DARAG strikes $40m novation deal with Cayman reinsurer

Legacy acquirer DARAG has concluded a novation agreement with an unnamed Cayman reinsurer to provide finality for its US liability books, in a deal valued in excess of $40 million.

The transaction has been written into DARAG Bermuda, which will provide legal, economic and operational finality for the counterparty’s US workers’ compensation, general liability, auto liability and product liability books of business.

Tom Booth, CEO 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, CEO of DARAG North America, DARAG’s Bermuda and US arm, added: “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. We are very pleased to have been able to support such an established counterparty and demonstrate DARAG’s expertise as the favoured legacy acquirer for both counterparties and fronting carriers alike.”