2012-10-10 14:04:13 -
Harbinger Group's Insurance Subsidiary FGL Executes $295 Million Reserve Credit
Facility Replacement Three Years Early
NEW YORK - October 10, 2012 -Harbinger Group Inc. ("HGI"; NYSE: HRG) today
announced the closing of a $295 million reserve credit facility between Nomura
Bank International ("Nomura") and HGI's primary insurance company, Fidelity
&
Guaranty Life ("FGL"). The facility replaces a seller-provided facility put in
place under the stock purchase agreement entered into between a subsidiary of
HGI and Old Mutual plc for the acquisition of FGL.
"This marks an important milestone for FGL, as the company has eliminated the
last remaining credit support by its former owner, more than three years ahead
of our obligation and at a lower financing cost," said Phil Gass, Vice President
of Investments at HGI. "Under Lee Launer's leadership, we have been able to
improve FGL's balance sheet and grow its business, returning the insurance
company to a leading provider of fixed index annuities. These accomplishments
are significant as we continue to make strides in building value for HGI
shareholders."
Under the terms of the reserve credit facility agreement, Nomura will provide
Raven Re, a wholly-owned subsidiary of FGL, with a five-year facility at a lower
financing cost to recapture business that was previously ceded to Old Mutual
Reassurance (Ireland) Limited. Under the terms of the stock purchase agreement
between HGI and Old Mutual, HGI was required to recapture this ceded business by
December 31, 2015.
"Fidelity & Guaranty Life continues to meet and exceed expectations as we build
a platform for future growth. I'm pleased we met this outstanding obligation
quickly and well ahead of schedule," said Lee Launer, Chief Executive Officer of
Fidelity & Guaranty Life.
About Harbinger Group Inc.
Harbinger Group Inc. ("HGI"; NYSE: HRG) is a diversified holding company.
HGI's
principal operations are conducted through subsidiaries that offer life
insurance and annuity products, and branded consumer products such as batteries,
personal care products, small household appliances, pet supplies, and home and
garden pest control products. 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. Harbinger Group Inc. 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.
About Fidelity & Guaranty Life
On April 6, 2011, HGI completed the acquisition of the U.S. annuity and life
insurance business of Old Mutual. Under new ownership, the companies have
adopted a new corporate identity, Fidelity & Guaranty Life, as well as new
insurance company names: Fidelity & Guaranty Life Insurance Company and Fidelity
& Guaranty Life Insurance Company of New York. Headquartered in Baltimore, MD,
the company focuses its efforts on serving middle market consumers seeking the
safety, protection and income features of secure life insurance and annuity
products. Products are distributed through Fidelity & Guaranty Life's
established, independent network of master general agents. Fidelity & Guaranty
Life has approximately $17.1 billion of cash and investment assets under
management as of July 1, 2012. For more information on Fidelity & Guaranty Life,
visit:
home.fglife.com.
About Nomura
Nomura is a leading financial services group and the preeminent Asian-based
investment bank with worldwide reach. Nomura provides a broad range of
innovative solutions tailored to the specific requirements of individual,
institutional, corporate and government clients through an international network
in over 30 countries. Based in Tokyo and with regional headquarters in Hong
Kong, London, and New York, Nomura employs over 27,000 staff worldwide. Nomura's
unique understanding of Asia enables the company to make a difference for
clients through three business divisions: retail, asset management, and
wholesale (fixed income, equities, and investment banking). For further
information about Nomura, please visit www.nomura.com
Forward Looking Statements
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995: Some of the statements contained in the Press Release are or may be
forward-looking statements based upon management's current expectations that 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
forward-looking statements. These statements and other forward-looking
statements made from time-to-time by HGI and its representatives are based upon
certain assumptions and describe future plans, strategies and expectations of
HGI, are generally identifiable by use of the words "believes,"
"expects,"
"intends," "anticipates," "plans," "seeks,"
"estimates," "projects," "may" or
similar expressions. Factors that could cause actual results, events and
developments to differ include, without limitation, the ability of HGI's
subsidiaries to generate sufficient net income and cash flows to make upstream
cash distributions, capital market conditions, the risk that HGI may not be
successful in identifying any suitable future acquisition opportunities, the
risks that may affect the performance of the operating subsidiaries of HGI and
those factors listed under the caption "Risk Factors" in HGI's most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q, filed with the
Securities and Exchange Commission. 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. Neither HGI nor any of its affiliates undertakes any
obligation to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to future
operation results.
Contact information
Harbinger Group Inc.
Investor Relations:
Tara Glenn, 212-906-8560
investorrelations@Harbingergroupinc.com
or
APCO Worldwide
Jeff Zelkowitz, 646-218-8744
jzelkowitz@apcoworldwide.com
Source: Harbinger Group Inc.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Harbinger Group Inc. via Thomson Reuters ONE
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