Bermudian insurer and reinsurer Argo Group has closed the acquisition of fellow island firm Ariel Re.

Agreement on the $235 million deal was announced last November.

And today Argo also announced that Ryan Mather, former Ariel Re chief executive officer, will serve as Argo’s global head of reinsurance leading all reinsurance operations.

“Ariel Re and Argo Group are a terrific fit — operationally and culturally,” Mark Watson, CEO of Argo Group said. “Ryan’s leadership and collaboration were key factors in our ability to finalise this agreement and begin implementing the company’s integration plan so swiftly. This is reflective of the teamwork and outstanding results we expect to see in the future.”

Mr Mather’s organisation will retain the Ariel Re brand as a member of Argo Group, and he will report directly to Jose Hernandez, head of Argo’s international business.

Ariel Re was jointly owned by Banco BTG Pactual SA and the Abu Dhabi Investment Council. The company underwrites a global portfolio of insurance and reinsurance business through Lloyd’s Syndicate 1910.

Ariel Re employs around 100 people and has offices in Victoria Place, Hamilton.

In November a spokesman for Argo told this newspaper that job cuts were not high on the agenda for the combined company.

He said: “Cost savings were not a major driver in the rationale for the acquisition of Ariel Re, rather we are excited about bringing two significantly complementary businesses together.

“Both teams will have a significant role to play in bringing our platforms together for the benefit of our customers.”

The reinsurance arm of Argo, whose headquarters is in Pitts Bay Road, will combine with Ariel Re.

In November, Mr Watson said that the acquisition was part of Argo Group’s bid to build scale in its London and Bermudian platforms by adding complementary lines of special business.

Argo said the combined company will have “a well-balanced portfolio mix” of about 88 per insurance and 12 per cent reinsurance.