Argo Group International, an underwriter of specialty insurance and reinsurance products, has agreed to divest Ariel Re, its reinsurance business, to private equity investors Pelican Ventures and J.C. Flowers & Co.
The financial terms of the deal were not disclosed.
Kevin J. Rehnberg – Argo Group International CEO said: “Ariel Re is well known in the reinsurance market, and we are confident the business will thrive as part of Pelican Ventures.
Argo Group International CEO added: “Argo Group will continue to focus on specialty insurance lines of business that we expect will result in profitable growth and improved shareholder value.
“This transaction aligns with our strategy to simplify the business and streamline operations.”
As per the terms of the deal, the corporate member of the buying group will provide the capital of Ariel Re for the 2021 year of account, while Argo Group will retain historical reserves.
Jim Stanard – Pelican Ventures Co-Founder said: “Pelican Ventures is excited to be investing in Ariel Re and bringing on board talented professionals with unparalleled reinsurance market underwriting expertise and risk management analysis skills.
“With the financial strength and insights of our new ownership group and under the leadership of Ryan Mather, we will pursue our ambition of building a world-class manager of (re)insurance risk.”
The deal, which is subject to regulatory approval, is likely to be wrapped up this year.
Argo Group to sell Ariel Re to Pelican Ventures and J.C. Flowers added by Pallavi Madhiraju on
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