PLIC statutory surplus and asset valuation reserve of $751.7
million, up $16.5 million from year-end 2013PLIC first half 2014 statutory net gain from operations of $39.2
million; net loss of $4.6 million for second quarterStrong second quarter 2014 operating metrics including annuity
deposits, policy persistency and Saybrus EBITDA
HARTFORD, Conn.--(BUSINESS WIRE)--
The Phoenix Companies, Inc. (NYSE:PNX) today provided second quarter
2014 unaudited statutory results for its principal operating subsidiary,
Phoenix Life Insurance Company (PLIC), and estimated operating metrics
for the same period.
“PLIC’s statutory results for the first half of the year remained
positive, with modest year-to-date improvement in capital,” said James
D. Wehr, president and chief executive officer. “At the same time,
Phoenix’s key operating metrics for the second quarter demonstrate the
ongoing strength of the franchise, with strong levels of annuity
deposits, modestly favorable mortality, very low life surrender rates
and the highest level of quarterly EBITDA Saybrus has ever generated.”
SECOND QUARTER 2014 STATUTORY RESULTS FOR PHOENIX LIFE INSURANCE
PLIC today filed its unaudited statutory financial statements for the
quarter ended June 30, 2014 with the New York State Department of
Financial Services on time. The following are highlights from that
PLIC’s statutory surplus and asset valuation reserve was $751.7
million at June 30, 2014 and $735.2 million at Dec. 31, 2013. The
$16.5 million increase reflects earnings in the first six months of
the year, partially offset by $26.5 million in dividends PLIC paid to
the parent holding company and $31.0 million in net negative prior
PLIC’s estimated risk-based capital ratio was 333% at June 30, 2014,
compared with 337% at Dec. 31, 2013. The decrease was largely driven
by an increase in the interest rate risk charge.
PLIC reported a statutory net loss from operations of $4.6 million and
a statutory net loss of $4.1 million for the quarter ended June 30,
2014, compared with a statutory net gain from operations of $43.8
million and statutory net income of $47.6 million for the quarter
ended March 31, 2014. The change was driven by less favorable
mortality, higher expenses and lower net investment income.
Year-to-date through June 30, 2014, PLIC had a statutory net gain from
operations of $39.2 million and statutory net income of $43.5 million.
PLIC reported statutory net investment income of $147.7 million for
the quarter ended June 30, 2014.
SECOND QUARTER 2014 ESTIMATED OPERATING METRICS FOR THE PHOENIX
The following are currently estimated operating metrics for the second
quarter of 2014 for The Phoenix Companies, Inc.:
Annuity deposits of $201.0 million for the second quarter of 2014.
Net annuity flows (deposits less surrenders) of $(30.6) million for
the second quarter of 2014.
Annuity funds under management of $5.6 billion at June 30, 2014.
Life insurance annualized premium of $0.8 million for the second
quarter of 2014.
Gross life insurance in-force of $100.7 billion at June 30, 2014.
Second quarter 2014 mortality was modestly favorable compared with
expectations, driven by favorable results in the closed block. Open
block mortality was modestly unfavorable. Year-to-date mortality for
both the open and closed blocks is favorable compared with
Second quarter 2014 total individual life surrenders at an annualized
rate of 3.9%, and closed block life policies at an annualized rate of
Second quarter 2014 annuity surrenders at an annualized rate of
Holding company cash and non-affiliated securities totaled $154.4
million at June 30, 2014, including $26.5 million in dividends paid
from PLIC. PLIC has remaining dividend capacity of $32.2 million for
Saybrus Partners had EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) of $2.0 million and total revenues of
$9.6 million for the second quarter of 2014.
MOST CURRENT ASSESSMENT OF FINANCIAL CONDITION
The Phoenix Companies, Inc. today advised that the second quarter 2014
unaudited statutory financial results for its insurance company
subsidiaries filed with their domiciliary state insurance regulators
should be relied upon as the most current assessment of their respective
The Phoenix Companies, Inc. noted that statutory results of its
insurance company subsidiaries are not indicative of, and are not a
replacement for, its consolidated GAAP results. Because of the
differences between statutory and GAAP accounting principles, variances
between the statutory financial results of its insurance company
subsidiaries and their or The Phoenix Companies, Inc.’s GAAP financial
information are likely to be material.
Phoenix will host a conference call today at 10 a.m. EDT to present
information on the company’s 2013 financial results, and second quarter
2014 estimated operating metrics and unaudited statutory results for its
principal operating subsidiary, Phoenix Life Insurance Company (PLIC),
and other matters. Presentation materials and a live broadcast will be
available on the company’s website, www.phoenixwm.com,
under “Investor Relations.” The live broadcast also can be accessed by
telephone at 517-308-9305 (Passcode: PHOENIX). A replay will be
available through Aug. 29, 2014 by telephone at 203-369-0945 (Passcode:
5505) and on the company’s website.
The Phoenix Companies, Inc. (NYSE:PNX) helps financial professionals
provide solutions, including income strategies and insurance protection,
to families and individuals planning for or living in retirement.
Founded as a life insurance company in 1851, Phoenix offers products and
services designed to meet financial needs in the middle income and mass
affluent markets. Its distribution subsidiary, Saybrus Partners, Inc.
offers solutions-based sales support to financial professionals and
represents Phoenix’s products among key distributors, including
independent marketing organizations and brokerage general agencies.
Phoenix is headquartered in Hartford, Connecticut, and its principal
operating subsidiary, Phoenix Life Insurance Company, has its statutory
home office in East Greenbush, New York. For more information, visit www.phoenixwm.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The foregoing contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.We
intend for these forward-looking statements to be covered by the safe
harbor provisions of the federal securities laws relating to
forward-looking statements.These forward-looking statements
include statements relating to, or representing management’s beliefs
about, future events, transactions, strategies, operations and financial
results, including, without limitation, our expectation to provide
information within anticipated timeframes and in accordance with the
amended administrative order entered by the SEC with respect to the
Company and its wholly owned subsidiary, PHL Variable Insurance Company
(“PHL Variable”), and otherwise in accordance with law, the outcome of
litigation and claims as well as regulatory examinations,
investigations, proceedings and orders arising out of the restatement
and the failure by the Company and PHL Variable to file SEC reports on a
timely basis, potential penalties that may result from failure to timely
file statutory financial statements with state insurance regulators, and
the Company’s ability to satisfy its requirements under, and maintain
the listing of its shares on, the NYSE.Such forward-looking
statements often contain words such as “will,” “anticipate,” “believe,”
“plan,” “estimate,” “expect,” “intend,” “is targeting,” “may,” “should”
and other similar words or expressions.Forward-looking
statements are made based upon management’s current expectations and
beliefs and are not guarantees of future performance.Our ability
to resume a timely filing schedule with respect to our SEC filings is
subject to a number of contingencies, including but not limited to,
whether existing systems and processes can be timely updated,
supplemented or replaced, and whether additional filings may be
necessary in connection with the restatement. Our actual business,
financial condition or results of operations may differ materially from
those suggested by forward-looking statements as a result of risks and
uncertainties which include, among others, those risks and uncertainties
described in any of our other filings with the SEC.Certain other
factors which may impact our business, financial condition or results of
operations or which may cause actual results to differ from such
forward-looking statements are discussed or included in our periodic
reports filed with the SEC and are available on our website at www.phoenixwm.com
under “Investor Relations.”You are urged to carefully consider
all such factors.We do not undertake or plan to update or revise
forward-looking statements to reflect actual results, changes in plans,
assumptions, estimates or projections, or other circumstances occurring
after the date of this news release, even if such results, changes or
circumstances make it clear that any forward-looking information will
not be realized.If we make any future public statements or
disclosures which modify or impact any of the forward-looking statements
contained in or accompanying this news release, such statements or
disclosures will be deemed to modify or supersede such statements in
this news release.
The Phoenix Companies, Inc.
Alice S. Ericson, 860-403-5946
Naomi Baline Kleinman, 860-403-7100
Source: The Phoenix Companies, Inc