Correction: This story has been updated to reflect a year-over-year net income comparison instead of quarter-to-quarter.
Hartford insurer Phoenix Cos. said it narrowed its first quarter losses on the heels of its pending acquisition by Nassau Reinsurance.
Company officials said earnings would have been stronger except for more people dying with expensive life insurance policies.
Phoenix Cos. said it lost $42.8 million, or $7.42 per share, in the January through March time period, compared to a net loss of $73 million, or $12.87 per share, in the first quarter of 2015.
MarketBeat reports the company was expected to lose only 47 cents per share for the quarter. Company officials said open block net death claims were $68 million unfavorable to expectations, driven by unusually poor experience in its universal life product line. The company received six claims with a $10 million retention level, versus the more typical one per quarter.
Earlier this month, the state Department of Insurance signed off on Nassau Reinsurance Group Holdings’ $217.2 million purchase of Phoenix Cos. The deal, subject to approval by the New York insurance department, is expected to be completed by the end of June.
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