Bermuda-based specialty underwriter Argo Group International Holdings has wrapped the sale of its reassurance business Ariel Re to private equity investors Pelican Ventures and JC Flowers.

The deal, which was first announced earlier this month, marks the group’s exit from the reinsurance space.

Under the terms of the agreement, Argo received $30m at the closing of the transaction.

Pelican Ventures and affiliates will offer Ariel Re’s capital for the 2021 year of account while Argo will retain responsibility for all years 2020 and prior, it said in a statement.

The move to offload Ariel Re was part of the company’s strategy to restructure its business to fully focus on its specialty insurance lines.

Argo Group CEO Kevin Rehnberg said: “This is an important milestone for Argo Group as we simplify our operations – primarily as a US-focused specialty insurer.

“We are pleased to complete this transaction and appreciate the time and attention provided by Pelican Ventures and JC Flowers & Co., as well as the collaboration with our regulators.”

Ariel Re, which operates through Lloyd’s Syndicate 1910, underwrites property and casualty reinsurance. It was purchased by Argo in February 2017.

Argo underwrites specialty insurance products in the property and casualty market.

In February this year, Argo Group agreed to sell its Trident Public Risk Solutions brand and underwriting platform to Paragon Insurance Holdings.

Last year, ArgoGlobal, a member of Argo Group, announced that its Syndicate 1200 will shut underwriting operations in Asia and quit the majority of hull underwriting business within the syndicate.