Argo Group to Acquire Ariel Re for $235 Million

November 14, 2016

The proposed transaction will diversify Argo Group’s portfolio.

On November 14, Willkie client Argo Group International Holdings, Ltd., an international underwriter of specialty insurance and reinsurance products, announced that it has entered into an agreement to acquire Ariel Re, a global underwriter of insurance and reinsurance business, for approximately $235 million in cash. The proposed transaction provides Argo Group with added diversification, which improves the company’s ability to manage through changing market cycles. The acquisition is expected to be complete during the first quarter of 2017.

Argo Group International Holdings, Ltd. (NASDAQ: AGII) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of products and services designed to meet the unique coverage and claims handling needs of businesses in four primary segments: Excess & Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200.

Ariel Re is a (re)insurance company jointly owned by Banco BTG Pactual S.A. and the Abu Dhabi Investment Council. It underwrites a global portfolio of insurance and reinsurance business through Lloyd’s Syndicate 1910. Ariel Re’s book of business is well diversified by distribution, regional exposure and peril.

The Willkie deal team was led by partner Michael Groll and included partners Arthur Lynch and Jordan Messinger; UK partner Nicholas Bugler; associates Jason Koenig, Christina Castedo, Shinasa Wasimi, Meredith Levy, Meghan Hungate and Ryan Stott; and law clerk Preeta Reddy.