By MATTHEW STURDEVANT, firstname.lastname@example.org
The Hartford Courant
5:41 PM EST, November 20, 2012
The Phoenix Cos. on Tuesday reported a net loss and an operating loss for the quarter.
The Hartford-based life insurer and annuity company delayed its quarterly report because it is in the process of restating its finances for the first two quarters of this year and for the past three years.
"Since there may be changes to prior period results, the company is not providing comparisons of any third quarter or nine-month 2012 results to any prior periods until the restated financial statements have been filed with the [U.S.] Securities and Exchange Commission," the company said.
Phoenix reported it had a net loss of $45.8 million, or $8.04 per share, for the three-month period ending Sept. 30. Last year, the company reported net income of $31.8 million, or 27 cents per share, for the third quarter.
Phoenix reported an after-tax operating loss of $62.6 million, or $10.98 per share. Last year, the company reported operating income of $29 million, or 25 cents per share, for the third quarter of 2011.
The company's operating loss was driven by a $63.4 million charge related to the company's review of actuarial assumptions and $23 million on "adverse mortality," meaning that customers died sooner than expected.
On Aug. 10, the company took a reverse stock split, giving shareholders one share for every 20 shares they owned in the company. The losses are represented in the new per-share amounts.
Financial results for the quarter are "unaudited interim results prepared by management," the company said. Phoenix hasn't closed its books for the third quarter and continues to review the estimated results.
Phoenix announced on Nov. 8 that it would restate its financial performance for the first two quarters of this year and for the past three years.
Annuity deposits for the quarter were $211 million, down 24 percent from $279 million that the company reported last year for the third quarter of 2011. The company said it had $5 billion in annuity funds under management as of Sept. 30.
Life insurance annualized premium was $800,000 for the quarter, double the $400,000 in annualized premium the company reported last year for the same period in 2011.
The company had $116.5 billion gross life insurance in-force as of Sept. 30, which is the value of existing accounts, compared with $127.4 billion it reported having a year earlier.
Phoenix CEO James D. Wehr, said in a prepared statement: "We are working diligently to complete the restatement. In the meantime, we believe it is important to report our estimated third quarter 2012 results to the extent possible before our financial statements are filed with the SEC."
On Sept. 20, the Phoenix board authorized a program to buy back $25 million in outstanding shares of common stock, but the company will not start that effort until after it has restated its financial statements.
Phoenix shares were down 40 cents, to $22.42, at Tuesday's close.
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