Ariel Re secures Berkshire Hathaway backing to fuel expansion

Multi-line reinsurer  Ariel Re has secured a strategic growth investment and long-term underwriting commitment from Warren Buffett’s  Berkshire Hathaway.

Berkshire Hathaway’s wholly-owned subsidiary National Indemnity Company (NICO) has invested in new Ariel Re Convertible Notes and has extended its underwriting commitment to Ariel Re’s Syndicate 1910 through a multi-year quota share agreement.

Ariel Re hopes the expanded strategic alignment will enhance Ariel Re’s ability to provide its clients and distribution partners with innovative and consistent reinsurance solutions.

Jim Stanard (pictured), Chairman of Ariel Re, said: “This long-term strategic partnership with the Berkshire Hathaway Reinsurance Division will add tremendous value to Ariel Re and our ability to continue investing, innovating and enhancing our client product solutions and services.

“We plan for Berkshire Hathaway to be our long-term, cornerstone strategic partner as we build and expand Ariel Re’s underwriting capacity with other high-quality, long-term partners.”

Eric Rahe, managing director and co-president of JC Flowers & Co., added: “We are extremely pleased to have a partner of Berkshire Hathaway’s caliber and reinsurance insight endorse the Ariel Re team.”

Ryan Mather, Ariel Re’s chief executive officer, said: “We have welcomed the opportunity to work with the Berkshire Hathaway Reinsurance Division team over this past year as a key partner and capital provider. Their insights on global macro trends and creative solutions have been very valuable to us and we look forward to working with them for years to come.”

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