NU Online News Service, Aug. 9, 11:35 a.m. – The Phoenix Companies Inc., Hartford, is reporting a $17 million net loss for the second quarter on $627 million in revenue, compared with $110 million in net income on $732 million in revenue for the second quarter of 2000.
Income from continuing operations decreased to $4 million, from $68 million.
Operating income from the life insurance and annuity operations increased to $39 million, from $19 million, because of the strength of variable universal life, universal life and participating life results.
But operating income from venture capital deals fell to $5.5 million, from $68 million, in part because of a sharp drop in the estimated value of investments held in partnerships.
Although the profit on the venture capital unit was lower than it was a year ago, the profit is an improvement on the $132 million loss the unit reported for the first quarter of 2001, Phoenix says.
Phoenix says it prefers to compare its second results with its first quarter results, rather than its results for the second quarter of 2000, because it has begun selling stock to the public since mid-2000, and acquired all outstanding stock of the Phoenix Investment Partners marketing arm. Previously, Phoenix had owned only 60% of Phoenix Investment Partners.
When Phoenix states its earnings according to its preferred accounting methods, it reports a $17 million net loss and $19 million operating profit for the second quarter on $627 million in revenue, compared with a $158 million net loss and $89 million operating loss on $561 million in revenue for the first quarter.