HC2 Holdings Inc (NYSEMKT:HCHC) CEO, Philip Falcone is pushing towards venturing into insurance sector lately. The company is upbeat in buying a couple of units of the renowned American Financial Group.
Falcone’s Target
In a statement, spokesperson from Virginia based HCHC commented that Falcone’s company is targeting the likes of enterprises, companies and business endeavours that have humongous portfolios of $1.2 billion or more. Initially, the buyer would pay $7 million; the remaining sum can be duly adjusted later based on the results of the units.
The Earlier Days
After leaving the role at HRG Group Inc, Falcone is proving his mettle to all and sundry as a profitable deal maker. The company reached a settlement with a plethora of regulators in 2013, forcing Falcone to liquidate the range of hedge funds. It was Falcone who played a pivotal role in expanding Harbinger Group Inc.’s insurance business with offerings that lured people. Fidelity & Guaranty Life was a leaf from Falcone’s acumen and this boosted investment yields, betted on assets pertaining to mortgage backed securities.
What Falcone Did For HC2?
Falcone has extensive experiences in the insurance space and believes that this sector is deemed to be a great value driver for HC2 Holdings Inc (NYSEMKT:HCHC). The units that the company is likely to buy are Continental General Insurance Co. and United Teacher Associates Insurance Co. Both the entities are top notch providers of long term life coverage. Falcone further added that the company has added the famous Jim Corcoran – former superintendent of New York State Insurance and former industry executive, as the would-be executive chairman of Falcone’s HCHC to bolster insurance operations.
Share Price Pumps Up
As Leucadia National Corp. bought its stake at HRG, Falcone stepped down. Soon after his focus shifted to HC2 that has been investing in manufacturing to telecom industries. With his inception into HC2’s team, the company’s shares jumped by 10%, thus extending the holistic year-long gain to 28%.
