HAMILTON, Bermuda - Global Atlantic Financial Group (Global Atlantic), a multiline insurance and reinsurance company, announced that it has entered into a definitive agreement to acquire Houston-based Forethought Financial Group, Inc. (Forethought), a financial services company with life insurance and annuity operations throughout the U.S. 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. 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.
"We believe the transaction will advance the growth strategies of both organizations,” said Allan Levine, chairman and CEO of Global Atlantic. “The combination of Global Atlantic’s Life and Annuity franchise with Forethought’s leading annuity distribution and preneed 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.”
“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,” said John Graf, CEO and chairman of Forethought. “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 L&A Business and will work with Allan 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.
About Global Atlantic
Global Atlantic is a multiline insurance and reinsurance holding company that operates in both Life & Annuity and Property & 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 & Annuity market by acquiring Commonwealth Annuity and Life Insurance Company (formerly Allmerica Financial) in 2005. At the close of this transaction, the Global Atlantic Life business, which provides innovative insurance, reinsurance and strategic solutions to the life & annuity industry, will have over $31 billion in assets. Global Atlantic entered the Property & Casualty business in 2005 and offers reinsurance and insurance through its syndicate at Lloyd’s of London operating under the Ariel Re brand. Global Atlantic separated from Goldman Sachs in April 2013.
Founded in 1985, Forethought Financial Group, Inc. (Forethought) is a privately-held, diversified financial services organization based in Houston, Texas, with insurance operations throughout the United States. Forethought 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 Company, which is the issuer of annuities. Variable annuities are underwritten and distributed by Forethought Distributors, LLC, member FINRA.