US life insurer The Phoenix
Companies (TPC) has sold its private placement insurance business –
PFG Holdings and subsidiaries Philadelphia Financial Group (PFG)
and AGL Life Assurance Company – to Tiptree Financial Partners for
an undisclosed sum.
The sale is part of TPC’s radical
restructuring programme.
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TPC president and CEO James D Wehr said: “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.
“Additionally, the sale strengthens our
capital position.”
TPC’s website called PFG a “market leader” in
the development and administration of private placement insurance
and annuity structures for ultra-high net worth clients.
PFG’s products are, according to the website,
“unique within the industry”, in that they provide the high net
worth client with institutionally priced, custom-designed
alternative investment structures utilising variable life insurance
or an individual or group variable annuity policy.
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By GlobalDataAGL Life Assurance “currently has several
billion dollars in separate account assets, derived exclusively
from private placement insurance and annuity premiums”, noted
TPC.
It added: “Because our insurance and annuity
products are offered on a private placement basis and are not
registered products, they cannot be marketed to the general public,
and are available only to appropriately qualified investors.
According to a report in the publication
Hartford Business Journal, Tiptree is owned by a number of
major financial institutions including JPMorgan, Bank of America
and UBS.
TPC is headquartered in Hartford,
Connecticut.
The sale comes after TPC’s recent weak
financial performance last year, and the loss in March 2009 of its
major distribution partners, State Farm and National Life
Group.
In the first nine months of 2009, TPC reported
annualised life insurance premium sales of $32.5 million, down from
$237.9 million for the same period in 2008.
