Insurance company names executives to lead its new Life Solutions business. The Phoenix Companies has named a pair of insurance veterans to head its new Life Solutions subsidiary. John Hillman, head of Phoenix's Philadelphia Financial Group subsidiary, will lead the new initiative and former Genworth Financial executive Frank Gencarelli will assist him.

Phoenix says its Life Solutions business "will explore are the emerging life settlements market."

Evolving needs

A "life settlement" is a financial transaction in which a policy owner possessing an unneeded or unwanted life-insurance policy sells the policy to a third party for more than the cash value offered by the life insurance company. As much as 20% of life-insurance policies held by high-net-worth policy holders aged 65 or more have a market value above the cash values offered by their carriers. In response to this, a secondary market for life insurance -- the life-settlement market -- has opened up.

"This announcement reflects our on-going pursuit of product solutions to respond to the evolving financial needs of our high-net-worth customers," says Philip Polkinghorn, head of Phoenix's life-insurance and annuities business. "Our ability to bring fresh thinking and innovative solutions to their complex problems stems from our strong capabilities in managing mortality and longevity. John and Frank's deep experience with the high-net-worth and their advisors makes them particularly well-suited to lead this effort."

Philadelphia Financial Group offers variable life insurance and annuity advisory strategies to high-net-worth clients. Phoenix bought the firm in 2003.

Gencarelli was head of business development at Richmond, Va.-based Genworth. Before that he was a senior executive with Chicago-based AON.

Hartford, -Conn.based The Phoenix Companies had total assets of $29 billion at the end of 2006. -FWR

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