Buffett and Stanard in long-term partnership
Bermudian-based multi-line specialty reinsurer Ariel Re has expanded its relationship with Berkshire Hathaway Inc, the multinational conglomerate led by billionaire chairman Warren Buffett.
In separate transactions, Omaha-based Berkshire Hathaway’s wholly-owned subsidiary, National Indemnity Company, has invested in new Ariel Re convertible notes and has extended its underwriting commitment to Ariel Re’s Syndicate 1910 through a multiyear quota share agreement.
The company said this expanded strategic alignment will enhance Ariel Re’s ability to provide its clients and distribution partners with innovative and consistent reinsurance solutions.
Jim Stanard, 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.”
Ariel Re was acquired by Pelican Ventures and J.C. Flowers & Co in November 2020.
Eric Rahe, managing director and co-president of J.C. Flowers, added: “We are extremely pleased to have a partner of Berkshire Hathaway’s calibre 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.”
Based in Bermuda, Ariel Re also has offices in London and Hong Kong.
Ariel Re operates principally through Syndicate 1910 in London and also offers access to Lloyd’s Europe via Syndicate 5336.
Berkshire Hathaway has been led for more than 50 years by Mr Buffett, the “Oracle of Omaha”.
The company and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retaining and services.