Argo Group has agreed to sell Ariel Re to private equity investors, Pelican Ventures and J.C. Flowers and Co, with the closing of the transaction expected to occur in 2020.
Under the terms of the agreement, the buying group’s corporate members will provide Ariel Re’s capital for the 2021 year of account, and Argo group has agreed to retain historical reserves.
Argo CEO Kevin J. Rehnberg stated that Ariel Re is “well known” in the reinsurance market, and he is “confident” the business will thrive as part of Pelican Ventures, in addition, he added the proposed sale aligns with the company strategy to “simplify the business and streamline operations.”
Pelican Ventures co-founder Jim Stanard 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.”
He added, “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.”