Delaware
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001-16517
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06-1599088
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(State or other jurisdiction
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(Commission File Number)
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(IRS Employer
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of incorporation)
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Identification No.)
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One American Row, Hartford, CT
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06102 -5056
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(860) 403-5000
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NOT APPLICABLE
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(Former name or former address, if changed since last report)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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News Release of The Phoenix Companies, Inc. dated March 15, 2013.
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THE PHOENIX COMPANIES, INC.
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Date: March 15, 2013
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By:
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/s/ Bonnie J. Malley |
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Name:
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Bonnie J. Malley
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Title:
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Executive Vice President
and Chief Financial Officer
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Contacts: | |
Media Relations
Alice S. Ericson, 860-403-5946
alice.ericson@phoenixwm.com
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Investor Relations
Naomi Baline Kleinman, 860-403-7100
pnx.ir@phoenixwm.com
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·
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Filings delayed due to scope and complexity of restatement
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·
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Will provide update on or before April 30, 2013
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·
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Phoenix Life Insurance Company unaudited statutory results filed with state regulators
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·
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Estimated fourth quarter and full year 2012 operating metrics provided for The Phoenix Companies, Inc.
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●
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Phoenix initiated the restatement to correct certain errors relating to the classification of items on the consolidated statement of cash flows in the prior periods. The company currently estimates consolidated cash and cash equivalents as of June 30, 2012 will be approximately $210 million, which is approximately $39 million less than previously reported in its second quarter 2012 Form 10-Q. The change is driven by balance sheet reclassifications of assets between cash and other assets or other liabilities. These reclassifications were in the operating subsidiaries, and there was no impact on holding company cash. In addition, there was no impact on consolidated stockholders’ equity.
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●
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Phoenix is adjusting the financial statements for errors previously identified and recording the adjustments in the appropriate historical period. It also has identified additional errors affecting prior periods including actuarial valuation of certain insurance liabilities and deferred policy acquisition cost assets, accounting for complex reinsurance transactions, and valuation of certain private debt securities and derivative instruments. The current estimated impact of quantified corrections on reported consolidated stockholders’ equity as of June 30, 2012 is a reduction of less than 1% of the amount previously reported in Phoenix’s second quarter 2012 Form 10-Q. The impact of these corrections on any individual period could be material. Since the restatement work is not complete, the estimated impact on consolidated stockholders’ equity and consolidated cash and cash equivalents is subject to additional adjustments that could be material and adverse.
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●
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Phoenix continues to assess its disclosure controls and procedures and internal control over financial reporting, and believes it has identified multiple material weaknesses that will be reported in its 2012 Form 10-K.
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The company filed a Current Report on Form 8-K/A today that details the current status of the restatement.
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Statutory surplus and asset valuation reserve was $922.5 million at Dec. 31, 2012, net of the $71.8 million in dividends paid to the holding company during the year and the repurchase of $48.3 million par amount of PLIC’s outstanding 7.15% surplus notes due 2034. Statutory surplus and asset valuation reserve was $845.7 million at Dec. 31, 2011.
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●
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Risk-based capital ratio was 379% at Dec. 31, 2012.
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●
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Statutory net gain from operations was $160.5 million, and statutory net income was $156.2 million for the year ended Dec. 31, 2012.
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Annuity deposits of $193.2 million for the fourth quarter of 2012 and $830.0 million for full year 2012.
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Net annuity flows (deposits less surrenders) of $62.0 million for the fourth quarter of 2012 and $294.6 million for full year 2012.
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Annuity funds under management of $5.0 billion at Dec. 31, 2012.
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Life insurance annualized premium of $0.8 million for the fourth quarter of 2012 and $2.7 million for the full year 2012. Gross life insurance in-force at Dec. 31, 2012 of $113.3 billion.
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Fourth quarter 2012 mortality that was $8 million unfavorable to expectations. Full year 2012 mortality that was modestly unfavorable to expectations, and two-year results that were modestly favorable.
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Fourth quarter 2012 total individual life surrenders at an annualized rate of 6.2%, and closed block life policies at an annualized rate of 5.8%. Full year 2012 total individual life surrenders at 5.8%, and closed block life policies at 5.4%.
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●
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Fourth quarter 2012 annuity surrenders at an annualized rate of 10.5%, and full year 2012 annuity surrenders at 11.1%.
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Holding company cash and securities of $144.5 million at Dec. 31, 2012.
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Saybrus Partners EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), including inter-company revenues, of $1.8 million for the fourth quarter of 2012 and $3.3 million of EBITDA for full year 2012.
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