Phoenix Reports Higher 1st Quarter Net Income

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.