Hoping to put a stop to its financial hemorrhaging, The Phoenix Companies has inked a deal to merge with a unit of a private equity-backed reinsurer.
At a meeting on Friday, Phoenix stockholders approved an agreement, dated Sept. 28, to merge with Davero Merger Sub Corp., a wholly owned subsidiary of Nassau Reinsurance Group Holdings L.P.
Valued at $217.2 million, the merger will make Phoenix Companies private. The Hartford-based financial services company traces its origins to 1851. At year-end 2011, Phoenix had about 600 employees.
Nassau Reinsurance Group was founded in 2015 by former executives of HRG Group and Fidelity & Guaranty Life with $750 million in seed money provided by Golden Gate Capital. With $15 billion of committed capital, the private investment firm has disclosed its intent to acquire both domestic and off-shore companies offering life insurance, annuities and long-term care insurance (LTCI) products.
In addition to Phoenix, Nassau purchased in October Universal American Corp.’s “traditional” insurance business (closed block of life, health and LTCI products). The traditional insurance business includes Universal American subsidiaries Constitution Life Insurance Company and The Pyramid Life Insurance Company, plus a portion of business written by American Progressive Life & Health Insurance Company of New York.