The Phoenix Cos. saw second-quarter earnings shrink from a year ago, but it was still the Hartford life insurer’s best earnings period since then.
The company said Thursday that its net income for the quarter ending June 30 was $4.4 million, or 4 cents per share, compared to $10.3 million, or 9 cents per share, a year earlier.
Phoenix did, however, narrow its operating loss to $2.9 million, compared to an operating loss of $20 million for the second quarter of 2010.
The insurer lost money in its previous three quarters.
“Our core earnings are much improved from a year ago, and we produced net income for the first time since the second quarter of 2010,” said James D. Wehr, Phoenix’s president and CEO. “We are generating capital at a healthy pace, and Phoenix Life’s estimated risk-based capital ratio increased again this quarter.”
 “Overall, we are seeing results – meaningful annuity deposits, much improved persistency, and revenue growth at Saybrus Partners – that show the Phoenix franchise is reemerging. With our increasing market acceptance, we are focused on gaining market share by enhancing our product portfolio and expanding our distribution footprint in areas where we can grow profitably,” Mr. Wehr said.
Net investment income was $211.2 million for the second quarter of 2011, compared with $216.1 million for the second quarter of 2010. It is up from $201.3 million for the first quarter of 2011. The changes from the prior year period and prior quarter were both driven by fluctuations in alternative asset results.
Although revenues declined 5 percent during the quarter to $475 million, Wehr said the company is seeing stronger sales growth, particularly in its repositioned annuity product line, which is distributed through independent marketing organizations that focus on the middle market.
Annuity deposits were $191.3 million for the second quarter of 2011, compared with $205.3 million for the first quarter of 2011 and $26.8 million for the second quarter of 2010.
New sales were primarily fixed indexed annuities.
