DARAG Bermuda concludes novation agreement with Cayman reinsurer

DARAG Bermuda has concluded a novation agreement with an unnamed Cayman reinsurer to provide finality for its US liability books.

DARAG Bermuda provides legal, economic and operational finality for the counterparty’s US workers’ compensation, general liability, auto liability and product liability books of business, with the transaction value in excess of $40 million.

Tom Booth, chief executive of DARAG Group, said: “Our Bermuda operation is pressing ahead with our expansion strategy in the region. We continue to invest in our global business and to provide tailored capital relief solutions to clients and we look forward to further transactions in North America.”

Daniel Linden, chief executive of DARAG North America, DARAG’s Bermuda and US arm,  said: “Our team has worked closely with the client to ensure that their strategic goals are achieved with this transaction. The completion of the deal provides the company with a clean economic exit and certainty about future development.”