Ariel Re becomes first sponsor to use London Bridge 2
Bermuda-based reinsurer Ariel Re has secured $270 million of capital from five new institutional and family office investors to support growth opportunities in 2023. The company said that existing backers Pelican Ventures and JC Flowers & Co also have “meaningfully increased” their underwriting capital commitments.
As part of this capital raise, Ariel Re secured $170 million through London Bridge 2 PCC, becoming the first sponsor to raise capital through the structure. Launched by Lloyd’s in August 2022, the protected cell company was designed to reduce complexity and give greater flexibility for global investors to participate in the Lloyd’s market.
“Burkhard Keese, chief financial officer and chief operating officer of 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.”
“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.
Ariel Re underwrites five focused lines of business – property catastrophe, cyber, marine and specialty, professional lines and clean energy – through its Lloyd’s platform, Syndicate 1910.
“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," said Mather. "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.”
