Phoenix Companies has signed a definitive agreement with Tiptree Financial Partners to sell its private placement insurance business PFG Holdings, including its subsidiaries, Philadelphia Financial Group and AGL Life Assurance Company.

James Wehr, president and chief executive officer of Phoenix, said: “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.”

Founded in 1996, PFG Holdings develops and administers private placement insurance and annuity structures for ultra-high net worth and institutional clients. The products provide investment structures using variable life insurance or an individual or group variable annuity policy.

John Hillman, president and chief executive officer of PFG Holdings, said: “We believe Tiptree is a good fit for us and that the transaction will enable PFG to enhance its leadership position in the private placement arena.”

Phoenix Companies provides financial solutions using life insurance and annuities, with expertise in the high-net-worth and affluent markets. The company had annual revenues of $2bn and total assets of $25.8bn.

However, the transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in the second quarter of 2010.