Nassau Reinsurance Group Holdings has completed the acquisition of US-based The Phoenix Companies, for around $217m.
The deal has been closed after securing insurance regulatory approvals from the Connecticut Insurance Department and the New York State Department of Financial Services.
Under the deal, Nassau Re provided $100m new equity capital to the Phoenix.
The company also injected $80m of new equity capital to its reinsurance affiliate related to a reinsurance agreement between this affiliate and PHL Variable Insurance, one of Phoenix’s operating subsidiaries.
As a Nassau Re’s wholly-owned subsidiary, the Phoenix serves its US life and annuity platform.
Phoenix’s distribution subsidiary Saybrus Partners has also become a subsidiary of Nassau Re.
Based in Hartford of Connecticut, Phoenix includes two insurance operating subsidiaries such as Phoenix Life Insurance and PHL Variable Insurance.
Phoenix Life Insurance has its statutory home office in East Greenbush of New York, while PHL Variable Insurance includes its statutory home office in Hartford.
Phoenix provides products and services developed to meet the financial needs of the middle income and mass affluent markets.
Nassau Re’s CEO Phillip Gass will also acts as Phoenix’s CEO, while Phoenix’s president and CEO James Wehr will retire on 1 July.
Gass said: "The acquisition of Phoenix represents an important milestone for Nassau Re as we build our U.S. life and annuity business.
"As a private company, with substantial new equity capital and the execution of the reinsurance agreement, Phoenix has greatly improved its capital adequacy and liquidity. We believe this will accelerate its turnaround."
Image: Phoenix’s headquarters in Hartford, Connecticut. Photo: courtesy of John Phelan.