To strengthen the capital position
The Phoenix Companies, a Connecticut-based provider of financial solutions using life insurance and annuities, has entered into a reinsurance agreement with Reassure America Life Insurance, a subsidiary of Swiss Re, for a small block of in-force life insurance. However, the term of the transaction were not disclosed.
James Wehr, president and CEO of Phoenix, said: “Maintaining a healthy balance sheet is the number one prerequisite for stabilizing the company and moving to profitable growth. This reinsurance transaction, the first of several we are pursuing, helps achieve that by strengthening our capital position and RBC.”
Phoenix had previously said that it is targeting a year-end RBC (risk-based capital ratio) of 300% and that it is focused on reinsurance options, optimizing internal capital management and reducing risk as primary ways to realize improvement.