DARAG seals loss portfolio transfer deal within new North American insurer

Legacy acquisition firm DARAG has completed its loss portfolio transfer deal with Hallmark Financial Services within its newly established cornerstone North American insurer, DARAG Bermuda. The firm has also revealed that, subject to approval by the Bermuda Monetary Authority, it has acquired a Bermuda class 3A reinsurance company.

In a statement DARAG said these transactions cap off a very successful first 12-months for its Bermuda operations established in August 2019. Since the launch of DARAG’s Bermuda operations and its North American deals team, the team has completed seven transactions, with assumed subject reserves in excess of $400 million. The transactions include loss portfolio transfers, novations (an agreement to replace one party to an insurance policy or reinsurance agreement with another company from inception of the coverage period) and acquisitions, with counterparties ranging from multinational and US insurers to corporations and captives.

Tom Booth, CEO of DARAG, said the loss portfolio transfer agreement with Hallmark Financial Services, together with recently revealed two senior appointments and the firm’s our Atlanta office launch, are all “key milestones in the rapid growth and success of our North American business”.

He said: “DARAG North America has the expertise and the appetite to provide effective capital relief solutions to businesses in both the US and Bermuda and the first 12-months of operations is a testament to this.”

Daniel Linden, CEO of DARAG North America, DARAG’s Bermuda and US arm, said: “Current market conditions present significant opportunities for legacy providers, not least in North America.”