Insurer Announces Dividend Plans

The dividend scale for the holders of the post-2001 participating whole life policies “will be adjusted for 2008 to reflect current experience, including declining interest rates and favorable mortality,” Phoenix says. “The net result is a dividend reduction for most policies.”

Phoenix put its participating whole life policies in a closed block in June 2001, when it demutualized, and since then has stopped actively selling participating policies.

The company has issued a few participating policies since June 2001, in connection with efforts to meet obligations included in policies issued before the demutualization.

Before the latest announcement, the dividend scale for the post-demutualization participating whole life policies had not been changed since 2002, Phoenix says.