The Blackstone Group, Texas Pacific Group and Thomas H. Lee Partners were among the leaders of the transaction.

Ariel joins nearly a dozen new competitors in the Bermuda market to take advantage of anticipated price hikes.

Their entry comes even as analysts are starting to question the depth and breadth of any market price firming.

Bear Stearns property-casualty analyst David Small sees net premiums written in the reinsurance market flat over the next year.

"It appears there has not been a widespread reallocation of capital from casualty to property, and we didn't hear of any broad-based pricing increases," Mr. Small wrote after visiting Bermuda reinsurers and brokers.

He added that the start-ups and several writers who were relatively unscathed by hurricanes or who raised deployable capital are significantly increasing their property appetite hoping to capitalize on the lower catastrophe tolerance of their competitors.

"These underwriters should show the best book value and ROE growth if the wind doesn't blow," he said.

While anticipating rate hikes, property reinsurers may see their appetites for new coverage lessened by higher capital requirements and a generally lower risk tolerance atmosphere, Mr. Small added.