As part of a strategy to strengthen its capital base, The Phoenix Cos. Inc. said it has signed a reinsurance agreement to share the risk on a "small block" of its life insurance business — and is pursuing several other similar pacts.
"Maintaining a healthy balance sheet is the No. 1 prerequisite for stabilizing the company and moving to profitable growth," said James D. Wehr, president and chief executive officer of the Hartford-based insurer.
The agreement with Reassure America Life Insurance Co., a subsidiary of reinsurance giant Swiss Re, allows Phoenix to help protect its capital from losses. But the agreement also means it must share the profits on the policies.
Last week, Phoenix reported a net loss from operations of $2.8 million, or 2 cents a share, in the third quarter but stressed progress in its turnaround as it formed its own distribution company and had a consulting agreement with the financial firm Edward Jones.
Separately, Phoenix said it has cut the size of its board of directors, now that it has spun off its asset management business.
The board has shrunk to 11 members from 15in line with the company's overall focus on cutting expenses, the Hartford-based insurer said.
The four board members, who left, all voluntarily, are:
• Sal H. Alfiero, former chairman and chief executive, Protective Industries LLC.
• Jean S. Blackwell, executive vice president of corporate responsibility at Cummins Inc.
• Peter C. Browning, former dean of the McColl Graduate School of Business, Queens University of Charlotte.
• John E. Haire, chairman and chief executive of Parade Publications.
The decision to reduce the size of the board also was affected by a change in New York state insurance law that allowed Phoenix to reduce the minimum number of board members on its principal insurance subsidiary from 13 to seven.
"Maintaining a healthy balance sheet is the No. 1 prerequisite for stabilizing the company and moving to profitable growth," said James D. Wehr, president and chief executive officer of the Hartford-based insurer.
The agreement with Reassure America Life Insurance Co., a subsidiary of reinsurance giant Swiss Re, allows Phoenix to help protect its capital from losses. But the agreement also means it must share the profits on the policies.
Last week, Phoenix reported a net loss from operations of $2.8 million, or 2 cents a share, in the third quarter but stressed progress in its turnaround as it formed its own distribution company and had a consulting agreement with the financial firm Edward Jones.
Separately, Phoenix said it has cut the size of its board of directors, now that it has spun off its asset management business.
The board has shrunk to 11 members from 15in line with the company's overall focus on cutting expenses, the Hartford-based insurer said.
The four board members, who left, all voluntarily, are:
• Sal H. Alfiero, former chairman and chief executive, Protective Industries LLC.
• Jean S. Blackwell, executive vice president of corporate responsibility at Cummins Inc.
• Peter C. Browning, former dean of the McColl Graduate School of Business, Queens University of Charlotte.
• John E. Haire, chairman and chief executive of Parade Publications.
The decision to reduce the size of the board also was affected by a change in New York state insurance law that allowed Phoenix to reduce the minimum number of board members on its principal insurance subsidiary from 13 to seven.
These "former board members" lacked exeperience in the insurance industry. No wonder Phoenix went down the toilet.
Waldo312 (11/14/2009, 7:42 AM )