Hartford insurer The Phoenix Cos. said it narrowed its fourth quarter losses, but failed to turn a profit in 2015.
The insurer said its fourth quarter loss totaled $21.4 million, or $3.72 per share, compared to a loss of $140.3 million, or $24.40 per share, in the same quarter a year ago.
Phoenix’s 2015 annual net income was up 39.2 percent, but the company still posted a $127 million loss. In 2014, the company lost $209.2 million.
The company’s full-year results were weighed down by external financial reporting expenses of $51.9 million; a $48.5 million charge to settle class actions relating to certain cost of insurance rate adjustments; and, derivative losses of $34.2 million, which were driven by volatility in equity markets and interest rates.
Phoenix also said its acquisition by Nassau Reinsurance Group Holdings L.P. is scheduled to close in the second quarter. Nassau will contribute $100 million in new equity capital into Phoenix to further stabilize and improve the company’s balance sheet.
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