After sales drought, Phoenix creates its own distributor

After a series of ratings downgrades this year halted sales of its life insurance and annuity products by major outside distributors, The Phoenix Cos. Inc. has created a distribution company of its own, Saybrus Partners Inc., and has struck a consulting agreement with Edward D. Jones & Co. LP. Along with distributing Phoenix's products and serving existing customers, Saybrus will provide life insurance consulting services to other companies, Phoenix said in a statement. In addition, under a three-year agreement with Edward Jones, Phoenix wealth management consultants will work with advisers at two new carriers inside of the Jones retail distribution network, John Hancock Life Insurance Co. (USA) and Pacific Life Insurance Co. There is no selling agreement between Phoenix and Edward Jones. Phoenix has been working on establishing new distribution relationships after the ratings downgrades hurt its relationships with major distributors, such as State Farm Mutual Automobile Insurance Co. “Establishing Saybrus is an important first step in executing our growth strategy, which includes leveraging our existing capabilities in innovative ways,” James D. Wehr, president and chief executive of Phoenix, said in the statement. Edward W. Cassidy, executive vice president of distribution at Phoenix, was named Saybrus' managing principal. Phoenix posted a loss of $26.6 million for the third quarter, compared with a loss of $339.5 million a year earlier. Life insurance sales and annuity deposits were both down drastically year over year. E-mail Darla Mercado at [email protected].