Hartford life insurer The Phoenix Cos. cut its fourth quarter losses, but failed to post a profit for the second straight quarter as lower insurance fee and premium income reduced earnings.
The insurer’s net loss for the quarter ended Dec. 31 was $11.6 million, or 10 cents a share, narrower than the loss of $106 million, 7 cents a share, suffered a year earlier.
The Phoenix did, however, report stronger operating earnings of $7.8 million, or 7 cents per share, for the quarter, compared to an operating loss $34 million a year earlier.
For all 2010, Phoenix lost $12.6 million, or 11 cents a share, down from the $319 million, or $2.74 a share, lost in 2009.
“In spite of the reported net loss, our operating results reflect steady progress in 2010 as we strengthened our balance sheet, earnings and growth prospects,” said Phoenix CEO James D. Wehr. “The company is substantially stronger with statutory surplus 33 percent higher than a year ago and risk-based capital improved by about 60 percentage points,”
Wehr pointed to solid investment gains and growth in the company’s repositioned annuity product line, which primarily focuses on the middle market, as positive sign for the future.
Net investment income of $228.6 million for the fourth quarter of 2010 was at its highest level for the year and improved from $207 million for the fourth quarter of 2009, Wehr said.
