DARAG completes purchase of Hawaii captive

Legacy insurer DARAG Group, which has a Bermuda based operation, has closed the purchase of a Hawaii captive insurer which went into runoff last year.

DARAG said the insurer’s portfolio of workers compensation business will be transferred into an existing US domiciled DARAG entity, thereby offering full legal finality. .

Tom Booth, CEO of DARAG, said: “There is continued interest in the North American captive market for bespoke legacy solutions that enable companies or groups of companies to achieve finality for their 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.”

Joel Neal, executive vice president, M&A, at DARAG North America, added: “ 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.

“We also thank the Lockton Alternative Risk Practice for its role as the seller’s intermediary, contributing to the successful conclusion of this transaction.”

DARAG  is a legacy insurer which specialises in the captive market around the world. It has now completed 66 run-off transactions in 21 countries with a value in excess of €1.7 billion.