[November 09, 2015] |
|
The Phoenix Companies Reports Third Quarter 2015 Results
The Phoenix Companies, Inc. (NYSE:PNX) ("Phoenix") today announced
financial results for the third quarter of 2015 and filed its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2015 with the
U.S. Securities and Exchange Commission ("SEC").
CEO Comments
"The previously announced transaction with Nassau is progressing and
remains on track to close in early 2016. At the same time, we continue
to manage the business for sustainable growth over the long term," said
James D. Wehr, president and chief executive officer.
"For the third quarter, Phoenix's net loss was driven primarily by the
decline in equity markets. While mortality overall was a negative
driver, experience in the universal life product line was favorable to
expectations. From a statutory perspective, total surplus was flat
relative to year end," he said.
"Price and other product changes had the anticipated impact of
increasing annuity profitability and decreasing sales for the third
quarter. Life insurance sales were consistent with the second quarter
and up significantly from a year ago. In addition, Saybrus continued to
grow its third-party business," Mr. Wehr concluded.
Third Quarter 2015 Earnings Drivers
The net loss attributable to The Phoenix Companies, Inc. was $15.7
million for the third quarter of 2015, compared with a net loss
attributable to The Phoenix Companies, Inc. of $22.4 million for the
third quarter of 2014.
Primary drivers of the third quarter 2015 results were:
-
Negative impact of the decline in equity markets of approximately $21
million, primarily the impact of equity markets on derivative
valuations.
-
External financial reporting expenses of $10.4 million, which have
declined but remain elevated.
-
Open block mortality was approximately $10 million unfavorable to
expectations. Favorable experience in the universal life ("UL")
product line was more than offset by unfavorable experience in the
variable universal life ("VUL") product line.
-
Higher net investment income and a tax benefit partially offset the
negative drivers.
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2015 Earnings Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions, except per share data)
|
|
|
|
For the Qtr Ended Sept. 30, 2015
|
|
|
For the Qtr Ended June 30, 2015
|
|
|
For the Qtr Ended Sept. 30, 2014
|
Net loss
|
|
|
|
$
|
(10.2
|
)
|
|
|
$
|
(22.4
|
)
|
|
|
$
|
(22.5
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
5.5
|
|
|
|
0.2
|
|
|
|
(0.1
|
)
|
Net loss attributable to The Phoenix Companies, Inc.
|
|
|
|
$
|
(15.7
|
)
|
|
|
$
|
(22.6
|
)
|
|
|
$
|
(22.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE SUMMARY:
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to The Phoenix Companies, Inc.
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(2.73
|
)
|
|
|
$
|
(3.93
|
)
|
|
|
$
|
(3.90
|
)
|
Diluted
|
|
|
|
$
|
(2.73
|
)
|
|
|
$
|
(3.93
|
)
|
|
|
$
|
(3.90
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
5,751
|
|
|
|
5,751
|
|
|
|
5,750
|
|
Diluted
|
|
|
|
5,751
|
|
|
|
5,751
|
|
|
|
5,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized Gains and Losses
-
Net other-than-temporary fixed income impairment losses for the third
quarter 2015 remained well below long-term averages.
|
|
|
|
|
|
|
|
|
|
|
Realized Gains and Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
For the Qtr Ended Sept. 30, 2015
|
|
|
For the Qtr Ended June 30, 2015
|
|
|
For the Qtr Ended Sept. 30, 2014
|
Total net realized gain (losses)
|
|
|
|
$
|
(11.6
|
)
|
|
|
$
|
(2.1
|
)
|
|
|
$
|
(3.8
|
)
|
Net other-than-temporary impairment losses recognized in earnings
|
|
|
|
$
|
(4.0
|
)
|
|
|
$
|
(1.1
|
)
|
|
|
$
|
(3.9
|
)
|
Derivative losses
|
|
|
|
$
|
(11.4
|
)
|
|
|
$
|
(7.5
|
)
|
|
|
$
|
(5.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Investment Gains and Losses
-
Net unrealized gains on available-for-sale debt securities decreased
by $266.5 million to $434.8 million at Sept. 30, 2015 from $701.3
million at Dec. 31, 2014, due primarily to higher interest rates.
After actuarial offsets and taxes, accumulated other comprehensive
income ("AOCI") declined by $1.1 million from $234.4 million at Dec.
31, 2014.
Balance Sheet and Liquidity
-
At Sept. 30, 2015, holding company cash and non-affiliated securities
were $83.6 million, compared with $78.3 million at Dec. 31, 2014. PLIC
paid a $30 million dividend to Phoenix in the third quarter, bringing
its year-to-date total to $59.9 million, its capacity for 2015.
Phoenix expects holding company liquidity to remain above its $50.0
million internal threshold.
-
Total stockholders' equity attributable to The Phoenix Companies, Inc.
was $213.2 million at Sept. 30, 2015, compared with $326.6 million at
Dec. 31, 2014.
-
Liquidity in the life companies remained strong with cash and cash
equivalents, short-term investments, treasuries and agency
mortgage-backed securities totaling $1.5 billion, or 11.2% of the
fixed income portfolio, at Sept. 30, 2015, compared with $1.7 billion,
or 12.7% of the fixed income portfolio, at Dec. 31, 2014.
-
The quality of the investment portfolio remained strong during the
third quarter of 2015 with the proportion of below-investment-grade
bonds as a percentage of total available-for-sale debt securities at
6.6% at Sept. 30, 2015, within Phoenix's target range of 6% - 10%,
compared with 6.7% at Dec. 31, 2014.
-
Phoenix has no debt maturities until 2032.
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
Sept. 30, 2015
|
|
|
Dec. 31, 2014
|
|
|
Change
|
Total Assets
|
|
|
|
$
|
21,288.4
|
|
|
|
$
|
21,745.9
|
|
|
|
$
|
(457.5
|
)
|
Total Liabilities
|
|
|
|
$
|
21,053.4
|
|
|
|
$
|
21,399.3
|
|
|
|
$
|
(345.9
|
)
|
Indebtedness
|
|
|
|
$
|
378.9
|
|
|
|
$
|
378.9
|
|
|
|
$
|
-
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
$
|
(235.5
|
)
|
|
|
$
|
(234.4
|
)
|
|
|
$
|
(1.1
|
)
|
Total Stockholders' Equity Attributable to The Phoenix Companies,
Inc.
|
|
|
|
$
|
213.2
|
|
|
|
$
|
326.6
|
|
|
|
$
|
(113.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2015 Operating Highlights
-
Annuity deposits were $185.2 million, primarily in fixed indexed
annuities, down from both the third quarter of 2014 and second quarter
of 2015.
-
Life insurance annualized premium was $4.8 million, driven primarily
by term insurance sales, improved from the third quarter of 2014 and
consistent with the second quarter of 2015.
-
Total annualized life insurance surrender rate was 3.7%, modestly
lower than the third quarter of 2014 and second quarter of 2015.
-
Annualized annuity surrender rate was 10.9%, modestly lower than the
third quarter of 2014 and second quarter of 2015.
-
Phoenix's distribution company, Saybrus Partners', revenue of $10.2
million was down modestly from the third quarter of 2014 primarily
reflecting lower sales of Phoenix products. EBITDA of $2.0 million was
down modestly from the third quarter of 2014.
-
Overall mortality was unfavorable compared with expectations. In the
open block, favorable UL mortality was more than offset by unfavorable
VUL mortality. Closed block experience was unfavorable compared with
expectations.
-
External financial reporting expenses of $10.4 million were down from
$13.4 million for the second quarter of 2015 and $19.4 million for the
third quarter of 2014. These external financial reporting expenses
have included restatement, SEC reporting catch up, remediation and
audit expenses.
|
|
|
|
|
|
|
|
|
|
|
($ in millions, unless noted otherwise)
|
|
|
|
As of or for the Qtr Ended Sept. 30,
2015
|
|
|
As of or for the Qtr Ended June 30, 2015
|
|
|
As of or for the Qtr Ended Sept. 30,
2014
|
Annuity deposits
|
|
|
|
$
|
185.2
|
|
|
|
$
|
221.4
|
|
|
|
$
|
221.7
|
|
Net annuity flows (deposits less surrenders)
|
|
|
|
$
|
29.3
|
|
|
|
$
|
61.2
|
|
|
|
$
|
64.6
|
|
Annuity funds under management ($ in billions)
|
|
|
|
$
|
5.6
|
|
|
|
$
|
5.8
|
|
|
|
$
|
5.6
|
|
Life insurance annualized premium
|
|
|
|
$
|
4.8
|
|
|
|
$
|
4.8
|
|
|
|
$
|
1.1
|
|
Total individual life surrenders (annualized)
|
|
|
|
3.7
|
%
|
|
|
3.8
|
%
|
|
|
3.8
|
%
|
Total closed block life surrenders (annualized)
|
|
|
|
3.6
|
%
|
|
|
3.7
|
%
|
|
|
3.7
|
%
|
Total annuity surrenders (annualized)
|
|
|
|
10.9
|
%
|
|
|
11.1
|
%
|
|
|
11.2
|
%
|
Holding company cash and non-affiliated securities
|
|
|
|
$
|
83.6
|
|
|
|
$
|
64.5
|
|
|
|
$
|
152.0
|
|
Saybrus Partners EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization)
|
|
|
|
$
|
2.0
|
|
|
|
$
|
2.7
|
|
|
|
$
|
2.4
|
|
Saybrus Partners revenue
|
|
|
|
$
|
10.2
|
|
|
|
$
|
11.1
|
|
|
|
$
|
10.3
|
|
External financial reporting expenses1
|
|
|
|
$
|
10.4
|
|
|
|
$
|
13.4
|
|
|
|
$
|
19.4
|
|
1 External financial reporting expenses is a
component of other operating expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2015 Preliminary Statutory Results
As previously announced, Phoenix de-stacked its insurance company
subsidiaries, effective July 1, 2015, which made all insurance company
subsidiaries direct subsidiaries of Phoenix. Prior to the de-stacking,
PLIC, already a direct subsidiary of Phoenix, was the indirect parent of
PHL Variable , American Phoenix Life and Reassurance Company ("APLAR")
and Phoenix Life and Annuity Company ("PLAC"). The de-stacking was
completed through an extraordinary dividend of PHL Variable, APLAR and
PLAC from PLIC to Phoenix, based on the June 30, 2015 statutory carrying
value of the three subsidiaries, which totaled $228.2 million.
PLIC and PHL Variable expect to file their unaudited statutory financial
statements for the quarter ended Sept. 30, 2015 with the New York State
Department of Financial Services and Connecticut Insurance Department,
respectively, by November 13, 2015. Preliminary highlights from those
filings:
-
PLIC reported a statutory net loss from operations of $3.7 million and
a statutory net loss (excluding the impact of the de-stacking on
realized capital losses) of $3.4 million for the quarter ended
Sept. 30, 2015, compared with a statutory net gain from operations of
$36.1 million and statutory net income of $41.5 million for the
quarter ended Sept. 30, 2014.
-
PLIC's statutory surplus and asset valuation reserve was $513.9
million at Sept. 30, 2015, compared with $752.2 million at Dec. 31,
2014. The decrease was driven by a $262.2 million impact from the
de-stacking that includes the carrying value of the de-stacked
subsidiaries and related reduction of admitted deferred tax assets, as
well as $59.9 million in dividends PLIC paid to the parent holding
company. These negative drivers were partially offset by the favorable
impact of the intercompany reinsurance treaty between PLIC and PHL
Variable executed in the second quarter.
-
PLIC's estimated risk-based capital ("RBC") ratio was 393% at
Sept. 30, 2015, compared with 334% at Dec. 31, 2014, primarily driven
by the impact of the de-stacking.
-
PHL Variable reported a statutory net loss from operations of $7.4
million and statutory net loss of $7.1 million for the quarter ended
Sept. 30, 2015, compared with a statutory net loss from operations of
$10.3 million and a statutory net loss of $14.2 million for the
quarter ended Sept. 30, 2014.
-
PHL Variable's statutory surplus and asset valuation reserve was
$214.0 million at Sept. 30, 2015, compared with $213.7 million at Dec.
31, 2014.
-
PHL Variable had an estimated RBC ratio of 209% at Sept. 30, 2015,
compared with 218% at Dec. 31, 2014.
Agreement and Plan of Merger with Nassau
On Sept. 29, 2015, Phoenix and Nassau Reinsurance Group Holdings L.P.
("Nassau") announced that they had entered into a definitive agreement
in which Nassau will acquire Phoenix for $37.50 per share in cash, or
aggregate equity purchase price of $217.2 million. The transaction is
expected to close in early 2016, subject to approval by Phoenix
stockholders, approvals by regulatory authorities including Connecticut
and New York insurance regulators and FINRA, as well as other closing
conditions.
The following is an update on progress toward completing the transaction:
-
Phoenix filed a preliminary proxy statement on Oct. 30, 2015 and will
file with the SEC and mail to stockholders a definitive proxy
statement in connection with the transaction. Phoenix expects to hold
a special meeting of stockholders in the fourth quarter of 2015.
-
Nassau made the required filings requesting approval from the New York
Department of Financial Services and from the Connecticut Insurance
Department on Nov. 6, 2015.
-
Phoenix is preparing to file its applications for change of control of
equity ownership with FINRA with respect to its two broker dealers.
-
Both companies have filed the required notifications under the
Hart-Scott-Rodino Act, and the Federal Trade Commission granted early
termination of the waiting period on Oct. 26, 2015.
In addition, Phoenix is preparing to conduct a solicitation in January
2016 seeking consent of holders of its retail bonds (NYSE:PFX) to amend
the bond indenture.
No Third Quarter Investor Conference Call
In light of the transaction with Nassau, Phoenix will not hold an
investor conference call to review the third quarter 2015 results.
Phoenix is filing a financial supplement and an investor presentation
with the SEC today, and all materials relating to third quarter 2015
financial information will be available on the company's website, www.phoenixwm.com,
in the Investor Relations section.
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 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 has two insurance
company operating subsidiaries: Phoenix Life Insurance Company, which
has its statutory home office in East Greenbush, New York, and PHL
Variable Insurance Company, which has its statutory home office in
Hartford, Connecticut. For more information, visit www.phoenixwm.com.
Important Information For Investors And Stockholders
This communication does not constitute an offer to buy or sell or the
solicitation of an offer to buy or sell any securities or a solicitation
of any vote or approval. This communication relates to a proposed
acquisition of The Phoenix Companies, Inc. by Nassau Reinsurance Group
Holdings L.P. In connection with this proposed acquisition, Phoenix has
filed a preliminary proxy statement on October 30, 2015 on Schedule 14A.
Phoenix will also file with the Securities and Exchange Commission (the
"SEC") and mail to its stockholders a definitive proxy statement and may
file other documents in connection with the proposed acquisition. This
communication is not a substitute for any proxy statement or other
document Phoenix may file with the SEC in connection with the proposed
transaction. INVESTORS AND SECURITY HOLDERS OF PHOENIX ARE URGED TO READ
THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS THAT MAY BE FILED
WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The definitive proxy
statement (when available) will be mailed to stockholders of Phoenix.
Investors and security holders will be able to obtain free copies of
these documents (when available) and other documents filed with the SEC
by Phoenix through the website maintained by the SEC at http://www.sec.gov.
Copies of the documents filed with the SEC by Phoenix will be available
free of charge on Phoenix's internet website at http://www.phoenixwm.com
or by contacting Phoenix's Investor Relations Director by email at [email protected]
or by phone at 860-403-7100.
Participants in Solicitation
Phoenix, its directors and certain of its executive officers may be
considered participants in the solicitation of proxies in connection
with the proposed transaction. Information regarding the persons who
may, under the rules of the SEC, be deemed participants in the
solicitation of the stockholders of Phoenix in connection with the
proposed merger will be set forth in the definitive proxy statement when
it is filed with the SEC. Information about the directors and executive
officers of Phoenix is set forth in its Annual Report on Form 10-K for
the year ended December 31, 2014, which was filed with the SEC on
March 31, 2015, its proxy statement for its 2015 annual meeting of
stockholders, which was filed with the SEC on April 2, 2015, its
Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 which
was filed with the SEC on August 10, 2015 and its Current Reports on
Form 8-K, which were filed with the SEC on August 10, 2015, August 11,
2015, September 29, 2015 and September 30, 2015.
These documents can be obtained free of charge from the sources
indicated above. Additional information regarding the participants in
the proxy solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, is contained in the
preliminary proxy statement that was filed with the SEC on October 30,
2015 and will be contained in the definitive proxy statement and other
relevant materials to be filed with the SEC when they become available.
The Phoenix Companies, Inc.
One American Row
PO Box 5056 Hartford, CT 06102-5056
Tel. 860-403-7100
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 regulatory approvals and the expected timing,
completion and effects of the proposed merger, as well as other
statements 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 restatements of
financial statements and the failure by Phoenix and its wholly owned
subsidiary, PHL Variable Insurance Company, 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
Phoenix'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 "assume," "will," "anticipate," "believe,"
"predict," "project," "potential," "contemplate," "plan," "forecast,"
"estimate," "expect," "intend," "is targeting," "may," "should,"
"would," "could," "goal," "seek," "hope," "aim," "continue" and other
similar words or expressions or the negative thereof or other variations
thereon. Forward-looking statements are made based upon management's
current expectations and beliefs and are not guarantees of future
performance. Such forward-looking statements involve numerous
assumptions, risks and uncertainties that may cause actual results to
differ materially from those expressed or implied in any such
statements. These risks and uncertainties include the occurrence of any
event, change or other circumstances that could give rise to the
termination of the merger agreement, which could have a material adverse
effect on us and our stock price; the inability to consummate the
proposed merger or the inability to consummate the merger in the
timeframe or manner currently anticipated, due to the failure to obtain
stockholder approval or the failure to satisfy other conditions to
completion of the proposed merger, including that a governmental entity
may prohibit, delay or refuse to grant approval for the consummation of
the transaction could have a material adverse effect on us and our stock
price. 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. Although it is believed that the expectations reflected in such
forward-looking statements are reasonable and are expressed in good
faith, no assurance can be given that such expectations will prove to
have been correct and persons reading this news release are therefore
cautioned not to place undue reliance on these forward-looking
statements which speak only as of the date of this announcement. Except
as required by law, 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.
|
Consolidated Interim Unaudited Statements of Operations and
Comprehensive Income
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
($ in millions, except per share data)
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
Premiums
|
$
|
86.1
|
|
|
|
$
|
78.1
|
|
|
|
$
|
251.1
|
|
|
|
$
|
240.9
|
|
Fee income
|
135.1
|
|
|
|
135.2
|
|
|
|
404.1
|
|
|
|
404.2
|
|
Net investment income
|
227.5
|
|
|
|
204.9
|
|
|
|
639.1
|
|
|
|
607.9
|
|
Net realized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
Total other-than-temporary impairment ("OTTI") losses
|
(4.4
|
)
|
|
|
(3.7
|
)
|
|
|
(12.3
|
)
|
|
|
(4.7
|
)
|
Portion of OTTI losses recognized in other comprehensive
income ("OCI")
|
0.4
|
|
|
|
(0.2
|
)
|
|
|
(1.2
|
)
|
|
|
(0.4
|
)
|
Net OTTI losses recognized in earnings
|
(4.0
|
)
|
|
|
(3.9
|
)
|
|
|
(13.5
|
)
|
|
|
(5.1
|
)
|
Net realized gains (losses), excluding OTTI losses
|
(7.6
|
)
|
|
|
0.1
|
|
|
|
(16.3
|
)
|
|
|
(21.4
|
)
|
Net realized gains (losses)
|
(11.6
|
)
|
|
|
(3.8
|
)
|
|
|
(29.8
|
)
|
|
|
(26.5
|
)
|
Total revenues
|
437.1
|
|
|
|
414.4
|
|
|
|
1,264.5
|
|
|
|
1,226.5
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Policy benefits
|
296.4
|
|
|
|
263.6
|
|
|
|
875.7
|
|
|
|
795.2
|
|
Policyholder dividends
|
60.6
|
|
|
|
57.0
|
|
|
|
155.7
|
|
|
|
171.8
|
|
Policy acquisition cost amortization
|
30.1
|
|
|
|
29.4
|
|
|
|
71.8
|
|
|
|
73.1
|
|
Interest expense on indebtedness
|
7.0
|
|
|
|
7.0
|
|
|
|
21.2
|
|
|
|
21.2
|
|
Other operating expenses
|
70.1
|
|
|
|
77.0
|
|
|
|
276.7
|
|
|
|
258.6
|
|
Total benefits and expenses
|
464.2
|
|
|
|
434.0
|
|
|
|
1,401.1
|
|
|
|
1,319.9
|
|
Income (loss) from continuing operations before income taxes
|
(27.1
|
)
|
|
|
(19.6
|
)
|
|
|
(136.6
|
)
|
|
|
(93.4
|
)
|
Income tax expense (benefit)
|
(17.0
|
)
|
|
|
2.6
|
|
|
|
(32.2
|
)
|
|
|
(21.8
|
)
|
Income (loss) from continuing operations
|
(10.1
|
)
|
|
|
(22.2
|
)
|
|
|
(104.4
|
)
|
|
|
(71.6
|
)
|
Income (loss) from discontinued operations, net of income taxes
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
(1.2
|
)
|
|
|
(1.5
|
)
|
Net income (loss)
|
(10.2
|
)
|
|
|
(22.5
|
)
|
|
|
(105.6
|
)
|
|
|
(73.1
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
5.5
|
|
|
|
(0.1
|
)
|
|
|
6.7
|
|
|
|
(0.2
|
)
|
Net income (loss) attributable to The Phoenix
Companies, Inc.
|
$
|
(15.7
|
)
|
|
|
$
|
(22.4
|
)
|
|
|
$
|
(112.3
|
)
|
|
|
$
|
(72.9
|
)
|
|
|
|
|
|
|
THE PHOENIX COMPANIES, INC.
|
Consolidated Interim Unaudited Statements of Operations and
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued from previous page)
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
($ in millions, except per share data)
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
|
2014
|
COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to The Phoenix
Companies, Inc.
|
|
|
|
$
|
(15.7
|
)
|
|
$
|
(22.4
|
)
|
|
|
$
|
(112.3
|
)
|
|
|
$
|
(72.9
|
)
|
Net income (loss) attributable to noncontrolling interests
|
|
|
|
5.5
|
|
|
(0.1
|
)
|
|
|
6.7
|
|
|
|
(0.2
|
)
|
Net income (loss)
|
|
|
|
(10.2
|
)
|
|
(22.5
|
)
|
|
|
(105.6
|
)
|
|
|
(73.1
|
)
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized investment gains (losses), net of related offsets
|
|
|
|
3.9
|
|
|
(14.4
|
)
|
|
|
(47.4
|
)
|
|
|
61.2
|
|
Net pension liability adjustment
|
|
|
|
4.0
|
|
|
1.7
|
|
|
|
7.1
|
|
|
|
5.1
|
|
Other comprehensive income (loss) before income taxes
|
|
|
|
7.9
|
|
|
(12.7
|
)
|
|
|
(40.3
|
)
|
|
|
66.3
|
|
Less: Income tax expense (benefit) related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized investment gains (losses), net of related offsets
|
|
|
|
(21.8
|
)
|
|
(5.5
|
)
|
|
|
(39.2
|
)
|
|
|
60.6
|
|
Net pension liability adjustment
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total income tax expense (benefit)
|
|
|
|
(21.8
|
)
|
|
(5.5
|
)
|
|
|
(39.2
|
)
|
|
|
60.6
|
|
Other comprehensive income (loss), net of income taxes
|
|
|
|
29.7
|
|
|
(7.2
|
)
|
|
|
(1.1
|
)
|
|
|
5.7
|
|
Comprehensive income (loss)
|
|
|
|
19.5
|
|
|
(29.7
|
)
|
|
|
(106.7
|
)
|
|
|
(67.4
|
)
|
Less: Comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
|
5.5
|
|
|
(0.1
|
)
|
|
|
6.7
|
|
|
|
(0.2
|
)
|
Comprehensive income (loss) attributable to The
Phoenix Companies, Inc.
|
|
|
|
$
|
14.0
|
|
|
$
|
(29.6
|
)
|
|
|
$
|
(113.4
|
)
|
|
|
$
|
(67.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations - basic
|
|
|
|
(2.71
|
)
|
|
(3.85
|
)
|
|
|
(19.32
|
)
|
|
|
(12.42
|
)
|
Income (loss) from continuing operations - diluted
|
|
|
|
(2.71
|
)
|
|
(3.85
|
)
|
|
|
(19.32
|
)
|
|
|
(12.42
|
)
|
Income (loss) from discontinued operations - basic
|
|
|
|
(0.02
|
)
|
|
(0.05
|
)
|
|
|
(0.21
|
)
|
|
|
(0.26
|
)
|
Income (loss) from discontinued operations - diluted
|
|
|
|
(0.02
|
)
|
|
(0.05
|
)
|
|
|
(0.21
|
)
|
|
|
(0.26
|
)
|
Net income (loss) attributable to The Phoenix Companies, Inc.
- basic
|
|
|
|
(2.73
|
)
|
|
(3.90
|
)
|
|
|
(19.53
|
)
|
|
|
(12.68
|
)
|
Net income (loss) attributable to The Phoenix Companies, Inc.
- diluted
|
|
|
|
(2.73
|
)
|
|
(3.90
|
)
|
|
|
(19.53
|
)
|
|
|
(12.68
|
)
|
Basic weighted-average common shares outstanding (in
thousands)
|
|
|
|
5,751
|
|
|
5,750
|
|
|
|
5,751
|
|
|
|
5,747
|
|
Diluted weighted-average common shares outstanding (in
thousands)
|
|
|
|
5,751
|
|
|
5,750
|
|
|
|
5,751
|
|
|
|
5,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE PHOENIX COMPANIES, INC.
|
Consolidated Interim Unaudited Balance Sheets
|
|
|
($ in millions, except share data)
|
|
|
|
September 30, 2015
|
|
|
December 31, 2014
|
ASSETS:
|
|
|
|
|
|
|
|
Available-for-sale debt securities, at fair value (cost of $12,155.9
and $11,978.0)
|
|
|
|
$
|
12,590.7
|
|
|
|
$
|
12,679.3
|
|
Available-for-sale equity securities, at fair value (cost of $151.2
and $156.0)
|
|
|
|
170.9
|
|
|
|
179.5
|
|
Short-term investments
|
|
|
|
229.5
|
|
|
|
149.7
|
|
Limited partnerships and other investments
|
|
|
|
544.5
|
|
|
|
542.8
|
|
Policy loans, at unpaid principal balances
|
|
|
|
2,350.5
|
|
|
|
2,352.1
|
|
Derivative instruments
|
|
|
|
67.1
|
|
|
|
161.3
|
|
Fair value investments
|
|
|
|
185.6
|
|
|
|
235.4
|
|
Total investments
|
|
|
|
16,138.8
|
|
|
|
16,300.1
|
|
Cash and cash equivalents
|
|
|
|
465.2
|
|
|
|
450.0
|
|
Accrued investment income
|
|
|
|
219.3
|
|
|
|
176.7
|
|
Reinsurance recoverable
|
|
|
|
575.9
|
|
|
|
559.1
|
|
Deferred policy acquisition costs
|
|
|
|
895.3
|
|
|
|
848.6
|
|
Deferred income taxes, net
|
|
|
|
73.5
|
|
|
|
34.2
|
|
Other assets
|
|
|
|
342.4
|
|
|
|
311.3
|
|
Discontinued operations assets
|
|
|
|
44.8
|
|
|
|
45.2
|
|
Separate account assets
|
|
|
|
2,533.2
|
|
|
|
3,020.7
|
|
Total assets
|
|
|
|
$
|
21,288.4
|
|
|
|
$
|
21,745.9
|
|
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
Policy liabilities and accruals
|
|
|
|
$
|
12,350.4
|
|
|
|
$
|
12,417.6
|
|
Policyholder deposit funds
|
|
|
|
4,319.5
|
|
|
|
3,955.0
|
|
Dividend obligations
|
|
|
|
813.0
|
|
|
|
916.8
|
|
Indebtedness
|
|
|
|
378.9
|
|
|
|
378.9
|
|
Pension and post-employment liabilities
|
|
|
|
369.3
|
|
|
|
380.0
|
|
Other liabilities
|
|
|
|
249.3
|
|
|
|
289.8
|
|
Discontinued operations liabilities
|
|
|
|
39.8
|
|
|
|
40.5
|
|
Separate account liabilities
|
|
|
|
2,533.2
|
|
|
|
3,020.7
|
|
Total liabilities
|
|
|
|
21,053.4
|
|
|
|
21,399.3
|
|
|
|
|
|
|
|
|
|
CONTINGENCIES AND COMMITMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
Common stock, $.01 par value: 5.8 million and 5.8 million shares
outstanding
|
|
|
|
0.1
|
|
|
|
0.1
|
|
Additional paid-in capital
|
|
|
|
2,632.8
|
|
|
|
2,632.8
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(235.5
|
)
|
|
|
(234.4
|
)
|
Retained earnings (accumulated deficit)
|
|
|
|
(2,001.3
|
)
|
|
|
(1,889.0
|
)
|
Treasury stock, at cost: 0.7 million and 0.7 million shares
|
|
|
|
(182.9
|
)
|
|
|
(182.9
|
)
|
Total The Phoenix Companies, Inc. stockholders' equity
|
|
|
|
213.2
|
|
|
|
326.6
|
|
Noncontrolling interests
|
|
|
|
21.8
|
|
|
|
20.0
|
|
Total stockholders' equity
|
|
|
|
235.0
|
|
|
|
346.6
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
21,288.4
|
|
|
|
$
|
21,745.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006776/en/
[ Back To TMCnet.com's Homepage ]
|