Passion Investing: Ultra High Net Worth Individuals Tend To Own Multiple Properties, Fine Art

Insurer AIG recently released the data from a study down by their AIG Private Client Group division. The study showed that ultra high net worth (UHNW) clients in the U.S. who pay $250,000 in annual personal insurance premiums tend to own multiple houses overseas, and invest in other passion investments such as art and jewelry.

The study showed that North and South America are the most popular locations for their foreign properties. This population owns nine homes overseas, on average. Mexico (14%), the Bahamas (13%), and the Caribbean (9%) are three of the top 5 locations for these properties, accounting for 36% of the overseas home count. France  (9%) and England (12%)  also figure prominently for European real estate investment. Overall, more than 50% of the homes owned by this group are in the Americas. Mexico has seen large growth in the second home market through the development of resort areas such the Los Cabos area of the Baja Peninsula. While once, Cabo San Lucas was the sole point of action, now other areas such as San Jose Del Cabo are seeing more lavish developments such as this home in the Cabo Colorado area showcased by Luxury Portfolio and listed for $2.595 million.

Outside of their spending in real estate, this segment of UHNW clients also has on average 19 regular use vehicles. Because of their global footprint their needs for multinational insurance are large and these clients on average have $1.7 million in jewelry insured and $19.6 million of fine art insured, proving that passion investments continue to represent a significant part of wealth for this segment. In addition to multinational property coverage, AIG Private Client Group also insures private collections and yachts as well as providing coverage for personal excess liability.

 

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