Harbinger's insurance unit files for $100 million IPO
(Reuters) - Fidelity & Guaranty Life, the insurance unit of Harbinger Group Inc, filed with U.S. regulators on Thursday to raise up to $100 million in an initial public offering of its common stock.
The Baltimore, Maryland-based company, which offers fixed annuities and life insurance products, was acquired by Harbinger Group in April 2011 for $350 million.
Fidelity & Guaranty offers its products through a network of about 200 independent insurance marketing firms that represent about 19,000 independent agents. The company employs about 170 people.
Fidelity & Guaranty posted a profit of $237 million for the nine months ended June 30, compared with $116.9 million a year earlier. Revenue rose to $1.03 billion in the period from $862.6 million.
The company plans to use the proceeds to pay a dividend to Harbinger Group and use the rest for working capital and other general corporate purposes.
Credit Suisse is underwriting the IPO, Fidelity & Guaranty said in a preliminary prospectus filing with the U.S. Securities and Exchange Commission. (link.reuters.com/byb72v)
The filing did not reveal how many shares the company planned to sell or their expected price. The company did not reveal which stock exchange it intends to list its common stock on nor did it disclose the symbol it intends to use.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
(Reporting by Varun Aggarwal in Bangalore; Editing by Kirti Pandey)
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