LONDON--(BUSINESS WIRE)--Ariel Re, a global reinsurance business with offices in Bermuda, London and Hong Kong, has announced it has secured $270 million of capital from five new institutional and family office investors to support exciting growth opportunities in 2023.
Ariel Re is backed by Pelican Ventures and JC Flowers & Co and underwrites five focused lines of business - property catastrophe, cyber, marine and specialty, professional lines and clean energy - through its Lloyd’s platform, Syndicate 1910. In addition to the new investors’ capital, Pelican Ventures and JC Flowers have meaningfully increased their underwriting capital commitments to support Ariel Re’s growth.
In August 2022, Lloyd’s launched London Bridge 2 PCC Ltd. (LB2), a protected cell company, established to reduce complexity and give greater flexibility for global investors to participate in the Lloyd’s market. As part of this capital raise, Ariel Re secured $170 million through LB2 – becoming the first sponsor to raise capital through the LB2 structure.
“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,” said Ryan Mather, Chief Executive Officer at Ariel Re. “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 of London, 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, the capital markets arm of reinsurance broker Howden Tiger, acted as exclusive financial advisor to Ariel Re. 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.
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About Ariel Re:
Ariel Re offers innovative insurance and reinsurance solutions and services through our offices in Bermuda, London, and Hong Kong, meeting the business needs of a diverse client base. Ariel Re operates principally through Syndicate 1910 in London and also offers access to Lloyd’s Europe via Syndicate 5336.
Originally founded in 2005, Ariel Re was acquired by Pelican Ventures and J.C. Flowers in November 2020. The new owners provide Ariel Re with significant capital resources and a long track record of supporting successful, entrepreneurial businesses in the (re)insurance industry.
About Pelican Ventures:
Pelican Ventures is a private investment firm specializing in start-up and early-stage investments in the property and casualty (P&C) insurance industry. Our team collaborates closely with world-class executives to identify, develop, and grow the most promising insurance concepts into impactful and sustainable businesses. We leverage our expertise to identify the right product-market fit, optimize the allocation of human and financial capital, and provide ongoing operational advisory and support, allowing our portfolio companies to focus on scaling their operations and achieving long-term success.
About JC Flowers:
J.C. Flowers is a leading private investment firm dedicated to investing globally in the financial services industry. Founded in 1998, the firm has approximately $4 billion of assets under management. J.C. Flowers has offices in New York, London and Palm Beach with a 21-person investment staff who have a combined 300+ years of experience. Over its 25-year history, J.C. Flowers has invested more than $17 billion of capital in 65 portfolio companies in 18 countries across a range of industry subsectors including banking, insurance and reinsurance, securities firms, specialty finance, and services and asset management.
About Lloyd’s
Lloyd’s is the world’s leading marketplace for commercial, corporate and specialty risk solutions. Through the collective intelligence and expertise of the market’s underwriters and brokers, we’re sharing risk to create a braver world.
The Lloyd’s market offers the resources, capability, and insight to develop new and innovative products for customers in any industry, on any scale, in more than 200 territories.
We’re made up of more than 50 leading insurance companies, over 200 registered Lloyd’s brokers and a global network of over 4,000 local coverholders. Behind the Lloyd’s market is the Corporation: an independent organisation and regulator working to maintain the market's successful reputation and operation.
We’re working to build solutions for the most current and prevalent threats. As Chair of the Insurance Task Force for HM King Charles III’s Sustainable Markets Initiative, Lloyd’s is bringing the industry together to insure the transition to net zero. Our research community is pooling expertise from across the industry to provide cutting edge insight on systemic risks from climate change to cyber security.
And through our digital-led strategy, The Future at Lloyd’s, we’re making it easier and cheaper to place, price and process cover in the Lloyd’s market.
