HOME LIFE, PHOENIX MUTUAL AGREE TO MERGE
HOME LIFE, PHOENIX MUTUAL AGREE TO MERGE NEW YORK, Dec. 16 /PRNewswire/ -- Home Life Insurance Company and
Phoenix Mutual Life Insurance Company today jointly announced that their boards of directors have entered into a merger agreement between the two companies.
Merger between New York-based Home Life and Hartford-based Phoenix Mutual will be the first between major mutual life insurance companies. The combined company will be known as Phoenix Home Life Mutual Insurance Company, and will rank among the nation's 25 largest insurers, with assets of almost $11 billion and capital of almost $600 million. "With this merger, our combined company will have a strategic advantage over its current competitors," said John Gummere, chairman and chief executive officer of Phoenix Mutual. "We're convinced the future will belong to the insurers whose strength and efficiency enables them to offer superior value to policyholders. Phoenix Home Life will be such a company." "These two companies complement each other superbly," continued Bill Wallace, chairman and chief executive officer of Home Life. "Home Life and Phoenix Mutual are comparable in the nature of their activities, and compatible in their philosophies of managing their companies in the best interests of their policyholders. We're financially healthy, we've got excellent people running our operations, we have successful and respected field forces and our businesses are growing. By combining our resources, we will be the mutual life insurer of choice in the 90's and beyond." The combined Phoenix Home Life will be a New York company subject to the regulation of the New York insurance department, and will maintain its corporate presence in Connecticut. It will offer its customers individual and group life insurance, a vast array of group health benefits, annuities, mutual funds, asset management, and pension and retirement services. Completion of the merger is subject to normal closing conditions, any required regulatory filings and approvals including the insurance departments of the states of New York and Connecticut, as well as approval by the policyholders of both companies. The companies have met with the two insurance departments, and believe that the appropriate approvals will be obtained. The companies anticipate that a closing of the merger will take place by July 1992. Each company will name an equal number of outside directors to the board of the combined company. Gummere will become chairman and chief executive officer, Wallace will become vice-chairman and chief operating officer, and Robert W. Fiondella, currently president and chief operating officer of Phoenix Mutual, will become president and principal operating officer of the combined company. After closing of the merger, the individual life insurance distribution and service operations of the two companies will be merged. The group insurance operations of the two companies will be initially operated separately. The mutual fund and money management activities of The Phoenix will remain unchanged. The operations of the two companies will be combined during a transition period of approximately 18 months to 3 years following completion of the merger. Ultimately, the companies expect to realize savings of $70 million or more per year through expense reduction and the integration of operating systems. At the end of the transition, Phoenix Home Life's operations will be concentrated in four locations: a new facility in the Hudson Valley area of New York State; as well as locations in Hartford and Enfield, Conn., and Greenfield, Mass. Home Life's group operation will remain in Piscataway, N.J.; other activities located there and in New York will eventually be relocated. The companies anticipate significant savings from eventual reduction in staffing levels, much of which will be achieved through normal attrition at both companies. Whenever possible, employees at facilities to be closed will be offered employment at other locations. The new company, the Phoenix Home Life Mutual Insurance Company, will have almost $11 billion in assets; almost $600 million in capital; more than $100 billion life insurance in force and more than 700,000 policyholders. The combined company will be the 13th largest mutual life insurance company and rank in the top 25 of all life insurers. Phoenix Mutual, founded in Hartford in 1851, has assets of $6.4 billion; it has $9.6 billion assets under management. The Phoenix has 400,000 policyholders throughout the United States, and in Puerto Rico, the U.S. Virgin Islands and Canada. The Phoenix offers a diverse portfolio of personal and business life insurance products, mutual funds and individual investment products, employee benefits, and group pension products. Home Life, founded in New York in 1860, has assets of $4.4 billion. Home Life offers life, health and retirement insurance products and related services to 300,000 individual, family and business policyholders. Media Advisory The Phoenix/Home Life Merger Press Conferences Tomorrow 12/17/91 Video News Release Today Coordinates SUBJECT: The Phoenix/Home Life Merger Press Telephone Conference Call DATE: Dec. 16, 1991 The Phoenix and Home Life have scheduled press conferences in New York City and Hartford tomorrow to discuss their merger plans. A video news release will be available today between 5 and 6:00 p.m. the press conferences will be hosted by William Wallace, chairman of Home Life and John Gummere, chairman of the Phoenix. New York City press conference DATE: Tuesday, Dec. 17, 1991 TIME: 11:30 p.m. (New York City time) LOCATION: Home Life Building 75 Wall Street, 31st floor R.S.V.P.: Abernathy MacGregor Group: Steven Bruce or Catherine Marcus, 212-371-5999 Hartford press conference DATE: Tuesday, Dec. 17, 1991 TIME: 2:30 p.m. LOCATION: The Phoenix Headquarters Building One American Row Conference Room 1, ground floor Video News release DATE: Monday, Dec. 16, 1991 TIME: 5 to 6:00 p.m. COORDINATES: Telstar 302-7H Audio 6.2/6.8 -0- 12/16/91 /CONTACT: Jim MacGregor, 212-371-5999, Catherine Marcus, 212-371-5999, both of Abernathy MacGregor/ CO: Home Life Insurance Company; Phoenix Mutual Life ST: New York, Connecticut IN: INS SU: TNM SM -- NY087 -- 2708 12/16/91 17:28 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Dec 16, 1991|
|Previous Article:||THE ZIEGLER COMPANY DECLARES DIVIDEND|
|Next Article:||TANKNOLOGY ENVIRONMENTAL ANNOUNCES RESTRUCTURING OF SENIOR MANAGEMENT|