SEPTEMBER 29, 2015 03:02 PM (EDT)
A.M. Best Places Ratings of The Phoenix Companies Inc. and Its Subsidiaries Under Review With Developing Implications
Senior Financial Analyst
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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 29, 2015 03:02 PM (EDT)
A.M. Best has placed the issuer credit rating (ICR) of “b” of The Phoenix Companies Inc. (Phoenix) (NYSE: PNX) under review with developing implications. In addition, A.M. Best has placed under review with developing implications the issue rating of “b” on Phoenix’s $300 million ($253 million outstanding) 7.45% senior unsecured quarterly interest bonds due 2032 and the issue rating of “b+” on the $175 million ($126 million outstanding) 7.15% surplus notes due 2034. Concurrently, A.M. Best has placed under review with developing implications the financial strength rating of B (Fair) and the ICRs of “bb+” of Phoenix’s insurance subsidiaries: Phoenix Life Insurance Company, PHL Variable Insurance Company, Phoenix Life and Annuity Company and American Phoenix Life and Reassurance Company. All companies are headquartered in Hartford, CT.
The actions follow the recent public announcement by Phoenix that it is has entered into a definitive agreement to be acquired by Nassau Reinsurance Group Holdings L.P. (Nassau) (New York, NY) for $37.50 per share in cash, or an aggregate equity purchase price of $217.2 million. After completion of the transaction, Nassau is expected to contribute capital of $100 million into Phoenix. The transaction is expected to close in early 2016.
The ratings will remain under review pending the completion of the transaction, which is expected in the first quarter 2016, and A.M. Best’s discussions with management with regards to the business plan under the new ownership.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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