Standard & Poors said it has downgraded the financial strength rating of The Phoenix Cos.’ insurance subsidiaries over concerns of the Hartford insurer’s weakened capital position.
S&P lowered the ratings of Phoenix Life Insurance and PHL Variable to ‘B+.’ It also assigned a negative outlook.
Additionally, S&P reaffirmed the parent company’s credit rating of ‘B-.’ The rating downgrade comes less than a week after Phoenix Cos. released its long delayed 2013 annual report, which showed the company turned a $5.1 million profit. The annual report’s late release occurred after the Phoenix found errors in its accounting.
Phoenix CEO James D. Wehr said in a statement Tuesday that he disagreed with S&P’s actions.
“..it does not reflect our progress since the agency last changed our financial strength ratings in early 2010,” Wehr said. “By a number of meaningful metrics, including capital, Phoenix’s financial position has improved significantly, and the company continues to consistently fulfill all of our long-term promises to policyholders.”
Phoenix continues to work toward catching up with its required financial filing with the U.S. Securities and Exchange Commission. It has been fined for the late filings.
