Fidelity & Guaranty Life’s IPO a credit positive

September 10, 2013 by Maria Wood

Fidelity & Guaranty’s Life recently announced $100-million IPO is a credit positive, according to an analysis by Moody’s Investors Service.

Ann G. Perry, vice president, senior credit officer for Moody’s, writes that the move is a credit positive because it establishes a public equity market for Fidelity & Guaranty Life (FGL) and lessens its capital dependence on the parent company, the Harbinger Group Inc., which acquired Fidelity & Guaranty Life Insurance Co. (FGLIC) from Old Mutual plc three years ago for $350 million.

Most of the proceeds are expected to go toward organic growth or to finance in-market acquisitions, which further confirms the credit positive grade, Perry writes.  Click here to read…

Originally Posted at LifeHealthPro on September 9, 2013 by Maria Wood.