DARAG Group, the legacy specialist, has entered into a stock purchase agreement and received the relevant regulatory approval for the purchase of a Texas-based insurer in run-off, it announced today.

DARAG said it would look to use this insurer as its key US-based carrier to assume previously self-insured risk and other third-party legacy portfolios requiring licensed paper.

The Group said it aimed to expand capabilities across all 50 states.

This transaction relieves the Texas Department of Insurance of the administration of the insurer and further builds upon DARAG’s existing relationship with the department, the company said.

Daniel Linden is CEO of DARAG North America, the company’s Bermuda and US arm, and is based on the island.

He said: “With this acquisition, DARAG is notably strengthening its presence and infrastructure in North America.

“Our management team has worked with TDI previously and greatly appreciates their knowledge of the complex legacy market. We look forward to a successful partnership with the state and future clients alike.”

Tom Booth, Group CEO, added: “We are pleased to widen DARAG’s toolkit and to be able to offer licensed paper in the US for self-insured entities.

“This will provide them with full finality exit solutions alongside more traditional LPTs.

“We believe a Texas-domiciled insurer is an ideal platform for this line of business in which the DARAG team has strong experience of and expertise.”