NU Online News Service, Feb. 6, 1:50 p.m. – The Phoenix Companies Inc., Hartford, is reporting a $14 million net loss for the fourth quarter of 2002 on $612 million in revenue, compared with a $7.5 million net loss on $628 million in revenue for the fourth quarter of 2001.
The results for the latest quarter include $33 million in investment losses, down from $35 million in investment losses realized in the comparable quarter in 2001.
Phoenix supplies venture capital as well as selling life insurance and other financial services. Excluding the results from the venture unit, income for the quarter would have been $21 million, down from $28 million, Phoenix says.
Phoenix announced a series of steps in late 2002 to improve its finances.
The company now says it also will sell half of a $53 million portfolio of venture capital limited partnership interests to outside parties for $27 million. Phoenix will be selling the other half to a closed block of business at its Phoenix Life Insurance Company unit.
The deal will help Phoenix Life by improving its “capital ratios and enhancing the closed block’s potential long-term returns,” the company says.
Phoenix will also try to save $6 million a year by selling offices in Enfield, Conn., and $4 million a year by cutting expenses at its investment management unit.