Hartford insurer The Phoenix Cos. Inc. today reported a $424.3 million fourth-quarter loss, and said it will cut its work force by 25 percent and eliminate its annual dividend.
The Phoenix lost $3.71 a share in the three months ended Dec. 31. A year earlier, the company earned $3.1 million, or 3 cents a share.
For the year, The Phoenix lost $772 million, or $6.67 a share, compared to 2007 net profit of $117.6 million, or $1.01 a share.
“Our headline loss reflects a brutal economy in which all businesses have had to operate in uncharted territory,” said Dona D. Young, chairman, president and chief executive officer.
Young said that despite the quarterly and annual loss, The Phoenix’s balance sheet and capital position are healthy and its debt ratio is low.
Still, she said, the company is taking measures to preserve capital and strengthen liquidity.
Along with eliminating the dividend, the insurer is cutting expenses to save about $65 million annually. Staffing will fall more than 250 positions in the next two to six months, the company said.
The Phoenix repeated that it may seek to participate in the U.S. Treasury’s Troubled Asset Relief Program, if it is opened up to insurance companies.
In December, the insurer spun off to shareholders its asset management business, Virtus Investment Partners Inc.
At 11 a.m., The Phoenix traded at 67 cents, down 3 cents, or 4.2 percent.
