Nassau Re completes Phoenix acquisition

Nassau Reinsurance Group has completed its acquisition of Phoenix, which now serves as its US life and annuity platform.

The acquisition follows the receipt of insurance regulatory approvals from the Connecticut Insurance Department and the New York State Department of Financial Services.

Additionally, the distribution subsidiary of Phoenix, Saybrus Partners, has become a subsidiary of Nassau Re, held outside of Phoenix.

Nassau Re contributed $100 million of new equity capital into Phoenix at closing. Additionally, Nassau Re funded $80 million of new equity capital to Nassau Re’s reinsurance affiliate related to a reinsurance agreement between this affiliate and PHL Variable Insurance Company, another of Phoenix’s operating subsidiaries.

As part of this acquisition, Phillip Gass, chief executive officer (CEO) of Nassau Re, will also serve as Phoenix’s CEO.

James Wehr, who has served as Phoenix’s president and CEO since 2009, is retiring effective July 1, 2016. Wehr joined Phoenix in 1981 and was chief investment officer prior to being named CEO.

Gass said: “The acquisition of Phoenix represents an important milestone for Nassau Re as we build our US life and annuity business. As a private company, with substantial new equity capital and the execution of the reinsurance agreement, Phoenix has greatly improved its capital adequacy and liquidity. We believe this will accelerate its turnaround.”

“Phoenix has a 165-year history and a well-recognised brand, and the management team and I are excited to start a new chapter for the company.

“Our immediate priorities are to bolster Phoenix’s ratings and risk-based capital ratios while improving the company’s profitability. We are also excited to build out Nassau Re’s insurance distribution platform over the years ahead, starting with the acquisition of Saybrus Partners.”

“I want to thank Jim Wehr for his leadership through a challenging period and market environment as well as his implementation of a solid service and product strategy that includes the success of Saybrus Partners. Jim’s contributions over his three decades at Phoenix cannot be overstated, and we wish him all the best in his future endeavours.”