The Pelican Ventures and JC Flowers & Co-backed reinsurer writes business on its Lloyd’s platform Syndicate 1910 and was one of the few players looking to grow at the mid-year US cat renewals.
It did so with the support of a new quota share and investment in January this year from Berkshire Hathaway, which it described as a “long-term cornerstone strategic partner”.
The quota share, which forms part of its FAL capital stack at Lloyd’s, is provided through Berkshire Hathaway’s National Indemnity Company subsidiary.
And during the Monte Carlo Rendez-Vous – where the expectation is that strong momentum on cat pricing especially in peak zones will continue at 1.1 – sources said that Ariel is out looking for further backing to address an increasingly attractive growth opportunity, primarily in the US market.
Details of the planned capital raise are not known, but sources said Ariel Re is one of the few reinsurers in the market looking to selectively grow its portfolio at the upcoming renewal and through 2023, when the capacity crunch in peak cat zones is likely to see an acceleration of rate increases.