The Phoenix Companies PNX 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.
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