Leaders at Global Atlantic Financial Group, a multiline insurance and reinsurance company, announced Sept. 26 that it has entered into a definitive agreement to acquire Houston-based Forethought Financial Group Inc., a financial services company with life insurance and annuity operations throughout the U.S., including Batesville.
Forethought will continue to operate its life insurance and annuity businesses under the Forethought name. As a result, clients will experience a seamless transition and continuity of service, according to the news release.
The deal is expected to close early in 2014, subject to regulatory approval. Terms of the deal of the two privately-held companies were not disclosed.
Allan Levine, Global Atlantic chairman and CEO, said, “We believe the transaction will advance the growth strategies of both organizations. The combination of Global Atlantic’s life and annuity franchise with Forethought’s leading annuity distribution and pre-need business will further diversify our product mix and position us to provide a full range of innovative life and annuity solutions to our clients. With additional capital resources, Forethought can build on its recent success in the annuity market while also growing its position as a leader in pre-need insurance.”
John Graf, Forethought CEO and chairman, pointed out, “This is the next logical step for Forethought as it continues to build its annuity and pre-need franchise. Global Atlantic brings complementary strengths and deep resources to our existing business, which will create an even stronger platform for growth. This combination will create a seamless transition for our policyholders and distributors, and substantial opportunities for our employees.”
Upon close, Forethought will become a wholly-owned subsidiary of Global Atlantic, which will acquire all products and designs, distribution, marketing, intellectual capital and employed talent, as well as all in-force business. Levine will continue to oversee the combined company as chairman and CEO. Graf will join the board of Global Atlantic Financial Group and become non-executive Vice Chairman of the life and annuity business and will work with Levine and the management team on an overall strategy for the combined organization. Other key leaders of both Global Atlantic and Forethought’s management will remain in place.
Global Atlantic is a multiline insurance and reinsurance holding company that operates in life, annuity, property and casualty lines of business through subsidiaries in New York, Massachusetts, Bermuda, London and, following the close of its acquisition of the Aviva USA life business, Iowa. Global Atlantic was founded in 2004 at Goldman Sachs and entered the life and annuity market by acquiring Commonwealth Annuity and Life Insurance Co. (formerly Allmerica Financial) in 2005. At the close of this transaction, the Global Atlantic Life business will have over $31 billion in assets. Global Atlantic entered the property and casualty business in 2005 and offers reinsurance and insurance through its syndicate at Lloyd’s of London operating under the Ariel Re brand. The company separated from Goldman Sachs in April 2013.
Founded in 1985, Forethought Financial Group Inc., a privately-held, diversified financial services organization, provides life insurance and annuities that help America’s senior middle market plan for their pre-retirement, retirement and end-of-life needs through key distribution relationships. Experienced leadership and financial discipline underlie its strong growth and success in the marketplace. With a targeted strategy and multifaceted product lines, Forethought delivers enduring value to its customers, distribution partners and shareholders. Forethought is Forethought Financial Group Inc. and its subsidiaries, including Forethought Life Insurance Co., which is the issuer of annuities.