Phoenix Enters Into Reinsurance Agreement
The Phoenix Companies, Inc. (NYSE: PNX) today announced that its subsidiary, Phoenix Life Insurance Company, has entered into a reinsurance agreement placed by Nomura Reinsurance Intermediary, Inc. with its affiliated Guernsey incorporated cell company. The agreement provides coinsurance for approximately one-third of the company's closed block of participating life insurance policies. Detailed terms of the transaction were not disclosed.
The transaction enhances financial flexibility for Phoenix by reducing capital requirements. In addition, the company expects it to have a positive impact on Phoenix Life Insurance Company's year-end 2011 risk-based capital ratio of approximately 45 percentage points. The transaction will not affect the safety, performance, features or dividend potential of the policies within the closed block.
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