Pelican Ventures and J.C. Flowers Announce Acquisition of Ariel Re

Transaction Overview

On 11/2/2020, Pelican Ventures (“Pelican”) and J.C. Flowers & Co. (“JCF”) announced an agreement to acquire Ariel Re from Argo Group for an undisclosed sum

Ariel Re is a leading global reinsurance franchise operating through Lloyd’s Syndicate 1910

  • Writes a well-diversified catastrophe-driven portfolio with underwriting teams in London and Bermuda
    • £372mm of 2021 year of account capacity; focus on global property reinsurance and specialty lines
  • Consistent top-decile performer at Lloyd’s due to its portfolio construction and risk analysis capabilities
    • 10yr average return on capacity of 11.3% vs. 2.6% for the Lloyd’s market
  • Significant support from leading third-party capital providers

Pelican is a private investment fund with a sole focus on the insurance industry

  • Formed by industry veteran Jim Stanard, founder and former Chairman and CEO of RenaissanceRe

JCF is a private investment firm dedicated to investing globally in the financial services industry

  • Founded in 1998, the firm has invested more than $16bn of capital across 56 portfolio companies

Ryan Mather, Ariel Re’s former CEO, will return to run the business and manage underwriting

  • Ryan Mather was CEO of Ariel Re from 2016 to early 2020 and at Ariel Re since formation in 2005
  • Jim Stanard will be Non-Executive Chairman
  • Jayant Khadilkar will be Board Member and Advisor for Risk Management, Analytics and Technology

Transaction is subject to customary closing conditions including regulatory approvals

TigerRisk Capital Markets & Advisory Role

TCMA is acting as exclusive financial advisor to Pelican and JCF

  • Introduced key principals to transaction and each other including Pelican, JCF, and Ryan Mather
  • Assisting with financial modeling and valuation analysis
  • Assisting in multiple capital raising efforts (debt, Letter of Credit, third-party Funds at Lloyd’s)
  • Managing an organized and efficient due diligence process
  • Assisting in the negotiation of final transaction terms and conditions
  • Providing objective advice and acting as a confidant to the buyer throughout the process