Run-off acquirer Darag has entered a joint venture with US-based SOBC in a bid to grow beyond its European heartland into the North American, Caribbean and Bermudian legacy markets.

The joint venture - named SOBC Darag - has already done its first deal, acquiring Peachtree Casualty Insurance Company, a defunct Florida domiciled nonstandard auto insurer.

The terms of the acquisition were not disclosed, but Darag said it expects the deal to close in the third quarter of this year.

Darag said the joint venture and acquisition are part of its planned expansion and follow the completion of a EUR260m ($300m) capital raise last month.

“Following our recent announcement of an additional equity commitment of EUR260m, Darag is targeting the US and Bermuda/Caribbean markets through the SOBC Darag [joint venture],” newly appointed Darag CEO Tom Booth said.

“The agreement by SOBC Darag to acquire a US carrier in run-off and the announcement of our joint venture with SOBC are exciting steps in our continued growth,” Booth added.

“We are pleased to be partnering with SOBC and see Peachtree as the first of many opportunities to work together in the US and Bermuda/Caribbean.”

“We are extremely pleased to form this joint venture with Darag,” Stephanie Mocatta, CEO of SOBC, said.

“We have already worked together on the acquisition of Peachtree Casualty Insurance Company and are delighted to announce that we have signed the sale & purchase agreement on this acquisition,” she went on.

“SOBC already has a very strong reputation in the US and Bermuda legacy markets.”

“Working with Darag and its strong capital backing will strengthen this and together we will be able to provide a variety of run-off solutions to a much broader spectrum of companies seeking well priced and innovative solutions for their legacy portfolios.”