The Phoenix Companies, Inc. (NYSE: PNX) today announced capital management actions that combine debt and share repurchases and are expected to reduce the company’s leverage while increasing book value per share (BVPS), earnings per share (EPS) and return on equity (ROE).
“As set forth in our strategy, we have been growing capital organically since the beginning of 2010. We determined that the time is right to redeploy some of it now to enhance the company’s financial position while continuing to maintain a prudent capital cushion for adverse events and to support profitable growth,” said James D. Wehr, president and chief executive officer.
On September 21, 2012, Phoenix’s principal operating subsidiary, Phoenix Life Insurance Company, repurchased $48.3 million par amount of its outstanding 7.15% surplus notes due 2034 for aggregate consideration of $36.2 million. The repurchase is expected to reduce Phoenix’s debt-to-total-capital ratio by approximately 2.5 percentage points in the third quarter of 2012 and reduce annual interest expense by approximately $3.5 million, which will enhance EPS and ROE.
In addition, on September 20, 2012, Phoenix’s Board of Directors authorized a program to repurchase outstanding shares of common stock up to an aggregate amount of $25 million. This program is expected to commence in the fourth quarter of 2012 and may include open market purchases, accelerated stock buyback arrangements, and/or privately negotiated transactions.
The Phoenix Companies, Inc. (NYSE:PNX) is a boutique life insurance and annuity company serving customers’ retirement and protection needs through select independent distributors. Headquartered in Hartford, Connecticut, Phoenix has a history of keeping its promises since 1851. More detailed financial information can be found in Phoenix’s financial supplement for the second quarter of 2012, which is available on Phoenix’s Web site,
, in the Investor Relations section.
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