAG Guernsey, owned by DARAG Group Investors. SOBC DARAG Holdings, a direct subsidiary of DARAG Guernsey is to be the principal vehicle for future US and other non-EU based acquisitions.

About DARAG:
DARAG is a leading international insurance and reinsurance company specialising in the assumption of discontinued business and the provision of capital relief solutions. Building on its strong European roots, since 2009 DARAG has completed 23 run-off transactions in 15 countries with a value of in excess of €740m.  DARAG recently completed a €260m ($300m) capital raise, with Aleph Capital Partners and Crestview Partners joining current owners Keyhaven Capital Partners as strategic backers of the business. For more information, please visit: www.darag-group.com

About SOBC:
SOBC is a USA based company specializing in the acquisition of entities with legacy insurance liabilities, including insurance companies, captives and risk retention groups.  Building on the experience of the management team, and founded in 2006, the team has made 17 acquisitions of insurance entities and currently has six under management in various US states and Bermuda. Please visit www.sobcsandell.com