BIRMINGHAM, Ala., March 6, 2023 – New Capital Partners (“NCP”) announced today that it has invested capital in support of Ariel Re, a premier specialty reinsurer which operates through Syndicate 1910 at Lloyd’s. NCP joins several institutional investors in contributing $270MM of new capital to support Ariel Re’s planned portfolio growth through 2023.
Originally founded in 2005, Ariel Re has a long record of outstanding performance, consistently outperforming both the Lloyd’s and Bermuda markets. Lloyd’s data shows Syndicate 1910 to be the third most profitable syndicate in the Lloyd’s market for the period 2011 to 2021. The Company underwrites property catastrophe, cyber, marine & specialty, professional lines and clean energy lines of business. Ariel Re was acquired by Pelican Ventures and J.C. Flowers in November of 2020.
Ariel Re secured $170MM of commitments via London Bridge 2 PCC Ltd. (“LB2”), a protected cell company created by Lloyd’s to minimize complexity and maximize flexibility for investors. Ariel Re was the first sponsor to raise capital through the LB2 structure.
“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. “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. 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.”
Jim Little, Managing Partner of New Capital Partners, said, “We are pleased to be supporting and working with the team at Ariel Re. Ariel Re has an excellent underwriting track record and we believe the current market conditions present an excellent opportunity.”
Over its 20-year history, New Capital Partners has invested in several property insurance platforms including active portfolio company GeoVera Insurance, and exited investment American Strategic Insurance, which was sold to The Progressive Corporation, NYSE: PRG.
About New Capital Partners
New Capital Partners (NCP) is a private equity firm comprised of former operators headquartered in Birmingham, Ala. NCP makes investments in niche, tech-enabled services companies in the healthcare, financial and business services industries. Leveraging its extensive operational experience, NCP helps create significant value in portfolio companies by cultivating true partnerships with management teams and focusing on one core goal: Building Great Companies.
For more information, visit: https://newcapitalpartners.com/
About Ariel Re
Ariel Re offers innovative insurance and reinsurance solutions and services through our offices in Bermuda, London, and Hong Kong, meeting the business needs of a diverse client base. Ariel Re operates principally through Syndicate 1910 in London and also offers access to Lloyd’s Europe via Syndicate 5336.
Originally founded in 2005, Ariel Re was acquired by Pelican Ventures and J.C. Flowers in November 2020. The new owners provide Ariel Re with significant capital resources and a long track record of supporting successful, entrepreneurial businesses in the (re)insurance industry.
For more information, visit: https://www.arielre.com/