Delaware
|
001-16517
|
06-1599088
|
(State or other jurisdiction
|
(Commission File Number)
|
(IRS Employer
|
of incorporation)
|
Identification No.)
|
One American Row, Hartford, CT
|
06102 -5056
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(860) 403-5000
|
NOT APPLICABLE
|
(Former name or former address, if changed since last report)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
THE PHOENIX COMPANIES, INC.
|
|||
Date: November 7, 2014
|
By:
|
/s/ Bonnie J. Malley
|
|
Name: Bonnie J. Malley
|
|||
Title: Executive Vice President, Chief Financial Officer
|
|||
NEWS RELEASE | |
For Immediate Release
|
One American Row
PO Box 5056
Hartford CT 06102-5056
www.phoenixwm.com
|
Contacts:
|
|
Media Relations
Alice S. Ericson, 860-403-5946
alice.ericson@phoenixwm.com
|
Investor Relations
Naomi Baline Kleinman, 860-403-7100
pnx.ir@phoenixwm.com
|
●
|
Expenses relating to the restatement and SEC reporting catch up of $18.1 million incurred and 2014 audit fees of $6.3 million accrued during the second quarter of 2014.
|
●
|
Modestly unfavorable mortality in the universal life block in the quarter, although in line with expectations for the first half of 2014.
|
●
|
A continued low level of impairments and a $18.4 million tax benefit recorded in accordance with U.S. GAAP intraperiod tax allocation rules partially offsetting the negative performance.
|
($ in millions, except per share data)
|
Second Quarter 2014
|
First Quarter 2014
|
Second Quarter 2013
|
|||||||||
Net loss
|
$ | (14.3 | ) | $ | (32.3 | ) | $ | (32.9 | ) | |||
Less: Net income (loss) attributable to
noncontrolling interests
|
-- | 1.0 | (0.1 | ) | ||||||||
Net loss attributable to The Phoenix
Companies, Inc.
|
$ | (14.3 | ) | $ | (33.3 | ) | $ | (32.8 | ) | |||
EARNINGS PER SHARE SUMMARY:
|
||||||||||||
Net loss attributable to The Phoenix
Companies, Inc.
|
||||||||||||
Basic
|
$ | (2.49 | ) | $ | (5.80 | ) | $ | (5.71 | ) | |||
Diluted
|
$ | (2.49 | ) | $ | (5.80 | ) | $ | (5.71 | ) | |||
Net loss
|
||||||||||||
Basic
|
$ | (2.49 | ) | $ | (5.63 | ) | $ | (5.73 | ) | |||
Diluted
|
$ | (2.49 | ) | $ | (5.63 | ) | $ | (5.73 | ) | |||
Weighted average shares outstanding
(in thousands)
|
||||||||||||
Basic
|
5,749 | 5,742 | 5,742 | |||||||||
Diluted
|
5,749 | 5,742 | 5,742 |
($ in millions, unless noted otherwise)
|
As of or for the
Qtr Ended
June 30, 2014
|
As of or for the
Qtr Ended
Mar. 31, 2014
|
As of or for the
Qtr Ended
June 30, 2013
|
|||||||||
Annuity deposits
|
$ | 201.0 | $ | 170.4 | $ | 174.0 | ||||||
Net annuity flows (deposits less surrenders)
|
$ | 30.6 | $ | (2.3 | ) | $ | 22.1 | |||||
Annuity funds under management ($ in billions)
|
$ | 5.6 | $ | 5.5 | $ | 5.2 | ||||||
Life insurance annualized premium
|
$ | 0.7 | $ | 0.5 | $ | 0.9 | ||||||
Gross life insurance in force ($ in billions)
|
$ | 100.7 | $ | 102.4 | $ | 108.6 | ||||||
Total individual life surrenders (annualized)
|
3.9 | % | 4.8 | % | 4.7 | % | ||||||
Total closed block life surrenders (annualized)
|
3.6 | % | 4.7 | % | 4.4 | % | ||||||
Total annuity surrenders (annualized)
|
12.2 | % | 12.5 | % | 11.6 | % | ||||||
Holding company cash and non-affiliated
securities
|
$ | 154.4 | $ | 175.6 | $ | 177.5 | ||||||
Saybrus Partners EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization)
|
$ | 2.0 | $ | 0.4 | $ | 0.9 | ||||||
Saybrus Partners revenue
|
$ | 9.6 | $ | 7.3 | $ | 6.4 |
($ in millions)
|
Second Quarter
2014
|
First Quarter
2014
|
Second Quarter
2013
|
|||||||||
Net realized investment gains (losses)
|
$ | 4.1 | $ | (25.7 | ) | $ | 7.2 | |||||
Net other-than-temporary impairment losses
|
$ | (1.0 | ) | $ | (0.2 | ) | $ | (2.5 | ) | |||
Derivative gains (losses)
|
$ | (2.6 | ) | $ | (35.5 | ) | $ | 10.4 |
Balance Sheet
($ in millions)
|
June 30,
2014
|
Dec. 31,
2013
|
Change
|
|||||||||
Total Assets
|
$ | 21,906.4 | $ | 21,624.6 | $ | 281.8 | ||||||
Total Liabilities
|
$ | 21,361.6 | $ | 21,040.9 | $ | 320.7 | ||||||
Indebtedness
|
$ | 378.9 | $ | 378.8 | $ | 0.1 | ||||||
Total Stockholders’ Equity
|
$ | 544.8 | $ | 583.7 | $ | (38.9 | ) |
●
|
Phoenix expects to return to current SEC filer status with the filing of its third quarter 2014 Form 10-Q with the SEC no later than Dec. 5, 2014.
|
●
|
PHL Variable also filed its second quarter 2014 Form 10-Q with the SEC today and expects to return to current SEC filer status with the filing of its third quarter 2014 Form 10-Q with the SEC no later than Dec. 12, 2014.
|
June 30,
2014
|
December 31,
2013
|
|||||||
ASSETS:
|
||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,733.4 and $11,418.0)
|
$ | 12,454.1 | $ | 11,808.6 | ||||
Available-for-sale equity securities, at fair value (cost of $40.0 and $40.4)
|
68.5 | 61.8 | ||||||
Short-term investments
|
504.8 | 361.6 | ||||||
Limited partnerships and other investments
|
557.9 | 561.9 | ||||||
Policy loans, at unpaid principal balances
|
2,325.4 | 2,350.3 | ||||||
Derivative instruments
|
175.0 | 243.1 | ||||||
Fair value investments
|
207.4 | 210.8 | ||||||
Total investments
|
16,293.1 | 15,598.1 | ||||||
Cash and cash equivalents
|
330.2 | 496.4 | ||||||
Accrued investment income
|
185.7 | 170.4 | ||||||
Reinsurance recoverable
|
594.7 | 603.3 | ||||||
Deferred policy acquisition costs
|
869.0 | 940.6 | ||||||
Deferred income taxes, net
|
29.4 | 70.0 | ||||||
Other assets
|
279.0 | 299.9 | ||||||
Discontinued operations assets
|
39.9 | 43.6 | ||||||
Separate account assets
|
3,285.4 | 3,402.3 | ||||||
Total assets
|
$ | 21,906.4 | $ | 21,624.6 | ||||
LIABILITIES:
|
||||||||
Policy liabilities and accruals
|
$ | 12,429.0 | $ | 12,437.6 | ||||
Policyholder deposit funds
|
3,658.7 | 3,429.7 | ||||||
Dividend obligations
|
895.6 | 705.9 | ||||||
Indebtedness
|
378.9 | 378.8 | ||||||
Pension and postretirement liabilities
|
302.5 | 315.9 | ||||||
Other liabilities
|
376.4 | 333.0 | ||||||
Discontinued operations liabilities
|
35.1 | 37.7 | ||||||
Separate account liabilities
|
3,285.4 | 3,402.3 | ||||||
Total liabilities
|
21,361.6 | 21,040.9 | ||||||
CONTINGENCIES AND COMMITMENTS (Notes 20 & 21)
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock, $.01 par value: 5.7 million and 5.7 million shares outstanding
|
0.1 | 0.1 | ||||||
Additional paid-in capital
|
2,632.7 | 2,633.1 | ||||||
Accumulated other comprehensive income (loss)
|
(177.2 | ) | (185.2 | ) | ||||
Accumulated deficit
|
(1,739.7 | ) | (1,692.1 | ) | ||||
Treasury stock, at cost: 0.7 million and 0.7 million shares
|
(182.9 | ) | (182.9 | ) | ||||
Total The Phoenix Companies, Inc. stockholders’ equity
|
533.0 | 573.0 | ||||||
Noncontrolling interests
|
11.8 | 10.7 | ||||||
Total stockholders’ equity
|
544.8 | 583.7 | ||||||
Total liabilities and stockholders’ equity
|
$ | 21,906.4 | $ | 21,624.6 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||
REVENUES:
|
|||||||||||||||
Premiums
|
$ | 83.2 |
$
|
87.4
|
$
|
162.8
|
$
|
170.1
|
|||||||
Fee income
|
134.2
|
132.6
|
269.0
|
268.9
|
|||||||||||
Net investment income
|
195.3
|
194.0
|
408.8
|
385.1
|
|||||||||||
Net realized investment gains (losses):
|
|||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses
|
(1.0
|
)
|
—
|
(1.0
|
)
|
(0.9
|
)
|
||||||||
Portion of OTTI gains (losses) recognized in
other comprehensive income (“OCI”)
|
—
|
(2.5
|
)
|
(0.2
|
)
|
(4.2
|
)
|
||||||||
Net OTTI losses recognized in earnings
|
(1.0
|
)
|
(2.5
|
)
|
(1.2
|
)
|
(5.1
|
)
|
|||||||
Net realized investment gains (losses), excluding OTTI losses
|
5.1
|
9.7
|
(20.4
|
)
|
(3.6
|
)
|
|||||||||
Net realized investment gains (losses)
|
4.1
|
7.2
|
(21.6
|
)
|
(8.7
|
)
|
|||||||||
Total revenues
|
416.8
|
421.2
|
819.0
|
815.4
|
|||||||||||
BENEFITS AND EXPENSES:
|
|||||||||||||||
Policy benefits
|
298.5
|
272.8
|
534.5
|
591.6
|
|||||||||||
Policyholder dividends
|
42.4
|
51.3
|
116.2
|
55.7
|
|||||||||||
Policy acquisition cost amortization
|
17.4
|
32.2
|
39.8
|
77.5
|
|||||||||||
Interest expense on indebtedness
|
7.1
|
7.1
|
14.2
|
14.8
|
|||||||||||
Other operating expenses
|
85.5
|
91.8
|
183.4
|
172.6
|
|||||||||||
Total benefits and expenses
|
450.9
|
455.2
|
888.1
|
912.2
|
|||||||||||
Income (loss) from continuing operations before income taxes
|
(34.1
|
)
|
(34.0
|
)
|
(69.1
|
)
|
(96.8
|
)
|
|||||||
Income tax expense (benefit)
|
(20.4
|
)
|
(1.3
|
)
|
(24.0
|
)
|
2.9
|
||||||||
Income (loss) from continuing operations
|
(13.7
|
)
|
(32.7
|
)
|
(45.1
|
)
|
(99.7
|
)
|
|||||||
Income (loss) from discontinued operations, net of income taxes
|
(0.6
|
)
|
(0.2
|
)
|
(1.5
|
)
|
(2.0
|
)
|
|||||||
Net income (loss)
|
(14.3
|
)
|
(32.9
|
)
|
(46.6
|
)
|
(101.7
|
)
|
|||||||
Less: Net income (loss) attributable to noncontrolling interests
|
—
|
(0.1
|
)
|
1.0
|
(0.2
|
)
|
|||||||||
Net income (loss) attributable to
The Phoenix Companies, Inc.
|
$ | (14.3 |
)
|
$
|
(32.8
|
)
|
$
|
(47.6
|
)
|
$
|
(101.5
|
)
|
(Continued from previous page)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||
COMPREHENSIVE INCOME (LOSS):
|
|||||||||||||||
Net income (loss) attributable to
The Phoenix Companies, Inc.
|
$
|
(14.3
|
)
|
$
|
(32.8
|
)
|
$
|
(47.6
|
)
|
$
|
(101.5
|
)
|
|||
Net income (loss) attributable to noncontrolling interests
|
—
|
(0.1
|
)
|
1.0
|
(0.2
|
)
|
|||||||||
Net income (loss)
|
(14.3
|
)
|
(32.9
|
)
|
(46.6
|
)
|
(101.7
|
)
|
|||||||
Other comprehensive income (loss) before income taxes:
|
|||||||||||||||
Unrealized investment gains (losses), net of related offsets
|
52.8
|
(40.4
|
)
|
69.7
|
(47.9
|
)
|
|||||||||
Net pension liability adjustment
|
1.8
|
2.6
|
3.4
|
6.4
|
|||||||||||
Other comprehensive income (loss) before income taxes
|
54.6
|
(37.8
|
)
|
73.1
|
(41.5
|
)
|
|||||||||
Less: Income tax expense (benefit) related to:
|
|||||||||||||||
Unrealized investment gains (losses), net of related offsets
|
36.4
|
(24.3
|
)
|
65.1
|
(16.5
|
)
|
|||||||||
Net pension liability adjustment
|
—
|
—
|
—
|
—
|
|||||||||||
Total income tax expense (benefit)
|
36.4
|
(24.3
|
)
|
65.1
|
(16.5
|
)
|
|||||||||
Other comprehensive income (loss), net of income taxes
|
18.2
|
(13.5
|
)
|
8.0
|
(25.0
|
)
|
|||||||||
Comprehensive income (loss)
|
3.9
|
(46.4
|
)
|
(38.6
|
)
|
(126.7
|
)
|
||||||||
Less: Comprehensive income (loss) attributable to
noncontrolling interests
|
—
|
(0.1
|
)
|
1.0
|
(0.2
|
)
|
|||||||||
Comprehensive income (loss) attributable to
The Phoenix Companies, Inc.
|
$
|
3.9
|
$
|
(46.3
|
)
|
$
|
(39.6
|
)
|
$
|
(126.5
|
)
|
||||
EARNINGS (LOSS) PER SHARE:
|
|||||||||||||||
Income (loss) from continuing operations – basic
|
$
|
(2.38
|
)
|
$
|
(5.69
|
)
|
$
|
(7.85
|
)
|
$
|
(17.36
|
)
|
|||
Income (loss) from continuing operations – diluted
|
$
|
(2.38
|
)
|
$
|
(5.69
|
)
|
$
|
(7.85
|
)
|
$
|
(17.36
|
)
|
|||
Income (loss) from discontinued operations – basic
|
$
|
(0.10
|
)
|
$
|
(0.03
|
)
|
$
|
(0.26
|
)
|
$
|
(0.35
|
)
|
|||
Income (loss) from discontinued operations – diluted
|
$
|
(0.10
|
)
|
$
|
(0.03
|
)
|
$
|
(0.26
|
)
|
$
|
(0.35
|
)
|
|||
Net income (loss) attributable to
The Phoenix Companies, Inc.– basic
|
$
|
(2.49
|
)
|
$
|
(5.71
|
)
|
$
|
(8.29
|
)
|
$
|
(17.68
|
)
|
|||
Net income (loss) attributable to
The Phoenix Companies, Inc. – diluted
|
$
|
(2.49
|
)
|
$
|
(5.71
|
)
|
$
|
(8.29
|
)
|
$
|
(17.68
|
)
|
|||
Basic weighted-average common shares outstanding
(in thousands)
|
5,749
|
5,742
|
5,745
|
5,742
|
|||||||||||
Diluted weighted-average common shares outstanding
(in thousands)
|
5,749
|
5,742
|
5,745
|
5,742
|