National Indemnity Company (NICO), part of Warren Buffett’s insurance and reinsurance firm Berkshire Hathaway, has expanded its strategic alignment with reinsurer Ariel Re through an investment and multi-year quota share agreement.
NICO has both invested in Ariel Re Convertible Notes and extended its underwriting commitment to Ariel Re’s Syndicate 1910 at Lloyd’s via a multi-year quota share reinsurance arrangement.
Ariel Re is a provider of insurance and reinsurance solutions from its offices across Bermuda, London, and Hong Kong, operating principally through its Lloyd’s platform.
The company was acquired from Argo Group International Holdings by private equity investors, Pelican Ventures and J.C. Flowers & Co., in 2020.
It’s expected that this expanded strategic alignment with Berkshire Hathaway’s NICO will enhance Ariel Re’s capabilities to the benefit of its clients and distribution partners, with innovative and consistent reinsurance solutions.
Jim Stanard, Chairman of Ariel Re, commented: “This long-term strategic partnership with the Berkshire Hathaway Reinsurance Division will add tremendous value to Ariel Re and our ability to continue investing, innovating and enhancing our client product solutions and services.
“We plan for Berkshire Hathaway to be our long-term, cornerstone strategic partner as we build and expand Ariel Re’s underwriting capacity with other high-quality, long-term partners.”
Eric Rahe, Managing Director and Co-President of J.C. Flowers & Co., added: “We are extremely pleased to have a partner of Berkshire Hathaway’s caliber and reinsurance insight endorse the Ariel Re team.”
And Ryan Mather, Ariel Re’s Chief Executive Officer (CEO), said: “We have welcomed the opportunity to work with the Berkshire Hathaway Reinsurance Division team over this past year as a key partner and capital provider.
“Their insights on global macro trends and creative solutions have been very valuable to us and we look forward to working with them for years to come.”