Banco BTG Pactual has agreed to purchase Ariel Re, a Bermuda-based property and casualty (P&C) reinsurance company from Global Atlantic, for an undisclosed sum.
Under the terms of the agreement, the transaction will comprise all of the operating entities, assets and obligations of Ariel Re, and is expected to complete after customary regulatory approvals.
Building on the success of BTG Pactual’s London-based reinsurance principal investment business, Ariel Re will be the cornerstone of its global reinsurance venture, according to the acquirer.
With offices in Bermuda and London, Ariel Re will continue to operate its Lloyd’s of London syndicate and retain access to Lloyds security ratings.
Commenting on the acquisition, BTG Pactual CEO Andre Esteves said: "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."
Upon completion of the transaction, Ariel Re will continue to operate under the Ariel Re brand name and identity.
Global Atlantic, which has more than $30bn in assets, noted that it will focus on the strategic growth of its life and annuity business.
Further, it will continue to develop a compelling, diversified mix of insurance and reinsurance offerings designed to meet the growing needs of consumers and institutional customers.
Global Atlantic CEO Allan Levine said: "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."
A multi-line insurance and reinsurance firm, Global Atlantic through its Forethought and Accordia Life subsidiaries markets annuities and life insurance products across the US.
With over 2,800 employees, BTG Pactual manages offices across Latin America, the US, the UK, Singapore and Hong Kong.
Image: BTG Pactual agrees to acquire Ariel Re from Global Atlantic Financial. Photo :courtesy of adamr/freedigitalphotos.net.