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SOBC Services Is Now SOBC DARAG

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November 27, 2018

Through its wholly owned subsidiary SOBC DARAG Holdings Ltd., DARAG Guernsey has acquired the entire share capital of SOBC Services. SOBC Services is focused on the sourcing, acquisition, and management of insurance entities and portfolios in runoff in the United States, Bermuda, and the Caribbean.

SOBC DARAG focuses on acquisitions, loss portfolio transfers, and other business transfers for insurance companies, captive insurance companies, and risk retention groups within the United States, Bermuda, and Caribbean runoff markets.

Stephanie Mocatta will be CEO of this US focused legacy business, which will trade under the name SOBC DARAG. Brian Johnston will be chief financial officer and executive vice president and Tom Hodson, general counsel. This executive team is complemented by nine other staff, primarily based in Ohio with extensive US claims, financial, regulatory, and operational experience.

In addition, SOBC DARAG Holdings Ltd. has agreed to acquire from SOBC Corp. and SOBC Sandell Holdings (subject to regulatory approval) four insurance entities in runoff and SOBC Insurance Company Ltd., a protected cell company in Connecticut. The entities in runoff are as follows.

  1. American Safety Captive Insurance Company in Vermont, which wrote general and professional liability;
  2. American Staffing Assurance Company Inc., a protected cell company domiciled in Washington, DC, which wrote workers compensation and general liability protection to temporary staffing agencies;
  3. PIA Professional Liability Insurance Company Limited, a captive insurer in Montana that issued errors and omissions coverage to professional insurance agents; and
  4. The economic interest in the Insuratex cell in Bermuda, which contains auto liability, general liability, and workers compensation risks.

Following the recent acquisition of Peachtree in Florida and the change of control approvals for the entities above, SOBC DARAG said it will own six insurers across the United States and Bermuda. 

SOBC DARAG said it will build on the strong infrastructure base in the United States along with a healthy pipeline of transactions to quickly expand in the small-to-midsized runoff space and looks to challenge traditional players at the larger end of the market. 

SOBC's existing staff, including all the executive team, have transferred to the new operation, effective immediately.

Ms. Mocatta said, "This transaction marks a great new chapter. With the capital and expertise of the DARAG Group now fully behind us, we believe there is significant opportunity to develop and grow SOBC DARAG … here in the [United States] as well as in Bermuda and the Caribbean."

Tom Booth, group CEO of DARAG, said, "The acquisition of SOBC Services via DARAG Guernsey's wholly owned subsidiary SOBC DARAG Holdings in Delaware, brings onboard an exceptional team of seasoned local professionals."

Earlier this year, SOBC DARAG was formed as a joint venture in Delaware to support DARAG's expansion into the US and Bermuda/Caribbean runoff markets.

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