Private equity investors, Pelican Ventures and J.C. Flowers & Co., have completed their previously announced acquisition of Ariel Re from Argo Group International Holdings.
Founded in 2005, Ariel Re had been part of Argo Group since 2017. The company underwrites a global portfolio of reinsurance solutions in Bermuda, London and Hong Kong through its Lloyd’s of London platform.
Alongside the acquisition, Pelican Ventures and J.C. Flowers & Co. have also announced the finalisation of an operational partnership with Apollo Syndicate Management Limited to develop SPA 6133, a Lloyd’s special purpose arrangement focused on property cat reinsurance.
Under the terms of this operational partnership, the pair of private equity investors will provide additional capital, with Ariel Re providing operational support and distribution.
The brining together of Ariel Re with SPA 6133 is expected to drive greater scale and enable Ariel to create more meaningful relationships with its clients.
With the acquisition now complete, Ryan Mather has returned to Ariel Re as Chief Executive Officer (CEO).
“Ariel Re has a world class team of people, a well-established book of business, a great platform and we want to expand on that.
“Although you may be familiar with the name, this won’t be the same Ariel Re of the past. The new Ariel is excited to become a bigger, bolder player in the industry and is eager to work with both old and new clients to help fulfil our vision of making Ariel Re the premier manager of reinsurance risk,” said Mather.
Pelican Ventures includes the Founder of Bermuda-based reinsurer RenaissanceRe and former TigerRisk Partners Chairman and Co-Founder, Jim Stanard, and also catastrophe risk modelling pioneer, Jayant Khadilkar.
Following the deal completion, Stanard will become Ariel’s non-executive Chairman and Khadilkar will act as a special advisor with a focus on modelling, analytics, and technology.
Stanard commented: “The Ariel Re team, under the leadership of Ryan Mather, will implement our strategy for building a world-class manager of reinsurance risk. Together, Ariel Re and SPA 6133 will bring significant fresh capital into the marketplace and enable us to act quickly.”
Eric Rahe, Managing Director of J.C. Flowers, added: “We look forward to partnering with the Ariel Re team, building on their outstanding track record and taking advantage of the exciting opportunities in the P&C market today.”