DARAG partners with Lyft on reinsurance transaction
Legacy specialist DARAG Group Ltd has executed a reinsurance transaction written through DARAG Bermuda Ltd.
DARAG said the transaction is with Pacific Valley Insurance Company, Lyft Inc’s captive insurance company.
The company said it covers PVIC’s commercial auto liabilities -predominantly from an excess layer for policies with a limit of up to $1 million per claim – occurring from October 2018 through September 2020.
The underlying reserves subject to the transaction are estimated to be approximately $250 million.
This transaction delivers economic finality to Lyft while bringing together the experience and knowhow of the Lyft and DARAG claims teams for oversight of the legacy risk management, the company said.
Daniel Linden, chief executive officer of DARAG North America, said: “DARAG is excited to partner with Lyft on this transaction. This transaction follows an exit solution we provided to a US retailer at the end of 2020 and solidifies DARAG North America’s commitment to providing legacy liability solutions to corporations across the globe.
“The capital being contributed to DARAG Bermuda Ltd as part of the transaction, builds upon the substantial growth it has experienced since being licensed in March of 2020. The transaction is the fifth completed by DARAG Bermuda Ltd within 12 months and is further illustration of the hard work, partnership, and forward thinking approach the Bermuda based M&A team brings to the legacy market.”
Tom Booth, CEO of DARAG Group, said: “I am delighted that we have reached agreement on another sizeable legacy deal, further cementing DARAG’s place as one of the leading worldwide legacy players. This portfolio builds upon the two other US commercial auto books DARAG North America has assumed and is running off successfully with assistance from its expert claims team.”