Global reinsurer Ariel Re has secured $270 million of capital from investors as it looks to take advantage of exciting growth opportunities in the year ahead.
The new capital was raised from five new institutional investors and family office investors, while existing backers Pelican Ventures and JC Flowers & Co have meaningfully increased their underwriting capital commitments to support Ariel Re’s growth.
The reinsurer underwrites property catastrophe, cyber, marine and specialty, professional lines, and clean energy, through its Lloyd’s Syndicate 1910 platform.
As part of this capital raise, Ariel Re explains that it secured $170 million through London Bridge 2 PCC Ltd. at Lloyd’s, making it the first sponsor to raise capital through the LB2 structure, which was launched last year.
Ryan Mather, Chief Executive Officer at Ariel Re, commented: “Given our proven expertise in lines of business undergoing significant change, such as property catastrophe and cyber, Ariel Re is well-positioned to help investors access what we believe to be very attractive underwriting opportunities.
“While many carriers are pulling out of these risks, we are able to grow backed by investors who understand the nuances of a cyclical reinsurance market. We are delighted that part of our new funding is the first successful example of investors coming to Lloyd’s via the innovative LB2 structure; it was more efficient than ever to deploy meaningful capacity in Syndicate 1910.”
Burkhard Keese, Chief Financial Officer and Chief Operating Officer, Lloyd’s, said: “I’m delighted that Ariel Re chose the LB2 structure to facilitate delivery of this new capital into the Lloyd’s market, a key deliverable of the Future at Lloyd’s strategy. We set the London Bridge PCC vehicle up to be as flexible and responsive as possible and with oversight of the UK’s PRA, we now believe we have an onshore UK structure that can rival any of the established offshore vehicles in other jurisdictions. We hope that Ariel Re will be the first of many to use LB2.”
Howden Tiger Capital Markets & Advisory acted as exclusive financial advisor to Ariel Re, while Willkie Farr & Gallagher LLP acted as Ariel Re’s exclusive legal advisor.
Hampden Agencies acted as Lloyd’s Members’ Agent for the 5 Corporate Members and Artex Capital Solutions provided the Insurance Management Services for the London Bridge 2 Cells involved in these transactions.
