Argo Group finalises sale of Ariel Re

Argo Group, an underwriter of specialty insurance products, has finalised its sale of the global underwriter of re/insurance business, Ariel Re, for a sum of £22.5m.

Pelican Ventures and J.C. Flowers, a private investment and equity firm respectively, will take over all responsibility for Ariel Re in 2021.

As part of the deal, Argo will continue to handle the firm’s operations for the remainder of 2020.

Kevin Rehnberg, CEO at Argo, said: “This is an important milestone for Argo Group as we simplify our operations – primarily as a US-focused specialty insurer.

“We are pleased to complete this transaction and appreciate the time and attention provided by Pelican Ventures and J.C. Flowers & Co., as well as the collaboration with our regulators.”

The transaction, which was first announced on 2 November, will be reported in Argo’s Q4 financial results.

Speaking during the first announcement of the sale, Rehnberg 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.”

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