BTG Pactual and Global Atlantic have announced the signing of an agreement whereby BTG Pactual will acquire Ariel Re, Global Atlantic’s Bermuda-based property and casualty reinsurance company.
The transaction, which includes all of the operating entities, assets and obligations of Ariel Re, is still subject to customary regulatory approvals. The purchase price has not been disclosed.
BTG Pactual is looking to make Ariel Re the cornerstone of its international reinsurance venture, which builds on the success of its London-based reinsurance principal investment business and establishes a permanent presence in the industry.
Ariel Re, which has offices in Bermuda and London, will still operate under the Ariel Re brand name and identity, and will continue to operate its Lloyd’s of London syndicate and retain access to Lloyd’s security ratings.
The transaction will be seamless for brokers and customers, according to BTG Pactual, and will provide Ariel Re and its talented team of insurance and reinsurance professionals the opportunity to continue their record of growth and underwriting performance into the future.
“Ariel Re is an exceptional business with a strong track record, experienced people, market-leading technology and an innovative structure, including a Lloyd’s syndicate. While current market conditions are clearly challenging, the opportunity to buy a best-in-class business with proven risk-discipline was too good to miss, as it offers an exceptional opportunity to expand our presence in the P&C industry outside of our local market.” says Andre Esteves, CEO of BTG Pactual.
Going forward, Global Atlantic, founded at Goldman Sachs in 2004, will concentrate its strategic focus on growing its life and annuity business. With over $30 billion in assets, the company will continue to innovate and develop a compelling, diversified mix of insurance and reinsurance offerings tailored to the evolving needs of today’s consumers and institutional customers.
“As markets and our strategy have evolved over the past year, we determined that the best path forward for each of the company’s business units from a strategic perspective was to operate and invest in them separately,” says Allan Levine, CEO of Global Atlantic. “With this transaction, both the Property & Casualty and Life & Annuity businesses are well-positioned for success with a more concentrated focus on their individual long-term strategies and objectives.”
BTG Pactual, Ariel Re, Global Atlantic, Goldman Sachs, P&C, M&A