Legacy specialists DARAG have acquired a new Hawaii-domiciled captive carrying a portfolio of workers’ compensation business.
The book was put into run-off in 2023 and will be transferred to one of DARAG’s existing US domiciled entities, providing full legal finality.
Tom Booth, CEO of DARAG, said there is a continued interest in the North American captive market for bespoke legacy solutions that enables companies or groups of companies to achieve finality for self-insured liabilities.
“DARAG’s onshore infrastructure enabled us to complete this acquisition effectively and we are pleased to be able to consolidate further our leading position within the US self-insured market,” Both added.
In October, DARAG concluded a novation agreement between an undisclosed Benelux based captive, the captive’s policyholder and DARAG’s German insurance carrier DARAG Deutschland AG.
In July, it was announced that DARAG had concluded two transactions with undisclosed North American captive insurance companies.
“Our strong historical track record and relationships meant that we could complete the acquisition, including regulatory and fronting carrier approvals, in a highly efficient timeframe,” said Joel Neal, executive vice president, M&A, at DARAG North America.
“We also thank the Lockton alternative risk practice for its role as the seller’s intermediary, contributing to the successful conclusion of this transaction.”