Argo Group International Holdings, an international underwriter of specialty insurance and reinsurance products, has announced an agreement to acquire Ariel Re, a global underwriter of insurance and reinsurance business, for approximately $235 million (£188 million). The acquisition is expected to be completed during the first quarter of 2017.
“Ariel Re is a terrific fit for Argo Group - operationally and culturally,” said Argo Group CEO Mark E. Watson III. “We remain focused on delivering enhanced shareholder value. This transaction enables us to build on the successes realized individually by Argo Group and Ariel Re, utilizing our combined strength to deploy capital in selected areas to produce maximum return and continued growth.”
Ariel Re will fall under the leadership of Jose A. Hernandez, head of Argo Group’s International business, according to Watson.
“This acquisition is part of Argo Group’s strategic initiative to build scale in its London- and Bermuda-based platforms by adding complementary lines of specialty business,” he said. “After the acquisition, Argo Group will have a well-balanced portfolio mix of approximately 88% insurance and 12% reinsurance.”
The transaction will provide Argo Group with added diversification, improving the company’s ability to manage through changing market cycles, according to a news release. It will also provide access to Ariel Re’s unique modeling and risk analysis tools, enhancing Argo Group’s underwriting capabilities.
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