Phoenix Settles With SEC For $750,000

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The U.S. Securities and Exchange Commission accepted a $750,000 settlement agreement Friday from The Phoenix Cos. stemming from the company’s delay in restating its financial information of several years.

Payments of $375,000 will be made by the parent company and by the insurer’s subsidiary, PHL Variable Insurance Co., according to a March 21 order by the commission.

The company announced in January that it had a proposed settlement with regulators.

Separately, Phoenix must file its 2012 Form 10-K with the SEC by April 3 in order to keep the New York Stock Exchange from initiating suspension and de-listing procedures.

PHL Variable Insurance announced on Sept. 18, 2012, that its audited financial statements for 2009, 2010 and 2011 needed to be restated because the filings had errors in accounting for an intercompany reinsurance treaty between PHL Variable and Phoenix Life Insurance Co. The errors concerned ceded premiums, periodic adjustments to receivables, deferred acquisition costs and liability for policyholder benefits.

The parent company announced on Nov. 8, 2012, that its financial statements for 2009, 2010 and 2011 needed to be restated because of incorrect classification of deposits and withdrawals of universal life and variable life products and incorrect reporting of certain fees and interest charges as cash flows provided by financing activities.

Phoenix said in March 2013 that the company would not meet its previously announced timetable for filing restatements. At the same time, Phoenix announced additional errors affecting prior periods including an actuarial valuation of insurance liabilities, accounting for complex reinsurance transactions, and other problems.

The settlement has a new list of deadlines for the insurer to file its restated financial information. The Phoenix Cos. has a deadline of March 31 for its 2012 annual report and Form 10-K, which is ahead of the deadline set by the New York Stock Exchange. The insurer has a June 4 deadline for its 2013 annual report and Form 10-K. The settlement has deadlines for quarterly reports from 2013 and 2014, too.

PHL Variable Insurance must file its 2012 annual report and 10-K by April 15, and its 2013 annual report by July 3, according to the settlement.

Check back later today for updates to this article.

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, 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, (, 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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