Harbinger Group Inc. Announces Today the Closing of a Significant Coinsurance Transaction With Wilton Reassurance Company and the Termination of Previous Reserve Financing Facility Agreement
NEW YORK, Oct. 18, 2011 /PRNewswire via COMTEX/ --
Harbinger Group Inc. ("HGI" or the "Company"; NYSE: HRG) today announced that its subsidiary, Fidelity & Guaranty Life Insurance Company ("FGL") has completed the reinsurance transaction with Wilton Reassurance Company ("Wilton") replacing reinsurance previously provided by Raven Reinsurance Company, a wholly owned subsidiary of FGL. On September 9, 2011, the Company announced an amendment to an existing reinsurance agreement with Wilton (the "Raven Springing Amendment") accelerating the closing date to October 31, 2011 or such earlier date as the parties may agree.
A $535 million financing facility (the "Reserve Facility") and a surplus note with a face amount of $95 million (the "Surplus Note") were provided by affiliates of Old Mutual plc in connection with the acquisition of FGL by HGI earlier this year to cover the life insurance reserves for the related business. As of the closing, the Raven Springing Amendment replaces the Reserve Facility. The Surplus Note is also no longer required and has been redeemed by Raven Reinsurance Company.
About Harbinger Group Inc.
Harbinger Group Inc. is a diversified holding company. The Company's principal operations are conducted through subsidiaries that offer life insurance and annuity products, and branded consumer products such as batteries, pet supplies, home and garden control products, personal care and small appliances. The Company focuses on opportunities in these sectors as well as financial products, telecommunications, agriculture, power generation and water and natural resources. The Company makes certain reports available free of charge on its website at www.harbingergroupinc.com as soon as reasonably practicable after each such report is electronically filed with, or furnished to, the Securities and Exchange Commission.
CONTACT:
APCO Worldwide
Jeff Zelkowitz, 646-218-8744
jzelkowitz@apcoworldwide.com
or
Harbinger Group Inc.
Francis T. McCarron, CFO, 212-906-8560
investorrelations@harbingergroupinc.com
SOURCE Harbinger Group Inc.