White Mountains Insurance Group Ltd. said on Thursday that it has agreed to invest new capital in and acquire a 72% stake in Ark Insurance Holdings Ltd., the parent company of Lloyd & # 39 ;s of London insurer Ark Syndicate Management Ltd.
The deal comes when Ark, which has $ 500 million in stamp duty capacity, is ready to take advantage of the curing property's accident insurance market, the Bermuda-based insurance company said in a statement.
The transaction, which is expected to be completed in January 2021, will see the White Mountains contribute $ 605 million in equity to Ark, valued at $ 300 million, and purchase $ 41 million in shares from existing owners, the statement said.
The White Mountains will also commit to contributing up to an additional $ 200 million of share capital to Ark 2021
Total capital after completion of capitalization will exceed $ 800 million and rise to $ 1 billion if an additional $ 200 million is added in full, White Mount said.
At the close, the White Mountains will own 72% of Ark, or 77% if an additional $ 200 million is invested, in common stock, the statement said. The remaining shares will be owned by the management transfer owners.
In the future, shareholders may earn additional shares in the company if and to the extent that the White Mountains achieve a certain multiple of the return thresholds for invested capital, the statement said. ] With White Mountain's capital injection, Ark plans to increase its operations, increase its custom capacity at its Lloyds syndicate to 100%, increase its total stamp capacity and transform its existing Bermuda reinsurance unit into a Class 4 reinsurer.
It will also expand by hiring insurers in the markets of London and Bermuda, the statement said.
Ark was founded in 2007 by industry leaders Ian Beaton and Nick Bonnar and handles insurance for syndicates 4020 and 3902 at Lloyd & # 39 ;s. Catalog