Fidelity & Guaranty Life, the insurer owned by HRG Group Inc., posted a quarterly loss on holdings tied to bankrupt electronics retailer RadioShack Corp.
F&G had a net loss of $12 million in the three months ended March 31, compared with net income in the year-earlier period of $25 million, the Des Moines, Iowa-based company said Wednesday in a statement. The company said $32 million of its impairment losses were because of a decline in the value of its RadioShack holdings.
HRG, known as Harbinger Group Inc. when it was led by Philip Falcone, said in April that it’s considering divesting its 81 percent stake in the insurer. FGL has reshaped leadership as Leucadia National Corp. increased its oversight of the parent company.
F&G participated in a $250 million loan arranged for RadioShack by another HRG unit, Salus Capital Partners LLC, people with knowledge of the funding said in February. At the time, the insurer had a $50 million investment in the Fort Worth, Texas-based retailer, which filed for Chapter 11 bankruptcy in February.
HRG may also sell Salus, which has lost top executives after losses tied to RadioShack loans.
HRG acquired full ownership of F&G in 2011, and the insurer had an initial public offering in late 2013, with shares selling for $17 apiece. The stock closed on Wednesday at $22. Quarterly results were released after regular trading.