Global Atlantic Study Highlights Shifting Financial Priorities and the Need for Planning Amid Pandemic

New research from Global Atlantic Financial Group found that more than eight out of ten Americans (83%) say making sure their loved ones are financially protected is important to them right now, yet two in five (43%) have no life insurance and only one third (33%) believe they have enough life insurance or other assets to protect their family in the event of their own death.

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The “Perceptions of Life Insurance During a Pandemic” study was conducted in August by Artemis Strategy Group on behalf of Global Atlantic, among 1,065 American adults to examine their views on life insurance, estate planning and shifting financial priorities.

Aside from contracting Covid-19 personally or having a family member or close friend contract the virus, the top concern among those surveyed was to ensure their family’s financial wellbeing.

A full two thirds (67%) of Americans say the Covid-19 pandemic has made them think about their own mortality, while seven in ten (69%) have reassessed at least one financial aspect of their life during the pandemic. These areas include their emergency savings situation (54% have reassessed), long-term savings and investments (49%), employment situation (39%), and life insurance (28%).

When asked how many years of income they would replace with life insurance in the event of an early death, nearly six out of ten (57%) said at least two years. More than half of those with $150K or more in household income would replace five or more years of income (54%).

Only one third of Americans had a will in place before the pandemic, but nearly three out of ten either made changes to it during the pandemic,

White Mountains Insurance Group (NYSE:WTM) entered into a definitive agreement to invest fresh capital in and to acquire a majority interest in Ark Insurance Holdings, ultimate parent company of Ark Syndicate Management.

White Mountains will contribute $605M of equity capital to Ark, at a pre-money valuation of $300M; also will purchase $41M of shares from existing owners.

Total post-closing capitalization will exceed $800M.

In 2021, White Mountains will commit to contribute up to an additional $200M of equity capital.

Transaction expected to close in January 2021 when White Mountains will own 72% (77% if additional $200M invested) of Ark on a basic shares outstanding basis; remaining will be owned by management rollover shareholders.

In the future, management rollover shareholders could earn additional shares in the company if and to the extent that White Mountains achieves certain multiple of invested capital return thresholds.

Ark is a leading Lloyd’s platform, managing underwriting of syndicates 4020 and 3902, well positioned to take advantage of the hardening market in property & casualty insurance; currently has ~$500M of stamp capacity.

Source Article

HAMILTON, Bermuda, Oct. 1, 2020 /PRNewswire/ — White Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that it has entered into a definitive agreement to invest fresh capital in and to acquire a majority interest in Ark Insurance Holdings Ltd, the ultimate parent company of Ark Syndicate Management Limited.

Ark is a leading Lloyd’s platform well positioned to take advantage of the hardening market in property & casualty insurance.  Founded in 2007 by Ian Beaton and Nick Bonnar, Ark manages the underwriting of syndicates 4020 and 3902 at Lloyd’s. The syndicates underwrite a diversified and balanced portfolio of reinsurance and insurance, including property, accident & health, energy, marine and political risks.  Ark currently has approximately $500 million of stamp capacity.  With White Mountains’ capital, Ark plans to grow its business substantially by (i) increasing aligned capacity at its Lloyd’s syndicates to 100%, (ii) increasing overall stamp capacity, (iii) converting Ark’s existing Bermuda reinsurance entity into a Class 4 reinsurer and (iv) hiring talented underwriters in the London and Bermuda markets.

Manning Rountree, CEO of White Mountains, said “Ian, Nick and the rest of the Ark team have built a high-quality insurance business that puts underwriting first.  We are delighted to partner with them, and we are excited about the market opportunity in front of us.”

Ian Beaton, CEO of Ark, said “We are delighted to have found the right capital partner in White Mountains, an institution with a long track record of successful insurance partnerships.  We look forward to a fruitful relationship.”

White Mountains will contribute $605 million of equity capital to Ark, at a pre-money valuation of $300 million and will also purchase $41 million of shares from existing owners.  White Mountains will commit to contribute up to an additional $200 million of equity capital to Ark