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Earnings: American Equity, Phoenix

By Staff Writer

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Two more life insurers reported earnings this week.

American Equity Investment Life Holding Company, West Des Moines, Iowa

4 Q 2008 Results

NET INCOME: $4.2 million

NET REALIZED INVESTMENT CHANGE: $23 million loss

NET CHANGE IN DERIVATIVES VALUE: 58 million loss

REVENUE: $166 million

4 Q 2007 Results

NET INCOME: $5 million

NET REALIZED INVESTMENT CHANGE: $4.8 million loss

NET CHANGE IN DERIVATIVES VALUE: $140 million loss

REVENUE: $62 million

- Net investment income climbed to $215 million, from $191 million.

- “Statutory capital and surplus of the principal life subsidiary was $983 million at Dec. 31, 2008, compared to $991 million at Dec. 31, 2007,” the companys says. “The company’s risk based capital ratio, which was estimated to be approximately 345% of company action level at Sept. 30, 2008, remained unchanged at Dec. 31, 2008.”

Phoenix Companies Inc., Hartford

4 Q 2008 Results

NET INCOME: $424 million loss

NET REALIZED INVESTMENT CHANGE: $164 million loss

REVENUE: 400 million

4 Q 2007 Results

NET INCOME: $3.1 million

NET REALIZED INVESTMENT CHANGE: $32 million loss

REVENUE: $588million

- “Our headline loss reflects a brutal economy in which all businesses have had to operate in uncharted territory,” Phoenix Chairman Dona Young says.

- Net results for the latest quarter include $193 million in discontinued operations losses; $142 million in deferred acquisition cost charges; and $4.1 million in transaction and severance costs.

- Phoenix is reporting $11 million in adjusted operating income for the quarter.

- “Our capital position remained strong and was relatively unchanged from the third quarter,” Young says.

- Phoenix will conserve capital by eliminating its dividend this year.

- The effort to cut costs will include eliminating 250 jobs, or about 25% of the company’s staff, over the next 2 to 6 months, Young says.

Magellan Health Services Inc., Avon, Conn.

- 4 Q 2008 Results

NET INCOME: $31 million

REVENUE: 658 million

4 Q 2007 Results

NET INCOME: $24 million

REVENUE: $662 million