Argo Group International has finalised an agreement to sell its reinsurance business Ariel Re  to Pelican Ventures and J.C. Flowers for an unknown sum.

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

The deal will mark the group’s exit from reinsurance business. The company now intends to focus on specialty insurance lines.

Argo Group CEO Kevin Rehnberg said: “Ariel Re is well known in the reinsurance market, and we are confident the business will thrive as part of Pelican Ventures.

“Argo Group will continue to focus on specialty insurance lines of business that we expect will result in profitable growth and improved shareholder value.

“This transaction aligns with our strategy to simplify the business and streamline operations.”

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In concurrent with the agreement, the buying group’s corporate member will offer Ariel Re’s capital for the 2021 year of account, while  Argo Group will retain historical reserves.

Pelican Ventures co-founder Jim Standard said: “Pelican Ventures is excited to be investing in Ariel Re and bringing on board talented professionals with unparalleled reinsurance market underwriting expertise and risk management analysis skills.

“With the financial strength and insights of our new ownership group and under the leadership of Ryan Mather, we will pursue our ambition of building a world-class manager of (re)insurance risk.”

The closing of the deal is subject to regulatory approval and is expected to occur this year itself.

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