Bloomberg News

Goldman Sachs to Buy Ariel Reinsurance’s Bermuda-Based Business

March 01, 2012

Goldman Sachs Group Inc. (GS), the fifth- biggest U.S. bank by assets, agreed to buy Ariel Holdings Ltd.’s Bermuda-based insurance and reinsurance businesses to expand property and casualty coverage.

The businesses will become part of Goldman Sachs Reinsurance Group under the brand name Ariel Reinsurance, New York-based Goldman Sachs said today in a statement. Michael DuVally, a Goldman Sachs spokesman, declined to give the purchase price.

“The Ariel franchise adds scale, breadth and a deep talent pool from which to better serve our clients,” Tom Milligan, who serves as co-head of Goldman Sachs’s London-based property and casualty reinsurance business with April E. Galda, said in the statement.

Goldman Sachs Reinsurance Group, run by Allan S. Levine in New York, encompasses the property and casualty reinsurance business in London that will be combined with Ariel’s business as well as Southborough, Massachusetts-based Commonwealth Annuity and Life Insurance Company, DuVally said. The business is housed within Goldman Sachs’s sales and trading division, led by Isabelle Ealet, Pablo J. Salame and Harvey M. Schwartz.

The transaction doesn’t include Ariel Holding’s credit and surety business, which is run from Zurich, or the Atrium Underwriting Group, which is a specialist insurer and reinsurer at Lloyd’s, according to the statemen.

Ariel Reinsurance’s existing business will be reinsured by Goldman Sachs’s Lloyd’s Syndicate and most of the Bermuda-based staff will remain employed by the combined group, according to the statement. The deal is expected to be completed on April 1.

Ariel Holdings, a closely held company founded in 2005 and led by Chief Executive Officer George Rivaz, is owned by private- equity firms including Thomas H. Lee Partners LP, Oak Hill Capital Partners, Bain Capital LLC, and the Blackstone Group LP, according to its website. Rivaz, who succeeded Don Kramer as CEO in 2010, didn’t immediately return a call seeking comment.

To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.


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