Ariel Re first Lloyd’s business to become signatory of SBAI

Bermuda-based multi-line reinsurer  Ariel Re has become the first non-ILS investment manager to become a Signatory of the Standards Board for Alternative Investments (SBAI).

Ariel Re operates through Lloyd’s, and once approved, the new Ariel Re Managing Agency (ARMA) will be a regulated entity governed by the Lloyd’s Market Oversight Framework.

The SBAI is an alliance of allocators and asset managers supported by over 250 institutional investors and investment managers, which has created an Alternative Investment Standards framework.

Following a review this year, the SBAI assessed that the Lloyd’s Market Oversight Framework aligns with its own high governance and fiduciary standards and opened the door for managing agents to become signatories to the Alternative Investment Standards. The Lloyd’s market is governed by the Corporation of Lloyd’s and regulated by the UK Prudential Regulatory Authority.

“As a Lloyd’s-centric reinsurance group that uses alternative sources of capital, we are delighted that the SBAI has accepted Ariel Re's application,” said Tim Shreeve (pictured), Head of Platform Development at Ariel Re. “The governance and disclosure standards at Lloyd’s align well with the SBAI’s standards designed for alternative investment management.”

Shreeve added: “We believe that our Signatory membership highlights Lloyd’s as an excellent place for investors to make capital allocations to insurance risk. It demonstrates that Lloyd’s has embedded fiduciary safeguards and is a compelling alternative to ILS investment manager fund structures.”

Lloyd’s CFO and COO Burkhard Keese, said: “This pioneering new approach from Ariel Re aligns well with one of the key deliverables of the Future at Lloyd’s Strategy; to enhance the accessibility of Lloyd’s for new investors. As well as confirming the similarity between the role of the managing agency and an alternative investments fund manager it reinforces the additional comfort that investors can gain from the oversight provided by the Corporation.”

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