[July 06, 2015] |
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Phoenix Executes Intercompany Reinsurance Treaty and Announces De-stacking of Insurance Company Subsidiaries
The Phoenix Companies, Inc. (NYSE: PNX) ("Phoenix") today announced that
it executed a previously disclosed intercompany reinsurance treaty
between two of its subsidiaries, Phoenix Life Insurance Company ("PLIC")
and PHL Variable Insurance Company ("PHL Variable"), effective June 30,
2015, after receiving regulatory approval. Phoenix also announced that
it expects to de-stack its insurance company subsidiaries by July 31,
2015.
Under the reinsurance treaty, PLIC will retrocede to PHL Variable on a
modified coinsurance basis, policy liabilities of a block of
corporate-owned life insurance policies. Phoenix confirmed that it
expects the treaty to favorably impact statutory surplus and risk-based
capital ratios for both subsidiaries and said it will provide more
details on the impact with second quarter 2015 financial results.
As of result of discussions with its regulators related to this treaty,
Phoenix expects to de-stack its insurance company subsidiaries.
Management believes de-stacking will create a more streamlined
regulatory structure.
PLIC is regulated by the New York State Department of Financial
Services. It is currently the indirect parent of PHL Variable, American
Phoenix Life and Reassurance Company and Phoenix Life and Annuity
Company, which are regulated by the Connecticut Insurance Department.
Under the proposed structure, the three Connecticut-regulated entities
will be direct subsidiaries of Phoenix.
The de-stacking is subject to approval by both New York and Connecticut
regulators.
Further, Phoenix agreed it will not use any future dividends paid by
PLIC to meet the operating needs of PHL Variable. Phoenix's estimated
holding company cash and non-affiliated securities of $65 million at
June 30, 2015 and other capital sources, such as dividends from other
operating companies and external financing, are available and believed
sufficient to meet PHL Variable's currently anticipated capital needs.
ABOUT PHOENIX 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 sals 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. PHL Variable Insurance Company has its statutory home office in
Hartford, Connecticut, and files annual and other periodic reports under
the Securities Exchange Act of 1934. 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 otherwise in accordance with law, the outcome
of litigation and claims as well as regulatory examinations,
investigations, proceedings and orders arising out of the restatements
and the failure by Phoenix and its wholly owned subsidiary, PHL Variable
Insurance Company, to file SEC (News - Alert) reports on a timely basis, potential
penalties that may result from failure to timely file statutory
financial statements with state insurance regulators, and Phoenix's
ability to satisfy its requirements under, and maintain the listing of
its shares on, the NYSE, and Phoenix's ability to obtain regulatory
approval to de-stack its insurance company subsidiaries and to effect
the de-stacking in the anticipated time frame or at all. Such
forward-looking statements. 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 maintain
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
restatements. 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 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 new 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150706005818/en/
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