Phoenix Postpones Earnings As It Plans To Restate Financial Results For ’09, ’10, ’11 and ’12

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The Phoenix Cos. postponed release of its third-quarter earnings as the company plans to restate financial results for 2009, 2010, 2011 and the first two quarters of this year.

Phoenix said it will file preliminary third-quarter results within two weeks. The company did not say which day it will release results.

The life insurer and annuity company said the following in a document filed today with the U.S. Securities & Exchange Commission:

The restatement will correct certain errors relating to the classification of items on the consolidated statement of cash flows in these prior periods. Management does not expect the restatement to have a material impact on beginning and ending balances or the total change in cash and cash equivalents that were previously reported for the periods.

As part of the restatement, the company will adjust the financial statements for errors identified and corrected during prior periods, recording the adjustments in the appropriate historical period. Additional errors identified subsequent to the filing of Form 10-Q for the period ended June 30, 2012, which may affect prior periods, will be assessed for materiality and corrected in connection with the restatement.

The errors to be corrected by the restatement are not expected to have a material impact on the statutory financial results of the company’s insurance company subsidiaries that are filed with the state insurance regulators or the subsidiaries’ risk-based capital computations for any of the periods noted.

The company also said preliminary statutory results for the third quarter are as follows:
Statutory net gain from operations was $17.5 million and statutory net income was $16.7 million for the third quarter of 2012.
 
Statutory surplus and asset valuation reserve was $944.4 million at September 30, 2012, net of the $54.0 million in dividends paid to the holding company during the first nine months of the year.
 
The statutory accounting results of PLIC are not prepared in accordance with GAAP and are not indicative of the consolidated GAAP results of the company. The differences between the company’s consolidated GAAP results and the statutory results of PLIC for the third quarter of 2012 are likely to be material.

About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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