NU Online News Service, May 8, 2003, 11:55 a.m. EDT – The Phoenix Companies Inc., Hartford, is reporting $3.2 million in net income for the first quarter on $643 million in revenue, compared with a $101 million net loss on $594 million in revenue for the first quarter of 2002.
Net results for the first quarter of 2002 included a $130 million write-down of the value of past acquisitions.
Sales of variable life insurance were down during the quarter, but sales of universal life insurance and private-placement insurance were up, Phoenix says.
The annuity unit lost $5.3 million on $432 million in deposits, down from $2.6 million in income on $575 million in deposits for the first quarter of 2002.
The annuity unit results reflect a reduction in fee revenue, an increase in surrender rates, and a narrowing of the gap between what Phoenix earns on its own investments and what it must pay out to annuity holders.
Phoenix also notes that it has discontinued a major variable annuity product, the Retirement Planner’s Edge, and that it has changed its variable annuity contracts to limit deposits in guaranteed interest accounts for new variable annuity sales.