Phoenix To Sell Broker-Dealer Units,
Focus On Manufacturing
As part of an effort to regain profitability, the Phoenix Companies Inc. has agreed to sell its retail broker-dealer operations to Linsco/Private Ledger Financial Services.
The companies expect to close the deal around June 1. Financial terms were not disclosed.
The deal calls for the reassignment to LPL of 725 advisors affiliated with Phoenix broker-dealer WS Griffith Securities Inc. and 270 professionals with its other retail unit, Main Street Management Company.
Dona D. Young, chairman, president and CEO of Phoenix, in Hartford, calls the move “a significant step to improving our profitability.”
Following a series of losses, Phoenix cut jobs last year, shutting down its Hollister Investment Management division. By year-end, it recovered somewhat, reporting a $3 million net loss on around $699 million in revenue in the fourth quarter, compared to a loss of around $15 million on $611 million in revenue in fourth quarter 2002.
The action essentially completes Youngs conversion of Phoenix into a pure manufacturer of products and services for affluent individuals. Getting out of the distribution end will help Phoenix expand its life, annuity and asset management product offerings, Young says.