|[December 18, 2013]
Harbinger Group Inc. Announces Front Street Re Reinsurance Treaty with Bankers Life Insurance Company
NEW YORK --(Business Wire)--
Harbinger Group Inc. ("HGI (News - Alert)", 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
"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 on-core life and fixed annuity lines of business.
Front Street currently holds licenses with the Cayman Islands Monetary
Authority, and the Bermuda Monetary Authority. For more information
regarding Front Street, please visit: www.frontstreetre.com.
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.
Forward Looking Statements
"Safe Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995: This document contains, and certain oral statements made by
our representatives from time to time may contain, forward-looking
statements, including those statements regarding our subsidiaries'
ability to pay dividends. Such statements are subject to risks and
uncertainties that could cause actual results, events and developments
to differ materially from those set forth in or implied by such
statements. These statements are based on the beliefs and assumptions of
HGI's management and the management of HGI's subsidiaries (including
target businesses). Generally, forward-looking statements include
information concerning possible or assumed future distributions from
subsidiaries, other actions, events, results, strategies and
expectations and are generally identifiable by use of the words
"believes," "expects," "intends," "anticipates," "plans," "seeks,"
"estimates," "projects," "may," "will" "could," "might," or "continues"
or similar expressions. Factors that could cause actual results, events
and developments to differ include, without limitation: the ability of
HGI's subsidiaries (including, target businesses following their
acquisition) to generate sufficient net income and cash flows to make
upstream cash distributions, capital market conditions, HGI and its
subsidiaries ability to identify any suitable future acquisition
opportunities, efficiencies/cost avoidance, cost savings, income and
margins, growth, economies of scale, combined operations, future
economic performance, conditions to, and the timetable for, completing
the integration of financial reporting of acquired or target businesses
with HGI or HGI subsidiaries, completing future acquisitions and
dispositions, litigation, potential and contingent liabilities,
management's plans, changes in regulations, taxes and the those forward
looking statements included under the caption "Risk Factors" in HGI's
most recent Annual Report on Form 10-K and Quarterly Reports on Form
10-Q filed during fiscal 2013. All forward-looking statements described
herein are qualified by these cautionary statements and there can be no
assurance that the actual results, events or developments referenced
herein will occur or be realized. HGI does not undertake any obligation
to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to future
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