Brazil’s largest investment bank buys Ariel Re

Brazil’s largest investment bank has unveiled plans to boost its presence in the global reinsurance industry through the acquisition of Ariel Re, Global Atlantic’s Bermuda-based property/casualty reinsurance company.

Banco BTG Pactual said that Ariel Re will become the cornerstone of its international reinsurance venture. It will build on the success of its London-based reinsurance principal investment business and establishes a permanent presence in the industry, the company said.

Ariel Re, which has offices in Bermuda and London, will continue to operate its Lloyd’s of London syndicate and retain access to Lloyd’s security ratings. The reinsurer will continue to operate under the Ariel Re brand name and identity.

Going forward, Global Atlantic said it will concentrate its strategic focus on growing its life and annuity business.

Andre Esteves, chief executive officer of BTG Pactual, 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.”

Allan Levine, CEO of Global Atlantic, said: “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 them separately. 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.”