Darag Group, the international legacy acquirer, has concluded an agreement between an undisclosed Cayman-based captive company and its Bermudian insurance carrier, Darag Bermuda Ltd.

The transaction structure is a renewal of a previous novation agreement, with DBL assuming additional policy years.

This agreement allows the counterparty to release capital back to members of the wider group. Through this, the captive is able to achieve full legal finality for its workers’ compensation, general liability and auto liability lines of business for the added policy years, the company said.

Tom Booth, CEO of Darag, said: “Darag’s exceptional track record as a trusted partner in servicing small to mid-sized captive and self-insured portfolios in North America is a testament to our expertise in this niche market.”

Joel Neal, executive vice-president, M&A, at Darag North America, added: “It’s a pleasure to renew this business with our Cayman-based partner.

“In doing so, we are enabling them to concentrate on their primary business operations and underwriting profitability, freeing up trapped capital and improving efficiency.

“Our pipeline for 2023 exceeds expectations and we look forward to announcing further transactions.”