Harbinger Group Announces Front Street Deal With Bankers Life
NEW YORK--(BUSINESS WIRE)--Harbinger Group Inc. (“HGI”, NYSE:HRG) today announced that Front Street Re (Cayman) Ltd., a wholly-owned subsidiary of HGI, has closed a reinsurance treaty with Bankers Life Insurance Company. Under the terms of the treaty, Bankers Life Insurance Company will cede approximately $160 million of its annuity business to Front Street Re.
The agreement, which has been approved by the State of Florida Office of Insurance Regulation, is retroactive to November 30, 2013, and is Front Street Re’s inaugural reinsurance transaction with a non-affiliated party. Front Street Re will manage the assets supporting reserves in accordance with the internal investment policy of Bankers Life Insurance Company and applicable law.
“This is a compelling treaty for Bankers Life Insurance and Front Street Re,” said John Tweedie, Chief Executive Officer of Front Street Re. “In an uncertain economy, we help companies reduce or diversify their risk profiles, and enable them to continue to thrive and provide the highest quality products to their customers. Our role is to add value and security, and we look forward to serving our newest client, Bankers Life Insurance.”
“This treaty is another important step for Front Street Re in its growth as a provider of customized reinsurance solutions to the life insurance and fixed annuity industry,” said Phil Gass, Managing Director of HGI. “During the year after its inaugural reinsurance treaty, Front Street Re has become an increasingly important component of HGI’s strong and growing financial services franchise. We see significant additional opportunities for Front Street Re to support the life insurance and fixed annuity industry for years to come.”
Front Street Re received legal advice from Debevoise & Plimpton LLP.
About Front Street
Front Street focuses on life and fixed annuity reinsurance products, including reinsurance solutions that improve clients’ leverage ratios and capital positions through the assumption of life and fixed annuity liabilities. The Front Street team also seeks to provide clients with exit strategies for discontinued life and fixed annuity lines of business, closed blocks of in-force life and fixed annuity business in run-off, and non-core life and fixed annuity lines of business.
About Harbinger Group Inc.
Harbinger Group Inc. ("HGI"; NYSE: HRG) is a diversified holding company. HGI's principal operations are conducted through companies that: offer life insurance and annuity products; branded consumer products (such as consumer batteries, residential locksets, residential builders' hardware, faucets, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn, garden and home pest control products, personal insect repellents); provide asset-backed loans; and own energy assets. HGI is principally focused on acquiring controlling and other equity stakes in businesses across a diversified range of industries and growing its existing businesses. In addition to HGI's intention to acquire controlling equity interests, HGI may also from time to time make investments in debt instruments and acquire minority equity interests in companies. HGI is headquartered in New York and traded on the New York Stock Exchange under the symbol HRG. For more information on HGI, visit: www.harbingergroupinc.com.