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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THE PHOENIX COMPANIES, INC.
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|||
Date: August 6, 2014
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By:
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/s/ Bonnie J. Malley | |
Name: Bonnie J. Malley | |||
Title: Executive Vice President
and Chief Financial Officer
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|||
N E W S R E L E A SE |
For Immediate Release
|
One American Row
PO Box 5056
Hartford CT 06102-5056
www.phoenixwm.com
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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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Net Income Attributable to The Phoenix Companies, Inc. of $5.1 million for 2013
|
●
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Investor Conference Call Scheduled for Aug. 15, 2014 at 10 a.m. EDT
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●
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A positive unlock of $108.1 million resulting from the company’s annual actuarial assumption review, driven primarily by improved mortality assumptions partially offset by decreased premium persistency assumptions, primarily in the universal life block.
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●
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Restatement expenses and audit fees of $88.6 million, comprised of $62.9 million of restatement expenses incurred during 2013 and $25.7 million of fees relating to the 2013 audit.
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($ in millions, except per share data)
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2013
|
2012
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||||||
Net income (loss)
|
$ | 4.7 | $ | (167.9 | ) | |||
Less: Net income (loss) attributable to noncontrolling interests
|
(0.4 | ) | 0.6 | |||||
Net income (loss) attributable to The Phoenix Companies, Inc.
|
$ | 5.1 | $ | (168.5 | ) | |||
EARNINGS PER SHARE SUMMARY:
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||||||||
Net income (loss) attributable to The Phoenix Companies, Inc.
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||||||||
Basic
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$ | 0.89 | $ | (29.20 | ) | |||
Diluted
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$ | 0.88 | $ | (29.20 | ) | |||
Net income (loss)
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||||||||
Basic
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$ | 0.82 | $ | (29.10 | ) | |||
Diluted
|
$ | 0.82 | $ | (29.10 | ) | |||
Weighted average shares outstanding
(in thousands)
|
||||||||
Basic
|
5,735 | 5,770 | ||||||
Diluted
|
5,764 | 5,770 |
●
|
Annuity deposits of $682.9 million for 2013 compared with $824.2 million for 2012.
|
●
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Net annuity flows (deposits less surrenders) of $85.1 million for 2013 compared with $295.6 million for 2012.
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●
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Annuity funds under management of $5.5 billion at Dec. 31, 2013 compared with $5.0 billion at Dec. 31, 2012.
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●
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Life insurance annualized premium of $2.4 million for 2013 compared with $2.9 million for 2012.
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●
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Gross life insurance in-force of $103.9 billion at Dec. 31, 2013 compared with $115.3 billion at Dec. 31, 2012.
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●
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2013 mortality was favorable compared with expectations. Open block experience was favorable, driven by universal life results, and closed block experience was modestly unfavorable.
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●
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2013 total individual life surrenders at 4.6%, and closed block life policies at 4.2% compared with 5.8% and 5.5% for 2012.
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●
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2013 annuity surrenders at 11.3% compared with 11.0% for 2012.
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●
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Holding company liquidity was $181.5 million at Dec. 31, 2013, comprised of cash and non-affiliated securities of $166.8 million and an additional $14.7 million in tax receivables from PLIC.
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●
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Dividend capacity from PLIC to the holding company is $58.7 million for 2014.
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●
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Saybrus Partners EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), including inter-company revenues, was $3.5 million for 2013 compared with $3.2 million for 2012.
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Balance Sheet
($ in millions)
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December 31,
2013
|
December 31,
2012
|
Change
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|||||||||
Total Assets
|
$ | 21,624.6 | $ | 21,629.8 | $ | (5.2 | ) | |||||
Total Liabilities
|
$ | 21,040.9 | $ | 21,119.3 | $ | (78.4 | ) | |||||
Indebtedness
|
$ | 378.8 | $ | 378.8 | -- | |||||||
Total Stockholders’ Equity
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$ | 583.7 | $ | 510.5 | $ | 73.2 | ||||||
Total Stockholders’ Equity excluding Accumulated OCI
|
$ | 768.9 | $ | 759.8 | $ | 9.1 | ||||||
Debt to Total Capital1
|
33.0 | % | 33.3 | % | (0.3 | )% |
Consolidated Statement of Income
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|||||||
($ in millions, except per share data)
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|||||||
2013
|
2012
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||||||
REVENUES:
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|||||||
Premiums
|
$
|
351.6
|
$
|
402.3
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|||
Fee income
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551.2
|
556.2
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|||||
Net investment income
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787.2
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829.3
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|||||
Net realized investment gains (losses):
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|||||||
Total other-than-temporary impairment (“OTTI”) losses
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(7.5
|
)
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(51.7
|
)
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|||
Portion of OTTI losses recognized in other comprehensive income (“OCI”)
|
(4.8
|
) |
22.9
|
||||
Net OTTI losses recognized in earnings
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(12.3
|
)
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(28.8
|
)
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|||
Net realized investment gains (losses), excluding OTTI losses
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33.6
|
18.3
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|||||
Net realized investment gains (losses)
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21.3
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(10.5
|
)
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||||
Gain on debt repurchase
|
—
|
11.9
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|||||
Total revenues
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1,711.3
|
1,789.2
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|||||
BENEFITS AND EXPENSES:
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|||||||
Policy benefits, excluding policyholder dividends
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1,026.5
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1,166.1
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|||||
Policyholder dividends
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189.7
|
294.8
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|||||
Policy acquisition cost amortization
|
113.7
|
200.0
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|||||
Interest expense on indebtedness
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28.9
|
30.8
|
|||||
Other operating expenses
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335.6
|
253.5
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|||||
Total benefits and expenses
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1,694.4
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1,945.2
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|||||
Income (loss) from continuing operations before income taxes
|
16.9
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(156.0
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)
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||||
Income tax expense (benefit)
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9.6
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(3.7
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)
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||||
Income (loss) from continuing operations
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7.3
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(152.3
|
)
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||||
Loss from discontinued operations, net of income taxes
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(2.6
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)
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(15.6
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)
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|||
Net income (loss)
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4.7
|
(167.9
|
)
|
||||
Less: Net income (loss) attributable to noncontrolling interests
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(0.4
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)
|
0.6
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||||
Net income (loss) attributable to The Phoenix Companies, Inc.
|
$
|
5.1
|
$
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(168.5
|
)
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GAIN (LOSS) PER SHARE: [1]
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|||||||
Gain (loss) from continuing operations – basic
|
$
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1.27
|
$
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(26.40
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)
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||
Gain (loss) from continuing operations – diluted
|
$
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1.27
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$
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(26.40
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)
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||
Loss from discontinued operations – basic
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$
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(0.45
|
)
|
$
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(2.70
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)
|
|
Loss from discontinued operations – diluted
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$
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(0.45
|
)
|
$
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(2.70
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)
|
|
Net income (loss) attributable to The Phoenix Companies, Inc. – basic
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$
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0.89
|
$
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(29.20
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)
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||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted
|
$
|
0.88
|
$
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(29.20
|
)
|
||
Basic weighted-average common shares outstanding (in thousands)
|
5,735
|
5,770
|
|||||
Diluted weighted-average common shares outstanding (in thousands)
|
5,764
|
5,770
|
[1]
|
All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to our consolidated financial statements for additional information on the reverse stock split.
|
Consolidated Balance Sheets
|
|||||||
($ in millions, except share data)
|
|||||||
2013
|
2012
|
||||||
ASSETS:
|
|||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,418.0 and $11,018.4)
|
$
|
11,808.6
|
$
|
11,956.4
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|||
Available-for-sale equity securities, at fair value (cost of $40.4 and $27.5)
|
61.8
|
34.8
|
|||||
Short-term investments
|
361.6
|
699.6
|
|||||
Limited partnerships and other investments
|
561.9
|
577.3
|
|||||
Policy loans, at unpaid principal balances
|
2,350.3
|
2,354.7
|
|||||
Derivative instruments
|
243.1
|
157.4
|
|||||
Fair value investments
|
210.8
|
201.5
|
|||||
Total investments
|
15,598.1
|
15,981.7
|
|||||
Cash and cash equivalents
|
496.4
|
246.4
|
|||||
Accrued investment income
|
170.4
|
170.3
|
|||||
Receivables
|
66.0
|
82.9
|
|||||
Reinsurance recoverable
|
603.3
|
583.6
|
|||||
Deferred policy acquisition costs
|
940.6
|
902.2
|
|||||
Deferred income taxes, net
|
70.0
|
49.4
|
|||||
Other assets
|
233.9
|
243.1
|
|||||
Discontinued operations assets
|
43.6
|
53.7
|
|||||
Separate account assets
|
3,402.3
|
3,316.5
|
|||||
Total assets
|
$
|
21,624.6
|
$
|
21,629.8
|
|||
LIABILITIES:
|
|||||||
Policy liabilities and accruals
|
$
|
12,437.6
|
$
|
12,656.7
|
|||
Policyholder deposit funds
|
3,429.7
|
3,040.7
|
|||||
Dividend obligations
|
705.9
|
1,003.6
|
|||||
Indebtedness
|
378.8
|
378.8
|
|||||
Pension and postretirement liabilities
|
315.9
|
429.3
|
|||||
Other liabilities
|
333.0
|
245.3
|
|||||
Discontinued operations liabilities
|
37.7
|
48.4
|
|||||
Separate account liabilities
|
3,402.3
|
3,316.5
|
|||||
Total liabilities
|
21,040.9
|
21,119.3
|
|||||
COMMITMENTS AND CONTINGENCIES (Notes 22, 23 and 24)
|
|||||||
STOCKHOLDERS’ EQUITY:
|
|||||||
Common stock, $.01 par value: 5.7 million and 5.7 million shares outstanding [1]
|
0.1
|
0.1
|
|||||
Additional paid-in capital
|
2,633.1
|
2,633.1
|
|||||
Accumulated other comprehensive loss
|
(185.2
|
)
|
(249.3
|
)
|
|||
Accumulated deficit
|
(1,692.1
|
)
|
(1,697.2
|
)
|
|||
Treasury stock, at cost: 0.7 million and 0.7 million shares [1]
|
(182.9
|
)
|
(182.9
|
)
|
|||
Total The Phoenix Companies, Inc. stockholders’ equity
|
573.0
|
503.8
|
|||||
Noncontrolling interests
|
10.7
|
6.7
|
|||||
Total stockholders’ equity
|
583.7
|
510.5
|
|||||
Total liabilities and stockholders’ equity
|
$
|
21,624.6
|
$
|
21,629.8
|