Phoenix Cos. sells private placement insurance business PFG Holdings to Tiptree Financial
By APWednesday, January 6, 2010
Phoenix Cos. sells PFG Holdings to Tiptree
HARTFORD, Conn. — The Phoenix Companies Inc. said on Wednesday it agreed to sell its private placement insurance business, PFG Holdings Inc., to Tiptree Financial Partners, a New York-based holding company.
The acquisition includes PFG Holdings and its subsidiaries, Philadelphia Financial Group Inc. and AGL Life Assurance Co.
Terms of the transaction were not immediately released. It is expected to close in the second quarter.
PFG’s existing management will continue with the company.
The sale is part of Phoenix Companies’ plan to focus on markets and products with the greatest growth potential and to strengthen the company’s capital position, CEO James D. Wehr said in a statement.
PFG Holdings develops and administers private placement insurance and annuities for ultra-high net worth and institutional clients.
Tiptree Financial invests in financial businesses and buys performing and distressed credit assets. It is primarily owned by a diverse group of major financial institutions and is managed by New York-based Tricadia Capital, a registered investment adviser founded by Michael Barnes and Arif Inayatullah in 2003.
Shares of Phoenix Cos. fell 6 cents, or 2 percent, to $2.78 in afternoon trading.
