Argo boosts third-party capital at Ariel Re

Bermuda-based Argo Group International Holdings has taken advantage of third-party capital for the risk portfolio of its recently acquired Ariel Re operations.

In connection with the full integration of the reinsurance business of Ariel Re that Argo acquired in 2017, the group changed the capital structure supporting that business in the beginning of 2018 by introducing certain third-party capital to participate in the exposures it underwrites, according to a company statement.

During the 2018 third quarter, approximately $53.4 million of gross written premiums are attributable to Argo’s third-party capital partners. There was no such structure for its Ariel Re business in 2017, the company noted.

This third-party capital receives a corresponding proportion of the gross written premiums and therefore reduced the reported gross written premiums.

In the international operations, gross written premiums in the 2018 third quarter were down 5.1 percent year on year at $357.2 million.

In exchange, Argo received certain remuneration for originating risks and for the underlying underwriting performance.

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