In its ongoing bid to raise capital, The Phoenix Cos. announced today the sale of its private-placement insurance business to a private equity firm.
The Hartford provider of insurance and financial services is selling PFG Holdings Inc., and its subsidiaries — Philadelphia Financial Group and AGL Life Assurance Co. — to Tiptree Financial Partners.
Financial terms of the deal were not immediately available.
“This sale of our private placement business is part of our strategic repositioning to focus on the markets and products where we have the greatest potential for sustainable growth in addition to strengthening our capital position,” said James D. Wehr, Phoenix’s president and chief executive officer.
Formed in 2007, Tiptree is owned by major financial institutions including JP Morgan, Bank of America and UBS. Tiptree invests in financial businesses as well as performing and distressed credit securities, the Phoenix said.
The deal, subject to regulatory approvals, is due to close in the second quarter.
This is the latest in a recent series of capital- and revenue-enhancing moves for The Phoenix as it tries to reverse steep losses in its operations.
In November, it signed up with reinsurer Swiss Re to hedge a small block of in-force life insurance, and inked a pact to provide life-insurance consulting services to Edward Jones.
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