White Mountains and Ark have together decided to terminate a commitment to invest $200 million of additional capital into Ark, following White Mountains’ acquisition of the company last year.
Ark manages syndicates 4020 and 3902 at Lloyd’s, which underwrite a mix of reinsurance and insurance business, including property, accident & health, energy, marine and political risks.
White Mountains took a majority stake in Ark after contributing $605 million of equity capital capital to the company at a pre-money valuation of $300 million, and later purchased $41 million of shares from existing owners.
At the time the acquisition was confirmed, the firms also agreed that White Mountains would contribute an additional $200 million of equity capital to Ark in 2021, but this commitment has now been terminated, it has been revealed.
The decision to terminate the investment was announced alongside the issuance of $70.0 million of floating rate subordinated notes by Ark.
The notes, due in 2041, were issued via a private placement and qualify as Tier 2 capital under Bermuda’s solvency capital regime. They come in addition to the previously disclosed €39.1 million of notes issued on July 13, 2021 and the $47.0 million of notes issued on August 11, 2021.