HARBINGER GROUP INC. FILES (8-K) Disclosing Other Events
Edgar Online, Inc.
Item 8.01: Other Events.
On December 31, 2012, Fidelity & Guaranty Life Insurance Company ("FGL"), an indirect subsidiary of Harbinger Group Inc. (the "Company"), entered into a coinsurance agreement (the "Reinsurance Agreement") with Front Street Re (Cayman) Ltd. ("Front Street"), also an indirect subsidiary of the Company. Pursuant to the Reinsurance Agreement, Front Street will reinsure approximately 10%, or approximately $1.5 billion of FGL's policy liabilities. In connection with the Reinsurance Agreement, Front Street, FGL and an indirect subsidiary of the Company, HGI Asset Management, LLC ("HGI Asset Management"), entered into an investment management agreement, pursuant to which HGI Asset Management will manage the assets securing Front Street's reinsurance obligations under the Reinsurance Agreement, which assets are held by FGL in a segregated account. The assets in the segregated account will be invested in accordance with FGL's existing guidelines.