Phoenix Life Insurance Company Maintains Policy Dividend Scales for 2014
HARTFORD, Conn.--(BUSINESS WIRE)-- The Phoenix Companies, Inc. (NYS: PNX) today announced that the board of directors of Phoenix Life Insurance Company voted to maintain the current policy dividend scales effective January 1, 2014 for policies in the closed block of business.
"Our decision reflects solid performance of the closed block, which had claim experience within expectations and benefited from the recent rise in interest rates," said James D. Wehr, president and chief executive officer.
"Phoenix has maintained a competitive dividend track record since we demutualized in 2001 despite long periods of interest rate and other market environment challenges. These dividends add significant value to our participating policies above and beyond the guarantees provided," Mr. Wehr said.
Phoenix projects it will pay its participating policyholders approximately $174 million in dividends in 2014. The company has maintained its closed block dividend scale in eight out of the thirteen years since its demutualization, and the cumulative adjustment over that period is consistent with adjustments to other companies' closed block participating policies.
Phoenix's closed block is made up of participating, dividend-paying policies and contracts that were in force when Phoenix demutualized in June 2001. The decision to maintain the dividend scale is in accordance with the guidelines for managing the closed block, which were established at that time.
Phoenix also will maintain the dividend scale for the small number of participating policies in its open block, which consists of business written after the demutualization.
ABOUT PHOENIX LIFE INSURANCE COMPANY
Phoenix Life Insurance Company is the principal operating subsidiary of The Phoenix Companies, Inc. (NYS: PNX) , a life insurance and annuity company serving customers' retirement and protection needs through select independent distributors. The Phoenix Companies, Inc. is headquartered in Hartford, Connecticut, and Phoenix Life Insurance Company's statutory home office is in East Greenbush, New York. For more information, visit www.phoenixwm.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The foregoing contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We intend for these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws relating to forward-looking statements. These forward-looking statements include statements relating to, or representing management's beliefs about, our future transactions, strategies, operations and financial results, including, without limitation, our expectation to provide information within anticipated timeframes. Such forward-looking statements often contain words such as "will," "anticipate," "believe," "plan," "estimate," "expect," "intend," "is targeting," "may," "should" and other similar words or expressions. Forward-looking statements are made based upon management's current expectations and beliefs and are not guarantees of future performance. Our ability to provide updated information about the restatement in the anticipated timeframe, complete the restatement and resume a timely filing schedule with respect to our SEC filings reflecting the restatement is subject to a number of contingencies, including but not limited to, whether we continue to identify errors in our consolidated financial statements, whether existing systems and processes can be timely updated, supplemented or replaced, and the number and complexity of, and periods covered by, the periodic reports that we will have to file with the SEC to reflect the restatement. Our actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others, those risks and uncertainties described in any of our other filings with the SEC. Certain other factors which may impact our business, financial condition or results of operations or which may cause actual results to differ from such forward-looking statements are discussed or included in our periodic reports filed with the SEC and are available on our website at www.phoenixwm.com under "Investor Relations". You are urged to carefully consider all such factors. We do not undertake or plan to update or revise forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this news release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If we make any future public statements or disclosures which modify or impact any of the forward-looking statements contained in or accompanying this news release, such statements or disclosures will be deemed to modify or supersede such statements in this news release.
KEYWORDS: United States North America Connecticut
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