The Phoenix Cos. Inc. says profitability for its primary life unit returned to black in 2014.
For 12 months ended Dec. 31, Phoenix Life Insurance said Monday it posted statutory net income of $132.5 million vs. a net loss of $21 million for 2013.
Phoenix had a statutory net gain last year from operations of $116.2 million vs. $79.8 million a year earlier.
Phoenix reported its 2014 operating performance to New York state insurance regulators, where it also operates.
“PLIC’s statutory results improved in 2014, including both earnings and capital,” Phoenix Cos. President and CEO James D. Wehr said in a statement. “Phoenix’s key operating metrics for the year also were solid, with 13 percent annual growth in annuity deposits and strong net annuity flows, favorable mortality, very low life surrender rates and a positive trajectory for new life sales.’’
Phoenix Cos. also disclosed that its liquidity – a combination of cash and marketable securities – dropped to $78.3 million at yearend 2014 vs. $181.5 million a year earlier. Wehr blamed the liquidity drop on $100.2 million in expenses tied to restatement and Securities and Exchange Commission reporting catch up work, plus $32.6 million in net tax settlements to its life companies and a $15 million capital infusion into its PHL Variable Life unit.
Those were partly offset, he said, by $56 million in 2014 dividends collected from Phoenix Life.
Phoenix also repeated its intention to file its 10-K annual report for 2014 with the SEC by March 31, as per an earlier SEC filing extension.
That report, it said, will include restated financial statements for the quarter and year ended Dec. 31, 2013 and the second quarter ended June 30, 2014 due to the identification of errors determined to be material. In addition, as required, the company will revise other periods that are not expected to contain material errors.
