Phoenix Life Posts 3Q Statutory Net Income
November 18, 2014 by Fran Matso Lysiak
HARTFORD, Conn. – Phoenix Life Insurance Co. posted a third-quarter statutory net income of $41.5 million, from a statutory net loss of $4.1 million in the second quarter. The change was driven by higher net investment income and favorable mortality but was offset by higher expenses.
Phoenix Cos. Inc. provided the third-quarter unaudited statutory results for Phoenix Life, its main operating subsidiary, which is domiciled in New York. Phoenix Life filed these unaudited financial statements with the New York State Department of Financial Services.
The company said it expects to return to current U.S. Securities and Exchange Commission filer status with the filing of Phoenix Cos. Inc.’s third-quarter 2014 Form 10-Q with the U.S. Securities and Exchange Commission no later than Dec. 5. The company expects PHL Variable Insurance Co., another subsidiary, to return to current SEC filer status with the filing of its third-quarter 2014 Form 10-Q no later than Dec. 12.
In March, Phoenix Cos. agreed to pay $750,000 to the SEC for failing to submit financial filings on time. The settlement covered filings submitted by it and its subsidiary PHL Variable Insurance Co. Each company was required to pay $375,000 as part of the settlement (Best’s News Service, March 25, 2014).
Year-to-date through Sept. 30, 2014, Phoenix Life recorded statutory net income of $85 million.
Statutory results of its insurance company subsidiaries aren’t indicative of its consolidated GAAP results, Phoenix Cos. said.
Phoenix Life “had strong statutory results in the third quarter, with continued improvement in capital,” said James D. Wehr, president and chief executive officer, in a statement.
Phoenix Life’s statutory surplus and asset valuation reserve grew to $774.9 million at Sept. 30, 2014, up from $735.2 million at Dec. 31, 2013. However, this was offset by $41.3 million in dividends it paid to the parent holding company during that same period.
As to third-quarter estimated operating metrics for Phoenix Cos. Inc., among the highlights include: Net annuity flows, which are deposits less surrenders, of $64.6 million and life insurance annualized premium of $1.1 million
The Hartford, Connecticut-based Phoenix Cos. helps financial professionals provide income strategies and insurance to families and individuals planning for or living in retirement. Its products and services are geared to the middle income and mass affluent markets. Its distribution subsidiary, Saybrus Partners offers sales support to financial professionals and represents Phoenix’s products among independent marketing organizations and brokerage general agencies.
Saybrus Partners recorded earnings before interest, taxes, depreciation and amortization of $2.4 million and total revenues of $10.3 million.
Phoenix’s key operating metrics “also were solid, with well over $200 million in annuity deposits, favorable mortality, very low life surrender rates and record quarterly revenues generated by Saybrus,” Wehr said.
On the afternoon of Nov. 17, Phoenix Cos. Inc.’s (NYSE: PNX) stock was trading at $58.28 a share, up 1.43% from the previous close. Rated operating units of Phoenix Cos. have a current Best’s Financial Strength Rating of B (Fair).