LONDON- The exciting development potential in 2023 will be supported by USD 270 million in capital from a total of five new institutional and family office investors, according to Ariel Re, a global reinsurance company with offices in Bermuda, London, and Hong Kong.
With its Lloyd’s platform, Syndicate 1910, Ariel Re, financed by Pelican Ventures and JC Flowers & Co, underwrites five specialized areas of business: property catastrophe, cyber, maritime and specialty, professional lines, and sustainable energy. Pelican Ventures and JC Flowers have significantly boosted their underwriting capital commitments to support Ariel Re’s expansion in addition to the cash from the new investors.
London Bridge 2 PCC Ltd. (LB2), a protected cell company, was founded by Lloyd’s in August 2022 to streamline the process and enhance the flexibility of participation for international investors in Lloyd’s market. Ariel Re obtained $170 million using LB2 as part of its capital raising, making it the first sponsor to raise money using the LB2 framework.
Ariel Re is well-positioned to assist investors in accessing what, in our opinion, are beautiful underwriting opportunities given our demonstrated expertise in lines of business undergoing significant change, such as property catastrophe and cyber, according to Ryan Mather, chief executive officer of Ariel Re. “Although many carriers are avoiding these risks, we can continue to expand since our investors know the complexities of a cyclical reinsurance market. We are thrilled that the first successful instance of investors coming to Lloyd’s through the ground-breaking LB2 structure is a portion of our new funding; it was more accessible than ever to use significant capacity in Syndicate 1910.
“I’m happy that Ariel Re chose the LB2 structure to allow delivery of this additional capital into Lloyd’s market, a major deliverable of the Future at Lloyd’s plan,” said Burkhard Keese, Chief Financial Officer and Chief Operational Officer, Lloyd’s of London. With oversight from the UK’s PRA, we now have an onshore UK structure that can compete with any of the established offshore vehicles in other countries since the London Bridge PCC vehicle was designed to be as flexible and adaptable as possible. We anticipate Ariel Re will be just one of many who use LB2.
With its offices in Bermuda, London, and Hong Kong, Ariel Re provides cutting-edge insurance and reinsurance products and services that address the commercial demands of a wide range of clients. Ariel Re mainly uses Syndicate 1910 in London, while Syndicate 5336 provides access to Lloyd’s Europe.
Ariel Re was established in 2005 and was bought out in November 2020 by Pelican Ventures and J.C. Flowers. With the help of the new owners, Ariel Re now has access to substantial cash resources and a lengthy history of successful, entrepreneurial company assistance.
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