An insurer wants to spin off its asset management arm.
Phoenix Companies Inc., Hartford, says it plans to distribute the stock of Phoenix Investment Partners to Phoenix shareholders and turn the unit into a stand-alone public company run by current president of the unit, George Aylward.
Phoenix Investment Partners generated $3.6 million in net income in 2007 on $215 million in revenue and $40 billion in assets under management.
Phoenix hopes to complete the spin-off by Sept. 30.
Phoenix intends to keep Goodwin Capital Advisers Inc, a division of Phoenix Investment Partners that manages general account assets for Phoenix.
The asset management unit spin-off announcement comes less than 2 weeks after Oliver Press Partners L.L.C., New York, an investment management firm, announced that it was starting a proxy fight in an effort to name 3 directors to the Phoenix board and force Phoenix to implement a variety of changes including the sale of the company’s non-insurance business.
Oliver Press also recommended that Phoenix cut compensation costs, review other costs and find ways to redeploy capital from its closed block of life insurance policies.