Phoenix to Buy Back Up to $25M Shares

The Phoenix Companies

today announced capital management actions that combine debt and share repurchases and are expected to reduce the company's leverage while increasing book value per share (BVPS), earnings per share (EPS) and return on equity (ROE). “As set forth in our strategy, we have been growing capital organically since the beginning of 2010. We determined that the time is right to redeploy some of it now to enhance the company's financial position while continuing to maintain a prudent capital cushion for adverse events and to support profitable growth,” said James D. Wehr, president and chief executive officer. On September 21, 2012, Phoenix's principal operating subsidiary, Phoenix Life Insurance Company, repurchased $48.3 million par amount of its outstanding 7.15% surplus notes due 2034 for aggregate consideration of $36.2 million. The repurchase is expected to reduce Phoenix's debt-to-total-capital ratio by approximately 2.5 percentage points in the third quarter of 2012 and reduce annual interest expense by approximately $3.5 million, which will enhance EPS and ROE.