Hartford’s Phoenix Life Insurance Co. is adjusting its dividend scale that will impact the allocation of its estimated $167 million in 2015 dividend payments to eligible policyholders.
The Phoenix Cos. Inc. said Wednesday its board of directors voted the adjustment to the life unit’s closed-block dividends, effective Jan. 1. The changes include both positive and negative mortality adjustments, but no change to the dividend interest rate.
Most policyholders in its closed block will see higher dividends in 2015, but some will see a decline, the insurer said.
Phoenix Life’s closed block is made up of participating, dividend-paying policies and contracts that were in force when Phoenix demutualized in June 2001. The decision to adjust the dividend scale is in accordance with the guidelines for managing the closed block, which were established at that time.
Phoenix Life will maintain the dividend scale on a small number of policies in its open block, which consists of business written after its demutualization.
