Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 25, 2015 | Jun. 30, 2014 |
Document And Entity Information | |||
Entity Registrant Name | PHOENIX COMPANIES INC/DE | ||
Entity Central Index Key | 1129633 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $0.30 | ||
Entity Common Stock, Shares Outstanding (in shares) | 5.8 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||||||||
ASSETS: | ||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | $12,679.30 | $12,587.50 | $12,370.50 | $11,920.70 | $11,731.50 | $11,649.80 | $11,654.80 | $11,816.60 | ||
Available-for-sale equity securities, at fair value (cost of $156.0 and $119.3) | 179.5 | 189.9 | 149.1 | 143.2 | 138 | 107.7 | 107.4 | 97.9 | ||
Short-term investments | 149.7 | 90.4 | 504.8 | 571 | 361.6 | 454.8 | 599.8 | 699.5 | ||
Limited partnerships and other investments | 542.8 | 560.7 | 557.9 | 569.5 | 561.3 | 573 | 559.4 | 563.4 | ||
Policy loans, at unpaid principal balances | 2,352.10 | 2,324.10 | 2,325.40 | 2,353.70 | 2,350.30 | 2,329.90 | 2,350.10 | 2,340.10 | ||
Derivative instruments | 161.3 | 138.2 | 162.5 | 160 | 228.8 | 180 | 188.9 | 181.6 | ||
Fair value investments | 235.4 | 207.2 | 207.4 | 215.2 | 215.2 | 223.7 | 216.1 | 215.2 | ||
Total investments | 16,300.10 | 16,098 | 16,277.60 | 15,933.30 | 15,586.70 | 15,518.90 | 15,676.50 | 15,914.30 | ||
Cash and cash equivalents | 450 | 443.2 | 330.2 | 424.5 | 496.4 | 492.8 | 369.3 | 295.2 | 246.4 | 168.2 |
Accrued investment income | 176.7 | 214.2 | 185.7 | 176 | 170.4 | 206.1 | 183.3 | 176.1 | ||
Reinsurance recoverable | 559.1 | 572.9 | 592.4 | 611.6 | 598.1 | 589.9 | 576.7 | 593.5 | ||
Deferred policy acquisition costs | 848.6 | 883.9 | 881.8 | 906.9 | 947.8 | 905.2 | 914.9 | 870.6 | ||
Deferred income taxes, net | 34.2 | 32 | 29.5 | 45.6 | 70 | 66.1 | 65.9 | 41.5 | ||
Other assets | 311.3 | 316.6 | 301.1 | 299.3 | 320.5 | 368.6 | 340.6 | 339.4 | ||
Discontinued operations assets | 45.2 | 43.6 | 44.7 | 46.2 | 48.9 | 50.3 | 51.9 | 53.2 | ||
Separate account assets | 3,020.70 | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | ||
Total assets | 21,745.90 | 21,693.50 | 21,928.40 | 21,751.40 | 21,641.10 | 21,548.80 | 21,452.60 | 21,690.50 | ||
LIABILITIES: | ||||||||||
Policy liabilities and accruals | 12,417.60 | 12,363.50 | 12,410 | 12,398.60 | 12,416.60 | 12,551.10 | 12,569.80 | 12,641.70 | ||
Policyholder deposit funds | 3,955 | 3,836.60 | 3,673.40 | 3,555.30 | 3,442.60 | 3,339 | 3,255.90 | 3,159.90 | ||
Dividend obligations | 916.8 | 874.9 | 894.7 | 817.6 | 705.7 | 744.8 | 742.5 | 942.3 | ||
Indebtedness | 378.9 | 378.8 | 378.9 | 378.8 | 378.8 | 378.8 | 378.8 | 378.8 | ||
Pension and post-employment liabilities | 380 | 292.7 | 299.7 | 306.6 | 313.1 | 407.2 | 418.5 | 424.7 | ||
Other liabilities | 289.8 | 285.4 | 383.1 | 379.1 | 337.3 | 348.1 | 382.4 | 262.2 | ||
Discontinued operations liabilities | 40.5 | 38.8 | 39.9 | 41.5 | 43.4 | 44.3 | 46.1 | 47.6 | ||
Separate account liabilities | 3,020.70 | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | ||
Total liabilities | 21,399.30 | 21,159.80 | 21,365.10 | 21,185.50 | 21,039.80 | 21,164.20 | 21,067.50 | 21,263.90 | ||
COMMITMENTS AND CONTINGENCIES (Notes 22, 23 and 24) | ||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||
Common stock, $.01 par value: 5.8 million and 5.7 million shares outstanding | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
Additional paid-in capital | 2,632.80 | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633 | 2,632.90 | ||
Accumulated other comprehensive income (loss) | -234.4 | -179.3 | -172.1 | -192.3 | -185 | -255.4 | -271.1 | -258 | -243.8 | |
Retained earnings (accumulated deficit) | -1,889 | -1,748.70 | -1,726.30 | -1,703.90 | -1,675.80 | -1,818.90 | -1,801.50 | -1,772.70 | ||
Treasury stock, at cost: 0.7 million and 0.7 million shares | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | ||
Total The Phoenix Companies, Inc. stockholders’ equity | 326.6 | 521.9 | 551.5 | 554.1 | 589.5 | 376 | 377.6 | 419.4 | ||
Noncontrolling interests | 20 | 11.8 | 11.8 | 11.8 | 11.8 | 8.6 | 7.5 | 7.2 | ||
Total stockholders’ equity | 346.6 | 533.7 | 563.3 | 565.9 | 601.3 | 384.6 | 385.1 | 426.6 | 511.4 | 691.4 |
Total liabilities and stockholders’ equity | $21,745.90 | $21,693.50 | $21,928.40 | $21,751.40 | $21,641.10 | $21,548.80 | $21,452.60 | $21,690.50 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 11, 2012 | Aug. 10, 2012 |
In Millions, except Per Share data, unless otherwise specified | |||||
Consolidated Balance Sheets Parenthetical | |||||
Available-for-sale debt securities, amortized cost | $11,978 | $11,341.50 | |||
Available-for-sale equity securities, at cost | $156 | $119.30 | |||
Common stock par value (USD per share) | $0.01 | $0.01 | $0.01 | $0.01 | |
Shares outstanding (shares) | 5.8 | 5.7 | 5.7 | 5.8 | 116 |
Treasury stock (shares) | 0.7 | 0.7 | 0.7 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||||||||||||||
Premiums | $78.10 | $83.20 | $79.60 | $84.50 | $87.40 | $82.70 | $162.80 | $170.10 | $240.90 | $254.60 | $332.10 | $351.60 | $402.30 | ||
Fee income | 135.2 | 134.2 | 134.8 | 140.4 | 132.6 | 136.3 | 269 | 268.9 | 404.2 | 409.3 | 545.1 | 550.3 | 556 | ||
Net investment income | 204.9 | 191.5 | 211.5 | 199.3 | 193.9 | 190.4 | 403 | 384.3 | 607.9 | 583.6 | 830.9 | 789.7 | 827.8 | ||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | -3.7 | -1 | 0 | -1.5 | -0.4 | -0.5 | -1 | -0.9 | -4.7 | -2.4 | -7.7 | -7 | -50.8 | ||
Portion of OTTI losses recognized in other comprehensive income (“OCIâ€) | -0.2 | 0 | -0.2 | -0.4 | -2.5 | -1.7 | -0.2 | -4.2 | -0.4 | -4.6 | -0.4 | -4.8 | 22.9 | ||
Net OTTI losses recognized in earnings | -3.9 | -1 | -0.2 | -1.9 | -2.9 | -2.2 | -1.2 | -5.1 | -5.1 | -7 | -8.1 | -11.8 | -27.9 | ||
Net realized investment gains (losses), excluding OTTI losses | 0.1 | 5.2 | -26.7 | 7.5 | 8.2 | -12.4 | -21.5 | -4.2 | -21.4 | 3.3 | -33.1 | 27.8 | 11.1 | ||
Net realized investment gains (losses) | -3.8 | 4.2 | -26.9 | 5.6 | 5.3 | -14.6 | -22.7 | -9.3 | -26.5 | -3.7 | -41.2 | 16 | -16.8 | ||
Gain on debt repurchase | 0 | 0 | 11.9 | ||||||||||||
Total revenues | 440.4 | 414.4 | 413.1 | 399 | 463.8 | 429.8 | 419.2 | 394.8 | 812.1 | 814 | 1,226.50 | 1,243.80 | 1,666.90 | 1,707.60 | 1,781.20 |
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | 263.6 | 301.3 | 230.3 | 259.6 | 272.2 | 270.6 | 531.6 | 542.8 | 795.2 | 802.4 | 1,119.20 | 965.1 | 1,162.40 | ||
Policyholder dividends | 57 | 42.6 | 72.2 | 66.3 | 51.4 | 49.3 | 114.8 | 100.7 | 171.8 | 167 | 244.8 | 235.9 | 292.1 | ||
Policy acquisition cost amortization | 29.4 | 19.1 | 24.6 | 28.6 | 27.1 | 49.6 | 43.7 | 76.7 | 73.1 | 105.3 | 119.6 | 103.1 | 196.1 | ||
Interest expense on indebtedness | 7 | 7.1 | 7.1 | 7.1 | 7.1 | 7.1 | 14.2 | 14.2 | 21.2 | 21.3 | 28.3 | 28.3 | 30.8 | ||
Other operating expenses | 77 | 84.4 | 97.2 | 77.3 | 91.3 | 83.2 | 181.6 | 174.5 | 258.6 | 251.8 | 350.2 | 337.1 | 253.3 | ||
Total benefits and expenses | 542.2 | 434 | 454.5 | 431.4 | 321.7 | 438.9 | 449.1 | 459.8 | 885.9 | 908.9 | 1,319.90 | 1,347.80 | 1,862.10 | 1,669.50 | 1,934.70 |
Income (loss) from continuing operations before income taxes | -19.6 | -41.4 | -32.4 | -9.1 | -29.9 | -65 | -73.8 | -94.9 | -93.4 | -104 | -195.2 | 38.1 | -153.5 | ||
Income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Income (loss) from continuing operations | -134.1 | -22.2 | -21.8 | -27.6 | 145.3 | -17.8 | -28.7 | -69.2 | -49.4 | -97.9 | -71.6 | -115.7 | -205.7 | 29.6 | -148.8 |
Income (loss) from discontinued operations, net of income taxes | -2 | -0.3 | -0.6 | -0.6 | -1.2 | 0.3 | -0.2 | -1.8 | -1.2 | -2 | -1.5 | -1.7 | -3.5 | -2.9 | -15.6 |
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 |
Less: Net loss attributable to noncontrolling interests | 4.2 | -0.1 | 0 | -0.1 | 1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 |
Net income (loss) attributable to The Phoenix Companies, Inc. | -140.3 | -22.4 | -22.4 | -28.1 | 143.1 | -17.4 | -28.8 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 |
COMPREHENSIVE INCOME (LOSS): | |||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | -140.3 | -22.4 | -22.4 | -28.1 | 143.1 | -17.4 | -28.8 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 |
Less: Net loss attributable to noncontrolling interests | 4.2 | -0.1 | 0 | -0.1 | 1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 |
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 |
Other comprehensive income (loss) before income taxes: | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -14.4 | 51.9 | 23.7 | 12.9 | -39.9 | -9 | 75.6 | -48.9 | 61.2 | -36 | 66.5 | -62.7 | 95.4 | ||
Net pension liability adjustment | 1.7 | 1.7 | 1.7 | 2.6 | 2.6 | 2.6 | 3.4 | 5.2 | 5.1 | 7.8 | -80.2 | 101 | -20.3 | ||
Other comprehensive income (loss) before income taxes | -12.7 | 53.6 | 25.4 | 15.5 | -37.3 | -6.4 | 79 | -43.7 | 66.3 | -28.2 | -13.7 | 38.3 | 75.1 | ||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | -5.5 | 33.4 | 32.7 | -0.2 | -24.2 | 7.8 | 66.1 | -16.4 | 60.6 | -16.6 | 35.7 | -20.5 | 92 | ||
Net pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Total income tax expense (benefit) | -5.5 | 33.4 | 32.7 | -0.2 | -24.2 | 7.8 | 66.1 | -16.4 | 60.6 | -16.6 | 35.7 | -20.5 | 92 | ||
Other comprehensive income (loss), net of income taxes | -7.2 | 20.2 | -7.3 | 15.7 | -13.1 | -14.2 | 12.9 | -27.3 | 5.7 | -11.6 | -49.4 | 58.8 | -16.9 | ||
Comprehensive income (loss) | -29.7 | -2.2 | -35.5 | -1.8 | -42 | -85.2 | -37.7 | -127.2 | -67.4 | -129 | -258.6 | 85.5 | -181.3 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | -0.1 | 0 | -0.1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 | ||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | ($29.60) | ($2.20) | ($35.40) | ($1.70) | ($41.90) | ($85.10) | ($37.60) | ($127) | ($67.20) | ($128.70) | ($262.60) | $84.80 | ($181.90) | ||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | ($3.85) | ($3.80) | ($4.79) | ($3.08) | ($4.99) | ($12.10) | ($8.58) | ($17.01) | ($12.42) | ($20.09) | ($36.48) | $5.04 | ($25.90) | ||
Gain (loss) from continuing operations – diluted (USD per share) | ($3.85) | ($3.80) | ($4.79) | ($3.08) | ($4.99) | ($12.10) | ($8.58) | ($17.01) | ($12.42) | ($20.09) | ($36.48) | $5.01 | ($25.90) | ||
Loss from discontinued operations – basic (USD per share) | ($0.05) | ($0.10) | ($0.10) | $0.05 | ($0.03) | ($0.31) | ($0.21) | ($0.35) | ($0.26) | ($0.30) | ($0.61) | ($0.51) | ($2.70) | ||
Loss from discontinued operations – diluted (USD per share) | ($0.05) | ($0.10) | ($0.10) | $0.05 | ($0.03) | ($0.31) | ($0.21) | ($0.35) | ($0.26) | ($0.30) | ($0.61) | ($0.50) | ($2.70) | ||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.92 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.53 | ($28.60) |
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.84 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.51 | ($28.60) |
Basic weighted-average common shares outstanding (shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,735 | 5,770 | ||
Diluted weighted-average common shares outstanding (in shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,764 | 5,770 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||||||||
Net income (loss) | ($28.10) | ($70.90) | ($50.50) | ($99.70) | ($72.90) | ($117.10) | ($213.20) | $26 | ($165) |
Net realized investment gains / losses | 26.9 | 14.6 | 22.7 | 9.3 | 26.5 | -0.8 | 40.5 | -20.4 | 23.7 |
Policy acquisition costs deferred | -14.6 | -15.1 | -33.2 | -29.3 | -54.9 | -43.5 | -72.9 | -58.4 | -58.1 |
Policy acquisition cost amortization | 24.6 | 49.6 | 43.7 | 76.7 | 73.1 | 105.3 | 119.6 | 103.1 | 196.1 |
Amortization and depreciation | 1.5 | 2.2 | 3 | 4.3 | 4.5 | 6.3 | 6 | 8.2 | 12 |
Interest credited | 35.6 | 30.5 | 70.2 | 63.7 | 113.4 | 99.8 | 151.5 | 139 | 123.2 |
Equity in earnings of limited partnerships and other investments | -20.1 | -8.6 | -26.1 | -21.3 | -44.4 | -35.3 | -59.7 | -58.9 | -59.8 |
Gain on debt repurchase | 0 | 0 | -11.9 | ||||||
Change in: | |||||||||
Accrued investment income | -44 | -45.8 | -79 | -70.1 | -131.9 | -102.8 | -109.2 | -86 | -122.8 |
Deferred income taxes, net | -8.3 | 0 | -25.6 | 0 | -22.5 | 0 | 0 | 0 | -20.5 |
Reinsurance recoverable | -12.9 | -2.5 | 5.8 | 13.8 | 26.2 | 0.7 | 39.1 | -8.4 | -22.7 |
Policy liabilities and accruals | -142.6 | -172 | -237.5 | -249.1 | -367.3 | -355.5 | -430.9 | -591.8 | -425.4 |
Dividend obligations | 30.2 | 5.5 | 29.5 | 11.5 | 46.5 | 35.7 | 72.4 | 57.1 | 77.3 |
Pension and post-employment liabilities | -4.9 | -0.8 | -10 | -4.4 | -15.3 | -13.1 | -13.3 | -14.1 | -20.8 |
Impact of operating activities of consolidated investment entities, net | -6.7 | 1.4 | -8.8 | -2 | -9.7 | -3.6 | -33.8 | -2.1 | -11.8 |
Other operating activities, net | 23.1 | 25.3 | 14.6 | 36.2 | 2.2 | 46.2 | 3.4 | 60.1 | -34.3 |
Cash provided by (used for) operating activities | -140.3 | -186.6 | -281.2 | -260.4 | -426.5 | -377.7 | -500.5 | -446.6 | -520.8 |
Purchases of: | |||||||||
Available-for-sale debt securities | -338.4 | -384.1 | -871.4 | -976.6 | -1,754.20 | -1,653.20 | -2,272.60 | -2,460.70 | -1,796.90 |
Available-for-sale equity securities | -1.8 | -10 | -2.7 | -18.5 | -52.1 | -24.9 | -53.6 | -59.6 | -10.9 |
Short-term investments | -649.3 | -699.5 | -1,058.90 | -849.4 | -1,584.60 | -1,089.10 | -1,794.40 | -1,559.70 | -1,814 |
Derivative instruments | -17.8 | -44.8 | -33 | -59.8 | -51.3 | -72.4 | -62.7 | -101.9 | -50.8 |
Fair value and other investments | -0.3 | -14.9 | -0.6 | -20 | -0.7 | -26.7 | -2.7 | -27 | -38.7 |
Sales, repayments and maturities of: | |||||||||
Available-for-sale debt securities | 338.7 | 428.4 | 662.7 | 912.5 | 1,187.70 | 1,519.60 | 1,651.90 | 2,130.70 | 1,871 |
Available-for-sale equity securities | 3.1 | 1.1 | 4.4 | 2.8 | 16.9 | 8.3 | 21.4 | 13.4 | 22.4 |
Short-term investments | 489.8 | 699.7 | 915.6 | 949.6 | 1,856.10 | 1,334.50 | 2,005.90 | 1,909.20 | 1,382.70 |
Derivative instruments | 42.1 | 12.5 | 53.6 | 22.4 | 73.5 | 34 | 96.2 | 49.5 | 26.7 |
Fair value and other investments | 2.8 | 4.6 | 14.1 | 11.7 | 16.7 | 18.2 | 23.8 | 26.6 | 49.3 |
Contributions to limited partnerships and limited liability corporations | -18.2 | -9.8 | -34 | -27.7 | -58 | -51.8 | -84.2 | -72.4 | -101.8 |
Distributions from limited partnerships and limited liability corporations | 30.3 | 33.6 | 64 | 58.8 | 104.5 | 78.9 | 157.1 | 146.8 | 138.4 |
Policy loans, net | 32 | 49.5 | 78 | 57.3 | 91 | 86.8 | 78 | 80.8 | 126.5 |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other investing activities, net | -2 | -0.8 | -4.4 | -4.2 | -7.7 | -6.9 | -8.9 | -10.4 | -7.7 |
Cash provided by (used for) investing activities | -89 | 65.5 | -212.6 | 58.9 | -162.2 | 155.3 | -244.8 | 65.3 | -203.8 |
FINANCING ACTIVITIES: | |||||||||
Policyholder deposits | 361.3 | 362.9 | 713 | 708.9 | 1,099.60 | 1,025.10 | 1,457.20 | 1,355 | 1,597.40 |
Policyholder withdrawals | -321.5 | -282.7 | -611.9 | -578.1 | -893.6 | -857.4 | -1,200.60 | -1,140.40 | -1,138.80 |
Net transfers (to) from separate accounts | 118.2 | 89.5 | 227.7 | 193 | 330.6 | 299.3 | 439.4 | 412.9 | 379.8 |
Impact of financing activities of consolidated investment entities, net | 0.1 | 0.6 | 0.2 | 1.1 | 0.1 | 2.3 | 4.1 | 4.5 | 1.3 |
Other financing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39.6 |
Cash provided by (used for) financing activities | 158.1 | 170.3 | 329 | 324.9 | 536.7 | 469.3 | 700.1 | 632 | 800.1 |
Change in cash and cash equivalents | -71.2 | 49.2 | -164.8 | 123.4 | -52 | 246.9 | -45.2 | 250.7 | 75.5 |
Change in cash included in discontinued operations assets | -0.7 | -0.4 | -1.4 | -0.5 | -1.2 | -0.5 | -1.2 | -0.7 | 2.7 |
Cash and cash equivalents, beginning of period | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 168.2 |
Cash and cash equivalents, end of period | 424.5 | 295.2 | 330.2 | 369.3 | 443.2 | 492.8 | 450 | 496.4 | 246.4 |
Supplemental Disclosure of Cash Flow Information | |||||||||
Income taxes (paid) refunded | 0 | -0.1 | 0 | -8.7 | 0 | -8.5 | -0.2 | -5.4 | -18.4 |
Interest expense on indebtedness paid | -4.7 | -4.7 | -13.9 | -13.9 | -18.6 | -18.6 | -27.9 | -27.9 | -30.4 |
Non-Cash Transactions During the Period | |||||||||
Investment exchanges | $13 | $37.70 | $62.40 | $74.40 | $62.40 | $85.70 | $93.30 | $98.80 | $96 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | COMMON STOCK: | ADDITIONAL PAID-IN CAPITAL: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | RETAINED EARNINGS (ACCUMULATED DEFICIT): | TREASURY STOCK, AT COST: | TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO THE PHOENIX COMPANIES, INC.: | NONCONTROLLING INTERESTS: | ||||
In Millions, unless otherwise specified | ||||||||||||
Balance, beginning of period at Dec. 31, 2011 | $691.40 | $1.30 | [1] | $2,630.50 | [1] | ($226.90) | ($1,536.80) | ($179.50) | [1] | $688.60 | $2.80 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Adjustment for reverse stock split | [1] | 1.2 | 1.2 | |||||||||
Issuance of shares and compensation expense on stock compensation awards | [1] | 1.4 | ||||||||||
Other comprehensive income (loss) | -16.9 | -16.9 | ||||||||||
Treasury shares purchased | [1] | -3.4 | ||||||||||
Net income (loss) | -165 | -165 | ||||||||||
Change in stockholders’ equity | -180 | -183.9 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -164.4 | 0.6 | ||||||||||
Contributions to noncontrolling interests | 4.7 | |||||||||||
Distributions from noncontrolling interests | -1.4 | |||||||||||
Issuance of Saybrus shares to noncontrolling interests | 0 | |||||||||||
Balance, end of period at Dec. 31, 2012 | 511.4 | 0.1 | [1] | 2,633.10 | [1] | -243.8 | -1,701.80 | -182.9 | [1] | 504.7 | 6.7 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of shares and compensation expense on stock compensation awards | -0.2 | |||||||||||
Other comprehensive income (loss) | -14.2 | -14.2 | ||||||||||
Net income (loss) | -70.9 | -70.9 | ||||||||||
Change in stockholders’ equity | -84.8 | -85.3 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -71 | |||||||||||
Balance, end of period at Mar. 31, 2013 | 426.6 | 0.1 | 2,632.90 | -258 | -1,772.70 | -182.9 | 419.4 | 7.2 | ||||
Balance, beginning of period at Dec. 31, 2012 | 511.4 | 2,633.10 | [1] | -243.8 | -1,701.80 | 504.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of shares and compensation expense on stock compensation awards | -0.1 | |||||||||||
Other comprehensive income (loss) | -27.3 | -27.3 | ||||||||||
Net income (loss) | -99.7 | -99.7 | ||||||||||
Change in stockholders’ equity | -126.3 | -127.1 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -99.9 | |||||||||||
Balance, end of period at Jun. 30, 2013 | 385.1 | 0.1 | 2,633 | -271.1 | -1,801.50 | -182.9 | 377.6 | 7.5 | ||||
Balance, beginning of period at Dec. 31, 2012 | 511.4 | 2,633.10 | [1] | -243.8 | -1,701.80 | 504.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of shares and compensation expense on stock compensation awards | ||||||||||||
Other comprehensive income (loss) | -11.6 | -11.6 | ||||||||||
Net income (loss) | -117.1 | -117.1 | ||||||||||
Change in stockholders’ equity | -126.8 | -128.7 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -117.4 | |||||||||||
Balance, end of period at Sep. 30, 2013 | 384.6 | 0.1 | 2,633.10 | -255.4 | -1,818.90 | -182.9 | 376 | 8.6 | ||||
Balance, beginning of period at Dec. 31, 2012 | 511.4 | 0.1 | [1] | 2,633.10 | [1] | -243.8 | -1,701.80 | -182.9 | [1] | 504.7 | 6.7 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Adjustment for reverse stock split | [1] | 0 | 0 | |||||||||
Issuance of shares and compensation expense on stock compensation awards | [1] | 0 | ||||||||||
Other comprehensive income (loss) | 58.8 | 58.8 | ||||||||||
Treasury shares purchased | [1] | 0 | ||||||||||
Net income (loss) | 26 | 26 | ||||||||||
Change in stockholders’ equity | 89.9 | 84.8 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 26.7 | 0.7 | ||||||||||
Contributions to noncontrolling interests | 4.6 | |||||||||||
Distributions from noncontrolling interests | -0.2 | |||||||||||
Issuance of Saybrus shares to noncontrolling interests | 0 | |||||||||||
Balance, end of period at Dec. 31, 2013 | 601.3 | 0.1 | [1] | 2,633.10 | [1] | -185 | -1,675.80 | -182.9 | [1] | 589.5 | 11.8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | |||||||||||
Other comprehensive income (loss) | -7.3 | -7.3 | ||||||||||
Net income (loss) | -28.1 | -28.1 | ||||||||||
Change in stockholders’ equity | -35.4 | -35.4 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -28.2 | |||||||||||
Balance, end of period at Mar. 31, 2014 | 565.9 | 0.1 | 2,633.10 | -192.3 | -1,703.90 | -182.9 | 554.1 | 11.8 | ||||
Balance, beginning of period at Dec. 31, 2013 | 601.3 | 2,633.10 | [1] | -185 | -1,675.80 | 589.5 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of shares and compensation expense on stock compensation awards | -0.4 | |||||||||||
Other comprehensive income (loss) | 12.9 | 12.9 | ||||||||||
Net income (loss) | -50.5 | -50.5 | ||||||||||
Change in stockholders’ equity | -38 | -38 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -50.6 | |||||||||||
Balance, end of period at Jun. 30, 2014 | 563.3 | 0.1 | 2,632.70 | -172.1 | -1,726.30 | -182.9 | 551.5 | 11.8 | ||||
Balance, beginning of period at Dec. 31, 2013 | 601.3 | 2,633.10 | [1] | -185 | -1,675.80 | 589.5 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of shares and compensation expense on stock compensation awards | -0.4 | |||||||||||
Other comprehensive income (loss) | 5.7 | 5.7 | ||||||||||
Net income (loss) | -72.9 | -72.9 | ||||||||||
Change in stockholders’ equity | -67.6 | -67.6 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -73.1 | |||||||||||
Balance, end of period at Sep. 30, 2014 | 533.7 | 0.1 | 2,632.70 | -179.3 | -1,748.70 | -182.9 | 521.9 | 11.8 | ||||
Balance, beginning of period at Dec. 31, 2013 | 601.3 | 0.1 | [1] | 2,633.10 | [1] | -185 | -1,675.80 | -182.9 | [1] | 589.5 | 11.8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Adjustment for reverse stock split | [1] | 0 | 0 | |||||||||
Issuance of shares and compensation expense on stock compensation awards | [1] | -0.3 | ||||||||||
Other comprehensive income (loss) | -49.4 | -49.4 | ||||||||||
Treasury shares purchased | [1] | 0 | ||||||||||
Net income (loss) | -213.2 | -213.2 | ||||||||||
Change in stockholders’ equity | -254.7 | -262.9 | ||||||||||
Net income (loss) attributable to noncontrolling interests | -209.2 | 4 | ||||||||||
Contributions to noncontrolling interests | 4.2 | |||||||||||
Distributions from noncontrolling interests | 0 | |||||||||||
Issuance of Saybrus shares to noncontrolling interests | 0 | |||||||||||
Balance, end of period at Dec. 31, 2014 | $346.60 | $0.10 | [1] | $2,632.80 | [1] | ($234.40) | ($1,889) | ($182.90) | [1] | $326.60 | $20 | |
[1] | Reflects the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to our consolidated financial statements for additional information on the reverse stock split. |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 0 Months Ended |
Aug. 10, 2012 | |
Statement of Stockholders' Equity [Abstract] | |
Reverse stock split ratio | 0.05 |
Organization_and_Description_o
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business |
The Phoenix Companies, Inc. (“we,” “our,” “us,” the “Company,” “PNX” or “Phoenix”) is a holding company and our operations are conducted through subsidiaries, principally Phoenix Life Insurance Company (“Phoenix Life”) and PHL Variable Insurance Company (“PHL Variable”), collectively with Phoenix Life and Phoenix Life and Annuity Company and American Phoenix Life and Reassurance, they are our “Life Companies.” We provide life insurance and annuity products through independent agents and financial advisors. Our policyholder base includes both affluent and middle market consumers, with our more recent business concentrated in the middle market. Most of our life insurance in force is permanent life insurance insuring one or more lives. Our annuity products include fixed and variable annuities with a variety of death benefit and guaranteed living benefit options. | |
We operate two businesses segments: Life and Annuity and Saybrus Partners, Inc. (“Saybrus”). The Life and Annuity segment includes individual life insurance and annuity products, including our closed block. Saybrus provides dedicated life insurance and other consulting services to financial advisors in partner companies, as well as support for sales of Phoenix’s product line through independent distribution organizations. |
Restatement_and_Revision_of_Pr
Restatement and Revision of Previously Reported Financial Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | ||||||||||||||||
Restatement and Revision of Previously Reported Financial Information | Restatement and Revision of Previously Reported Financial Information | |||||||||||||||
During the Company’s annual assumption review (or “Unlock”) which was performed in the fourth quarter of 2014, management observed results in the Company’s Universal Life (“UL”) business that did not align with its expectations and, upon further investigation, determined that certain components of the 2013 Unlock contained errors which were determined to be material to the year ended and the three-months ended December 31, 2013. In addition, the Company identified individually immaterial errors relating to its second quarter 2014 financial statements which when aggregated with the previously recorded and disclosed $6.2 million of out-of-period adjustments, were determined to be material for the three-months ended June 30, 2014. As a result of these errors and in accordance with ASC 250, “Accounting Changes and Error Corrections,” the Company is required to record all out-of-period errors, whether or not previously identified, in the period to which they relate. Accordingly, the Company has restated its financial statements for the year ended December 31, 2013, the three-months ended December 31, 2013 and the three-months ended June 30, 2014 and revised its financial statements for all other prior periods presented. Each of these restated or revised quarterly financial statements are presented in expanded format within Note 26. | ||||||||||||||||
The Company has classified the correction of errors into two categories (i) UL Unlock and (ii) Other Adjustments as detailed more fully below: | ||||||||||||||||
UL Unlock | ||||||||||||||||
In accordance with U.S. GAAP and our accounting policy, the Company performs an annual assumption review where management makes a determination of the best estimate assumptions to be used based on a comprehensive review of recent experience studies and industry trends each year. In 2013, the Company revised a number of assumptions, the most significant of which resulted in changes to expected premium persistency and incorporation of mortality improvement in its UL business. The incorporation of these changes resulted in manual updates to various models for which certain errors were subsequently identified in the course of performing analysis between the fourth quarter of 2014 and the prior period results. These errors related to inappropriate implementation of data used in the calculation of certain product features which then resulted in the incorrect calculation of the ultimate impact of the Unlock for the fourth quarter of 2013. | ||||||||||||||||
Other Adjustments | ||||||||||||||||
Amounts primarily relate to various out-of-period errors identified which were previously determined not to be material individually or in the aggregate except to the quarter ended June 30, 2014 as noted more fully above. The Company considered the impacts of each of these errors, many of which were previously identified and subsequently recorded as out-of-period adjustments, as well as subsequently identified errors both individually and in the aggregate during the course of this restatement and concluded that none were significant for individual categorization herein. | ||||||||||||||||
The impact of the correction of these errors on the consolidated financial statements is presented in the following tables within this Note below. | ||||||||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,808.60 | $ | — | $ | (77.1 | ) | [1] | $ | 11,731.50 | ||||||
Available-for-sale equity securities, at fair value | 61.8 | — | 76.2 | [1] | 138 | |||||||||||
Short-term investments | 361.6 | — | — | 361.6 | ||||||||||||
Limited partnerships and other investments | 561.9 | — | (0.6 | ) | 561.3 | |||||||||||
Policy loans, at unpaid principal balances | 2,350.30 | — | — | 2,350.30 | ||||||||||||
Derivative instruments | 243.1 | — | (14.3 | ) | 228.8 | |||||||||||
Fair value investments | 210.8 | — | 4.4 | 215.2 | ||||||||||||
Total investments | 15,598.10 | — | (11.4 | ) | 15,586.70 | |||||||||||
Cash and cash equivalents | 496.4 | — | — | 496.4 | ||||||||||||
Accrued investment income | 170.4 | — | — | 170.4 | ||||||||||||
Reinsurance recoverable | 603.3 | (4.3 | ) | (0.9 | ) | 598.1 | ||||||||||
Deferred policy acquisition costs | 940.6 | 7.8 | (0.6 | ) | 947.8 | |||||||||||
Deferred income taxes, net | 70 | — | — | 70 | ||||||||||||
Other assets [2] | 299.9 | 0.1 | 20.5 | 320.5 | ||||||||||||
Discontinued operations assets | 43.6 | — | 5.3 | 48.9 | ||||||||||||
Separate account assets | 3,402.30 | — | — | 3,402.30 | ||||||||||||
Total assets | $ | 21,624.60 | $ | 3.6 | $ | 12.9 | $ | 21,641.10 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,437.60 | $ | (15.9 | ) | $ | (5.1 | ) | $ | 12,416.60 | ||||||
Policyholder deposit funds | 3,429.70 | — | 12.9 | 3,442.60 | ||||||||||||
Dividend obligations | 705.9 | — | (0.2 | ) | 705.7 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 315.9 | — | (2.8 | ) | 313.1 | |||||||||||
Other liabilities | 333 | — | 4.3 | 337.3 | ||||||||||||
Discontinued operations liabilities | 37.7 | — | 5.7 | 43.4 | ||||||||||||
Separate account liabilities | 3,402.30 | — | — | 3,402.30 | ||||||||||||
Total liabilities | 21,040.90 | (15.9 | ) | 14.8 | 21,039.80 | |||||||||||
COMMITMENTS AND CONTINGENCIES (Notes 22, 23 and 24) | ||||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.10 | — | — | 2,633.10 | ||||||||||||
Accumulated other comprehensive income (loss) | (185.2 | ) | 0.3 | (0.1 | ) | (185.0 | ) | |||||||||
Retained earnings (accumulated deficit) | (1,692.1 | ) | 19.2 | (2.9 | ) | (1,675.8 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 573 | 19.5 | (3.0 | ) | 589.5 | |||||||||||
Noncontrolling interests | 10.7 | — | 1.1 | 11.8 | ||||||||||||
Total stockholders’ equity | 583.7 | 19.5 | (1.9 | ) | 601.3 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,624.60 | $ | 3.6 | $ | 12.9 | $ | 21,641.10 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $76.2 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 351.6 | $ | — | $ | — | $ | 351.6 | ||||||||
Fee income | 551.2 | (0.9 | ) | — | 550.3 | |||||||||||
Net investment income | 787.2 | 2.5 | 789.7 | |||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (7.5 | ) | — | 0.5 | (7.0 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (4.8 | ) | — | — | (4.8 | ) | ||||||||||
Net OTTI losses recognized in earnings | (12.3 | ) | — | 0.5 | (11.8 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 33.6 | — | (5.8 | ) | 27.8 | |||||||||||
Net realized investment gains (losses) | 21.3 | — | (5.3 | ) | 16 | |||||||||||
Gain on debt repurchase | — | — | — | — | ||||||||||||
Total revenues | 1,711.30 | (0.9 | ) | (2.8 | ) | 1,707.60 | ||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 1,026.50 | (12.3 | ) | (49.1 | ) | [1] | 965.1 | |||||||||
Policyholder dividends | 189.7 | — | 46.2 | [1] | 235.9 | |||||||||||
Policy acquisition cost amortization | 113.7 | (7.7 | ) | (2.9 | ) | 103.1 | ||||||||||
Interest expense on indebtedness | 28.9 | — | (0.6 | ) | 28.3 | |||||||||||
Other operating expenses | 335.6 | (0.1 | ) | 1.6 | 337.1 | |||||||||||
Total benefits and expenses | 1,694.40 | (20.1 | ) | (4.8 | ) | 1,669.50 | ||||||||||
Income (loss) from continuing operations before income taxes | 16.9 | 19.2 | 2 | 38.1 | ||||||||||||
Income tax expense (benefit) | 9.6 | — | (1.1 | ) | 8.5 | |||||||||||
Income (loss) from continuing operations | 7.3 | 19.2 | 3.1 | 29.6 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | (2.6 | ) | — | (0.3 | ) | (2.9 | ) | |||||||||
Net income (loss) | 4.7 | 19.2 | 2.8 | 26.7 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.4 | ) | — | 1.1 | 0.7 | |||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | 5.1 | $ | 19.2 | $ | 1.7 | $ | 26 | ||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | 5.1 | $ | 19.2 | $ | 1.7 | $ | 26 | ||||||||
Net income (loss) attributable to noncontrolling interests | (0.4 | ) | — | 1.1 | 0.7 | |||||||||||
Net income (loss) | 4.7 | 19.2 | 2.8 | 26.7 | ||||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (55.8 | ) | 0.3 | (7.2 | ) | (62.7 | ) | |||||||||
Net pension liability adjustment | 99.3 | — | 1.7 | 101 | ||||||||||||
Other comprehensive income (loss) before income taxes | 43.5 | 0.3 | (5.5 | ) | 38.3 | |||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (20.6 | ) | — | 0.1 | (20.5 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (20.6 | ) | — | 0.1 | (20.5 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | 64.1 | 0.3 | (5.6 | ) | 58.8 | |||||||||||
Comprehensive income (loss) | 68.8 | $ | 19.5 | $ | (2.8 | ) | $ | 85.5 | ||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.4 | ) | — | 1.1 | 0.7 | |||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | 69.2 | $ | 19.5 | $ | (3.9 | ) | $ | 84.8 | |||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | As of and for the year ended December 31, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | 1.27 | $ | 3.35 | $ | 0.35 | $ | 5.04 | ||||||||
Income (loss) from continuing operations – diluted | $ | 1.27 | $ | 3.33 | $ | 0.34 | $ | 5.01 | ||||||||
Income (loss) from discontinued operations – basic | $ | (0.45 | ) | $ | — | $ | (0.05 | ) | $ | (0.51 | ) | |||||
Income (loss) from discontinued operations – diluted | $ | (0.45 | ) | $ | — | $ | (0.05 | ) | $ | (0.50 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | 0.89 | $ | 3.35 | $ | 0.3 | $ | 4.53 | ||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | 0.88 | $ | 3.33 | $ | 0.29 | $ | 4.51 | ||||||||
Basic weighted-average common shares outstanding (in thousands) | 5,735 | 5,735 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,764 | 5,764 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 402.3 | $ | — | $ | — | $ | 402.3 | ||||||||
Fee income | 556.2 | — | (0.2 | ) | 556 | |||||||||||
Net investment income | 829.3 | — | (1.5 | ) | 827.8 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (51.7 | ) | — | 0.9 | (50.8 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | 22.9 | — | — | 22.9 | ||||||||||||
Net OTTI losses recognized in earnings | (28.8 | ) | — | 0.9 | (27.9 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 18.3 | — | (7.2 | ) | 11.1 | |||||||||||
Net realized investment gains (losses) | (10.5 | ) | — | (6.3 | ) | (16.8 | ) | |||||||||
Gain on debt repurchase | 11.9 | — | — | 11.9 | ||||||||||||
Total revenues | 1,789.20 | — | (8.0 | ) | 1,781.20 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 1,166.10 | — | (3.7 | ) | 1,162.40 | |||||||||||
Policyholder dividends | 294.8 | — | (2.7 | ) | 292.1 | |||||||||||
Policy acquisition cost amortization | 200 | — | (3.9 | ) | 196.1 | |||||||||||
Interest expense on indebtedness | 30.8 | — | — | 30.8 | ||||||||||||
Other operating expenses | 253.5 | — | (0.2 | ) | 253.3 | |||||||||||
Total benefits and expenses | 1,945.20 | — | (10.5 | ) | 1,934.70 | |||||||||||
Income (loss) from continuing operations before income taxes | (156.0 | ) | — | 2.5 | (153.5 | ) | ||||||||||
Income tax expense (benefit) | (3.7 | ) | — | (1.0 | ) | (4.7 | ) | |||||||||
Income (loss) from continuing operations | (152.3 | ) | — | 3.5 | (148.8 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (15.6 | ) | — | — | (15.6 | ) | ||||||||||
Net income (loss) | (167.9 | ) | — | 3.5 | (164.4 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.6 | — | — | 0.6 | ||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (168.5 | ) | $ | — | $ | 3.5 | $ | (165.0 | ) | ||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (168.5 | ) | $ | — | $ | 3.5 | $ | (165.0 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | 0.6 | — | — | 0.6 | ||||||||||||
Net income (loss) | (167.9 | ) | — | 3.5 | (164.4 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | 93.7 | — | 1.7 | 95.4 | ||||||||||||
Net pension liability adjustment | (21.4 | ) | — | 1.1 | (20.3 | ) | ||||||||||
Other comprehensive income (loss) before income taxes | 72.3 | — | 2.8 | 75.1 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | 90.9 | — | 1.1 | 92 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 90.9 | — | 1.1 | 92 | ||||||||||||
Other comprehensive income (loss), net of income taxes | (18.6 | ) | — | 1.7 | (16.9 | ) | ||||||||||
Comprehensive income (loss) | (186.5 | ) | — | 5.2 | (181.3 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.6 | — | — | 0.6 | ||||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (187.1 | ) | $ | — | $ | 5.2 | $ | (181.9 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | As of and for the year ended December 31, 2012 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (26.40 | ) | $ | — | $ | 0.61 | $ | (25.90 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (26.40 | ) | $ | — | $ | 0.61 | $ | (25.90 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (2.70 | ) | $ | — | $ | — | $ | (2.70 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (2.70 | ) | $ | — | $ | — | $ | (2.70 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (29.20 | ) | $ | — | $ | 0.61 | $ | (28.60 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (29.20 | ) | $ | — | $ | 0.61 | $ | (28.60 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,770 | 5,770 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,770 | 5,770 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | restated | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | 5.1 | $ | 20.9 | $ | 26 | ||||||||||
Net realized investment (gains) losses | (25.7 | ) | 5.3 | (20.4 | ) | |||||||||||
Policy acquisition costs deferred | (57.5 | ) | (0.9 | ) | (58.4 | ) | ||||||||||
Policy acquisition cost amortization | 113.7 | (10.6 | ) | 103.1 | ||||||||||||
Amortization and depreciation | 8.2 | — | 8.2 | |||||||||||||
Interest credited | 139 | — | 139 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (55.3 | ) | (3.6 | ) | (58.9 | ) | ||||||||||
Gain on debt repurchase | — | — | — | |||||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (86.5 | ) | 0.5 | (86.0 | ) | |||||||||||
Deferred income taxes | 0.3 | (0.3 | ) | — | ||||||||||||
Reinsurance recoverable | (21.2 | ) | 12.8 | (8.4 | ) | |||||||||||
Policy liabilities and accruals | (520.0 | ) | (71.8 | ) | [1] | (591.8 | ) | |||||||||
Dividend obligations | 10.8 | 46.3 | [1] | 57.1 | ||||||||||||
Pension and post-employment liabilities | (14.1 | ) | — | (14.1 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (3.2 | ) | 1.1 | (2.1 | ) | |||||||||||
Other operating activities, net [2] | 59.8 | 0.3 | 60.1 | |||||||||||||
Cash provided by (used for) operating activities | (446.6 | ) | — | (446.6 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (2,501.1 | ) | 40.4 | [3] | (2,460.7 | ) | ||||||||||
Available-for-sale equity securities | (19.2 | ) | (40.4 | ) | [3] | (59.6 | ) | |||||||||
Short-term investments | (1,559.7 | ) | — | (1,559.7 | ) | |||||||||||
Derivative instruments | (101.9 | ) | — | (101.9 | ) | |||||||||||
Fair value and other investments [4] | (27.0 | ) | — | (27.0 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 2,137.20 | (6.5 | ) | [3] | 2,130.70 | |||||||||||
Available-for-sale equity securities | 6.9 | 6.5 | [3] | 13.4 | ||||||||||||
Short-term investments | 1,909.20 | — | 1,909.20 | |||||||||||||
Derivative instruments | 49.5 | — | 49.5 | |||||||||||||
Fair value and other investments [4] | 26.6 | — | 26.6 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (72.4 | ) | — | (72.4 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 146.8 | — | 146.8 | |||||||||||||
Policy loans, net | 80.8 | — | 80.8 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (10.4 | ) | — | (10.4 | ) | |||||||||||
Cash provided by (used for) investing activities | 65.3 | — | 65.3 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions) | As of and for the year ended December 31, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | restated | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 1,355.00 | — | 1,355.00 | |||||||||||||
Policyholder withdrawals | (1,140.4 | ) | — | (1,140.4 | ) | |||||||||||
Net transfers (to) from separate accounts | 412.9 | — | 412.9 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 4.5 | — | 4.5 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 632 | — | 632 | |||||||||||||
Change in cash and cash equivalents | 250.7 | — | 250.7 | |||||||||||||
Change in cash included in discontinued operations assets | (0.7 | ) | — | (0.7 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 496.4 | $ | — | $ | 496.4 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (5.4 | ) | $ | — | $ | (5.4 | ) | ||||||||
Interest expense on indebtedness paid | $ | (27.9 | ) | $ | — | $ | (27.9 | ) | ||||||||
Non-Cash Transactions During the Period | ||||||||||||||||
Investment exchanges | $ | 98.8 | $ | — | $ | 98.8 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (168.5 | ) | $ | 3.5 | $ | (165.0 | ) | ||||||||
Net realized investment (gains) losses | 17.4 | 6.3 | 23.7 | |||||||||||||
Policy acquisition costs deferred | (58.1 | ) | — | (58.1 | ) | |||||||||||
Policy acquisition cost amortization | 200 | (3.9 | ) | 196.1 | ||||||||||||
Amortization and depreciation | 12 | — | 12 | |||||||||||||
Interest credited | 123.2 | — | 123.2 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (60.8 | ) | 1 | (59.8 | ) | |||||||||||
Gain on debt repurchase | (11.9 | ) | — | (11.9 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (123.2 | ) | 0.4 | (122.8 | ) | |||||||||||
Deferred income taxes | (19.8 | ) | (0.7 | ) | (20.5 | ) | ||||||||||
Reinsurance recoverable | (19.2 | ) | (3.5 | ) | (22.7 | ) | ||||||||||
Policy liabilities and accruals | (426.9 | ) | 1.5 | (425.4 | ) | |||||||||||
Dividend obligations | 82.9 | (5.6 | ) | 77.3 | ||||||||||||
Pension and post-employment liabilities | (20.8 | ) | — | (20.8 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (11.8 | ) | — | (11.8 | ) | |||||||||||
Other operating activities, net [1] | (35.3 | ) | 1 | (34.3 | ) | |||||||||||
Cash provided by (used for) operating activities | (520.8 | ) | — | (520.8 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (1,796.9 | ) | — | (1,796.9 | ) | |||||||||||
Available-for-sale equity securities | (10.9 | ) | — | (10.9 | ) | |||||||||||
Short-term investments | (1,814.0 | ) | — | (1,814.0 | ) | |||||||||||
Derivative instruments | (50.8 | ) | — | (50.8 | ) | |||||||||||
Fair value and other investments [3] | (38.7 | ) | — | (38.7 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 1,880.90 | (9.9 | ) | [2] | 1,871.00 | |||||||||||
Available-for-sale equity securities | 12.5 | 9.9 | [2] | 22.4 | ||||||||||||
Short-term investments | 1,382.70 | — | 1,382.70 | |||||||||||||
Derivative instruments | 26.7 | — | 26.7 | |||||||||||||
Fair value and other investments [3] | 49.3 | — | 49.3 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (101.8 | ) | — | (101.8 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 138.4 | — | 138.4 | |||||||||||||
Policy loans, net | 126.5 | — | 126.5 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (7.7 | ) | — | (7.7 | ) | |||||||||||
Cash provided by (used for) investing activities | (203.8 | ) | — | (203.8 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions) | As of and for the year ended December 31, 2012 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposit fund deposits | 1,597.40 | — | 1,597.40 | |||||||||||||
Policyholder deposit fund withdrawals | (1,138.8 | ) | — | (1,138.8 | ) | |||||||||||
Net transfers (to) from separate accounts | 379.8 | — | 379.8 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 1.3 | — | 1.3 | |||||||||||||
Other financing activities, net | (39.6 | ) | — | (39.6 | ) | |||||||||||
Cash provided by (used for) financing activities | 800.1 | — | 800.1 | |||||||||||||
Change in cash and cash equivalents | 75.5 | — | 75.5 | |||||||||||||
Change in cash included in discontinued operations assets | 2.7 | — | 2.7 | |||||||||||||
Cash and cash equivalents, beginning of period | 168.2 | — | 168.2 | |||||||||||||
Cash and cash equivalents, end of period | $ | 246.4 | $ | — | $ | 246.4 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (18.4 | ) | $ | — | $ | (18.4 | ) | ||||||||
Interest expense on indebtedness paid | $ | (30.4 | ) | $ | — | $ | (30.4 | ) | ||||||||
Non-Cash Transactions During the Period | ||||||||||||||||
Investment exchanges | $ | 96 | $ | — | $ | 96 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[2] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[3] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | restated | ||||||||||||||
COMMON STOCK: [1] | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Adjustment for reverse stock split | — | — | — | |||||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | — | — | — | |||||||||||||
Adjustment for reverse stock split | — | — | — | |||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | 64.1 | (5.3 | ) | 58.8 | ||||||||||||
Balance, end of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | 5.1 | 20.9 | 26 | |||||||||||||
Balance, end of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
TREASURY STOCK, AT COST: [1] | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Treasury shares purchased | — | — | — | |||||||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | 69.2 | 15.6 | 84.8 | |||||||||||||
Balance, end of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Net income (loss) attributable to noncontrolling interests | (0.4 | ) | 1.1 | 0.7 | ||||||||||||
Contributions to noncontrolling interests | 4.6 | — | 4.6 | |||||||||||||
Distributions from noncontrolling interests | (0.2 | ) | — | (0.2 | ) | |||||||||||
Issuance of Saybrus shares to noncontrolling interests | — | — | — | |||||||||||||
Balance, end of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | 73.2 | 16.7 | 89.9 | |||||||||||||
Stockholders’ equity, end of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: [1] | ||||||||||||||||
Balance, beginning of period | $ | 1.3 | $ | — | $ | 1.3 | ||||||||||
Adjustment for reverse stock split | (1.2 | ) | — | (1.2 | ) | |||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,630.50 | $ | — | $ | 2,630.50 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | 1.4 | — | 1.4 | |||||||||||||
Adjustment for reverse stock split | 1.2 | — | 1.2 | |||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (230.7 | ) | $ | 3.8 | $ | (226.9 | ) | ||||||||
Other comprehensive income (loss) | (18.6 | ) | 1.7 | (16.9 | ) | |||||||||||
Balance, end of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||
Balance, beginning of period | $ | (1,528.7 | ) | $ | (8.1 | ) | $ | (1,536.8 | ) | |||||||
Net income (loss) | (168.5 | ) | 3.5 | (165.0 | ) | |||||||||||
Balance, end of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
TREASURY STOCK, AT COST: [1] | ||||||||||||||||
Balance, beginning of period | $ | (179.5 | ) | $ | — | $ | (179.5 | ) | ||||||||
Treasury shares purchased | (3.4 | ) | — | (3.4 | ) | |||||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 692.9 | $ | (4.3 | ) | $ | 688.6 | |||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (189.1 | ) | 5.2 | (183.9 | ) | |||||||||||
Balance, end of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 2.8 | $ | — | $ | 2.8 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 0.6 | — | 0.6 | |||||||||||||
Contributions to noncontrolling interests | 4.7 | — | 4.7 | |||||||||||||
Distributions from noncontrolling interests | (1.4 | ) | — | (1.4 | ) | |||||||||||
Issuance of Saybrus shares to noncontrolling interests | — | — | — | |||||||||||||
Balance, end of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 695.7 | $ | (4.3 | ) | $ | 691.4 | |||||||||
Change in stockholders’ equity | (185.2 | ) | 5.2 | (180.0 | ) | |||||||||||
Stockholders’ equity, end of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies | ||||
We have prepared these consolidated financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), which differs materially from the accounting practices prescribed by various insurance regulatory authorities. Our consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidating these financial statements. | |||||
Certain prior year amounts have been reclassified to conform to the current year presentation. | |||||
Use of estimates | |||||
In preparing these consolidated financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are made in the determination of estimated gross profits (“EGPs”) and estimated gross margins (“EGMs”) used in the valuation and amortization of assets and liabilities associated with universal life and annuity contracts; policyholder liabilities and accruals; valuation of investments in debt and equity securities; limited partnerships and other investments; valuation of deferred tax assets; pension and other post-employment benefits liabilities; and accruals for contingent liabilities. Certain of these estimates are particularly sensitive to market conditions and/or volatility in the debt or equity markets could have a material impact on the consolidated financial statements. Actual results could differ from these estimates. | |||||
Holding company liquidity | |||||
The Phoenix Companies, Inc. serves as the holding company for our insurance subsidiaries and does not have any significant operations of its own. As of December 31, 2014 and 2013, liquidity (cash, short-term investments, available-for-sale debt securities and other near-cash assets) totaled $78.3 million and $181.5 million, respectively. Of this amount, $10.8 million and $0, respectively, is included in the escrow described below. | |||||
In addition to existing cash and securities, the holding company’s primary source of liquidity consists of dividends from Phoenix Life. Under New York Insurance Law, Phoenix Life is permitted to pay stockholder dividends to the holding company in any calendar year without prior approval from the New York Department of Financial Services (the “NYDFS”) in the amount of the lesser of 10% of Phoenix Life’s surplus to policyholders as of the immediately preceding calendar year or Phoenix Life’s statutory net gain from operations for the immediately preceding calendar year, not including realized capital gains. Based on this calculation, Phoenix Life would be able to pay a dividend of $59.9 million in 2015. During the year ended December 31, 2014, Phoenix Life declared $56.0 million in dividends. | |||||
Our principal needs at the holding company level are debt service, income taxes and certain operating expenses. | |||||
• | We pay interest on senior unsecured bonds. Interest paid on senior unsecured bonds for the years ended December 31, 2014, 2013 and 2012 was $20.0 million, $20.0 million and $20.0 million, respectively. As of December 31, 2014, future minimum annual principal payments on senior unsecured bonds are $252.7 million in 2032. See Note 9 to our consolidated financial statements under “Item 8: Financial Statements and Supplementary Data” in this Form 10-K for additional information. | ||||
• | The holding company and its subsidiaries have a tax sharing agreement. The subsidiaries compute their provision for federal income taxes as if they were filing a separate federal income tax return. There are quarterly settlements among the companies representing both the subsidiaries estimated separate company tax liability for the current tax year. and any amount that such subsidiary overpaid to the holding company for a taxable year. As part of the intercompany tax sharing agreement, the holding company is required to hold funds in escrow for the benefit of Phoenix Life in the event Phoenix Life incurs future taxable losses. In accordance with its regulatory obligation, in October 2014 the Company funded the escrow, with $78.9 million of assets including treasury stock, a surplus note issued by PHL Variable and $10.8 million of cash from the holding company. | ||||
• | The holding company pays operating expenses associated with its operation. It has also paid the majority of the expenses associated with the Prior Phoenix Restatement. Holding company operating expenses for the years ended December 31, 2014, 2013 and 2012 were $102.6 million, $70.7 million and $10.2 million. There are expense sharing arrangements in place among the holding company and its operating subsidiaries. However, given unique circumstances regarding the restatement, management determined it was in the best interest of the Company that the majority of these costs be borne by the holding company. | ||||
The holding company also provides capital support to its operating subsidiaries. Management targets a minimum risk based capital of 225% at PHL Variable. The Phoenix Companies, Inc. made $15.0 million and $45.0 million of capital contributions for the benefit of PHL Variable Insurance Company in 2014 and 2013, respectively and may need to again in the future. | |||||
The need for additional capital contributions to operating subsidiaries or an inability to reduce expenses at the holding company could constrain the ability of the holding company to meet its debt obligations. Based on management’s review of the holding company’s liquidity position, we believe it can continue to meet its liquidity obligations in the holding company through 2015 and beyond. | |||||
Adoption of new accounting standards | |||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists | |||||
In July 2013, the Financial Accounting Standards Board (the “FASB”) issued updated guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This new guidance was effective for interim or annual reporting periods beginning after December 15, 2013. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements | |||||
In June 2013, the FASB issued updated guidance clarifying the characteristics of an investment company and requiring new disclosures. This new guidance was effective for interim or annual reporting periods beginning after December 15, 2013. Under the guidance, all entities regulated under the Investment Company Act of 1940 automatically qualify as investment companies, while all other entities need to consider both the fundamental and typical characteristics of an investment company in determining whether they qualify as investment companies. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Obligations Resulting for Joint and Several Liability Agreements for Which the Total Amount of the Obligation is Fixed at the Reporting Date | |||||
In February 2013, the FASB issued new guidance regarding liabilities effective retrospectively for fiscal years beginning after December 15, 2013 and interim periods within those years. The amendments require an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition, the amendments require an entity to disclose the nature and amount of the obligation, as well as other information about the obligation. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Accounting standards not yet adopted | |||||
Amendments to Consolidation Guidance | |||||
In February 2015, the FASB issued updated consolidation guidance. The amendments revise existing guidance for when to consolidate variable interest entities (“VIEs”) and general partners’ investments in limited partnerships, end the deferral granted for applying the VIE guidance to certain investment companies, and reduce the number of circumstances where a decision maker’s or service provider’s fee arrangement is deemed to be a variable interest in an entity. The updates also modify consolidation guidance for determining whether limited partnerships are VIEs or voting interest entities. This guidance is effective for years beginning after December 31, 2015, and may be applied fully retrospectively or through a cumulative effect adjustment to retain earnings as of the beginning of the year of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Income Statement - Extraordinary and Unusual Items | |||||
In January 2015, the FASB issued new guidance regarding extraordinary items which eliminates the U.S. GAAP concept of an extraordinary item. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption is permitted if the guidance is applied as of the beginning of the annual period of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Presentation of Financial Statements - Going Concern | |||||
In August 2014, the FASB issued guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | |||||
In August 2014, the FASB issued guidance allowing (i.e., not requiring) a reporting entity to measure the financial assets and financial liabilities of a consolidated collateralized financing entity, within the scope of the new guidance, based on either the fair value of the financial assets or financial liabilities, whichever is more observable (referred to as a “measurement alternative”). The new guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 for public business entities. Early adoption will be permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Revenue from Contracts with Customers | |||||
In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2016, and must be applied using one of two retrospective application methods. Early adoption is not permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||||
In April 2014, the FASB issued updated guidance that changes the criteria for reporting discontinued operations and introduces new disclosures. The new guidance is effective prospectively to new disposals and new classifications of disposal groups as held for sale that occur within annual periods beginning on or after December 15, 2014 and interim periods within those annual periods. Early adoption is permitted for new disposals or new classifications as held for sale that have not been reported in financial statements previously issued. The Company will apply the guidance to new disposals and operations newly classified as held for sale, beginning first quarter of 2015, with no effect on existing reported discontinued operations. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Accounting for Troubled Debt Restructurings by Creditors | |||||
In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. This guidance can be elected for prospective adoption or by using a modified retrospective transition method. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Accounting for Investments in Qualified Affordable Housing Projects | |||||
In January 2014, the FASB issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and should be applied retrospectively to all periods presented. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Significant accounting policies | |||||
Investments | |||||
Debt and Equity Securities | |||||
Our debt securities classified as available-for-sale include bonds, structured securities and redeemable preferred stock. These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are reported on our consolidated balance sheets at fair value. Fair value is based on quoted market price, where available. When quoted market prices are not available, we estimate fair value by discounting debt security cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality (private placement debt securities), by quoted market prices of comparable instruments (untraded public debt securities) and by independent pricing sources or internally developed pricing models. We recognize unrealized gains and losses on investments in debt and equity securities that we classify as available-for-sale. We report these unrealized investment gains and losses as a component of OCI. Realized investment gains and losses are recognized on a first in first out basis. | |||||
Limited Partnerships and Other Investments | |||||
Limited partnerships, infrastructure funds, hedge funds and joint venture interests in which we do not have voting control or power to direct activities are recorded using the equity method of accounting. These investments include private equity, mezzanine funds, infrastructure funds, hedge funds of funds and direct equity investments. The equity method of accounting requires that the investment be initially recorded at cost and the carrying amount of the investment subsequently adjusted to recognize our share of the earnings or losses. We record our equity in the earnings in net investment income using the most recent financial information received from the partnerships. Recognition of net investment income is generally on a three-month delay due to the timing of the related financial statements. The contributions to and distributions from limited partnerships are classified as investing activities within the statement of cash flows. | |||||
The Company routinely evaluates these investments for impairments. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for other-than-temporary impairments (“OTTI”) when the carrying value of such investments exceeds the net asset value (“NAV”). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is other-than-temporarily impaired. When an OTTI has occurred, the impairment loss is recorded within net investment gains (losses). | |||||
Other investments also include leveraged lease investments which represent the net amount of the estimated residual value of the lease assets, rental receivables and unearned and deferred income to be allocated over the lease term. It further includes investments in life settlement contracts accounted for under the investment method under which the Company recognizes its initial investment in life settlement contracts at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force comprising mainly life insurance premiums, increase the carrying value of the investment while income on individual life settlement contracts are recognized when the insured dies, at an amount equal to the excess of the contract proceeds over the carrying amount of the contract at that time. Contracts are reviewed annually for indications that the expected future proceeds from the contract would not be sufficient to recover estimated future carrying amount of the contract (current carrying amount for the contract plus anticipated undiscounted future premiums and other capitalizable future costs.) Any such contracts identified are written down to estimated fair value. | |||||
Loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. In a troubled debt restructuring where the Company receives assets in full or partial satisfaction of the debt, any specific valuation allowance is reversed and a direct write down of the loan is recorded for the amount of the allowance and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. Any remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. | |||||
The consolidated financial statements include investments in limited partnerships, certain of which qualify as VIEs. We consolidate those limited partnerships which were determined to be VIEs when we are the primary beneficiary. | |||||
See Note 8 to these consolidated financial statements for additional information regarding VIEs. | |||||
Policy Loans | |||||
Policy loans are carried at their unpaid principal balances and are collateralized by the cash values of the related policies. The majority of policy loans are at variable interest rates that are reset annually on the policy anniversary. | |||||
Fair Value Instruments | |||||
Debt securities held at fair value include securities held for which changes in fair values are recorded in earnings. The securities held at fair value are designated as trading securities, as well as those debt securities for which we have elected the fair value option (“FVO”) and certain available-for-sale structured securities held at fair value. The changes in fair value and any interest income of these securities are reflected in earnings as part of “net investment income.” See Note 13 to these consolidated financial statements for additional disclosures related to these securities. | |||||
Derivative Instruments | |||||
We recognize derivative instruments on the consolidated balance sheets at fair value. The derivative contracts are reported as assets in derivative instruments or liabilities in other liabilities on the consolidated balance sheets, excluding embedded derivatives. Embedded derivatives, as discussed below, are recorded on the consolidated balance sheets bifurcated from the associated host contract. | |||||
The Company economically hedges variability of cash flows to be received or paid related to certain recognized assets and/or liabilities. All changes in the fair value of derivatives, including net receipts and payments, are included in net realized investment gains and losses without consideration of changes in the fair value of the economically associated assets or liabilities. We do not designate the purchased derivatives related to living benefits or index credits as hedges for accounting purposes. | |||||
Our derivatives are not designated as hedges for accounting purposes. All changes in the fair value, including net receipts and payments, are included in net realized investment gains and losses without consideration of changes in the fair value of the economically associated assets or liabilities. | |||||
Short-Term Investments | |||||
Short-term investments include securities with a maturity of one year or less but greater than three months at a time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. | |||||
Net Investment Income | |||||
For asset-backed and fixed maturity debt securities, we recognize interest income using a constant effective yield based on estimated cash flow timing and economic lives of the securities. For high credit quality asset-backed securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For asset-backed securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For certain credit impaired asset-backed securities, effective yields are recalculated and adjusted prospectively to reflect significant increases in undiscounted expected future cash flows and changes in the contractual benchmark interest rate on variable rate securities. Any prepayment fees on fixed maturities and mortgage loans are recorded when earned in net investment income. We record the net income from investments in partnerships and joint ventures in net investment income. | |||||
Other-Than-Temporary Impairments on Available-For-Sale Securities | |||||
We recognize realized investment losses when declines in fair value of debt and equity securities are considered to be an OTTI. | |||||
For debt securities, the other-than-temporarily impaired amount is separated into the amount related to a credit loss and is reported as net realized investment losses included in earnings and any amounts related to other factors are recognized in OCI. The credit loss component represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in AOCI. Subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the date of impairment at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. We will continue to estimate the present value of future expected cash flows and, if significantly greater than the new cost basis, we will accrete the difference as investment income on a prospective basis once the Company has determined that the interest income is likely to be collected. | |||||
In evaluating whether a decline in value is other-than-temporary, we consider several factors including, but not limited to, the following: | |||||
• | the extent and the duration of the decline; | ||||
• | the reasons for the decline in value (credit event, interest related or market fluctuations); | ||||
• | our intent to sell the security, or whether it is more likely than not that we will be required to sell it before recovery; and | ||||
• | the financial condition and near term prospects of the issuer. | ||||
An impairment of a debt security, or certain equity securities with debt-like characteristics, is deemed other-than-temporary if: | |||||
• | we either intend to sell the security, or it is more likely than not that we will be required to sell the security before recovery; or | ||||
• | it is probable we will be unable to collect cash flows sufficient to recover the amortized cost basis of the security. | ||||
An equity security impairment is deemed other-than-temporary if: | |||||
• | the security has traded at a significant discount to cost for an extended period of time; or | ||||
• | we determined we may not realize the full recovery on our investment. | ||||
Equity securities are determined to be other-than-temporarily impaired based on management judgment and the consideration of the issuer’s financial condition along with other relevant facts and circumstances. Those securities which have been in a continuous decline for over twelve months and declines in value that are severe and rapid are considered for reasonability of whether the impairment would be temporary. Although there may be sustained losses for over twelve months or losses that are severe and rapid, additional information related to the issuer performance may indicate that such losses are not other-than-temporary. | |||||
Impairments due to deterioration in credit that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security are considered other-than-temporary. Other declines in fair value (for example, due to interest rate changes, sector credit rating changes or company-specific rating changes) that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security may also result in a conclusion that an OTTI has occurred. | |||||
On a quarterly basis, we evaluate securities in an unrealized loss position for potential recognition of an OTTI. In addition, we maintain a watch list of securities in default, near default or otherwise considered by our investment professionals as being distressed, potentially distressed or requiring a heightened level of scrutiny. We also identify securities whose fair value has been below amortized cost on a continuous basis for zero to six months, six months to 12 months and greater than 12 months. | |||||
We employ a comprehensive process to determine whether or not a security in an unrealized loss position is other-than-temporarily impaired. This assessment is done on a security-by-security basis and involves significant management judgment. The assessment of whether impairments have occurred is based on management’s evaluation of the underlying reasons for the decline in estimated fair value. The Company’s review of its fixed maturity and equity securities for impairments includes an analysis of the total gross unrealized losses by severity and/or age of the gross unrealized loss. An extended and severe decline in value on a fixed maturity security may not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company’s evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for certain equity securities, greater weight and consideration are given by the Company to an extended decline in market value and the likelihood such market value decline will recover. | |||||
Specifically for structured securities, to determine whether a collateralized security is impaired, we obtain underlying data from the security’s trustee and analyze it for performance trends. A security-specific stress analysis is performed using the most recent trustee information. This analysis forms the basis for our determination of the future expected cash flows to be collected for the security. | |||||
The closed block policyholder dividend obligation, applicable DAC and applicable income taxes, which offset realized investment gains and losses and OTTIs, are each reported separately as components of net income. | |||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents include cash on hand, amounts due from banks, money market instruments and other debt instruments with original maturities of three months or less. Negative cash balances are reclassified to other liabilities. | |||||
Deferred Policy Acquisition Costs | |||||
We defer incremental direct costs related to the successful sale of new or renewal contracts. Incremental direct costs are those costs that result directly from and are essential to the sale of a contract. These costs include principally commissions, underwriting and policy issue expenses, all of which vary with and are primarily related to production of new business. | |||||
We amortize DAC based on the related policy’s classification. For individual participating life insurance policies, DAC is amortized in proportion to EGMs arising principally from investment results, mortality, dividends to policyholders and expense margins. For universal life, variable universal life and deferred annuities, DAC is amortized in proportion to EGPs as discussed more fully below. EGPs are also used to amortize other assets and liabilities in the Company’s consolidated balance sheets, such as sales inducement assets (“SIA”) and unearned revenue reserves (“URR”). Components of EGPs are used to determine reserves for universal life and fixed, indexed and variable annuity contracts with death and other insurance benefits such as guaranteed minimum death and guaranteed minimum income benefits. Both EGMs and EGPs are based on historical and anticipated future experience which is updated periodically. | |||||
In addition, DAC is adjusted through OCI each period as a result of unrealized gains or losses on securities classified as available-for-sale in a process commonly referred to as shadow accounting. This adjustment is required in order to reflect the impact of these unrealized amounts as if these unrealized amounts had been realized. | |||||
The projection of EGPs and EGMs requires the extensive use of actuarial assumptions, estimates and judgments about the future. Future EGPs and EGMs are generally projected for the estimated lives of the contracts. Assumptions are set separately for each product and are reviewed at least annually based on our current best estimates of future events. The following table summarizes the most significant assumptions used in the categories set forth below: | |||||
Significant Assumption | Product | Explanation and Derivation | |||
Separate account investment return | Variable Annuities | Separate account return assumptions are derived from the long-term returns observed in the asset classes in which the separate accounts are invested. Short-term deviations from the long-term expectations are expected to revert to the long-term assumption over five years. | |||
(7.9% long-term return assumption) | |||||
Variable Universal Life | |||||
(8.0% long-term return assumption) | |||||
Interest rates and default rates | Fixed and Indexed Annuities | Investment returns are based on the current yields and maturities of our fixed income portfolio combined with expected reinvestment rates given current market interest rates. Reinvestment rates are assumed to revert to long-term rates implied by the forward yield curve and long-term default rates. Contractually permitted future changes in credited rates are assumed to help support investment margins. | |||
Universal Life | |||||
Participating Life | |||||
Mortality / longevity | Universal Life | Mortality assumptions are based on Company experience over a rolling five-year period plus supplemental data from industry sources and trends. A mortality improvement assumption is also incorporated into the overall mortality table. These assumptions can vary by issue age, gender, underwriting class and policy duration. | |||
Variable Universal Life | |||||
Fixed and Indexed Annuities | |||||
Participating Life | |||||
Significant Assumption | Product | Explanation and Derivation | |||
Policyholder behavior – policy persistency | Universal Life | Policy persistency assumptions vary by product and policy year and are updated based on recently observed experience. Policyholders are generally assumed to behave rationally; hence rates are typically lower when surrender penalties are in effect or when policy benefits are more valuable. | |||
Variable Universal Life | |||||
Variable Annuities | |||||
Fixed and Indexed Annuities | |||||
Participating Life | |||||
Policyholder behavior – premium persistency | Universal Life | Future premiums and related fees are projected based on contractual terms, product illustrations at the time of sale and expected policy lapses without value. Assumptions are updated based on recently observed experience and include anticipated changes in behavior based on changes in policy charges if the Company has a high degree of confidence that such changes will be implemented (e.g., change in cost of insurance (“COI”) charges). | |||
Variable Universal Life | |||||
Expenses | All products | Projected maintenance expenses to administer policies in force are based on annually updated studies of expenses incurred. | |||
Reinsurance costs / recoveries | Universal Life | Projected reinsurance costs are based on treaty terms currently in force. Recoveries are based on the Company’s assumed mortality and treaty terms. Treaty recaptures are based on contract provisions and management’s intentions. | |||
Variable Universal Life | |||||
Variable Annuities | |||||
Participating Life | |||||
Annually, we complete a comprehensive assumption review where management makes a determination of best estimate assumptions based on a comprehensive review of recent experience and industry trends. Assumption changes resulting from this review may change our estimates of EGPs in the DAC, SIA, and URR models, as well as projections within the death benefit and other insurance benefit reserving models, the profits followed by losses reserve models, and cost of reinsurance models. Throughout the year, we may also update the assumptions and adjust these balances if emerging data indicates a change is warranted. All assumption changes, whether resulting from the annual comprehensive review or from other periodic assessments, are considered an unlock in the period of revision and adjust the DAC, SIA, URR, death and other insurance benefit reserves, profits followed by losses reserve, and cost of reinsurance balances in the consolidated balance sheets with an offsetting benefit or charge to income to reflect such changes in the period of the revision. An unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being more favorable than previous estimates. An unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being less favorable than previous estimates. | |||||
Our process to assess the reasonableness of the EGPs uses internally developed models together with consideration of applicable recent experience and analysis of market and industry trends and other events. Actual gross profits that vary from management’s estimates in a given reporting period may also result in increases or decreases in the rate of amortization recorded in the period. | |||||
An analysis is performed annually to assess if there are sufficient gross profits to recover the DAC associated with business written during the year. If the estimates of gross profits cannot support the recovery of DAC, the amount deferred is reduced to the recoverable amount. | |||||
The Company has updated a number of assumptions that have resulted in changes to expected future gross profits. The most significant assumption updates made over the last several years resulting in a change to future gross profits and the amortization of DAC, SIA and URR, as well as changes in PFBL and guaranteed benefit liabilities, are related to long-term expected mortality improvement; changes in expected premium persistency; changes in expected separate account investment returns due to changes in equity markets; changes in expected future interest rates and default rates based on continued experience and expected interest rate changes; changes in lapses and other policyholder behavior assumptions that are updated to reflect more recent policyholder and industry experience; and changes in expected policy administration expenses. | |||||
Sales inducements | |||||
The Company currently offers bonus payments to contract owners on certain of its individual life and annuity products. Expenses incurred related to bonus payments are deferred and amortized over the life of the related contracts in a pattern consistent with the amortization of DAC. The Company unlocks the assumptions used in the amortization of the deferred sales inducement assets consistent with the unlock of assumptions used in determining EGPs. Deferred sales inducements are included in other assets on the consolidated balance sheets and amortization of deferred sales inducements is included in other operating expense on the consolidated statements of income and comprehensive income. | |||||
Premises and equipment | |||||
Premises and equipment, consisting primarily of our main office building, are stated at cost less accumulated depreciation and amortization and are included in other assets. We depreciate the building on the straight-line method over 39 years and equipment on the straight-line method over three to seven years. We amortize leasehold improvements over the terms of the related leases or the useful life of the improvement, whichever is shorter. | |||||
Separate account assets and liabilities | |||||
Separate account assets related to policyholder funds are carried at fair value with an equivalent amount recorded as separate account liabilities. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues and the related liability increases are excluded from benefits and expenses. Fees assessed to the contract owners for management services are included in revenues when services are rendered. | |||||
Policy liabilities and accruals | |||||
Policy liabilities and accruals include future benefit liabilities for certain life and annuity products. We establish liabilities in amounts adequate to meet the estimated future obligations of policies in force. Future benefit liabilities for traditional life insurance are computed using the net level premium method on the basis of actuarial assumptions as to mortality rates guaranteed in calculating the cash surrender values described in such contracts, contractual guaranteed rates of interest which range from 2.3% to 6.0% and morbidity. Participating insurance represented 20.7% and 20.7% of direct individual life insurance in force at December 31, 2014 and 2013, respectively. | |||||
Generally, future policy benefits are payable over an extended period of time and related liabilities are calculated recognizing future expected benefits, expenses and premiums. Such liabilities are established based on methods and underlying assumptions in accordance with U.S. GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policyholder behavior, investment returns, inflation, expenses and other contingent events as appropriate. These assumptions are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a cohort basis, as appropriate. If experience is less favorable than assumed, additional liabilities may be established, resulting in a charge to policyholder benefits and claims. | |||||
Additional policyholder liabilities for guaranteed benefits on variable annuity and on fixed index annuity contracts are based on estimates of the expected value of benefits in excess of the projected account balance, recognizing the excess over the accumulation period based on total expected assessments. Because these estimates are sensitive to capital market movements, amounts are calculated using multiple future economic scenarios. | |||||
Additional policyholder liabilities are established for certain contract features on universal life and variable universal life products that could generate significant reductions to future gross profits (e.g., death benefits when a contract has zero account value and a no-lapse guarantee). The liabilities are accrued over the lifetime of the block based on assessments. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC and are, thus, subject to the same variability and risk. The assumptions of investment performance and volatility for variable and equity index products are consistent with historical experience of the appropriate underlying equity indices. | |||||
We expect that our universal life block of business will generate profits followed by losses and therefore we establish an additional liability to accrue for the expected losses over the period of expected profits. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC and are subject to the same variability and risk and the results are very sensitive to interest rates. | |||||
The liability for universal life-type contracts primarily includes the balance that accrues to the benefit of the policyholders as of the financial statement date, including interest credited at rates which range from 3.0% to 4.5%, amounts that have been assessed to compensate us for services to be performed over future periods, accumulated account deposits, withdrawals and any amounts previously assessed against the policyholder that are refundable. There may also be a liability recorded for contracts that include additional death or other insurance benefit features as discussed above. | |||||
The Company periodically reviews its estimates of actuarial liabilities for policyholder benefits and compares them with its actual experience. Differences between actual experience and the assumptions used in pricing these policies and guarantees, as well as in the establishment of the related liabilities, result in variances in profit and could result in losses. | |||||
Policy liabilities and accruals also include liabilities for outstanding claims, losses and loss adjustment expenses based on individual case estimates for reported losses and estimates of unreported losses based on past experience. The Company does not establish claim liabilities until a loss has occurred. However, unreported losses and loss adjustment expenses includes estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. | |||||
Embedded derivatives | |||||
Certain contracts contain guarantees that are accounted for as embedded derivative instruments. These guarantees are assessed to determine if a separate instrument with the same terms would qualify as a derivative and if they are not clearly and closely related to the economic characteristics of the host contract. Contract guarantees that meet these criteria are reported separately from the host contract and reported at fair value. | |||||
The guaranteed minimum withdrawal benefit (“GMWB”), guaranteed minimum accumulation benefit (“GMAB”) and combination rider (“COMBO”) represent embedded derivative liabilities in the variable annuity contracts. These liabilities are accounted for at fair value within policyholder deposit funds on the consolidated balance sheets with changes in the fair value of embedded derivatives recorded in realized investment gains on the consolidated statements of income and comprehensive income. The fair value of the GMWB, GMAB and COMBO obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. As markets change, contracts mature and actual policyholder behavior emerges, these assumptions are continually evaluated and may from time to time be adjusted. | |||||
Fixed indexed annuities offer a variety of index options: policy credits that are calculated based on the performance of an outside equity market or other index over a specified term. The index options represent embedded derivative liabilities accounted for at fair value within policyholder deposit funds on the consolidated balance sheets with changes in fair value recorded in realized investment gains and losses in the consolidated statements of income and comprehensive income. The fair value of these index options is based on the impact of projected interest rates and equity markets and is discounted using the projected interest rate. Several additional inputs reflect our internally developed assumptions related to lapse rates and policyholder behavior. | |||||
See Note 11 to these consolidated financial statements for additional information regarding embedded derivatives. | |||||
Policyholder deposit funds | |||||
Amounts received as payment for certain deferred annuities and other contracts without life contingencies are reported as deposits to policyholder deposit funds. The liability for deferred annuities and other contracts without life contingencies is equal to the balance that accrues to the benefit of the contract owner as of the financial statement date which includes the accumulation of deposits plus interest credited, less withdrawals and amounts assessed through the financial statement date as well as accumulated policyholder dividends and the liability representing the fair value of embedded derivatives associated with those contracts. | |||||
Contingent liabilities | |||||
Management evaluates each contingent matter separately and in aggregate. Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. | |||||
Demutualization and closed block | |||||
The closed block assets, including future assets from cash flows generated by the assets and premiums and other revenues from the policies in the closed block, will benefit only holders of the policies in the closed block. The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, investment purchases and sales, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions, investment income and realized investment gains and losses on investments held outside the closed block that support the closed block business. All of these excluded income and expense items enter into the determination of EGMs of closed block policies for the purpose of amortization of DAC. | |||||
In our financial statements, we present closed block assets, liabilities, revenues and expenses together with all other assets, liabilities, revenues and expenses. Within closed block liabilities, we have established a policyholder dividend obligation to record an additional liability to closed block policyholders for cumulative closed block earnings in excess of expected amounts calculated at the date of demutualization. These closed block earnings will not inure to shareholders, but will result in additional future dividends to closed block policyholders unless otherwise offset by future performance of the closed block that is less favorable than expected. | |||||
Revenue recognition | |||||
We recognize premiums for participating life insurance products and other life insurance products as revenue when due from policyholders. We match benefits, losses and related expenses with premiums over the related contract periods. | |||||
Amounts received as payment for universal life, variable universal life and other investment-type contracts are considered deposits and are not included in premiums. Revenues from these products consist primarily of fees assessed during the period against the policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Fees assessed that represent compensation for services to be provided in the future are deferred and amortized into revenue over the life of the related contracts in proportion to EGPs. | |||||
Certain variable annuity contracts and fixed index annuity contract riders provide the holder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. The fee for these riders is recorded in fee income. These benefits are accounted for as insurance benefits. Certain variable annuity contracts features and fixed index annuity index options are considered embedded derivatives. See Note 11 to these consolidated financial statements for additional information. | |||||
Reinsurance | |||||
Premiums, policy benefits and operating expenses related to our traditional life and term insurance policies are stated net of reinsurance ceded to other companies, except for amounts associated with certain modified coinsurance contracts which are reflected in the Company’s financial statements based on the application of the deposit method of accounting. Estimated reinsurance recoverables and the net estimated cost of reinsurance are recognized over the life of the reinsured treaty using assumptions consistent with those used to account for the policies subject to the reinsurance. | |||||
For universal life and variable universal life contracts, reinsurance premiums and ceded benefits are reflected net within policy benefits. Reinsurance recoverables are recognized in the same period as the related reinsured claim. The net cost or benefit of reinsurance (the present value of all expected ceded premium payments and expected future benefit payments) is recognized over the life of the reinsured treaty using assumptions consistent with those used to account for the policies subject to the reinsurance. | |||||
Income taxes | |||||
Income tax expense or benefit is recognized based upon amounts reported in the financial statements and the provisions of currently enacted tax laws. Deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. Valuation allowances on deferred tax assets are recorded to the extent that management concludes that it is more likely than not that an asset will not be realized. | |||||
We recognize current income tax assets and liabilities for estimated income taxes refundable or payable based on the income tax returns. We recognize deferred income tax assets and liabilities for the estimated future income tax effects of temporary differences and carryovers. Temporary differences are the differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as the timing of income or expense recognized for financial reporting and tax purposes of items not related to assets or liabilities. If necessary, we establish valuation allowances to reduce the carrying amount of deferred income tax assets to amounts that are more likely than not to be realized. We periodically review the adequacy of these valuation allowances and record any increase or reduction in allowances in accordance with intraperiod allocation rules. We assess all significant tax positions to determine if a liability for an uncertain tax position is necessary and, if so, the impact on the current or deferred income tax balances. Also, if indicated, we recognize interest or penalties related to income taxes as a component of the income tax provision. | |||||
Pension and other post-employment benefits | |||||
We recognize pension and other post-employment benefit costs and obligations over the employees’ expected service periods by discounting an estimate of aggregate benefits. We estimate aggregate benefits by using assumptions for rates of return on pension plan assets and future health care costs. We recognize an expense for differences between actual experience and estimates exceeding a corridor over the average future lifetime of participants. We recognize an expense for our contributions to employee and agent savings plans at the time employees and agents make contributions to the plans. We also recognize the costs and obligations of severance, disability and related life insurance and health care benefits to be paid to inactive or former employees after employment but before retirement. | |||||
Audit fees and other professional fees | |||||
Professional fees associated with the restatement of our prior period financial statements are recognized and expensed as incurred. The fees associated with the restatement of the 2012 Form 10-K totaled $44.0 million and $62.9 million in 2014 and 2013, respectively. |
Reinsurance
Reinsurance | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Reinsurance | Reinsurance | |||||||||||
We use reinsurance agreements to limit potential losses, reduce exposure to larger risks and provide capital relief with regard to certain reserves. | ||||||||||||
The amount of risk ceded depends on our evaluation of the specific risk and applicable retention limits. For business sold prior to December 31, 2010, our retention limit on any one life is $10 million for single life and joint first-to-die policies and $12 million for joint last-to-die policies. Beginning January 1, 2011, our retention limit on new business is $5 million for single life and joint first-to-die policies and $6 million for second-to-die policies. We also assume reinsurance from other insurers. | ||||||||||||
Our reinsurance program cedes various types of risks to other reinsurers primarily under yearly renewable term and coinsurance agreements. Yearly renewable term and coinsurance agreements result in passing all or a portion of the risk to the reinsurer. Under coinsurance agreements on our traditional and term insurance policies, the reinsurer receives a proportionate amount of the premiums less an allowance for commissions and expenses and is liable for a corresponding proportionate amount of all benefit payments. Under our yearly renewable term agreements, the ceded premium represents a charge for the death benefit coverage. | ||||||||||||
Effective October 1, 2009, PHL Variable and Phoenix Life and Annuity Company coinsured all the benefit risks, net of existing reinsurance, on their term insurance business in force. | ||||||||||||
Trust agreements and irrevocable letters of credit aggregating $45.8 million at December 31, 2014 have been arranged with commercial banks in our favor to collateralize the ceded reserves. This includes $2.8 million of irrevocable letters of credit related to our discontinued group accident and health reinsurance operations. | ||||||||||||
We assume and cede business related to our discontinued group accident and health reinsurance operations. While we are not writing any new contracts, we are contractually obligated to continue to assume and cede premiums related to existing contracts. See Note 23 to these consolidated financial statements for additional information. | ||||||||||||
Reinsurance recoverable includes balances due from reinsurers for paid and unpaid losses and is presented net of an allowance for uncollectable reinsurance. The reinsurance recoverable balance is $559.1 million and $598.1 million as of December 31, 2014 and 2013, respectively. Other reinsurance activity is shown below. | ||||||||||||
Direct Business and Reinsurance in Continuing Operations: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Direct premiums | $ | 473.2 | $ | 501.8 | $ | 565.3 | ||||||
Premiums assumed | 9.7 | 11.8 | 11.8 | |||||||||
Premiums ceded [1] | (150.8 | ) | (162.0 | ) | (174.8 | ) | ||||||
Premiums | $ | 332.1 | $ | 351.6 | $ | 402.3 | ||||||
Percentage of amount assumed to net premiums | 2.90% | 3.40% | 2.90% | |||||||||
Direct policy benefits incurred | $ | 785.3 | $ | 819.1 | $ | 812.9 | ||||||
Policy benefits assumed | 42.5 | 22.7 | 68.7 | |||||||||
Policy benefits ceded | (241.9 | ) | (265.4 | ) | (270.3 | ) | ||||||
Premiums paid [2] | 95.8 | 83.1 | 96.9 | |||||||||
Policy benefits [3] | $ | 681.7 | $ | 659.5 | $ | 708.2 | ||||||
Direct life insurance in force | $ | 95,811.40 | $ | 102,405.60 | $ | 111,682.70 | ||||||
Life insurance in force assumed | 1,721.00 | 1,678.20 | 1,756.70 | |||||||||
Life insurance in force ceded | (58,022.4 | ) | (62,553.8 | ) | (69,674.5 | ) | ||||||
Life insurance in force | $ | 39,510.00 | $ | 41,530.00 | $ | 43,764.90 | ||||||
Percentage of amount assumed to net insurance in force | 4.40% | 4.00% | 4.00% | |||||||||
——————— | ||||||||||||
[1] | Primarily represents premiums ceded to reinsurers related to traditional whole life and term insurance policies. | |||||||||||
[2] | For universal life and variable universal life contracts, premiums paid to reinsurers are reflected within policy benefits. See Note 3 to these consolidated financial statements for additional information regarding significant accounting policies. | |||||||||||
[3] | Policy benefit amounts above exclude changes in reserves, interest credited to policyholders and other items, which total $437.5 million, $305.6 million and $454.2 million, net of reinsurance, for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
We remain liable to the extent that reinsuring companies may not be able to meet their obligations under reinsurance agreements in effect. Failure of the reinsurers to honor their obligations could result in losses to the Company. Since we bear the risk of nonpayment, on a quarterly basis we evaluate the financial condition of our reinsurers and monitor concentrations of credit risk. Based on our review of their financial statements, reputation in the reinsurance marketplace and other relevant information, we believe that we have no material exposure to uncollectible life reinsurance. At December 31, 2014, five major reinsurance companies account for approximately 67% of the reinsurance recoverable. |
Demutualization_and_Closed_Blo
Demutualization and Closed Block | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Demutualization and Closed Block | Demutualization and Closed Block | |||||||||||
In 1999, we began the process of reorganizing and demutualizing our then principal operating company, Phoenix Home Life. We completed the process in June 2001, when all policyholder membership interests in this mutual company were extinguished and eligible policyholders of the mutual company received shares of PNX common stock, together with cash and policy credits, as compensation. To protect the future dividends of these policyholders, we also established a closed block for their existing policies. | ||||||||||||
Because closed block liabilities exceed closed block assets, we have a net closed block liability at December 31, 2014 and 2013, respectively. This net liability represents the maximum future earnings contribution to be recognized from the closed block and the change in this net liability each period is in the earnings contribution recognized from the closed block for the period. To the extent that actual cash flows differ from amounts anticipated, we may adjust policyholder dividends. If the closed block has excess funds, those funds will be available only to the closed block policyholders. However, if the closed block has insufficient funds to make policy benefit payments that are guaranteed, the payments will be made from assets outside of the closed block. | ||||||||||||
Closed Block Assets and Liabilities: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | Inception | |||||||||
As restated | ||||||||||||
Available-for-sale debt securities | $ | 5,877.00 | $ | 5,753.40 | $ | 4,773.10 | ||||||
Available-for-sale equity securities | 91.7 | 76.5 | — | |||||||||
Short-term investments | — | 106.9 | — | |||||||||
Limited partnerships and other investments | 343.4 | 345 | 399 | |||||||||
Policy loans | 1,159.10 | 1,201.60 | 1,380.00 | |||||||||
Fair value investments | 59.8 | 42.5 | — | |||||||||
Total closed block investments | 7,531.00 | 7,525.90 | 6,552.10 | |||||||||
Cash and cash equivalents | 89.6 | 78.2 | — | |||||||||
Accrued investment income | 80.7 | 81.7 | 106.8 | |||||||||
Reinsurance recoverable | 19.1 | 26.8 | — | |||||||||
Deferred income taxes, net | 290.3 | 285.4 | 389.4 | |||||||||
Other closed block assets | 67.4 | 58.2 | 41.4 | |||||||||
Total closed block assets | 8,078.10 | 8,056.20 | 7,089.70 | |||||||||
Policy liabilities and accruals | 8,058.20 | 8,258.40 | 8,301.70 | |||||||||
Policyholder dividends payable | 201.9 | 207.8 | 325.1 | |||||||||
Policy dividend obligation | 714.8 | 497.7 | — | |||||||||
Other closed block liabilities | 48 | 65.9 | 12.3 | |||||||||
Total closed block liabilities | 9,022.90 | 9,029.80 | 8,639.10 | |||||||||
Excess of closed block liabilities over closed block assets [1] | 944.8 | 973.6 | $ | 1,549.40 | ||||||||
Less: Excess of closed block assets over closed block liabilities attributable to | (11.8 | ) | (8.0 | ) | ||||||||
noncontrolling interests | ||||||||||||
Excess of closed block liabilities over closed block assets attributable to | $ | 956.6 | $ | 981.6 | ||||||||
The Phoenix Companies, Inc. | ||||||||||||
——————— | ||||||||||||
[1] | The maximum future earnings summary to inure to the benefit of the stockholders is represented by the excess of closed block liabilities over closed block assets. All unrealized investment gains (losses), net of income tax, have been allocated to the policyholder dividend obligation. | |||||||||||
Closed Block Revenues and Expenses and | For the years ended December 31, | |||||||||||
Changes in Policyholder Dividend Obligations: | ||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Closed block revenues | ||||||||||||
Premiums | $ | 301.8 | $ | 317.8 | $ | 369.5 | ||||||
Net investment income | 411.1 | 409.6 | 453.3 | |||||||||
Net realized investment gains (losses) | 12.8 | 16.6 | 9.2 | |||||||||
Total revenues | 725.7 | 744 | 832 | |||||||||
Policy benefits | 438.4 | 464.5 | 493.8 | |||||||||
Other operating expenses | 2.7 | 5.3 | 3 | |||||||||
Total benefits and expenses | 441.1 | 469.8 | 496.8 | |||||||||
Closed block contribution to income before dividends and income taxes | 284.6 | 274.2 | 335.2 | |||||||||
Policyholder dividends | (244.6 | ) | (235.7 | ) | (291.8 | ) | ||||||
Closed block contribution to income before income taxes | 40 | 38.5 | 43.4 | |||||||||
Applicable income tax expense | 13.3 | 13.4 | 15 | |||||||||
Closed block contribution to income | 26.7 | 25.1 | 28.4 | |||||||||
Less: Closed block contribution to income attributable to noncontrolling interests | 2 | 0.3 | 0.5 | |||||||||
Closed block contribution to income attributable to | $ | 24.7 | $ | 24.8 | $ | 27.9 | ||||||
The Phoenix Companies, Inc. | ||||||||||||
Policyholder dividend obligation | ||||||||||||
Policyholder dividends provided through earnings | $ | 244.6 | $ | 235.7 | $ | 291.8 | ||||||
Policyholder dividends provided through OCI | 138.8 | (308.4 | ) | 165.7 | ||||||||
Additions to (reductions of) policyholder dividend liabilities | 383.4 | (72.7 | ) | 457.5 | ||||||||
Policyholder dividends paid | (172.2 | ) | (178.6 | ) | (214.5 | ) | ||||||
Increase (decrease) in policyholder dividend liabilities | 211.2 | (251.3 | ) | 243 | ||||||||
Policyholder dividend liabilities, beginning of period | 705.5 | 956.8 | 713.8 | |||||||||
Policyholder dividend liabilities, end of period | 916.7 | 705.5 | 956.8 | |||||||||
Policyholder dividends payable, end of period | (201.9 | ) | (207.8 | ) | (223.8 | ) | ||||||
Policyholder dividend obligation, end of period | $ | 714.8 | $ | 497.7 | $ | 733 | ||||||
The policyholder dividend obligation includes approximately $277.9 million and $202.1 million, respectively, for cumulative closed block earnings in excess of expected amounts calculated at the date of demutualization as of December 31, 2014 and 2013, respectively. These closed block earnings will not inure to stockholders, but will result in additional future dividends to closed block policyholders unless otherwise offset by future performance of the closed block that is less favorable than expected. If actual cumulative performance is less favorable than expected, only actual earnings will be recognized in net income. As of December 31, 2014 and 2013, the policyholder dividend obligation also includes $436.9 million and $295.6 million, respectively, of net unrealized gains on investments supporting the closed block liabilities. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||||||||||||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs | |||||||||||
The balances of and changes in DAC as of and for the years ended December 31, are as follows: | ||||||||||||
Changes in Deferred Policy Acquisition Costs: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Balance, beginning of period | $ | 947.8 | $ | 898.1 | $ | 1,114.80 | ||||||
Policy acquisition costs deferred | 72.9 | 58.4 | 58.1 | |||||||||
Costs amortized to expenses: | ||||||||||||
Recurring costs | (129.5 | ) | (117.9 | ) | (141.3 | ) | ||||||
Assumption unlocking | (4.4 | ) | 25.4 | (55.6 | ) | |||||||
Realized investment gains (losses) | 14.3 | (10.6 | ) | 0.8 | ||||||||
Offsets to net unrealized investment gains or losses included in AOCI | (52.5 | ) | 94.4 | (78.7 | ) | |||||||
Balance, end of period | $ | 848.6 | $ | 947.8 | $ | 898.1 | ||||||
During the years ended December 31, 2014, 2013 and 2012, deferred expenses primarily consisted of third-party commissions related to fixed indexed annuity sales. |
Sales_Inducements
Sales Inducements | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Sales Inducements [Abstract] | ||||||||||||
Sales Inducements | Sales Inducements | |||||||||||
The balances of and changes in sales inducements as of and for the years ended December 31, are as follows: | ||||||||||||
Changes in Deferred Sales Inducement Activity: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Balance, beginning of period | $ | 77.4 | $ | 63.9 | $ | 51.2 | ||||||
Sales inducements deferred | 17.5 | 10.6 | 15.4 | |||||||||
Amortization charged to income | (8.0 | ) | (8.5 | ) | (5.7 | ) | ||||||
Offsets to net unrealized investment gains or losses included in AOCI | (7.5 | ) | 11.4 | 3 | ||||||||
Balance, end of period | $ | 79.4 | $ | 77.4 | $ | 63.9 | ||||||
Investing_Activities
Investing Activities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Investing Activities | Investing Activities | |||||||||||||||||||||||
Debt and equity securities | ||||||||||||||||||||||||
The following tables present the debt and equity securities available-for-sale by sector held at December 31, 2014 and 2013, respectively. The unrealized loss amounts presented below include the non-credit loss component of OTTI losses. We classify these investments into various sectors in line with industry conventions. | ||||||||||||||||||||||||
Fair Value and Cost of Securities: | As of December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Amortized | Gross | Gross | Fair | OTTI | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Recognized | ||||||||||||||||||||
Gains [1] | Losses [1] | in AOCI [2] | ||||||||||||||||||||||
U.S. government and agency | $ | 388.3 | $ | 55.2 | $ | (0.1 | ) | $ | 443.4 | $ | — | |||||||||||||
State and political subdivision | 518.3 | 42.1 | (2.5 | ) | 557.9 | (1.1 | ) | |||||||||||||||||
Foreign government | 205.8 | 26.5 | (1.4 | ) | 230.9 | — | ||||||||||||||||||
Corporate | 7,942.70 | 530 | (74.6 | ) | 8,398.10 | (8.3 | ) | |||||||||||||||||
Commercial mortgage-backed (“CMBS”) | 602.9 | 48.4 | (0.1 | ) | 651.2 | (1.2 | ) | |||||||||||||||||
Residential mortgage-backed (“RMBS”) | 1,862.50 | 81.6 | (11.9 | ) | 1,932.20 | (25.5 | ) | |||||||||||||||||
Collateralized debt obligation (“CDO”) / | 197.5 | 2.7 | (3.3 | ) | 196.9 | (13.9 | ) | |||||||||||||||||
collateralized loan obligation (“CLO”) | ||||||||||||||||||||||||
Other asset-backed (“ABS”) | 260 | 13.4 | (4.7 | ) | 268.7 | (1.8 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,978.00 | $ | 799.9 | $ | (98.6 | ) | $ | 12,679.30 | $ | (51.8 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,451.30 | $ | 458.1 | $ | (32.4 | ) | $ | 5,877.00 | $ | (14.7 | ) | ||||||||||||
Available-for-sale equity securities | $ | 156 | $ | 25.1 | $ | (1.6 | ) | $ | 179.5 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 80.5 | $ | 12.3 | $ | (1.1 | ) | $ | 91.7 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Fair Value and Cost of Securities: | As of December 31, 2013, as restated | |||||||||||||||||||||||
($ in millions) | Amortized | Gross | Gross | Fair | OTTI | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Recognized | ||||||||||||||||||||
Gains [1] | Losses [1] | in AOCI [2] | ||||||||||||||||||||||
U.S. government and agency | $ | 370.2 | $ | 36.2 | $ | (2.6 | ) | $ | 403.8 | $ | — | |||||||||||||
State and political subdivision | 402.5 | 18.2 | (10.2 | ) | 410.5 | (1.1 | ) | |||||||||||||||||
Foreign government | 194 | 16.6 | (0.7 | ) | 209.9 | — | ||||||||||||||||||
Corporate | 7,266.10 | 423 | (135.7 | ) | 7,553.40 | (8.8 | ) | |||||||||||||||||
CMBS | 681.2 | 35.8 | (3.2 | ) | 713.8 | (3.4 | ) | |||||||||||||||||
RMBS | 1,893.00 | 42 | (37.4 | ) | 1,897.60 | (26.7 | ) | |||||||||||||||||
CDO/CLO | 223.4 | 5.8 | (5.1 | ) | 224.1 | (15.3 | ) | |||||||||||||||||
Other ABS | 311.1 | 14.8 | (7.5 | ) | 318.4 | (1.8 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,341.50 | $ | 592.4 | $ | (202.4 | ) | $ | 11,731.50 | $ | (57.1 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,465.00 | $ | 362.6 | $ | (74.2 | ) | $ | 5,753.40 | $ | (16.5 | ) | ||||||||||||
Available-for-sale equity securities | $ | 119.3 | $ | 23.9 | $ | (5.2 | ) | $ | 138 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 69.3 | $ | 10.1 | $ | (2.9 | ) | $ | 76.5 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Maturities of Debt Securities: | As of December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 374.3 | $ | 381.2 | ||||||||||||||||||||
Due after one year through five years | 2,074.10 | 2,204.80 | ||||||||||||||||||||||
Due after five years through ten years | 3,528.60 | 3,673.30 | ||||||||||||||||||||||
Due after ten years | 3,078.10 | 3,371.00 | ||||||||||||||||||||||
CMBS/RMBS/ABS/CDO/CLO [1] | 2,922.90 | 3,049.00 | ||||||||||||||||||||||
Total | $ | 11,978.00 | $ | 12,679.30 | ||||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | CMBS, RMBS, ABS, CDO and CLO are not listed separately in the table as each security does not have a single fixed maturity. | |||||||||||||||||||||||
The maturities of debt securities, as of December 31, 2014, are summarized in the table above by contractual maturity. Actual maturities may differ from contractual maturities as certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties, and we have the right to put or sell certain obligations back to the issuers. | ||||||||||||||||||||||||
The following table depicts the sources of available-for-sale investment proceeds and related investment gains (losses). | ||||||||||||||||||||||||
Sales of Available-for-Sale Securities: | As of December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Debt securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 446.1 | $ | 532.2 | $ | 346.5 | ||||||||||||||||||
Proceeds from maturities/repayments | 1,225.30 | 1,544.00 | 1,517.30 | |||||||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 41.6 | 45.1 | 46.4 | |||||||||||||||||||||
Gross investment losses from sales and maturities | (17.6 | ) | (2.2 | ) | (11.1 | ) | ||||||||||||||||||
Equity securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 24.2 | $ | 12.7 | $ | 22.5 | ||||||||||||||||||
Gross investment gains from sales | 10.4 | 4.2 | 14.4 | |||||||||||||||||||||
Gross investment losses from sales | (1.0 | ) | (3.8 | ) | (0.4 | ) | ||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Less than 12 months | Greater than 12 months | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 2.7 | $ | (0.1 | ) | $ | 2.7 | $ | (0.1 | ) | ||||||||||
State and political subdivision | 11.6 | (0.6 | ) | 31.1 | (1.9 | ) | 42.7 | (2.5 | ) | |||||||||||||||
Foreign government | 15.7 | (1.4 | ) | — | — | 15.7 | (1.4 | ) | ||||||||||||||||
Corporate | 643 | (23.5 | ) | 654.3 | (51.1 | ) | 1,297.30 | (74.6 | ) | |||||||||||||||
CMBS | 12.6 | — | 10.9 | (0.1 | ) | 23.5 | (0.1 | ) | ||||||||||||||||
RMBS | 8.4 | (0.2 | ) | 226.7 | (11.7 | ) | 235.1 | (11.9 | ) | |||||||||||||||
CDO/CLO | 57.9 | (0.5 | ) | 96.3 | (2.8 | ) | 154.2 | (3.3 | ) | |||||||||||||||
Other ABS | 13.8 | (0.1 | ) | 16 | (4.6 | ) | 29.8 | (4.7 | ) | |||||||||||||||
Debt securities | 763 | (26.3 | ) | 1,038.00 | (72.3 | ) | 1,801.00 | (98.6 | ) | |||||||||||||||
Equity securities | 5.6 | (0.7 | ) | 15.2 | (0.9 | ) | 20.8 | (1.6 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 768.6 | $ | (27.0 | ) | $ | 1,053.20 | $ | (73.2 | ) | $ | 1,821.80 | $ | (100.2 | ) | |||||||||
Amounts inside the closed block | $ | 266.8 | $ | (11.7 | ) | $ | 387.8 | $ | (21.8 | ) | $ | 654.6 | $ | (33.5 | ) | |||||||||
Amounts outside the closed block | $ | 501.8 | $ | (15.3 | ) | $ | 665.4 | $ | (51.4 | ) | $ | 1,167.20 | $ | (66.7 | ) | |||||||||
Amounts outside the closed block | $ | 84.2 | $ | (4.1 | ) | $ | 50.4 | $ | (6.6 | ) | $ | 134.6 | $ | (10.7 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 158 | 211 | 369 | |||||||||||||||||||||
Unrealized losses on below-investment-grade debt securities outside the closed block and inside the closed block with a fair value depressed by more than 20% of amortized cost totaled $3.2 million and $1.7 million, respectively, at December 31, 2014, of which $2.1 million and $0.1 million, respectively, were depressed by more than 20% of amortized cost for more than 12 months. | ||||||||||||||||||||||||
As of December 31, 2014, available-for-sale securities in an unrealized loss position for over 12 months consisted of 201 debt securities and 10 equity securities. These debt securities primarily relate to corporate securities, RMBS and other ABS, which have depressed values due primarily to an increase in interest rates since the purchase of these securities. Unrealized losses were not recognized in earnings on these debt securities since the Company neither intends to sell the securities nor do we believe that it is more likely than not that it will be required to sell these securities before recovery of their amortized cost basis. Additionally, based on a security-by-security analysis, we expect to recover the entire amortized cost basis of these securities. In our evaluation of each security, management considers the actual recovery periods for these securities in previous periods of broad market declines. For securities with significant declines, individual security level analysis was performed, which considered any credit enhancements, expectations of defaults on underlying collateral and other available market data, including industry analyst reports and forecasts. Similarly, for equity securities in an unrealized loss position for greater than 12 months, management performed an analysis on a security-by-security basis. Although there may be sustained losses for greater than 12 months on these securities, additional information was obtained related to company performance which did not indicate that the additional losses were other-than-temporary. | ||||||||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of December 31, 2013, as restated | |||||||||||||||||||||||
($ in millions) | Less than 12 months | Greater than 12 months | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | 48 | $ | (2.1 | ) | $ | 3 | $ | (0.5 | ) | $ | 51 | $ | (2.6 | ) | |||||||||
State and political subdivision | 120.1 | (7.6 | ) | 10.7 | (2.6 | ) | 130.8 | (10.2 | ) | |||||||||||||||
Foreign government | 41 | (0.7 | ) | — | — | 41 | (0.7 | ) | ||||||||||||||||
Corporate | 1,701.50 | (86.5 | ) | 326.8 | (49.2 | ) | 2,028.30 | (135.7 | ) | |||||||||||||||
CMBS | 93.7 | (2.7 | ) | 10.4 | (0.5 | ) | 104.1 | (3.2 | ) | |||||||||||||||
RMBS | 773.5 | (24.4 | ) | 144.4 | (13.0 | ) | 917.9 | (37.4 | ) | |||||||||||||||
CDO/CLO | 64.1 | (0.6 | ) | 97.1 | (4.5 | ) | 161.2 | (5.1 | ) | |||||||||||||||
Other ABS | 22.3 | (0.1 | ) | 29.5 | (7.4 | ) | 51.8 | (7.5 | ) | |||||||||||||||
Debt securities | 2,864.20 | (124.7 | ) | 621.9 | (77.7 | ) | 3,486.10 | (202.4 | ) | |||||||||||||||
Equity securities | 55.3 | (4.3 | ) | 3.7 | (0.9 | ) | 59 | (5.2 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 2,919.50 | $ | (129.0 | ) | $ | 625.6 | $ | (78.6 | ) | $ | 3,545.10 | $ | (207.6 | ) | |||||||||
Amounts inside the closed block | $ | 1,172.70 | $ | (48.7 | ) | $ | 238.4 | $ | (28.4 | ) | $ | 1,411.10 | $ | (77.1 | ) | |||||||||
Amounts outside the closed block | $ | 1,746.80 | $ | (80.3 | ) | $ | 387.2 | $ | (50.2 | ) | $ | 2,134.00 | $ | (130.5 | ) | |||||||||
Amounts outside the closed block | $ | 76.4 | $ | (3.4 | ) | $ | 52.9 | $ | (7.8 | ) | $ | 129.3 | $ | (11.2 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 475 | 156 | 631 | |||||||||||||||||||||
Unrealized losses on below-investment-grade debt securities outside the closed block and inside the closed block with a fair value depressed by more than 20% of amortized cost totaled $5.1 million and $4.8 million, respectively, at December 31, 2013, of which $2.7 million and $0, respectively, were depressed by more than 20% of amortized cost for more than 12 months. | ||||||||||||||||||||||||
As of December 31, 2013, available-for-sale securities in an unrealized loss position for over 12 months consisted of 150 debt securities and six equity securities. These debt securities primarily relate to corporate securities, RMBS and other ABS, which have depressed values due primarily to an increase in interest rates since the purchase of these securities. Unrealized losses were not recognized in earnings on these debt securities since the Company neither intends to sell the securities nor do we believe that it is more likely than not that it will be required to sell these securities before recovery of their amortized cost basis. Additionally, based on a security-by-security analysis, we expect to recover the entire amortized cost basis of these securities. In our evaluation of each security, management considers the actual recovery periods for these securities in previous periods of broad market declines. For securities with significant declines, individual security level analysis was performed, which considered any credit enhancements, expectations of defaults on underlying collateral and other available market data, including industry analyst reports and forecasts. Similarly, for equity securities in an unrealized loss position for greater than 12 months, management performed an analysis on a security-by-security basis. Although there may be sustained losses for greater than 12 months on these securities, additional information was obtained related to company performance which did not indicate that the additional losses were other-than-temporary. | ||||||||||||||||||||||||
Evaluating temporarily impaired available-for-sale securities | ||||||||||||||||||||||||
In management’s evaluation of temporarily impaired securities, many factors about individual issuers of securities as well as our best judgment in determining the cause of a decline in the estimated fair value are considered in the assessment of potential near-term recovery in the security’s value. Some of those considerations include, but are not limited to: (i) duration of time and extent to which the estimated fair value has been below cost or amortized cost; (ii) for debt securities, if the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (iii) whether the issuer is experiencing significant financial difficulties and the potential for impairments of that issuer’s securities; (iv) pervasive issues across an entire industry sector/sub-sector; and (v) for structured securities, assessing any changes in the forecasted cash flows, the quality of underlying collateral, expectations of prepayment speeds, loss severity and payment priority of tranches held. | ||||||||||||||||||||||||
Other-than-temporary impairments | ||||||||||||||||||||||||
Management assessed all securities in an unrealized loss position in determining whether impairments were temporary or other-than-temporary. In reaching its conclusions, management exercised significant judgment and used a number of issuer-specific quantitative indicators and qualitative judgments to assess the probability of receiving a given security’s contractual cash flows. This included the issue’s implied yield to maturity, cumulative default rate based on rating, comparisons of issue-specific spreads to industry or sector spreads, specific trading activity in the issue and other market data, such as recent debt tenders and upcoming refinancing requirements. Management also reviewed fundamentals such as issuer credit and liquidity metrics, business outlook and industry conditions. Management maintains a watch list of securities that is reviewed for impairments. Each security on the watch list was evaluated, analyzed and discussed, with the positive and negative factors weighed in the ultimate determination of whether or not the security was other-than-temporarily impaired. For securities for which no OTTI was ultimately indicated at December 31, 2014, management does not have the intention to sell, nor does it expect to be required to sell, these securities prior to their recovery. | ||||||||||||||||||||||||
OTTIs recorded on available-for-sale debt and equity securities were $8.1 million in 2014, $11.8 million in 2013 and $27.6 million in 2012. The 2014 impairments were driven primarily by deterioration in issuer credit and liquidity metrics, and business outlook. | ||||||||||||||||||||||||
The following table presents a roll-forward of pre-tax credit losses recognized in earnings related to available-for-sale debt securities for which a portion of the OTTI was recognized in OCI. | ||||||||||||||||||||||||
Credit Losses Recognized in Earnings on Available-for-Sale Debt Securities | As of December 31, | |||||||||||||||||||||||
for which a Portion of the OTTI Loss was Recognized in OCI: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Balance, beginning of period | $ | (71.4 | ) | $ | (72.6 | ) | $ | (79.1 | ) | |||||||||||||||
Add: Credit losses on securities not previously impaired [1] | — | (1.1 | ) | (6.7 | ) | |||||||||||||||||||
Add: Credit losses on securities previously impaired [1] | — | (4.1 | ) | (13.3 | ) | |||||||||||||||||||
Less: Credit losses on securities impaired due to intent to sell | — | — | — | |||||||||||||||||||||
Less: Credit losses on securities sold | 19 | 6.4 | 26.5 | |||||||||||||||||||||
Less: Increases in cash flows expected on previously impaired securities | — | — | — | |||||||||||||||||||||
Balance, end of period | $ | (52.4 | ) | $ | (71.4 | ) | $ | (72.6 | ) | |||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Additional credit losses on securities for which a portion of the OTTI loss was recognized in AOCI are included within net OTTI losses recognized in earnings on the consolidated statements of income and comprehensive income. | |||||||||||||||||||||||
Limited partnerships and other investments | ||||||||||||||||||||||||
Limited Partnerships and Other Investments: | As of December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
As restated | ||||||||||||||||||||||||
Limited partnerships | ||||||||||||||||||||||||
Private equity funds | $ | 241.1 | $ | 240.8 | ||||||||||||||||||||
Mezzanine funds | 162.4 | 180.4 | ||||||||||||||||||||||
Infrastructure funds | 38.9 | 38.1 | ||||||||||||||||||||||
Hedge funds | 10.7 | 13 | ||||||||||||||||||||||
Mortgage and real estate funds | 3.7 | 3.3 | ||||||||||||||||||||||
Leveraged leases | 11.8 | 16.8 | ||||||||||||||||||||||
Direct equity investments | 49.6 | 44.5 | ||||||||||||||||||||||
Life settlements | 22.4 | 21.6 | ||||||||||||||||||||||
Other alternative assets | 2.2 | 2.8 | ||||||||||||||||||||||
Limited partnerships and other investments | $ | 542.8 | $ | 561.3 | ||||||||||||||||||||
Amounts applicable to the closed block | $ | 343.4 | $ | 345 | ||||||||||||||||||||
Equity method investees | ||||||||||||||||||||||||
The Company uses equity method accounting when it has more than a minor interest or influence of the partnership’s or limited liability company’s (“LLCs”) operations but does not have a controlling interest. Equity method income is recognized as earned by the investee. Management views the information reported from the underlying funds as the best information available to record its investments. Further, management is in direct communication with the fund managers to ensure accuracy of ending capital balances. | ||||||||||||||||||||||||
The following tables present the aggregated summarized financial information of certain equity method investees in limited partnerships and LLCs. For all three periods, the equity in earnings that we record through net investment income of these equity method investees in aggregate exceeds 10% of the Company’s income from continuing operations before income taxes. | ||||||||||||||||||||||||
Aggregated Summarized Balance Sheet Information of Equity Method Investees: | As of December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
As restated | ||||||||||||||||||||||||
Total assets | $ | 58,694.10 | $ | 56,434.10 | ||||||||||||||||||||
Total liabilities | $ | 1,630.20 | $ | 1,654.00 | ||||||||||||||||||||
Aggregated Net Investment Income: | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Total investment revenues | $ | 2,329.90 | $ | 2,759.70 | $ | 2,389.60 | ||||||||||||||||||
Net income | $ | 5,869.20 | $ | 9,297.30 | $ | 8,315.20 | ||||||||||||||||||
Summarized financial information for these equity method investees is reported on a three-month delay due to the timing of financial statements as of the current reporting period. | ||||||||||||||||||||||||
Leveraged leases | ||||||||||||||||||||||||
The Company records its investment in a leveraged lease net of the nonrecourse debt. The Company recognizes income on the leveraged leases by applying the estimated rate of return to the net investment in the lease. The Company regularly reviews the estimated residual values and, if necessary, impairs them to expected values. | ||||||||||||||||||||||||
Investment in leveraged leases, included in limited partnerships and other investments, consisted of the following: | ||||||||||||||||||||||||
Investment in Leveraged Leases: | 2014 | 2013 | ||||||||||||||||||||||
($ in millions) | As restated | |||||||||||||||||||||||
Rental receivables, net | $ | 4.9 | $ | 10.1 | ||||||||||||||||||||
Estimated residual values | 7.3 | 7.3 | ||||||||||||||||||||||
Unearned income | (0.4 | ) | (0.6 | ) | ||||||||||||||||||||
Investment in leveraged leases | $ | 11.8 | $ | 16.8 | ||||||||||||||||||||
Rental receivables are generally due in periodic installments. The payments are made semi-annually and range from three to five years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or non-performing, which is assessed at least annually. The Company defines non-performing rental receivables as those that are 90 days or more past due. At December 31, 2014 and 2013, all rental receivables were performing. The deferred income tax liability related to leveraged leases was $9.5 million and $11.7 million at December 31, 2014 and 2013, respectively. The components of income from investment in leveraged leases, excluding net investment gains (losses) were as follows: | ||||||||||||||||||||||||
Investment Income after Income Tax from | As of December 31, | |||||||||||||||||||||||
Investment in Leveraged Leases: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Income from investment in leveraged leases | $ | 0.1 | $ | 0.1 | $ | 0.2 | ||||||||||||||||||
Less: Income tax expense on leveraged leases | — | — | (0.1 | ) | ||||||||||||||||||||
Investment income after income tax from investment in leveraged leases | $ | 0.1 | $ | 0.1 | $ | 0.1 | ||||||||||||||||||
Direct equity investments | ||||||||||||||||||||||||
Direct equity investments are equity interests in LLCs entered into on a co-investment basis with sponsors of private equity funds for strategic and capital appreciation purposes and are accounted for under the equity method. The Company records its share of earnings on a three-month delay when timely financial information is not available and the delivery of investee’s financial reporting occurs after the end of the current reporting period. Further, management has open communication with each fund manager and, to the extent financial information is available, receives quarterly statements from the underlying funds. Management also performed an analysis on the funds’ financial statements to assess reasonableness of information provided by third parties. Income recognized from our other direct equity investments was $7.8 million, $7.0 million and $1.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
We consolidate those direct equity investments which were determined to be VIE’s when we are the primary beneficiary. The undistributed earnings of direct equity investments not consolidated were $(1.5) million, $5.4 million and $(2.0) million at December 31, 2014, 2013 and 2012, respectively. Any future investment in these structures is discretionary. | ||||||||||||||||||||||||
The following table presents the carrying value and change in investment balance of non-consolidated direct equity investments: | ||||||||||||||||||||||||
Carrying Value and Change in Investment Balance of | ||||||||||||||||||||||||
Non-Consolidated Direct Equity Investments: | ||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
Balance as of December 31, 2012, as revised | $ | 30.7 | ||||||||||||||||||||||
Net contributions (distributions) | 6.8 | |||||||||||||||||||||||
Net income (loss) | 7 | |||||||||||||||||||||||
Balance as of December 31, 2013, as restated | 44.5 | |||||||||||||||||||||||
Net contributions (distributions) | (2.7 | ) | ||||||||||||||||||||||
Net income (loss) | 7.8 | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 49.6 | ||||||||||||||||||||||
Life settlements | ||||||||||||||||||||||||
During 2014, 2013 and 2012, income (losses) recognized on life settlement contracts were $0, $0.7 million and $0.9 million, respectively. These amounts are included in net investment income in the consolidated statements of income and comprehensive income. Our life settlement contracts reported above are monitored for impairment on a contract-by-contract basis annually. An investment in a life settlement contract is considered impaired if the undiscounted cash flows from the expected proceeds from the insurance policy are less than the carrying amount of the investment plus the expected costs to keep the policy in force. If an impairment loss is recognized, the investment is written down to fair value. Anticipated policy cash flows are based on the Company’s latest mortality assumptions. Impairment charges on life settlement contracts included in net realized capital gains (losses) totaled $0, $0 and $0.3 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Remaining Life Expectancy of Insured: | Number of | Carrying | Face Value | |||||||||||||||||||||
($ in millions) | Contracts | Value | (Death Benefits) | |||||||||||||||||||||
0-5 years | 5 | $ | 13.7 | $ | 22 | |||||||||||||||||||
Thereafter | 8 | 8.7 | 37.1 | |||||||||||||||||||||
Total | 13 | $ | 22.4 | $ | 59.1 | |||||||||||||||||||
At December 31, 2014, the anticipated life insurance premiums required to keep the life settlement contracts in force, payable in the next 12 months ending December 31, 2015 and the four succeeding years ending December 31, 2019 are $1.3 million, $1.0 million, $1.2 million, $1.1 million and $1.1 million, respectively. | ||||||||||||||||||||||||
Statutory deposits | ||||||||||||||||||||||||
Pursuant to certain statutory requirements, as of December 31, 2014 and 2013, our Life Companies had on deposit securities with a fair value of $30.5 million and $31.1 million, respectively, in insurance department special deposit accounts. Our Life Companies are not permitted to remove the securities from these accounts without approval of the regulatory authority. | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Net investment income is comprised primarily of interest income, including amortization of premiums and accretion of discounts, based on yields which are changed due to expectations in projected cash flows, dividend income from common and preferred stock, gains and losses on securities measured at fair value and earnings from investments accounted for under equity method accounting. | ||||||||||||||||||||||||
Sources of Net Investment Income: | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Debt securities [1] | $ | 581.6 | $ | 565 | $ | 604.8 | ||||||||||||||||||
Equity securities | 9.2 | 7.2 | 4.3 | |||||||||||||||||||||
Limited partnerships and other investments | 65.3 | 58.3 | 63.7 | |||||||||||||||||||||
Policy loans | 167.4 | 160 | 161.5 | |||||||||||||||||||||
Fair value investments | 25.4 | 14.1 | 9.4 | |||||||||||||||||||||
Total investment income | 848.9 | 804.6 | 843.7 | |||||||||||||||||||||
Less: Discontinued operations | 1.1 | 1.3 | 2.1 | |||||||||||||||||||||
Less: Investment expenses | 16.9 | 13.6 | 13.8 | |||||||||||||||||||||
Net investment income | $ | 830.9 | $ | 789.7 | $ | 827.8 | ||||||||||||||||||
Amounts applicable to closed block | $ | 411.1 | $ | 409.6 | $ | 453.3 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes net investment income on short-term investments. | |||||||||||||||||||||||
Net realized investment gains (losses) | ||||||||||||||||||||||||
Sources and Types of Net Realized Investment Gains (Losses): | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Total other-than-temporary debt impairments | $ | (5.6 | ) | $ | (7.0 | ) | $ | (45.7 | ) | |||||||||||||||
Portion of losses recognized in OCI | (0.4 | ) | (4.8 | ) | 22.9 | |||||||||||||||||||
Net debt impairments recognized in earnings | $ | (6.0 | ) | $ | (11.8 | ) | $ | (22.8 | ) | |||||||||||||||
Debt security impairments: | ||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | — | ||||||||||||||||||
State and political subdivision | — | — | (0.6 | ) | ||||||||||||||||||||
Foreign government | — | — | — | |||||||||||||||||||||
Corporate | (6.0 | ) | (3.8 | ) | (3.0 | ) | ||||||||||||||||||
CMBS | — | (2.7 | ) | (4.1 | ) | |||||||||||||||||||
RMBS | — | (4.3 | ) | (10.3 | ) | |||||||||||||||||||
CDO/CLO | — | (1.0 | ) | (3.8 | ) | |||||||||||||||||||
Other ABS | — | — | (1.0 | ) | ||||||||||||||||||||
Net debt security impairments | (6.0 | ) | (11.8 | ) | (22.8 | ) | ||||||||||||||||||
Equity security impairments | (2.1 | ) | — | (4.8 | ) | |||||||||||||||||||
Limited partnerships and other investment impairments | — | — | (0.3 | ) | ||||||||||||||||||||
Impairment losses | (8.1 | ) | (11.8 | ) | (27.9 | ) | ||||||||||||||||||
Debt security transaction gains | 41.8 | 45.3 | 46.4 | |||||||||||||||||||||
Debt security transaction losses | (17.7 | ) | (2.2 | ) | (11.1 | ) | ||||||||||||||||||
Equity security transaction gains | 10.4 | 4.2 | 14.4 | |||||||||||||||||||||
Equity security transaction losses | (1.0 | ) | (3.8 | ) | (0.4 | ) | ||||||||||||||||||
Limited partnerships and other investment transaction gains | — | 0.8 | 7.7 | |||||||||||||||||||||
Limited partnerships and other investment transaction losses | (0.7 | ) | (4.6 | ) | (2.5 | ) | ||||||||||||||||||
Net transaction gains (losses) | 32.8 | 39.7 | 54.5 | |||||||||||||||||||||
Derivative instruments | (20.8 | ) | (27.7 | ) | (50.4 | ) | ||||||||||||||||||
Embedded derivatives [1] | (45.9 | ) | 12.2 | 4.9 | ||||||||||||||||||||
Assets valued at fair value | 0.8 | 3.6 | 2.1 | |||||||||||||||||||||
Net realized investment gains (losses), excluding impairment losses | (33.1 | ) | 27.8 | 11.1 | ||||||||||||||||||||
Net realized investment gains (losses), including impairment losses | $ | (41.2 | ) | $ | 16 | $ | (16.8 | ) | ||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity riders. See Note 11 to these consolidated financial statements for additional disclosures. | |||||||||||||||||||||||
Unrealized investment gains (losses) | ||||||||||||||||||||||||
Sources of Changes in Net Unrealized Investment Gains (Losses): | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Debt securities | $ | 311.3 | $ | (538.1 | ) | $ | 402.9 | |||||||||||||||||
Equity securities | 4.8 | 2.7 | 7.9 | |||||||||||||||||||||
Other investments | (4.1 | ) | 0.6 | (0.7 | ) | |||||||||||||||||||
Net unrealized investment gains (losses) | $ | 312 | $ | (534.8 | ) | $ | 410.1 | |||||||||||||||||
Net unrealized investment gains (losses) | $ | 312 | $ | (534.8 | ) | $ | 410.1 | |||||||||||||||||
Applicable to closed block policyholder dividend obligation | 138.8 | (308.4 | ) | 165.7 | ||||||||||||||||||||
Applicable to DAC | 52.5 | (94.4 | ) | 78.7 | ||||||||||||||||||||
Applicable to other actuarial offsets | 54.2 | (69.3 | ) | 70.3 | ||||||||||||||||||||
Applicable to deferred income tax expense (benefit) | 35.7 | (20.5 | ) | 92 | ||||||||||||||||||||
Offsets to net unrealized investment gains (losses) | 281.2 | (492.6 | ) | 406.7 | ||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | $ | 30.8 | $ | (42.2 | ) | $ | 3.4 | |||||||||||||||||
Consolidated variable interest entities | ||||||||||||||||||||||||
The Company regularly invests in private equity type fund structures which are VIEs. Entities which do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as VIEs. We perform ongoing assessments of our investments in VIEs to determine if we are the primary beneficiary. When we are the primary beneficiary of the entity we consolidate the VIE. The consolidated entities are all investment company-like structures which follow specialized investment company accounting and record underlying investments at fair value. The nature of the consolidated VIEs’ operations and purpose are private equity limited partnerships, single asset LLCs and a fund of fund investment structure and have investments in homogeneous types of assets. We consolidate these VIEs using the most recent financial information received from the partnerships. Recognition of operating results is generally on a three-month delay due to the timing of the related financial statements. | ||||||||||||||||||||||||
The following table presents the total assets and total liabilities relating to consolidated VIEs at December 31, 2014 and 2013. | ||||||||||||||||||||||||
Carrying Value of Assets and Liabilities for | 31-Dec-14 | December 31, 2013, as restated | ||||||||||||||||||||||
Consolidated Variable Interest Entities: | ||||||||||||||||||||||||
($ in millions) | Assets | Liabilities | Maximum | Assets | Liabilities | Maximum | ||||||||||||||||||
Exposure | Exposure | |||||||||||||||||||||||
to Loss [1] | to Loss [1] | |||||||||||||||||||||||
Debt securities, at fair value [2] | $ | 5.5 | $ | — | $ | 5.1 | $ | 3.6 | $ | — | $ | 3.2 | ||||||||||||
Equity securities, at fair value [2] | 35 | — | 30 | 29.4 | — | 24.7 | ||||||||||||||||||
Cash and cash equivalents | 9.4 | — | 9.3 | 10.8 | — | 10.6 | ||||||||||||||||||
Investment in partnership interests | — | — | — | 0.1 | — | 0.1 | ||||||||||||||||||
Investment in single asset LLCs | 50.6 | — | 36.6 | 24.3 | — | 18.3 | ||||||||||||||||||
Other assets | 0.6 | — | 0.5 | 0.6 | — | 0.5 | ||||||||||||||||||
Total assets of consolidated VIEs | $ | 101.1 | $ | — | $ | 81.5 | $ | 68.8 | $ | — | $ | 57.4 | ||||||||||||
Total liabilities of consolidated VIEs | $ | — | $ | 0.6 | $ | 0.5 | $ | — | $ | 0.8 | $ | 0.6 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the consolidated VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. The maximum exposure to loss above at December 31, 2014 and 2013 excludes unfunded commitments of $11.9 million and $0, respectively. | |||||||||||||||||||||||
[2] | Included in available-for-sale debt and equity securities, at fair value on the consolidated balance sheets. | |||||||||||||||||||||||
Non-consolidated variable interest entities | ||||||||||||||||||||||||
We hold limited partnership interests with various VIEs primarily as a passive investor in private equity limited partnerships and through direct investments, in which the general partners are not related parties. As the Company is not the general partner in any VIE structures, consolidation is based on evaluation of the primary beneficiary. This analysis includes a review of the VIE’s capital structure, nature of the VIE’s operations and purpose and the Company’s involvement with the entity. When determining the need to consolidate a VIE, the design of the VIE is evaluated as well as any exposed risks of the Company’s investment. These investments are accounted for under the equity method of accounting and are included in limited partnerships and other investments on our consolidated balance sheets. We reassess our VIE determination with respect to an entity on an ongoing basis. The following table presents the carrying value of assets and liabilities and the maximum exposure to loss relating to significant VIEs for which we are not the primary beneficiary. | ||||||||||||||||||||||||
The carrying value of our investments in non-consolidated VIEs (based upon sponsor values and financial statements of the individual entities) for which we are not the primary beneficiary was $151.5 million and $172.6 million as of December 31, 2014 and 2013, respectively. The maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. The Company has not provided nor intends to provide financial support to these entities unless contractually required. We do not have the contractual option to redeem these limited partnership interests but receive distributions based on the liquidation of the underlying assets. The Company must generally request general partner consent to transfer or sell its fund interests. The Company performs ongoing qualitative analysis of its involvement with VIEs to determine if consolidation is required. | ||||||||||||||||||||||||
Carrying Value of Assets and Liabilities | 31-Dec-14 | December 31, 2013, as restated | ||||||||||||||||||||||
and Maximum Exposure Loss Relating | ||||||||||||||||||||||||
to Variable Interest Entities: | ||||||||||||||||||||||||
($ in millions) | Assets | Liabilities | Maximum | Assets | Liabilities | Maximum | ||||||||||||||||||
Exposure | Exposure | |||||||||||||||||||||||
to Loss [1] | to Loss [1] | |||||||||||||||||||||||
Limited partnerships | $ | 106 | $ | — | $ | 157.8 | $ | 116.7 | $ | — | $ | 171.6 | ||||||||||||
LLCs | 45.5 | — | 45.5 | 55.9 | — | 55.9 | ||||||||||||||||||
Total | $ | 151.5 | $ | — | $ | 203.3 | $ | 172.6 | $ | — | $ | 227.5 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. | |||||||||||||||||||||||
In addition, the Company makes passive investments in structured securities issued by VIEs, for which the Company is not the manager, which are included in CMBS, RMBS, CDO/CLO and other ABS within available-for-sale debt securities, and in fair value investments, in the consolidated balance sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the size of our investment relative to the structured securities issued by the VIE, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits, and the Company’s lack of power over the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of our investment. | ||||||||||||||||||||||||
Issuer and counterparty credit exposure | ||||||||||||||||||||||||
Credit exposure related to issuers and derivatives counterparties is inherent in investments and derivative contracts with positive fair value or asset balances. We manage credit risk through the analysis of the underlying obligors, issuers and transaction structures. We review our debt security portfolio regularly to monitor the performance of obligors and assess the stability of their credit ratings. We also manage credit risk through industry and issuer diversification and asset allocation. Included in fixed maturities are below-investment-grade assets totaling $848.8 million and $864.0 million at December 31, 2014 and 2013, respectively. Maximum exposure to an issuer or derivative counterparty is defined by quality ratings, with higher quality issuers having larger exposure limits. As of December 31, 2014, we were exposed to the credit concentration risk of 18 issuers, Bank of America Corporation, General Electric Company, The Bank of New York Mellon Corporation, The Goldman Sachs Group Inc., JPMorgan Chase Co., BB&T Corporation, Morgan Stanley, HSBC Holdings plc, Credit Suisse Group AG, Metlife Inc., The PNC Financial Services Group Inc., Republic of Poland, Riverside Health System and Berkshire Hathaway Inc., Deutsche Bank AG, Barclays Bank PLC, HP Communities LLC, Irving Oil Ltd., representing exposure greater than 10% of stockholders’ equity other than U.S. government and government agencies backed by the faith and credit of the U.S. government. We monitor credit exposures by actively monitoring dollar limits on transactions with specific counterparties. We have an overall limit on below-investment-grade rated issuer exposure. Additionally, the creditworthiness of counterparties is reviewed periodically. We generally use ISDA Master Agreements which include Credit Support Annexes which include collateral provisions to reduce counterparty credit exposures. To further mitigate the risk of loss on derivatives, we only enter into contracts in which the counterparty is a financial institution with a rating of A or higher from at least one Nationally Recognized Statistical Rating Organization. | ||||||||||||||||||||||||
As of December 31, 2014, we held derivative assets, net of liabilities, with a fair value of $75.7 million. Derivative credit exposure was diversified with 11 different counterparties. We also had investments of these issuers with a fair value of $290.9 million as of December 31, 2014. Our maximum amount of loss due to credit risk with these issuers was $366.6 million as of December 31, 2014. See Note 12 to these consolidated financial statements for additional information regarding derivatives. |
Financing_Activities
Financing Activities | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Financing Activities | Financing Activities | |||||||||||
Debt is carried net of original issuer discount as follows: | ||||||||||||
Indebtedness at Carrying Value: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
As restated | ||||||||||||
7.15% surplus notes | $ | 126.2 | $ | 126.1 | ||||||||
7.45% senior unsecured bonds | 252.7 | 252.7 | ||||||||||
Total indebtedness | $ | 378.9 | $ | 378.8 | ||||||||
Our 7.15% surplus notes are an obligation of Phoenix Life and are due December 15, 2034. The carrying value of the 2034 notes is net of $0.5 million of unamortized original issue discount. Interest payments are at an annual rate of 7.15%, require the prior approval of the NYDFS and may be made only out of surplus funds which the NYDFS determines to be available for such payments under New York Insurance Law. The notes may be redeemed at the option of Phoenix Life at any time at the “make-whole” redemption price set forth in the offering circular. New York Insurance Law provides that the notes are not part of the legal liabilities of Phoenix Life. On September 21, 2012, Phoenix Life repurchased $48.3 million par amount of its outstanding 7.15% surplus notes, including $0.2 million in original issue discount, for aggregate consideration of $36.2 million. | ||||||||||||
The Phoenix Companies, Inc. senior unsecured bonds were issued in December 2001 for gross proceeds of $300.0 million (net proceeds of $290.6 million) and mature in January 2032. We pay interest at an annual rate of 7.45%. We may redeem any or all of the bonds at a redemption price equal to 100% of principal plus accrued and unpaid interest to the redemption date. We have repurchased a cumulative amount of $47.3 million of par value of these bonds as of December 31, 2014. During 2014 and 2013, no repurchases were made. In March 2013, we extinguished $31.4 million par value of these bonds. | ||||||||||||
The indenture governing our senior unsecured bonds (the “Indenture”) requires us to file with U.S. Bank, National Association, as trustee (the “Trustee”), within 15 days after we are required to file with the SEC, copies of the annual reports and of the information, documents and other reports that we are required to file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act. In connection with our restatement of financial statements for the years ended December 31, 2011, 2010 and 2009, the quarters of fiscal year 2011, the first and second quarters of 2012 and the delay in filing our Third Quarter 2012 Form 10-Q, we were unable to file our Third Quarter 2012 Form 10-Q with the SEC and meet the requirement to timely deliver a copy of such report to the Trustee. This resulted in a default under the Indenture governing the bonds. On November 30, 2012, the Trustee issued a notice of default, which stated that the failure of the Company to deliver the Third Quarter 2012 Form 10-Q constituted non-compliance with the reporting covenant in the Indenture and that delivery of such notice initiated a 60-day cure period. | ||||||||||||
On December 12, 2012, we commenced a consent solicitation of bondholders seeking the approval of amendments to the Indenture and a related waiver to extend the date to deliver our Third Quarter 2012 Form 10-Q to the Trustee to March 31, 2013 and waiving any and all defaults and events of default related to the delayed filing of our Third Quarter 2012 Form 10-Q that occurred prior to the effectiveness of the amendments and on January 16, 2013, we announced that we had received the requisite consent to the amendments to the Indenture and the related waiver. | ||||||||||||
On January 18, 2013, the Company and the Trustee executed a first supplemental indenture (“First Supplemental Indenture”) amending the Indenture effective as of such date to provide that until March 31, 2013, any failure by us to comply with the sections of the Indenture relating to the filing of the Third Quarter 2012 Form 10-Q would not constitute a default under the Indenture and that our filing of such report on a delayed basis on or prior to such time would satisfy our obligations under the reporting covenant in the Indenture. Pursuant to the waiver, any and all defaults and events of default occurring under the Indenture prior to the effectiveness of the First Supplemental Indenture were waived. | ||||||||||||
We commenced second and third consent solicitations of bondholders on April 24, 2013 and January 23, 2014, respectively, each of which was successful. | ||||||||||||
The April 24, 2013 consent solicitation resulted in an amendment to the Indenture and the provision of a related waiver to extend the date for providing the Trustee with the Third Quarter 2012 Form 10-Q, our 2012 Annual Report on Form 10-K (the “2012 Form 10-K”) and our Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 (the “2013 Forms 10-Q”) to December 31, 2013. | ||||||||||||
On May 23, 2013, the Company and the Trustee executed a second supplemental indenture (the “Second Supplemental Indenture”) amending the Indenture effective as of such date to provide that any failure by us to comply with the sections of the Indenture relating to these filings would not constitute a default under the Indenture, and that our filing of such reports on a delayed basis on or prior to such time would satisfy our obligations under the reporting covenant in the Indenture. Pursuant to the waiver, any and all defaults and events of default occurring under the Indenture prior to the effectiveness of the Second Supplemental Indenture were waived. | ||||||||||||
The January 23, 2014 consent solicitation resulted in a further amendment to the Indenture and the provision of a related waiver to extend the date for providing the Trustee with the Third Quarter 2012 Form 10-Q, the 2012 Form 10-K, the 2013 Forms 10-Q, our 2013 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the first, second and third quarters of 2014 to March 16, 2015. On February 21, 2014, the Company and the Trustee executed a third supplemental indenture (the “Third Supplemental Indenture”) amending the Indenture effective as of such date to provide that any failure by us to comply with the sections of the Indenture relating to these filings would not constitute a default under the Indenture, and that our filing of such reports on a delayed basis on or prior to such time would satisfy our obligations under the reporting covenant in the Indenture. Pursuant to the waiver, any and all defaults and events of default occurring under the Indenture prior to the effectiveness of the Third Supplemental Indenture were waived. | ||||||||||||
We have recorded indebtedness at unpaid principal balances of each instrument net of issue discount. The Company or its subsidiaries may, from time to time, purchase its debt securities in the open market subject to considerations including, but not limited to, market conditions, relative valuations, capital allocation and the determination that it is in the best interest of the Company and its stakeholders. | ||||||||||||
Future minimum annual principal payments on indebtedness as of December 31, 2014 are $252.7 million in 2032 and $126.7 million in 2034. There are no debt maturities in 2015 through 2019. | ||||||||||||
Interest Expense on Indebtedness, including Amortization of Debt Issuance Costs: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
7.15% surplus notes | $ | 9.1 | $ | 9.1 | $ | 11.6 | ||||||
7.45% senior unsecured bonds | 19.2 | 19.2 | 19.2 | |||||||||
Interest expense on indebtedness | $ | 28.3 | $ | 28.3 | $ | 30.8 | ||||||
Common_Stock_and_Stock_Repurch
Common Stock and Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Common Stock and Stock Repurchase Program | Common Stock and Stock Repurchase Program |
We have authorization for the issuance of 50 million shares of our common stock. The Company effected a 1-for-20 reverse stock split of its common stock following market close on August 10, 2012 which resulted in a decrease in the common stock balance with a corresponding increase in the additional paid in capital balance. As part of the reverse stock split, the par value remained at $0.01 per share. No fractional shares were issuable in connection with the reverse stock split. Instead, shareholders were entitled to receive cash in lieu of fractional shares, based on the closing price of the Company’s common stock on August 10, 2012. As a result of the reverse stock split, an aggregate of $2.9 million was payable to shareholders for such fractional shares. | |
Following the reverse stock split, the Company offered an odd lot program that provided post-reverse stock split shareholders who held fewer than 100 shares with a voluntary limited time means to sell their shares, purchase enough additional shares to increase their holding to a round lot of 100 shares or make a charitable donation of their shares. The odd lot program terminated as of October 26, 2012. | |
On September 20, 2012, the Board of Directors (the “Board”) of the Company authorized a program to repurchase up to an aggregate amount of $25,000,000 (not including fees and expenses) of the Company’s outstanding common stock shares. Under the stock repurchase program, purchases may be made from time to time in the open market, in accelerated stock buyback arrangements, in privately negotiated transactions or otherwise, subject to market prices and other conditions. No time limit was placed on the duration of the program, which may be modified, extended or terminated by the Board at any time. The Board also terminated, effective September 20, 2012, the Company’s existing stock repurchase program, which was announced on August 5, 2002. There were no repurchases during 2014 or 2013. | |
Through December 31, 2014, we have issued 6.4 million common shares (2.8 million shares to our policyholders in exchange for their interests in the mutual company and 3.6 million shares in sales to the public and to settle share-based compensation awards). As of December 31, 2014, we had 5.8 million shares outstanding, net of 0.7 million common shares of treasury stock. Shares issued and outstanding include 0.1 million shares held in a Rabbi Trust to fund equity awards on which recipients are allowed to vote their shares. As of December 31, 2014, we also had 0.4 million common shares reserved for issuance under our stock option plans (0.3 million shares) and our restricted stock unit (“RSU”) plans (0.1 million shares). Please note that these share and RSU amounts for all periods reflect the 1-for-20 reverse stock split, which became effective on August 10, 2012. | |
In 2014, 2013 and 2012, we did not pay any stockholder dividends. | |
State Farm Mutual Automobile Insurance Company (“State Farm”) currently owns of record 5.1% of our outstanding common stock. In 2014, 2013 and 2012, we incurred $2.7 million, $2.6 million and $2.3 million, respectively, as compensation costs for the sale of our insurance and annuity products by entities that were either subsidiaries of State Farm or owned by State Farm agents. |
Separate_Accounts_Death_Benefi
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives [Abstract] | ||||||||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives | Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives | |||||||||||||
Separate accounts | ||||||||||||||
Separate account products are those for which a separate investment and liability account is maintained on behalf of the policyholder. Investment objectives for these separate accounts vary by fund account type, as outlined in the applicable fund prospectus or separate account plan of operations. We have variable annuity and variable life insurance contracts that are classified as separate account products. The assets supporting these contracts are carried at fair value and are reported as separate account assets with an equivalent amount reported as separate account liabilities. Amounts assessed against the policyholder for mortality, administration and other services are included within revenue in fee income. In 2014 and 2013, there were no gains or losses on transfers of assets from the general account to a separate account. | ||||||||||||||
Assets with fair value and carrying value of $2.6 billion and $2.0 billion at December 31, 2014 and 2013, respectively, supporting fixed indexed annuities are maintained in accounts that are legally segregated from the other assets of the Company, but policyholders do not direct the investment of those assets and the investment performance does not pass through to the policyholders. These assets supporting fixed indexed annuity contracts are reported within the respective investment line items on the consolidated balance sheets. | ||||||||||||||
Separate Account Investments of Account Balances of Variable Annuity Contracts | As of December 31, | |||||||||||||
with Insurance Guarantees: | ||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
As restated | ||||||||||||||
Debt securities | $ | 375.9 | $ | 433 | ||||||||||
Equity funds | 1,638.60 | 1,920.40 | ||||||||||||
Other | 49.9 | 64.3 | ||||||||||||
Total | $ | 2,064.40 | $ | 2,417.70 | ||||||||||
Death benefits and other insurance benefit features | ||||||||||||||
Variable annuity guaranteed benefits | ||||||||||||||
We establish policy benefit liabilities for minimum death and income benefit guarantees relating to certain annuity policies as follows: | ||||||||||||||
• | Liabilities associated with the guaranteed minimum death benefit (“GMDB”) are determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the expected life of the contract based on total expected assessments. The assumptions used for calculating the liabilities are generally consistent with those used for amortizing DAC. | |||||||||||||
• | Liabilities associated with the guaranteed minimum income benefit (“GMIB”) are determined by estimating the expected value of the income benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The assumptions used for calculating such guaranteed income benefit liabilities are generally consistent with those used for amortizing DAC. | |||||||||||||
For variable annuities with GMDB and GMIB, reserves for these guarantees are calculated and recorded in policy liabilities and accruals on our consolidated balance sheets. Changes in the liability are recorded in policy benefits on our consolidated statements of income and comprehensive income. We regularly evaluate estimates used and adjust the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. | ||||||||||||||
Changes in Variable Annuity Guaranteed Insurance Benefit | For the year ended | |||||||||||||
Liability Balances: | December 31, 2014 | |||||||||||||
($ in millions) | Annuity | Annuity | ||||||||||||
GMDB | GMIB | |||||||||||||
Balance, beginning of period | $ | 22.7 | $ | 9.8 | ||||||||||
Incurred | 1.8 | 2.1 | ||||||||||||
Paid | (3.7 | ) | (0.2 | ) | ||||||||||
Change due to net unrealized gains or losses included in AOCI | 0.1 | — | ||||||||||||
Assumption unlocking | 0.5 | 5.4 | ||||||||||||
Balance, end of period | $ | 21.4 | $ | 17.1 | ||||||||||
Changes in Variable Annuity Guaranteed Insurance Benefit | For the year ended | |||||||||||||
Liability Balances: | December 31, 2013, as restated | |||||||||||||
($ in millions) | Annuity | Annuity | ||||||||||||
GMDB | GMIB | |||||||||||||
Balance, beginning of period | $ | 15.9 | $ | 21.7 | ||||||||||
Incurred | 2.1 | (3.6 | ) | |||||||||||
Paid | (3.7 | ) | — | |||||||||||
Change due to net unrealized gains or losses included in AOCI | — | (0.1 | ) | |||||||||||
Assumption unlocking | 8.4 | (8.2 | ) | |||||||||||
Balance, end of period | $ | 22.7 | $ | 9.8 | ||||||||||
Changes in Variable Annuity Guaranteed Insurance Benefit | For the year ended | |||||||||||||
Liability Balances: | December 31, 2012, as revised | |||||||||||||
($ in millions) | Annuity | Annuity | ||||||||||||
GMDB | GMIB | |||||||||||||
Balance, beginning of period | $ | 16.4 | $ | 17.6 | ||||||||||
Incurred | 0.6 | 4 | ||||||||||||
Paid | (1.1 | ) | — | |||||||||||
Change due to net unrealized gains or losses included in AOCI | — | 0.3 | ||||||||||||
Assumption unlocking | — | (0.2 | ) | |||||||||||
Balance, end of period | $ | 15.9 | $ | 21.7 | ||||||||||
For those guarantees of benefits that are payable in the event of death, the net amount at risk (“NAR”) is generally defined as the benefit payable in excess of the current account balance at our balance sheet date. We have entered into reinsurance agreements to reduce the net amount of risk on certain death benefits. Following are the major types of death benefits currently in force: | ||||||||||||||
GMDB and GMIB Benefits by Type: | 31-Dec-14 | |||||||||||||
($ in millions) | Account | NAR | NAR | Average | ||||||||||
Value | before | after | Attained Age | |||||||||||
Reinsurance | Reinsurance | of Annuitant | ||||||||||||
GMDB return of premium | $ | 661.5 | $ | 1.6 | $ | 1.6 | 63 | |||||||
GMDB step up | 1,723.20 | 112.2 | 13.4 | 64 | ||||||||||
GMDB earnings enhancement benefit (“EEB”) | 29.1 | — | — | 65 | ||||||||||
GMDB greater of annual step up and roll up | 22.7 | 4.8 | 4.8 | 69 | ||||||||||
Total GMDB at December 31, 2014 | 2,436.50 | $ | 118.6 | $ | 19.8 | |||||||||
Less: General account value with GMDB | 378.6 | |||||||||||||
Subtotal separate account liabilities with GMDB | 2,057.90 | |||||||||||||
Separate account liabilities without GMDB | 962.8 | |||||||||||||
Total separate account liabilities | $ | 3,020.70 | ||||||||||||
GMIB [1] at December 31, 2014 | $ | 319.6 | 65 | |||||||||||
GMDB and GMIB Benefits by Type: | December 31, 2013, as restated | |||||||||||||
($ in millions) | Account | NAR | NAR | Average | ||||||||||
Value | before | after | Attained Age | |||||||||||
Reinsurance | Reinsurance | of Annuitant | ||||||||||||
GMDB return of premium | $ | 770.3 | $ | 2.1 | $ | 2.1 | 63 | |||||||
GMDB step up | 1,974.70 | 117.9 | 9.9 | 64 | ||||||||||
GMDB earnings enhancement benefit (“EEB”) | 36 | 0.1 | 0.1 | 64 | ||||||||||
GMDB greater of annual step up and roll up | 26.7 | 4.8 | 4.8 | 68 | ||||||||||
Total GMDB at December 31, 2013 | 2,807.70 | $ | 124.9 | $ | 16.9 | |||||||||
Less: General account value with GMDB | 403.3 | |||||||||||||
Subtotal separate account liabilities with GMDB | 2,404.40 | |||||||||||||
Separate account liabilities without GMDB | 997.9 | |||||||||||||
Total separate account liabilities | $ | 3,402.30 | ||||||||||||
GMIB [1] at December 31, 2013 | $ | 398.6 | 64 | |||||||||||
——————— | ||||||||||||||
[1] | Policies with a GMIB also have a GMDB, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. | |||||||||||||
Return of Premium: The death benefit is the greater of current account value or premiums paid (less any adjusted partial withdrawals). | ||||||||||||||
Step Up: The death benefit is the greater of current account value, premiums paid (less any adjusted partial withdrawals) or the annual step up amount prior to the oldest original owner attaining a certain age. On and after the oldest original owner attains that age, the death benefit is the greater of current account value or the death benefit at the end of the contract year prior to the oldest original owner’s attaining that age plus premium payments (less any adjusted partial withdrawals) made since that date. | ||||||||||||||
Earnings Enhancement Benefit: The death benefit is the greater of the premiums paid (less any adjusted partial withdrawals) or the current account value plus the EEB. The EEB is an additional amount designed to reduce the impact of taxes associated with distributing contract gains upon death. | ||||||||||||||
Greater of Annual Step Up and Annual Roll Up: The death benefit is the greatest of premium payments (less any adjusted partial withdrawals), the annual step up amount, the annual roll up amount or the current account value prior to the oldest original owner attaining age 81. On and after the oldest original owner attained age 81, the death benefit is the greater of current account value or the death benefit at the end of the contract year prior to the oldest original owner’s attained age of 81 plus premium payments (less any adjusted partial withdrawals) made since that date. | ||||||||||||||
GMIB: The benefit is a series of monthly fixed annuity payments paid upon election of the rider. The monthly benefit is based on the greater of the sum of premiums (less any adjusted partial withdrawals) accumulated at an effective annual rate on the exercise date or 200% of the premiums paid (less any adjusted partial withdrawals) and a set of annuity payment rates that vary by benefit type and election age. | ||||||||||||||
Fixed indexed annuity guaranteed benefits | ||||||||||||||
Many of our fixed indexed annuities contain guaranteed benefits. We establish policy benefit liabilities for minimum death and minimum withdrawal benefit guarantees relating to these policies as follows: | ||||||||||||||
• | Liabilities associated with the GMWB and Chronic Care guarantees are determined by estimating the value of the withdrawal benefits expected to be paid after the projected account value depletes and recognizing the value ratably over the accumulation period based on total expected assessments. Liabilities associated with the GMWB for the fixed indexed annuities differ from those contained on variable annuities in that the GMWB feature and the underlying contract, exclusive of the equity index crediting option, are fixed income instruments. | |||||||||||||
• | Liabilities associated with the GMDB are determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the expected life of the contract based on total expected assessments. | |||||||||||||
The assumptions used for calculating GMWB, GMDB and Chronic Care guarantees are generally consistent with those used for amortizing DAC. We regularly evaluate estimates used and adjust the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. The GMWB, GMDB and Chronic Care guarantees on fixed indexed annuities are recorded in policy liabilities and accruals on our consolidated balance sheets. | ||||||||||||||
Changes in Fixed Indexed Annuity Guaranteed | Fixed Indexed Annuity | |||||||||||||
Liability Balances: | GMWB and GMDB | |||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
As restated | As revised | |||||||||||||
Balance, beginning of period | $ | 85.4 | $ | 102.1 | $ | 5.6 | ||||||||
Incurred | 33.4 | 60.8 | 37.2 | |||||||||||
Paid | (0.3 | ) | (0.3 | ) | — | |||||||||
Change due to net unrealized gains or losses included in AOCI | 35.9 | (58.5 | ) | 59.3 | ||||||||||
Assumption unlocking | (7.4 | ) | (18.7 | ) | — | |||||||||
Balance, end of period | $ | 147 | $ | 85.4 | $ | 102.1 | ||||||||
Universal life | ||||||||||||||
Liabilities for universal life contracts in excess of the account balance, some of which contain secondary guarantees, are generally determined by estimating the expected value of benefits and expenses when claims are triggered and recognizing those benefits and expenses over the accumulation period based on total expected assessments. The assumptions used in estimating these liabilities are generally consistent with those used for amortizing DAC. | ||||||||||||||
Changes in Universal Life Guaranteed | Universal Life | |||||||||||||
Liability Balances: | Secondary Guarantees | |||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
As restated | As revised | |||||||||||||
Balance, beginning of period | $ | 170.6 | $ | 138.5 | $ | 114.6 | ||||||||
Incurred | 39.9 | 37.9 | 29.3 | |||||||||||
Paid | (15.3 | ) | (14.3 | ) | (9.5 | ) | ||||||||
Change due to net unrealized gains or losses included in AOCI | 2.2 | (2.4 | ) | 2.4 | ||||||||||
Assumption unlocking | (1.6 | ) | 10.9 | 1.7 | ||||||||||
Balance, end of period | $ | 195.8 | $ | 170.6 | $ | 138.5 | ||||||||
In addition, the universal life block of business has experience which produces profits in earlier periods followed by losses in later periods for which additional reserves are required to be held above the account value liability. These reserves are accrued ratably over historical and anticipated positive income to offset the future anticipated losses. The assumptions used in estimating these liabilities are generally consistent with those used for amortizing DAC. The most significant driver of the positive 2014 unlock results in these reserves was the extension of mortality improvement for an additional year, which reduced overall expected mortality expense. | ||||||||||||||
Changes in Universal Life Additional | Universal Life | |||||||||||||
Liability Balances: | Profits Followed by Losses | |||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
As restated | As revised | |||||||||||||
Balance, beginning of period | $ | 249.1 | $ | 311.7 | $ | 209.8 | ||||||||
Incurred | 106.4 | 66.2 | 44 | |||||||||||
Change due to net unrealized gains or losses included in AOCI | 9 | 1.1 | 16.8 | |||||||||||
Assumption unlocking | (13.0 | ) | (129.9 | ) | 41.1 | |||||||||
Balance, end of period | $ | 351.5 | $ | 249.1 | $ | 311.7 | ||||||||
Embedded derivatives | ||||||||||||||
Variable annuity embedded derivatives | ||||||||||||||
Certain separate account variable products may contain a GMWB, GMAB and/or COMBO rider. These features are accounted for as embedded derivatives as described below. | ||||||||||||||
Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features: | As of December 31, 2014 | |||||||||||||
($ in millions) | Account | Average | ||||||||||||
Value | Attained Age | |||||||||||||
of Annuitant | ||||||||||||||
GMWB | $ | 496.8 | 65 | |||||||||||
GMAB | 315.6 | 59 | ||||||||||||
COMBO | 7.1 | 65 | ||||||||||||
Balance, end of period | $ | 819.5 | ||||||||||||
Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features: | As of December 31, 2013, as restated | |||||||||||||
($ in millions) | Account | Average | ||||||||||||
Value | Attained Age | |||||||||||||
of Annuitant | ||||||||||||||
GMWB | $ | 581.5 | 64 | |||||||||||
GMAB | 382.2 | 59 | ||||||||||||
COMBO | 7.2 | 63 | ||||||||||||
Balance, end of period | $ | 970.9 | ||||||||||||
The GMWB rider guarantees the contract owner a minimum amount of withdrawals and benefit payments over time, regardless of the investment performance of the contract, subject to an annual limit. Optional resets are available. In addition, these contracts have a feature that allows the contract owner to receive the guaranteed annual withdrawal amount for as long as they are alive. | ||||||||||||||
The GMAB rider provides the contract owner with a minimum accumulation of the contract owner’s purchase payments deposited within a specific time period, adjusted for withdrawals, after a specified amount of time determined at the time of issuance of the variable annuity contract. | ||||||||||||||
The COMBO rider includes either the GMAB or GMWB rider as well as the GMDB rider at the contract owner’s option. | ||||||||||||||
The GMWB, GMAB and COMBO features represent embedded derivative liabilities in the variable annuity contracts that are required to be reported separately from the host variable annuity contract. These liabilities are recorded at fair value within policyholder deposit funds on the consolidated balance sheets with changes in fair value recorded in realized investment gains on the consolidated statements of income and comprehensive income. The fair value of the GMWB, GMAB and COMBO obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. As markets change, contracts mature and actual policyholder behavior emerges, these assumptions are continually evaluated and may from time to time be adjusted. Embedded derivative liabilities for GMWB, GMAB and COMBO are shown in the table below. | ||||||||||||||
Variable Annuity Embedded Derivative Liabilities: | As of December 31, | |||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
As restated | ||||||||||||||
GMWB | $ | 7.3 | $ | (5.1 | ) | |||||||||
GMAB | (0.3 | ) | 1.4 | |||||||||||
COMBO | (0.2 | ) | (0.4 | ) | ||||||||||
Total variable annuity embedded derivative liabilities | $ | 6.8 | $ | (4.1 | ) | |||||||||
There were no benefit payments made for the GMWB and GMAB during 2014 and 2013. We have established a risk management strategy under which we hedge our GMAB, GMWB and COMBO exposure using equity index options, equity index futures, equity index variance swaps, interest rate swaps and swaptions. | ||||||||||||||
Fixed indexed annuity embedded derivatives | ||||||||||||||
Fixed indexed annuities may also contain a variety of index-crediting options: policy credits that are calculated based on the performance of an outside equity market or other index over a specified term. These index options are embedded derivative liabilities that are required to be reported separately from the host contract. These index options are accounted for at fair value and recorded in policyholder deposits within the consolidated balance sheets with changes in fair value recorded in realized investment gains, in the consolidated statements of income and comprehensive income. The fair value of these index options is calculated using the budget method. See Note 13 to these consolidated financial statements for additional information. Several additional inputs reflect our internally developed assumptions related to lapse rates and other policyholder behavior. The fair value of these embedded derivatives was $153.9 million and $91.9 million as of December 31, 2014 and 2013, respectively. In order to manage the risk associated with these equity indexed-crediting features, we hedge using equity index options. See Note 12 to these consolidated financial statements for additional information. | ||||||||||||||
Embedded derivatives realized gains and losses | ||||||||||||||
Changes in the fair value of embedded derivatives associated with variable annuity and fixed indexed annuity contracts are recorded as realized investment gains and losses within the consolidated statements of income and comprehensive income. Embedded derivatives gains and (losses) recognized in earnings are $(45.9) million, $12.2 million and $4.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||||||||||||
We use derivative financial instruments, including options, futures and swaps as a means of hedging exposure to interest rate, equity price change, equity volatility and foreign currency risk. This includes our surplus hedge which utilizes futures and options to hedge against declines in equity markets and the resulting statutory capital and surplus impact, as well as our fixed indexed annuity (“FIA”) separate account hedge which uses interest rate swaptions to hedge against rising interest rates. We also use derivative instruments to economically hedge our exposure on living benefits offered on certain of our variable annuity products as well as index credits on our FIA products. | ||||||||||||||||||||||||
The Company seeks to enter into over-the-counter (“OTC”) derivative transactions pursuant to master agreements that provide for a netting of payments and receipts by counterparty. As of December 31, 2014 and 2013, $18.6 million and $28.2 million respectively, of cash and cash equivalents were held as collateral by a third party related to our derivative transactions. | ||||||||||||||||||||||||
Our derivatives are not designated as hedges for accounting purposes. | ||||||||||||||||||||||||
Derivative Instruments: | Maturity | Notional | Fair Value as of | |||||||||||||||||||||
Amount | December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Assets | Liabilities [1] | ||||||||||||||||||||||
Interest rate swaps | 2016 - 2029 | $ | 114 | $ | 9.7 | $ | 1.9 | |||||||||||||||||
Variance swaps | 2015 - 2017 | 0.9 | — | 8.6 | ||||||||||||||||||||
Swaptions | 2024 - 2025 | 777 | 0.1 | — | ||||||||||||||||||||
Put options | 2015 - 2022 | 692.5 | 31.1 | — | ||||||||||||||||||||
Call options [2] | 2015 - 2019 | 2,019.20 | 119.8 | 74.6 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | 0.6 | — | ||||||||||||||||||||
Equity futures | 2015 | 4.1 | — | 0.5 | ||||||||||||||||||||
Total derivative instruments | $ | 3,617.70 | $ | 161.3 | $ | 85.6 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $1.5 million. | |||||||||||||||||||||||
Derivative Instruments: | Maturity | Notional | Fair Value as of | |||||||||||||||||||||
Amount | December 31, 2013, as restated | |||||||||||||||||||||||
($ in millions) | Assets | Liabilities [1] | ||||||||||||||||||||||
Interest rate swaps | 2016 - 2027 | $ | 139 | $ | 3.9 | $ | 6.8 | |||||||||||||||||
Variance swaps | 2015 - 2017 | 0.9 | — | 7.9 | ||||||||||||||||||||
Swaptions | 2024 - 2025 | 3,902.00 | 30.7 | — | ||||||||||||||||||||
Put options | 2015 - 2022 | 406 | 31.1 | — | ||||||||||||||||||||
Call options [2] | 2014-2018 | 1,701.60 | 163.1 | 96.1 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | — | 0.7 | ||||||||||||||||||||
Equity futures | 2014 | 160.6 | — | 5.3 | ||||||||||||||||||||
Total derivative instruments | $ | 6,320.10 | $ | 228.8 | $ | 116.8 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $1.9 million. | |||||||||||||||||||||||
Derivative Instrument Gains (Losses) Recognized in | For the years ended December 31, | |||||||||||||||||||||||
Realized Investment Gains (Losses): | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Interest rate swaps | $ | 11 | $ | (11.4 | ) | $ | (0.9 | ) | ||||||||||||||||
Variance swaps | (0.7 | ) | (3.6 | ) | (7.9 | ) | ||||||||||||||||||
Swaptions | (30.6 | ) | 17.3 | (0.2 | ) | |||||||||||||||||||
Put options | (4.8 | ) | (42.3 | ) | (22.0 | ) | ||||||||||||||||||
Call options | 18.5 | 59.3 | 0.1 | |||||||||||||||||||||
Cross currency swaps | 1.3 | (0.5 | ) | (0.1 | ) | |||||||||||||||||||
Equity futures | (15.5 | ) | (46.5 | ) | (19.4 | ) | ||||||||||||||||||
Embedded derivatives | (45.9 | ) | 12.2 | 4.9 | ||||||||||||||||||||
Total derivative instrument gains (losses) recognized in | $ | (66.7 | ) | $ | (15.5 | ) | $ | (45.5 | ) | |||||||||||||||
realized investment gains (losses) | ||||||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||||||
We maintain an overall interest rate risk management strategy that primarily incorporates the use of interest rate swaps as hedges of our exposure to changes in interest rates. Our exposure to changes in interest rates primarily results from our commitments to fund interest-sensitive insurance liabilities, as well as from our significant holdings of fixed rate financial instruments. We use interest rate swaps that effectively convert variable rate cash flows to fixed cash flows in order to hedge the interest rate risks associated with guaranteed minimum living benefit (GMAB/GMWB) rider liabilities. | ||||||||||||||||||||||||
Interest Rate Options | ||||||||||||||||||||||||
We use interest rate options, such as swaptions, to hedge against market risks to assets or liabilities from substantial changes in interest rates. An interest rate swaption gives us the right but not the obligation to enter into an underlying swap. Swaptions are options on interest rate swaps. All of our swaption contracts are receiver swaptions, which give us the right to enter into a swap where we will receive the agreed-upon fixed rate and pay the floating rate. If the market conditions are favorable and the swap is needed to continue hedging our in force liability business, we will exercise the swaption and enter into a fixed rate swap. If a swaption contract is not exercised by its option maturity date, it expires with no value. | ||||||||||||||||||||||||
Exchange Traded Future Contracts | ||||||||||||||||||||||||
We use equity index futures to hedge the market risks from changes in the value of equity indices, such as S&P 500, associated with guaranteed minimum living benefit (GMAB/GMWB) rider liabilities. Positions are short-dated, exchange-traded futures with maturities of three months. | ||||||||||||||||||||||||
Equity Index Options | ||||||||||||||||||||||||
We use equity indexed options to hedge against market risks from changes in equity markets, volatility and interest rates. | ||||||||||||||||||||||||
An equity index option affords us the right to make or receive payments based on a specified future level of an equity market index. We may use exchange-trade or OTC options. | ||||||||||||||||||||||||
Generally, we have used a combination of equity index futures, interest rate swaps, variance swaps and long-dated put options to hedge our GMAB and GMWB liabilities and equity index call options to hedge our indexed annuity option liabilities. | ||||||||||||||||||||||||
Cross Currency Swaps | ||||||||||||||||||||||||
We use cross currency swaps to hedge against market risks from changes in foreign currency exchange rates. Currency swaps are used to swap bond asset cash flows denominated in a foreign currency back to U.S. dollars. Under foreign currency swaps, we agree with another party (referred to as the counterparty) to exchange principal and periodic interest payments denominated in foreign currency for payments in U.S. dollars. | ||||||||||||||||||||||||
Offsetting of Derivative Assets/Liabilities | ||||||||||||||||||||||||
The Company may enter into netting agreements with counterparties that permit the Company to offset receivables and payables with such counterparties. The following tables present the gross fair value amounts, the amounts offset and net position of derivative instruments eligible for offset in the Company’s consolidated balance sheets that are subject to an enforceable master netting arrangement upon certain termination events, irrespective of whether they are offset in the balance sheet. | ||||||||||||||||||||||||
Offsetting of | As of December 31, 2014 | |||||||||||||||||||||||
Derivative Assets/Liabilities: | ||||||||||||||||||||||||
($ in millions) | Gross | Gross | Net amounts | Gross amounts not offset | Net amount | |||||||||||||||||||
amounts | amounts | presented in the | in the balance sheet | |||||||||||||||||||||
recognized [1] | offset in the | balance sheet | ||||||||||||||||||||||
balance sheet | Financial | Cash collateral | ||||||||||||||||||||||
instruments | pledged [2] | |||||||||||||||||||||||
Total derivative assets | $ | 161.3 | $ | — | $ | 161.3 | $ | (82.5 | ) | $ | — | $ | 78.8 | |||||||||||
Total derivative liabilities | $ | (85.6 | ) | $ | — | $ | (85.6 | ) | $ | 82.5 | $ | 3.1 | $ | — | ||||||||||
Offsetting of | As of December 31, 2013, as restated | |||||||||||||||||||||||
Derivative Assets/Liabilities: | ||||||||||||||||||||||||
($ in millions) | Gross | Gross | Net amounts | Gross amounts not offset | Net amount | |||||||||||||||||||
amounts | amounts | presented in the | in the balance sheet | |||||||||||||||||||||
recognized [1] | offset in the | balance sheet | ||||||||||||||||||||||
balance sheet | Financial | Cash collateral | ||||||||||||||||||||||
instruments | pledged [2] | |||||||||||||||||||||||
Total derivative assets | $ | 228.8 | $ | — | $ | 228.8 | $ | (110.3 | ) | $ | — | $ | 118.5 | |||||||||||
Total derivative liabilities | $ | (116.8 | ) | $ | — | $ | (116.8 | ) | $ | 110.3 | $ | 6.5 | $ | — | ||||||||||
——————— | ||||||||||||||||||||||||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | |||||||||||||||||||||||
[2] | Cash collateral pledged with derivative counterparties is recorded within other assets on the consolidated balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $15.5 million and $21.7 million as of December 31, 2014 and 2013, respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. | |||||||||||||||||||||||
Contingent features | ||||||||||||||||||||||||
Derivative counterparty agreements may contain certain provisions that require our insurance companies’ financial strength rating to be above a certain threshold. If our financial strength ratings were to fall below a specified rating threshold, certain derivative counterparties could request immediate payment or demand immediate and ongoing full collateralization on derivative instruments in net liability positions, or trigger a termination of existing derivatives and/or future derivative transactions. | ||||||||||||||||||||||||
In certain derivative counterparty agreements, our financial strength ratings are below the specified threshold levels. However, the Company held no derivative instruments as of December 31, 2014 in a net aggregate liability position payable to any counterparty (i.e., such derivative instruments have fair values in a net asset position payable to the Company if such holdings were liquidated). |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||
ASC 820-10 defines and establishes the framework for measuring fair value. The framework is based on inputs that are used in the valuation and a fair value hierarchy based on the quality of those inputs. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||||||||||||||||||||
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The input levels are defined as follows: | ||||||||||||||||||||||||||||||||
• | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 securities include highly liquid government bonds and exchange-traded equities. | |||||||||||||||||||||||||||||||
• | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Examples of such instruments include government-backed mortgage products, certain collateralized mortgage and debt obligations and certain high-yield debt securities. | |||||||||||||||||||||||||||||||
• | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect management’s own assumptions about inputs in which market participants would use in pricing these types of assets or liabilities. Level 3 financial instruments include values which are determined using pricing models and third-party evaluation. Additionally, the determination of some fair value estimates utilizes significant management judgments or best estimates. | |||||||||||||||||||||||||||||||
Investments for which fair value is based upon unadjusted quoted market prices are reported as Level 1. The number of quotes the issuer obtains per instrument will vary depending on the security type and availability of pricing data from independent third-party, nationally recognized pricing vendors. The Company has defined a pricing hierarchy among pricing vendors to determine ultimate value used and also reviews significant discrepancies among pricing vendors to determine final value used. Prices from pricing services are not adjusted, but the Company may obtain a broker quote or use an internal model to price a security if it believes vendor prices do not reflect fair value. When quoted prices are not available, we use these pricing vendors to give an estimated fair value. If quoted prices, or an estimated price from our pricing vendors are not available or we determine that the price is based on disorderly transactions or in inactive markets, fair value is based upon internally developed models or obtained from an independent third-party broker. We primarily use market-based or independently sourced market parameters, including interest rate yield curves, option volatilities and currency rates. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments include amounts to reflect counterparty credit quality, our own creditworthiness, liquidity and unobservable parameters that are applied consistently over time. | ||||||||||||||||||||||||||||||||
Management is responsible for the fair value of investments and the methodologies and assumptions used to estimate fair value. The fair value process is evaluated quarterly by the Pricing Committee, which is comprised of the Chief Investment Officer, Chief Accounting Officer and the Head of Investment Accounting. The purpose of the committee is to ensure the Company follows objective and reliable valuation practices, as well as approving changes to valuation methodologies and pricing sources. Using professional judgment and experience, we evaluate and weigh the relevance and significance of all readily available market information to determine the best estimate of fair value. | ||||||||||||||||||||||||||||||||
The fair values of Level 2 investments are determined by management after considering prices from our pricing vendors. Fair values for debt securities are primarily based on yield curve analysis along with ratings and spread data. Other inputs may be considered for fair value calculations including published indexed data, sector specific performance, comparable price sources and similar traded securities. Management reviews all Level 2 and Level 3 market prices on a quarterly basis. | ||||||||||||||||||||||||||||||||
The following is a description of our valuation methodologies for assets and liabilities measured at fair value. Such valuation methodologies were applied to all of the assets and liabilities carried at fair value in each respective classification. | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
We use pricing vendors to estimate fair value for the majority of our public debt securities. The pricing vendors’ estimates are based on market data and use pricing models that vary by asset class and incorporate available trade, bid and other market information. The methodologies used by these vendors are reviewed and understood by management through discussion with and information provided by these vendors. The Company assesses the reasonableness of individual security values received from valuation pricing vendors through various analytical techniques. Management also assesses whether the assumptions used appear reasonable and consistent with the objective of determining fair value. When our pricing vendors are unable to obtain evaluations based on market data, fair value is determined by obtaining a direct broker quote. Management reviews these broker quotes and valuation techniques to determine whether they are appropriate and consistently applied. Broker quotes are evaluated based on the Company’s assessment of the broker’s knowledge of, and history in trading, the security and the Company’s understanding of inputs used to derive the broker quote. Management also assesses reasonableness of individual security values similar to the vendor pricing review noted above. | ||||||||||||||||||||||||||||||||
For our private placement investments, we estimated fair value using internal models. Private placement securities are generally valued using a matrix pricing approach which categorizes these securities into groupings using remaining average life and credit rating as the two criteria to determine a grouping. The Company obtains current credit spread information from private placement dealers based on the criteria described and adds that spread information to U.S. Treasury rates corresponding to the life of each security to determine a discount rate for pricing. A small number of private placement securities are internally valued using models or analyst judgment. Fair values determined internally are also subject to management review to ensure that valuation models and inputs appear reasonable. | ||||||||||||||||||||||||||||||||
U.S. Government and Agency Securities | ||||||||||||||||||||||||||||||||
We value public U.S. government and agency debt by obtaining fair value estimates from our pricing vendors. For our private placement government and agency debt, our fair value is based on internal models using either a discounted cash flow or spread matrix which incorporates U.S. Treasury yields, market spreads and average life calculations. For short-term investments, we equate fair value to amortized cost due to their relatively short duration and limited exposure to credit risk. | ||||||||||||||||||||||||||||||||
State and Political Subdivisions | ||||||||||||||||||||||||||||||||
Public state and political subdivision debt is valued by obtaining fair value estimates from our pricing vendors. For our private placement debt securities, our fair value is based on internal models using either a discounted cash flow or spread matrix which incorporates U.S. Treasury yields, market spreads and average life calculations. | ||||||||||||||||||||||||||||||||
Foreign Government | ||||||||||||||||||||||||||||||||
We obtain fair value estimates from our pricing vendor to value foreign government debt. | ||||||||||||||||||||||||||||||||
Corporate Bonds | ||||||||||||||||||||||||||||||||
For the majority of our public corporate debt, we obtain fair value estimates from our pricing vendors. For public corporate debt in which we cannot obtain fair value estimates from our pricing vendors, we receive a direct quote from a broker. In most cases, we will obtain a direct broker quote from the broker that facilitated the deal. For our private placement debt securities, our fair value is based on internal models using either a discounted cash flow or spread matrix which incorporates U.S. Treasury yields, market spreads and average life calculations. For private fixed maturities, fair value is determined using a discounted cash flow model, which utilizes a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions and takes into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. In determining the fair value of certain debt securities, the discounted cash flow model may also use unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the security. | ||||||||||||||||||||||||||||||||
RMBS, CMBS, CDO/CLO and Other ABS | ||||||||||||||||||||||||||||||||
For structured securities, the majority of the fair value estimates are provided by our pricing vendors. When a fair value estimate is not available from the pricing vendors, we estimate fair value using direct broker quotes or internal models which use a discounted cash flow technique. These models consider the best estimate of cash flows until maturity to determine our ability to collect principal and interest and compare this to the anticipated cash flows when the security was purchased. In addition, management judgment is used to assess the probability of collecting all amounts contractually due to us. After consideration is given to the available estimates relevant to assessing the collectibility, including historical events, current conditions and reasonable forecasts, an estimate of future cash flows is determined. This includes evaluating the remaining payment terms, prepayment speeds, the underlying collateral, expected defaults using current default data and the financial condition of the issuer. Other factors considered are composite credit ratings, industry forecast, analyst reports and other relevant market data, similar to those the Company believes market participants would use. | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Private Equity Investments | ||||||||||||||||||||||||||||||||
The fair value of non-public private equity is estimated using the valuation of the lead investor (“sponsor value”), typically a general partner of an investment in a limited partnership in which we invest. The sponsors, or lead investors/underwriters of these investments, account for them on an equity basis. The Company will then obtain securities fair value from these sponsors to infer the appropriate fair value for its holdings in the same or similar investment. If we cannot determine a price using the sponsor value, we estimate the fair value using management’s professional judgment. Management evaluates many inputs including, but not limited to, current operating performance, future expectations of the investment, industry valuations of comparable public companies and changes in market outlook and third-party financing environment over time. Financial information for these investments is reported on a three-month delay due to the timing of financial statements as of the current reporting period. | ||||||||||||||||||||||||||||||||
Public Equity | ||||||||||||||||||||||||||||||||
Our publicly held common equity securities are generally obtained through the initial public offering of privately-held equity investments and are reported at the estimated fair value determined based on quoted prices in active markets. To the extent these securities have readily determinable exchange based prices, the securities are categorized as Level 1 of our hierarchy. If management determines there are liquidity concerns or exchange based information for the specific securities in our portfolio is not available, the securities are categorized as Level 2. For our preferred equity securities, we obtain fair value estimates from our pricing vendors. In addition, management will consistently monitor these holdings and prices will be modified for any pertinent and/or significant events that would result in a valuation adjustment, including an analysis for potential credit-related events or impairments. | ||||||||||||||||||||||||||||||||
Limited partnerships and other investments | ||||||||||||||||||||||||||||||||
Our limited partnerships are accounted for using equity method accounting. We carry these investments on the consolidated balance sheets at the capital value we obtain from the financial statement we received from the general partner. Typically, our carrying value is based on a financial statement one quarter in arrears to accommodate the timing of receipt of financial statements. These financial statements are generally audited annually. Generally the information received is deemed an appropriate approximation of the fair value of these fund investments and no adjustments are made to the financial statements received. Management also has open communication with each fund manager and generally views the information reported from the underlying funds as the best information available to record its investments. | ||||||||||||||||||||||||||||||||
For the limited partnerships in which we consolidate the entity, we hold private debt and equity securities. All consolidated investments are valued using current period financial statements we receive from the general partner. | ||||||||||||||||||||||||||||||||
Included in the other investments balance is the net investment value of life settlement contracts which are accounted under the investment method, which for non-impaired contracts incorporates the initial transaction price, initial direct external costs and continuing costs to keep the policy in force, as well as leveraged lease investments which represent the net investment in leveraged aircraft leases. The leveraged lease aircraft investments are accounted for using equity method. The investments are carried at the capital value obtained from financial statements we received from a third-party servicer. | ||||||||||||||||||||||||||||||||
Separate account assets | ||||||||||||||||||||||||||||||||
Our separate account assets consist of mutual funds that are frequently traded. Since 2003, investments owned by The Phoenix Companies, Inc. Employee Pension Plan (the “Plan”) Trust were sold to PHL Variable and the investments converted to ownership by the Trust to the Employee Pension Separate Account (“EPP SA”). The Plan’s Trust purchased a group flexible premium variable accumulation deferred annuity contract. As of May 21, 2012, the Plan surrendered the EPP SA contract for full value and the Plan’s underlying investments are no longer held in the separate account. Certain investments related to fixed income, equities and foreign securities were transferred to Mercer Trust Company for investment management purposes in a group trust investment arrangement. The remaining investments continued with their respective investment managers. These securities are valued using the market approach in which unadjusted market quotes are used. We include these securities in Level 1 of our hierarchy. | ||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Exchange-traded derivatives are valued using quoted prices and are classified within Level 1 of the valuation hierarchy. However, few classes of derivative contracts are listed on an exchange. Therefore, the majority of our derivative positions are OTC derivative financial instruments, valued using third-party vendor derivative valuation systems that use as their basis readily observable market parameters, such as swap rates and volatility assumptions. These positions are classified within Level 2 of the valuation hierarchy. Such OTC derivatives include vanilla interest rate swaps, equity index options, swaptions, variance swaps and cross currency swaps. Nevertheless, we review and validate the resulting fair values against those provided to us monthly by the derivative counterparties for reasonableness. | ||||||||||||||||||||||||||||||||
Fair values for OTC derivative financial instruments, mostly options and swaps, represent the present value of amounts estimated to be received from or paid to a marketplace participant in exchange of these instruments (i.e., the amount we would expect to receive in a derivative asset assignment or would expect to pay to have a derivative liability assumed). These derivatives are valued using third-party derivative valuation models which take into account the net present value of estimated future cash flows and capital market assumptions which are derived from directly observable prices from other OTC trades and exchange-traded derivatives. Such assumptions include swap rates and swaption volatility obtained from Bloomberg, as well as equity index volatility and dividend yields provided by OTC derivative dealers. | ||||||||||||||||||||||||||||||||
The fair value of OTC derivative financial instruments is also adjusted for the credit risk of the counterparty in cases in which there are no collateral offsets. To estimate the impact on fair value of a market participant’s view of counterparty non-performance risk we use a credit default swap (“CDS”) based approach in measuring this counterparty non-performance risk by looking at the cost of obtaining credit protection in the CDS market for the aggregate fair value exposure amount over the remaining life of derivative contracts, given the counterparty’s rating. The resulting upfront CDS premium, calculated using Bloomberg analytics, serves as a reasonable estimate of the default provision for the non-performance risk or counterparty valuation adjustment to the fair valuation of non-collateralized OTC derivative financial instruments. | ||||||||||||||||||||||||||||||||
Certain new and/or complex instruments may have immature or limited markets or require more sophistication in derivative valuation methodology. As a result, the pricing models used for valuation of these instruments often incorporate significant estimates and assumptions that market participants would use in pricing the instrument, which may impact the results of operations reported in the consolidated financial statements. Hence, instead of valuing these instruments using third-party vendor valuation systems, we rely on the fair market valuations reported to us monthly by the derivative counterparties. Fair values for OTC derivatives are verified using observed estimates about the costs of hedging the risk and other trades in the market. As the markets for these products develop, we continually refine our pricing models to correlate more closely to the market risk of these instruments. | ||||||||||||||||||||||||||||||||
Valuation of embedded derivatives | ||||||||||||||||||||||||||||||||
We make guarantees on certain variable annuity contracts, including those with GMAB, GMWB and COMBO riders. We also provide credits based on the performance of certain indices (“index credits”) on our fixed indexed annuity contracts. Both contract types have features that meet the definition of an embedded derivative. The GMAB, GMWB and COMBO embedded derivative liabilities associated with our variable annuity contracts are accounted for at fair value using a risk neutral stochastic valuation methodology with changes in fair value recorded in realized investment gains. The inputs to our fair value methodology include estimates derived from the asset derivatives market, including equity volatilities and the swap curves. Several additional inputs are not obtained from independent sources, but instead reflect our internally developed assumptions related to mortality rates, lapse rates and other policyholder behavior. | ||||||||||||||||||||||||||||||||
The fair value of the embedded derivative liabilities associated with the index credits on our fixed indexed annuity contracts is calculated using the budget method with changes in fair value recorded in realized investment gains. Under the budget method, the value of the initial index option is based on the fair value of the option purchased to hedge the index. The value of the index credits paid in future years is estimated to be the annual budgeted amount. Budgeted amounts are estimated based on available investment income using assumed investment returns and projected liability values. As there are significant unobservable inputs included in our fair value methodology for these embedded derivative liabilities, we consider the methods as described above as a whole to be Level 3 within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
Our fair value calculation of embedded derivative liabilities includes a credit standing adjustment (the “CSA”). The CSA represents the adjustment that market participants would make to reflect the risk that guaranteed benefit obligations may not be fulfilled (“non-performance risk”). We estimate our CSA using the credit spread (based on publicly available credit spread indices) for financial services companies similar to the Company’s life insurance subsidiaries. The CSA is updated every quarter and, therefore, the fair value will change with the passage of time even in the absence of any other changes that would affect the valuation. | ||||||||||||||||||||||||||||||||
The following tables present the financial instruments carried at fair value on a recurring basis by ASC 820-10 valuation hierarchy (as described above). There were no financial instruments carried at fair value on a non-recurring basis as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [1] | $ | — | $ | 81.2 | $ | 362.2 | $ | 443.4 | ||||||||||||||||||||||||
State and political subdivision | — | 157.7 | 400.2 | 557.9 | ||||||||||||||||||||||||||||
Foreign government | — | 177.3 | 53.6 | 230.9 | ||||||||||||||||||||||||||||
Corporate | — | 3,994.20 | 4,403.90 | 8,398.10 | ||||||||||||||||||||||||||||
CMBS | — | 498.4 | 152.8 | 651.2 | ||||||||||||||||||||||||||||
RMBS | — | 1,461.90 | 470.3 | 1,932.20 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 196.9 | 196.9 | ||||||||||||||||||||||||||||
Other ABS | — | 23.6 | 245.1 | 268.7 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,394.30 | 6,285.00 | 12,679.30 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | — | — | 179.5 | 179.5 | ||||||||||||||||||||||||||||
Short-term investments | 149.7 | — | — | 149.7 | ||||||||||||||||||||||||||||
Derivative assets | — | 161.3 | — | 161.3 | ||||||||||||||||||||||||||||
Fair value investments [2] | 32.4 | 13 | 190 | 235.4 | ||||||||||||||||||||||||||||
Separate account assets | 3,020.70 | — | — | 3,020.70 | ||||||||||||||||||||||||||||
Total assets | $ | 3,202.80 | $ | 6,568.60 | $ | 6,654.50 | $ | 16,425.90 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 0.5 | $ | 85.1 | $ | — | $ | 85.6 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 160.7 | 160.7 | ||||||||||||||||||||||||||||
Total liabilities | $ | 0.5 | $ | 85.1 | $ | 160.7 | $ | 246.3 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at December 31, 2014 include $111.9 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $23.5 million as of December 31, 2014. Changes in the fair value of these assets are recorded through net investment income. Additionally, $100.0 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.8 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
There were no transfers of assets between Level 1 and Level 2 during the year ended December 31, 2014. | ||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [1] | $ | — | $ | 76.6 | $ | 327.2 | $ | 403.8 | ||||||||||||||||||||||||
State and political subdivision | — | 141.4 | 269.1 | 410.5 | ||||||||||||||||||||||||||||
Foreign government | — | 194 | 15.9 | 209.9 | ||||||||||||||||||||||||||||
Corporate | — | 3,659.60 | 3,893.80 | 7,553.40 | ||||||||||||||||||||||||||||
CMBS | — | 600.1 | 113.7 | 713.8 | ||||||||||||||||||||||||||||
RMBS | — | 1,344.90 | 552.7 | 1,897.60 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 224.1 | 224.1 | ||||||||||||||||||||||||||||
Other ABS | — | 70.7 | 247.7 | 318.4 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,087.30 | 5,644.20 | 11,731.50 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | 2.8 | — | 135.2 | 138 | ||||||||||||||||||||||||||||
Short-term investments | 349.7 | 11 | 0.9 | 361.6 | ||||||||||||||||||||||||||||
Derivative assets | — | 228.8 | — | 228.8 | ||||||||||||||||||||||||||||
Fair value investments [2] | 32.1 | 13.2 | 169.9 | 215.2 | ||||||||||||||||||||||||||||
Separate account assets | 3,402.30 | — | — | 3,402.30 | ||||||||||||||||||||||||||||
Total assets | $ | 3,786.90 | $ | 6,340.30 | $ | 5,950.20 | $ | 16,077.40 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 5.3 | $ | 111.5 | $ | — | $ | 116.8 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 87.8 | 87.8 | ||||||||||||||||||||||||||||
Total liabilities | $ | 5.3 | $ | 111.5 | $ | 87.8 | $ | 204.6 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at December 31, 2013 include $125.7 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $23.2 million as of December 31, 2013. Changes in the fair value of these assets are recorded through net investment income. Additionally, $66.2 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.9 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
There were no transfers of assets between Level 1 and Level 2 during the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities as of December 31, 2014 and 2013, respectively, are reported net of $27.8 million and $29.6 million of Level 2 investments included in discontinued operations assets on the consolidated balance sheets related to discontinued reinsurance operations. | ||||||||||||||||||||||||||||||||
The following tables present corporates carried at fair value and on a recurring basis by sector. | ||||||||||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 593 | $ | 1,266.60 | $ | 1,859.60 | ||||||||||||||||||||||||
Energy | — | 534.6 | 472.8 | 1,007.40 | ||||||||||||||||||||||||||||
Financial services | — | 1,617.30 | 967.9 | 2,585.20 | ||||||||||||||||||||||||||||
Capital goods | — | 398.1 | 384.8 | 782.9 | ||||||||||||||||||||||||||||
Transportation | — | 104.7 | 305.8 | 410.5 | ||||||||||||||||||||||||||||
Utilities | — | 348.1 | 683.4 | 1,031.50 | ||||||||||||||||||||||||||||
Other | — | 398.4 | 322.6 | 721 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,994.20 | $ | 4,403.90 | $ | 8,398.10 | ||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 896 | $ | 1,455.20 | $ | 2,351.20 | ||||||||||||||||||||||||
Energy | — | 492.2 | 417.5 | 909.7 | ||||||||||||||||||||||||||||
Financial services | — | 1,497.00 | 880.8 | 2,377.80 | ||||||||||||||||||||||||||||
Capital goods | — | 187.6 | 200.6 | 388.2 | ||||||||||||||||||||||||||||
Transportation | — | 93.6 | 227.6 | 321.2 | ||||||||||||||||||||||||||||
Utilities | — | 316 | 561.6 | 877.6 | ||||||||||||||||||||||||||||
Other | — | 177.2 | 150.5 | 327.7 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,659.60 | $ | 3,893.80 | $ | 7,553.40 | ||||||||||||||||||||||||
Level 3 financial assets and liabilities | ||||||||||||||||||||||||||||||||
The following tables set forth a summary of changes in the fair value of our Level 3 financial assets and liabilities. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Transfers in and out of Level 3 occur at the beginning of each period. The securities which were transferred into Level 3 were due to decreased market observability of similar assets and/or changes to significant inputs, such as downgrades or price declines. Transfers out of Level 3 were due to increased market activity on comparable assets or observability of inputs. | ||||||||||||||||||||||||||||||||
Level 3 Financial Assets: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Balance, | Purchases | Sales | Transfers | Transfers | Realized and | Unrealized | Total | ||||||||||||||||||||||||
beginning | into | out of | unrealized | gains | ||||||||||||||||||||||||||||
of period | Level 3 | Level 3 | gains | (losses) | ||||||||||||||||||||||||||||
(losses) | included | |||||||||||||||||||||||||||||||
included in | in OCI | |||||||||||||||||||||||||||||||
income [1] | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 327.2 | $ | 40 | $ | (26.7 | ) | $ | — | $ | — | $ | — | $ | 21.7 | $ | 362.2 | |||||||||||||||
State and political subdivision | 269.1 | 106.5 | (6.5 | ) | 11.3 | — | — | 19.8 | 400.2 | |||||||||||||||||||||||
Foreign government | 15.9 | 7.4 | — | 28.5 | — | — | 1.8 | 53.6 | ||||||||||||||||||||||||
Corporate | 3,893.80 | 710.9 | (428.9 | ) | 244 | (97.9 | ) | 4.6 | 77.4 | 4,403.90 | ||||||||||||||||||||||
CMBS | 113.7 | 25.1 | (36.6 | ) | 71.1 | (30.4 | ) | 1.4 | 8.5 | 152.8 | ||||||||||||||||||||||
RMBS | 552.7 | 3.1 | (75.5 | ) | — | (4.3 | ) | 3.1 | (8.8 | ) | 470.3 | |||||||||||||||||||||
CDO/CLO | 224.1 | 41.4 | (61.6 | ) | — | — | 2.7 | (9.7 | ) | 196.9 | ||||||||||||||||||||||
Other ABS | 247.7 | 26.1 | (40.0 | ) | 17.6 | — | 1.7 | (8.0 | ) | 245.1 | ||||||||||||||||||||||
Total available-for-sale | 5,644.20 | 960.5 | (675.8 | ) | 372.5 | (132.6 | ) | 13.5 | 102.7 | 6,285.00 | ||||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 135.2 | 65 | (21.2 | ) | — | — | 3.7 | (3.2 | ) | 179.5 | ||||||||||||||||||||||
Short-term investments | 0.9 | — | (0.5 | ) | — | — | (0.4 | ) | — | |||||||||||||||||||||||
Fair value investments | 169.9 | 14.4 | (22.2 | ) | — | — | 27.9 | — | 190 | |||||||||||||||||||||||
Total assets | $ | 5,950.20 | $ | 1,039.90 | $ | (719.7 | ) | $ | 372.5 | $ | (132.6 | ) | $ | 44.7 | $ | 99.5 | $ | 6,654.50 | ||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Balance, | Purchases | Sales | Transfers | Transfers | Realized and | Unrealized | Total | ||||||||||||||||||||||||
beginning | into | out of | unrealized | gains | ||||||||||||||||||||||||||||
of period | Level 3 | Level 3 | gains | (losses) | ||||||||||||||||||||||||||||
(losses) | included | |||||||||||||||||||||||||||||||
included in | in OCI | |||||||||||||||||||||||||||||||
income [1] | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 296.7 | $ | 88.4 | $ | (40.4 | ) | $ | — | $ | — | $ | — | $ | (17.5 | ) | $ | 327.2 | ||||||||||||||
State and political subdivision | 212.4 | 96.6 | (4.1 | ) | — | — | — | (35.8 | ) | 269.1 | ||||||||||||||||||||||
Foreign government | 45.8 | — | (6.0 | ) | 8 | (31.3 | ) | — | (0.6 | ) | 15.9 | |||||||||||||||||||||
Corporate | 3,759.20 | 789.4 | (435.5 | ) | 65.6 | (41.3 | ) | 4.8 | (248.4 | ) | 3,893.80 | |||||||||||||||||||||
CMBS | 89.7 | 42.5 | (11.5 | ) | 8.9 | (12.8 | ) | (2.1 | ) | (1.0 | ) | 113.7 | ||||||||||||||||||||
RMBS | 711.2 | 2.2 | (120.6 | ) | — | — | (4.7 | ) | (35.4 | ) | 552.7 | |||||||||||||||||||||
CDO/CLO | 223.7 | 68.4 | (64.7 | ) | — | — | 0.4 | (3.7 | ) | 224.1 | ||||||||||||||||||||||
Other ABS | 309.9 | 19.6 | (58.7 | ) | — | (1.3 | ) | 0.3 | (22.1 | ) | 247.7 | |||||||||||||||||||||
Total available-for-sale | 5,648.60 | 1,107.10 | (741.5 | ) | 82.5 | (86.7 | ) | (1.3 | ) | (364.5 | ) | 5,644.20 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 86.8 | 50.5 | (11.1 | ) | — | — | (3.5 | ) | 12.5 | 135.2 | ||||||||||||||||||||||
Short-term investments | — | 1.3 | — | — | — | (0.4 | ) | — | 0.9 | |||||||||||||||||||||||
Fair value investments | 153.3 | 25.8 | (23.3 | ) | 1.3 | — | 12.8 | — | 169.9 | |||||||||||||||||||||||
Total assets | $ | 5,888.70 | $ | 1,184.70 | $ | (775.9 | ) | $ | 83.8 | $ | (86.7 | ) | $ | 7.6 | $ | (352.0 | ) | $ | 5,950.20 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Liabilities: | Embedded Derivatives | |||||||||||||||||||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
As restated | ||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 87.8 | $ | 88.1 | ||||||||||||||||||||||||||||
Net purchases/(sales) | 27.1 | 11.9 | ||||||||||||||||||||||||||||||
Transfers into Level 3 | — | — | ||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||||||||||||||
Realized (gains) losses [1] | 45.8 | (12.2 | ) | |||||||||||||||||||||||||||||
Balance, end of period | $ | 160.7 | $ | 87.8 | ||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Realized gains and losses are included in net realized investment gains on the consolidated statements of income and comprehensive income. | |||||||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurement of Level 3 assets are yield, prepayment rate, default rate and recovery rate. Keeping other inputs unchanged, an increase in yield, default rate or prepayment rate would decrease the fair value of the asset while an increase in recovery rate would result in an increase to the fair value of the asset. Yields are a function of the underlying U.S. Treasury rates and asset spreads, and changes in default and recovery rates are dependent on overall market conditions. | ||||||||||||||||||||||||||||||||
The following tables present quantitative estimates about unobservable inputs used in the fair value measurement of significant categories of internally priced assets. | ||||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 362.2 | Discounted cash flow | Yield | 0.99% - 4.27% (3.17%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 159.1 | Discounted cash flow | Yield | 2.15% - 4.50% (3.22%) | |||||||||||||||||||||||||||
Corporate | $ | 3,116.60 | Discounted cash flow | Yield | 0.93% - 6.88% (3.24%) | |||||||||||||||||||||||||||
Other ABS | $ | 39.3 | Discounted cash flow | Yield | 0.60% - 4.00% (1.92%) | |||||||||||||||||||||||||||
Fair value investments | $ | 6.3 | Discounted cash flow | Default rate | 0.17% | |||||||||||||||||||||||||||
Recovery rate | 44.00% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 327.2 | Discounted cash flow | Yield | 1.05% - 5.66% (3.78%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 119.4 | Discounted cash flow | Yield | 2.35% - 5.79% (3.74%) | |||||||||||||||||||||||||||
Corporate | $ | 2,974.10 | Discounted cash flow | Yield | 1.00% - 6.75% (3.55%) | |||||||||||||||||||||||||||
Other ABS | $ | 47.9 | Discounted cash flow | Yield | 0.50% - 3.75% (2.23%) | |||||||||||||||||||||||||||
Prepayment rate | 2.00% | |||||||||||||||||||||||||||||||
Default rate | 2.53% for 48 mos then 0.37% thereafter | |||||||||||||||||||||||||||||||
Recovery rate | 10.00% (TRUPS) | |||||||||||||||||||||||||||||||
Fair value investments | $ | 5.5 | Discounted cash flow | Default rate | 0.25% | |||||||||||||||||||||||||||
Recovery rate | 45.00% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurement of variable annuity GMAB and GMWB type liabilities are equity volatility, swap curve, mortality and lapse rates and an adjustment for non-performance risk. Keeping other inputs unchanged, an increase in the equity volatility would increase the fair value of the liability while an increase in the swap curve or CSA would result in a decrease to the fair value of the liability. The impact of changes in mortality and lapse rates are dependent on overall market conditions. The fair value of fixed indexed annuity and indexed universal life embedded derivative related to index credits is calculated using the swap curve, future option budget, mortality and lapse rates, as well as an adjustment for non-performance risk. Keeping other inputs unchanged, an increase in any of these significant unobservable inputs would result in a decrease of the fixed indexed annuity embedded derivative liability. | ||||||||||||||||||||||||||||||||
The following tables present quantitative estimates about unobservable inputs used in the fair value measurement of internally priced liabilities. | ||||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | ||||||||||||||||||||||||||||||
Embedded derivatives (FIA) | $ | 153.9 | Budget method | Swap curve | 0.24% - 2.55% | |||||||||||||||||||||||||||
Mortality rate | 105% or 97% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.04% - 46.44% | |||||||||||||||||||||||||||||||
CSA | 3.08% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | 6.8 | Risk neutral stochastic | Volatility surface | 9.89% - 67.34% | |||||||||||||||||||||||||||
(GMAB / GMWB / COMBO) | valuation methodology | |||||||||||||||||||||||||||||||
Swap curve | 0.21% - 2.76% | |||||||||||||||||||||||||||||||
Mortality rate | 105% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 40.00% | |||||||||||||||||||||||||||||||
CSA | 3.08% | |||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | ||||||||||||||||||||||||||||||
Embedded derivatives (FIA) | $ | 91.9 | Budget method | Swap curve | 0.19% - 3.79% | |||||||||||||||||||||||||||
Mortality rate | 103% or 97% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.02% - 47.15% | |||||||||||||||||||||||||||||||
CSA | 3.23% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | (4.1 | ) | Risk neutral stochastic | Volatility surface | 10.85% - 46.33% | ||||||||||||||||||||||||||
(GMAB / GMWB / COMBO) | valuation methodology | |||||||||||||||||||||||||||||||
Swap curve | 0.15% - 4.15% | |||||||||||||||||||||||||||||||
Mortality rate | 105% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 40.00% | |||||||||||||||||||||||||||||||
CSA | 3.23% | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Internal [1] | External [2] | Total | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 362.2 | $ | — | $ | 362.2 | ||||||||||||||||||||||||||
State and political subdivision | 159.1 | 241.1 | 400.2 | |||||||||||||||||||||||||||||
Foreign government | — | 53.6 | 53.6 | |||||||||||||||||||||||||||||
Corporate | 3,116.60 | 1,287.30 | 4,403.90 | |||||||||||||||||||||||||||||
CMBS | — | 152.8 | 152.8 | |||||||||||||||||||||||||||||
RMBS | — | 470.3 | 470.3 | |||||||||||||||||||||||||||||
CDO/CLO | — | 196.9 | 196.9 | |||||||||||||||||||||||||||||
Other ABS | 39.3 | 205.8 | 245.1 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,677.20 | 2,607.80 | 6,285.00 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 179.5 | 179.5 | |||||||||||||||||||||||||||||
Short-term investments | — | — | — | |||||||||||||||||||||||||||||
Fair value investments | 6.3 | 183.7 | 190 | |||||||||||||||||||||||||||||
Total assets | $ | 3,683.50 | $ | 2,971.00 | $ | 6,654.50 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 160.7 | $ | — | $ | 160.7 | ||||||||||||||||||||||||||
Total liabilities | $ | 160.7 | $ | — | $ | 160.7 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Internal [1] | External [2] | Total | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 327.2 | $ | — | $ | 327.2 | ||||||||||||||||||||||||||
State and political subdivision | 119.4 | 149.7 | 269.1 | |||||||||||||||||||||||||||||
Foreign government | — | 15.9 | 15.9 | |||||||||||||||||||||||||||||
Corporate | 2,974.10 | 919.7 | 3,893.80 | |||||||||||||||||||||||||||||
CMBS | — | 113.7 | 113.7 | |||||||||||||||||||||||||||||
RMBS | — | 552.7 | 552.7 | |||||||||||||||||||||||||||||
CDO/CLO | — | 224.1 | 224.1 | |||||||||||||||||||||||||||||
Other ABS | 47.9 | 199.8 | 247.7 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,468.60 | 2,175.60 | 5,644.20 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 135.2 | 135.2 | |||||||||||||||||||||||||||||
Short-term investments | — | 0.9 | 0.9 | |||||||||||||||||||||||||||||
Fair value investments | 5.5 | 164.4 | 169.9 | |||||||||||||||||||||||||||||
Total assets | $ | 3,474.10 | $ | 2,476.10 | $ | 5,950.20 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 87.8 | $ | — | $ | 87.8 | ||||||||||||||||||||||||||
Total liabilities | $ | 87.8 | $ | — | $ | 87.8 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Financial instruments not carried at fair value | ||||||||||||||||||||||||||||||||
The Company is required by U.S. GAAP to disclose the fair value of certain financial instruments including those that are not carried at fair value. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ: | ||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values | As of December 31, | |||||||||||||||||||||||||||||||
of Financial Instruments: | ||||||||||||||||||||||||||||||||
($ in millions) | Fair Value | 2014 | 2013, as restated | |||||||||||||||||||||||||||||
Hierarchy | ||||||||||||||||||||||||||||||||
Level | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Policy loans | Level 3 | $ | 2,352.10 | $ | 2,339.20 | $ | 2,350.30 | $ | 2,338.00 | |||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 450 | $ | 450 | $ | 496.4 | $ | 496.4 | |||||||||||||||||||||||
Life settlements | Level 3 | 22.4 | 17.4 | 21.6 | 16.7 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Investment contracts | Level 3 | $ | 3,955.00 | $ | 3,957.30 | $ | 3,442.60 | $ | 3,437.30 | |||||||||||||||||||||||
Surplus notes | Level 3 | $ | 126.2 | $ | 95.8 | $ | 126.1 | $ | 86.5 | |||||||||||||||||||||||
Senior unsecured bonds | Level 2 | $ | 252.7 | $ | 248 | $ | 252.7 | $ | 224.6 | |||||||||||||||||||||||
Fair value of policy loans | ||||||||||||||||||||||||||||||||
The fair value of fixed rate policy loans is calculated using a discounted cash flow model based upon current U.S. Treasury rates and historical loan repayment patterns. For floating rate policy loans the fair value is the amount due, excluding interest, as of the reporting date. | ||||||||||||||||||||||||||||||||
Fair value of life settlements | ||||||||||||||||||||||||||||||||
The fair value of life settlement contracts is determined based on the discounted cash flows from the expected proceeds from the insurance policies less the cash flows of the expected costs to keep the policies in force. These cash flows are discounted using a market rate. | ||||||||||||||||||||||||||||||||
Fair value of investment contracts | ||||||||||||||||||||||||||||||||
We determine the fair value of guaranteed interest contracts by using a discount rate based upon the appropriate U.S. Treasury rate to calculate the present value of projected contractual liability payments through final maturity. We determine the fair value of deferred annuities and supplementary contracts without life contingencies with an interest guarantee of one year or less at the amount of the policy reserve. In determining the fair value of deferred annuities and supplementary contracts without life contingencies with interest guarantees greater than one year, we use a discount rate based upon the appropriate U.S. Treasury rate to calculate the present value of the projected account value of the policy at the end of the current guarantee period. | ||||||||||||||||||||||||||||||||
Deposit type funds, including pension deposit administration contracts, dividend accumulations and other funds left on deposit not involving life contingencies, have interest guarantees of less than one year for which interest credited is closely tied to rates earned on owned assets. For these liabilities, we assume fair value to be equal to the stated liability balances. | ||||||||||||||||||||||||||||||||
The fair value of these investment contracts are categorized as Level 3. | ||||||||||||||||||||||||||||||||
Indebtedness | ||||||||||||||||||||||||||||||||
Fair value of our senior unsecured bonds is based upon quoted market prices. The fair value of surplus notes is determined with reference to the fair value of our senior unsecured bonds including consideration of the different features in the two securities. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Phoenix and its subsidiaries file a consolidated U.S. Federal income tax return. The Company also files combined, unitary and separate income tax returns in various states. | ||||||||||||
Significant Components of Income Taxes from Continuing Operations: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Current | ||||||||||||
U.S. | $ | 10.5 | $ | 8.5 | $ | 15.8 | ||||||
Foreign | — | — | — | |||||||||
Deferred | ||||||||||||
U.S. | — | — | (20.5 | ) | ||||||||
Foreign | — | — | — | |||||||||
Total income tax expense (benefit) | $ | 10.5 | $ | 8.5 | $ | (4.7 | ) | |||||
Reconciliation of Effective Income Tax Rate: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Income (loss) from continuing operations before income taxes: | ||||||||||||
U.S. | $ | (195.2 | ) | $ | 38.1 | $ | (153.5 | ) | ||||
Foreign | — | — | — | |||||||||
Total | $ | (195.2 | ) | $ | 38.1 | $ | (153.5 | ) | ||||
Income tax expense (benefit) at statutory rate of 35% | $ | (68.3 | ) | $ | 13.3 | $ | (53.7 | ) | ||||
Dividend received deduction | (3.0 | ) | (2.3 | ) | (2.5 | ) | ||||||
Expiration of tax attribute carryovers | 7.4 | 4.5 | 5.6 | |||||||||
Impact of deferred tax validation | 0.5 | — | — | |||||||||
Noncontrolling interest | (1.4 | ) | (0.2 | ) | — | |||||||
Valuation allowance increase (release) | 79.3 | (4.1 | ) | 46.6 | ||||||||
State income taxes (benefit) | (4.3 | ) | (2.8 | ) | — | |||||||
Other, net | 0.3 | 0.1 | (0.7 | ) | ||||||||
Income tax expense (benefit) applicable to continuing operations | $ | 10.5 | $ | 8.5 | $ | (4.7 | ) | |||||
Effective income tax rates | -5.40% | 22.30% | 3.10% | |||||||||
Allocation of Income Taxes: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Income tax expense (benefit) from continuing operations | $ | 10.5 | $ | 8.5 | $ | (4.7 | ) | |||||
Income tax from OCI: | ||||||||||||
Unrealized investment (gains) losses | 35.7 | (20.5 | ) | 92 | ||||||||
Pension | — | — | — | |||||||||
Policy dividend obligation and DAC | — | — | — | |||||||||
Other | — | — | — | |||||||||
Income tax related to cumulative effect of change in accounting guidance | — | — | — | |||||||||
Income tax benefit from discontinued operations | (0.4 | ) | (0.3 | ) | (1.5 | ) | ||||||
Total income tax recorded to all components of income | $ | 45.8 | $ | (12.3 | ) | $ | 85.8 | |||||
Deferred Income Tax Balances Attributable to Temporary Differences: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
As restated | ||||||||||||
Deferred income tax assets | ||||||||||||
Future policyholder benefits | $ | 783.9 | $ | 526.7 | ||||||||
Unearned premiums / deferred revenues | 8.1 | 50.4 | ||||||||||
Employee benefits | 124.4 | 97.2 | ||||||||||
Net operating and capital loss carryover benefits | 198.5 | 157.9 | ||||||||||
Foreign tax credits carryover benefits | 2.3 | 2.2 | ||||||||||
Alternative minimum tax credits | 12.9 | 12.9 | ||||||||||
General business tax credits | 17.7 | 23.7 | ||||||||||
Other | 32.8 | 31.9 | ||||||||||
Available-for-sale debt securities | 34.2 | 70 | ||||||||||
Subtotal | 1,214.80 | 972.9 | ||||||||||
Valuation allowance | (613.0 | ) | (492.4 | ) | ||||||||
Total deferred income tax assets, net of valuation allowance | 601.8 | 480.5 | ||||||||||
Deferred tax liabilities | ||||||||||||
DAC | 188.1 | 215.2 | ||||||||||
Investments | 241.7 | 147.8 | ||||||||||
Accrued liabilities | 137.8 | 47.5 | ||||||||||
Gross deferred income tax liabilities | 567.6 | 410.5 | ||||||||||
Net deferred income tax assets | $ | 34.2 | $ | 70 | ||||||||
As of December 31, 2014, we performed our assessment of the realization of deferred tax assets. This assessment included consideration of all available evidence - both positive and negative - weighted to the extent the evidence was objectively verifiable. In performing this assessment, management considered tax law which generally requires the Company to compute taxable income separately for its life and non-life entities. This guidance impacts our ability to use tax loss carryovers, which has resulted in life subgroup taxable income and current tax in a period of significant non-life loss carryovers. Although taxable income at the life subgroup level has allowed the Company to partially utilize non-life loss carryovers, this historically, has not rendered deferred tax asset realization due to continued generation of originating deferred tax assets attributed to GAAP losses in 2012, 2013 and 2014. | ||||||||||||
As part of this assessment, the Company considered the existence of cumulative GAAP pre-tax losses in both the life and non-life subgroups. Management considers this significant negative evidence in its assessment of the realization of deferred tax assets. | ||||||||||||
With the existence of life subgroup taxable profits in recent years, the Company has experienced some utilization of its tax loss carryovers and incurred current federal income tax. Under U.S. federal tax law, the payment of tax by the life subgroup is available for recoupment in the event of future losses. Under U.S. GAAP, the ability to carryback losses and recoup taxes paid can be considered as a source of income when assessing the realization of deferred tax assets. The Company believes that it is reasonably possible the life subgroup will experience tax losses in the near term, however projecting such losses is subject to a number of estimates and assumptions including future impacts on market and actuarial assumptions. Actual results may vary from projections and, due to the uncertainty of these estimates, we do not believe significant weight can be placed on the assumption that taxes paid in the current and prior years will be recouped. Accordingly, management has not deemed the taxes paid in current and prior tax years as a viable source of income when performing its valuation allowance assessment. | ||||||||||||
Further, we believe that the continued existence of significant negative evidence illustrated by a three year cumulative loss before tax in both the life and non-life subgroups is significant enough to overcome any positive evidence. This is further supported by the continued costs associated with the restatement and downgrades of financial strength credit ratings which may adversely impact the Company’s future earnings. | ||||||||||||
Due to the significance of the negative evidence as well as the weight given to the objective nature of the cumulative losses in recent years, and after consideration of all available evidence, we concluded that our estimates of future taxable income, timing of the reversal of existing taxable temporary differences and certain tax planning strategies did not provide sufficient positive evidence to assert that it is more likely than not that certain deferred tax assets would be realizable. To the extent the Company can demonstrate the ability to generate sustained profitability in the future, the valuation allowance could potentially be reversed resulting in a benefit to income tax expense. | ||||||||||||
As of December 31, 2014, we concluded that our estimates of future taxable income, certain tax planning strategies and other sources of income did not constitute sufficient positive evidence to assert that it is more likely than not that certain deferred tax assets would be realizable. Accordingly, a valuation allowance of $613.0 million has been recorded on net deferred tax assets of $647.2 million. The remaining deferred tax asset of $34.2 million attributable to available-for-sale debt securities with gross unrealized losses does not require a valuation allowance due to our ability and intent to hold these securities until recovery of principal value through sale or contractual maturity, thereby avoiding the realization of taxable losses. This conclusion is consistent with prior periods. The impact of the valuation allowance on the allocation of tax to the components of the financial statements included an increase of $79.3 million in continuing operations, an increase of $40.6 million in OCI-related deferred tax balances and an increase of $0.7 million recorded to discontinued operations. | ||||||||||||
The tax provision reported in continuing operations of $10.5 million consists primarily of current tax expense related to the accrual of regular taxes, offset by available credits up to the alternative minimum tax liability. | ||||||||||||
As of December 31, 2014, the Company has $198.5 million of net operating loss carryovers. Of this amount, $182.6 million related to $521.7 million of federal net operating losses that are scheduled to expire between the years 2021 and 2034. The remaining amount of $15.9 million is attributable to state income tax net operating losses. | ||||||||||||
As of December 31, 2014, we had deferred income tax assets of $17.7 million related to general business tax credit carryovers, which are expected to expire between the years 2022 and 2032. Additionally, we had deferred income tax assets of $12.9 million related to alternative minimum tax credit carryovers which do not expire. | ||||||||||||
The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2011. The 2011 and 2012 tax years remain under examination, however no material unanticipated assessments have been identified, and we believe no adjustment to our liability for uncertain tax positions is required. | ||||||||||||
There were no unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Management believes that adequate provisions have been made in the financial statements for any potential assessments that may result from tax examinations and other tax related matters for all open tax years. Based upon the timing and status of our current examinations by taxing authorities, we do not believe that it is reasonably possible that any changes to the balance of unrecognized tax benefits occurring within the next 12 months will result in a significant change to the results of operations, financial condition or liquidity. | ||||||||||||
The Company has no interest and penalties as income tax expense and no accrued interest and penalties in the related income tax liability for the years ended December 31, 2014 and 2013. | ||||||||||||
As part of the intercompany tax sharing agreement, the holding company is required to hold funds in escrow for the benefit of Phoenix Life in the event Phoenix Life incurs future taxable losses. In accordance with its regulatory obligation, the Company funded the escrow with $78.9 million of assets including treasury stock, a surplus note issued by PHL Variable and $10.8 million of cash from the holding company in the fourth quarter of 2014. The escrow amount is primarily attributable to cash due to the holding company for losses utilized and benefited in the 2013 tax return. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | |||||||||||||||
Changes in each component of AOCI attributable to the Company for the years ended December 31 are as follows below (net of tax): | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Net | Net | Net | Total | ||||||||||||
Attributable to The Phoenix Companies, Inc.: | Unrealized | Unrealized | Pension | |||||||||||||
($ in millions) | Gains / (Losses) | Gains / (Losses) | Liability | |||||||||||||
on Investments | on All Other | Adjustments | ||||||||||||||
where | Investments [1] | |||||||||||||||
Credit-related | ||||||||||||||||
OTTI was | ||||||||||||||||
Recognized | ||||||||||||||||
Balance as of December 31, 2012, as revised | $ | (6.2 | ) | $ | 82.3 | $ | (319.9 | ) | $ | (243.8 | ) | |||||
Change in component during the period | 9.7 | (31.3 | ) | 94.3 | 72.7 | |||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from AOCI | 3.5 | (24.1 | ) | 6.7 | (13.9 | ) | ||||||||||
Balance as of December 31, 2013, as restated | 7 | 26.9 | (218.9 | ) | (185.0 | ) | ||||||||||
Change in component during the period | 9.5 | 37.9 | (84.8 | ) | (37.4 | ) | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from AOCI | (6.6 | ) | (10.0 | ) | 4.6 | (12.0 | ) | |||||||||
Balance as of December 31, 2014 | $ | 9.9 | $ | 54.8 | $ | (299.1 | ) | $ | (234.4 | ) | ||||||
——————— | ||||||||||||||||
[1] | See Note 8 to these consolidated financial statements for additional information regarding offsets to net unrealized investment gains and losses which include policyholder dividend obligation, DAC and other actuarial offsets, and deferred income tax expense (benefit). | |||||||||||||||
Reclassifications from AOCI consist of the following: | ||||||||||||||||
AOCI | Amounts Reclassified from AOCI | Affected Line Item in the | ||||||||||||||
Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Net unrealized gains / (losses) on investments where | ||||||||||||||||
credit-related OTTI was recognized: | ||||||||||||||||
Available-for-sale securities | $ | 10.1 | $ | (5.3 | ) | $ | (16.7 | ) | Net realized capital gains (losses) | |||||||
10.1 | (5.3 | ) | (16.7 | ) | Total before income taxes | |||||||||||
3.5 | (1.8 | ) | (5.9 | ) | Income tax expense (benefit) | |||||||||||
$ | 6.6 | $ | (3.5 | ) | $ | (10.8 | ) | Net income (loss) | ||||||||
Net unrealized gains / (losses) on | ||||||||||||||||
all other investments: | ||||||||||||||||
Available-for-sale securities | $ | 15.3 | $ | 37 | $ | 38.4 | Net realized capital gains (losses) | |||||||||
15.3 | 37 | 38.4 | Total before income taxes | |||||||||||||
5.3 | 12.9 | 13.5 | Income tax expense (benefit) | |||||||||||||
$ | 10 | $ | 24.1 | $ | 24.9 | Net income (loss) | ||||||||||
Net pension liability adjustments: | ||||||||||||||||
Amortization of actuarial gains (losses) | $ | (8.2 | ) | $ | (11.5 | ) | $ | (10.1 | ) | Other operating expense | ||||||
Amortization of prior service costs | 1.1 | 1.2 | 1.6 | Other operating expense | ||||||||||||
(7.1 | ) | (10.3 | ) | (8.5 | ) | Total before income taxes | ||||||||||
(2.5 | ) | (3.6 | ) | (3.0 | ) | Income tax expense (benefit) | ||||||||||
$ | (4.6 | ) | $ | (6.7 | ) | $ | (5.5 | ) | Net income (loss) | |||||||
Total amounts reclassified from AOCI | $ | 12 | $ | 13.9 | $ | 8.6 | Net income (loss) | |||||||||
Employee_Benefit_Plans_and_Emp
Employee Benefit Plans and Employment Agreements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Employee Benefit Plans and Employment Agreements | Employee Benefit Plans and Employment Agreements | |||||||||||||||
Pension and other post-employment benefits | ||||||||||||||||
We provide our employees with post-employment benefits that include retirement benefits, through pension and savings plans, and other benefits, including health care and life insurance. | ||||||||||||||||
We have three defined benefit plans. The employee pension plan provides benefits not to exceed the amount allowed under the Internal Revenue Code. The two supplemental plans provide benefits in excess of the primary plan. Retirement benefits under the plans are a function of years of service and compensation. Effective March 31, 2010, all benefit accruals under all of our funded and unfunded defined benefit plans were frozen. | ||||||||||||||||
The employee pension plan is funded with assets held in a trust. The assets within the plan include corporate and government debt securities, equity securities, real estate and private equity partnerships. The supplemental plans are unfunded. Upon a change in control (as defined in the plan) of The Phoenix Companies, Inc., we are required to make an irrevocable contribution to a trust to fund the benefits payable under the supplemental plans. | ||||||||||||||||
Assumptions Related to Pension and Post-Employment Employee Benefit Plans | ||||||||||||||||
Pursuant to accounting principles related to the Company’s pension and other post-employment obligations to employees under its various benefit plans, the Company is required to make assumptions in order to calculate the related liabilities and expenses each period. The assumptions used in calculating the benefit obligations and the net amount recognized for the years ended December 31, 2014, 2013 and 2012 are presented in the following tables. | ||||||||||||||||
Principal Rates and Assumptions: | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Assumptions Used to Determine Benefit Obligations | ||||||||||||||||
Projected benefit obligation discount rate – Employee Plan | 4.1 | % | 4.84 | % | 3.98 | % | ||||||||||
Projected benefit obligation discount rate – Supplemental Plan | 3.97 | % | 4.69 | % | 3.81 | % | ||||||||||
Projected benefit obligation discount rate – Other Post-Employment Benefits | 3.62 | % | 4.21 | % | 3.37 | % | ||||||||||
Future compensation increase rate | N/A [1] | N/A [1] | N/A [1] | |||||||||||||
Deferred investment gain/loss amortization corridor – Employee Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Supplemental Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Other Post-Employment Benefits | 10 | % | 10 | % | 10 | % | ||||||||||
Future health care cost increase rate, age 64 and younger | 6 | % | 6 | % | 6 | % | ||||||||||
Future health care cost increase rate, age 65 and older | N/A | N/A | N/A | |||||||||||||
Assumptions Used to Determine Benefit Expense | ||||||||||||||||
Projected benefit obligation discount rate – Employee Plan | 4.84 | % | 3.98 | % | 4.53 | % | ||||||||||
Projected benefit obligation discount rate – Supplemental Plan | 4.69 | % | 3.81 | % | 4.39 | % | ||||||||||
Projected benefit obligation discount rate – Other Post-Employment Benefits | 4.21 | % | 3.37 | % | 4.11%/3.35% | |||||||||||
Future compensation increase rate | N/A [1] | N/A [1] | N/A [1] | |||||||||||||
Pension plan assets long-term rate of return | 7.5 | % | 7.75 | % | 8 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Employee Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Supplemental Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Other Post-Employment Plan | 10 | % | 10 | % | 10 | % | ||||||||||
Future health care cost increase rate, age 64 and younger | 6 | % | 6 | % | 6 | % | ||||||||||
Future health care cost increase rate, age 65 and older | N/A | N/A | N/A | |||||||||||||
——————— | ||||||||||||||||
[1] | The pension plan was frozen effective March 31, 2010. For periods subsequent to the plan freeze, salary scale is not applicable. | |||||||||||||||
The discount rate assumption is developed using a yield curve approach based upon future pension and other post-employment obligations and currently available market and industry data. The yield curve utilized is comprised of bonds rated Aa/AA or higher by Moody’s Investor Services, Standard & Poor’s and Fitch Ratings Ltd. with maturities between one and fifteen or more years. | ||||||||||||||||
The change in health care cost trend rate does not affect the liabilities or expense associated with retiree medical (due to the cap) or life insurance plans. The only trend rate operating on plan liabilities is the dental trend rate, which is 5.0% for 2015 scaling down to an ultimate rate of 4.5% by 2026. Since the dental liabilities are less than 1.0% of total liabilities and dental liabilities are only paid prior to age 65, the impact of a change in trend is less than 0.1%. | ||||||||||||||||
The following table sets forth amounts of benefits expected to be paid over the next ten years from the Company’s pension and post-employment benefit plans as of December 31, 2014: | ||||||||||||||||
10-Year Benefit Payout Projection: | Employee | Supplemental | Other | Total | ||||||||||||
($ in millions) | Plan | Plans | Post-Employment | |||||||||||||
2015 | $ | 35.3 | $ | 9.6 | $ | 3.5 | $ | 48.4 | ||||||||
2016 | 35.8 | 9.6 | 3.3 | 48.7 | ||||||||||||
2017 | 36.3 | 9.3 | 3.1 | 48.7 | ||||||||||||
2018 | 36.7 | 9.3 | 3 | 49 | ||||||||||||
2019 | 37.3 | 9.2 | 2.8 | 49.3 | ||||||||||||
2020 to 2024 | 199.6 | 46.7 | 11.5 | 257.8 | ||||||||||||
Our investment policy and strategy employs a total return approach combining equities, fixed income, real estate and other assets to maximize the long-term return of the plan assets for a prudent level of risk. Risk tolerance is determined based on consideration of plan liabilities and plan-funded status. The investment portfolio contains a diversified blend of equity, fixed income, real estate and alternative investments. The equity investments are diversified across domestic and foreign markets, across market capitalizations (large, mid and small cap), as well as growth, value and blend. Derivative instruments are not typically used for implementing asset allocation decisions and are not used in conjunction with leverage. Investment performance is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurement and periodic presentations by asset managers included in the plan. | ||||||||||||||||
Employee Pension Plan Asset Allocation: | As of December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
As restated | ||||||||||||||||
Asset Category | ||||||||||||||||
Equity securities | 52 | % | 53 | % | ||||||||||||
Debt securities | 40 | % | 39 | % | ||||||||||||
Real estate | 2 | % | 2 | % | ||||||||||||
Other | 6 | % | 6 | % | ||||||||||||
Total | 100 | % | 100 | % | ||||||||||||
We use a building block approach in estimating the long-term rate of return for plan assets. Historical returns are determined by asset class. The historical relationships between equities, fixed income and other asset classes are reviewed. We apply long-term asset return estimates to the plan’s target asset allocation to determine the weighted-average long-term return. The company applied a consistent approach to the determination of the expected rate of return on plan assets in 2015. The expected rate of return for 2015 is 7.5% for the employee pension plan. Our long-term asset allocation was determined through modeling long-term returns and asset return volatilities. The allocation reflects proper diversification and was reviewed against other corporate pension plans for reasonability and appropriateness. | ||||||||||||||||
We use a December 31 measurement date for our pension and other post-employment benefits. | ||||||||||||||||
Obligations Related to the Employee Pension Plan | ||||||||||||||||
The following tables set forth a reconciliation of beginning and ending balances of the fair value of plan assets, benefit obligation as well as the funded status of the Company’s defined benefit pension plans for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
Changes in Plan Assets and Benefit Obligations: | Employee Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Plans’ Assets | ||||||||||||||||
Plan assets, beginning of period | $ | 516.5 | $ | 475.8 | $ | 437.6 | ||||||||||
Plan assets’ actual return | 47.8 | 64.9 | 55.4 | |||||||||||||
Employer contributions | 11.8 | 11.4 | 18.2 | |||||||||||||
Plan disbursements | (35.7 | ) | (35.6 | ) | (35.4 | ) | ||||||||||
Plans’ assets, end of period | $ | 540.4 | $ | 516.5 | $ | 475.8 | ||||||||||
Plans’ Projected Benefit Obligation | ||||||||||||||||
Projected benefit obligation, beginning of period | $ | (638.5 | ) | $ | (694.8 | ) | $ | (646.3 | ) | |||||||
Service and interest cost accrual | (32.4 | ) | (29.1 | ) | (29.6 | ) | ||||||||||
Actuarial gain (loss) | (79.7 | ) | 49.8 | (54.3 | ) | |||||||||||
Plan disbursements | 35.7 | 35.6 | 35.4 | |||||||||||||
Plan amendments | — | — | — | |||||||||||||
Projected benefit obligation, end of period | $ | (714.9 | ) | $ | (638.5 | ) | $ | (694.8 | ) | |||||||
Plan assets less than projected benefit obligations, end of period | $ | (174.5 | ) | $ | (122.0 | ) | $ | (219.0 | ) | |||||||
Accumulated benefit obligation | $ | (714.9 | ) | $ | (638.5 | ) | $ | (694.8 | ) | |||||||
Amounts Recognized in Consolidated Balance Sheets: | Employee Plan | |||||||||||||||
($ in millions) | Years Ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
As restated | ||||||||||||||||
Pension and post-employment liabilities | $ | (174.5 | ) | $ | (122.0 | ) | ||||||||||
Changes recognized in Other Comprehensive Income (Loss) were as follows: | Employee Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | 172.6 | $ | 258.9 | $ | 234.8 | ||||||||||
Deferrals for the period – net actuarial loss / (gain) | 69.7 | (77.7 | ) | 32 | ||||||||||||
Amortization for the period – net actuarial loss / (gain) | (5.9 | ) | (8.6 | ) | (7.9 | ) | ||||||||||
Balance, end of period | $ | 236.4 | $ | 172.6 | $ | 258.9 | ||||||||||
Amounts in Accumulated Other Comprehensive Income (Loss) that are expected to be recognized | Employee | |||||||||||||||
as components of Net Periodic Cost (Credit) during the next fiscal year are as follows: | Plan | |||||||||||||||
($ in millions) | ||||||||||||||||
Prior service (credit) cost | $ | — | ||||||||||||||
Net actuarial loss | 7.8 | |||||||||||||||
Total | 7.8 | |||||||||||||||
Components of Pension Benefit Expense: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Service cost | $ | 2.3 | $ | 2.1 | $ | 0.9 | ||||||||||
Interest cost | 30.1 | 27 | 28.7 | |||||||||||||
Plan assets expected return | (37.5 | ) | (36.1 | ) | (34.2 | ) | ||||||||||
Net loss amortization | 5.9 | 8.6 | 7.9 | |||||||||||||
Prior service cost amortization | — | — | — | |||||||||||||
Pension benefit expense | $ | 0.8 | $ | 1.6 | $ | 3.3 | ||||||||||
Funding Status of Employee Pension Plan | ||||||||||||||||
The employee pension plan is a qualified plan that is funded with assets held in a trust. It is the Company’s practice to make contributions to the qualified pension plan at least sufficient to avoid benefit restrictions under funding requirements of the Pension Protection Act of 2006. This generally requires the Company to maintain assets that are at least 80% of the plan’s liabilities as calculated under the applicable regulations at the end of the prior year. Under these regulations, the qualified pension plan is currently funded above 80% of the funding target liabilities as of December 31, 2014. | ||||||||||||||||
The funded status of the qualified pension plan based on the projected benefit obligations for the years ended December 31, 2014 and 2013 are summarized in the following table: | ||||||||||||||||
Qualified Employee Pension Plan Funded Status: | As of December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||
As restated | ||||||||||||||||
Plan assets, end of period | $ | 540.4 | $ | 516.5 | ||||||||||||
Projected benefit obligation, end of period | (714.9 | ) | (638.5 | ) | ||||||||||||
Plan assets less than projected benefit obligations, end of period | $ | (174.5 | ) | $ | (122.0 | ) | ||||||||||
To meet the above funding objectives, we made contributions to the pension plan totaling $11.8 million and $11.4 million during 2014 and 2013, respectively. On August 8, 2014, the Highway and Transportation Funding Act of 2014 was enacted into law, effective immediately. The law extends certain pension funding provisions originally included in the Moving Ahead for Progress in the 21st Century Act (MAP-21). The Company took advantage of this in September of 2014, which resulted in the Company not making any further contributions for the remainder of 2014. We expect to make no contributions over the next 12 months. | ||||||||||||||||
Fair Value Measurement—Employee Pension Plan Assets | ||||||||||||||||
See Note 13 to these consolidated financial statements for a discussion of the methods employed by us to measure the fair value of invested assets. The following discussion of fair value measurements applies exclusively to our employee pension plan assets. | ||||||||||||||||
The estimated fair value of U.S. Treasury and equity securities are included in the amount disclosed in Level 1 as the estimates are based on quoted market prices. For fixed income instruments held by the plan for which quoted market prices are not available, we estimate fair value by discounting debt security cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality or by quoted market prices of comparable instruments. Accordingly, the estimates of fair value for our fixed income and state and municipal securities are included in the amount disclosed in Level 2 of the hierarchy. | ||||||||||||||||
The valuation of the limited partnerships and real estate investments is based upon the capital value we obtain from the financial statements we receive from the general partner which is deemed an appropriate approximation of the fair value as described in Note 13. These significant valuation inputs are unobservable and these investments are classified as Level 3. | ||||||||||||||||
The following table presents the level within the fair value hierarchy at which the financial assets of the Company’s employee pension plan are measured on a recurring basis at December 31, 2014. | ||||||||||||||||
Fair Value of Assets by Type and Level: | As of December 31, 2014 | |||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mercer Group Trust | $ | — | $ | 464 | $ | — | $ | 464 | ||||||||
Virtus Real Estate Securities Trust | — | 14.3 | — | 14.3 | ||||||||||||
Limited partnerships and real estate investments | — | — | 57.6 | 57.6 | ||||||||||||
Total assets at fair value [1] | $ | — | $ | 478.3 | $ | 57.6 | $ | 535.9 | ||||||||
——————— | ||||||||||||||||
[1] | Excludes $1.3 million in cash and cash equivalents and money market funds. | |||||||||||||||
The following table presents the level within the fair value hierarchy at which the financial assets of the Company’s employee pension plan are measured on a recurring basis at December 31, 2013. | ||||||||||||||||
Fair Value of Assets by Type and Level: | As of December 31, 2013, as restated | |||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mercer Group Trust | $ | — | $ | 446.7 | $ | — | $ | 446.7 | ||||||||
Virtus Real Estate Securities Trust | — | 10.8 | — | 10.8 | ||||||||||||
Limited partnerships and real estate investments | — | — | 55.3 | 55.3 | ||||||||||||
Total assets at fair value [1] | $ | — | $ | 457.5 | $ | 55.3 | $ | 512.8 | ||||||||
——————— | ||||||||||||||||
[1] | Excludes $0.8 million in cash and cash equivalents and money market funds. | |||||||||||||||
Level 3 Financial Assets - Pension: | Limited Partnerships | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Balance, beginning of period | $ | 55.3 | $ | 50.1 | ||||||||||||
Purchases | 3.4 | 4.2 | ||||||||||||||
Sales | (4.2 | ) | (8.1 | ) | ||||||||||||
Net appreciation on partnerships | 3.1 | 9.1 | ||||||||||||||
Balance, end of period | $ | 57.6 | $ | 55.3 | ||||||||||||
Supplemental Plans | ||||||||||||||||
The Company also has two supplemental plans that provide benefits to certain executives in excess of the primary plan. These plans are unfunded and represent general obligations of the Company. We fund periodic benefit payments under these plans from cash flow from operations as they become due. | ||||||||||||||||
The following tables set forth a reconciliation of beginning and ending balances of the projected benefit obligation of the Company’s supplemental plans for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
Changes in Benefit Obligations: | Supplemental Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Plans’ Projected Benefit Obligation | ||||||||||||||||
Projected benefit obligation, beginning of period | $ | (137.4 | ) | $ | (150.9 | ) | $ | (141.9 | ) | |||||||
Interest cost | (6.4 | ) | (5.6 | ) | (6.1 | ) | ||||||||||
Actuarial gain (loss) | (18.6 | ) | 10.8 | (12.7 | ) | |||||||||||
Plan disbursements | 8.7 | 8.3 | 9.8 | |||||||||||||
Plan amendments | — | — | — | |||||||||||||
Projected benefit obligation, end of period | $ | (153.7 | ) | $ | (137.4 | ) | $ | (150.9 | ) | |||||||
Plan assets less than projected benefit obligations, end of period | $ | (153.7 | ) | $ | (137.4 | ) | $ | (150.9 | ) | |||||||
Accumulated benefit obligation | $ | 153.7 | $ | 137.4 | $ | 150.9 | ||||||||||
Amounts Recognized in Consolidated Balance Sheets: | Supplemental Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
As restated | ||||||||||||||||
Pension and post-employment liabilities | $ | (153.7 | ) | $ | (137.4 | ) | ||||||||||
Changes recognized in Other Comprehensive Income (Loss) were as follows: | Supplemental Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | 63.5 | $ | 77.2 | $ | 66.9 | ||||||||||
Deferrals for the period – net actuarial loss / (gain) | 18.6 | (10.8 | ) | 12.7 | ||||||||||||
Amortization for the period – net actuarial loss / (gain) | (2.6 | ) | (2.9 | ) | (2.4 | ) | ||||||||||
Balance, end of period | $ | 79.5 | $ | 63.5 | $ | 77.2 | ||||||||||
Amounts in Accumulated Other Comprehensive Income (Loss) that are expected to be recognized | Supplemental | |||||||||||||||
as components of Net Periodic Cost (Credit) during the next fiscal year are as follows: | Plan | |||||||||||||||
($ in millions) | ||||||||||||||||
Prior service (credit) cost | $ | — | ||||||||||||||
Net actuarial loss | 3 | |||||||||||||||
Total | $ | 3 | ||||||||||||||
Components of Supplemental Plan Benefit Expense: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Service cost | $ | — | $ | — | $ | — | ||||||||||
Interest cost | 6.4 | 5.6 | 6.1 | |||||||||||||
Plan assets expected return | — | — | — | |||||||||||||
Net loss amortization | 2.6 | 2.9 | 2.4 | |||||||||||||
Prior service cost amortization | — | — | — | |||||||||||||
Supplemental plan benefit expense | $ | 9 | $ | 8.5 | $ | 8.5 | ||||||||||
Other Post-Employment Benefits | ||||||||||||||||
We have historically provided our employees with other post-employment benefits that include health care and life insurance. In December 2009, we announced the decision to eliminate retiree medical coverage for active employees whose age plus years of service did not equal at least 65 as of March 31, 2010. Employees who remain eligible must still meet certain other defined criteria to receive benefits. | ||||||||||||||||
In addition, the cap on the Company’s contribution of retiree medical costs for retirees under the age of 65 was reduced beginning with the 2011 plan year. In October 2012, we announced that effective January 1, 2013, the Company’s contribution for pre-65 retiree medical and for post-65 retiree medical was reduced per covered member. These decisions affected retiree medical contributions for both past service and active employees. Curtailments and plan amendments were recognized as a result of the plan changes. | ||||||||||||||||
This decision affected benefits attributed to past service for employees that were not grandfathered into retiree medical coverage as well as the expected years of future service for the reduction in the cap for retiree medical costs. Both a negative plan amendment and curtailment were recognized as a result of the plan changes. | ||||||||||||||||
Components of post-employment Benefit Expense: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Service cost | $ | 0.1 | $ | 0.2 | $ | 0.3 | ||||||||||
Interest cost | 1.4 | 1.3 | 1.8 | |||||||||||||
Net gain amortization | (0.3 | ) | — | (0.2 | ) | |||||||||||
Prior service cost amortization | (1.1 | ) | (1.2 | ) | (1.6 | ) | ||||||||||
Other post-employment benefit expense | $ | 0.1 | $ | 0.3 | $ | 0.3 | ||||||||||
Changes in Plan Accumulated Benefit Obligation: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | (36.5 | ) | $ | (40.6 | ) | $ | (59.6 | ) | |||||||
Service and interest cost accrued | (1.5 | ) | (1.5 | ) | (2.1 | ) | ||||||||||
Actuarial gain (loss) | 0.7 | 2.2 | 3.9 | |||||||||||||
Plan disbursements | 3.9 | 3.4 | 5.3 | |||||||||||||
Plan amendments | — | — | 11.9 | |||||||||||||
Balance, end of period | $ | (33.4 | ) | $ | (36.5 | ) | $ | (40.6 | ) | |||||||
Amounts Recognized in Consolidated Balance Sheets: | As of December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||
As restated | ||||||||||||||||
Pension and post-employment liabilities | $ | (33.4 | ) | $ | (36.5 | ) | ||||||||||
Changes recognized in Other Comprehensive Income (Loss) were as follows: | Other Post-Employment Benefits | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | (6.5 | ) | $ | (4.3 | ) | $ | (0.6 | ) | |||||||
Deferrals for the period – net actuarial loss / (gain) | (0.7 | ) | (2.2 | ) | (3.9 | ) | ||||||||||
Amortization for the period – net actuarial loss / (gain) | 0.3 | — | 0.2 | |||||||||||||
Subtotal, end of period | (6.9 | ) | (6.5 | ) | (4.3 | ) | ||||||||||
Balance, beginning of period | (10.8 | ) | (12.0 | ) | (1.7 | ) | ||||||||||
Deferrals for prior service cost / (credit) | — | — | (11.9 | ) | ||||||||||||
Amortization for prior service cost / (credit) | 1.1 | 1.2 | 1.6 | |||||||||||||
Subtotal, end of period | (9.7 | ) | (10.8 | ) | (12.0 | ) | ||||||||||
Balance, end of period | $ | (16.6 | ) | $ | (17.3 | ) | $ | (16.3 | ) | |||||||
The post-employment benefit plan is unfunded and had accumulated post-employment benefit obligations of $33.4 million and $36.5 million as of December 31, 2014 and 2013, respectively. We fund periodic benefit payments under this plan from cash flows from operations as they become due. | ||||||||||||||||
Gain amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic post-employment credits for the next fiscal year are $1.4 million, all of which relate to prior service cost. | ||||||||||||||||
Employment Agreements and Restructuring Expense | ||||||||||||||||
We have entered into agreements with certain key executives of the Company that will, in certain circumstances, provide separation benefits upon the termination of the executive’s employment by the Company for reasons other than death, disability, cause or retirement, or by the executive for “good reason,” as defined in the agreements. The agreements provide this protection only if the termination occurs following (or is effectively connected with) the occurrence of a change of control, as defined in the agreements. As soon as reasonably possible upon a change in control, as so defined, we are required to make an irrevocable contribution to a trust in an amount sufficient to pay benefits due under these agreements. | ||||||||||||||||
401(k) Plan | ||||||||||||||||
The Company’s employees are eligible to participate in a 401(k) plan. Under this plan, employees may contribute up to 60% of eligible base salary, and then the Company matches up to 6% of an employee’s contributions at certain percentage levels. Certain employees can elect to defer a certain percentage of their base pay into the Company’s Non-Qualified Excess Investment Plan and receive a Company match based upon the same formula in our 401(k) plan. All balances under this plan are unfunded general obligations of the Company, which the Company hedges by making contributions to a trust subject to the claims of our creditors in certain circumstances. Expense recognized related to the 401(k) plan was $4.3 million, $4.0 million and $3.4 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||
Effective April 1, 2010, employees of the Company (except Saybrus employees) are eligible to receive an annual employer discretionary contribution according to the 401(k) plan terms. | ||||||||||||||||
Additional Retirement Benefits | ||||||||||||||||
We have agreements with certain of our employees that provide for additional retirement benefits. As of December 31, 2014 and 2013, the estimated liability for these agreements was $18.1 million and $16.9 million, respectively. We fund periodic benefit payments under this plan from cash flows from operations as they become due. |
ShareBased_Payments
Share-Based Payments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Share-based Payments | Share-Based Payments | ||||||||||||||||||||
We provide share-based compensation to certain of our employees and non-employee directors, as further described below. The compensation cost that has been charged against income for these plans is summarized in the following table: | |||||||||||||||||||||
Share-Based Compensation Plans: | For the years ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
As restated | As revised | ||||||||||||||||||||
Compensation cost charged to income from continuing operations | $ | 3 | $ | 4.6 | $ | 2.6 | |||||||||||||||
Income tax expense (benefit) before valuation allowance | $ | (1.0 | ) | $ | (1.6 | ) | $ | (0.9 | ) | ||||||||||||
We did not capitalize any cost of stock-based compensation during the three years ended December 31, 2014. | |||||||||||||||||||||
Stock options | |||||||||||||||||||||
Each option, once vested, entitles the holder to purchase one share of our common stock. The employees’ options vest over a three-year period while the directors’ options vest immediately. Once vested, options become exercisable. For stock options awarded, we recognize expense over the vesting period equal to their fair value at issuance. We calculate the fair value of options using the Black-Scholes option valuation model. The Stock Incentive Plan authorizes the issuance to officers and employees of up to that number of options equal to 5% of the total number of common stock shares outstanding immediately after the initial public offering in June 2001, or approximately 262,500 shares, plus an additional 1%, or approximately 52,500 shares, for officers and employees, less the number of share options issuable under the Directors’ Stock Plan. The Directors’ Stock Plan authorizes the issuance to non-employee directors of up to that number of options equal to 0.5%, or approximately 26,250 shares, of the total number of common stock shares outstanding immediately after the initial public offering in June 2001, plus 25,000 shares, bringing the total to approximately 51,250 shares. | |||||||||||||||||||||
Key Assumptions Used in Option Valuation: | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected term [1] | N/A | N/A | 10 years | ||||||||||||||||||
Weighted-average expected volatility | 37.7 | % | |||||||||||||||||||
Weighted-average interest rate | 1.9 | % | |||||||||||||||||||
Weighted-average common share dividend yield | — | % | |||||||||||||||||||
——————— | |||||||||||||||||||||
[1] | Insufficient historical share option exercise experience exists. Therefore, a simplified method for estimating a stock option term was used. | ||||||||||||||||||||
A summary of the stock option activity as of and for the year ended December 31, 2014 is as follows: | |||||||||||||||||||||
Summary of Stock Option Activity: [1] | For the years ended December 31, 2014 | ||||||||||||||||||||
($ in millions, except share data) | Common | Weighted- | Weighted- | Aggregate | |||||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding, beginning of period | $ | 77,069 | $ | 186.95 | 1.09 | $ | 0.4 | ||||||||||||||
Granted | — | — | 0 | — | |||||||||||||||||
Exercised | (1,472 | ) | 30.46 | 0 | — | ||||||||||||||||
Forfeited | (24,702 | ) | 198.75 | 0 | — | ||||||||||||||||
Canceled/expired | (528 | ) | 30.46 | 0 | — | ||||||||||||||||
Outstanding, end of period | $ | 50,367 | $ | 187.38 | 2.52 | $ | 0.1 | ||||||||||||||
Vested and exercisable, end of period | $ | 50,367 | $ | 187.38 | 2.52 | $ | 0.1 | ||||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
Weighted-Average Fair Value: [1] | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013, as restated | 2012, as revised | |||||||||||||||||||
Common | Grant Date | Common | Grant Date | Common | Grant Date | ||||||||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | ||||||||||||||||
Options granted | — | $ | — | — | $ | — | 2,053 | $ | 9.03 | ||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
There were 1,472, 0 and 250 options exercised for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
As of December 31, 2014, there were no unrecognized compensation costs related to non-vested stock options. | |||||||||||||||||||||
Restricted stock units and Restricted stock | |||||||||||||||||||||
We have RSU plans under which we grant RSUs to employees and non-employee directors. RSUs granted to employees are performance-vested, time-vested or a combination thereof. Each RSU, once vested, entitles the holder to one share of our common stock when the restriction expires. We recognize compensation expense over the vesting period of the RSUs, which is generally three years for each award. | |||||||||||||||||||||
A summary of the RSU activity as of and for the year ended December 31, 2014 is as follows: | |||||||||||||||||||||
Summary of RSU Activity: [1] | For the years ended December 31, 2014 | ||||||||||||||||||||
Time-Vested | Performance-Contingent | ||||||||||||||||||||
Number | Weighted- | Number | Weighted- | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Outstanding, beginning of period | 86,780 | $ | 47.92 | 17,024 | $ | 55.07 | |||||||||||||||
Awarded | 13,063 | 55.81 | — | — | |||||||||||||||||
Adjustment for performance results | — | — | — | — | |||||||||||||||||
Conversion of performance-contingent awards | — | — | — | — | |||||||||||||||||
Converted to common shares | (3,756 | ) | 41.39 | (16,072 | ) | 55.07 | |||||||||||||||
Forfeited | — | — | (952 | ) | 55.07 | ||||||||||||||||
Outstanding, end of period | 96,087 | $ | 49.25 | — | $ | — | |||||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
The shares underlying these awards will be issued upon vesting unless the participant elects to defer receipt. Deferred awards will be issued on each employee’s and each director’s respective termination or retirement. We issue new shares to satisfy RSU conversions. | |||||||||||||||||||||
RSUs Awarded: [1] | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013, as restated | 2012, as revised | |||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
Time-vested RSUs awarded | 13,063 | $ | 55.81 | 18,251 | $ | 33.76 | 16,497 | $ | 26.95 | ||||||||||||
Performance-contingent RSUs awarded | — | $ | — | — | $ | — | — | $ | — | ||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
RSU Values: | For the years ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
As restated | As revised | ||||||||||||||||||||
Intrinsic value of RSUs converted | $ | 0.2 | $ | 2.3 | $ | 0.1 | |||||||||||||||
Total grant date fair value of RSUs vested converted to common shares | $ | 0.2 | $ | 3.6 | $ | 0.2 | |||||||||||||||
As of December 31, 2014, there were no unrecognized compensation costs related to service-vested RSU awards. | |||||||||||||||||||||
There are no RSUs subject to future issuance based on the achievement of market criteria established under certain of our incentive plans. | |||||||||||||||||||||
Liability Awards | |||||||||||||||||||||
The Company has issued cash-settled awards with payouts linked to the performance of the Company’s stock to certain employees and executive officers. Each recipient is granted a base cash payout that is adjusted according to a formula that integrates the current stock price and the achievement of certain other Company performance criteria. Cash-settled awards are recorded as liabilities and remeasured at the end of each reporting period until final payout is made. Unlike stock-settled awards, which have a fixed grant date fair value, the fair value of the unsettled liability awards are remeasured based upon an updated calculation of the fair value of the award given changes in the criteria noted above. | |||||||||||||||||||||
The Company issues awards that are intended to be settled in cash. As of December 31, 2014 and 2013, a liability of $1.4 million and $4.7 million, respectively was accrued for these awards. Cash payments of $4.7 million and $0 were made related to these awards for the years ended December 31, 2014 and 2013, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Earnings Per Share | ||||||||
The following table presents a reconciliation of shares used in calculating basic earnings (loss) per common share to those used in calculating diluted earnings (loss) per common share. | |||||||||
Shares Used in Calculation of Earnings Per Share: [1] | For the years ended December 31, | ||||||||
(shares in thousands) | 2014 | 2013 | 2012 | ||||||
As restated | As revised | ||||||||
Weighted-average common shares outstanding | 5,748 | 5,735 | 5,770 | ||||||
Weighted-average effect of dilutive potential common shares: | |||||||||
Restricted stock units | 5 | 27 | 75 | ||||||
Employee stock options | 2 | 2 | 1 | ||||||
Potential common shares | 7 | 29 | 76 | ||||||
Less: Potential common shares excluded from calculation due to net losses | (7 | ) | — | (76 | ) | ||||
Dilutive potential common shares | — | 29 | — | ||||||
Weighted-average common shares outstanding, | 5,748 | 5,764 | 5,770 | ||||||
including dilutive potential common shares | |||||||||
——————— | |||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||
As a result of the net loss from continuing operations for the years ended December 31, 2014 and 2012, we are required to use basic weighted average common shares outstanding in the calculation of diluted earnings per share for those periods, since the inclusion of shares of restricted stock units and options would have been anti-dilutive to the earnings per share calculation. During 2013 we reported net income from continuing operations and included all potentially dilutive common shares in the calculation of diluted earnings per share. | |||||||||
On August 10, 2012, a 1-for-20 reverse stock split became effective and an odd lot program was subsequently instituted following the 1-for-20 reverse stock split. The odd lot program terminated as of October 26, 2012. | |||||||||
The reverse stock split reduced the shares of common stock outstanding from approximately 116.0 million to approximately 5.8 million. All weighted-average common shares outstanding for the years ended December 31, 2014, 2013 and 2012, respectively, have been adjusted to reflect the 1-for-20 reverse stock split. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Information | Segment Information | |||||||||||
In managing our business, we analyze segment performance on the basis of operating income. Operating income, as well as components of and financial measures derived from operating income, are non-U.S. GAAP financial measures. | ||||||||||||
Management believes that these measures provide additional insight into the underlying trends in our operations and are the internal performance measures we use in the management of our operations, including our compensation plans and planning processes. However, our non-U.S. GAAP financial measures should not be considered as substitutes for net income or measures that are derived from or incorporate net income and may be different from similarly titled measures of other companies. Investors should evaluate both U.S. GAAP and non-U.S. GAAP financial measures when reviewing our performance. Operating income is calculated by excluding realized investment gains (losses) as their amount and timing may be subject to management’s investment decisions. | ||||||||||||
Segment Information on Revenues: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Life and Annuity [1] | $ | 1,640.80 | $ | 1,689.60 | $ | 1,769.10 | ||||||
Saybrus Partners [2] | 37.5 | 26.8 | 22.9 | |||||||||
Less: Intercompany revenues [3] | 11.4 | 8.8 | 10.8 | |||||||||
Total revenues | $ | 1,666.90 | $ | 1,707.60 | $ | 1,781.20 | ||||||
——————— | ||||||||||||
[1] | Includes intercompany interest revenue of $0.1 million, $0.4 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
[2] | Includes intercompany commission revenue of $11.5 million, $9.2 million and $11.4 million for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
[3] | All intercompany balances are eliminated in consolidating the financial statements. | |||||||||||
Life and Annuity derives revenue from premiums, fee income and COI charges and net investment income. Saybrus derives revenue primarily from fees collected for advisory and distribution services. | ||||||||||||
Results of Operations by Segment as Reconciled to Consolidated Net Income (Loss): | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Life and Annuity operating income (loss) | $ | (160.2 | ) | $ | 19 | $ | (151.2 | ) | ||||
Saybrus Partners operating income (loss) | 6.2 | 3.1 | 2.6 | |||||||||
Less: Applicable income tax expense (benefit) | 10.5 | 8.5 | (4.7 | ) | ||||||||
Income (loss) from discontinued operations, net of income taxes | (3.5 | ) | (2.9 | ) | (15.6 | ) | ||||||
Net realized investment gains (losses) | (41.2 | ) | 16 | (16.8 | ) | |||||||
Gain on debt repurchase | — | — | 11.9 | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | 4 | 0.7 | 0.6 | |||||||||
Net income (loss) | $ | (213.2 | ) | $ | 26 | $ | (165.0 | ) | ||||
We have not provided asset information for the segments. The assets attributable to Saybrus are not significant relative to the assets of our consolidated balance sheets and are not utilized by the chief operating decision maker. All third-party interest revenue and interest expense of the Company reside within the Life and Annuity segment. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations |
PFG Holdings, Inc. | |
On January 4, 2010, we signed a definitive agreement to sell PFG and its subsidiaries, including AGL Life Assurance Company, to Tiptree. Because of the divestiture, these operations are reflected as discontinued operations. On June 23, 2010, we completed the divestiture of PFG and closed the transaction. | |
The definitive agreement contains a provision requiring us to indemnify Tiptree for any losses due to actions resulting from certain specified acts or omissions associated with the divested business prior to closing. There has been litigation filed that falls within this provision of the agreement but does not name the Company as a party to the litigation. We intend to defend these matters vigorously based on our indemnity commitment. | |
There were no assets or liabilities on the consolidated balance sheets identified as discontinued operations related to PFG at December 31, 2014 and 2013. | |
During the years ended December 31, 2014, 2013 and 2012, net losses recognized for discontinued operations were $0.1 million, $1.0 million and $5.7 million, respectively, and primarily related to the indemnification of Tiptree. | |
Discontinued Reinsurance Operations | |
In 1999, we discontinued our reinsurance operations through a combination of sale, reinsurance and placement of certain retained group accident and health reinsurance business into run-off. We adopted a formal plan to stop writing new contracts covering these risks and to end the existing contracts as soon as those contracts would permit. However, we remain liable for claims under contracts which have not been commuted. | |
We have established reserves for claims and related expenses that we expect to pay on our discontinued group accident and health reinsurance business. These reserves are based on currently known facts and estimates about, among other things, the amount of insured losses and expenses that we believe we will pay, the period over which they will be paid, the amount of reinsurance we believe we will collect from our retrocessionaires and the likely legal and administrative costs of winding down the business. Our total policy liabilities and accruals were $39.3 million and $44.1 million as of December 31, 2014 and 2013, respectively. Our total amounts recoverable from retrocessionaires related to paid losses were $0.1 million and $0.1 million as of December 31, 2014 and 2013, respectively. Losses of $3.4 million in 2014, $1.9 million in 2013 and $9.9 million in 2012 were recognized primarily related to adverse developments which occurred during these respective years. See Note 23 to these consolidated financial statements for additional discussion on remaining liabilities of our discontinued reinsurance operations. |
Phoenix_Life_Statutory_Financi
Phoenix Life Statutory Financial Information and Regulatory Matters | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Regulated Operations [Abstract] | ||||||||||||
Phoenix Life Statutory Financial Information and Regulatory Matters | Phoenix Life Statutory Financial Information and Regulatory Matters | |||||||||||
Our insurance subsidiaries are required to file, with state regulatory authorities, annual statements prepared on an accounting basis prescribed or permitted by such authorities. | ||||||||||||
As of December 31, 2014, statutory surplus differs from equity reported in accordance with U.S. GAAP for life insurance companies primarily as follows: | ||||||||||||
• | policy acquisition costs are expensed when incurred; | |||||||||||
• | surplus notes are included in surplus rather than debt; | |||||||||||
• | post-employment benefit expense allocated to Phoenix Life relate only to vested participants and expense is based on different assumptions and reflect a different method of adoption; | |||||||||||
• | life insurance reserves are based on different assumptions; and | |||||||||||
• | deferred tax assets are limited to amounts reversing in a specified period with an additional limitation based upon 10% or 15% of statutory surplus, dependent on meeting certain risk-based capital (“RBC”) thresholds. | |||||||||||
The information below is taken from the Phoenix Life annual statement filed with state regulatory authorities. | ||||||||||||
Statutory Financial Data for Phoenix Life: [1] | As of or for the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
Statutory capital, surplus and surplus notes | $ | 609.2 | $ | 597 | $ | 793.6 | ||||||
Asset valuation reserve (“AVR”) | 143 | 138.2 | 128.9 | |||||||||
Statutory capital, surplus and AVR [2] | $ | 752.2 | $ | 735.2 | $ | 922.5 | ||||||
Statutory net gain (loss) from operations | $ | 116.2 | $ | 79.8 | $ | 160.5 | ||||||
Statutory net income (loss) | $ | 132.5 | $ | (21.0 | ) | $ | 156.2 | |||||
——————— | ||||||||||||
[1] | Amounts in statements filed with state regulatory authorities may differ from audited financial statements. | |||||||||||
[2] | Includes all life insurance subsidiaries in consolidation. | |||||||||||
Phoenix Life’s statutory basis capital and surplus (including AVR) increased from $735.2 million at December 31, 2013 to $752.2 million at December 31, 2014. The principal factors of the change were net income of $132.5 million offset by $58.9 million of life subsidiary unrealized losses and $56.0 million of dividends declared during 2014. | ||||||||||||
New York Insurance Law requires that New York life insurers report their RBC. RBC is based on a formula calculated by applying factors to various assets, premium and statutory reserve items. The formula takes into account the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk and business risk. New York Insurance Law gives the NYDFS explicit regulatory authority to require various actions by, or take various actions against, insurers whose total adjusted capital does not exceed certain RBC levels. Each of the U.S. insurance subsidiaries of Phoenix Life is also subject to these same RBC requirements. As of December 31, 2014 and 2013, Phoenix Life’s RBC was in excess of 300% of Company Action Level (the level where a life insurance enterprise must submit a comprehensive plan to state insurance regulators)and each of of its U.S. insurance subsidiaries was in excess of 200%. | ||||||||||||
Our primary sources of liquidity are dividends from Phoenix Life. Under New York Insurance Law, Phoenix Life is permitted to pay stockholder dividends in any calendar year without prior approval from the NYDFS in the amount of the lesser of 10% of Phoenix Life’s surplus to policyholders as of the immediately preceding calendar year or Phoenix Life’s statutory net gain from operations for the immediately preceding calendar year, not including realized capital gains. Based on this calculation, Phoenix Life would be able to pay a dividend of $59.9 million in 2015. During the year ended December 31, 2014, Phoenix Life declared $56.0 million in dividends. In assessing our ability to pay dividends from Phoenix Life, we also consider the level of statutory capital and RBC of that entity. Phoenix Life may have less flexibility to pay dividends to the parent company if we experience declines in either statutory capital or RBC in the future. As of December 31, 2014, we had $752.2 million of statutory capital, surplus and AVR. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||
Premises and Equipment | Premises and Equipment | |||||||||||||||
Premises and equipment are included in other assets in our consolidated balance sheets. | ||||||||||||||||
Cost and Carrying Value of Premises and Equipment: | As of December 31, | |||||||||||||||
($ in millions) | 2014 | 2013, as restated | ||||||||||||||
Cost | Carrying | Cost | Carrying | |||||||||||||
Value | Value | |||||||||||||||
Real estate | $ | 99.8 | $ | 32.6 | $ | 99.3 | $ | 33.6 | ||||||||
Equipment and software | 73.8 | 12.2 | 72.6 | 12.2 | ||||||||||||
Leasehold improvements | 0.4 | 0.2 | 0.4 | 0.2 | ||||||||||||
Premises and equipment cost and carrying value | 174 | $ | 45 | 172.3 | $ | 46 | ||||||||||
Accumulated depreciation and amortization | (129.0 | ) | (126.3 | ) | ||||||||||||
Premises and equipment | $ | 45 | $ | 46 | ||||||||||||
Depreciation and amortization expense for premises and equipment for 2014, 2013 and 2012 totaled $6.0 million, $8.2 million and $12.0 million, respectively. | ||||||||||||||||
Rental expenses for operating leases, principally with respect to buildings, amounted to $0.6 million, $0.6 million and $0.9 million in 2014, 2013 and 2012, respectively. Future minimum rental payments under non-cancelable operating leases were $5.9 million as of December 31, 2014, payable as follows: in 2015, $0.8 million; in 2016, $0.8 million; in 2017, $0.8 million; in 2018, $0.8 million; in 2019, $0.5 million and thereafter, $2.2 million. All future obligations for leased property of our discontinued operations were assumed by the buyer upon the completion of the sale on June 23, 2010. See Note 20 to these consolidated financial statements for additional information. |
Contingent_Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities |
Litigation and arbitration | |
The Company is regularly involved in litigation and arbitration, both as a defendant and as a plaintiff. The litigation and arbitration naming the Company as a defendant ordinarily involves our activities as an insurer, employer, investor, investment advisor or taxpayer. | |
It is not feasible to predict or determine the ultimate outcome of all legal or arbitration proceedings or to provide reasonable ranges of potential losses. Management of the Company believes that the outcome of our litigation and arbitration matters are not likely, either individually or in the aggregate, to have a material adverse effect on the financial condition of the Company. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation and arbitration, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on the results of operations or cash flows in particular quarterly or annual periods. | |
SEC Cease-and-Desist Order | |
Phoenix and PHL Variable are subject to a Securities and Exchange Commission (the “SEC”) Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order, which was approved by the SEC in March 2014 (the “March 2014 Order”) and was subsequently amended by an amended SEC administrative order approved by the SEC in August 2014 (the March 2014 Order, as amended, the “Amended Order”). The Amended Order and the March 2014 Order (collectively, the “Orders”), directed Phoenix and PHL Variable to cease and desist from committing or causing any violations and any future violations of Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder and Section 15(d) of the Exchange Act and Rules 15d-1 and 15d-13 thereunder. Phoenix and PHL Variable remain subject to these obligations. Pursuant to the Orders, Phoenix and PHL Variable were required to file certain periodic SEC reports in accordance with the timetables set forth in the Orders. All of such filings have been made. Phoenix and PHL Variable paid civil monetary penalties to the SEC in the aggregate amount of $1.1 million pursuant to the terms of the Orders. | |
Cases Brought by Policy Investors | |
On June 5, 2012, Wilmington Savings Fund Society, FSB, as successor in interest to Christiana Bank & Trust Company and as trustee of 60 unnamed trusts, filed suit against Phoenix, Phoenix Life and PHL Variable in the United States District Court for the Central District of California; the case was later transferred to the District of Delaware (C.A. No. 13-499-RGA) by order dated March 28, 2013. After the plaintiffs twice amended their complaint, and dropped Phoenix as a defendant and dropped one of the plaintiff Trusts, the court issued an order on April 9, 2014 dismissing seven of the ten counts, and partially dismissing two more, with prejudice. The court dismissed claims alleging that Phoenix Life and PHL Variable committed RICO violations and fraud by continuing to collect premiums while concealing an intent to later deny death claims. The claims that remain in the case seek a declaration that the policies at issue are valid, and damages relating to cost of insurance increases. This case has been settled, and the settlement does not have a material impact on Phoenix’s financial statements. | |
On August 2, 2012, Lima LS PLC filed a complaint against Phoenix, Phoenix Life, PHL Variable, James D. Wehr, Philip K. Polkinghorn, Edward W. Cassidy, Dona D. Young and other unnamed defendants in the United States District Court for the District of Connecticut (Case No. CV12-01122). On July 1, 2013, the defendants’ motion to dismiss the complaint was granted in part and denied in part. Thereafter, on July 31, 2013, the plaintiff served an amended complaint against the same defendants, with the exception that Mr. Cassidy was dropped as a defendant. The plaintiffs allege that Phoenix Life promoted certain policy sales knowing that the policies would ultimately be owned by investors and then challenging the validity of these policies or denying claims submitted on these policies. Plaintiffs are seeking damages, including punitive and treble damages, attorneys’ fees and a declaratory judgment. We believe we have meritorious defenses against this lawsuit and we intend to vigorously defend against these claims. The outcome of this litigation and any potential losses are uncertain. | |
Cost of Insurance Cases | |
On November 18, 2011, Martin Fleisher and another plaintiff (the “Fleisher Litigation”), on behalf of themselves and others similarly situated, filed suit against Phoenix Life in the United States District Court for the Southern District of New York (C.A. No. 1:11-cv-08405-CM-JCF (U.S. Dist. Ct; S.D.N.Y.)) challenging COI rate adjustments implemented by Phoenix Life in 2010 and 2011, which Phoenix Life maintains were based on policy language permitting such adjustments. By order dated July 12, 2013, two separate classes were certified in the Fleisher Litigation; by subsequent order dated August 26, 2013, the court decertified one of the classes. The complaint seeks damages for breach of contract. The class certified in the court’s July 12, 2013 order, as limited by the court’s August 26, 2013 order, is limited to holders of Phoenix Life policies issued in New York subject to New York law and subject to Phoenix Life’s 2011 COI rate adjustment. By order dated April 29, 2014, the court denied Martin Fleisher’s motion for summary judgment in the Fleisher Litigation in its entirety, while granting in part and denying in part Phoenix Life’s motion for summary judgment. | |
Phoenix Life’s subsidiary, PHL Variable, has been named as a defendant in six actions challenging its COI rate adjustments implemented concurrently with the Phoenix Life adjustments. Five cases have been brought against PHL Variable, while one case has been brought against PHL Variable and Phoenix Life. These six cases, only one of which is styled as a class action, have been brought by (1) Tiger Capital LLC (C.A. No. 1:12-cv- 02939-CM-JCF; U.S. Dist. Ct; S.D.N.Y., complaint filed on March 14, 2012; the “Tiger Capital Litigation”); (2-5) U.S. Bank National Association, as securities intermediary for Lima Acquisition LP ((2: C.A. No. 1:12-cv-06811-CM-JCF; U.S. Dist. Ct; S.D.N.Y., complaint filed on November 16, 2011; 3: C.A. No. 1:13-cv-01580-CM-JCF; U.S. Dist. Ct; S.D.N.Y., complaint filed on March 8, 2013; collectively, the “U.S. Bank N.Y. Litigations”); (4: C.A. No. 3:14-cv-00555-WWE; U.S. Dist. Ct; D. Conn., complaint originally filed on March 6, 2013, in the District of Delaware and transferred by order dated April 22, 2014, to the District of Connecticut; and 5: C.A. No. 3:14-cv-01398-WWE, U.S. Dist. Ct; D. Conn., complaint filed on September 23, 2014, and amended on October 16, 2014, to add Phoenix Life as a defendant (collectively the “U.S. Bank Conn. Litigations”)); and (6) SPRR LLC (C.A. No. 1:14-cv-8714; U.S. Dist. Ct.; S.D.N.Y., complaint filed on October 31, 2014; the “SPRR Litigation”). SPRR LLC filed suit against PHL Variable, on behalf of itself and others similarly situated, challenging COI rate adjustments implemented by PHL Variable in 2011. | |
The Tiger Capital Litigation and the two U.S. Bank N.Y. Litigations were assigned to the same judge as the Fleisher Litigation, and discovery in these four actions has concluded. By orders in both U.S. Bank N.Y. Litigations dated May 23, 2014, the court denied U.S. Bank’s motions for summary judgment in their entirety, while granting in part and denying in part PHL Variable’s motions for summary judgment. U.S. Bank moved for reconsideration of the court’s summary judgment decisions in the U.S. Bank N.Y. Litigations, which the court denied by orders dated June 4, 2014. By order in the Tiger Capital Litigation dated July 23, 2014, the court denied Tiger Capital’s motion for summary judgment in its entirety, while granting in part and denying in part PHL Variable’s motion for summary judgment. Plaintiff in the Tiger Capital Litigation seeks damages for breach of contract. Plaintiff in the U.S. Bank N.Y. Litigations and the U.S. Bank Conn. Litigations seeks damages and attorneys’ fees for breach of contract and other common law and statutory claims. The plaintiff in the SPRR Litigation seeks damages for breach of contract for a nationwide class of policyholders. | |
The Fleisher Litigation, the U.S. Bank N.Y. Litigations and the Tiger Capital Litigation are scheduled for consecutive trials commencing on June 15, 2015. | |
Complaints to state insurance departments regarding PHL Variable’s COI rate adjustments have also prompted regulatory inquiries or investigations in several states, with two of such states (California and Wisconsin) issuing letters directing PHL Variable to take remedial action in response to complaints by a single policyholder. PHL Variable disagrees with both states’ positions. On March 23, 2015, an Administrative Law Judge (“ALJ”) in Wisconsin ordered PHL Variable to pay restitution to current and former owners of seven policies and imposed a fine on PHL Variable which, in a total amount, does not have a material impact on PHL Variable’s financial position (Office of the Commissioner of Insurance Case No. 13- C35362). PHL Variable disagrees with the ALJ’s determination and intends to appeal the order. | |
Phoenix Life and PHL Variable believe that they have meritorious defenses against all of these lawsuits and regulatory directives and intend to vigorously defend against them, including by appeal if necessary. The outcome of these matters is uncertain and any potential losses cannot be reasonably estimated. | |
Regulatory matters | |
State regulatory bodies, the SEC, the Financial Industry Regulatory Authority (“FINRA”), the IRS and other regulatory bodies regularly make inquiries of us and, from time to time, conduct examinations or investigations concerning our compliance with laws and regulations related to, among other things, our insurance and broker-dealer subsidiaries, securities offerings and registered products. We endeavor to respond to such inquiries in an appropriate way and to take corrective action if warranted. Further, the Company is providing to the SEC certain information and documentation regarding the restatement of its prior period financial statements and the staff of the SEC has indicated to the Company that the matter remains subject to further investigation and potential further regulatory action. We cannot predict the outcome of any of such investigations or actions related to these or other matters. | |
Regulatory actions may be difficult to assess or quantify. The nature and magnitude of their outcomes may remain unknown for substantial periods of time. It is not feasible to predict or determine the ultimate outcome of all pending inquiries, investigations, legal proceedings and other regulatory actions, or to provide reasonable ranges of potential losses. Based on current information, we believe that the outcomes of our regulatory matters are not likely, either individually or in the aggregate, to have a material adverse effect on our consolidated financial condition. However, given the inherent unpredictability of regulatory matters, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on our consolidated financial statements in particular quarterly or annual periods. | |
State Insurance Department Examinations | |
During 2012 and 2013, the NYDFS conducted its routine quinquennial financial and market conduct examination covering the period ended December 31, 2012 of Phoenix Life. The Connecticut Insurance Department conducted its routine financial examination of PHL Variable, and two other Connecticut-domiciled insurance subsidiaries. The NYDFS issued the final examination portion of its report for Phoenix Life on June 26, 2014. The Connecticut Insurance Department released its financial examination report for PHL Variable on May 28, 2014 and its market conduct examination on December 29, 2014. | |
Unclaimed Property Inquiries | |
On July 5, 2011, the NYDFS issued a letter (“308 Letter”) requiring life insurers doing business in New York to use data available on the U.S. Social Security Administration’s Death Master File or a similar database to identify instances where death benefits under life insurance policies, annuities and retained asset accounts are payable, to locate and pay beneficiaries under such contracts and to report the results of the use of the data. Additionally, the insurers are required to report on their success in finding and making payments to beneficiaries or escheatment of funds deemed abandoned under state laws. We have substantially completed the work associated with this matter and the remaining amount of claim and interest payments to beneficiaries or state(s) has been recorded in policy liabilities and accruals. In addition, 39 states have indicated their intent to perform an unclaimed property audit of funds deemed abandoned under state laws. The audits are in process. | |
Discontinued Reinsurance Operations | |
In 1999, Phoenix Life discontinued reinsurance operations through a combination of sale, reinsurance and placement of certain retained group accident and health reinsurance business into run-off. A formal plan was adopted to stop writing new contracts covering these risks and to end existing contracts as soon as those contracts would permit. However, Phoenix Life remains subject to claims under contracts that have not been commuted. Certain discontinued group accident and health reinsurance business was the subject of disputes concerning the placement of the business with reinsurers and the recovery of reinsurance. These disputes have been substantially resolved or settled. | |
We have established reserves for claims and related expenses that we expect to pay on our discontinued group accident and health reinsurance business. These reserves are based on currently known facts and estimates about, among other things, the amount of insured losses and expenses that we believe we will pay, the period over which they will be paid, the amount of reinsurance we believe we will collect from our retrocessionaires and the likely legal and administrative costs of winding down the business. | |
Phoenix Life expects reserves and reinsurance to cover the run-off of the business; however, unfavorable or favorable claims and/or reinsurance recovery experience are reasonably possible and could result in our recognition of additional losses or gains in future years. Management believes, based on current information and after consideration of the provisions made in these consolidated financial statements, that any future adverse or favorable development of recorded reserves and/or reinsurance recoverables will not have a material adverse effect on its financial position. Nevertheless, it is possible that future developments could have a material adverse effect on our results of operations. | |
See Note 20 to these consolidated financial statements for additional information regarding discontinued operations. |
Other_Commitments
Other Commitments | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Other Commitments |
We have an agreement with HP Enterprise Services related to the management of our infrastructure services which expires in 2015. The remaining commitments total $14.3 million through 2015. | |
As part of its normal investment activities, the Company enters into agreements to fund limited partnerships that make debt and equity investments. As of December 31, 2014, the Company had unfunded commitments of $237.1 million under such agreements, of which $73.0 million is expected to be funded by December 31, 2015. See Note 8 to these consolidated financial statements for additional information on VIEs. | |
In addition, the Company enters into agreements to purchase private placement investments. As of December 31, 2014, the Company had open commitments of $103.3 million under such agreements which are expected to be funded by June 30, 2015. |
Condensed_Financial_Informatio
Condensed Financial Information of The Phoenix Companies, Inc and Other Supplementary Data | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data | Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data | |||||||||||
A summary of The Phoenix Companies, Inc. (parent company only) financial information is presented below. See Notes 9 and 16 to these consolidated financial statements for additional information regarding indebtedness and accrued pension and post-employment benefits, respectively. | ||||||||||||
Parent Company Financial Position: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
As restated | ||||||||||||
Assets | ||||||||||||
Available-for-sale debt securities, at fair value | $ | 5.1 | $ | 10.8 | ||||||||
Affiliate securities | 30 | 30 | ||||||||||
Short-term investments | 49.9 | 119.9 | ||||||||||
Fair value investments | 23.5 | 23.2 | ||||||||||
Cash and cash equivalents | 11.2 | 35.4 | ||||||||||
Investments in subsidiaries | 880.8 | 989.9 | ||||||||||
Advances to subsidiaries | — | 12.4 | ||||||||||
Deferred income taxes, net | — | — | ||||||||||
Other assets | 30.7 | 6.6 | ||||||||||
Total assets | $ | 1,031.20 | $ | 1,228.20 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Indebtedness (Note 9) | $ | 268.6 | $ | 268.6 | ||||||||
Accrued pension and post-employment benefits (Note 16) | 380 | 313.1 | ||||||||||
Due to subsidiaries | 7.3 | — | ||||||||||
Other liabilities | 48.7 | 57 | ||||||||||
Total liabilities | 704.6 | 638.7 | ||||||||||
Total stockholders’ equity | 326.6 | 589.5 | ||||||||||
Total liabilities and stockholders’ equity | $ | 1,031.20 | $ | 1,228.20 | ||||||||
Parent Company Results of Operations: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Revenues | ||||||||||||
Equity in undistributed income (loss) of subsidiaries | $ | (99.0 | ) | $ | 44.1 | $ | (149.7 | ) | ||||
Investment income | 4.5 | 1.2 | 0.8 | |||||||||
Net realized investment gains (losses) | 0.6 | 3.6 | 2 | |||||||||
Total revenues | (93.9 | ) | 48.9 | (146.9 | ) | |||||||
Interest expense | 20.4 | 20.4 | 20.4 | |||||||||
Other operating expenses | 102.6 | 70.7 | 10.2 | |||||||||
Total expenses | 123 | 91.1 | 30.6 | |||||||||
Income (loss) before income taxes | (216.9 | ) | (42.2 | ) | (177.5 | ) | ||||||
Income tax expense (benefit) | (3.7 | ) | (68.7 | ) | (12.0 | ) | ||||||
Income (loss) from continuing operations | (213.2 | ) | 26.5 | (165.5 | ) | |||||||
Income (loss) from discontinued operations of subsidiaries | — | (0.5 | ) | 0.5 | ||||||||
Net income (loss) | $ | (213.2 | ) | $ | 26 | $ | (165.0 | ) | ||||
Parent Company Cash Flows: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Operating Activities | ||||||||||||
Interest income received | $ | 3.7 | $ | 0.9 | $ | 1.2 | ||||||
Interest paid | (20.0 | ) | (20.0 | ) | (20.0 | ) | ||||||
Taxes paid | — | (2.2 | ) | (15.1 | ) | |||||||
Taxes received | — | 3.5 | 3.4 | |||||||||
Payments to/from subsidiaries | (113.4 | ) | 52.5 | 0.8 | ||||||||
Other operating activities, net | (13.8 | ) | (14.9 | ) | (0.6 | ) | ||||||
Cash provided by (used for) operating activities | (143.5 | ) | 19.8 | (30.3 | ) | |||||||
Purchases of available-for-sale debt securities | — | (30.0 | ) | (5.0 | ) | |||||||
Purchases of short-term investments | (589.4 | ) | (579.5 | ) | (264.8 | ) | ||||||
Sales, repayments and maturities of available-for-sale debt securities | 5 | 1 | 27.5 | |||||||||
Sales, repayments and maturities of short-term investments | 659.4 | 564.7 | 173.9 | |||||||||
Subsidiary loan payments received | 3.3 | 3 | 4 | |||||||||
Proceeds from the sale of subsidiary | — | — | 1 | |||||||||
Dividends received from subsidiaries | 56 | 74.2 | 71.8 | |||||||||
Capital contributions to subsidiaries | (15.0 | ) | (45.0 | ) | — | |||||||
Cash provided by (used for) investing activities | 119.3 | (11.6 | ) | 8.4 | ||||||||
Treasury stock acquired | — | — | (3.4 | ) | ||||||||
Cash provided by (used for) financing activities | — | — | (3.4 | ) | ||||||||
Change in cash and cash equivalents | (24.2 | ) | 8.2 | (25.3 | ) | |||||||
Cash and cash equivalents, beginning of period | 35.4 | 27.2 | 52.5 | |||||||||
Cash and cash equivalents, end of period | $ | 11.2 | $ | 35.4 | $ | 27.2 | ||||||
Other supplementary data related to investments, insurance information, reinsurance, and valuation and qualifying accounts are presented in various locations within the consolidated financial statements and related notes. | ||||||||||||
• | Investment information including the amortized cost and fair value of investments is provided in Note 8, Investing Activities, and Note 12, Derivative Instruments. The Company’s invested assets did not include related party investments as of December 31, 2014. | |||||||||||
• | The Company manages its business by segregating its operations into two reporting segments: Life and Annuity and Saybrus. All insurance information disclosed within the consolidated balance sheets, the consolidated statements of income and comprehensive income and Note 6, Deferred Policy Acquisition Costs, is applicable to the Life and Annuity segment. Unearned premiums included in policy liabilities and accruals were $84.8 million, $93.0 million and $102.2 million as of December 31, 2014, 2013 and 2012, respectively. Saybrus, the Company’s non-insurance segment, had operating expenses of $31.2 million, $23.3 million and $20.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Saybrus did not have any insurance information or investment income as of, and for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
• | Information related to reinsurance, including gross, ceded and assumed balances for premiums, policy benefits and life insurance inforce, is provided in Note 4, Reinsurance. | |||||||||||
• | Information about the valuation allowance established for certain deferred tax assets is provided in Note 14, Income Taxes. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Dividends | |
On March 19, 2015, Phoenix Life declared a $15.0 million dividend to Phoenix. | |
Late Filings | |
On February 6, 2015, we filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that our inability to file the 2014 Form 10-K on or before the prescribed due date and our expectation that it will be filed within the extension period afforded under Rule 12b-25 of the Securities Exchange Act of 1934, as amended, on or before March 31, 2015. | |
Restatement | |
Phoenix filed a Current Report on Form 8-K with the SEC on February 6, 2015 disclosing that Phoenix’s Audit Committee concluded that Phoenix’s previously issued audited consolidated financial statements for the year ended December 31, 2013 and unaudited interim consolidated financial statements for the three months ended December 31, 2013 included in Phoenix’s Annual Report on Form 10-K for the year ended December 31, 2013 and Phoenix’s previously issued unaudited interim consolidated financial statements for the three months ended June 30, 2014 included in Phoenix’s Quarterly Report on Form 10-Q for the period ended June 30, 2014 filed with the SEC should no longer be relied upon and should be restated because of certain material errors identified in such financial statements. In addition, as required by applicable accounting standards, Phoenix will adjust the financial statements for all known errors, some of which were already recorded and disclosed in prior SEC reports as out-of-period adjustments. |
Supplemental_Unaudited_Quarter
Supplemental Unaudited Quarterly Financial Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Supplemental Unaudited Quarterly Financial Information | Supplemental Unaudited Quarterly Financial Information | |||||||||||||||
The following tables reflect unaudited summarized quarterly financial results during the years ended December 31, 2014 and 2013. | ||||||||||||||||
Summarized Selected Quarterly Financial Data: | Quarter ended 2014 | |||||||||||||||
($ in millions, except per share amounts) | Mar 31, | June 30, | Sept 30, | Dec 31, | ||||||||||||
As revised | As restated | As revised | ||||||||||||||
Revenues | $ | 399 | $ | 413.1 | $ | 414.4 | $ | 440.4 | ||||||||
Benefits and expenses | $ | 431.4 | $ | 454.5 | $ | 434 | $ | 542.2 | ||||||||
Income tax expense (benefit) | $ | (4.8 | ) | $ | (19.6 | ) | $ | 2.6 | $ | 32.3 | ||||||
Income (loss) from continuing operations | $ | (27.6 | ) | $ | (21.8 | ) | $ | (22.2 | ) | $ | (134.1 | ) | ||||
Income (loss) from discontinued operations | $ | (0.6 | ) | $ | (0.6 | ) | $ | (0.3 | ) | $ | (2.0 | ) | ||||
Net income (loss) | $ | (28.2 | ) | $ | (22.4 | ) | $ | (22.5 | ) | $ | (136.1 | ) | ||||
Less: Net (income) loss attributable to noncontrolling interests | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | 4.2 | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (28.1 | ) | $ | (22.4 | ) | $ | (22.4 | ) | $ | (140.3 | ) | ||||
Net income (loss) attributable to The Phoenix Companies, Inc. per share: | ||||||||||||||||
Basic | $ | (4.89 | ) | $ | (3.90 | ) | $ | (3.90 | ) | $ | (24.40 | ) | ||||
Diluted | $ | (4.89 | ) | $ | (3.90 | ) | $ | (3.90 | ) | $ | (24.40 | ) | ||||
Summarized Selected Quarterly Financial Data: | Quarter ended 2013 | |||||||||||||||
($ in millions, except per share amounts) | Mar 31, | June 30, | Sept 30, | Dec 31, | ||||||||||||
As revised | As revised | As revised | As restated | |||||||||||||
Revenues | $ | 394.8 | $ | 419.2 | $ | 429.8 | $ | 463.8 | ||||||||
Benefits and expenses | $ | 459.8 | $ | 449.1 | $ | 438.9 | $ | 321.7 | ||||||||
Income tax expense (benefit) | $ | 4.2 | $ | (1.2 | ) | $ | 8.7 | $ | (3.2 | ) | ||||||
Income (loss) from continuing operations | $ | (69.2 | ) | $ | (28.7 | ) | $ | (17.8 | ) | $ | 145.3 | |||||
Income (loss) from discontinued operations | $ | (1.8 | ) | $ | (0.2 | ) | $ | 0.3 | $ | (1.2 | ) | |||||
Net income (loss) | $ | (71.0 | ) | $ | (28.9 | ) | $ | (17.5 | ) | $ | 144.1 | |||||
Less: Net income (loss) attributable to noncontrolling interests | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | 1 | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (70.9 | ) | $ | (28.8 | ) | $ | (17.4 | ) | $ | 143.1 | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. per share: | ||||||||||||||||
Basic | $ | (12.41 | ) | $ | (5.02 | ) | $ | (3.03 | ) | $ | 24.92 | |||||
Diluted | $ | (12.41 | ) | $ | (5.02 | ) | $ | (3.03 | ) | $ | 24.84 | |||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of March 31, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 12,002.10 | $ | — | $ | (81.4 | ) | [1] | $ | 11,920.70 | ||||||
Available-for-sale equity securities, at fair value | 64.1 | — | 79.1 | [1] | 143.2 | |||||||||||
Short-term investments | 571 | — | — | 571 | ||||||||||||
Limited partnerships and other investments | 569.5 | — | — | 569.5 | ||||||||||||
Policy loans, at unpaid principal balances | 2,353.70 | — | — | 2,353.70 | ||||||||||||
Derivative instruments | 172.7 | — | (12.7 | ) | 160 | |||||||||||
Fair value investments | 215.2 | — | — | 215.2 | ||||||||||||
Total investments | 15,948.30 | — | (15.0 | ) | 15,933.30 | |||||||||||
Cash and cash equivalents | 424.5 | — | — | 424.5 | ||||||||||||
Accrued investment income | 176 | — | — | 176 | ||||||||||||
Reinsurance recoverable | 616 | (4.3 | ) | (0.1 | ) | 611.6 | ||||||||||
Deferred policy acquisition costs | 892.4 | 7.8 | 6.7 | 906.9 | ||||||||||||
Deferred income taxes, net | 47.4 | — | (1.8 | ) | 45.6 | |||||||||||
Other assets | 278.8 | — | 20.5 | 299.3 | ||||||||||||
Discontinued operations assets | 41.4 | — | 4.8 | 46.2 | ||||||||||||
Separate account assets | 3,308.00 | — | — | 3,308.00 | ||||||||||||
Total assets | $ | 21,732.80 | $ | 3.5 | $ | 15.1 | $ | 21,751.40 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,425.80 | $ | (17.5 | ) | $ | (9.7 | ) | $ | 12,398.60 | ||||||
Policyholder deposit funds | 3,540.00 | — | 15.3 | 3,555.30 | ||||||||||||
Dividend obligations | 819.8 | — | (2.2 | ) | 817.6 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 309.4 | — | (2.8 | ) | 306.6 | |||||||||||
Other liabilities | 373 | — | 6.1 | 379.1 | ||||||||||||
Discontinued operations liabilities | 36.7 | — | 4.8 | 41.5 | ||||||||||||
Separate account liabilities | 3,308.00 | — | — | 3,308.00 | ||||||||||||
Total liabilities | 21,191.50 | (17.5 | ) | 11.5 | 21,185.50 | |||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.10 | — | — | 2,633.10 | ||||||||||||
Accumulated other comprehensive income (loss) | (195.4 | ) | 1.1 | 2 | (192.3 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,725.4 | ) | 19.9 | 1.6 | (1,703.9 | ) | ||||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 529.5 | 21 | 3.6 | 554.1 | ||||||||||||
Noncontrolling interests | 11.8 | — | — | 11.8 | ||||||||||||
Total stockholders’ equity | 541.3 | 21 | 3.6 | 565.9 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 21,732.80 | $ | 3.5 | $ | 15.1 | $ | 21,751.40 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $79.1 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 79.6 | $ | — | $ | — | $ | 79.6 | ||||||||
Fee income | 134.8 | — | — | 134.8 | ||||||||||||
Net investment income | 213.5 | — | (2.0 | ) | 211.5 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | — | — | — | — | ||||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (25.5 | ) | — | (1.2 | ) | (26.7 | ) | |||||||||
Net realized investment gains (losses) | (25.7 | ) | — | (1.2 | ) | (26.9 | ) | |||||||||
Total revenues | 402.2 | — | (3.2 | ) | 399 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 236 | (0.7 | ) | (5.0 | ) | 230.3 | ||||||||||
Policyholder dividends | 73.8 | — | (1.6 | ) | 72.2 | |||||||||||
Policy acquisition cost amortization | 22.4 | — | 2.2 | 24.6 | ||||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 97.9 | — | (0.7 | ) | 97.2 | |||||||||||
Total benefits and expenses | 437.2 | (0.7 | ) | (5.1 | ) | 431.4 | ||||||||||
Income (loss) from continuing operations before income taxes | (35.0 | ) | 0.7 | 1.9 | (32.4 | ) | ||||||||||
Income tax expense (benefit) | (3.6 | ) | — | (1.2 | ) | (4.8 | ) | |||||||||
Income (loss) from continuing operations | (31.4 | ) | 0.7 | 3.1 | (27.6 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (0.9 | ) | — | 0.3 | (0.6 | ) | ||||||||||
Net income (loss) | (32.3 | ) | 0.7 | 3.4 | (28.2 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (33.3 | ) | $ | 0.7 | $ | 4.5 | $ | (28.1 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended March 31, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (33.3 | ) | $ | 0.7 | $ | 4.5 | $ | (28.1 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) | (32.3 | ) | 0.7 | 3.4 | (28.2 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 16.9 | 0.8 | 6 | 23.7 | ||||||||||||
Net pension liability adjustment | 1.6 | — | 0.1 | 1.7 | ||||||||||||
Other comprehensive income (loss) before income taxes | 18.5 | 0.8 | 6.1 | 25.4 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 28.7 | — | 4 | 32.7 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 28.7 | — | 4 | 32.7 | ||||||||||||
Other comprehensive income (loss), net of income taxes | (10.2 | ) | 0.8 | 2.1 | (7.3 | ) | ||||||||||
Comprehensive income (loss) | (42.5 | ) | 1.5 | 5.5 | (35.5 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (43.5 | ) | $ | 1.5 | $ | 6.6 | $ | (35.4 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (5.47 | ) | $ | 0.12 | $ | 0.73 | $ | (4.79 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (5.47 | ) | $ | 0.12 | $ | 0.73 | $ | (4.79 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.16 | ) | $ | — | $ | 0.05 | $ | (0.10 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.16 | ) | $ | — | $ | 0.05 | $ | (0.10 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (5.80 | ) | $ | 0.12 | $ | 0.78 | $ | (4.89 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (5.80 | ) | $ | 0.12 | $ | 0.78 | $ | (4.89 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended March 31, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (33.3 | ) | $ | 5.2 | $ | (28.1 | ) | ||||||||
Net realized investment gains / losses | 25.7 | 1.2 | 26.9 | |||||||||||||
Policy acquisition costs deferred | (14.4 | ) | (0.2 | ) | (14.6 | ) | ||||||||||
Policy acquisition cost amortization | 22.4 | 2.2 | 24.6 | |||||||||||||
Amortization and depreciation | 1.5 | — | 1.5 | |||||||||||||
Interest credited | 35.6 | — | 35.6 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (23.8 | ) | 3.7 | (20.1 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (43.3 | ) | (0.7 | ) | (44.0 | ) | ||||||||||
Deferred income taxes, net | (6.1 | ) | (2.2 | ) | (8.3 | ) | ||||||||||
Reinsurance recoverable | (12.2 | ) | (0.7 | ) | (12.9 | ) | ||||||||||
Policy liabilities and accruals | (137.6 | ) | (5.0 | ) | (142.6 | ) | ||||||||||
Dividend obligations | 31.8 | (1.6 | ) | 30.2 | ||||||||||||
Pension and post-employment liabilities | (4.9 | ) | — | (4.9 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (5.6 | ) | (1.1 | ) | (6.7 | ) | ||||||||||
Other operating activities, net | 23.9 | (0.8 | ) | 23.1 | ||||||||||||
Cash provided by (used for) operating activities | (140.3 | ) | — | (140.3 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (338.5 | ) | 0.1 | (338.4 | ) | |||||||||||
Available-for-sale equity securities | (1.7 | ) | (0.1 | ) | (1.8 | ) | ||||||||||
Short-term investments | (649.3 | ) | — | (649.3 | ) | |||||||||||
Derivative instruments | (17.8 | ) | — | (17.8 | ) | |||||||||||
Fair value and other investments | (0.3 | ) | — | (0.3 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 338.8 | (0.1 | ) | 338.7 | ||||||||||||
Available-for-sale equity securities | 3 | 0.1 | 3.1 | |||||||||||||
Short-term investments | 489.8 | — | 489.8 | |||||||||||||
Derivative instruments | 42.1 | — | 42.1 | |||||||||||||
Fair value and other investments | 2.8 | — | 2.8 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (18.2 | ) | — | (18.2 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 30.3 | — | 30.3 | |||||||||||||
Policy loans, net | 32 | — | 32 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (2.0 | ) | — | (2.0 | ) | |||||||||||
Cash provided by (used for) investing activities | (89.0 | ) | — | (89.0 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended March 31, 2014 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 361.3 | — | 361.3 | |||||||||||||
Policyholder withdrawals | (321.5 | ) | — | (321.5 | ) | |||||||||||
Net transfers (to) from separate accounts | 118.2 | — | 118.2 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.1 | — | 0.1 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 158.1 | — | 158.1 | |||||||||||||
Change in cash and cash equivalents | (71.2 | ) | — | (71.2 | ) | |||||||||||
Change in cash included in discontinued operations assets | (0.7 | ) | — | (0.7 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 496.4 | — | 496.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 424.5 | $ | — | $ | 424.5 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | — | $ | — | $ | — | ||||||||||
Interest expense on indebtedness paid | $ | (4.7 | ) | $ | — | $ | (4.7 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 13 | $ | — | $ | 13 | ||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended March 31, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | — | — | — | |||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
Other comprehensive income (loss) | (10.2 | ) | 2.9 | (7.3 | ) | |||||||||||
Balance, end of period | $ | (195.4 | ) | $ | 3.1 | $ | (192.3 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
Net income (loss) | (33.3 | ) | 5.2 | (28.1 | ) | |||||||||||
Balance, end of period | $ | (1,725.4 | ) | $ | 21.5 | $ | (1,703.9 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (43.5 | ) | 8.1 | (35.4 | ) | |||||||||||
Balance, end of period | $ | 529.5 | $ | 24.6 | $ | 554.1 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
Change in noncontrolling interests | 1.1 | (1.1 | ) | — | ||||||||||||
Balance, end of period | $ | 11.8 | $ | — | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
Change in stockholders’ equity | (42.4 | ) | 7 | (35.4 | ) | |||||||||||
Balance, end of period | $ | 541.3 | $ | 24.6 | $ | 565.9 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 12,454.10 | $ | — | $ | (83.6 | ) | [1] | $ | 12,370.50 | ||||||
Available-for-sale equity securities, at fair value | 68.5 | — | 80.6 | [1] | 149.1 | |||||||||||
Short-term investments | 504.8 | — | — | 504.8 | ||||||||||||
Limited partnerships and other investments | 557.9 | — | — | 557.9 | ||||||||||||
Policy loans, at unpaid principal balances | 2,325.40 | — | — | 2,325.40 | ||||||||||||
Derivative instruments | 175 | — | (12.5 | ) | 162.5 | |||||||||||
Fair value investments | 207.4 | — | — | 207.4 | ||||||||||||
Total investments | 16,293.10 | — | (15.5 | ) | 16,277.60 | |||||||||||
Cash and cash equivalents | 330.2 | — | — | 330.2 | ||||||||||||
Accrued investment income | 185.7 | — | — | 185.7 | ||||||||||||
Reinsurance recoverable | 594.7 | (3.8 | ) | 1.5 | 592.4 | |||||||||||
Deferred policy acquisition costs | 869 | 7.7 | 5.1 | 881.8 | ||||||||||||
Deferred income taxes, net | 29.4 | — | 0.1 | 29.5 | ||||||||||||
Other assets | 279 | — | 22.1 | 301.1 | ||||||||||||
Discontinued operations assets | 39.9 | — | 4.8 | 44.7 | ||||||||||||
Separate account assets | 3,285.40 | — | — | 3,285.40 | ||||||||||||
Total assets | $ | 21,906.40 | $ | 3.9 | $ | 18.1 | $ | 21,928.40 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,429.00 | $ | (18.4 | ) | $ | (0.6 | ) | $ | 12,410.00 | ||||||
Policyholder deposit funds | 3,658.70 | — | 14.7 | 3,673.40 | ||||||||||||
Dividend obligations | 895.6 | — | (0.9 | ) | 894.7 | |||||||||||
Indebtedness | 378.9 | — | — | 378.9 | ||||||||||||
Pension and post-employment liabilities | 302.5 | — | (2.8 | ) | 299.7 | |||||||||||
Other liabilities | 376.4 | — | 6.7 | 383.1 | ||||||||||||
Discontinued operations liabilities | 35.1 | — | 4.8 | 39.9 | ||||||||||||
Separate account liabilities | 3,285.40 | — | — | 3,285.40 | ||||||||||||
Total liabilities | 21,361.60 | (18.4 | ) | 21.9 | 21,365.10 | |||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,632.70 | — | — | 2,632.70 | ||||||||||||
Accumulated other comprehensive income (loss) | (177.2 | ) | 1.2 | 3.9 | (172.1 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,739.7 | ) | 21.1 | (7.7 | ) | (1,726.3 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 533 | 22.3 | (3.8 | ) | 551.5 | |||||||||||
Noncontrolling interests | 11.8 | — | — | 11.8 | ||||||||||||
Total stockholders’ equity | 544.8 | 22.3 | (3.8 | ) | 563.3 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,906.40 | $ | 3.9 | $ | 18.1 | $ | 21,928.40 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $80.6 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended June 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 83.2 | $ | — | $ | — | $ | 83.2 | ||||||||
Fee income | 134.2 | — | — | 134.2 | ||||||||||||
Net investment income | 195.3 | (3.8 | ) | 191.5 | ||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | — | — | — | — | ||||||||||||
Net OTTI losses recognized in earnings | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 5.1 | 0.1 | 5.2 | |||||||||||||
Net realized investment gains (losses) | 4.1 | — | 0.1 | 4.2 | ||||||||||||
Total revenues | 416.8 | — | (3.7 | ) | 413.1 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 298.5 | (1.1 | ) | 3.9 | 301.3 | |||||||||||
Policyholder dividends | 42.4 | — | 0.2 | 42.6 | ||||||||||||
Policy acquisition cost amortization | 17.4 | (0.2 | ) | 1.9 | 19.1 | |||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 85.5 | — | (1.1 | ) | 84.4 | |||||||||||
Total benefits and expenses | 450.9 | (1.3 | ) | 4.9 | 454.5 | |||||||||||
Income (loss) from continuing operations before income taxes | (34.1 | ) | 1.3 | (8.6 | ) | (41.4 | ) | |||||||||
Income tax expense (benefit) | (20.4 | ) | — | 0.8 | (19.6 | ) | ||||||||||
Income (loss) from continuing operations | (13.7 | ) | 1.3 | (9.4 | ) | (21.8 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (0.6 | ) | — | — | (0.6 | ) | ||||||||||
Net income (loss) | (14.3 | ) | 1.3 | (9.4 | ) | (22.4 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (14.3 | ) | $ | 1.3 | $ | (9.4 | ) | $ | (22.4 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended June 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (14.3 | ) | $ | 1.3 | $ | (9.4 | ) | $ | (22.4 | ) | |||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income (loss) | (14.3 | ) | 1.3 | (9.4 | ) | (22.4 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 52.8 | 0.1 | (1.0 | ) | 51.9 | |||||||||||
Net pension liability adjustment | 1.8 | — | (0.1 | ) | 1.7 | |||||||||||
Other comprehensive income (loss) before income taxes | 54.6 | 0.1 | (1.1 | ) | 53.6 | |||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 36.4 | — | (3.0 | ) | 33.4 | |||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 36.4 | — | (3.0 | ) | 33.4 | |||||||||||
Other comprehensive income (loss), net of income taxes | 18.2 | 0.1 | 1.9 | 20.2 | ||||||||||||
Comprehensive income (loss) | 3.9 | 1.4 | (7.5 | ) | (2.2 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | 3.9 | $ | 1.4 | $ | (7.5 | ) | $ | (2.2 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (2.38 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.80 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (2.38 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.80 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (2.49 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.90 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (2.49 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.90 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,749 | 5,749 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,749 | 5,749 | ||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the six months ended June 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 162.8 | $ | — | $ | — | $ | 162.8 | ||||||||
Fee income | 269 | — | — | 269 | ||||||||||||
Net investment income | 408.8 | — | (5.8 | ) | 403 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (1.2 | ) | — | — | (1.2 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (20.4 | ) | — | (1.1 | ) | (21.5 | ) | |||||||||
Net realized investment gains (losses) | (21.6 | ) | — | (1.1 | ) | (22.7 | ) | |||||||||
Total revenues | 819 | — | (6.9 | ) | 812.1 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 534.5 | (1.8 | ) | (1.1 | ) | 531.6 | ||||||||||
Policyholder dividends | 116.2 | — | (1.4 | ) | 114.8 | |||||||||||
Policy acquisition cost amortization | 39.8 | (0.2 | ) | 4.1 | 43.7 | |||||||||||
Interest expense on indebtedness | 14.2 | — | — | 14.2 | ||||||||||||
Other operating expenses | 183.4 | — | (1.8 | ) | 181.6 | |||||||||||
Total benefits and expenses | 888.1 | (2.0 | ) | (0.2 | ) | 885.9 | ||||||||||
Income (loss) from continuing operations before income taxes | (69.1 | ) | 2 | (6.7 | ) | (73.8 | ) | |||||||||
Income tax expense (benefit) | (24.0 | ) | — | (0.4 | ) | (24.4 | ) | |||||||||
Income (loss) from continuing operations | (45.1 | ) | 2 | (6.3 | ) | (49.4 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (1.5 | ) | — | 0.3 | (1.2 | ) | ||||||||||
Net income (loss) | (46.6 | ) | 2 | (6.0 | ) | (50.6 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (47.6 | ) | $ | 2 | $ | (4.9 | ) | $ | (50.5 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the six months ended June 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (47.6 | ) | $ | 2 | $ | (4.9 | ) | $ | (50.5 | ) | |||||
Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) | (46.6 | ) | 2 | (6.0 | ) | (50.6 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 69.7 | 0.9 | 5 | 75.6 | ||||||||||||
Net pension liability adjustment | 3.4 | — | — | 3.4 | ||||||||||||
Other comprehensive income (loss) before income taxes | 73.1 | 0.9 | 5 | 79 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 65.1 | — | 1 | 66.1 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 65.1 | — | 1 | 66.1 | ||||||||||||
Other comprehensive income (loss), net of income taxes | 8 | 0.9 | 4 | 12.9 | ||||||||||||
Comprehensive income (loss) | (38.6 | ) | 2.9 | (2.0 | ) | (37.7 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (39.6 | ) | $ | 2.9 | $ | (0.9 | ) | $ | (37.6 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (7.85 | ) | $ | 0.35 | $ | (0.90 | ) | $ | (8.58 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (7.85 | ) | $ | 0.35 | $ | (0.90 | ) | $ | (8.58 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.26 | ) | $ | — | $ | 0.05 | $ | (0.21 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.26 | ) | $ | — | $ | 0.05 | $ | (0.21 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (8.29 | ) | $ | 0.35 | $ | (0.85 | ) | $ | (8.79 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (8.29 | ) | $ | 0.35 | $ | (0.85 | ) | $ | (8.79 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,745 | 5,745 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,745 | 5,745 | ||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended June 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (47.6 | ) | $ | (2.9 | ) | $ | (50.5 | ) | |||||||
Net realized investment gains / losses | 21.6 | 1.1 | 22.7 | |||||||||||||
Policy acquisition costs deferred | (31.7 | ) | (1.5 | ) | (33.2 | ) | ||||||||||
Policy acquisition cost amortization | 39.8 | 3.9 | 43.7 | |||||||||||||
Amortization and depreciation | 3 | — | 3 | |||||||||||||
Interest credited | 70.2 | — | 70.2 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (29.8 | ) | 3.7 | (26.1 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (81.1 | ) | 2.1 | (79.0 | ) | |||||||||||
Deferred income taxes, net | (24.6 | ) | (1.0 | ) | (25.6 | ) | ||||||||||
Reinsurance recoverable | 8.6 | (2.8 | ) | 5.8 | ||||||||||||
Policy liabilities and accruals | (237.4 | ) | (0.1 | ) | (237.5 | ) | ||||||||||
Dividend obligations | 30.9 | (1.4 | ) | 29.5 | ||||||||||||
Pension and post-employment liabilities | (10.0 | ) | — | (10.0 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (7.7 | ) | (1.1 | ) | (8.8 | ) | ||||||||||
Other operating activities, net | 14.6 | — | 14.6 | |||||||||||||
Cash provided by (used for) operating activities | (281.2 | ) | — | (281.2 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (871.9 | ) | 0.5 | (871.4 | ) | |||||||||||
Available-for-sale equity securities | (2.2 | ) | (0.5 | ) | (2.7 | ) | ||||||||||
Short-term investments | (1,058.9 | ) | — | (1,058.9 | ) | |||||||||||
Derivative instruments | (33.0 | ) | — | (33.0 | ) | |||||||||||
Fair value and other investments | (0.6 | ) | — | (0.6 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 662.8 | (0.1 | ) | 662.7 | ||||||||||||
Available-for-sale equity securities | 4.3 | 0.1 | 4.4 | |||||||||||||
Short-term investments | 915.6 | — | 915.6 | |||||||||||||
Derivative instruments | 53.6 | — | 53.6 | |||||||||||||
Fair value and other investments | 14.1 | — | 14.1 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (34.0 | ) | — | (34.0 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 64 | — | 64 | |||||||||||||
Policy loans, net | 78 | — | 78 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (4.4 | ) | — | (4.4 | ) | |||||||||||
Cash provided by (used for) investing activities | (212.6 | ) | — | (212.6 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended June 30, 2014 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 713 | — | 713 | |||||||||||||
Policyholder withdrawals | (611.9 | ) | — | (611.9 | ) | |||||||||||
Net transfers (to) from separate accounts | 227.7 | — | 227.7 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.2 | — | 0.2 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 329 | — | 329 | |||||||||||||
Change in cash and cash equivalents | (164.8 | ) | — | (164.8 | ) | |||||||||||
Change in cash included in discontinued operations assets | (1.4 | ) | — | (1.4 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 496.4 | — | 496.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 330.2 | $ | — | $ | 330.2 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | — | $ | — | $ | — | ||||||||||
Interest expense on indebtedness paid | $ | (13.9 | ) | $ | — | $ | (13.9 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 62.4 | $ | — | $ | 62.4 | ||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended June 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.4 | ) | — | (0.4 | ) | |||||||||||
Balance, end of period | $ | 2,632.70 | $ | — | $ | 2,632.70 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
Other comprehensive income (loss) | 8 | 4.9 | 12.9 | |||||||||||||
Balance, end of period | $ | (177.2 | ) | $ | 5.1 | $ | (172.1 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
Net income (loss) | (47.6 | ) | (2.9 | ) | (50.5 | ) | ||||||||||
Balance, end of period | $ | (1,739.7 | ) | $ | 13.4 | $ | (1,726.3 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (40.0 | ) | 2 | (38.0 | ) | |||||||||||
Balance, end of period | $ | 533 | $ | 18.5 | $ | 551.5 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
Change in noncontrolling interests | 1.1 | (1.1 | ) | — | ||||||||||||
Balance, end of period | $ | 11.8 | $ | — | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
Change in stockholders’ equity | (38.9 | ) | 0.9 | (38.0 | ) | |||||||||||
Balance, end of period | $ | 544.8 | $ | 18.5 | $ | 563.3 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of September 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 12,706.60 | $ | — | $ | (119.1 | ) | [1] | $ | 12,587.50 | ||||||
Available-for-sale equity securities, at fair value | 75.4 | — | 114.5 | [1] | 189.9 | |||||||||||
Short-term investments | 90.4 | — | — | 90.4 | ||||||||||||
Limited partnerships and other investments | 559.9 | — | 0.8 | 560.7 | ||||||||||||
Policy loans, at unpaid principal balances | 2,324.10 | — | — | 2,324.10 | ||||||||||||
Derivative instruments | 149.9 | — | (11.7 | ) | 138.2 | |||||||||||
Fair value investments | 206.5 | — | 0.7 | 207.2 | ||||||||||||
Total investments | 16,112.80 | — | (14.8 | ) | 16,098.00 | |||||||||||
Cash and cash equivalents | 443.2 | — | — | 443.2 | ||||||||||||
Accrued investment income | 214.2 | — | — | 214.2 | ||||||||||||
Reinsurance recoverable | 575.6 | (3.9 | ) | 1.2 | 572.9 | |||||||||||
Deferred policy acquisition costs | 874.6 | 7.2 | 2.1 | 883.9 | ||||||||||||
Deferred income taxes, net | 31.8 | — | 0.2 | 32 | ||||||||||||
Other assets | 300.7 | — | 15.9 | 316.6 | ||||||||||||
Discontinued operations assets | 38.8 | — | 4.8 | 43.6 | ||||||||||||
Separate account assets | 3,089.10 | — | — | 3,089.10 | ||||||||||||
Total assets | $ | 21,680.80 | $ | 3.3 | $ | 9.4 | $ | 21,693.50 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,384.20 | $ | (18.9 | ) | $ | (1.8 | ) | $ | 12,363.50 | ||||||
Policyholder deposit funds | 3,819.50 | — | 17.1 | 3,836.60 | ||||||||||||
Dividend obligations | 876.1 | — | (1.2 | ) | 874.9 | |||||||||||
Indebtedness | 378.9 | — | (0.1 | ) | 378.8 | |||||||||||
Pension and post-employment liabilities | 295.5 | — | (2.8 | ) | 292.7 | |||||||||||
Other liabilities | 282.6 | — | 2.8 | 285.4 | ||||||||||||
Discontinued operations liabilities | 34 | — | 4.8 | 38.8 | ||||||||||||
Separate account liabilities | 3,089.10 | — | — | 3,089.10 | ||||||||||||
Total liabilities | 21,159.90 | (18.9 | ) | 18.8 | 21,159.80 | |||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,632.70 | — | — | 2,632.70 | ||||||||||||
Accumulated other comprehensive income (loss) | (182.9 | ) | 0.7 | 2.9 | (179.3 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,757.9 | ) | 21.5 | (12.3 | ) | (1,748.7 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 509.1 | 22.2 | (9.4 | ) | 521.9 | |||||||||||
Noncontrolling interests | 11.8 | — | — | 11.8 | ||||||||||||
Total stockholders’ equity | 520.9 | 22.2 | (9.4 | ) | 533.7 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,680.80 | $ | 3.3 | $ | 9.4 | $ | 21,693.50 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $116.0 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 78.1 | $ | — | $ | — | $ | 78.1 | ||||||||
Fee income | 135.2 | — | — | 135.2 | ||||||||||||
Net investment income | 204.9 | — | — | 204.9 | ||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (3.7 | ) | — | — | (3.7 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (3.9 | ) | — | — | (3.9 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 1.8 | — | (1.7 | ) | 0.1 | |||||||||||
Net realized investment gains (losses) | (2.1 | ) | — | (1.7 | ) | (3.8 | ) | |||||||||
Total revenues | 416.1 | — | (1.7 | ) | 414.4 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 265.4 | (0.7 | ) | (1.1 | ) | 263.6 | ||||||||||
Policyholder dividends | 56.7 | — | 0.3 | 57 | ||||||||||||
Policy acquisition cost amortization | 24.9 | 0.3 | 4.2 | 29.4 | ||||||||||||
Interest expense on indebtedness | 7 | — | — | 7 | ||||||||||||
Other operating expenses | 78.8 | — | (1.8 | ) | 77 | |||||||||||
Total benefits and expenses | 432.8 | (0.4 | ) | 1.6 | 434 | |||||||||||
Income (loss) from continuing operations before income taxes | (16.7 | ) | 0.4 | (3.3 | ) | (19.6 | ) | |||||||||
Income tax expense (benefit) | 1.3 | — | 1.3 | 2.6 | ||||||||||||
Income (loss) from continuing operations | (18.0 | ) | 0.4 | (4.6 | ) | (22.2 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Net income (loss) | (18.3 | ) | 0.4 | (4.6 | ) | (22.5 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (18.2 | ) | $ | 0.4 | $ | (4.6 | ) | $ | (22.4 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended September 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (18.2 | ) | $ | 0.4 | $ | (4.6 | ) | $ | (22.4 | ) | |||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (18.3 | ) | 0.4 | (4.6 | ) | (22.5 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | (13.7 | ) | (0.5 | ) | (0.2 | ) | (14.4 | ) | ||||||||
Net pension liability adjustment | 1.7 | — | — | 1.7 | ||||||||||||
Other comprehensive income (loss) before income taxes | (12.0 | ) | (0.5 | ) | (0.2 | ) | (12.7 | ) | ||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | (6.3 | ) | — | 0.8 | (5.5 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (6.3 | ) | — | 0.8 | (5.5 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (5.7 | ) | (0.5 | ) | (1.0 | ) | (7.2 | ) | ||||||||
Comprehensive income (loss) | (24.0 | ) | (0.1 | ) | (5.6 | ) | (29.7 | ) | ||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (23.9 | ) | $ | (0.1 | ) | $ | (5.6 | ) | $ | (29.6 | ) | ||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (3.13 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.85 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (3.13 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.85 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (3.17 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.90 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (3.17 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.90 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,750 | 5,750 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,750 | 5,750 | ||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 240.9 | $ | — | $ | — | $ | 240.9 | ||||||||
Fee income | 404.2 | — | — | 404.2 | ||||||||||||
Net investment income | 613.7 | — | (5.8 | ) | 607.9 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (4.7 | ) | — | — | (4.7 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.4 | ) | — | — | (0.4 | ) | ||||||||||
Net OTTI losses recognized in earnings | (5.1 | ) | — | — | (5.1 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (18.6 | ) | — | (2.8 | ) | (21.4 | ) | |||||||||
Net realized investment gains (losses) | (23.7 | ) | — | (2.8 | ) | (26.5 | ) | |||||||||
Total revenues | 1,235.10 | — | (8.6 | ) | 1,226.50 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 799.9 | (2.5 | ) | (2.2 | ) | 795.2 | ||||||||||
Policyholder dividends | 172.9 | — | (1.1 | ) | 171.8 | |||||||||||
Policy acquisition cost amortization | 64.7 | 0.1 | 8.3 | 73.1 | ||||||||||||
Interest expense on indebtedness | 21.2 | — | — | 21.2 | ||||||||||||
Other operating expenses | 262.2 | — | (3.6 | ) | 258.6 | |||||||||||
Total benefits and expenses | 1,320.90 | (2.4 | ) | 1.4 | 1,319.90 | |||||||||||
Income (loss) from continuing operations before income taxes | (85.8 | ) | 2.4 | (10.0 | ) | (93.4 | ) | |||||||||
Income tax expense (benefit) | (22.7 | ) | — | 0.9 | (21.8 | ) | ||||||||||
Income (loss) from continuing operations | (63.1 | ) | 2.4 | (10.9 | ) | (71.6 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (1.8 | ) | — | 0.3 | (1.5 | ) | ||||||||||
Net income (loss) | (64.9 | ) | 2.4 | (10.6 | ) | (73.1 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.9 | — | (1.1 | ) | (0.2 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (65.8 | ) | $ | 2.4 | $ | (9.5 | ) | $ | (72.9 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the nine months ended September 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (65.8 | ) | $ | 2.4 | $ | (9.5 | ) | $ | (72.9 | ) | |||||
Net income (loss) attributable to noncontrolling interests | 0.9 | — | (1.1 | ) | (0.2 | ) | ||||||||||
Net income (loss) | (64.9 | ) | 2.4 | (10.6 | ) | (73.1 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 56 | 0.4 | 4.8 | 61.2 | ||||||||||||
Net pension liability adjustment | 5.1 | — | — | 5.1 | ||||||||||||
Other comprehensive income (loss) before income taxes | 61.1 | 0.4 | 4.8 | 66.3 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 58.8 | — | 1.8 | 60.6 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 58.8 | — | 1.8 | 60.6 | ||||||||||||
Other comprehensive income (loss), net of income taxes | 2.3 | 0.4 | 3 | 5.7 | ||||||||||||
Comprehensive income (loss) | (62.6 | ) | 2.8 | (7.6 | ) | (67.4 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.9 | — | (1.1 | ) | (0.2 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (63.5 | ) | $ | 2.8 | $ | (6.5 | ) | $ | (67.2 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (10.98 | ) | $ | 0.42 | $ | (1.70 | ) | $ | (12.42 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (10.98 | ) | $ | 0.42 | $ | (1.70 | ) | $ | (12.42 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.31 | ) | $ | — | $ | 0.05 | $ | (0.26 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.31 | ) | $ | — | $ | 0.05 | $ | (0.26 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (11.45 | ) | $ | 0.42 | $ | (1.65 | ) | $ | (12.68 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (11.45 | ) | $ | 0.42 | $ | (1.65 | ) | $ | (12.68 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,747 | 5,747 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,747 | 5,747 | ||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended September 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (65.8 | ) | $ | (7.1 | ) | $ | (72.9 | ) | |||||||
Net realized investment gains / losses | 23.7 | 2.8 | 26.5 | |||||||||||||
Policy acquisition costs deferred | (52.3 | ) | (2.6 | ) | (54.9 | ) | ||||||||||
Policy acquisition cost amortization | 64.7 | 8.4 | 73.1 | |||||||||||||
Amortization and depreciation | 4.5 | — | 4.5 | |||||||||||||
Interest credited | 113.4 | — | 113.4 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (48.1 | ) | 3.7 | (44.4 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (134.0 | ) | 2.1 | (131.9 | ) | |||||||||||
Deferred income taxes, net | (20.6 | ) | (1.9 | ) | (22.5 | ) | ||||||||||
Reinsurance recoverable | 28.7 | (2.5 | ) | 26.2 | ||||||||||||
Policy liabilities and accruals | (365.1 | ) | (2.2 | ) | (367.3 | ) | ||||||||||
Dividend obligations | 47.5 | (1.0 | ) | 46.5 | ||||||||||||
Pension and post-employment liabilities | (15.3 | ) | — | (15.3 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (8.6 | ) | (1.1 | ) | (9.7 | ) | ||||||||||
Other operating activities, net | 4.2 | (2.0 | ) | 2.2 | ||||||||||||
Cash provided by (used for) operating activities | (423.1 | ) | (3.4 | ) | (426.5 | ) | ||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (1,798.4 | ) | 44.2 | [1] | (1,754.2 | ) | ||||||||||
Available-for-sale equity securities | (7.9 | ) | (44.2 | ) | [1] | (52.1 | ) | |||||||||
Short-term investments | (1,584.6 | ) | — | (1,584.6 | ) | |||||||||||
Derivative instruments | (51.3 | ) | — | (51.3 | ) | |||||||||||
Fair value and other investments | (0.7 | ) | — | (0.7 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 1,194.50 | (6.8 | ) | [1] | 1,187.70 | |||||||||||
Available-for-sale equity securities | 10.1 | 6.8 | [1] | 16.9 | ||||||||||||
Short-term investments | 1,856.10 | — | 1,856.10 | |||||||||||||
Derivative instruments | 73.5 | — | 73.5 | |||||||||||||
Fair value and other investments | 16.7 | — | 16.7 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (58.0 | ) | — | (58.0 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 104.5 | — | 104.5 | |||||||||||||
Policy loans, net | 91 | — | 91 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (7.7 | ) | — | (7.7 | ) | |||||||||||
Cash provided by (used for) investing activities | (162.2 | ) | — | (162.2 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended September 30, 2014 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 1,080.90 | 18.7 | 1,099.60 | |||||||||||||
Policyholder withdrawals | (878.3 | ) | (15.3 | ) | (893.6 | ) | ||||||||||
Net transfers (to) from separate accounts | 330.6 | — | 330.6 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.1 | — | 0.1 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 533.3 | 3.4 | 536.7 | |||||||||||||
Change in cash and cash equivalents | (52.0 | ) | — | (52.0 | ) | |||||||||||
Change in cash included in discontinued operations assets | (1.2 | ) | — | (1.2 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 496.4 | — | 496.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 443.2 | $ | — | $ | 443.2 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | — | $ | — | $ | — | ||||||||||
Interest expense on indebtedness paid | $ | (18.6 | ) | $ | — | $ | (18.6 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 62.4 | $ | — | $ | 62.4 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended September 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.4 | ) | — | (0.4 | ) | |||||||||||
Balance, end of period | $ | 2,632.70 | $ | — | $ | 2,632.70 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
Other comprehensive income (loss) | 2.3 | 3.4 | 5.7 | |||||||||||||
Balance, end of period | $ | (182.9 | ) | $ | 3.6 | $ | (179.3 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
Net income (loss) | (65.8 | ) | (7.1 | ) | (72.9 | ) | ||||||||||
Balance, end of period | $ | (1,757.9 | ) | $ | 9.2 | $ | (1,748.7 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (63.9 | ) | (3.7 | ) | (67.6 | ) | ||||||||||
Balance, end of period | $ | 509.1 | $ | 12.8 | $ | 521.9 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
Change in noncontrolling interests | 1.1 | (1.1 | ) | — | ||||||||||||
Balance, end of period | $ | 11.8 | $ | — | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
Change in stockholders’ equity | (62.8 | ) | (4.8 | ) | (67.6 | ) | ||||||||||
Balance, end of period | $ | 520.9 | $ | 12.8 | $ | 533.7 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of March 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,881.10 | $ | — | $ | (64.5 | ) | [1] | $ | 11,816.60 | ||||||
Available-for-sale equity securities, at fair value | 34.6 | — | 63.3 | [1] | 97.9 | |||||||||||
Short-term investments | 699.5 | — | — | 699.5 | ||||||||||||
Limited partnerships and other investments | 563.4 | — | — | 563.4 | ||||||||||||
Policy loans, at unpaid principal balances | 2,340.10 | — | — | 2,340.10 | ||||||||||||
Derivative instruments | 194.4 | — | (12.8 | ) | 181.6 | |||||||||||
Fair value investments | 215.2 | — | — | 215.2 | ||||||||||||
Total investments | 15,928.30 | — | (14.0 | ) | 15,914.30 | |||||||||||
Cash and cash equivalents | 295.2 | — | — | 295.2 | ||||||||||||
Accrued investment income | 176.1 | — | — | 176.1 | ||||||||||||
Reinsurance recoverable | 594.4 | — | (0.9 | ) | 593.5 | |||||||||||
Deferred policy acquisition costs | 881.5 | — | (10.9 | ) | 870.6 | |||||||||||
Deferred income taxes, net | 41.5 | — | — | 41.5 | ||||||||||||
Other assets [2] | 319.1 | — | 20.3 | 339.4 | ||||||||||||
Discontinued operations assets | 48.4 | — | 4.8 | 53.2 | ||||||||||||
Separate account assets | 3,406.70 | — | — | 3,406.70 | ||||||||||||
Total assets | $ | 21,691.20 | $ | — | $ | (0.7 | ) | $ | 21,690.50 | |||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,653.80 | $ | — | $ | (12.1 | ) | $ | 12,641.70 | |||||||
Policyholder deposit funds | 3,153.80 | — | 6.1 | 3,159.90 | ||||||||||||
Dividend obligations | 943.8 | — | (1.5 | ) | 942.3 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 424.7 | — | — | 424.7 | ||||||||||||
Other liabilities | 256.1 | — | 6.1 | 262.2 | ||||||||||||
Discontinued operations liabilities | 42.9 | — | 4.7 | 47.6 | ||||||||||||
Separate account liabilities | 3,406.70 | — | — | 3,406.70 | ||||||||||||
Total liabilities | 21,260.60 | — | 3.3 | 21,263.90 | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,632.90 | — | — | 2,632.90 | ||||||||||||
Accumulated other comprehensive income (loss) | (260.8 | ) | — | 2.8 | (258.0 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,765.9 | ) | — | (6.8 | ) | (1,772.7 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 423.4 | — | (4.0 | ) | 419.4 | |||||||||||
Noncontrolling interests | 7.2 | — | — | 7.2 | ||||||||||||
Total stockholders’ equity | 430.6 | — | (4.0 | ) | 426.6 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,691.20 | $ | — | $ | (0.7 | ) | $ | 21,690.50 | |||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $63.4 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
For the three months ended March 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 82.7 | $ | — | $ | — | $ | 82.7 | ||||||||
Fee income | 136.3 | — | — | 136.3 | ||||||||||||
Net investment income | 191.1 | — | (0.7 | ) | 190.4 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (0.9 | ) | — | 0.4 | (0.5 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (1.7 | ) | — | — | (1.7 | ) | ||||||||||
Net OTTI losses recognized in earnings | (2.6 | ) | — | 0.4 | (2.2 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (13.3 | ) | — | 0.9 | (12.4 | ) | ||||||||||
Net realized investment gains (losses) | (15.9 | ) | — | 1.3 | (14.6 | ) | ||||||||||
Total revenues | 394.2 | — | 0.6 | 394.8 | ||||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 318.8 | — | (48.2 | ) | [1] | 270.6 | ||||||||||
Policyholder dividends | 4.4 | — | 44.9 | [1] | 49.3 | |||||||||||
Policy acquisition cost amortization | 45.3 | — | 4.3 | 49.6 | ||||||||||||
Interest expense on indebtedness | 7.7 | — | (0.6 | ) | 7.1 | |||||||||||
Other operating expenses | 80.8 | — | 2.4 | 83.2 | ||||||||||||
Total benefits and expenses | 457 | — | 2.8 | 459.8 | ||||||||||||
Income (loss) from continuing operations before income taxes | (62.8 | ) | — | (2.2 | ) | (65.0 | ) | |||||||||
Income tax expense (benefit) | 4.2 | — | — | 4.2 | ||||||||||||
Income (loss) from continuing operations | (67.0 | ) | — | (2.2 | ) | (69.2 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (1.8 | ) | — | — | (1.8 | ) | ||||||||||
Net income (loss) | (68.8 | ) | — | (2.2 | ) | (71.0 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (68.7 | ) | $ | — | $ | (2.2 | ) | $ | (70.9 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended March 31, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (68.7 | ) | $ | — | $ | (2.2 | ) | $ | (70.9 | ) | |||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (68.8 | ) | — | (2.2 | ) | (71.0 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (7.5 | ) | — | (1.5 | ) | (9.0 | ) | |||||||||
Net pension liability adjustment | 3.8 | — | (1.2 | ) | 2.6 | |||||||||||
Other comprehensive income (loss) before income taxes | (3.7 | ) | — | (2.7 | ) | (6.4 | ) | |||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | 7.8 | — | — | 7.8 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 7.8 | — | — | 7.8 | ||||||||||||
Other comprehensive income (loss), net of income taxes | (11.5 | ) | — | (2.7 | ) | (14.2 | ) | |||||||||
Comprehensive income (loss) | (80.3 | ) | — | (4.9 | ) | (85.2 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (80.2 | ) | $ | — | $ | (4.9 | ) | $ | (85.1 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (11.72 | ) | $ | — | $ | (0.38 | ) | $ | (12.10 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (11.72 | ) | $ | — | $ | (0.38 | ) | $ | (12.10 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.31 | ) | $ | — | $ | — | $ | (0.31 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.31 | ) | $ | — | $ | — | $ | (0.31 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (12.02 | ) | $ | — | $ | (0.38 | ) | $ | (12.41 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (12.02 | ) | $ | — | $ | (0.38 | ) | $ | (12.41 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,715 | 5,715 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,715 | 5,715 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended March 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (68.7 | ) | $ | (2.2 | ) | $ | (70.9 | ) | |||||||
Net realized investment gains / losses | 15.9 | (1.3 | ) | 14.6 | ||||||||||||
Policy acquisition costs deferred | (14.9 | ) | (0.2 | ) | (15.1 | ) | ||||||||||
Policy acquisition cost amortization | 45.3 | 4.3 | 49.6 | |||||||||||||
Amortization and depreciation | 2.2 | — | 2.2 | |||||||||||||
Interest credited | 30.5 | — | 30.5 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (8.7 | ) | 0.1 | (8.6 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (45.8 | ) | — | (45.8 | ) | |||||||||||
Deferred income taxes, net | — | — | — | |||||||||||||
Reinsurance recoverable | (11.0 | ) | 8.5 | (2.5 | ) | |||||||||||
Policy liabilities and accruals | (116.8 | ) | (55.2 | ) | [1] | (172.0 | ) | |||||||||
Dividend obligations | (39.4 | ) | 44.9 | [1] | 5.5 | |||||||||||
Pension and post-employment liabilities | (0.8 | ) | — | (0.8 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | 1.4 | — | 1.4 | |||||||||||||
Other operating activities, net [2] | 24.2 | 1.1 | 25.3 | |||||||||||||
Cash provided by (used for) operating activities | (186.6 | ) | — | (186.6 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (394.1 | ) | 10 | [3] | (384.1 | ) | ||||||||||
Available-for-sale equity securities | — | (10.0 | ) | [3] | (10.0 | ) | ||||||||||
Short-term investments | (699.5 | ) | — | (699.5 | ) | |||||||||||
Derivative instruments | (44.8 | ) | — | (44.8 | ) | |||||||||||
Fair value and other investments [4] | (14.9 | ) | — | (14.9 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 428.4 | — | 428.4 | |||||||||||||
Available-for-sale equity securities | 1.1 | — | 1.1 | |||||||||||||
Short-term investments | 699.7 | — | 699.7 | |||||||||||||
Derivative instruments | 12.5 | — | 12.5 | |||||||||||||
Fair value and other investments [4] | 4.6 | — | 4.6 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (9.8 | ) | — | (9.8 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 33.6 | — | 33.6 | |||||||||||||
Policy loans, net | 49.5 | — | 49.5 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (0.8 | ) | — | (0.8 | ) | |||||||||||
Cash provided by (used for) investing activities | 65.5 | — | 65.5 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended March 31, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 362.9 | — | 362.9 | |||||||||||||
Policyholder withdrawals | (282.7 | ) | — | (282.7 | ) | |||||||||||
Net transfers (to) from separate accounts | 89.5 | — | 89.5 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.6 | — | 0.6 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 170.3 | — | 170.3 | |||||||||||||
Change in cash and cash equivalents | 49.2 | — | 49.2 | |||||||||||||
Change in cash included in discontinued operations assets | (0.4 | ) | — | (0.4 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 295.2 | $ | — | $ | 295.2 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | ||||||||
Interest expense on indebtedness paid | $ | (4.7 | ) | $ | — | $ | (4.7 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 37.7 | $ | — | $ | 37.7 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended March 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.2 | ) | — | (0.2 | ) | |||||||||||
Balance, end of period | $ | 2,632.90 | $ | — | $ | 2,632.90 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | (11.5 | ) | (2.7 | ) | (14.2 | ) | ||||||||||
Balance, end of period | $ | (260.8 | ) | $ | 2.8 | $ | (258.0 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | (68.7 | ) | (2.2 | ) | (70.9 | ) | ||||||||||
Balance, end of period | $ | (1,765.9 | ) | $ | (6.8 | ) | $ | (1,772.7 | ) | |||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (80.4 | ) | (4.9 | ) | (85.3 | ) | ||||||||||
Balance, end of period | $ | 423.4 | $ | (4.0 | ) | $ | 419.4 | |||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Change in noncontrolling interests | 0.5 | — | 0.5 | |||||||||||||
Balance, end of period | $ | 7.2 | $ | — | $ | 7.2 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | (79.9 | ) | (4.9 | ) | (84.8 | ) | ||||||||||
Balance, end of period | $ | 430.6 | $ | (4.0 | ) | $ | 426.6 | |||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of June 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,725.90 | $ | — | $ | (71.1 | ) | [1] | $ | 11,654.80 | ||||||
Available-for-sale equity securities, at fair value | 38.7 | — | 68.7 | [1] | 107.4 | |||||||||||
Short-term investments | 599.8 | — | — | 599.8 | ||||||||||||
Limited partnerships and other investments | 559.4 | — | — | 559.4 | ||||||||||||
Policy loans, at unpaid principal balances | 2,350.10 | — | — | 2,350.10 | ||||||||||||
Derivative instruments | 206.5 | — | (17.6 | ) | 188.9 | |||||||||||
Fair value investments | 216.1 | — | — | 216.1 | ||||||||||||
Total investments | 15,696.50 | — | (20.0 | ) | 15,676.50 | |||||||||||
Cash and cash equivalents | 369.3 | — | — | 369.3 | ||||||||||||
Accrued investment income | 183.3 | — | — | 183.3 | ||||||||||||
Reinsurance recoverable | 577 | — | (0.3 | ) | 576.7 | |||||||||||
Deferred policy acquisition costs | 914.6 | — | 0.3 | 914.9 | ||||||||||||
Deferred income taxes, net | 65.8 | — | 0.1 | 65.9 | ||||||||||||
Other assets [2] | 325.1 | — | 15.5 | 340.6 | ||||||||||||
Discontinued operations assets | 47.1 | — | 4.8 | 51.9 | ||||||||||||
Separate account assets | 3,273.50 | — | — | 3,273.50 | ||||||||||||
Total assets | $ | 21,452.20 | $ | — | $ | 0.4 | $ | 21,452.60 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,577.70 | $ | — | $ | (7.9 | ) | $ | 12,569.80 | |||||||
Policyholder deposit funds | 3,247.80 | — | 8.1 | 3,255.90 | ||||||||||||
Dividend obligations | 744.6 | — | (2.1 | ) | 742.5 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 418.5 | — | — | 418.5 | ||||||||||||
Other liabilities | 385.3 | — | (2.9 | ) | 382.4 | |||||||||||
Discontinued operations liabilities | 41.3 | — | 4.8 | 46.1 | ||||||||||||
Separate account liabilities | 3,273.50 | — | — | 3,273.50 | ||||||||||||
Total liabilities | 21,067.50 | — | — | 21,067.50 | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.00 | — | — | 2,633.00 | ||||||||||||
Accumulated other comprehensive income (loss) | (274.3 | ) | — | 3.2 | (271.1 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,798.7 | ) | — | (2.8 | ) | (1,801.5 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 377.2 | — | 0.4 | 377.6 | ||||||||||||
Noncontrolling interests | 7.5 | — | — | 7.5 | ||||||||||||
Total stockholders’ equity | 384.7 | — | 0.4 | 385.1 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 21,452.20 | $ | — | $ | 0.4 | $ | 21,452.60 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $68.7 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended June 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 87.4 | $ | — | $ | — | $ | 87.4 | ||||||||
Fee income | 132.6 | — | — | 132.6 | ||||||||||||
Net investment income | 194 | — | (0.1 | ) | 193.9 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | — | — | (0.4 | ) | (0.4 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (2.5 | ) | — | — | (2.5 | ) | ||||||||||
Net OTTI losses recognized in earnings | (2.5 | ) | — | (0.4 | ) | (2.9 | ) | |||||||||
Net realized investment gains (losses), excluding OTTI losses | 9.7 | — | (1.5 | ) | 8.2 | |||||||||||
Net realized investment gains (losses) | 7.2 | — | (1.9 | ) | 5.3 | |||||||||||
Total revenues | 421.2 | — | (2.0 | ) | 419.2 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 272.8 | — | (0.6 | ) | 272.2 | |||||||||||
Policyholder dividends | 51.3 | — | 0.1 | 51.4 | ||||||||||||
Policy acquisition cost amortization | 32.2 | — | (5.1 | ) | 27.1 | |||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 91.8 | — | (0.5 | ) | 91.3 | |||||||||||
Total benefits and expenses | 455.2 | — | (6.1 | ) | 449.1 | |||||||||||
Income (loss) from continuing operations before income taxes | (34.0 | ) | — | 4.1 | (29.9 | ) | ||||||||||
Income tax expense (benefit) | (1.3 | ) | — | 0.1 | (1.2 | ) | ||||||||||
Income (loss) from continuing operations | (32.7 | ) | — | 4 | (28.7 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net income (loss) | (32.9 | ) | — | 4 | (28.9 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (32.8 | ) | $ | — | $ | 4 | $ | (28.8 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended June 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (32.8 | ) | $ | — | $ | 4 | $ | (28.8 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (32.9 | ) | — | 4 | (28.9 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | (40.4 | ) | — | 0.5 | (39.9 | ) | ||||||||||
Net pension liability adjustment | 2.6 | — | — | 2.6 | ||||||||||||
Other comprehensive income (loss) before income taxes | (37.8 | ) | — | 0.5 | (37.3 | ) | ||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | (24.3 | ) | — | 0.1 | (24.2 | ) | ||||||||||
Net pension liability adjustment | — | — | — | |||||||||||||
Total income tax expense (benefit) | (24.3 | ) | — | 0.1 | (24.2 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (13.5 | ) | — | 0.4 | (13.1 | ) | ||||||||||
Comprehensive income (loss) | (46.4 | ) | — | 4.4 | (42.0 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (46.3 | ) | $ | — | $ | 4.4 | $ | (41.9 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (5.69 | ) | $ | — | $ | 0.7 | $ | (4.99 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (5.69 | ) | $ | — | $ | 0.7 | $ | (4.99 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (5.71 | ) | $ | — | $ | 0.7 | $ | (5.02 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (5.71 | ) | $ | — | $ | 0.7 | $ | (5.02 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the six months ended June 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 170.1 | $ | — | $ | — | $ | 170.1 | ||||||||
Fee income | 268.9 | — | — | 268.9 | ||||||||||||
Net investment income | 385.1 | — | (0.8 | ) | 384.3 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (0.9 | ) | — | — | (0.9 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (4.2 | ) | — | — | (4.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (5.1 | ) | — | — | (5.1 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (3.6 | ) | — | (0.6 | ) | (4.2 | ) | |||||||||
Net realized investment gains (losses) | (8.7 | ) | — | (0.6 | ) | (9.3 | ) | |||||||||
Total revenues | 815.4 | — | (1.4 | ) | 814 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 591.6 | — | (48.8 | ) | [1] | 542.8 | ||||||||||
Policyholder dividends | 55.7 | — | 45 | [1] | 100.7 | |||||||||||
Policy acquisition cost amortization | 77.5 | — | (0.8 | ) | 76.7 | |||||||||||
Interest expense on indebtedness | 14.8 | — | (0.6 | ) | 14.2 | |||||||||||
Other operating expenses | 172.6 | — | 1.9 | 174.5 | ||||||||||||
Total benefits and expenses | 912.2 | — | (3.3 | ) | 908.9 | |||||||||||
Income (loss) from continuing operations before income taxes | (96.8 | ) | — | 1.9 | (94.9 | ) | ||||||||||
Income tax expense (benefit) | 2.9 | — | 0.1 | 3 | ||||||||||||
Income (loss) from continuing operations | (99.7 | ) | — | 1.8 | (97.9 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (2.0 | ) | — | — | (2.0 | ) | ||||||||||
Net income (loss) | (101.7 | ) | — | 1.8 | (99.9 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (101.5 | ) | $ | — | $ | 1.8 | $ | (99.7 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the six months ended June 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (101.5 | ) | $ | — | $ | 1.8 | $ | (99.7 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net income (loss) | (101.7 | ) | — | 1.8 | (99.9 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (47.9 | ) | — | (1.0 | ) | (48.9 | ) | |||||||||
Net pension liability adjustment | 6.4 | — | (1.2 | ) | 5.2 | |||||||||||
Other comprehensive income (loss) before income taxes | (41.5 | ) | — | (2.2 | ) | (43.7 | ) | |||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (16.5 | ) | — | 0.1 | (16.4 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (16.5 | ) | — | 0.1 | (16.4 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (25.0 | ) | — | (2.3 | ) | (27.3 | ) | |||||||||
Comprehensive income (loss) | (126.7 | ) | — | (0.5 | ) | (127.2 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (126.5 | ) | $ | — | $ | (0.5 | ) | $ | (127.0 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (17.36 | ) | $ | — | $ | 0.31 | $ | (17.01 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (17.36 | ) | $ | — | $ | 0.31 | $ | (17.01 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.35 | ) | $ | — | $ | — | $ | (0.35 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.35 | ) | $ | — | $ | — | $ | (0.35 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (17.68 | ) | $ | — | $ | 0.31 | $ | (17.36 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (17.68 | ) | $ | — | $ | 0.31 | $ | (17.36 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended June 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (101.5 | ) | $ | 1.8 | $ | (99.7 | ) | ||||||||
Net realized investment gains / losses | 8.7 | 0.6 | 9.3 | |||||||||||||
Policy acquisition costs deferred | (28.9 | ) | (0.4 | ) | (29.3 | ) | ||||||||||
Policy acquisition cost amortization | 77.5 | (0.8 | ) | 76.7 | ||||||||||||
Amortization and depreciation | 4.3 | — | 4.3 | |||||||||||||
Interest credited | 63.7 | — | 63.7 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (21.4 | ) | 0.1 | (21.3 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (70.1 | ) | — | (70.1 | ) | |||||||||||
Deferred income taxes, net | — | — | — | |||||||||||||
Reinsurance recoverable | 5.8 | 8 | 13.8 | |||||||||||||
Policy liabilities and accruals | (193.8 | ) | (55.3 | ) | [1] | (249.1 | ) | |||||||||
Dividend obligations | (33.5 | ) | 45 | [1] | 11.5 | |||||||||||
Pension and post-employment liabilities | (4.4 | ) | — | (4.4 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (2.0 | ) | — | (2.0 | ) | |||||||||||
Other operating activities, net [2] | 35.2 | 1 | 36.2 | |||||||||||||
Cash provided by (used for) operating activities | (260.4 | ) | — | (260.4 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (992.7 | ) | 16.1 | [3] | (976.6 | ) | ||||||||||
Available-for-sale equity securities | (2.4 | ) | (16.1 | ) | [3] | (18.5 | ) | |||||||||
Short-term investments | (849.4 | ) | — | (849.4 | ) | |||||||||||
Derivative instruments | (59.8 | ) | — | (59.8 | ) | |||||||||||
Fair value and other investments [4] | (20.0 | ) | — | (20.0 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 912.6 | (0.1 | ) | [3] | 912.5 | |||||||||||
Available-for-sale equity securities | 2.7 | 0.1 | [3] | 2.8 | ||||||||||||
Short-term investments | 949.6 | — | 949.6 | |||||||||||||
Derivative instruments | 22.4 | — | 22.4 | |||||||||||||
Fair value and other investments [4] | 11.7 | — | 11.7 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (27.7 | ) | — | (27.7 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 58.8 | — | 58.8 | |||||||||||||
Policy loans, net | 57.3 | — | 57.3 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (4.2 | ) | — | (4.2 | ) | |||||||||||
Cash provided by (used for) investing activities | 58.9 | — | 58.9 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended June 30, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 708.9 | — | 708.9 | |||||||||||||
Policyholder withdrawals | (578.1 | ) | — | (578.1 | ) | |||||||||||
Net transfers (to) from separate accounts | 193 | — | 193 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 1.1 | — | 1.1 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 324.9 | — | 324.9 | |||||||||||||
Change in cash and cash equivalents | 123.4 | — | 123.4 | |||||||||||||
Change in cash included in discontinued operations assets | (0.5 | ) | — | (0.5 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 369.3 | $ | — | $ | 369.3 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (8.7 | ) | $ | — | $ | (8.7 | ) | ||||||||
Interest expense on indebtedness paid | $ | (13.9 | ) | $ | — | $ | (13.9 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 74.4 | $ | — | $ | 74.4 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended June 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.1 | ) | — | (0.1 | ) | |||||||||||
Balance, end of period | $ | 2,633.00 | $ | — | $ | 2,633.00 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | (25.0 | ) | (2.3 | ) | (27.3 | ) | ||||||||||
Balance, end of period | $ | (274.3 | ) | $ | 3.2 | $ | (271.1 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | (101.5 | ) | 1.8 | (99.7 | ) | |||||||||||
Balance, end of period | $ | (1,798.7 | ) | $ | (2.8 | ) | $ | (1,801.5 | ) | |||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (126.6 | ) | (0.5 | ) | (127.1 | ) | ||||||||||
Balance, end of period | $ | 377.2 | $ | 0.4 | $ | 377.6 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Change in noncontrolling interests | 0.8 | — | 0.8 | |||||||||||||
Balance, end of period | $ | 7.5 | $ | — | $ | 7.5 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | (125.8 | ) | (0.5 | ) | (126.3 | ) | ||||||||||
Balance, end of period | $ | 384.7 | $ | 0.4 | $ | 385.1 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of September 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,713.20 | $ | — | $ | (63.4 | ) | [1] | $ | 11,649.80 | ||||||
Available-for-sale equity securities, at fair value | 45.2 | — | 62.5 | [1] | 107.7 | |||||||||||
Short-term investments | 454.8 | — | — | 454.8 | ||||||||||||
Limited partnerships and other investments | 573 | — | — | 573 | ||||||||||||
Policy loans, at unpaid principal balances | 2,329.90 | — | — | 2,329.90 | ||||||||||||
Derivative instruments | 197.2 | — | (17.2 | ) | 180 | |||||||||||
Fair value investments | 223.7 | — | — | 223.7 | ||||||||||||
Total investments | 15,537.00 | — | (18.1 | ) | 15,518.90 | |||||||||||
Cash and cash equivalents | 492.8 | — | — | 492.8 | ||||||||||||
Accrued investment income | 206.1 | — | — | 206.1 | ||||||||||||
Reinsurance recoverable | 589.6 | — | 0.3 | 589.9 | ||||||||||||
Deferred policy acquisition costs | 900.4 | — | 4.8 | 905.2 | ||||||||||||
Deferred income taxes, net | 66 | — | 0.1 | 66.1 | ||||||||||||
Other assets [2] | 345 | — | 23.6 | 368.6 | ||||||||||||
Discontinued operations assets | 45.5 | — | 4.8 | 50.3 | ||||||||||||
Separate account assets | 3,350.90 | — | — | 3,350.90 | ||||||||||||
Total assets | $ | 21,533.30 | $ | — | $ | 15.5 | $ | 21,548.80 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,559.30 | $ | — | $ | (8.2 | ) | $ | 12,551.10 | |||||||
Policyholder deposit funds | 3,328.60 | — | 10.4 | 3,339.00 | ||||||||||||
Dividend obligations | 746.5 | — | (1.7 | ) | 744.8 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and postretirement liabilities | 407.2 | — | — | 407.2 | ||||||||||||
Other liabilities | 342.9 | — | 5.2 | 348.1 | ||||||||||||
Discontinued operations liabilities | 39.6 | — | 4.7 | 44.3 | ||||||||||||
Separate account liabilities | 3,350.90 | — | — | 3,350.90 | ||||||||||||
Total liabilities | 21,153.80 | — | 10.4 | 21,164.20 | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.10 | — | — | 2,633.10 | ||||||||||||
Accumulated other comprehensive income (loss) | (258.9 | ) | — | 3.5 | (255.4 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,820.5 | ) | — | 1.6 | (1,818.9 | ) | ||||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 370.9 | — | 5.1 | 376 | ||||||||||||
Noncontrolling interests | 8.6 | — | — | 8.6 | ||||||||||||
Total stockholders’ equity | 379.5 | — | 5.1 | 384.6 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 21,533.30 | $ | — | $ | 15.5 | $ | 21,548.80 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $62.5 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 84.5 | $ | — | $ | — | $ | 84.5 | ||||||||
Fee income | 140.4 | — | — | 140.4 | ||||||||||||
Net investment income | 199.3 | — | — | 199.3 | ||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (1.7 | ) | — | 0.2 | (1.5 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.4 | ) | — | — | (0.4 | ) | ||||||||||
Net OTTI losses recognized in earnings | (2.1 | ) | — | 0.2 | (1.9 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 10.1 | — | (2.6 | ) | 7.5 | |||||||||||
Net realized investment gains (losses) | 8 | — | (2.4 | ) | 5.6 | |||||||||||
Total revenues | 432.2 | — | (2.4 | ) | 429.8 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 261.1 | — | (1.5 | ) | 259.6 | |||||||||||
Policyholder dividends | 66.2 | — | 0.1 | 66.3 | ||||||||||||
Policy acquisition cost amortization | 33.1 | — | (4.5 | ) | 28.6 | |||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 77.7 | — | (0.4 | ) | 77.3 | |||||||||||
Total benefits and expenses | 445.2 | — | (6.3 | ) | 438.9 | |||||||||||
Income (loss) from continuing operations before income taxes | (13.0 | ) | — | 3.9 | (9.1 | ) | ||||||||||
Income tax expense (benefit) | 9.2 | — | (0.5 | ) | 8.7 | |||||||||||
Income (loss) from continuing operations | (22.2 | ) | — | 4.4 | (17.8 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 0.3 | — | — | 0.3 | ||||||||||||
Net income (loss) | (21.9 | ) | — | 4.4 | (17.5 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (21.8 | ) | $ | — | $ | 4.4 | $ | (17.4 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended September 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (21.8 | ) | $ | — | $ | 4.4 | $ | (17.4 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (21.9 | ) | — | 4.4 | (17.5 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | 12.6 | — | 0.3 | 12.9 | ||||||||||||
Net pension liability adjustment | 2.6 | — | — | 2.6 | ||||||||||||
Other comprehensive income (loss) before income taxes | 15.2 | — | 0.3 | 15.5 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | 15.4 | — | 0.3 | 15.7 | ||||||||||||
Comprehensive income (loss) | (6.5 | ) | — | 4.7 | (1.8 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (6.4 | ) | $ | — | $ | 4.7 | $ | (1.7 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (3.87 | ) | $ | — | $ | 0.77 | $ | (3.08 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (3.87 | ) | $ | — | $ | 0.77 | $ | (3.08 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | 0.05 | $ | — | $ | — | $ | 0.05 | ||||||||
Income (loss) from discontinued operations – diluted | $ | 0.05 | $ | — | $ | — | $ | 0.05 | ||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (3.80 | ) | $ | — | $ | 0.77 | $ | (3.03 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (3.80 | ) | $ | — | $ | 0.77 | $ | (3.03 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 254.6 | $ | — | $ | — | $ | 254.6 | ||||||||
Fee income | 409.3 | — | — | 409.3 | ||||||||||||
Net investment income | 584.4 | — | (0.8 | ) | 583.6 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (2.6 | ) | — | 0.2 | (2.4 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (4.6 | ) | — | — | (4.6 | ) | ||||||||||
Net OTTI losses recognized in earnings | (7.2 | ) | — | 0.2 | (7.0 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 6.5 | — | (3.2 | ) | 3.3 | |||||||||||
Net realized investment gains (losses) | (0.7 | ) | — | (3.0 | ) | (3.7 | ) | |||||||||
Total revenues | 1,247.60 | — | (3.8 | ) | 1,243.80 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 852.7 | — | (50.3 | ) | [1] | 802.4 | ||||||||||
Policyholder dividends | 121.9 | — | 45.1 | [1] | 167 | |||||||||||
Policy acquisition cost amortization | 110.6 | — | (5.3 | ) | 105.3 | |||||||||||
Interest expense on indebtedness | 21.9 | — | (0.6 | ) | 21.3 | |||||||||||
Other operating expenses | 250.3 | — | 1.5 | 251.8 | ||||||||||||
Total benefits and expenses | 1,357.40 | — | (9.6 | ) | 1,347.80 | |||||||||||
Income (loss) from continuing operations before income taxes | (109.8 | ) | — | 5.8 | (104.0 | ) | ||||||||||
Income tax expense (benefit) | 12.1 | — | (0.4 | ) | 11.7 | |||||||||||
Income (loss) from continuing operations | (121.9 | ) | — | 6.2 | (115.7 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (1.7 | ) | — | — | (1.7 | ) | ||||||||||
Net income (loss) | (123.6 | ) | — | 6.2 | (117.4 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (123.3 | ) | $ | — | $ | 6.2 | $ | (117.1 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the nine months ended September 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (123.3 | ) | $ | — | $ | 6.2 | $ | (117.1 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Net income (loss) | (123.6 | ) | — | 6.2 | (117.4 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (35.3 | ) | — | (0.7 | ) | (36.0 | ) | |||||||||
Net pension liability adjustment | 9 | — | (1.2 | ) | 7.8 | |||||||||||
Other comprehensive income (loss) before income taxes | (26.3 | ) | — | (1.9 | ) | (28.2 | ) | |||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (16.7 | ) | — | 0.1 | (16.6 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (16.7 | ) | — | 0.1 | (16.6 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (9.6 | ) | — | (2.0 | ) | (11.6 | ) | |||||||||
Comprehensive income (loss) | (133.2 | ) | — | 4.2 | (129.0 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (132.9 | ) | $ | — | $ | 4.2 | $ | (128.7 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (21.23 | ) | $ | — | $ | 1.08 | $ | (20.09 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (21.23 | ) | $ | — | $ | 1.08 | $ | (20.09 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.30 | ) | $ | — | $ | — | $ | (0.30 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.30 | ) | $ | — | $ | — | $ | (0.30 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (21.47 | ) | $ | — | $ | 1.08 | $ | (20.39 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (21.47 | ) | $ | — | $ | 1.08 | $ | (20.39 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended September 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (123.3 | ) | $ | 6.2 | $ | (117.1 | ) | ||||||||
Net realized investment gains / losses | (3.8 | ) | 3 | (0.8 | ) | |||||||||||
Policy acquisition costs deferred | (42.8 | ) | (0.7 | ) | (43.5 | ) | ||||||||||
Policy acquisition cost amortization | 110.6 | (5.3 | ) | 105.3 | ||||||||||||
Amortization and depreciation | 6.3 | — | 6.3 | |||||||||||||
Interest credited | 99.8 | — | 99.8 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (35.4 | ) | 0.1 | (35.3 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (102.8 | ) | — | (102.8 | ) | |||||||||||
Deferred income taxes, net | — | — | — | |||||||||||||
Reinsurance recoverable | (6.7 | ) | 7.4 | 0.7 | ||||||||||||
Policy liabilities and accruals | (299.3 | ) | (56.2 | ) | [1] | (355.5 | ) | |||||||||
Dividend obligations | (9.4 | ) | 45.1 | [1] | 35.7 | |||||||||||
Pension and post-employment liabilities | (13.1 | ) | — | (13.1 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (3.6 | ) | — | (3.6 | ) | |||||||||||
Other operating activities, net [2] | 45.8 | 0.4 | 46.2 | |||||||||||||
Cash provided by (used for) operating activities | (377.7 | ) | — | (377.7 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (1,673.6 | ) | 20.4 | [3] | (1,653.2 | ) | ||||||||||
Available-for-sale equity securities | (4.5 | ) | (20.4 | ) | [3] | (24.9 | ) | |||||||||
Short-term investments | (1,089.1 | ) | — | (1,089.1 | ) | |||||||||||
Derivative instruments | (72.4 | ) | — | (72.4 | ) | |||||||||||
Fair value and other investments [4] | (26.7 | ) | — | (26.7 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 1,524.10 | (4.5 | ) | [3] | 1,519.60 | |||||||||||
Available-for-sale equity securities | 3.8 | 4.5 | [3] | 8.3 | ||||||||||||
Short-term investments | 1,334.50 | — | 1,334.50 | |||||||||||||
Derivative instruments | 34 | — | 34 | |||||||||||||
Fair value and other investments [4] | 18.2 | — | 18.2 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (51.8 | ) | — | (51.8 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 78.9 | — | 78.9 | |||||||||||||
Policy loans, net | 86.8 | — | 86.8 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (6.9 | ) | — | (6.9 | ) | |||||||||||
Cash provided by (used for) investing activities | 155.3 | — | 155.3 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended September 30, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 1,025.10 | — | 1,025.10 | |||||||||||||
Policyholder withdrawals | (857.4 | ) | — | (857.4 | ) | |||||||||||
Net transfers (to) from separate accounts | 299.3 | — | 299.3 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 2.3 | — | 2.3 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 469.3 | — | 469.3 | |||||||||||||
Change in cash and cash equivalents | 246.9 | — | 246.9 | |||||||||||||
Change in cash included in discontinued operations assets | (0.5 | ) | — | (0.5 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 492.8 | $ | — | $ | 492.8 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (8.5 | ) | $ | — | $ | (8.5 | ) | ||||||||
Interest expense on indebtedness paid | $ | (18.6 | ) | $ | — | $ | (18.6 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 85.7 | $ | — | $ | 85.7 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended September 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | — | — | ||||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | (9.6 | ) | (2.0 | ) | (11.6 | ) | ||||||||||
Balance, end of period | $ | (258.9 | ) | $ | 3.5 | $ | (255.4 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | (123.3 | ) | 6.2 | (117.1 | ) | |||||||||||
Balance, end of period | $ | (1,820.5 | ) | $ | 1.6 | $ | (1,818.9 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (132.9 | ) | 4.2 | (128.7 | ) | |||||||||||
Balance, end of period | $ | 370.9 | $ | 5.1 | $ | 376 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Change in noncontrolling interests | 1.9 | — | 1.9 | |||||||||||||
Balance, end of period | $ | 8.6 | $ | — | $ | 8.6 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | (131.0 | ) | 4.2 | (126.8 | ) | |||||||||||
Balance, end of period | $ | 379.5 | $ | 5.1 | $ | 384.6 | ||||||||||
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting (Policy) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Use of estimates | Use of estimates | ||||
In preparing these consolidated financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are made in the determination of estimated gross profits (“EGPs”) and estimated gross margins (“EGMs”) used in the valuation and amortization of assets and liabilities associated with universal life and annuity contracts; policyholder liabilities and accruals; valuation of investments in debt and equity securities; limited partnerships and other investments; valuation of deferred tax assets; pension and other post-employment benefits liabilities; and accruals for contingent liabilities. Certain of these estimates are particularly sensitive to market conditions and/or volatility in the debt or equity markets could have a material impact on the consolidated financial statements. Actual results could differ from these estimates. | |||||
Adoption of new accounting standards and Accounting standards not yet adopted | Adoption of new accounting standards | ||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists | |||||
In July 2013, the Financial Accounting Standards Board (the “FASB”) issued updated guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This new guidance was effective for interim or annual reporting periods beginning after December 15, 2013. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements | |||||
In June 2013, the FASB issued updated guidance clarifying the characteristics of an investment company and requiring new disclosures. This new guidance was effective for interim or annual reporting periods beginning after December 15, 2013. Under the guidance, all entities regulated under the Investment Company Act of 1940 automatically qualify as investment companies, while all other entities need to consider both the fundamental and typical characteristics of an investment company in determining whether they qualify as investment companies. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Obligations Resulting for Joint and Several Liability Agreements for Which the Total Amount of the Obligation is Fixed at the Reporting Date | |||||
In February 2013, the FASB issued new guidance regarding liabilities effective retrospectively for fiscal years beginning after December 15, 2013 and interim periods within those years. The amendments require an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition, the amendments require an entity to disclose the nature and amount of the obligation, as well as other information about the obligation. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Accounting standards not yet adopted | |||||
Amendments to Consolidation Guidance | |||||
In February 2015, the FASB issued updated consolidation guidance. The amendments revise existing guidance for when to consolidate variable interest entities (“VIEs”) and general partners’ investments in limited partnerships, end the deferral granted for applying the VIE guidance to certain investment companies, and reduce the number of circumstances where a decision maker’s or service provider’s fee arrangement is deemed to be a variable interest in an entity. The updates also modify consolidation guidance for determining whether limited partnerships are VIEs or voting interest entities. This guidance is effective for years beginning after December 31, 2015, and may be applied fully retrospectively or through a cumulative effect adjustment to retain earnings as of the beginning of the year of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Income Statement - Extraordinary and Unusual Items | |||||
In January 2015, the FASB issued new guidance regarding extraordinary items which eliminates the U.S. GAAP concept of an extraordinary item. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption is permitted if the guidance is applied as of the beginning of the annual period of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Presentation of Financial Statements - Going Concern | |||||
In August 2014, the FASB issued guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | |||||
In August 2014, the FASB issued guidance allowing (i.e., not requiring) a reporting entity to measure the financial assets and financial liabilities of a consolidated collateralized financing entity, within the scope of the new guidance, based on either the fair value of the financial assets or financial liabilities, whichever is more observable (referred to as a “measurement alternative”). The new guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 for public business entities. Early adoption will be permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Revenue from Contracts with Customers | |||||
In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2016, and must be applied using one of two retrospective application methods. Early adoption is not permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. | |||||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||||
In April 2014, the FASB issued updated guidance that changes the criteria for reporting discontinued operations and introduces new disclosures. The new guidance is effective prospectively to new disposals and new classifications of disposal groups as held for sale that occur within annual periods beginning on or after December 15, 2014 and interim periods within those annual periods. Early adoption is permitted for new disposals or new classifications as held for sale that have not been reported in financial statements previously issued. The Company will apply the guidance to new disposals and operations newly classified as held for sale, beginning first quarter of 2015, with no effect on existing reported discontinued operations. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Accounting for Troubled Debt Restructurings by Creditors | |||||
In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. This guidance can be elected for prospective adoption or by using a modified retrospective transition method. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Accounting for Investments in Qualified Affordable Housing Projects | |||||
In January 2014, the FASB issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and should be applied retrospectively to all periods presented. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations and financial statement disclosures. | |||||
Investments | Investments | ||||
Debt and Equity Securities | |||||
Our debt securities classified as available-for-sale include bonds, structured securities and redeemable preferred stock. These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are reported on our consolidated balance sheets at fair value. Fair value is based on quoted market price, where available. When quoted market prices are not available, we estimate fair value by discounting debt security cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality (private placement debt securities), by quoted market prices of comparable instruments (untraded public debt securities) and by independent pricing sources or internally developed pricing models. We recognize unrealized gains and losses on investments in debt and equity securities that we classify as available-for-sale. We report these unrealized investment gains and losses as a component of OCI. Realized investment gains and losses are recognized on a first in first out basis. | |||||
Limited Partnerships and Other Investments | |||||
Limited partnerships, infrastructure funds, hedge funds and joint venture interests in which we do not have voting control or power to direct activities are recorded using the equity method of accounting. These investments include private equity, mezzanine funds, infrastructure funds, hedge funds of funds and direct equity investments. The equity method of accounting requires that the investment be initially recorded at cost and the carrying amount of the investment subsequently adjusted to recognize our share of the earnings or losses. We record our equity in the earnings in net investment income using the most recent financial information received from the partnerships. Recognition of net investment income is generally on a three-month delay due to the timing of the related financial statements. The contributions to and distributions from limited partnerships are classified as investing activities within the statement of cash flows. | |||||
The Company routinely evaluates these investments for impairments. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for other-than-temporary impairments (“OTTI”) when the carrying value of such investments exceeds the net asset value (“NAV”). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is other-than-temporarily impaired. When an OTTI has occurred, the impairment loss is recorded within net investment gains (losses). | |||||
Other investments also include leveraged lease investments which represent the net amount of the estimated residual value of the lease assets, rental receivables and unearned and deferred income to be allocated over the lease term. It further includes investments in life settlement contracts accounted for under the investment method under which the Company recognizes its initial investment in life settlement contracts at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force comprising mainly life insurance premiums, increase the carrying value of the investment while income on individual life settlement contracts are recognized when the insured dies, at an amount equal to the excess of the contract proceeds over the carrying amount of the contract at that time. Contracts are reviewed annually for indications that the expected future proceeds from the contract would not be sufficient to recover estimated future carrying amount of the contract (current carrying amount for the contract plus anticipated undiscounted future premiums and other capitalizable future costs.) Any such contracts identified are written down to estimated fair value. | |||||
Loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. In a troubled debt restructuring where the Company receives assets in full or partial satisfaction of the debt, any specific valuation allowance is reversed and a direct write down of the loan is recorded for the amount of the allowance and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. Any remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. | |||||
The consolidated financial statements include investments in limited partnerships, certain of which qualify as VIEs. We consolidate those limited partnerships which were determined to be VIEs when we are the primary beneficiary. | |||||
See Note 8 to these consolidated financial statements for additional information regarding VIEs. | |||||
Policy Loans | |||||
Policy loans are carried at their unpaid principal balances and are collateralized by the cash values of the related policies. The majority of policy loans are at variable interest rates that are reset annually on the policy anniversary. | |||||
Fair Value Instruments | |||||
Debt securities held at fair value include securities held for which changes in fair values are recorded in earnings. The securities held at fair value are designated as trading securities, as well as those debt securities for which we have elected the fair value option (“FVO”) and certain available-for-sale structured securities held at fair value. The changes in fair value and any interest income of these securities are reflected in earnings as part of “net investment income.” See Note 13 to these consolidated financial statements for additional disclosures related to these securities. | |||||
Derivative Instruments | |||||
We recognize derivative instruments on the consolidated balance sheets at fair value. The derivative contracts are reported as assets in derivative instruments or liabilities in other liabilities on the consolidated balance sheets, excluding embedded derivatives. Embedded derivatives, as discussed below, are recorded on the consolidated balance sheets bifurcated from the associated host contract. | |||||
The Company economically hedges variability of cash flows to be received or paid related to certain recognized assets and/or liabilities. All changes in the fair value of derivatives, including net receipts and payments, are included in net realized investment gains and losses without consideration of changes in the fair value of the economically associated assets or liabilities. We do not designate the purchased derivatives related to living benefits or index credits as hedges for accounting purposes. | |||||
Our derivatives are not designated as hedges for accounting purposes. All changes in the fair value, including net receipts and payments, are included in net realized investment gains and losses without consideration of changes in the fair value of the economically associated assets or liabilities. | |||||
Short-Term Investments | |||||
Short-term investments include securities with a maturity of one year or less but greater than three months at a time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. | |||||
Net investment income | Net Investment Income | ||||
For asset-backed and fixed maturity debt securities, we recognize interest income using a constant effective yield based on estimated cash flow timing and economic lives of the securities. For high credit quality asset-backed securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For asset-backed securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For certain credit impaired asset-backed securities, effective yields are recalculated and adjusted prospectively to reflect significant increases in undiscounted expected future cash flows and changes in the contractual benchmark interest rate on variable rate securities. Any prepayment fees on fixed maturities and mortgage loans are recorded when earned in net investment income. We record the net income from investments in partnerships and joint ventures in net investment income. | |||||
Other-than-temporary impairments on available-for-sale securities | Other-Than-Temporary Impairments on Available-For-Sale Securities | ||||
We recognize realized investment losses when declines in fair value of debt and equity securities are considered to be an OTTI. | |||||
For debt securities, the other-than-temporarily impaired amount is separated into the amount related to a credit loss and is reported as net realized investment losses included in earnings and any amounts related to other factors are recognized in OCI. The credit loss component represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in AOCI. Subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the date of impairment at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. We will continue to estimate the present value of future expected cash flows and, if significantly greater than the new cost basis, we will accrete the difference as investment income on a prospective basis once the Company has determined that the interest income is likely to be collected. | |||||
In evaluating whether a decline in value is other-than-temporary, we consider several factors including, but not limited to, the following: | |||||
• | the extent and the duration of the decline; | ||||
• | the reasons for the decline in value (credit event, interest related or market fluctuations); | ||||
• | our intent to sell the security, or whether it is more likely than not that we will be required to sell it before recovery; and | ||||
• | the financial condition and near term prospects of the issuer. | ||||
An impairment of a debt security, or certain equity securities with debt-like characteristics, is deemed other-than-temporary if: | |||||
• | we either intend to sell the security, or it is more likely than not that we will be required to sell the security before recovery; or | ||||
• | it is probable we will be unable to collect cash flows sufficient to recover the amortized cost basis of the security. | ||||
An equity security impairment is deemed other-than-temporary if: | |||||
• | the security has traded at a significant discount to cost for an extended period of time; or | ||||
• | we determined we may not realize the full recovery on our investment. | ||||
Equity securities are determined to be other-than-temporarily impaired based on management judgment and the consideration of the issuer’s financial condition along with other relevant facts and circumstances. Those securities which have been in a continuous decline for over twelve months and declines in value that are severe and rapid are considered for reasonability of whether the impairment would be temporary. Although there may be sustained losses for over twelve months or losses that are severe and rapid, additional information related to the issuer performance may indicate that such losses are not other-than-temporary. | |||||
Impairments due to deterioration in credit that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security are considered other-than-temporary. Other declines in fair value (for example, due to interest rate changes, sector credit rating changes or company-specific rating changes) that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security may also result in a conclusion that an OTTI has occurred. | |||||
On a quarterly basis, we evaluate securities in an unrealized loss position for potential recognition of an OTTI. In addition, we maintain a watch list of securities in default, near default or otherwise considered by our investment professionals as being distressed, potentially distressed or requiring a heightened level of scrutiny. We also identify securities whose fair value has been below amortized cost on a continuous basis for zero to six months, six months to 12 months and greater than 12 months. | |||||
We employ a comprehensive process to determine whether or not a security in an unrealized loss position is other-than-temporarily impaired. This assessment is done on a security-by-security basis and involves significant management judgment. The assessment of whether impairments have occurred is based on management’s evaluation of the underlying reasons for the decline in estimated fair value. The Company’s review of its fixed maturity and equity securities for impairments includes an analysis of the total gross unrealized losses by severity and/or age of the gross unrealized loss. An extended and severe decline in value on a fixed maturity security may not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company’s evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for certain equity securities, greater weight and consideration are given by the Company to an extended decline in market value and the likelihood such market value decline will recover. | |||||
Specifically for structured securities, to determine whether a collateralized security is impaired, we obtain underlying data from the security’s trustee and analyze it for performance trends. A security-specific stress analysis is performed using the most recent trustee information. This analysis forms the basis for our determination of the future expected cash flows to be collected for the security. | |||||
The closed block policyholder dividend obligation, applicable DAC and applicable income taxes, which offset realized investment gains and losses and OTTIs, are each reported separately as components of net income. | |||||
Cash and cash equivalents | Cash and Cash Equivalents | ||||
Cash and cash equivalents include cash on hand, amounts due from banks, money market instruments and other debt instruments with original maturities of three months or less. Negative cash balances are reclassified to other liabilities. | |||||
Deferred policy acquisition costs | Deferred Policy Acquisition Costs | ||||
We defer incremental direct costs related to the successful sale of new or renewal contracts. Incremental direct costs are those costs that result directly from and are essential to the sale of a contract. These costs include principally commissions, underwriting and policy issue expenses, all of which vary with and are primarily related to production of new business. | |||||
We amortize DAC based on the related policy’s classification. For individual participating life insurance policies, DAC is amortized in proportion to EGMs arising principally from investment results, mortality, dividends to policyholders and expense margins. For universal life, variable universal life and deferred annuities, DAC is amortized in proportion to EGPs as discussed more fully below. EGPs are also used to amortize other assets and liabilities in the Company’s consolidated balance sheets, such as sales inducement assets (“SIA”) and unearned revenue reserves (“URR”). Components of EGPs are used to determine reserves for universal life and fixed, indexed and variable annuity contracts with death and other insurance benefits such as guaranteed minimum death and guaranteed minimum income benefits. Both EGMs and EGPs are based on historical and anticipated future experience which is updated periodically. | |||||
In addition, DAC is adjusted through OCI each period as a result of unrealized gains or losses on securities classified as available-for-sale in a process commonly referred to as shadow accounting. This adjustment is required in order to reflect the impact of these unrealized amounts as if these unrealized amounts had been realized. | |||||
The projection of EGPs and EGMs requires the extensive use of actuarial assumptions, estimates and judgments about the future. Future EGPs and EGMs are generally projected for the estimated lives of the contracts. Assumptions are set separately for each product and are reviewed at least annually based on our current best estimates of future events. The following table summarizes the most significant assumptions used in the categories set forth below: | |||||
Significant Assumption | Product | Explanation and Derivation | |||
Separate account investment return | Variable Annuities | Separate account return assumptions are derived from the long-term returns observed in the asset classes in which the separate accounts are invested. Short-term deviations from the long-term expectations are expected to revert to the long-term assumption over five years. | |||
(7.9% long-term return assumption) | |||||
Variable Universal Life | |||||
(8.0% long-term return assumption) | |||||
Interest rates and default rates | Fixed and Indexed Annuities | Investment returns are based on the current yields and maturities of our fixed income portfolio combined with expected reinvestment rates given current market interest rates. Reinvestment rates are assumed to revert to long-term rates implied by the forward yield curve and long-term default rates. Contractually permitted future changes in credited rates are assumed to help support investment margins. | |||
Universal Life | |||||
Participating Life | |||||
Mortality / longevity | Universal Life | Mortality assumptions are based on Company experience over a rolling five-year period plus supplemental data from industry sources and trends. A mortality improvement assumption is also incorporated into the overall mortality table. These assumptions can vary by issue age, gender, underwriting class and policy duration. | |||
Variable Universal Life | |||||
Fixed and Indexed Annuities | |||||
Participating Life | |||||
Significant Assumption | Product | Explanation and Derivation | |||
Policyholder behavior – policy persistency | Universal Life | Policy persistency assumptions vary by product and policy year and are updated based on recently observed experience. Policyholders are generally assumed to behave rationally; hence rates are typically lower when surrender penalties are in effect or when policy benefits are more valuable. | |||
Variable Universal Life | |||||
Variable Annuities | |||||
Fixed and Indexed Annuities | |||||
Participating Life | |||||
Policyholder behavior – premium persistency | Universal Life | Future premiums and related fees are projected based on contractual terms, product illustrations at the time of sale and expected policy lapses without value. Assumptions are updated based on recently observed experience and include anticipated changes in behavior based on changes in policy charges if the Company has a high degree of confidence that such changes will be implemented (e.g., change in cost of insurance (“COI”) charges). | |||
Variable Universal Life | |||||
Expenses | All products | Projected maintenance expenses to administer policies in force are based on annually updated studies of expenses incurred. | |||
Reinsurance costs / recoveries | Universal Life | Projected reinsurance costs are based on treaty terms currently in force. Recoveries are based on the Company’s assumed mortality and treaty terms. Treaty recaptures are based on contract provisions and management’s intentions. | |||
Variable Universal Life | |||||
Variable Annuities | |||||
Participating Life | |||||
Annually, we complete a comprehensive assumption review where management makes a determination of best estimate assumptions based on a comprehensive review of recent experience and industry trends. Assumption changes resulting from this review may change our estimates of EGPs in the DAC, SIA, and URR models, as well as projections within the death benefit and other insurance benefit reserving models, the profits followed by losses reserve models, and cost of reinsurance models. Throughout the year, we may also update the assumptions and adjust these balances if emerging data indicates a change is warranted. All assumption changes, whether resulting from the annual comprehensive review or from other periodic assessments, are considered an unlock in the period of revision and adjust the DAC, SIA, URR, death and other insurance benefit reserves, profits followed by losses reserve, and cost of reinsurance balances in the consolidated balance sheets with an offsetting benefit or charge to income to reflect such changes in the period of the revision. An unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being more favorable than previous estimates. An unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being less favorable than previous estimates. | |||||
Our process to assess the reasonableness of the EGPs uses internally developed models together with consideration of applicable recent experience and analysis of market and industry trends and other events. Actual gross profits that vary from management’s estimates in a given reporting period may also result in increases or decreases in the rate of amortization recorded in the period. | |||||
An analysis is performed annually to assess if there are sufficient gross profits to recover the DAC associated with business written during the year. If the estimates of gross profits cannot support the recovery of DAC, the amount deferred is reduced to the recoverable amount. | |||||
The Company has updated a number of assumptions that have resulted in changes to expected future gross profits. The most significant assumption updates made over the last several years resulting in a change to future gross profits and the amortization of DAC, SIA and URR, as well as changes in PFBL and guaranteed benefit liabilities, are related to long-term expected mortality improvement; changes in expected premium persistency; changes in expected separate account investment returns due to changes in equity markets; changes in expected future interest rates and default rates based on continued experience and expected interest rate changes; changes in lapses and other policyholder behavior assumptions that are updated to reflect more recent policyholder and industry experience; and changes in expected policy administration expenses. | |||||
Sales inducements | Sales inducements | ||||
The Company currently offers bonus payments to contract owners on certain of its individual life and annuity products. Expenses incurred related to bonus payments are deferred and amortized over the life of the related contracts in a pattern consistent with the amortization of DAC. The Company unlocks the assumptions used in the amortization of the deferred sales inducement assets consistent with the unlock of assumptions used in determining EGPs. Deferred sales inducements are included in other assets on the consolidated balance sheets and amortization of deferred sales inducements is included in other operating expense on the consolidated statements of income and comprehensive income. | |||||
Premises and equipment | Premises and equipment | ||||
Premises and equipment, consisting primarily of our main office building, are stated at cost less accumulated depreciation and amortization and are included in other assets. We depreciate the building on the straight-line method over 39 years and equipment on the straight-line method over three to seven years. We amortize leasehold improvements over the terms of the related leases or the useful life of the improvement, whichever is shorter. | |||||
Separate account assets and liabilities | Separate account assets and liabilities | ||||
Separate account assets related to policyholder funds are carried at fair value with an equivalent amount recorded as separate account liabilities. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues and the related liability increases are excluded from benefits and expenses. Fees assessed to the contract owners for management services are included in revenues when services are rendered. | |||||
Policy liabilities and accruals | Policy liabilities and accruals | ||||
Policy liabilities and accruals include future benefit liabilities for certain life and annuity products. We establish liabilities in amounts adequate to meet the estimated future obligations of policies in force. Future benefit liabilities for traditional life insurance are computed using the net level premium method on the basis of actuarial assumptions as to mortality rates guaranteed in calculating the cash surrender values described in such contracts, contractual guaranteed rates of interest which range from 2.3% to 6.0% and morbidity. Participating insurance represented 20.7% and 20.7% of direct individual life insurance in force at December 31, 2014 and 2013, respectively. | |||||
Generally, future policy benefits are payable over an extended period of time and related liabilities are calculated recognizing future expected benefits, expenses and premiums. Such liabilities are established based on methods and underlying assumptions in accordance with U.S. GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policyholder behavior, investment returns, inflation, expenses and other contingent events as appropriate. These assumptions are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a cohort basis, as appropriate. If experience is less favorable than assumed, additional liabilities may be established, resulting in a charge to policyholder benefits and claims. | |||||
Additional policyholder liabilities for guaranteed benefits on variable annuity and on fixed index annuity contracts are based on estimates of the expected value of benefits in excess of the projected account balance, recognizing the excess over the accumulation period based on total expected assessments. Because these estimates are sensitive to capital market movements, amounts are calculated using multiple future economic scenarios. | |||||
Additional policyholder liabilities are established for certain contract features on universal life and variable universal life products that could generate significant reductions to future gross profits (e.g., death benefits when a contract has zero account value and a no-lapse guarantee). The liabilities are accrued over the lifetime of the block based on assessments. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC and are, thus, subject to the same variability and risk. The assumptions of investment performance and volatility for variable and equity index products are consistent with historical experience of the appropriate underlying equity indices. | |||||
We expect that our universal life block of business will generate profits followed by losses and therefore we establish an additional liability to accrue for the expected losses over the period of expected profits. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC and are subject to the same variability and risk and the results are very sensitive to interest rates. | |||||
The liability for universal life-type contracts primarily includes the balance that accrues to the benefit of the policyholders as of the financial statement date, including interest credited at rates which range from 3.0% to 4.5%, amounts that have been assessed to compensate us for services to be performed over future periods, accumulated account deposits, withdrawals and any amounts previously assessed against the policyholder that are refundable. There may also be a liability recorded for contracts that include additional death or other insurance benefit features as discussed above. | |||||
The Company periodically reviews its estimates of actuarial liabilities for policyholder benefits and compares them with its actual experience. Differences between actual experience and the assumptions used in pricing these policies and guarantees, as well as in the establishment of the related liabilities, result in variances in profit and could result in losses. | |||||
Policy liabilities and accruals also include liabilities for outstanding claims, losses and loss adjustment expenses based on individual case estimates for reported losses and estimates of unreported losses based on past experience. The Company does not establish claim liabilities until a loss has occurred. However, unreported losses and loss adjustment expenses includes estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. | |||||
Embedded derivatives | Embedded derivatives | ||||
Certain contracts contain guarantees that are accounted for as embedded derivative instruments. These guarantees are assessed to determine if a separate instrument with the same terms would qualify as a derivative and if they are not clearly and closely related to the economic characteristics of the host contract. Contract guarantees that meet these criteria are reported separately from the host contract and reported at fair value. | |||||
The guaranteed minimum withdrawal benefit (“GMWB”), guaranteed minimum accumulation benefit (“GMAB”) and combination rider (“COMBO”) represent embedded derivative liabilities in the variable annuity contracts. These liabilities are accounted for at fair value within policyholder deposit funds on the consolidated balance sheets with changes in the fair value of embedded derivatives recorded in realized investment gains on the consolidated statements of income and comprehensive income. The fair value of the GMWB, GMAB and COMBO obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. As markets change, contracts mature and actual policyholder behavior emerges, these assumptions are continually evaluated and may from time to time be adjusted. | |||||
Fixed indexed annuities offer a variety of index options: policy credits that are calculated based on the performance of an outside equity market or other index over a specified term. The index options represent embedded derivative liabilities accounted for at fair value within policyholder deposit funds on the consolidated balance sheets with changes in fair value recorded in realized investment gains and losses in the consolidated statements of income and comprehensive income. The fair value of these index options is based on the impact of projected interest rates and equity markets and is discounted using the projected interest rate. Several additional inputs reflect our internally developed assumptions related to lapse rates and policyholder behavior. | |||||
See Note 11 to these consolidated financial statements for additional information regarding embedded derivatives. | |||||
Policyholder deposit funds | Policyholder deposit funds | ||||
Amounts received as payment for certain deferred annuities and other contracts without life contingencies are reported as deposits to policyholder deposit funds. The liability for deferred annuities and other contracts without life contingencies is equal to the balance that accrues to the benefit of the contract owner as of the financial statement date which includes the accumulation of deposits plus interest credited, less withdrawals and amounts assessed through the financial statement date as well as accumulated policyholder dividends and the liability representing the fair value of embedded derivatives associated with those contracts. | |||||
Contingent liabilities | Contingent liabilities | ||||
Management evaluates each contingent matter separately and in aggregate. Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. | |||||
Demutualization and closed block | Demutualization and closed block | ||||
The closed block assets, including future assets from cash flows generated by the assets and premiums and other revenues from the policies in the closed block, will benefit only holders of the policies in the closed block. The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, investment purchases and sales, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions, investment income and realized investment gains and losses on investments held outside the closed block that support the closed block business. All of these excluded income and expense items enter into the determination of EGMs of closed block policies for the purpose of amortization of DAC. | |||||
In our financial statements, we present closed block assets, liabilities, revenues and expenses together with all other assets, liabilities, revenues and expenses. Within closed block liabilities, we have established a policyholder dividend obligation to record an additional liability to closed block policyholders for cumulative closed block earnings in excess of expected amounts calculated at the date of demutualization. These closed block earnings will not inure to shareholders, but will result in additional future dividends to closed block policyholders unless otherwise offset by future performance of the closed block that is less favorable than expected. | |||||
Revenue recognition | Revenue recognition | ||||
We recognize premiums for participating life insurance products and other life insurance products as revenue when due from policyholders. We match benefits, losses and related expenses with premiums over the related contract periods. | |||||
Amounts received as payment for universal life, variable universal life and other investment-type contracts are considered deposits and are not included in premiums. Revenues from these products consist primarily of fees assessed during the period against the policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Fees assessed that represent compensation for services to be provided in the future are deferred and amortized into revenue over the life of the related contracts in proportion to EGPs. | |||||
Certain variable annuity contracts and fixed index annuity contract riders provide the holder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. The fee for these riders is recorded in fee income. These benefits are accounted for as insurance benefits. Certain variable annuity contracts features and fixed index annuity index options are considered embedded derivatives. See Note 11 to these consolidated financial statements for additional information. | |||||
Reinsurance | Reinsurance | ||||
Premiums, policy benefits and operating expenses related to our traditional life and term insurance policies are stated net of reinsurance ceded to other companies, except for amounts associated with certain modified coinsurance contracts which are reflected in the Company’s financial statements based on the application of the deposit method of accounting. Estimated reinsurance recoverables and the net estimated cost of reinsurance are recognized over the life of the reinsured treaty using assumptions consistent with those used to account for the policies subject to the reinsurance. | |||||
For universal life and variable universal life contracts, reinsurance premiums and ceded benefits are reflected net within policy benefits. Reinsurance recoverables are recognized in the same period as the related reinsured claim. The net cost or benefit of reinsurance (the present value of all expected ceded premium payments and expected future benefit payments) is recognized over the life of the reinsured treaty using assumptions consistent with those used to account for the policies subject to the reinsurance. | |||||
Income taxes | Income taxes | ||||
Income tax expense or benefit is recognized based upon amounts reported in the financial statements and the provisions of currently enacted tax laws. Deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. Valuation allowances on deferred tax assets are recorded to the extent that management concludes that it is more likely than not that an asset will not be realized. | |||||
We recognize current income tax assets and liabilities for estimated income taxes refundable or payable based on the income tax returns. We recognize deferred income tax assets and liabilities for the estimated future income tax effects of temporary differences and carryovers. Temporary differences are the differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as the timing of income or expense recognized for financial reporting and tax purposes of items not related to assets or liabilities. If necessary, we establish valuation allowances to reduce the carrying amount of deferred income tax assets to amounts that are more likely than not to be realized. We periodically review the adequacy of these valuation allowances and record any increase or reduction in allowances in accordance with intraperiod allocation rules. We assess all significant tax positions to determine if a liability for an uncertain tax position is necessary and, if so, the impact on the current or deferred income tax balances. Also, if indicated, we recognize interest or penalties related to income taxes as a component of the income tax provision. | |||||
Pension and other post-employment benefits | Pension and other post-employment benefits | ||||
We recognize pension and other post-employment benefit costs and obligations over the employees’ expected service periods by discounting an estimate of aggregate benefits. We estimate aggregate benefits by using assumptions for rates of return on pension plan assets and future health care costs. We recognize an expense for differences between actual experience and estimates exceeding a corridor over the average future lifetime of participants. We recognize an expense for our contributions to employee and agent savings plans at the time employees and agents make contributions to the plans. We also recognize the costs and obligations of severance, disability and related life insurance and health care benefits to be paid to inactive or former employees after employment but before retirement. |
Restatement_and_Revision_of_Pr1
Restatement and Revision of Previously Reported Financial Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | ||||||||||||||||
Summary of Restatement and Revision of Previously Reported Financial Information | The impact of the correction of these errors on the consolidated financial statements is presented in the following tables within this Note below. | |||||||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,808.60 | $ | — | $ | (77.1 | ) | [1] | $ | 11,731.50 | ||||||
Available-for-sale equity securities, at fair value | 61.8 | — | 76.2 | [1] | 138 | |||||||||||
Short-term investments | 361.6 | — | — | 361.6 | ||||||||||||
Limited partnerships and other investments | 561.9 | — | (0.6 | ) | 561.3 | |||||||||||
Policy loans, at unpaid principal balances | 2,350.30 | — | — | 2,350.30 | ||||||||||||
Derivative instruments | 243.1 | — | (14.3 | ) | 228.8 | |||||||||||
Fair value investments | 210.8 | — | 4.4 | 215.2 | ||||||||||||
Total investments | 15,598.10 | — | (11.4 | ) | 15,586.70 | |||||||||||
Cash and cash equivalents | 496.4 | — | — | 496.4 | ||||||||||||
Accrued investment income | 170.4 | — | — | 170.4 | ||||||||||||
Reinsurance recoverable | 603.3 | (4.3 | ) | (0.9 | ) | 598.1 | ||||||||||
Deferred policy acquisition costs | 940.6 | 7.8 | (0.6 | ) | 947.8 | |||||||||||
Deferred income taxes, net | 70 | — | — | 70 | ||||||||||||
Other assets [2] | 299.9 | 0.1 | 20.5 | 320.5 | ||||||||||||
Discontinued operations assets | 43.6 | — | 5.3 | 48.9 | ||||||||||||
Separate account assets | 3,402.30 | — | — | 3,402.30 | ||||||||||||
Total assets | $ | 21,624.60 | $ | 3.6 | $ | 12.9 | $ | 21,641.10 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,437.60 | $ | (15.9 | ) | $ | (5.1 | ) | $ | 12,416.60 | ||||||
Policyholder deposit funds | 3,429.70 | — | 12.9 | 3,442.60 | ||||||||||||
Dividend obligations | 705.9 | — | (0.2 | ) | 705.7 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 315.9 | — | (2.8 | ) | 313.1 | |||||||||||
Other liabilities | 333 | — | 4.3 | 337.3 | ||||||||||||
Discontinued operations liabilities | 37.7 | — | 5.7 | 43.4 | ||||||||||||
Separate account liabilities | 3,402.30 | — | — | 3,402.30 | ||||||||||||
Total liabilities | 21,040.90 | (15.9 | ) | 14.8 | 21,039.80 | |||||||||||
COMMITMENTS AND CONTINGENCIES (Notes 22, 23 and 24) | ||||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.10 | — | — | 2,633.10 | ||||||||||||
Accumulated other comprehensive income (loss) | (185.2 | ) | 0.3 | (0.1 | ) | (185.0 | ) | |||||||||
Retained earnings (accumulated deficit) | (1,692.1 | ) | 19.2 | (2.9 | ) | (1,675.8 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 573 | 19.5 | (3.0 | ) | 589.5 | |||||||||||
Noncontrolling interests | 10.7 | — | 1.1 | 11.8 | ||||||||||||
Total stockholders’ equity | 583.7 | 19.5 | (1.9 | ) | 601.3 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,624.60 | $ | 3.6 | $ | 12.9 | $ | 21,641.10 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $76.2 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 351.6 | $ | — | $ | — | $ | 351.6 | ||||||||
Fee income | 551.2 | (0.9 | ) | — | 550.3 | |||||||||||
Net investment income | 787.2 | 2.5 | 789.7 | |||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (7.5 | ) | — | 0.5 | (7.0 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (4.8 | ) | — | — | (4.8 | ) | ||||||||||
Net OTTI losses recognized in earnings | (12.3 | ) | — | 0.5 | (11.8 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 33.6 | — | (5.8 | ) | 27.8 | |||||||||||
Net realized investment gains (losses) | 21.3 | — | (5.3 | ) | 16 | |||||||||||
Gain on debt repurchase | — | — | — | — | ||||||||||||
Total revenues | 1,711.30 | (0.9 | ) | (2.8 | ) | 1,707.60 | ||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 1,026.50 | (12.3 | ) | (49.1 | ) | [1] | 965.1 | |||||||||
Policyholder dividends | 189.7 | — | 46.2 | [1] | 235.9 | |||||||||||
Policy acquisition cost amortization | 113.7 | (7.7 | ) | (2.9 | ) | 103.1 | ||||||||||
Interest expense on indebtedness | 28.9 | — | (0.6 | ) | 28.3 | |||||||||||
Other operating expenses | 335.6 | (0.1 | ) | 1.6 | 337.1 | |||||||||||
Total benefits and expenses | 1,694.40 | (20.1 | ) | (4.8 | ) | 1,669.50 | ||||||||||
Income (loss) from continuing operations before income taxes | 16.9 | 19.2 | 2 | 38.1 | ||||||||||||
Income tax expense (benefit) | 9.6 | — | (1.1 | ) | 8.5 | |||||||||||
Income (loss) from continuing operations | 7.3 | 19.2 | 3.1 | 29.6 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | (2.6 | ) | — | (0.3 | ) | (2.9 | ) | |||||||||
Net income (loss) | 4.7 | 19.2 | 2.8 | 26.7 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.4 | ) | — | 1.1 | 0.7 | |||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | 5.1 | $ | 19.2 | $ | 1.7 | $ | 26 | ||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | 5.1 | $ | 19.2 | $ | 1.7 | $ | 26 | ||||||||
Net income (loss) attributable to noncontrolling interests | (0.4 | ) | — | 1.1 | 0.7 | |||||||||||
Net income (loss) | 4.7 | 19.2 | 2.8 | 26.7 | ||||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (55.8 | ) | 0.3 | (7.2 | ) | (62.7 | ) | |||||||||
Net pension liability adjustment | 99.3 | — | 1.7 | 101 | ||||||||||||
Other comprehensive income (loss) before income taxes | 43.5 | 0.3 | (5.5 | ) | 38.3 | |||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (20.6 | ) | — | 0.1 | (20.5 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (20.6 | ) | — | 0.1 | (20.5 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | 64.1 | 0.3 | (5.6 | ) | 58.8 | |||||||||||
Comprehensive income (loss) | 68.8 | $ | 19.5 | $ | (2.8 | ) | $ | 85.5 | ||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.4 | ) | — | 1.1 | 0.7 | |||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | 69.2 | $ | 19.5 | $ | (3.9 | ) | $ | 84.8 | |||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | As of and for the year ended December 31, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | 1.27 | $ | 3.35 | $ | 0.35 | $ | 5.04 | ||||||||
Income (loss) from continuing operations – diluted | $ | 1.27 | $ | 3.33 | $ | 0.34 | $ | 5.01 | ||||||||
Income (loss) from discontinued operations – basic | $ | (0.45 | ) | $ | — | $ | (0.05 | ) | $ | (0.51 | ) | |||||
Income (loss) from discontinued operations – diluted | $ | (0.45 | ) | $ | — | $ | (0.05 | ) | $ | (0.50 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | 0.89 | $ | 3.35 | $ | 0.3 | $ | 4.53 | ||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | 0.88 | $ | 3.33 | $ | 0.29 | $ | 4.51 | ||||||||
Basic weighted-average common shares outstanding (in thousands) | 5,735 | 5,735 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,764 | 5,764 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 402.3 | $ | — | $ | — | $ | 402.3 | ||||||||
Fee income | 556.2 | — | (0.2 | ) | 556 | |||||||||||
Net investment income | 829.3 | — | (1.5 | ) | 827.8 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (51.7 | ) | — | 0.9 | (50.8 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | 22.9 | — | — | 22.9 | ||||||||||||
Net OTTI losses recognized in earnings | (28.8 | ) | — | 0.9 | (27.9 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 18.3 | — | (7.2 | ) | 11.1 | |||||||||||
Net realized investment gains (losses) | (10.5 | ) | — | (6.3 | ) | (16.8 | ) | |||||||||
Gain on debt repurchase | 11.9 | — | — | 11.9 | ||||||||||||
Total revenues | 1,789.20 | — | (8.0 | ) | 1,781.20 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 1,166.10 | — | (3.7 | ) | 1,162.40 | |||||||||||
Policyholder dividends | 294.8 | — | (2.7 | ) | 292.1 | |||||||||||
Policy acquisition cost amortization | 200 | — | (3.9 | ) | 196.1 | |||||||||||
Interest expense on indebtedness | 30.8 | — | — | 30.8 | ||||||||||||
Other operating expenses | 253.5 | — | (0.2 | ) | 253.3 | |||||||||||
Total benefits and expenses | 1,945.20 | — | (10.5 | ) | 1,934.70 | |||||||||||
Income (loss) from continuing operations before income taxes | (156.0 | ) | — | 2.5 | (153.5 | ) | ||||||||||
Income tax expense (benefit) | (3.7 | ) | — | (1.0 | ) | (4.7 | ) | |||||||||
Income (loss) from continuing operations | (152.3 | ) | — | 3.5 | (148.8 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (15.6 | ) | — | — | (15.6 | ) | ||||||||||
Net income (loss) | (167.9 | ) | — | 3.5 | (164.4 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.6 | — | — | 0.6 | ||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (168.5 | ) | $ | — | $ | 3.5 | $ | (165.0 | ) | ||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (168.5 | ) | $ | — | $ | 3.5 | $ | (165.0 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | 0.6 | — | — | 0.6 | ||||||||||||
Net income (loss) | (167.9 | ) | — | 3.5 | (164.4 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | 93.7 | — | 1.7 | 95.4 | ||||||||||||
Net pension liability adjustment | (21.4 | ) | — | 1.1 | (20.3 | ) | ||||||||||
Other comprehensive income (loss) before income taxes | 72.3 | — | 2.8 | 75.1 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | 90.9 | — | 1.1 | 92 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 90.9 | — | 1.1 | 92 | ||||||||||||
Other comprehensive income (loss), net of income taxes | (18.6 | ) | — | 1.7 | (16.9 | ) | ||||||||||
Comprehensive income (loss) | (186.5 | ) | — | 5.2 | (181.3 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.6 | — | — | 0.6 | ||||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (187.1 | ) | $ | — | $ | 5.2 | $ | (181.9 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | As of and for the year ended December 31, 2012 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (26.40 | ) | $ | — | $ | 0.61 | $ | (25.90 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (26.40 | ) | $ | — | $ | 0.61 | $ | (25.90 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (2.70 | ) | $ | — | $ | — | $ | (2.70 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (2.70 | ) | $ | — | $ | — | $ | (2.70 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (29.20 | ) | $ | — | $ | 0.61 | $ | (28.60 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (29.20 | ) | $ | — | $ | 0.61 | $ | (28.60 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,770 | 5,770 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,770 | 5,770 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | restated | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | 5.1 | $ | 20.9 | $ | 26 | ||||||||||
Net realized investment (gains) losses | (25.7 | ) | 5.3 | (20.4 | ) | |||||||||||
Policy acquisition costs deferred | (57.5 | ) | (0.9 | ) | (58.4 | ) | ||||||||||
Policy acquisition cost amortization | 113.7 | (10.6 | ) | 103.1 | ||||||||||||
Amortization and depreciation | 8.2 | — | 8.2 | |||||||||||||
Interest credited | 139 | — | 139 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (55.3 | ) | (3.6 | ) | (58.9 | ) | ||||||||||
Gain on debt repurchase | — | — | — | |||||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (86.5 | ) | 0.5 | (86.0 | ) | |||||||||||
Deferred income taxes | 0.3 | (0.3 | ) | — | ||||||||||||
Reinsurance recoverable | (21.2 | ) | 12.8 | (8.4 | ) | |||||||||||
Policy liabilities and accruals | (520.0 | ) | (71.8 | ) | [1] | (591.8 | ) | |||||||||
Dividend obligations | 10.8 | 46.3 | [1] | 57.1 | ||||||||||||
Pension and post-employment liabilities | (14.1 | ) | — | (14.1 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (3.2 | ) | 1.1 | (2.1 | ) | |||||||||||
Other operating activities, net [2] | 59.8 | 0.3 | 60.1 | |||||||||||||
Cash provided by (used for) operating activities | (446.6 | ) | — | (446.6 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (2,501.1 | ) | 40.4 | [3] | (2,460.7 | ) | ||||||||||
Available-for-sale equity securities | (19.2 | ) | (40.4 | ) | [3] | (59.6 | ) | |||||||||
Short-term investments | (1,559.7 | ) | — | (1,559.7 | ) | |||||||||||
Derivative instruments | (101.9 | ) | — | (101.9 | ) | |||||||||||
Fair value and other investments [4] | (27.0 | ) | — | (27.0 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 2,137.20 | (6.5 | ) | [3] | 2,130.70 | |||||||||||
Available-for-sale equity securities | 6.9 | 6.5 | [3] | 13.4 | ||||||||||||
Short-term investments | 1,909.20 | — | 1,909.20 | |||||||||||||
Derivative instruments | 49.5 | — | 49.5 | |||||||||||||
Fair value and other investments [4] | 26.6 | — | 26.6 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (72.4 | ) | — | (72.4 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 146.8 | — | 146.8 | |||||||||||||
Policy loans, net | 80.8 | — | 80.8 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (10.4 | ) | — | (10.4 | ) | |||||||||||
Cash provided by (used for) investing activities | 65.3 | — | 65.3 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions) | As of and for the year ended December 31, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | restated | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 1,355.00 | — | 1,355.00 | |||||||||||||
Policyholder withdrawals | (1,140.4 | ) | — | (1,140.4 | ) | |||||||||||
Net transfers (to) from separate accounts | 412.9 | — | 412.9 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 4.5 | — | 4.5 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 632 | — | 632 | |||||||||||||
Change in cash and cash equivalents | 250.7 | — | 250.7 | |||||||||||||
Change in cash included in discontinued operations assets | (0.7 | ) | — | (0.7 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 496.4 | $ | — | $ | 496.4 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (5.4 | ) | $ | — | $ | (5.4 | ) | ||||||||
Interest expense on indebtedness paid | $ | (27.9 | ) | $ | — | $ | (27.9 | ) | ||||||||
Non-Cash Transactions During the Period | ||||||||||||||||
Investment exchanges | $ | 98.8 | $ | — | $ | 98.8 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (168.5 | ) | $ | 3.5 | $ | (165.0 | ) | ||||||||
Net realized investment (gains) losses | 17.4 | 6.3 | 23.7 | |||||||||||||
Policy acquisition costs deferred | (58.1 | ) | — | (58.1 | ) | |||||||||||
Policy acquisition cost amortization | 200 | (3.9 | ) | 196.1 | ||||||||||||
Amortization and depreciation | 12 | — | 12 | |||||||||||||
Interest credited | 123.2 | — | 123.2 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (60.8 | ) | 1 | (59.8 | ) | |||||||||||
Gain on debt repurchase | (11.9 | ) | — | (11.9 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (123.2 | ) | 0.4 | (122.8 | ) | |||||||||||
Deferred income taxes | (19.8 | ) | (0.7 | ) | (20.5 | ) | ||||||||||
Reinsurance recoverable | (19.2 | ) | (3.5 | ) | (22.7 | ) | ||||||||||
Policy liabilities and accruals | (426.9 | ) | 1.5 | (425.4 | ) | |||||||||||
Dividend obligations | 82.9 | (5.6 | ) | 77.3 | ||||||||||||
Pension and post-employment liabilities | (20.8 | ) | — | (20.8 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (11.8 | ) | — | (11.8 | ) | |||||||||||
Other operating activities, net [1] | (35.3 | ) | 1 | (34.3 | ) | |||||||||||
Cash provided by (used for) operating activities | (520.8 | ) | — | (520.8 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (1,796.9 | ) | — | (1,796.9 | ) | |||||||||||
Available-for-sale equity securities | (10.9 | ) | — | (10.9 | ) | |||||||||||
Short-term investments | (1,814.0 | ) | — | (1,814.0 | ) | |||||||||||
Derivative instruments | (50.8 | ) | — | (50.8 | ) | |||||||||||
Fair value and other investments [3] | (38.7 | ) | — | (38.7 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 1,880.90 | (9.9 | ) | [2] | 1,871.00 | |||||||||||
Available-for-sale equity securities | 12.5 | 9.9 | [2] | 22.4 | ||||||||||||
Short-term investments | 1,382.70 | — | 1,382.70 | |||||||||||||
Derivative instruments | 26.7 | — | 26.7 | |||||||||||||
Fair value and other investments [3] | 49.3 | — | 49.3 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (101.8 | ) | — | (101.8 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 138.4 | — | 138.4 | |||||||||||||
Policy loans, net | 126.5 | — | 126.5 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (7.7 | ) | — | (7.7 | ) | |||||||||||
Cash provided by (used for) investing activities | (203.8 | ) | — | (203.8 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions) | As of and for the year ended December 31, 2012 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposit fund deposits | 1,597.40 | — | 1,597.40 | |||||||||||||
Policyholder deposit fund withdrawals | (1,138.8 | ) | — | (1,138.8 | ) | |||||||||||
Net transfers (to) from separate accounts | 379.8 | — | 379.8 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 1.3 | — | 1.3 | |||||||||||||
Other financing activities, net | (39.6 | ) | — | (39.6 | ) | |||||||||||
Cash provided by (used for) financing activities | 800.1 | — | 800.1 | |||||||||||||
Change in cash and cash equivalents | 75.5 | — | 75.5 | |||||||||||||
Change in cash included in discontinued operations assets | 2.7 | — | 2.7 | |||||||||||||
Cash and cash equivalents, beginning of period | 168.2 | — | 168.2 | |||||||||||||
Cash and cash equivalents, end of period | $ | 246.4 | $ | — | $ | 246.4 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (18.4 | ) | $ | — | $ | (18.4 | ) | ||||||||
Interest expense on indebtedness paid | $ | (30.4 | ) | $ | — | $ | (30.4 | ) | ||||||||
Non-Cash Transactions During the Period | ||||||||||||||||
Investment exchanges | $ | 96 | $ | — | $ | 96 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[2] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[3] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | restated | ||||||||||||||
COMMON STOCK: [1] | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Adjustment for reverse stock split | — | — | — | |||||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | — | — | — | |||||||||||||
Adjustment for reverse stock split | — | — | — | |||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | 64.1 | (5.3 | ) | 58.8 | ||||||||||||
Balance, end of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | 5.1 | 20.9 | 26 | |||||||||||||
Balance, end of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
TREASURY STOCK, AT COST: [1] | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Treasury shares purchased | — | — | — | |||||||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | 69.2 | 15.6 | 84.8 | |||||||||||||
Balance, end of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Net income (loss) attributable to noncontrolling interests | (0.4 | ) | 1.1 | 0.7 | ||||||||||||
Contributions to noncontrolling interests | 4.6 | — | 4.6 | |||||||||||||
Distributions from noncontrolling interests | (0.2 | ) | — | (0.2 | ) | |||||||||||
Issuance of Saybrus shares to noncontrolling interests | — | — | — | |||||||||||||
Balance, end of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | 73.2 | 16.7 | 89.9 | |||||||||||||
Stockholders’ equity, end of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: [1] | ||||||||||||||||
Balance, beginning of period | $ | 1.3 | $ | — | $ | 1.3 | ||||||||||
Adjustment for reverse stock split | (1.2 | ) | — | (1.2 | ) | |||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,630.50 | $ | — | $ | 2,630.50 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | 1.4 | — | 1.4 | |||||||||||||
Adjustment for reverse stock split | 1.2 | — | 1.2 | |||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (230.7 | ) | $ | 3.8 | $ | (226.9 | ) | ||||||||
Other comprehensive income (loss) | (18.6 | ) | 1.7 | (16.9 | ) | |||||||||||
Balance, end of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||
Balance, beginning of period | $ | (1,528.7 | ) | $ | (8.1 | ) | $ | (1,536.8 | ) | |||||||
Net income (loss) | (168.5 | ) | 3.5 | (165.0 | ) | |||||||||||
Balance, end of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
TREASURY STOCK, AT COST: [1] | ||||||||||||||||
Balance, beginning of period | $ | (179.5 | ) | $ | — | $ | (179.5 | ) | ||||||||
Treasury shares purchased | (3.4 | ) | — | (3.4 | ) | |||||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 692.9 | $ | (4.3 | ) | $ | 688.6 | |||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (189.1 | ) | 5.2 | (183.9 | ) | |||||||||||
Balance, end of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 2.8 | $ | — | $ | 2.8 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 0.6 | — | 0.6 | |||||||||||||
Contributions to noncontrolling interests | 4.7 | — | 4.7 | |||||||||||||
Distributions from noncontrolling interests | (1.4 | ) | — | (1.4 | ) | |||||||||||
Issuance of Saybrus shares to noncontrolling interests | — | — | — | |||||||||||||
Balance, end of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 695.7 | $ | (4.3 | ) | $ | 691.4 | |||||||||
Change in stockholders’ equity | (185.2 | ) | 5.2 | (180.0 | ) | |||||||||||
Stockholders’ equity, end of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Schedule of Insurance Contract Assumptions Used | The following table summarizes the most significant assumptions used in the categories set forth below: | ||||
Significant Assumption | Product | Explanation and Derivation | |||
Separate account investment return | Variable Annuities | Separate account return assumptions are derived from the long-term returns observed in the asset classes in which the separate accounts are invested. Short-term deviations from the long-term expectations are expected to revert to the long-term assumption over five years. | |||
(7.9% long-term return assumption) | |||||
Variable Universal Life | |||||
(8.0% long-term return assumption) | |||||
Interest rates and default rates | Fixed and Indexed Annuities | Investment returns are based on the current yields and maturities of our fixed income portfolio combined with expected reinvestment rates given current market interest rates. Reinvestment rates are assumed to revert to long-term rates implied by the forward yield curve and long-term default rates. Contractually permitted future changes in credited rates are assumed to help support investment margins. | |||
Universal Life | |||||
Participating Life | |||||
Mortality / longevity | Universal Life | Mortality assumptions are based on Company experience over a rolling five-year period plus supplemental data from industry sources and trends. A mortality improvement assumption is also incorporated into the overall mortality table. These assumptions can vary by issue age, gender, underwriting class and policy duration. | |||
Variable Universal Life | |||||
Fixed and Indexed Annuities | |||||
Participating Life | |||||
Significant Assumption | Product | Explanation and Derivation | |||
Policyholder behavior – policy persistency | Universal Life | Policy persistency assumptions vary by product and policy year and are updated based on recently observed experience. Policyholders are generally assumed to behave rationally; hence rates are typically lower when surrender penalties are in effect or when policy benefits are more valuable. | |||
Variable Universal Life | |||||
Variable Annuities | |||||
Fixed and Indexed Annuities | |||||
Participating Life | |||||
Policyholder behavior – premium persistency | Universal Life | Future premiums and related fees are projected based on contractual terms, product illustrations at the time of sale and expected policy lapses without value. Assumptions are updated based on recently observed experience and include anticipated changes in behavior based on changes in policy charges if the Company has a high degree of confidence that such changes will be implemented (e.g., change in cost of insurance (“COI”) charges). | |||
Variable Universal Life | |||||
Expenses | All products | Projected maintenance expenses to administer policies in force are based on annually updated studies of expenses incurred. | |||
Reinsurance costs / recoveries | Universal Life | Projected reinsurance costs are based on treaty terms currently in force. Recoveries are based on the Company’s assumed mortality and treaty terms. Treaty recaptures are based on contract provisions and management’s intentions. | |||
Variable Universal Life | |||||
Variable Annuities | |||||
Participating Life |
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Reinsurance activity | Other reinsurance activity is shown below. | |||||||||||
Direct Business and Reinsurance in Continuing Operations: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Direct premiums | $ | 473.2 | $ | 501.8 | $ | 565.3 | ||||||
Premiums assumed | 9.7 | 11.8 | 11.8 | |||||||||
Premiums ceded [1] | (150.8 | ) | (162.0 | ) | (174.8 | ) | ||||||
Premiums | $ | 332.1 | $ | 351.6 | $ | 402.3 | ||||||
Percentage of amount assumed to net premiums | 2.90% | 3.40% | 2.90% | |||||||||
Direct policy benefits incurred | $ | 785.3 | $ | 819.1 | $ | 812.9 | ||||||
Policy benefits assumed | 42.5 | 22.7 | 68.7 | |||||||||
Policy benefits ceded | (241.9 | ) | (265.4 | ) | (270.3 | ) | ||||||
Premiums paid [2] | 95.8 | 83.1 | 96.9 | |||||||||
Policy benefits [3] | $ | 681.7 | $ | 659.5 | $ | 708.2 | ||||||
Direct life insurance in force | $ | 95,811.40 | $ | 102,405.60 | $ | 111,682.70 | ||||||
Life insurance in force assumed | 1,721.00 | 1,678.20 | 1,756.70 | |||||||||
Life insurance in force ceded | (58,022.4 | ) | (62,553.8 | ) | (69,674.5 | ) | ||||||
Life insurance in force | $ | 39,510.00 | $ | 41,530.00 | $ | 43,764.90 | ||||||
Percentage of amount assumed to net insurance in force | 4.40% | 4.00% | 4.00% | |||||||||
——————— | ||||||||||||
[1] | Primarily represents premiums ceded to reinsurers related to traditional whole life and term insurance policies. | |||||||||||
[2] | For universal life and variable universal life contracts, premiums paid to reinsurers are reflected within policy benefits. See Note 3 to these consolidated financial statements for additional information regarding significant accounting policies. | |||||||||||
[3] | Policy benefit amounts above exclude changes in reserves, interest credited to policyholders and other items, which total $437.5 million, $305.6 million and $454.2 million, net of reinsurance, for the years ended December 31, 2014, 2013 and 2012, respectively. |
Demutualization_and_Closed_Blo1
Demutualization and Closed Block (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Closed Block Assets and Liabilities | ||||||||||||
Closed Block Assets and Liabilities: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | Inception | |||||||||
As restated | ||||||||||||
Available-for-sale debt securities | $ | 5,877.00 | $ | 5,753.40 | $ | 4,773.10 | ||||||
Available-for-sale equity securities | 91.7 | 76.5 | — | |||||||||
Short-term investments | — | 106.9 | — | |||||||||
Limited partnerships and other investments | 343.4 | 345 | 399 | |||||||||
Policy loans | 1,159.10 | 1,201.60 | 1,380.00 | |||||||||
Fair value investments | 59.8 | 42.5 | — | |||||||||
Total closed block investments | 7,531.00 | 7,525.90 | 6,552.10 | |||||||||
Cash and cash equivalents | 89.6 | 78.2 | — | |||||||||
Accrued investment income | 80.7 | 81.7 | 106.8 | |||||||||
Reinsurance recoverable | 19.1 | 26.8 | — | |||||||||
Deferred income taxes, net | 290.3 | 285.4 | 389.4 | |||||||||
Other closed block assets | 67.4 | 58.2 | 41.4 | |||||||||
Total closed block assets | 8,078.10 | 8,056.20 | 7,089.70 | |||||||||
Policy liabilities and accruals | 8,058.20 | 8,258.40 | 8,301.70 | |||||||||
Policyholder dividends payable | 201.9 | 207.8 | 325.1 | |||||||||
Policy dividend obligation | 714.8 | 497.7 | — | |||||||||
Other closed block liabilities | 48 | 65.9 | 12.3 | |||||||||
Total closed block liabilities | 9,022.90 | 9,029.80 | 8,639.10 | |||||||||
Excess of closed block liabilities over closed block assets [1] | 944.8 | 973.6 | $ | 1,549.40 | ||||||||
Less: Excess of closed block assets over closed block liabilities attributable to | (11.8 | ) | (8.0 | ) | ||||||||
noncontrolling interests | ||||||||||||
Excess of closed block liabilities over closed block assets attributable to | $ | 956.6 | $ | 981.6 | ||||||||
The Phoenix Companies, Inc. | ||||||||||||
——————— | ||||||||||||
[1] | The maximum future earnings summary to inure to the benefit of the stockholders is represented by the excess of closed block liabilities over closed block assets. All unrealized investment gains (losses), net of income tax, have been allocated to the policyholder dividend obligation. | |||||||||||
Closed Block Revenues and Expenses and Changes in Policyholder Dividend Obligations | ||||||||||||
Closed Block Revenues and Expenses and | For the years ended December 31, | |||||||||||
Changes in Policyholder Dividend Obligations: | ||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Closed block revenues | ||||||||||||
Premiums | $ | 301.8 | $ | 317.8 | $ | 369.5 | ||||||
Net investment income | 411.1 | 409.6 | 453.3 | |||||||||
Net realized investment gains (losses) | 12.8 | 16.6 | 9.2 | |||||||||
Total revenues | 725.7 | 744 | 832 | |||||||||
Policy benefits | 438.4 | 464.5 | 493.8 | |||||||||
Other operating expenses | 2.7 | 5.3 | 3 | |||||||||
Total benefits and expenses | 441.1 | 469.8 | 496.8 | |||||||||
Closed block contribution to income before dividends and income taxes | 284.6 | 274.2 | 335.2 | |||||||||
Policyholder dividends | (244.6 | ) | (235.7 | ) | (291.8 | ) | ||||||
Closed block contribution to income before income taxes | 40 | 38.5 | 43.4 | |||||||||
Applicable income tax expense | 13.3 | 13.4 | 15 | |||||||||
Closed block contribution to income | 26.7 | 25.1 | 28.4 | |||||||||
Less: Closed block contribution to income attributable to noncontrolling interests | 2 | 0.3 | 0.5 | |||||||||
Closed block contribution to income attributable to | $ | 24.7 | $ | 24.8 | $ | 27.9 | ||||||
The Phoenix Companies, Inc. | ||||||||||||
Policyholder dividend obligation | ||||||||||||
Policyholder dividends provided through earnings | $ | 244.6 | $ | 235.7 | $ | 291.8 | ||||||
Policyholder dividends provided through OCI | 138.8 | (308.4 | ) | 165.7 | ||||||||
Additions to (reductions of) policyholder dividend liabilities | 383.4 | (72.7 | ) | 457.5 | ||||||||
Policyholder dividends paid | (172.2 | ) | (178.6 | ) | (214.5 | ) | ||||||
Increase (decrease) in policyholder dividend liabilities | 211.2 | (251.3 | ) | 243 | ||||||||
Policyholder dividend liabilities, beginning of period | 705.5 | 956.8 | 713.8 | |||||||||
Policyholder dividend liabilities, end of period | 916.7 | 705.5 | 956.8 | |||||||||
Policyholder dividends payable, end of period | (201.9 | ) | (207.8 | ) | (223.8 | ) | ||||||
Policyholder dividend obligation, end of period | $ | 714.8 | $ | 497.7 | $ | 733 | ||||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||||||||||||
Deferred Policy Acquisition Costs | The balances of and changes in DAC as of and for the years ended December 31, are as follows: | |||||||||||
Changes in Deferred Policy Acquisition Costs: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Balance, beginning of period | $ | 947.8 | $ | 898.1 | $ | 1,114.80 | ||||||
Policy acquisition costs deferred | 72.9 | 58.4 | 58.1 | |||||||||
Costs amortized to expenses: | ||||||||||||
Recurring costs | (129.5 | ) | (117.9 | ) | (141.3 | ) | ||||||
Assumption unlocking | (4.4 | ) | 25.4 | (55.6 | ) | |||||||
Realized investment gains (losses) | 14.3 | (10.6 | ) | 0.8 | ||||||||
Offsets to net unrealized investment gains or losses included in AOCI | (52.5 | ) | 94.4 | (78.7 | ) | |||||||
Balance, end of period | $ | 848.6 | $ | 947.8 | $ | 898.1 | ||||||
Sales_Inducements_Tables
Sales Inducements (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Sales Inducements [Abstract] | ||||||||||||
Changes in Deferred Sales Inducement Activity | The balances of and changes in sales inducements as of and for the years ended December 31, are as follows: | |||||||||||
Changes in Deferred Sales Inducement Activity: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Balance, beginning of period | $ | 77.4 | $ | 63.9 | $ | 51.2 | ||||||
Sales inducements deferred | 17.5 | 10.6 | 15.4 | |||||||||
Amortization charged to income | (8.0 | ) | (8.5 | ) | (5.7 | ) | ||||||
Offsets to net unrealized investment gains or losses included in AOCI | (7.5 | ) | 11.4 | 3 | ||||||||
Balance, end of period | $ | 79.4 | $ | 77.4 | $ | 63.9 | ||||||
Investing_Activities_Tables
Investing Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Fair Value and Cost of Securities | ||||||||||||||||||||||||
Fair Value and Cost of Securities: | As of December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Amortized | Gross | Gross | Fair | OTTI | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Recognized | ||||||||||||||||||||
Gains [1] | Losses [1] | in AOCI [2] | ||||||||||||||||||||||
U.S. government and agency | $ | 388.3 | $ | 55.2 | $ | (0.1 | ) | $ | 443.4 | $ | — | |||||||||||||
State and political subdivision | 518.3 | 42.1 | (2.5 | ) | 557.9 | (1.1 | ) | |||||||||||||||||
Foreign government | 205.8 | 26.5 | (1.4 | ) | 230.9 | — | ||||||||||||||||||
Corporate | 7,942.70 | 530 | (74.6 | ) | 8,398.10 | (8.3 | ) | |||||||||||||||||
Commercial mortgage-backed (“CMBS”) | 602.9 | 48.4 | (0.1 | ) | 651.2 | (1.2 | ) | |||||||||||||||||
Residential mortgage-backed (“RMBS”) | 1,862.50 | 81.6 | (11.9 | ) | 1,932.20 | (25.5 | ) | |||||||||||||||||
Collateralized debt obligation (“CDO”) / | 197.5 | 2.7 | (3.3 | ) | 196.9 | (13.9 | ) | |||||||||||||||||
collateralized loan obligation (“CLO”) | ||||||||||||||||||||||||
Other asset-backed (“ABS”) | 260 | 13.4 | (4.7 | ) | 268.7 | (1.8 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,978.00 | $ | 799.9 | $ | (98.6 | ) | $ | 12,679.30 | $ | (51.8 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,451.30 | $ | 458.1 | $ | (32.4 | ) | $ | 5,877.00 | $ | (14.7 | ) | ||||||||||||
Available-for-sale equity securities | $ | 156 | $ | 25.1 | $ | (1.6 | ) | $ | 179.5 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 80.5 | $ | 12.3 | $ | (1.1 | ) | $ | 91.7 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Fair Value and Cost of Securities: | As of December 31, 2013, as restated | |||||||||||||||||||||||
($ in millions) | Amortized | Gross | Gross | Fair | OTTI | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Recognized | ||||||||||||||||||||
Gains [1] | Losses [1] | in AOCI [2] | ||||||||||||||||||||||
U.S. government and agency | $ | 370.2 | $ | 36.2 | $ | (2.6 | ) | $ | 403.8 | $ | — | |||||||||||||
State and political subdivision | 402.5 | 18.2 | (10.2 | ) | 410.5 | (1.1 | ) | |||||||||||||||||
Foreign government | 194 | 16.6 | (0.7 | ) | 209.9 | — | ||||||||||||||||||
Corporate | 7,266.10 | 423 | (135.7 | ) | 7,553.40 | (8.8 | ) | |||||||||||||||||
CMBS | 681.2 | 35.8 | (3.2 | ) | 713.8 | (3.4 | ) | |||||||||||||||||
RMBS | 1,893.00 | 42 | (37.4 | ) | 1,897.60 | (26.7 | ) | |||||||||||||||||
CDO/CLO | 223.4 | 5.8 | (5.1 | ) | 224.1 | (15.3 | ) | |||||||||||||||||
Other ABS | 311.1 | 14.8 | (7.5 | ) | 318.4 | (1.8 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,341.50 | $ | 592.4 | $ | (202.4 | ) | $ | 11,731.50 | $ | (57.1 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,465.00 | $ | 362.6 | $ | (74.2 | ) | $ | 5,753.40 | $ | (16.5 | ) | ||||||||||||
Available-for-sale equity securities | $ | 119.3 | $ | 23.9 | $ | (5.2 | ) | $ | 138 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 69.3 | $ | 10.1 | $ | (2.9 | ) | $ | 76.5 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Maturities of Debt Securities | ||||||||||||||||||||||||
Maturities of Debt Securities: | As of December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 374.3 | $ | 381.2 | ||||||||||||||||||||
Due after one year through five years | 2,074.10 | 2,204.80 | ||||||||||||||||||||||
Due after five years through ten years | 3,528.60 | 3,673.30 | ||||||||||||||||||||||
Due after ten years | 3,078.10 | 3,371.00 | ||||||||||||||||||||||
CMBS/RMBS/ABS/CDO/CLO [1] | 2,922.90 | 3,049.00 | ||||||||||||||||||||||
Total | $ | 11,978.00 | $ | 12,679.30 | ||||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | CMBS, RMBS, ABS, CDO and CLO are not listed separately in the table as each security does not have a single fixed maturity. | |||||||||||||||||||||||
Sales of Available-for-Sale Securities | The following table depicts the sources of available-for-sale investment proceeds and related investment gains (losses). | |||||||||||||||||||||||
Sales of Available-for-Sale Securities: | As of December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Debt securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 446.1 | $ | 532.2 | $ | 346.5 | ||||||||||||||||||
Proceeds from maturities/repayments | 1,225.30 | 1,544.00 | 1,517.30 | |||||||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 41.6 | 45.1 | 46.4 | |||||||||||||||||||||
Gross investment losses from sales and maturities | (17.6 | ) | (2.2 | ) | (11.1 | ) | ||||||||||||||||||
Equity securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 24.2 | $ | 12.7 | $ | 22.5 | ||||||||||||||||||
Gross investment gains from sales | 10.4 | 4.2 | 14.4 | |||||||||||||||||||||
Gross investment losses from sales | (1.0 | ) | (3.8 | ) | (0.4 | ) | ||||||||||||||||||
Aging of Temporarily Impaired Securities | ||||||||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Less than 12 months | Greater than 12 months | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 2.7 | $ | (0.1 | ) | $ | 2.7 | $ | (0.1 | ) | ||||||||||
State and political subdivision | 11.6 | (0.6 | ) | 31.1 | (1.9 | ) | 42.7 | (2.5 | ) | |||||||||||||||
Foreign government | 15.7 | (1.4 | ) | — | — | 15.7 | (1.4 | ) | ||||||||||||||||
Corporate | 643 | (23.5 | ) | 654.3 | (51.1 | ) | 1,297.30 | (74.6 | ) | |||||||||||||||
CMBS | 12.6 | — | 10.9 | (0.1 | ) | 23.5 | (0.1 | ) | ||||||||||||||||
RMBS | 8.4 | (0.2 | ) | 226.7 | (11.7 | ) | 235.1 | (11.9 | ) | |||||||||||||||
CDO/CLO | 57.9 | (0.5 | ) | 96.3 | (2.8 | ) | 154.2 | (3.3 | ) | |||||||||||||||
Other ABS | 13.8 | (0.1 | ) | 16 | (4.6 | ) | 29.8 | (4.7 | ) | |||||||||||||||
Debt securities | 763 | (26.3 | ) | 1,038.00 | (72.3 | ) | 1,801.00 | (98.6 | ) | |||||||||||||||
Equity securities | 5.6 | (0.7 | ) | 15.2 | (0.9 | ) | 20.8 | (1.6 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 768.6 | $ | (27.0 | ) | $ | 1,053.20 | $ | (73.2 | ) | $ | 1,821.80 | $ | (100.2 | ) | |||||||||
Amounts inside the closed block | $ | 266.8 | $ | (11.7 | ) | $ | 387.8 | $ | (21.8 | ) | $ | 654.6 | $ | (33.5 | ) | |||||||||
Amounts outside the closed block | $ | 501.8 | $ | (15.3 | ) | $ | 665.4 | $ | (51.4 | ) | $ | 1,167.20 | $ | (66.7 | ) | |||||||||
Amounts outside the closed block | $ | 84.2 | $ | (4.1 | ) | $ | 50.4 | $ | (6.6 | ) | $ | 134.6 | $ | (10.7 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 158 | 211 | 369 | |||||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of December 31, 2013, as restated | |||||||||||||||||||||||
($ in millions) | Less than 12 months | Greater than 12 months | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | 48 | $ | (2.1 | ) | $ | 3 | $ | (0.5 | ) | $ | 51 | $ | (2.6 | ) | |||||||||
State and political subdivision | 120.1 | (7.6 | ) | 10.7 | (2.6 | ) | 130.8 | (10.2 | ) | |||||||||||||||
Foreign government | 41 | (0.7 | ) | — | — | 41 | (0.7 | ) | ||||||||||||||||
Corporate | 1,701.50 | (86.5 | ) | 326.8 | (49.2 | ) | 2,028.30 | (135.7 | ) | |||||||||||||||
CMBS | 93.7 | (2.7 | ) | 10.4 | (0.5 | ) | 104.1 | (3.2 | ) | |||||||||||||||
RMBS | 773.5 | (24.4 | ) | 144.4 | (13.0 | ) | 917.9 | (37.4 | ) | |||||||||||||||
CDO/CLO | 64.1 | (0.6 | ) | 97.1 | (4.5 | ) | 161.2 | (5.1 | ) | |||||||||||||||
Other ABS | 22.3 | (0.1 | ) | 29.5 | (7.4 | ) | 51.8 | (7.5 | ) | |||||||||||||||
Debt securities | 2,864.20 | (124.7 | ) | 621.9 | (77.7 | ) | 3,486.10 | (202.4 | ) | |||||||||||||||
Equity securities | 55.3 | (4.3 | ) | 3.7 | (0.9 | ) | 59 | (5.2 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 2,919.50 | $ | (129.0 | ) | $ | 625.6 | $ | (78.6 | ) | $ | 3,545.10 | $ | (207.6 | ) | |||||||||
Amounts inside the closed block | $ | 1,172.70 | $ | (48.7 | ) | $ | 238.4 | $ | (28.4 | ) | $ | 1,411.10 | $ | (77.1 | ) | |||||||||
Amounts outside the closed block | $ | 1,746.80 | $ | (80.3 | ) | $ | 387.2 | $ | (50.2 | ) | $ | 2,134.00 | $ | (130.5 | ) | |||||||||
Amounts outside the closed block | $ | 76.4 | $ | (3.4 | ) | $ | 52.9 | $ | (7.8 | ) | $ | 129.3 | $ | (11.2 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 475 | 156 | 631 | |||||||||||||||||||||
Credit Losses Recognized in Earnings on Debt Securities | The following table presents a roll-forward of pre-tax credit losses recognized in earnings related to available-for-sale debt securities for which a portion of the OTTI was recognized in OCI. | |||||||||||||||||||||||
Credit Losses Recognized in Earnings on Available-for-Sale Debt Securities | As of December 31, | |||||||||||||||||||||||
for which a Portion of the OTTI Loss was Recognized in OCI: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Balance, beginning of period | $ | (71.4 | ) | $ | (72.6 | ) | $ | (79.1 | ) | |||||||||||||||
Add: Credit losses on securities not previously impaired [1] | — | (1.1 | ) | (6.7 | ) | |||||||||||||||||||
Add: Credit losses on securities previously impaired [1] | — | (4.1 | ) | (13.3 | ) | |||||||||||||||||||
Less: Credit losses on securities impaired due to intent to sell | — | — | — | |||||||||||||||||||||
Less: Credit losses on securities sold | 19 | 6.4 | 26.5 | |||||||||||||||||||||
Less: Increases in cash flows expected on previously impaired securities | — | — | — | |||||||||||||||||||||
Balance, end of period | $ | (52.4 | ) | $ | (71.4 | ) | $ | (72.6 | ) | |||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Additional credit losses on securities for which a portion of the OTTI loss was recognized in AOCI are included within net OTTI losses recognized in earnings on the consolidated statements of income and comprehensive income. | |||||||||||||||||||||||
Limited Partnerships and Other Investments | Limited partnerships and other investments | |||||||||||||||||||||||
Limited Partnerships and Other Investments: | As of December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
As restated | ||||||||||||||||||||||||
Limited partnerships | ||||||||||||||||||||||||
Private equity funds | $ | 241.1 | $ | 240.8 | ||||||||||||||||||||
Mezzanine funds | 162.4 | 180.4 | ||||||||||||||||||||||
Infrastructure funds | 38.9 | 38.1 | ||||||||||||||||||||||
Hedge funds | 10.7 | 13 | ||||||||||||||||||||||
Mortgage and real estate funds | 3.7 | 3.3 | ||||||||||||||||||||||
Leveraged leases | 11.8 | 16.8 | ||||||||||||||||||||||
Direct equity investments | 49.6 | 44.5 | ||||||||||||||||||||||
Life settlements | 22.4 | 21.6 | ||||||||||||||||||||||
Other alternative assets | 2.2 | 2.8 | ||||||||||||||||||||||
Limited partnerships and other investments | $ | 542.8 | $ | 561.3 | ||||||||||||||||||||
Amounts applicable to the closed block | $ | 343.4 | $ | 345 | ||||||||||||||||||||
Aggregated Summarized Balance Sheet Information of Equity Method Investees | The following tables present the aggregated summarized financial information of certain equity method investees in limited partnerships and LLCs. For all three periods, the equity in earnings that we record through net investment income of these equity method investees in aggregate exceeds 10% of the Company’s income from continuing operations before income taxes. | |||||||||||||||||||||||
Aggregated Summarized Balance Sheet Information of Equity Method Investees: | As of December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||||||
As restated | ||||||||||||||||||||||||
Total assets | $ | 58,694.10 | $ | 56,434.10 | ||||||||||||||||||||
Total liabilities | $ | 1,630.20 | $ | 1,654.00 | ||||||||||||||||||||
Aggregated Net Investment Income: | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Total investment revenues | $ | 2,329.90 | $ | 2,759.70 | $ | 2,389.60 | ||||||||||||||||||
Net income | $ | 5,869.20 | $ | 9,297.30 | $ | 8,315.20 | ||||||||||||||||||
Investment in Leveraged Leases | Investment in leveraged leases, included in limited partnerships and other investments, consisted of the following: | |||||||||||||||||||||||
Investment in Leveraged Leases: | 2014 | 2013 | ||||||||||||||||||||||
($ in millions) | As restated | |||||||||||||||||||||||
Rental receivables, net | $ | 4.9 | $ | 10.1 | ||||||||||||||||||||
Estimated residual values | 7.3 | 7.3 | ||||||||||||||||||||||
Unearned income | (0.4 | ) | (0.6 | ) | ||||||||||||||||||||
Investment in leveraged leases | $ | 11.8 | $ | 16.8 | ||||||||||||||||||||
The components of income from investment in leveraged leases, excluding net investment gains (losses) were as follows: | ||||||||||||||||||||||||
Investment Income after Income Tax from | As of December 31, | |||||||||||||||||||||||
Investment in Leveraged Leases: | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Income from investment in leveraged leases | $ | 0.1 | $ | 0.1 | $ | 0.2 | ||||||||||||||||||
Less: Income tax expense on leveraged leases | — | — | (0.1 | ) | ||||||||||||||||||||
Investment income after income tax from investment in leveraged leases | $ | 0.1 | $ | 0.1 | $ | 0.1 | ||||||||||||||||||
Carrying value and change in investment balance of non-consolidated direct equity investments | The following table presents the carrying value and change in investment balance of non-consolidated direct equity investments: | |||||||||||||||||||||||
Carrying Value and Change in Investment Balance of | ||||||||||||||||||||||||
Non-Consolidated Direct Equity Investments: | ||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
Balance as of December 31, 2012, as revised | $ | 30.7 | ||||||||||||||||||||||
Net contributions (distributions) | 6.8 | |||||||||||||||||||||||
Net income (loss) | 7 | |||||||||||||||||||||||
Balance as of December 31, 2013, as restated | 44.5 | |||||||||||||||||||||||
Net contributions (distributions) | (2.7 | ) | ||||||||||||||||||||||
Net income (loss) | 7.8 | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 49.6 | ||||||||||||||||||||||
Remaining Life Expectancy of Insured | ||||||||||||||||||||||||
Remaining Life Expectancy of Insured: | Number of | Carrying | Face Value | |||||||||||||||||||||
($ in millions) | Contracts | Value | (Death Benefits) | |||||||||||||||||||||
0-5 years | 5 | $ | 13.7 | $ | 22 | |||||||||||||||||||
Thereafter | 8 | 8.7 | 37.1 | |||||||||||||||||||||
Total | 13 | $ | 22.4 | $ | 59.1 | |||||||||||||||||||
Sources of Net Investment Income | ||||||||||||||||||||||||
Sources of Net Investment Income: | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Debt securities [1] | $ | 581.6 | $ | 565 | $ | 604.8 | ||||||||||||||||||
Equity securities | 9.2 | 7.2 | 4.3 | |||||||||||||||||||||
Limited partnerships and other investments | 65.3 | 58.3 | 63.7 | |||||||||||||||||||||
Policy loans | 167.4 | 160 | 161.5 | |||||||||||||||||||||
Fair value investments | 25.4 | 14.1 | 9.4 | |||||||||||||||||||||
Total investment income | 848.9 | 804.6 | 843.7 | |||||||||||||||||||||
Less: Discontinued operations | 1.1 | 1.3 | 2.1 | |||||||||||||||||||||
Less: Investment expenses | 16.9 | 13.6 | 13.8 | |||||||||||||||||||||
Net investment income | $ | 830.9 | $ | 789.7 | $ | 827.8 | ||||||||||||||||||
Amounts applicable to closed block | $ | 411.1 | $ | 409.6 | $ | 453.3 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes net investment income on short-term investments. | |||||||||||||||||||||||
Sources and Types of Net Realized Investment Gains (Losses) | ||||||||||||||||||||||||
Sources and Types of Net Realized Investment Gains (Losses): | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Total other-than-temporary debt impairments | $ | (5.6 | ) | $ | (7.0 | ) | $ | (45.7 | ) | |||||||||||||||
Portion of losses recognized in OCI | (0.4 | ) | (4.8 | ) | 22.9 | |||||||||||||||||||
Net debt impairments recognized in earnings | $ | (6.0 | ) | $ | (11.8 | ) | $ | (22.8 | ) | |||||||||||||||
Debt security impairments: | ||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | — | ||||||||||||||||||
State and political subdivision | — | — | (0.6 | ) | ||||||||||||||||||||
Foreign government | — | — | — | |||||||||||||||||||||
Corporate | (6.0 | ) | (3.8 | ) | (3.0 | ) | ||||||||||||||||||
CMBS | — | (2.7 | ) | (4.1 | ) | |||||||||||||||||||
RMBS | — | (4.3 | ) | (10.3 | ) | |||||||||||||||||||
CDO/CLO | — | (1.0 | ) | (3.8 | ) | |||||||||||||||||||
Other ABS | — | — | (1.0 | ) | ||||||||||||||||||||
Net debt security impairments | (6.0 | ) | (11.8 | ) | (22.8 | ) | ||||||||||||||||||
Equity security impairments | (2.1 | ) | — | (4.8 | ) | |||||||||||||||||||
Limited partnerships and other investment impairments | — | — | (0.3 | ) | ||||||||||||||||||||
Impairment losses | (8.1 | ) | (11.8 | ) | (27.9 | ) | ||||||||||||||||||
Debt security transaction gains | 41.8 | 45.3 | 46.4 | |||||||||||||||||||||
Debt security transaction losses | (17.7 | ) | (2.2 | ) | (11.1 | ) | ||||||||||||||||||
Equity security transaction gains | 10.4 | 4.2 | 14.4 | |||||||||||||||||||||
Equity security transaction losses | (1.0 | ) | (3.8 | ) | (0.4 | ) | ||||||||||||||||||
Limited partnerships and other investment transaction gains | — | 0.8 | 7.7 | |||||||||||||||||||||
Limited partnerships and other investment transaction losses | (0.7 | ) | (4.6 | ) | (2.5 | ) | ||||||||||||||||||
Net transaction gains (losses) | 32.8 | 39.7 | 54.5 | |||||||||||||||||||||
Derivative instruments | (20.8 | ) | (27.7 | ) | (50.4 | ) | ||||||||||||||||||
Embedded derivatives [1] | (45.9 | ) | 12.2 | 4.9 | ||||||||||||||||||||
Assets valued at fair value | 0.8 | 3.6 | 2.1 | |||||||||||||||||||||
Net realized investment gains (losses), excluding impairment losses | (33.1 | ) | 27.8 | 11.1 | ||||||||||||||||||||
Net realized investment gains (losses), including impairment losses | $ | (41.2 | ) | $ | 16 | $ | (16.8 | ) | ||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity riders. See Note 11 to these consolidated financial statements for additional disclosures. | |||||||||||||||||||||||
Sources of Changes in Net Unrealized Investment Gains | ||||||||||||||||||||||||
Sources of Changes in Net Unrealized Investment Gains (Losses): | For the years ended December 31, | |||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Debt securities | $ | 311.3 | $ | (538.1 | ) | $ | 402.9 | |||||||||||||||||
Equity securities | 4.8 | 2.7 | 7.9 | |||||||||||||||||||||
Other investments | (4.1 | ) | 0.6 | (0.7 | ) | |||||||||||||||||||
Net unrealized investment gains (losses) | $ | 312 | $ | (534.8 | ) | $ | 410.1 | |||||||||||||||||
Net unrealized investment gains (losses) | $ | 312 | $ | (534.8 | ) | $ | 410.1 | |||||||||||||||||
Applicable to closed block policyholder dividend obligation | 138.8 | (308.4 | ) | 165.7 | ||||||||||||||||||||
Applicable to DAC | 52.5 | (94.4 | ) | 78.7 | ||||||||||||||||||||
Applicable to other actuarial offsets | 54.2 | (69.3 | ) | 70.3 | ||||||||||||||||||||
Applicable to deferred income tax expense (benefit) | 35.7 | (20.5 | ) | 92 | ||||||||||||||||||||
Offsets to net unrealized investment gains (losses) | 281.2 | (492.6 | ) | 406.7 | ||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | $ | 30.8 | $ | (42.2 | ) | $ | 3.4 | |||||||||||||||||
Carrying Value of Assets and Liabilities | The following table presents the total assets and total liabilities relating to consolidated VIEs at December 31, 2014 and 2013. | |||||||||||||||||||||||
Carrying Value of Assets and Liabilities for | 31-Dec-14 | December 31, 2013, as restated | ||||||||||||||||||||||
Consolidated Variable Interest Entities: | ||||||||||||||||||||||||
($ in millions) | Assets | Liabilities | Maximum | Assets | Liabilities | Maximum | ||||||||||||||||||
Exposure | Exposure | |||||||||||||||||||||||
to Loss [1] | to Loss [1] | |||||||||||||||||||||||
Debt securities, at fair value [2] | $ | 5.5 | $ | — | $ | 5.1 | $ | 3.6 | $ | — | $ | 3.2 | ||||||||||||
Equity securities, at fair value [2] | 35 | — | 30 | 29.4 | — | 24.7 | ||||||||||||||||||
Cash and cash equivalents | 9.4 | — | 9.3 | 10.8 | — | 10.6 | ||||||||||||||||||
Investment in partnership interests | — | — | — | 0.1 | — | 0.1 | ||||||||||||||||||
Investment in single asset LLCs | 50.6 | — | 36.6 | 24.3 | — | 18.3 | ||||||||||||||||||
Other assets | 0.6 | — | 0.5 | 0.6 | — | 0.5 | ||||||||||||||||||
Total assets of consolidated VIEs | $ | 101.1 | $ | — | $ | 81.5 | $ | 68.8 | $ | — | $ | 57.4 | ||||||||||||
Total liabilities of consolidated VIEs | $ | — | $ | 0.6 | $ | 0.5 | $ | — | $ | 0.8 | $ | 0.6 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the consolidated VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. The maximum exposure to loss above at December 31, 2014 and 2013 excludes unfunded commitments of $11.9 million and $0, respectively. | |||||||||||||||||||||||
[2] | Included in available-for-sale debt and equity securities, at fair value on the consolidated balance sheets. | |||||||||||||||||||||||
Carrying Value of Assets and Liabilities | 31-Dec-14 | December 31, 2013, as restated | ||||||||||||||||||||||
and Maximum Exposure Loss Relating | ||||||||||||||||||||||||
to Variable Interest Entities: | ||||||||||||||||||||||||
($ in millions) | Assets | Liabilities | Maximum | Assets | Liabilities | Maximum | ||||||||||||||||||
Exposure | Exposure | |||||||||||||||||||||||
to Loss [1] | to Loss [1] | |||||||||||||||||||||||
Limited partnerships | $ | 106 | $ | — | $ | 157.8 | $ | 116.7 | $ | — | $ | 171.6 | ||||||||||||
LLCs | 45.5 | — | 45.5 | 55.9 | — | 55.9 | ||||||||||||||||||
Total | $ | 151.5 | $ | — | $ | 203.3 | $ | 172.6 | $ | — | $ | 227.5 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. |
Financing_Activities_Tables
Financing Activities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Indebtedness at Carrying Value | Debt is carried net of original issuer discount as follows: | |||||||||||
Indebtedness at Carrying Value: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
As restated | ||||||||||||
7.15% surplus notes | $ | 126.2 | $ | 126.1 | ||||||||
7.45% senior unsecured bonds | 252.7 | 252.7 | ||||||||||
Total indebtedness | $ | 378.9 | $ | 378.8 | ||||||||
Interest Expense on Indebtedness, including Amortization of Debt Issuance Costs | ||||||||||||
Interest Expense on Indebtedness, including Amortization of Debt Issuance Costs: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
7.15% surplus notes | $ | 9.1 | $ | 9.1 | $ | 11.6 | ||||||
7.45% senior unsecured bonds | 19.2 | 19.2 | 19.2 | |||||||||
Interest expense on indebtedness | $ | 28.3 | $ | 28.3 | $ | 30.8 | ||||||
Separate_Accounts_Death_Benefi1
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives(Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives [Abstract] | ||||||||||||||
Separate Account Investments of Account Balances of Variable Annuity Contracts with Guarantees | ||||||||||||||
Separate Account Investments of Account Balances of Variable Annuity Contracts | As of December 31, | |||||||||||||
with Insurance Guarantees: | ||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
As restated | ||||||||||||||
Debt securities | $ | 375.9 | $ | 433 | ||||||||||
Equity funds | 1,638.60 | 1,920.40 | ||||||||||||
Other | 49.9 | 64.3 | ||||||||||||
Total | $ | 2,064.40 | $ | 2,417.70 | ||||||||||
Changes in Guaranteed Liability Balances | We regularly evaluate estimates used and adjust the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. | |||||||||||||
Changes in Variable Annuity Guaranteed Insurance Benefit | For the year ended | |||||||||||||
Liability Balances: | December 31, 2014 | |||||||||||||
($ in millions) | Annuity | Annuity | ||||||||||||
GMDB | GMIB | |||||||||||||
Balance, beginning of period | $ | 22.7 | $ | 9.8 | ||||||||||
Incurred | 1.8 | 2.1 | ||||||||||||
Paid | (3.7 | ) | (0.2 | ) | ||||||||||
Change due to net unrealized gains or losses included in AOCI | 0.1 | — | ||||||||||||
Assumption unlocking | 0.5 | 5.4 | ||||||||||||
Balance, end of period | $ | 21.4 | $ | 17.1 | ||||||||||
Changes in Variable Annuity Guaranteed Insurance Benefit | For the year ended | |||||||||||||
Liability Balances: | December 31, 2013, as restated | |||||||||||||
($ in millions) | Annuity | Annuity | ||||||||||||
GMDB | GMIB | |||||||||||||
Balance, beginning of period | $ | 15.9 | $ | 21.7 | ||||||||||
Incurred | 2.1 | (3.6 | ) | |||||||||||
Paid | (3.7 | ) | — | |||||||||||
Change due to net unrealized gains or losses included in AOCI | — | (0.1 | ) | |||||||||||
Assumption unlocking | 8.4 | (8.2 | ) | |||||||||||
Balance, end of period | $ | 22.7 | $ | 9.8 | ||||||||||
Changes in Variable Annuity Guaranteed Insurance Benefit | For the year ended | |||||||||||||
Liability Balances: | December 31, 2012, as revised | |||||||||||||
($ in millions) | Annuity | Annuity | ||||||||||||
GMDB | GMIB | |||||||||||||
Balance, beginning of period | $ | 16.4 | $ | 17.6 | ||||||||||
Incurred | 0.6 | 4 | ||||||||||||
Paid | (1.1 | ) | — | |||||||||||
Change due to net unrealized gains or losses included in AOCI | — | 0.3 | ||||||||||||
Assumption unlocking | — | (0.2 | ) | |||||||||||
Balance, end of period | $ | 15.9 | $ | 21.7 | ||||||||||
Schedule of Net Amount of Risk by Product and Guarantee | Following are the major types of death benefits currently in force: | |||||||||||||
GMDB and GMIB Benefits by Type: | 31-Dec-14 | |||||||||||||
($ in millions) | Account | NAR | NAR | Average | ||||||||||
Value | before | after | Attained Age | |||||||||||
Reinsurance | Reinsurance | of Annuitant | ||||||||||||
GMDB return of premium | $ | 661.5 | $ | 1.6 | $ | 1.6 | 63 | |||||||
GMDB step up | 1,723.20 | 112.2 | 13.4 | 64 | ||||||||||
GMDB earnings enhancement benefit (“EEB”) | 29.1 | — | — | 65 | ||||||||||
GMDB greater of annual step up and roll up | 22.7 | 4.8 | 4.8 | 69 | ||||||||||
Total GMDB at December 31, 2014 | 2,436.50 | $ | 118.6 | $ | 19.8 | |||||||||
Less: General account value with GMDB | 378.6 | |||||||||||||
Subtotal separate account liabilities with GMDB | 2,057.90 | |||||||||||||
Separate account liabilities without GMDB | 962.8 | |||||||||||||
Total separate account liabilities | $ | 3,020.70 | ||||||||||||
GMIB [1] at December 31, 2014 | $ | 319.6 | 65 | |||||||||||
GMDB and GMIB Benefits by Type: | December 31, 2013, as restated | |||||||||||||
($ in millions) | Account | NAR | NAR | Average | ||||||||||
Value | before | after | Attained Age | |||||||||||
Reinsurance | Reinsurance | of Annuitant | ||||||||||||
GMDB return of premium | $ | 770.3 | $ | 2.1 | $ | 2.1 | 63 | |||||||
GMDB step up | 1,974.70 | 117.9 | 9.9 | 64 | ||||||||||
GMDB earnings enhancement benefit (“EEB”) | 36 | 0.1 | 0.1 | 64 | ||||||||||
GMDB greater of annual step up and roll up | 26.7 | 4.8 | 4.8 | 68 | ||||||||||
Total GMDB at December 31, 2013 | 2,807.70 | $ | 124.9 | $ | 16.9 | |||||||||
Less: General account value with GMDB | 403.3 | |||||||||||||
Subtotal separate account liabilities with GMDB | 2,404.40 | |||||||||||||
Separate account liabilities without GMDB | 997.9 | |||||||||||||
Total separate account liabilities | $ | 3,402.30 | ||||||||||||
GMIB [1] at December 31, 2013 | $ | 398.6 | 64 | |||||||||||
——————— | ||||||||||||||
[1] | Policies with a GMIB also have a GMDB, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. | |||||||||||||
Changes in Guaranteed Liability Balances | ||||||||||||||
Changes in Universal Life Guaranteed | Universal Life | |||||||||||||
Liability Balances: | Secondary Guarantees | |||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
As restated | As revised | |||||||||||||
Balance, beginning of period | $ | 170.6 | $ | 138.5 | $ | 114.6 | ||||||||
Incurred | 39.9 | 37.9 | 29.3 | |||||||||||
Paid | (15.3 | ) | (14.3 | ) | (9.5 | ) | ||||||||
Change due to net unrealized gains or losses included in AOCI | 2.2 | (2.4 | ) | 2.4 | ||||||||||
Assumption unlocking | (1.6 | ) | 10.9 | 1.7 | ||||||||||
Balance, end of period | $ | 195.8 | $ | 170.6 | $ | 138.5 | ||||||||
Changes in Fixed Indexed Annuity Guaranteed | Fixed Indexed Annuity | |||||||||||||
Liability Balances: | GMWB and GMDB | |||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
As restated | As revised | |||||||||||||
Balance, beginning of period | $ | 85.4 | $ | 102.1 | $ | 5.6 | ||||||||
Incurred | 33.4 | 60.8 | 37.2 | |||||||||||
Paid | (0.3 | ) | (0.3 | ) | — | |||||||||
Change due to net unrealized gains or losses included in AOCI | 35.9 | (58.5 | ) | 59.3 | ||||||||||
Assumption unlocking | (7.4 | ) | (18.7 | ) | — | |||||||||
Balance, end of period | $ | 147 | $ | 85.4 | $ | 102.1 | ||||||||
Changes in Universal Life Additional | Universal Life | |||||||||||||
Liability Balances: | Profits Followed by Losses | |||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
As restated | As revised | |||||||||||||
Balance, beginning of period | $ | 249.1 | $ | 311.7 | $ | 209.8 | ||||||||
Incurred | 106.4 | 66.2 | 44 | |||||||||||
Change due to net unrealized gains or losses included in AOCI | 9 | 1.1 | 16.8 | |||||||||||
Assumption unlocking | (13.0 | ) | (129.9 | ) | 41.1 | |||||||||
Balance, end of period | $ | 351.5 | $ | 249.1 | $ | 311.7 | ||||||||
Non-Insurance Guaranteed Product Features | These features are accounted for as embedded derivatives as described below. | |||||||||||||
Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features: | As of December 31, 2014 | |||||||||||||
($ in millions) | Account | Average | ||||||||||||
Value | Attained Age | |||||||||||||
of Annuitant | ||||||||||||||
GMWB | $ | 496.8 | 65 | |||||||||||
GMAB | 315.6 | 59 | ||||||||||||
COMBO | 7.1 | 65 | ||||||||||||
Balance, end of period | $ | 819.5 | ||||||||||||
Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features: | As of December 31, 2013, as restated | |||||||||||||
($ in millions) | Account | Average | ||||||||||||
Value | Attained Age | |||||||||||||
of Annuitant | ||||||||||||||
GMWB | $ | 581.5 | 64 | |||||||||||
GMAB | 382.2 | 59 | ||||||||||||
COMBO | 7.2 | 63 | ||||||||||||
Balance, end of period | $ | 970.9 | ||||||||||||
Variable Annuity Embedded Derivative Liabilities | Embedded derivative liabilities for GMWB, GMAB and COMBO are shown in the table below. | |||||||||||||
Variable Annuity Embedded Derivative Liabilities: | As of December 31, | |||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||
As restated | ||||||||||||||
GMWB | $ | 7.3 | $ | (5.1 | ) | |||||||||
GMAB | (0.3 | ) | 1.4 | |||||||||||
COMBO | (0.2 | ) | (0.4 | ) | ||||||||||
Total variable annuity embedded derivative liabilities | $ | 6.8 | $ | (4.1 | ) | |||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ||||||||||||||||||||||||
Derivative Instruments: | Maturity | Notional | Fair Value as of | |||||||||||||||||||||
Amount | December 31, 2014 | |||||||||||||||||||||||
($ in millions) | Assets | Liabilities [1] | ||||||||||||||||||||||
Interest rate swaps | 2016 - 2029 | $ | 114 | $ | 9.7 | $ | 1.9 | |||||||||||||||||
Variance swaps | 2015 - 2017 | 0.9 | — | 8.6 | ||||||||||||||||||||
Swaptions | 2024 - 2025 | 777 | 0.1 | — | ||||||||||||||||||||
Put options | 2015 - 2022 | 692.5 | 31.1 | — | ||||||||||||||||||||
Call options [2] | 2015 - 2019 | 2,019.20 | 119.8 | 74.6 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | 0.6 | — | ||||||||||||||||||||
Equity futures | 2015 | 4.1 | — | 0.5 | ||||||||||||||||||||
Total derivative instruments | $ | 3,617.70 | $ | 161.3 | $ | 85.6 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $1.5 million. | |||||||||||||||||||||||
Derivative Instruments: | Maturity | Notional | Fair Value as of | |||||||||||||||||||||
Amount | December 31, 2013, as restated | |||||||||||||||||||||||
($ in millions) | Assets | Liabilities [1] | ||||||||||||||||||||||
Interest rate swaps | 2016 - 2027 | $ | 139 | $ | 3.9 | $ | 6.8 | |||||||||||||||||
Variance swaps | 2015 - 2017 | 0.9 | — | 7.9 | ||||||||||||||||||||
Swaptions | 2024 - 2025 | 3,902.00 | 30.7 | — | ||||||||||||||||||||
Put options | 2015 - 2022 | 406 | 31.1 | — | ||||||||||||||||||||
Call options [2] | 2014-2018 | 1,701.60 | 163.1 | 96.1 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | — | 0.7 | ||||||||||||||||||||
Equity futures | 2014 | 160.6 | — | 5.3 | ||||||||||||||||||||
Total derivative instruments | $ | 6,320.10 | $ | 228.8 | $ | 116.8 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $1.9 million. | |||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ||||||||||||||||||||||||
Derivative Instrument Gains (Losses) Recognized in | For the years ended December 31, | |||||||||||||||||||||||
Realized Investment Gains (Losses): | ||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
As restated | As revised | |||||||||||||||||||||||
Interest rate swaps | $ | 11 | $ | (11.4 | ) | $ | (0.9 | ) | ||||||||||||||||
Variance swaps | (0.7 | ) | (3.6 | ) | (7.9 | ) | ||||||||||||||||||
Swaptions | (30.6 | ) | 17.3 | (0.2 | ) | |||||||||||||||||||
Put options | (4.8 | ) | (42.3 | ) | (22.0 | ) | ||||||||||||||||||
Call options | 18.5 | 59.3 | 0.1 | |||||||||||||||||||||
Cross currency swaps | 1.3 | (0.5 | ) | (0.1 | ) | |||||||||||||||||||
Equity futures | (15.5 | ) | (46.5 | ) | (19.4 | ) | ||||||||||||||||||
Embedded derivatives | (45.9 | ) | 12.2 | 4.9 | ||||||||||||||||||||
Total derivative instrument gains (losses) recognized in | $ | (66.7 | ) | $ | (15.5 | ) | $ | (45.5 | ) | |||||||||||||||
realized investment gains (losses) | ||||||||||||||||||||||||
Offsetting Assets and Liabilities | The following tables present the gross fair value amounts, the amounts offset and net position of derivative instruments eligible for offset in the Company’s consolidated balance sheets that are subject to an enforceable master netting arrangement upon certain termination events, irrespective of whether they are offset in the balance sheet. | |||||||||||||||||||||||
Offsetting of | As of December 31, 2014 | |||||||||||||||||||||||
Derivative Assets/Liabilities: | ||||||||||||||||||||||||
($ in millions) | Gross | Gross | Net amounts | Gross amounts not offset | Net amount | |||||||||||||||||||
amounts | amounts | presented in the | in the balance sheet | |||||||||||||||||||||
recognized [1] | offset in the | balance sheet | ||||||||||||||||||||||
balance sheet | Financial | Cash collateral | ||||||||||||||||||||||
instruments | pledged [2] | |||||||||||||||||||||||
Total derivative assets | $ | 161.3 | $ | — | $ | 161.3 | $ | (82.5 | ) | $ | — | $ | 78.8 | |||||||||||
Total derivative liabilities | $ | (85.6 | ) | $ | — | $ | (85.6 | ) | $ | 82.5 | $ | 3.1 | $ | — | ||||||||||
Offsetting of | As of December 31, 2013, as restated | |||||||||||||||||||||||
Derivative Assets/Liabilities: | ||||||||||||||||||||||||
($ in millions) | Gross | Gross | Net amounts | Gross amounts not offset | Net amount | |||||||||||||||||||
amounts | amounts | presented in the | in the balance sheet | |||||||||||||||||||||
recognized [1] | offset in the | balance sheet | ||||||||||||||||||||||
balance sheet | Financial | Cash collateral | ||||||||||||||||||||||
instruments | pledged [2] | |||||||||||||||||||||||
Total derivative assets | $ | 228.8 | $ | — | $ | 228.8 | $ | (110.3 | ) | $ | — | $ | 118.5 | |||||||||||
Total derivative liabilities | $ | (116.8 | ) | $ | — | $ | (116.8 | ) | $ | 110.3 | $ | 6.5 | $ | — | ||||||||||
——————— | ||||||||||||||||||||||||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | |||||||||||||||||||||||
[2] | Cash collateral pledged with derivative counterparties is recorded within other assets on the consolidated balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $15.5 million and $21.7 million as of December 31, 2014 and 2013, respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring | The following tables present the financial instruments carried at fair value on a recurring basis by ASC 820-10 valuation hierarchy (as described above). There were no financial instruments carried at fair value on a non-recurring basis as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [1] | $ | — | $ | 81.2 | $ | 362.2 | $ | 443.4 | ||||||||||||||||||||||||
State and political subdivision | — | 157.7 | 400.2 | 557.9 | ||||||||||||||||||||||||||||
Foreign government | — | 177.3 | 53.6 | 230.9 | ||||||||||||||||||||||||||||
Corporate | — | 3,994.20 | 4,403.90 | 8,398.10 | ||||||||||||||||||||||||||||
CMBS | — | 498.4 | 152.8 | 651.2 | ||||||||||||||||||||||||||||
RMBS | — | 1,461.90 | 470.3 | 1,932.20 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 196.9 | 196.9 | ||||||||||||||||||||||||||||
Other ABS | — | 23.6 | 245.1 | 268.7 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,394.30 | 6,285.00 | 12,679.30 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | — | — | 179.5 | 179.5 | ||||||||||||||||||||||||||||
Short-term investments | 149.7 | — | — | 149.7 | ||||||||||||||||||||||||||||
Derivative assets | — | 161.3 | — | 161.3 | ||||||||||||||||||||||||||||
Fair value investments [2] | 32.4 | 13 | 190 | 235.4 | ||||||||||||||||||||||||||||
Separate account assets | 3,020.70 | — | — | 3,020.70 | ||||||||||||||||||||||||||||
Total assets | $ | 3,202.80 | $ | 6,568.60 | $ | 6,654.50 | $ | 16,425.90 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 0.5 | $ | 85.1 | $ | — | $ | 85.6 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 160.7 | 160.7 | ||||||||||||||||||||||||||||
Total liabilities | $ | 0.5 | $ | 85.1 | $ | 160.7 | $ | 246.3 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at December 31, 2014 include $111.9 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $23.5 million as of December 31, 2014. Changes in the fair value of these assets are recorded through net investment income. Additionally, $100.0 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.8 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
There were no transfers of assets between Level 1 and Level 2 during the year ended December 31, 2014. | ||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [1] | $ | — | $ | 76.6 | $ | 327.2 | $ | 403.8 | ||||||||||||||||||||||||
State and political subdivision | — | 141.4 | 269.1 | 410.5 | ||||||||||||||||||||||||||||
Foreign government | — | 194 | 15.9 | 209.9 | ||||||||||||||||||||||||||||
Corporate | — | 3,659.60 | 3,893.80 | 7,553.40 | ||||||||||||||||||||||||||||
CMBS | — | 600.1 | 113.7 | 713.8 | ||||||||||||||||||||||||||||
RMBS | — | 1,344.90 | 552.7 | 1,897.60 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 224.1 | 224.1 | ||||||||||||||||||||||||||||
Other ABS | — | 70.7 | 247.7 | 318.4 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,087.30 | 5,644.20 | 11,731.50 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | 2.8 | — | 135.2 | 138 | ||||||||||||||||||||||||||||
Short-term investments | 349.7 | 11 | 0.9 | 361.6 | ||||||||||||||||||||||||||||
Derivative assets | — | 228.8 | — | 228.8 | ||||||||||||||||||||||||||||
Fair value investments [2] | 32.1 | 13.2 | 169.9 | 215.2 | ||||||||||||||||||||||||||||
Separate account assets | 3,402.30 | — | — | 3,402.30 | ||||||||||||||||||||||||||||
Total assets | $ | 3,786.90 | $ | 6,340.30 | $ | 5,950.20 | $ | 16,077.40 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 5.3 | $ | 111.5 | $ | — | $ | 116.8 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 87.8 | 87.8 | ||||||||||||||||||||||||||||
Total liabilities | $ | 5.3 | $ | 111.5 | $ | 87.8 | $ | 204.6 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at December 31, 2013 include $125.7 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $23.2 million as of December 31, 2013. Changes in the fair value of these assets are recorded through net investment income. Additionally, $66.2 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.9 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following tables present corporates carried at fair value and on a recurring basis by sector. | |||||||||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 593 | $ | 1,266.60 | $ | 1,859.60 | ||||||||||||||||||||||||
Energy | — | 534.6 | 472.8 | 1,007.40 | ||||||||||||||||||||||||||||
Financial services | — | 1,617.30 | 967.9 | 2,585.20 | ||||||||||||||||||||||||||||
Capital goods | — | 398.1 | 384.8 | 782.9 | ||||||||||||||||||||||||||||
Transportation | — | 104.7 | 305.8 | 410.5 | ||||||||||||||||||||||||||||
Utilities | — | 348.1 | 683.4 | 1,031.50 | ||||||||||||||||||||||||||||
Other | — | 398.4 | 322.6 | 721 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,994.20 | $ | 4,403.90 | $ | 8,398.10 | ||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 896 | $ | 1,455.20 | $ | 2,351.20 | ||||||||||||||||||||||||
Energy | — | 492.2 | 417.5 | 909.7 | ||||||||||||||||||||||||||||
Financial services | — | 1,497.00 | 880.8 | 2,377.80 | ||||||||||||||||||||||||||||
Capital goods | — | 187.6 | 200.6 | 388.2 | ||||||||||||||||||||||||||||
Transportation | — | 93.6 | 227.6 | 321.2 | ||||||||||||||||||||||||||||
Utilities | — | 316 | 561.6 | 877.6 | ||||||||||||||||||||||||||||
Other | — | 177.2 | 150.5 | 327.7 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,659.60 | $ | 3,893.80 | $ | 7,553.40 | ||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The securities which were transferred into Level 3 were due to decreased market observability of similar assets and/or changes to significant inputs, such as downgrades or price declines. Transfers out of Level 3 were due to increased market activity on comparable assets or observability of inputs. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Balance, | Purchases | Sales | Transfers | Transfers | Realized and | Unrealized | Total | ||||||||||||||||||||||||
beginning | into | out of | unrealized | gains | ||||||||||||||||||||||||||||
of period | Level 3 | Level 3 | gains | (losses) | ||||||||||||||||||||||||||||
(losses) | included | |||||||||||||||||||||||||||||||
included in | in OCI | |||||||||||||||||||||||||||||||
income [1] | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 327.2 | $ | 40 | $ | (26.7 | ) | $ | — | $ | — | $ | — | $ | 21.7 | $ | 362.2 | |||||||||||||||
State and political subdivision | 269.1 | 106.5 | (6.5 | ) | 11.3 | — | — | 19.8 | 400.2 | |||||||||||||||||||||||
Foreign government | 15.9 | 7.4 | — | 28.5 | — | — | 1.8 | 53.6 | ||||||||||||||||||||||||
Corporate | 3,893.80 | 710.9 | (428.9 | ) | 244 | (97.9 | ) | 4.6 | 77.4 | 4,403.90 | ||||||||||||||||||||||
CMBS | 113.7 | 25.1 | (36.6 | ) | 71.1 | (30.4 | ) | 1.4 | 8.5 | 152.8 | ||||||||||||||||||||||
RMBS | 552.7 | 3.1 | (75.5 | ) | — | (4.3 | ) | 3.1 | (8.8 | ) | 470.3 | |||||||||||||||||||||
CDO/CLO | 224.1 | 41.4 | (61.6 | ) | — | — | 2.7 | (9.7 | ) | 196.9 | ||||||||||||||||||||||
Other ABS | 247.7 | 26.1 | (40.0 | ) | 17.6 | — | 1.7 | (8.0 | ) | 245.1 | ||||||||||||||||||||||
Total available-for-sale | 5,644.20 | 960.5 | (675.8 | ) | 372.5 | (132.6 | ) | 13.5 | 102.7 | 6,285.00 | ||||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 135.2 | 65 | (21.2 | ) | — | — | 3.7 | (3.2 | ) | 179.5 | ||||||||||||||||||||||
Short-term investments | 0.9 | — | (0.5 | ) | — | — | (0.4 | ) | — | |||||||||||||||||||||||
Fair value investments | 169.9 | 14.4 | (22.2 | ) | — | — | 27.9 | — | 190 | |||||||||||||||||||||||
Total assets | $ | 5,950.20 | $ | 1,039.90 | $ | (719.7 | ) | $ | 372.5 | $ | (132.6 | ) | $ | 44.7 | $ | 99.5 | $ | 6,654.50 | ||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Balance, | Purchases | Sales | Transfers | Transfers | Realized and | Unrealized | Total | ||||||||||||||||||||||||
beginning | into | out of | unrealized | gains | ||||||||||||||||||||||||||||
of period | Level 3 | Level 3 | gains | (losses) | ||||||||||||||||||||||||||||
(losses) | included | |||||||||||||||||||||||||||||||
included in | in OCI | |||||||||||||||||||||||||||||||
income [1] | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 296.7 | $ | 88.4 | $ | (40.4 | ) | $ | — | $ | — | $ | — | $ | (17.5 | ) | $ | 327.2 | ||||||||||||||
State and political subdivision | 212.4 | 96.6 | (4.1 | ) | — | — | — | (35.8 | ) | 269.1 | ||||||||||||||||||||||
Foreign government | 45.8 | — | (6.0 | ) | 8 | (31.3 | ) | — | (0.6 | ) | 15.9 | |||||||||||||||||||||
Corporate | 3,759.20 | 789.4 | (435.5 | ) | 65.6 | (41.3 | ) | 4.8 | (248.4 | ) | 3,893.80 | |||||||||||||||||||||
CMBS | 89.7 | 42.5 | (11.5 | ) | 8.9 | (12.8 | ) | (2.1 | ) | (1.0 | ) | 113.7 | ||||||||||||||||||||
RMBS | 711.2 | 2.2 | (120.6 | ) | — | — | (4.7 | ) | (35.4 | ) | 552.7 | |||||||||||||||||||||
CDO/CLO | 223.7 | 68.4 | (64.7 | ) | — | — | 0.4 | (3.7 | ) | 224.1 | ||||||||||||||||||||||
Other ABS | 309.9 | 19.6 | (58.7 | ) | — | (1.3 | ) | 0.3 | (22.1 | ) | 247.7 | |||||||||||||||||||||
Total available-for-sale | 5,648.60 | 1,107.10 | (741.5 | ) | 82.5 | (86.7 | ) | (1.3 | ) | (364.5 | ) | 5,644.20 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 86.8 | 50.5 | (11.1 | ) | — | — | (3.5 | ) | 12.5 | 135.2 | ||||||||||||||||||||||
Short-term investments | — | 1.3 | — | — | — | (0.4 | ) | — | 0.9 | |||||||||||||||||||||||
Fair value investments | 153.3 | 25.8 | (23.3 | ) | 1.3 | — | 12.8 | — | 169.9 | |||||||||||||||||||||||
Total assets | $ | 5,888.70 | $ | 1,184.70 | $ | (775.9 | ) | $ | 83.8 | $ | (86.7 | ) | $ | 7.6 | $ | (352.0 | ) | $ | 5,950.20 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Liabilities: | Embedded Derivatives | |||||||||||||||||||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
As restated | ||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 87.8 | $ | 88.1 | ||||||||||||||||||||||||||||
Net purchases/(sales) | 27.1 | 11.9 | ||||||||||||||||||||||||||||||
Transfers into Level 3 | — | — | ||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||||||||||||||
Realized (gains) losses [1] | 45.8 | (12.2 | ) | |||||||||||||||||||||||||||||
Balance, end of period | $ | 160.7 | $ | 87.8 | ||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Realized gains and losses are included in net realized investment gains on the consolidated statements of income and comprehensive income. | |||||||||||||||||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | The following tables present quantitative estimates about unobservable inputs used in the fair value measurement of significant categories of internally priced assets. | |||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 362.2 | Discounted cash flow | Yield | 0.99% - 4.27% (3.17%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 159.1 | Discounted cash flow | Yield | 2.15% - 4.50% (3.22%) | |||||||||||||||||||||||||||
Corporate | $ | 3,116.60 | Discounted cash flow | Yield | 0.93% - 6.88% (3.24%) | |||||||||||||||||||||||||||
Other ABS | $ | 39.3 | Discounted cash flow | Yield | 0.60% - 4.00% (1.92%) | |||||||||||||||||||||||||||
Fair value investments | $ | 6.3 | Discounted cash flow | Default rate | 0.17% | |||||||||||||||||||||||||||
Recovery rate | 44.00% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 327.2 | Discounted cash flow | Yield | 1.05% - 5.66% (3.78%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 119.4 | Discounted cash flow | Yield | 2.35% - 5.79% (3.74%) | |||||||||||||||||||||||||||
Corporate | $ | 2,974.10 | Discounted cash flow | Yield | 1.00% - 6.75% (3.55%) | |||||||||||||||||||||||||||
Other ABS | $ | 47.9 | Discounted cash flow | Yield | 0.50% - 3.75% (2.23%) | |||||||||||||||||||||||||||
Prepayment rate | 2.00% | |||||||||||||||||||||||||||||||
Default rate | 2.53% for 48 mos then 0.37% thereafter | |||||||||||||||||||||||||||||||
Recovery rate | 10.00% (TRUPS) | |||||||||||||||||||||||||||||||
Fair value investments | $ | 5.5 | Discounted cash flow | Default rate | 0.25% | |||||||||||||||||||||||||||
Recovery rate | 45.00% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
The following tables present quantitative estimates about unobservable inputs used in the fair value measurement of internally priced liabilities. | ||||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | ||||||||||||||||||||||||||||||
Embedded derivatives (FIA) | $ | 153.9 | Budget method | Swap curve | 0.24% - 2.55% | |||||||||||||||||||||||||||
Mortality rate | 105% or 97% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.04% - 46.44% | |||||||||||||||||||||||||||||||
CSA | 3.08% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | 6.8 | Risk neutral stochastic | Volatility surface | 9.89% - 67.34% | |||||||||||||||||||||||||||
(GMAB / GMWB / COMBO) | valuation methodology | |||||||||||||||||||||||||||||||
Swap curve | 0.21% - 2.76% | |||||||||||||||||||||||||||||||
Mortality rate | 105% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 40.00% | |||||||||||||||||||||||||||||||
CSA | 3.08% | |||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Fair | Valuation | Unobservable | Range | ||||||||||||||||||||||||||||
Value | Technique(s) | Input | ||||||||||||||||||||||||||||||
Embedded derivatives (FIA) | $ | 91.9 | Budget method | Swap curve | 0.19% - 3.79% | |||||||||||||||||||||||||||
Mortality rate | 103% or 97% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.02% - 47.15% | |||||||||||||||||||||||||||||||
CSA | 3.23% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | (4.1 | ) | Risk neutral stochastic | Volatility surface | 10.85% - 46.33% | ||||||||||||||||||||||||||
(GMAB / GMWB / COMBO) | valuation methodology | |||||||||||||||||||||||||||||||
Swap curve | 0.15% - 4.15% | |||||||||||||||||||||||||||||||
Mortality rate | 105% 2012 IAM basic table | |||||||||||||||||||||||||||||||
with scale G2 | ||||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 40.00% | |||||||||||||||||||||||||||||||
CSA | 3.23% | |||||||||||||||||||||||||||||||
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of December 31, 2014 | |||||||||||||||||||||||||||||||
($ in millions) | Internal [1] | External [2] | Total | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 362.2 | $ | — | $ | 362.2 | ||||||||||||||||||||||||||
State and political subdivision | 159.1 | 241.1 | 400.2 | |||||||||||||||||||||||||||||
Foreign government | — | 53.6 | 53.6 | |||||||||||||||||||||||||||||
Corporate | 3,116.60 | 1,287.30 | 4,403.90 | |||||||||||||||||||||||||||||
CMBS | — | 152.8 | 152.8 | |||||||||||||||||||||||||||||
RMBS | — | 470.3 | 470.3 | |||||||||||||||||||||||||||||
CDO/CLO | — | 196.9 | 196.9 | |||||||||||||||||||||||||||||
Other ABS | 39.3 | 205.8 | 245.1 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,677.20 | 2,607.80 | 6,285.00 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 179.5 | 179.5 | |||||||||||||||||||||||||||||
Short-term investments | — | — | — | |||||||||||||||||||||||||||||
Fair value investments | 6.3 | 183.7 | 190 | |||||||||||||||||||||||||||||
Total assets | $ | 3,683.50 | $ | 2,971.00 | $ | 6,654.50 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 160.7 | $ | — | $ | 160.7 | ||||||||||||||||||||||||||
Total liabilities | $ | 160.7 | $ | — | $ | 160.7 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of December 31, 2013, as restated | |||||||||||||||||||||||||||||||
($ in millions) | Internal [1] | External [2] | Total | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 327.2 | $ | — | $ | 327.2 | ||||||||||||||||||||||||||
State and political subdivision | 119.4 | 149.7 | 269.1 | |||||||||||||||||||||||||||||
Foreign government | — | 15.9 | 15.9 | |||||||||||||||||||||||||||||
Corporate | 2,974.10 | 919.7 | 3,893.80 | |||||||||||||||||||||||||||||
CMBS | — | 113.7 | 113.7 | |||||||||||||||||||||||||||||
RMBS | — | 552.7 | 552.7 | |||||||||||||||||||||||||||||
CDO/CLO | — | 224.1 | 224.1 | |||||||||||||||||||||||||||||
Other ABS | 47.9 | 199.8 | 247.7 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,468.60 | 2,175.60 | 5,644.20 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 135.2 | 135.2 | |||||||||||||||||||||||||||||
Short-term investments | — | 0.9 | 0.9 | |||||||||||||||||||||||||||||
Fair value investments | 5.5 | 164.4 | 169.9 | |||||||||||||||||||||||||||||
Total assets | $ | 3,474.10 | $ | 2,476.10 | $ | 5,950.20 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 87.8 | $ | — | $ | 87.8 | ||||||||||||||||||||||||||
Total liabilities | $ | 87.8 | $ | — | $ | 87.8 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ: | |||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values | As of December 31, | |||||||||||||||||||||||||||||||
of Financial Instruments: | ||||||||||||||||||||||||||||||||
($ in millions) | Fair Value | 2014 | 2013, as restated | |||||||||||||||||||||||||||||
Hierarchy | ||||||||||||||||||||||||||||||||
Level | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Policy loans | Level 3 | $ | 2,352.10 | $ | 2,339.20 | $ | 2,350.30 | $ | 2,338.00 | |||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 450 | $ | 450 | $ | 496.4 | $ | 496.4 | |||||||||||||||||||||||
Life settlements | Level 3 | 22.4 | 17.4 | 21.6 | 16.7 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Investment contracts | Level 3 | $ | 3,955.00 | $ | 3,957.30 | $ | 3,442.60 | $ | 3,437.30 | |||||||||||||||||||||||
Surplus notes | Level 3 | $ | 126.2 | $ | 95.8 | $ | 126.1 | $ | 86.5 | |||||||||||||||||||||||
Senior unsecured bonds | Level 2 | $ | 252.7 | $ | 248 | $ | 252.7 | $ | 224.6 | |||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Significant Components of Income Taxes | ||||||||||||
Significant Components of Income Taxes from Continuing Operations: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Current | ||||||||||||
U.S. | $ | 10.5 | $ | 8.5 | $ | 15.8 | ||||||
Foreign | — | — | — | |||||||||
Deferred | ||||||||||||
U.S. | — | — | (20.5 | ) | ||||||||
Foreign | — | — | — | |||||||||
Total income tax expense (benefit) | $ | 10.5 | $ | 8.5 | $ | (4.7 | ) | |||||
Reconciliation of Effective Income Tax Rate | ||||||||||||
Reconciliation of Effective Income Tax Rate: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Income (loss) from continuing operations before income taxes: | ||||||||||||
U.S. | $ | (195.2 | ) | $ | 38.1 | $ | (153.5 | ) | ||||
Foreign | — | — | — | |||||||||
Total | $ | (195.2 | ) | $ | 38.1 | $ | (153.5 | ) | ||||
Income tax expense (benefit) at statutory rate of 35% | $ | (68.3 | ) | $ | 13.3 | $ | (53.7 | ) | ||||
Dividend received deduction | (3.0 | ) | (2.3 | ) | (2.5 | ) | ||||||
Expiration of tax attribute carryovers | 7.4 | 4.5 | 5.6 | |||||||||
Impact of deferred tax validation | 0.5 | — | — | |||||||||
Noncontrolling interest | (1.4 | ) | (0.2 | ) | — | |||||||
Valuation allowance increase (release) | 79.3 | (4.1 | ) | 46.6 | ||||||||
State income taxes (benefit) | (4.3 | ) | (2.8 | ) | — | |||||||
Other, net | 0.3 | 0.1 | (0.7 | ) | ||||||||
Income tax expense (benefit) applicable to continuing operations | $ | 10.5 | $ | 8.5 | $ | (4.7 | ) | |||||
Effective income tax rates | -5.40% | 22.30% | 3.10% | |||||||||
Allocation of Income Taxes | ||||||||||||
Allocation of Income Taxes: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Income tax expense (benefit) from continuing operations | $ | 10.5 | $ | 8.5 | $ | (4.7 | ) | |||||
Income tax from OCI: | ||||||||||||
Unrealized investment (gains) losses | 35.7 | (20.5 | ) | 92 | ||||||||
Pension | — | — | — | |||||||||
Policy dividend obligation and DAC | — | — | — | |||||||||
Other | — | — | — | |||||||||
Income tax related to cumulative effect of change in accounting guidance | — | — | — | |||||||||
Income tax benefit from discontinued operations | (0.4 | ) | (0.3 | ) | (1.5 | ) | ||||||
Total income tax recorded to all components of income | $ | 45.8 | $ | (12.3 | ) | $ | 85.8 | |||||
Deferred Income Tax | ||||||||||||
Deferred Income Tax Balances Attributable to Temporary Differences: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
As restated | ||||||||||||
Deferred income tax assets | ||||||||||||
Future policyholder benefits | $ | 783.9 | $ | 526.7 | ||||||||
Unearned premiums / deferred revenues | 8.1 | 50.4 | ||||||||||
Employee benefits | 124.4 | 97.2 | ||||||||||
Net operating and capital loss carryover benefits | 198.5 | 157.9 | ||||||||||
Foreign tax credits carryover benefits | 2.3 | 2.2 | ||||||||||
Alternative minimum tax credits | 12.9 | 12.9 | ||||||||||
General business tax credits | 17.7 | 23.7 | ||||||||||
Other | 32.8 | 31.9 | ||||||||||
Available-for-sale debt securities | 34.2 | 70 | ||||||||||
Subtotal | 1,214.80 | 972.9 | ||||||||||
Valuation allowance | (613.0 | ) | (492.4 | ) | ||||||||
Total deferred income tax assets, net of valuation allowance | 601.8 | 480.5 | ||||||||||
Deferred tax liabilities | ||||||||||||
DAC | 188.1 | 215.2 | ||||||||||
Investments | 241.7 | 147.8 | ||||||||||
Accrued liabilities | 137.8 | 47.5 | ||||||||||
Gross deferred income tax liabilities | 567.6 | 410.5 | ||||||||||
Net deferred income tax assets | $ | 34.2 | $ | 70 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Schedule of Comprehensive Income (Loss) | Changes in each component of AOCI attributable to the Company for the years ended December 31 are as follows below (net of tax): | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Net | Net | Net | Total | ||||||||||||
Attributable to The Phoenix Companies, Inc.: | Unrealized | Unrealized | Pension | |||||||||||||
($ in millions) | Gains / (Losses) | Gains / (Losses) | Liability | |||||||||||||
on Investments | on All Other | Adjustments | ||||||||||||||
where | Investments [1] | |||||||||||||||
Credit-related | ||||||||||||||||
OTTI was | ||||||||||||||||
Recognized | ||||||||||||||||
Balance as of December 31, 2012, as revised | $ | (6.2 | ) | $ | 82.3 | $ | (319.9 | ) | $ | (243.8 | ) | |||||
Change in component during the period | 9.7 | (31.3 | ) | 94.3 | 72.7 | |||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from AOCI | 3.5 | (24.1 | ) | 6.7 | (13.9 | ) | ||||||||||
Balance as of December 31, 2013, as restated | 7 | 26.9 | (218.9 | ) | (185.0 | ) | ||||||||||
Change in component during the period | 9.5 | 37.9 | (84.8 | ) | (37.4 | ) | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from AOCI | (6.6 | ) | (10.0 | ) | 4.6 | (12.0 | ) | |||||||||
Balance as of December 31, 2014 | $ | 9.9 | $ | 54.8 | $ | (299.1 | ) | $ | (234.4 | ) | ||||||
——————— | ||||||||||||||||
[1] | See Note 8 to these consolidated financial statements for additional information regarding offsets to net unrealized investment gains and losses which include policyholder dividend obligation, DAC and other actuarial offsets, and deferred income tax expense (benefit). | |||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications from AOCI consist of the following: | |||||||||||||||
AOCI | Amounts Reclassified from AOCI | Affected Line Item in the | ||||||||||||||
Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Net unrealized gains / (losses) on investments where | ||||||||||||||||
credit-related OTTI was recognized: | ||||||||||||||||
Available-for-sale securities | $ | 10.1 | $ | (5.3 | ) | $ | (16.7 | ) | Net realized capital gains (losses) | |||||||
10.1 | (5.3 | ) | (16.7 | ) | Total before income taxes | |||||||||||
3.5 | (1.8 | ) | (5.9 | ) | Income tax expense (benefit) | |||||||||||
$ | 6.6 | $ | (3.5 | ) | $ | (10.8 | ) | Net income (loss) | ||||||||
Net unrealized gains / (losses) on | ||||||||||||||||
all other investments: | ||||||||||||||||
Available-for-sale securities | $ | 15.3 | $ | 37 | $ | 38.4 | Net realized capital gains (losses) | |||||||||
15.3 | 37 | 38.4 | Total before income taxes | |||||||||||||
5.3 | 12.9 | 13.5 | Income tax expense (benefit) | |||||||||||||
$ | 10 | $ | 24.1 | $ | 24.9 | Net income (loss) | ||||||||||
Net pension liability adjustments: | ||||||||||||||||
Amortization of actuarial gains (losses) | $ | (8.2 | ) | $ | (11.5 | ) | $ | (10.1 | ) | Other operating expense | ||||||
Amortization of prior service costs | 1.1 | 1.2 | 1.6 | Other operating expense | ||||||||||||
(7.1 | ) | (10.3 | ) | (8.5 | ) | Total before income taxes | ||||||||||
(2.5 | ) | (3.6 | ) | (3.0 | ) | Income tax expense (benefit) | ||||||||||
$ | (4.6 | ) | $ | (6.7 | ) | $ | (5.5 | ) | Net income (loss) | |||||||
Total amounts reclassified from AOCI | $ | 12 | $ | 13.9 | $ | 8.6 | Net income (loss) | |||||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The compensation cost that has been charged against income for these plans is summarized in the following table: | ||||||||||||||||||||
Share-Based Compensation Plans: | For the years ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
As restated | As revised | ||||||||||||||||||||
Compensation cost charged to income from continuing operations | $ | 3 | $ | 4.6 | $ | 2.6 | |||||||||||||||
Income tax expense (benefit) before valuation allowance | $ | (1.0 | ) | $ | (1.6 | ) | $ | (0.9 | ) | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | |||||||||||||||||||||
Key Assumptions Used in Option Valuation: | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected term [1] | N/A | N/A | 10 years | ||||||||||||||||||
Weighted-average expected volatility | 37.7 | % | |||||||||||||||||||
Weighted-average interest rate | 1.9 | % | |||||||||||||||||||
Weighted-average common share dividend yield | — | % | |||||||||||||||||||
——————— | |||||||||||||||||||||
[1] | Insufficient historical share option exercise experience exists. Therefore, a simplified method for estimating a stock option term was used. | ||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the stock option activity as of and for the year ended December 31, 2014 is as follows: | ||||||||||||||||||||
Summary of Stock Option Activity: [1] | For the years ended December 31, 2014 | ||||||||||||||||||||
($ in millions, except share data) | Common | Weighted- | Weighted- | Aggregate | |||||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding, beginning of period | $ | 77,069 | $ | 186.95 | 1.09 | $ | 0.4 | ||||||||||||||
Granted | — | — | 0 | — | |||||||||||||||||
Exercised | (1,472 | ) | 30.46 | 0 | — | ||||||||||||||||
Forfeited | (24,702 | ) | 198.75 | 0 | — | ||||||||||||||||
Canceled/expired | (528 | ) | 30.46 | 0 | — | ||||||||||||||||
Outstanding, end of period | $ | 50,367 | $ | 187.38 | 2.52 | $ | 0.1 | ||||||||||||||
Vested and exercisable, end of period | $ | 50,367 | $ | 187.38 | 2.52 | $ | 0.1 | ||||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | |||||||||||||||||||||
Weighted-Average Fair Value: [1] | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013, as restated | 2012, as revised | |||||||||||||||||||
Common | Grant Date | Common | Grant Date | Common | Grant Date | ||||||||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | ||||||||||||||||
Options granted | — | $ | — | — | $ | — | 2,053 | $ | 9.03 | ||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the RSU activity as of and for the year ended December 31, 2014 is as follows: | ||||||||||||||||||||
Summary of RSU Activity: [1] | For the years ended December 31, 2014 | ||||||||||||||||||||
Time-Vested | Performance-Contingent | ||||||||||||||||||||
Number | Weighted- | Number | Weighted- | ||||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Outstanding, beginning of period | 86,780 | $ | 47.92 | 17,024 | $ | 55.07 | |||||||||||||||
Awarded | 13,063 | 55.81 | — | — | |||||||||||||||||
Adjustment for performance results | — | — | — | — | |||||||||||||||||
Conversion of performance-contingent awards | — | — | — | — | |||||||||||||||||
Converted to common shares | (3,756 | ) | 41.39 | (16,072 | ) | 55.07 | |||||||||||||||
Forfeited | — | — | (952 | ) | 55.07 | ||||||||||||||||
Outstanding, end of period | 96,087 | $ | 49.25 | — | $ | — | |||||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
We issue new shares to satisfy RSU conversions. | |||||||||||||||||||||
RSUs Awarded: [1] | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013, as restated | 2012, as revised | |||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
Time-vested RSUs awarded | 13,063 | $ | 55.81 | 18,251 | $ | 33.76 | 16,497 | $ | 26.95 | ||||||||||||
Performance-contingent RSUs awarded | — | $ | — | — | $ | — | — | $ | — | ||||||||||||
——————— | |||||||||||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. | ||||||||||||||||||||
RSU Values: | For the years ended December 31, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
As restated | As revised | ||||||||||||||||||||
Intrinsic value of RSUs converted | $ | 0.2 | $ | 2.3 | $ | 0.1 | |||||||||||||||
Total grant date fair value of RSUs vested converted to common shares | $ | 0.2 | $ | 3.6 | $ | 0.2 | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Weighted Average Number of Shares | The following table presents a reconciliation of shares used in calculating basic earnings (loss) per common share to those used in calculating diluted earnings (loss) per common share. | ||||||||
Shares Used in Calculation of Earnings Per Share: [1] | For the years ended December 31, | ||||||||
(shares in thousands) | 2014 | 2013 | 2012 | ||||||
As restated | As revised | ||||||||
Weighted-average common shares outstanding | 5,748 | 5,735 | 5,770 | ||||||
Weighted-average effect of dilutive potential common shares: | |||||||||
Restricted stock units | 5 | 27 | 75 | ||||||
Employee stock options | 2 | 2 | 1 | ||||||
Potential common shares | 7 | 29 | 76 | ||||||
Less: Potential common shares excluded from calculation due to net losses | (7 | ) | — | (76 | ) | ||||
Dilutive potential common shares | — | 29 | — | ||||||
Weighted-average common shares outstanding, | 5,748 | 5,764 | 5,770 | ||||||
including dilutive potential common shares | |||||||||
——————— | |||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to these consolidated financial statements for additional information on the reverse stock split. |
Employee_Benefit_Plans_and_Emp1
Employee Benefit Plans and Employment Agreements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The following table sets forth amounts of benefits expected to be paid over the next ten years from the Company’s pension and post-employment benefit plans as of December 31, 2014: | |||||||||||||||
10-Year Benefit Payout Projection: | Employee | Supplemental | Other | Total | ||||||||||||
($ in millions) | Plan | Plans | Post-Employment | |||||||||||||
2015 | $ | 35.3 | $ | 9.6 | $ | 3.5 | $ | 48.4 | ||||||||
2016 | 35.8 | 9.6 | 3.3 | 48.7 | ||||||||||||
2017 | 36.3 | 9.3 | 3.1 | 48.7 | ||||||||||||
2018 | 36.7 | 9.3 | 3 | 49 | ||||||||||||
2019 | 37.3 | 9.2 | 2.8 | 49.3 | ||||||||||||
2020 to 2024 | 199.6 | 46.7 | 11.5 | 257.8 | ||||||||||||
The assumptions used in calculating the benefit obligations and the net amount recognized for the years ended December 31, 2014, 2013 and 2012 are presented in the following tables. | ||||||||||||||||
Principal Rates and Assumptions: | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Assumptions Used to Determine Benefit Obligations | ||||||||||||||||
Projected benefit obligation discount rate – Employee Plan | 4.1 | % | 4.84 | % | 3.98 | % | ||||||||||
Projected benefit obligation discount rate – Supplemental Plan | 3.97 | % | 4.69 | % | 3.81 | % | ||||||||||
Projected benefit obligation discount rate – Other Post-Employment Benefits | 3.62 | % | 4.21 | % | 3.37 | % | ||||||||||
Future compensation increase rate | N/A [1] | N/A [1] | N/A [1] | |||||||||||||
Deferred investment gain/loss amortization corridor – Employee Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Supplemental Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Other Post-Employment Benefits | 10 | % | 10 | % | 10 | % | ||||||||||
Future health care cost increase rate, age 64 and younger | 6 | % | 6 | % | 6 | % | ||||||||||
Future health care cost increase rate, age 65 and older | N/A | N/A | N/A | |||||||||||||
Assumptions Used to Determine Benefit Expense | ||||||||||||||||
Projected benefit obligation discount rate – Employee Plan | 4.84 | % | 3.98 | % | 4.53 | % | ||||||||||
Projected benefit obligation discount rate – Supplemental Plan | 4.69 | % | 3.81 | % | 4.39 | % | ||||||||||
Projected benefit obligation discount rate – Other Post-Employment Benefits | 4.21 | % | 3.37 | % | 4.11%/3.35% | |||||||||||
Future compensation increase rate | N/A [1] | N/A [1] | N/A [1] | |||||||||||||
Pension plan assets long-term rate of return | 7.5 | % | 7.75 | % | 8 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Employee Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Supplemental Plan | 5 | % | 5 | % | 5 | % | ||||||||||
Deferred investment gain/loss amortization corridor – Other Post-Employment Plan | 10 | % | 10 | % | 10 | % | ||||||||||
Future health care cost increase rate, age 64 and younger | 6 | % | 6 | % | 6 | % | ||||||||||
Future health care cost increase rate, age 65 and older | N/A | N/A | N/A | |||||||||||||
——————— | ||||||||||||||||
[1] | The pension plan was frozen effective March 31, 2010. For periods subsequent to the plan freeze, salary scale is not applicable. | |||||||||||||||
Investment performance is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurement and periodic presentations by asset managers included in the plan. | ||||||||||||||||
Employee Pension Plan Asset Allocation: | As of December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
As restated | ||||||||||||||||
Asset Category | ||||||||||||||||
Equity securities | 52 | % | 53 | % | ||||||||||||
Debt securities | 40 | % | 39 | % | ||||||||||||
Real estate | 2 | % | 2 | % | ||||||||||||
Other | 6 | % | 6 | % | ||||||||||||
Total | 100 | % | 100 | % | ||||||||||||
Obligations Related to the Employee Pension Plan | The following tables set forth a reconciliation of beginning and ending balances of the fair value of plan assets, benefit obligation as well as the funded status of the Company’s defined benefit pension plans for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
Changes in Plan Assets and Benefit Obligations: | Employee Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Plans’ Assets | ||||||||||||||||
Plan assets, beginning of period | $ | 516.5 | $ | 475.8 | $ | 437.6 | ||||||||||
Plan assets’ actual return | 47.8 | 64.9 | 55.4 | |||||||||||||
Employer contributions | 11.8 | 11.4 | 18.2 | |||||||||||||
Plan disbursements | (35.7 | ) | (35.6 | ) | (35.4 | ) | ||||||||||
Plans’ assets, end of period | $ | 540.4 | $ | 516.5 | $ | 475.8 | ||||||||||
Plans’ Projected Benefit Obligation | ||||||||||||||||
Projected benefit obligation, beginning of period | $ | (638.5 | ) | $ | (694.8 | ) | $ | (646.3 | ) | |||||||
Service and interest cost accrual | (32.4 | ) | (29.1 | ) | (29.6 | ) | ||||||||||
Actuarial gain (loss) | (79.7 | ) | 49.8 | (54.3 | ) | |||||||||||
Plan disbursements | 35.7 | 35.6 | 35.4 | |||||||||||||
Plan amendments | — | — | — | |||||||||||||
Projected benefit obligation, end of period | $ | (714.9 | ) | $ | (638.5 | ) | $ | (694.8 | ) | |||||||
Plan assets less than projected benefit obligations, end of period | $ | (174.5 | ) | $ | (122.0 | ) | $ | (219.0 | ) | |||||||
Accumulated benefit obligation | $ | (714.9 | ) | $ | (638.5 | ) | $ | (694.8 | ) | |||||||
Amounts Recognized in Consolidated Balance Sheets: | Employee Plan | |||||||||||||||
($ in millions) | Years Ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
As restated | ||||||||||||||||
Pension and post-employment liabilities | $ | (174.5 | ) | $ | (122.0 | ) | ||||||||||
Changes recognized in Other Comprehensive Income (Loss) were as follows: | Employee Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | 172.6 | $ | 258.9 | $ | 234.8 | ||||||||||
Deferrals for the period – net actuarial loss / (gain) | 69.7 | (77.7 | ) | 32 | ||||||||||||
Amortization for the period – net actuarial loss / (gain) | (5.9 | ) | (8.6 | ) | (7.9 | ) | ||||||||||
Balance, end of period | $ | 236.4 | $ | 172.6 | $ | 258.9 | ||||||||||
Amounts in Accumulated Other Comprehensive Income (Loss) that are expected to be recognized | Employee | |||||||||||||||
as components of Net Periodic Cost (Credit) during the next fiscal year are as follows: | Plan | |||||||||||||||
($ in millions) | ||||||||||||||||
Prior service (credit) cost | $ | — | ||||||||||||||
Net actuarial loss | 7.8 | |||||||||||||||
Total | 7.8 | |||||||||||||||
Components of Pension Benefit Expense: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Service cost | $ | 2.3 | $ | 2.1 | $ | 0.9 | ||||||||||
Interest cost | 30.1 | 27 | 28.7 | |||||||||||||
Plan assets expected return | (37.5 | ) | (36.1 | ) | (34.2 | ) | ||||||||||
Net loss amortization | 5.9 | 8.6 | 7.9 | |||||||||||||
Prior service cost amortization | — | — | — | |||||||||||||
Pension benefit expense | $ | 0.8 | $ | 1.6 | $ | 3.3 | ||||||||||
Funding Status of Employee Pension Plan | The funded status of the qualified pension plan based on the projected benefit obligations for the years ended December 31, 2014 and 2013 are summarized in the following table: | |||||||||||||||
Qualified Employee Pension Plan Funded Status: | As of December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||
As restated | ||||||||||||||||
Plan assets, end of period | $ | 540.4 | $ | 516.5 | ||||||||||||
Projected benefit obligation, end of period | (714.9 | ) | (638.5 | ) | ||||||||||||
Plan assets less than projected benefit obligations, end of period | $ | (174.5 | ) | $ | (122.0 | ) | ||||||||||
Fair Value Measurement of Employee Pension Plan | The following table presents the level within the fair value hierarchy at which the financial assets of the Company’s employee pension plan are measured on a recurring basis at December 31, 2014. | |||||||||||||||
Fair Value of Assets by Type and Level: | As of December 31, 2014 | |||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mercer Group Trust | $ | — | $ | 464 | $ | — | $ | 464 | ||||||||
Virtus Real Estate Securities Trust | — | 14.3 | — | 14.3 | ||||||||||||
Limited partnerships and real estate investments | — | — | 57.6 | 57.6 | ||||||||||||
Total assets at fair value [1] | $ | — | $ | 478.3 | $ | 57.6 | $ | 535.9 | ||||||||
——————— | ||||||||||||||||
[1] | Excludes $1.3 million in cash and cash equivalents and money market funds. | |||||||||||||||
The following table presents the level within the fair value hierarchy at which the financial assets of the Company’s employee pension plan are measured on a recurring basis at December 31, 2013. | ||||||||||||||||
Fair Value of Assets by Type and Level: | As of December 31, 2013, as restated | |||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mercer Group Trust | $ | — | $ | 446.7 | $ | — | $ | 446.7 | ||||||||
Virtus Real Estate Securities Trust | — | 10.8 | — | 10.8 | ||||||||||||
Limited partnerships and real estate investments | — | — | 55.3 | 55.3 | ||||||||||||
Total assets at fair value [1] | $ | — | $ | 457.5 | $ | 55.3 | $ | 512.8 | ||||||||
——————— | ||||||||||||||||
[1] | Excludes $0.8 million in cash and cash equivalents and money market funds. | |||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | ||||||||||||||||
Level 3 Financial Assets - Pension: | Limited Partnerships | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Balance, beginning of period | $ | 55.3 | $ | 50.1 | ||||||||||||
Purchases | 3.4 | 4.2 | ||||||||||||||
Sales | (4.2 | ) | (8.1 | ) | ||||||||||||
Net appreciation on partnerships | 3.1 | 9.1 | ||||||||||||||
Balance, end of period | $ | 57.6 | $ | 55.3 | ||||||||||||
Obligation of the Company's Supplemental Plans | The following tables set forth a reconciliation of beginning and ending balances of the projected benefit obligation of the Company’s supplemental plans for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
Changes in Benefit Obligations: | Supplemental Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Plans’ Projected Benefit Obligation | ||||||||||||||||
Projected benefit obligation, beginning of period | $ | (137.4 | ) | $ | (150.9 | ) | $ | (141.9 | ) | |||||||
Interest cost | (6.4 | ) | (5.6 | ) | (6.1 | ) | ||||||||||
Actuarial gain (loss) | (18.6 | ) | 10.8 | (12.7 | ) | |||||||||||
Plan disbursements | 8.7 | 8.3 | 9.8 | |||||||||||||
Plan amendments | — | — | — | |||||||||||||
Projected benefit obligation, end of period | $ | (153.7 | ) | $ | (137.4 | ) | $ | (150.9 | ) | |||||||
Plan assets less than projected benefit obligations, end of period | $ | (153.7 | ) | $ | (137.4 | ) | $ | (150.9 | ) | |||||||
Accumulated benefit obligation | $ | 153.7 | $ | 137.4 | $ | 150.9 | ||||||||||
Amounts Recognized in Consolidated Balance Sheets: | Supplemental Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
As restated | ||||||||||||||||
Pension and post-employment liabilities | $ | (153.7 | ) | $ | (137.4 | ) | ||||||||||
Changes recognized in Other Comprehensive Income (Loss) were as follows: | Supplemental Plan | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | 63.5 | $ | 77.2 | $ | 66.9 | ||||||||||
Deferrals for the period – net actuarial loss / (gain) | 18.6 | (10.8 | ) | 12.7 | ||||||||||||
Amortization for the period – net actuarial loss / (gain) | (2.6 | ) | (2.9 | ) | (2.4 | ) | ||||||||||
Balance, end of period | $ | 79.5 | $ | 63.5 | $ | 77.2 | ||||||||||
Amounts in Accumulated Other Comprehensive Income (Loss) that are expected to be recognized | Supplemental | |||||||||||||||
as components of Net Periodic Cost (Credit) during the next fiscal year are as follows: | Plan | |||||||||||||||
($ in millions) | ||||||||||||||||
Prior service (credit) cost | $ | — | ||||||||||||||
Net actuarial loss | 3 | |||||||||||||||
Total | $ | 3 | ||||||||||||||
Components of Supplemental Plan Benefit Expense: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Service cost | $ | — | $ | — | $ | — | ||||||||||
Interest cost | 6.4 | 5.6 | 6.1 | |||||||||||||
Plan assets expected return | — | — | — | |||||||||||||
Net loss amortization | 2.6 | 2.9 | 2.4 | |||||||||||||
Prior service cost amortization | — | — | — | |||||||||||||
Supplemental plan benefit expense | $ | 9 | $ | 8.5 | $ | 8.5 | ||||||||||
Components of Other Post Employment Benefits | ||||||||||||||||
Components of post-employment Benefit Expense: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Service cost | $ | 0.1 | $ | 0.2 | $ | 0.3 | ||||||||||
Interest cost | 1.4 | 1.3 | 1.8 | |||||||||||||
Net gain amortization | (0.3 | ) | — | (0.2 | ) | |||||||||||
Prior service cost amortization | (1.1 | ) | (1.2 | ) | (1.6 | ) | ||||||||||
Other post-employment benefit expense | $ | 0.1 | $ | 0.3 | $ | 0.3 | ||||||||||
Changes in Plan Accumulated Benefit Obligation: | For the years ended December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | (36.5 | ) | $ | (40.6 | ) | $ | (59.6 | ) | |||||||
Service and interest cost accrued | (1.5 | ) | (1.5 | ) | (2.1 | ) | ||||||||||
Actuarial gain (loss) | 0.7 | 2.2 | 3.9 | |||||||||||||
Plan disbursements | 3.9 | 3.4 | 5.3 | |||||||||||||
Plan amendments | — | — | 11.9 | |||||||||||||
Balance, end of period | $ | (33.4 | ) | $ | (36.5 | ) | $ | (40.6 | ) | |||||||
Amounts Recognized in Consolidated Balance Sheets: | As of December 31, | |||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||
As restated | ||||||||||||||||
Pension and post-employment liabilities | $ | (33.4 | ) | $ | (36.5 | ) | ||||||||||
Changes recognized in Other Comprehensive Income (Loss) were as follows: | Other Post-Employment Benefits | |||||||||||||||
($ in millions) | For the years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
As restated | As revised | |||||||||||||||
Balance, beginning of period | $ | (6.5 | ) | $ | (4.3 | ) | $ | (0.6 | ) | |||||||
Deferrals for the period – net actuarial loss / (gain) | (0.7 | ) | (2.2 | ) | (3.9 | ) | ||||||||||
Amortization for the period – net actuarial loss / (gain) | 0.3 | — | 0.2 | |||||||||||||
Subtotal, end of period | (6.9 | ) | (6.5 | ) | (4.3 | ) | ||||||||||
Balance, beginning of period | (10.8 | ) | (12.0 | ) | (1.7 | ) | ||||||||||
Deferrals for prior service cost / (credit) | — | — | (11.9 | ) | ||||||||||||
Amortization for prior service cost / (credit) | 1.1 | 1.2 | 1.6 | |||||||||||||
Subtotal, end of period | (9.7 | ) | (10.8 | ) | (12.0 | ) | ||||||||||
Balance, end of period | $ | (16.6 | ) | $ | (17.3 | ) | $ | (16.3 | ) |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Reconciliation of Revenue from Segments to Consolidated | Operating income is calculated by excluding realized investment gains (losses) as their amount and timing may be subject to management’s investment decisions. | |||||||||||
Segment Information on Revenues: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Life and Annuity [1] | $ | 1,640.80 | $ | 1,689.60 | $ | 1,769.10 | ||||||
Saybrus Partners [2] | 37.5 | 26.8 | 22.9 | |||||||||
Less: Intercompany revenues [3] | 11.4 | 8.8 | 10.8 | |||||||||
Total revenues | $ | 1,666.90 | $ | 1,707.60 | $ | 1,781.20 | ||||||
——————— | ||||||||||||
[1] | Includes intercompany interest revenue of $0.1 million, $0.4 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
[2] | Includes intercompany commission revenue of $11.5 million, $9.2 million and $11.4 million for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
[3] | All intercompany balances are eliminated in consolidating the financial statements. | |||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Life and Annuity derives revenue from premiums, fee income and COI charges and net investment income. Saybrus derives revenue primarily from fees collected for advisory and distribution services. | |||||||||||
Results of Operations by Segment as Reconciled to Consolidated Net Income (Loss): | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Life and Annuity operating income (loss) | $ | (160.2 | ) | $ | 19 | $ | (151.2 | ) | ||||
Saybrus Partners operating income (loss) | 6.2 | 3.1 | 2.6 | |||||||||
Less: Applicable income tax expense (benefit) | 10.5 | 8.5 | (4.7 | ) | ||||||||
Income (loss) from discontinued operations, net of income taxes | (3.5 | ) | (2.9 | ) | (15.6 | ) | ||||||
Net realized investment gains (losses) | (41.2 | ) | 16 | (16.8 | ) | |||||||
Gain on debt repurchase | — | — | 11.9 | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | 4 | 0.7 | 0.6 | |||||||||
Net income (loss) | $ | (213.2 | ) | $ | 26 | $ | (165.0 | ) | ||||
Phoenix_Life_Statutory_Financi1
Phoenix Life Statutory Financial Information and Regulatory Matters (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Regulated Operations [Abstract] | ||||||||||||
Statutory Financial Data | The information below is taken from the Phoenix Life annual statement filed with state regulatory authorities. | |||||||||||
Statutory Financial Data for Phoenix Life: [1] | As of or for the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
Statutory capital, surplus and surplus notes | $ | 609.2 | $ | 597 | $ | 793.6 | ||||||
Asset valuation reserve (“AVR”) | 143 | 138.2 | 128.9 | |||||||||
Statutory capital, surplus and AVR [2] | $ | 752.2 | $ | 735.2 | $ | 922.5 | ||||||
Statutory net gain (loss) from operations | $ | 116.2 | $ | 79.8 | $ | 160.5 | ||||||
Statutory net income (loss) | $ | 132.5 | $ | (21.0 | ) | $ | 156.2 | |||||
——————— | ||||||||||||
[1] | Amounts in statements filed with state regulatory authorities may differ from audited financial statements. | |||||||||||
[2] | Includes all life insurance subsidiaries in consolidation. |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||
Premises and equipment | Premises and equipment are included in other assets in our consolidated balance sheets. | |||||||||||||||
Cost and Carrying Value of Premises and Equipment: | As of December 31, | |||||||||||||||
($ in millions) | 2014 | 2013, as restated | ||||||||||||||
Cost | Carrying | Cost | Carrying | |||||||||||||
Value | Value | |||||||||||||||
Real estate | $ | 99.8 | $ | 32.6 | $ | 99.3 | $ | 33.6 | ||||||||
Equipment and software | 73.8 | 12.2 | 72.6 | 12.2 | ||||||||||||
Leasehold improvements | 0.4 | 0.2 | 0.4 | 0.2 | ||||||||||||
Premises and equipment cost and carrying value | 174 | $ | 45 | 172.3 | $ | 46 | ||||||||||
Accumulated depreciation and amortization | (129.0 | ) | (126.3 | ) | ||||||||||||
Premises and equipment | $ | 45 | $ | 46 | ||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
A summary of The Phoenix Companies, Inc. financial information | A summary of The Phoenix Companies, Inc. (parent company only) financial information is presented below. See Notes 9 and 16 to these consolidated financial statements for additional information regarding indebtedness and accrued pension and post-employment benefits, respectively. | |||||||||||
Parent Company Financial Position: | As of December 31, | |||||||||||
($ in millions) | 2014 | 2013 | ||||||||||
As restated | ||||||||||||
Assets | ||||||||||||
Available-for-sale debt securities, at fair value | $ | 5.1 | $ | 10.8 | ||||||||
Affiliate securities | 30 | 30 | ||||||||||
Short-term investments | 49.9 | 119.9 | ||||||||||
Fair value investments | 23.5 | 23.2 | ||||||||||
Cash and cash equivalents | 11.2 | 35.4 | ||||||||||
Investments in subsidiaries | 880.8 | 989.9 | ||||||||||
Advances to subsidiaries | — | 12.4 | ||||||||||
Deferred income taxes, net | — | — | ||||||||||
Other assets | 30.7 | 6.6 | ||||||||||
Total assets | $ | 1,031.20 | $ | 1,228.20 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Indebtedness (Note 9) | $ | 268.6 | $ | 268.6 | ||||||||
Accrued pension and post-employment benefits (Note 16) | 380 | 313.1 | ||||||||||
Due to subsidiaries | 7.3 | — | ||||||||||
Other liabilities | 48.7 | 57 | ||||||||||
Total liabilities | 704.6 | 638.7 | ||||||||||
Total stockholders’ equity | 326.6 | 589.5 | ||||||||||
Total liabilities and stockholders’ equity | $ | 1,031.20 | $ | 1,228.20 | ||||||||
Parent Company Results of Operations: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Revenues | ||||||||||||
Equity in undistributed income (loss) of subsidiaries | $ | (99.0 | ) | $ | 44.1 | $ | (149.7 | ) | ||||
Investment income | 4.5 | 1.2 | 0.8 | |||||||||
Net realized investment gains (losses) | 0.6 | 3.6 | 2 | |||||||||
Total revenues | (93.9 | ) | 48.9 | (146.9 | ) | |||||||
Interest expense | 20.4 | 20.4 | 20.4 | |||||||||
Other operating expenses | 102.6 | 70.7 | 10.2 | |||||||||
Total expenses | 123 | 91.1 | 30.6 | |||||||||
Income (loss) before income taxes | (216.9 | ) | (42.2 | ) | (177.5 | ) | ||||||
Income tax expense (benefit) | (3.7 | ) | (68.7 | ) | (12.0 | ) | ||||||
Income (loss) from continuing operations | (213.2 | ) | 26.5 | (165.5 | ) | |||||||
Income (loss) from discontinued operations of subsidiaries | — | (0.5 | ) | 0.5 | ||||||||
Net income (loss) | $ | (213.2 | ) | $ | 26 | $ | (165.0 | ) | ||||
Parent Company Cash Flows: | For the years ended December 31, | |||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||
As restated | As revised | |||||||||||
Operating Activities | ||||||||||||
Interest income received | $ | 3.7 | $ | 0.9 | $ | 1.2 | ||||||
Interest paid | (20.0 | ) | (20.0 | ) | (20.0 | ) | ||||||
Taxes paid | — | (2.2 | ) | (15.1 | ) | |||||||
Taxes received | — | 3.5 | 3.4 | |||||||||
Payments to/from subsidiaries | (113.4 | ) | 52.5 | 0.8 | ||||||||
Other operating activities, net | (13.8 | ) | (14.9 | ) | (0.6 | ) | ||||||
Cash provided by (used for) operating activities | (143.5 | ) | 19.8 | (30.3 | ) | |||||||
Purchases of available-for-sale debt securities | — | (30.0 | ) | (5.0 | ) | |||||||
Purchases of short-term investments | (589.4 | ) | (579.5 | ) | (264.8 | ) | ||||||
Sales, repayments and maturities of available-for-sale debt securities | 5 | 1 | 27.5 | |||||||||
Sales, repayments and maturities of short-term investments | 659.4 | 564.7 | 173.9 | |||||||||
Subsidiary loan payments received | 3.3 | 3 | 4 | |||||||||
Proceeds from the sale of subsidiary | — | — | 1 | |||||||||
Dividends received from subsidiaries | 56 | 74.2 | 71.8 | |||||||||
Capital contributions to subsidiaries | (15.0 | ) | (45.0 | ) | — | |||||||
Cash provided by (used for) investing activities | 119.3 | (11.6 | ) | 8.4 | ||||||||
Treasury stock acquired | — | — | (3.4 | ) | ||||||||
Cash provided by (used for) financing activities | — | — | (3.4 | ) | ||||||||
Change in cash and cash equivalents | (24.2 | ) | 8.2 | (25.3 | ) | |||||||
Cash and cash equivalents, beginning of period | 35.4 | 27.2 | 52.5 | |||||||||
Cash and cash equivalents, end of period | $ | 11.2 | $ | 35.4 | $ | 27.2 | ||||||
Supplemental_Unaudited_Quarter1
Supplemental Unaudited Quarterly Financial Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Summarized Selected Quarterly Financial Data | The following tables reflect unaudited summarized quarterly financial results during the years ended December 31, 2014 and 2013. | |||||||||||||||
Summarized Selected Quarterly Financial Data: | Quarter ended 2014 | |||||||||||||||
($ in millions, except per share amounts) | Mar 31, | June 30, | Sept 30, | Dec 31, | ||||||||||||
As revised | As restated | As revised | ||||||||||||||
Revenues | $ | 399 | $ | 413.1 | $ | 414.4 | $ | 440.4 | ||||||||
Benefits and expenses | $ | 431.4 | $ | 454.5 | $ | 434 | $ | 542.2 | ||||||||
Income tax expense (benefit) | $ | (4.8 | ) | $ | (19.6 | ) | $ | 2.6 | $ | 32.3 | ||||||
Income (loss) from continuing operations | $ | (27.6 | ) | $ | (21.8 | ) | $ | (22.2 | ) | $ | (134.1 | ) | ||||
Income (loss) from discontinued operations | $ | (0.6 | ) | $ | (0.6 | ) | $ | (0.3 | ) | $ | (2.0 | ) | ||||
Net income (loss) | $ | (28.2 | ) | $ | (22.4 | ) | $ | (22.5 | ) | $ | (136.1 | ) | ||||
Less: Net (income) loss attributable to noncontrolling interests | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | 4.2 | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (28.1 | ) | $ | (22.4 | ) | $ | (22.4 | ) | $ | (140.3 | ) | ||||
Net income (loss) attributable to The Phoenix Companies, Inc. per share: | ||||||||||||||||
Basic | $ | (4.89 | ) | $ | (3.90 | ) | $ | (3.90 | ) | $ | (24.40 | ) | ||||
Diluted | $ | (4.89 | ) | $ | (3.90 | ) | $ | (3.90 | ) | $ | (24.40 | ) | ||||
Summarized Selected Quarterly Financial Data: | Quarter ended 2013 | |||||||||||||||
($ in millions, except per share amounts) | Mar 31, | June 30, | Sept 30, | Dec 31, | ||||||||||||
As revised | As revised | As revised | As restated | |||||||||||||
Revenues | $ | 394.8 | $ | 419.2 | $ | 429.8 | $ | 463.8 | ||||||||
Benefits and expenses | $ | 459.8 | $ | 449.1 | $ | 438.9 | $ | 321.7 | ||||||||
Income tax expense (benefit) | $ | 4.2 | $ | (1.2 | ) | $ | 8.7 | $ | (3.2 | ) | ||||||
Income (loss) from continuing operations | $ | (69.2 | ) | $ | (28.7 | ) | $ | (17.8 | ) | $ | 145.3 | |||||
Income (loss) from discontinued operations | $ | (1.8 | ) | $ | (0.2 | ) | $ | 0.3 | $ | (1.2 | ) | |||||
Net income (loss) | $ | (71.0 | ) | $ | (28.9 | ) | $ | (17.5 | ) | $ | 144.1 | |||||
Less: Net income (loss) attributable to noncontrolling interests | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | 1 | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (70.9 | ) | $ | (28.8 | ) | $ | (17.4 | ) | $ | 143.1 | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. per share: | ||||||||||||||||
Basic | $ | (12.41 | ) | $ | (5.02 | ) | $ | (3.03 | ) | $ | 24.92 | |||||
Diluted | $ | (12.41 | ) | $ | (5.02 | ) | $ | (3.03 | ) | $ | 24.84 | |||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of March 31, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 12,002.10 | $ | — | $ | (81.4 | ) | [1] | $ | 11,920.70 | ||||||
Available-for-sale equity securities, at fair value | 64.1 | — | 79.1 | [1] | 143.2 | |||||||||||
Short-term investments | 571 | — | — | 571 | ||||||||||||
Limited partnerships and other investments | 569.5 | — | — | 569.5 | ||||||||||||
Policy loans, at unpaid principal balances | 2,353.70 | — | — | 2,353.70 | ||||||||||||
Derivative instruments | 172.7 | — | (12.7 | ) | 160 | |||||||||||
Fair value investments | 215.2 | — | — | 215.2 | ||||||||||||
Total investments | 15,948.30 | — | (15.0 | ) | 15,933.30 | |||||||||||
Cash and cash equivalents | 424.5 | — | — | 424.5 | ||||||||||||
Accrued investment income | 176 | — | — | 176 | ||||||||||||
Reinsurance recoverable | 616 | (4.3 | ) | (0.1 | ) | 611.6 | ||||||||||
Deferred policy acquisition costs | 892.4 | 7.8 | 6.7 | 906.9 | ||||||||||||
Deferred income taxes, net | 47.4 | — | (1.8 | ) | 45.6 | |||||||||||
Other assets | 278.8 | — | 20.5 | 299.3 | ||||||||||||
Discontinued operations assets | 41.4 | — | 4.8 | 46.2 | ||||||||||||
Separate account assets | 3,308.00 | — | — | 3,308.00 | ||||||||||||
Total assets | $ | 21,732.80 | $ | 3.5 | $ | 15.1 | $ | 21,751.40 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,425.80 | $ | (17.5 | ) | $ | (9.7 | ) | $ | 12,398.60 | ||||||
Policyholder deposit funds | 3,540.00 | — | 15.3 | 3,555.30 | ||||||||||||
Dividend obligations | 819.8 | — | (2.2 | ) | 817.6 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 309.4 | — | (2.8 | ) | 306.6 | |||||||||||
Other liabilities | 373 | — | 6.1 | 379.1 | ||||||||||||
Discontinued operations liabilities | 36.7 | — | 4.8 | 41.5 | ||||||||||||
Separate account liabilities | 3,308.00 | — | — | 3,308.00 | ||||||||||||
Total liabilities | 21,191.50 | (17.5 | ) | 11.5 | 21,185.50 | |||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.10 | — | — | 2,633.10 | ||||||||||||
Accumulated other comprehensive income (loss) | (195.4 | ) | 1.1 | 2 | (192.3 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,725.4 | ) | 19.9 | 1.6 | (1,703.9 | ) | ||||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 529.5 | 21 | 3.6 | 554.1 | ||||||||||||
Noncontrolling interests | 11.8 | — | — | 11.8 | ||||||||||||
Total stockholders’ equity | 541.3 | 21 | 3.6 | 565.9 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 21,732.80 | $ | 3.5 | $ | 15.1 | $ | 21,751.40 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $79.1 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 79.6 | $ | — | $ | — | $ | 79.6 | ||||||||
Fee income | 134.8 | — | — | 134.8 | ||||||||||||
Net investment income | 213.5 | — | (2.0 | ) | 211.5 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | — | — | — | — | ||||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (25.5 | ) | — | (1.2 | ) | (26.7 | ) | |||||||||
Net realized investment gains (losses) | (25.7 | ) | — | (1.2 | ) | (26.9 | ) | |||||||||
Total revenues | 402.2 | — | (3.2 | ) | 399 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 236 | (0.7 | ) | (5.0 | ) | 230.3 | ||||||||||
Policyholder dividends | 73.8 | — | (1.6 | ) | 72.2 | |||||||||||
Policy acquisition cost amortization | 22.4 | — | 2.2 | 24.6 | ||||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 97.9 | — | (0.7 | ) | 97.2 | |||||||||||
Total benefits and expenses | 437.2 | (0.7 | ) | (5.1 | ) | 431.4 | ||||||||||
Income (loss) from continuing operations before income taxes | (35.0 | ) | 0.7 | 1.9 | (32.4 | ) | ||||||||||
Income tax expense (benefit) | (3.6 | ) | — | (1.2 | ) | (4.8 | ) | |||||||||
Income (loss) from continuing operations | (31.4 | ) | 0.7 | 3.1 | (27.6 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (0.9 | ) | — | 0.3 | (0.6 | ) | ||||||||||
Net income (loss) | (32.3 | ) | 0.7 | 3.4 | (28.2 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (33.3 | ) | $ | 0.7 | $ | 4.5 | $ | (28.1 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended March 31, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (33.3 | ) | $ | 0.7 | $ | 4.5 | $ | (28.1 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) | (32.3 | ) | 0.7 | 3.4 | (28.2 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 16.9 | 0.8 | 6 | 23.7 | ||||||||||||
Net pension liability adjustment | 1.6 | — | 0.1 | 1.7 | ||||||||||||
Other comprehensive income (loss) before income taxes | 18.5 | 0.8 | 6.1 | 25.4 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 28.7 | — | 4 | 32.7 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 28.7 | — | 4 | 32.7 | ||||||||||||
Other comprehensive income (loss), net of income taxes | (10.2 | ) | 0.8 | 2.1 | (7.3 | ) | ||||||||||
Comprehensive income (loss) | (42.5 | ) | 1.5 | 5.5 | (35.5 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (43.5 | ) | $ | 1.5 | $ | 6.6 | $ | (35.4 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (5.47 | ) | $ | 0.12 | $ | 0.73 | $ | (4.79 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (5.47 | ) | $ | 0.12 | $ | 0.73 | $ | (4.79 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.16 | ) | $ | — | $ | 0.05 | $ | (0.10 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.16 | ) | $ | — | $ | 0.05 | $ | (0.10 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (5.80 | ) | $ | 0.12 | $ | 0.78 | $ | (4.89 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (5.80 | ) | $ | 0.12 | $ | 0.78 | $ | (4.89 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended March 31, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (33.3 | ) | $ | 5.2 | $ | (28.1 | ) | ||||||||
Net realized investment gains / losses | 25.7 | 1.2 | 26.9 | |||||||||||||
Policy acquisition costs deferred | (14.4 | ) | (0.2 | ) | (14.6 | ) | ||||||||||
Policy acquisition cost amortization | 22.4 | 2.2 | 24.6 | |||||||||||||
Amortization and depreciation | 1.5 | — | 1.5 | |||||||||||||
Interest credited | 35.6 | — | 35.6 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (23.8 | ) | 3.7 | (20.1 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (43.3 | ) | (0.7 | ) | (44.0 | ) | ||||||||||
Deferred income taxes, net | (6.1 | ) | (2.2 | ) | (8.3 | ) | ||||||||||
Reinsurance recoverable | (12.2 | ) | (0.7 | ) | (12.9 | ) | ||||||||||
Policy liabilities and accruals | (137.6 | ) | (5.0 | ) | (142.6 | ) | ||||||||||
Dividend obligations | 31.8 | (1.6 | ) | 30.2 | ||||||||||||
Pension and post-employment liabilities | (4.9 | ) | — | (4.9 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (5.6 | ) | (1.1 | ) | (6.7 | ) | ||||||||||
Other operating activities, net | 23.9 | (0.8 | ) | 23.1 | ||||||||||||
Cash provided by (used for) operating activities | (140.3 | ) | — | (140.3 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (338.5 | ) | 0.1 | (338.4 | ) | |||||||||||
Available-for-sale equity securities | (1.7 | ) | (0.1 | ) | (1.8 | ) | ||||||||||
Short-term investments | (649.3 | ) | — | (649.3 | ) | |||||||||||
Derivative instruments | (17.8 | ) | — | (17.8 | ) | |||||||||||
Fair value and other investments | (0.3 | ) | — | (0.3 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 338.8 | (0.1 | ) | 338.7 | ||||||||||||
Available-for-sale equity securities | 3 | 0.1 | 3.1 | |||||||||||||
Short-term investments | 489.8 | — | 489.8 | |||||||||||||
Derivative instruments | 42.1 | — | 42.1 | |||||||||||||
Fair value and other investments | 2.8 | — | 2.8 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (18.2 | ) | — | (18.2 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 30.3 | — | 30.3 | |||||||||||||
Policy loans, net | 32 | — | 32 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (2.0 | ) | — | (2.0 | ) | |||||||||||
Cash provided by (used for) investing activities | (89.0 | ) | — | (89.0 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended March 31, 2014 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 361.3 | — | 361.3 | |||||||||||||
Policyholder withdrawals | (321.5 | ) | — | (321.5 | ) | |||||||||||
Net transfers (to) from separate accounts | 118.2 | — | 118.2 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.1 | — | 0.1 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 158.1 | — | 158.1 | |||||||||||||
Change in cash and cash equivalents | (71.2 | ) | — | (71.2 | ) | |||||||||||
Change in cash included in discontinued operations assets | (0.7 | ) | — | (0.7 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 496.4 | — | 496.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 424.5 | $ | — | $ | 424.5 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | — | $ | — | $ | — | ||||||||||
Interest expense on indebtedness paid | $ | (4.7 | ) | $ | — | $ | (4.7 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 13 | $ | — | $ | 13 | ||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended March 31, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | — | — | — | |||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
Other comprehensive income (loss) | (10.2 | ) | 2.9 | (7.3 | ) | |||||||||||
Balance, end of period | $ | (195.4 | ) | $ | 3.1 | $ | (192.3 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
Net income (loss) | (33.3 | ) | 5.2 | (28.1 | ) | |||||||||||
Balance, end of period | $ | (1,725.4 | ) | $ | 21.5 | $ | (1,703.9 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (43.5 | ) | 8.1 | (35.4 | ) | |||||||||||
Balance, end of period | $ | 529.5 | $ | 24.6 | $ | 554.1 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
Change in noncontrolling interests | 1.1 | (1.1 | ) | — | ||||||||||||
Balance, end of period | $ | 11.8 | $ | — | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
Change in stockholders’ equity | (42.4 | ) | 7 | (35.4 | ) | |||||||||||
Balance, end of period | $ | 541.3 | $ | 24.6 | $ | 565.9 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 12,454.10 | $ | — | $ | (83.6 | ) | [1] | $ | 12,370.50 | ||||||
Available-for-sale equity securities, at fair value | 68.5 | — | 80.6 | [1] | 149.1 | |||||||||||
Short-term investments | 504.8 | — | — | 504.8 | ||||||||||||
Limited partnerships and other investments | 557.9 | — | — | 557.9 | ||||||||||||
Policy loans, at unpaid principal balances | 2,325.40 | — | — | 2,325.40 | ||||||||||||
Derivative instruments | 175 | — | (12.5 | ) | 162.5 | |||||||||||
Fair value investments | 207.4 | — | — | 207.4 | ||||||||||||
Total investments | 16,293.10 | — | (15.5 | ) | 16,277.60 | |||||||||||
Cash and cash equivalents | 330.2 | — | — | 330.2 | ||||||||||||
Accrued investment income | 185.7 | — | — | 185.7 | ||||||||||||
Reinsurance recoverable | 594.7 | (3.8 | ) | 1.5 | 592.4 | |||||||||||
Deferred policy acquisition costs | 869 | 7.7 | 5.1 | 881.8 | ||||||||||||
Deferred income taxes, net | 29.4 | — | 0.1 | 29.5 | ||||||||||||
Other assets | 279 | — | 22.1 | 301.1 | ||||||||||||
Discontinued operations assets | 39.9 | — | 4.8 | 44.7 | ||||||||||||
Separate account assets | 3,285.40 | — | — | 3,285.40 | ||||||||||||
Total assets | $ | 21,906.40 | $ | 3.9 | $ | 18.1 | $ | 21,928.40 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,429.00 | $ | (18.4 | ) | $ | (0.6 | ) | $ | 12,410.00 | ||||||
Policyholder deposit funds | 3,658.70 | — | 14.7 | 3,673.40 | ||||||||||||
Dividend obligations | 895.6 | — | (0.9 | ) | 894.7 | |||||||||||
Indebtedness | 378.9 | — | — | 378.9 | ||||||||||||
Pension and post-employment liabilities | 302.5 | — | (2.8 | ) | 299.7 | |||||||||||
Other liabilities | 376.4 | — | 6.7 | 383.1 | ||||||||||||
Discontinued operations liabilities | 35.1 | — | 4.8 | 39.9 | ||||||||||||
Separate account liabilities | 3,285.40 | — | — | 3,285.40 | ||||||||||||
Total liabilities | 21,361.60 | (18.4 | ) | 21.9 | 21,365.10 | |||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,632.70 | — | — | 2,632.70 | ||||||||||||
Accumulated other comprehensive income (loss) | (177.2 | ) | 1.2 | 3.9 | (172.1 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,739.7 | ) | 21.1 | (7.7 | ) | (1,726.3 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 533 | 22.3 | (3.8 | ) | 551.5 | |||||||||||
Noncontrolling interests | 11.8 | — | — | 11.8 | ||||||||||||
Total stockholders’ equity | 544.8 | 22.3 | (3.8 | ) | 563.3 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,906.40 | $ | 3.9 | $ | 18.1 | $ | 21,928.40 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $80.6 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended June 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 83.2 | $ | — | $ | — | $ | 83.2 | ||||||||
Fee income | 134.2 | — | — | 134.2 | ||||||||||||
Net investment income | 195.3 | (3.8 | ) | 191.5 | ||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | — | — | — | — | ||||||||||||
Net OTTI losses recognized in earnings | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 5.1 | 0.1 | 5.2 | |||||||||||||
Net realized investment gains (losses) | 4.1 | — | 0.1 | 4.2 | ||||||||||||
Total revenues | 416.8 | — | (3.7 | ) | 413.1 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 298.5 | (1.1 | ) | 3.9 | 301.3 | |||||||||||
Policyholder dividends | 42.4 | — | 0.2 | 42.6 | ||||||||||||
Policy acquisition cost amortization | 17.4 | (0.2 | ) | 1.9 | 19.1 | |||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 85.5 | — | (1.1 | ) | 84.4 | |||||||||||
Total benefits and expenses | 450.9 | (1.3 | ) | 4.9 | 454.5 | |||||||||||
Income (loss) from continuing operations before income taxes | (34.1 | ) | 1.3 | (8.6 | ) | (41.4 | ) | |||||||||
Income tax expense (benefit) | (20.4 | ) | — | 0.8 | (19.6 | ) | ||||||||||
Income (loss) from continuing operations | (13.7 | ) | 1.3 | (9.4 | ) | (21.8 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (0.6 | ) | — | — | (0.6 | ) | ||||||||||
Net income (loss) | (14.3 | ) | 1.3 | (9.4 | ) | (22.4 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (14.3 | ) | $ | 1.3 | $ | (9.4 | ) | $ | (22.4 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended June 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | restated | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (14.3 | ) | $ | 1.3 | $ | (9.4 | ) | $ | (22.4 | ) | |||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income (loss) | (14.3 | ) | 1.3 | (9.4 | ) | (22.4 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 52.8 | 0.1 | (1.0 | ) | 51.9 | |||||||||||
Net pension liability adjustment | 1.8 | — | (0.1 | ) | 1.7 | |||||||||||
Other comprehensive income (loss) before income taxes | 54.6 | 0.1 | (1.1 | ) | 53.6 | |||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 36.4 | — | (3.0 | ) | 33.4 | |||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 36.4 | — | (3.0 | ) | 33.4 | |||||||||||
Other comprehensive income (loss), net of income taxes | 18.2 | 0.1 | 1.9 | 20.2 | ||||||||||||
Comprehensive income (loss) | 3.9 | 1.4 | (7.5 | ) | (2.2 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | 3.9 | $ | 1.4 | $ | (7.5 | ) | $ | (2.2 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (2.38 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.80 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (2.38 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.80 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (2.49 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.90 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (2.49 | ) | $ | 0.23 | $ | (1.64 | ) | $ | (3.90 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,749 | 5,749 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,749 | 5,749 | ||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the six months ended June 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 162.8 | $ | — | $ | — | $ | 162.8 | ||||||||
Fee income | 269 | — | — | 269 | ||||||||||||
Net investment income | 408.8 | — | (5.8 | ) | 403 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (1.2 | ) | — | — | (1.2 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (20.4 | ) | — | (1.1 | ) | (21.5 | ) | |||||||||
Net realized investment gains (losses) | (21.6 | ) | — | (1.1 | ) | (22.7 | ) | |||||||||
Total revenues | 819 | — | (6.9 | ) | 812.1 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 534.5 | (1.8 | ) | (1.1 | ) | 531.6 | ||||||||||
Policyholder dividends | 116.2 | — | (1.4 | ) | 114.8 | |||||||||||
Policy acquisition cost amortization | 39.8 | (0.2 | ) | 4.1 | 43.7 | |||||||||||
Interest expense on indebtedness | 14.2 | — | — | 14.2 | ||||||||||||
Other operating expenses | 183.4 | — | (1.8 | ) | 181.6 | |||||||||||
Total benefits and expenses | 888.1 | (2.0 | ) | (0.2 | ) | 885.9 | ||||||||||
Income (loss) from continuing operations before income taxes | (69.1 | ) | 2 | (6.7 | ) | (73.8 | ) | |||||||||
Income tax expense (benefit) | (24.0 | ) | — | (0.4 | ) | (24.4 | ) | |||||||||
Income (loss) from continuing operations | (45.1 | ) | 2 | (6.3 | ) | (49.4 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (1.5 | ) | — | 0.3 | (1.2 | ) | ||||||||||
Net income (loss) | (46.6 | ) | 2 | (6.0 | ) | (50.6 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (47.6 | ) | $ | 2 | $ | (4.9 | ) | $ | (50.5 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the six months ended June 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (47.6 | ) | $ | 2 | $ | (4.9 | ) | $ | (50.5 | ) | |||||
Net income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Net income (loss) | (46.6 | ) | 2 | (6.0 | ) | (50.6 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 69.7 | 0.9 | 5 | 75.6 | ||||||||||||
Net pension liability adjustment | 3.4 | — | — | 3.4 | ||||||||||||
Other comprehensive income (loss) before income taxes | 73.1 | 0.9 | 5 | 79 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 65.1 | — | 1 | 66.1 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 65.1 | — | 1 | 66.1 | ||||||||||||
Other comprehensive income (loss), net of income taxes | 8 | 0.9 | 4 | 12.9 | ||||||||||||
Comprehensive income (loss) | (38.6 | ) | 2.9 | (2.0 | ) | (37.7 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 1 | — | (1.1 | ) | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (39.6 | ) | $ | 2.9 | $ | (0.9 | ) | $ | (37.6 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (7.85 | ) | $ | 0.35 | $ | (0.90 | ) | $ | (8.58 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (7.85 | ) | $ | 0.35 | $ | (0.90 | ) | $ | (8.58 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.26 | ) | $ | — | $ | 0.05 | $ | (0.21 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.26 | ) | $ | — | $ | 0.05 | $ | (0.21 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (8.29 | ) | $ | 0.35 | $ | (0.85 | ) | $ | (8.79 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (8.29 | ) | $ | 0.35 | $ | (0.85 | ) | $ | (8.79 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,745 | 5,745 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,745 | 5,745 | ||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended June 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (47.6 | ) | $ | (2.9 | ) | $ | (50.5 | ) | |||||||
Net realized investment gains / losses | 21.6 | 1.1 | 22.7 | |||||||||||||
Policy acquisition costs deferred | (31.7 | ) | (1.5 | ) | (33.2 | ) | ||||||||||
Policy acquisition cost amortization | 39.8 | 3.9 | 43.7 | |||||||||||||
Amortization and depreciation | 3 | — | 3 | |||||||||||||
Interest credited | 70.2 | — | 70.2 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (29.8 | ) | 3.7 | (26.1 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (81.1 | ) | 2.1 | (79.0 | ) | |||||||||||
Deferred income taxes, net | (24.6 | ) | (1.0 | ) | (25.6 | ) | ||||||||||
Reinsurance recoverable | 8.6 | (2.8 | ) | 5.8 | ||||||||||||
Policy liabilities and accruals | (237.4 | ) | (0.1 | ) | (237.5 | ) | ||||||||||
Dividend obligations | 30.9 | (1.4 | ) | 29.5 | ||||||||||||
Pension and post-employment liabilities | (10.0 | ) | — | (10.0 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (7.7 | ) | (1.1 | ) | (8.8 | ) | ||||||||||
Other operating activities, net | 14.6 | — | 14.6 | |||||||||||||
Cash provided by (used for) operating activities | (281.2 | ) | — | (281.2 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (871.9 | ) | 0.5 | (871.4 | ) | |||||||||||
Available-for-sale equity securities | (2.2 | ) | (0.5 | ) | (2.7 | ) | ||||||||||
Short-term investments | (1,058.9 | ) | — | (1,058.9 | ) | |||||||||||
Derivative instruments | (33.0 | ) | — | (33.0 | ) | |||||||||||
Fair value and other investments | (0.6 | ) | — | (0.6 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 662.8 | (0.1 | ) | 662.7 | ||||||||||||
Available-for-sale equity securities | 4.3 | 0.1 | 4.4 | |||||||||||||
Short-term investments | 915.6 | — | 915.6 | |||||||||||||
Derivative instruments | 53.6 | — | 53.6 | |||||||||||||
Fair value and other investments | 14.1 | — | 14.1 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (34.0 | ) | — | (34.0 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 64 | — | 64 | |||||||||||||
Policy loans, net | 78 | — | 78 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (4.4 | ) | — | (4.4 | ) | |||||||||||
Cash provided by (used for) investing activities | (212.6 | ) | — | (212.6 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended June 30, 2014 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 713 | — | 713 | |||||||||||||
Policyholder withdrawals | (611.9 | ) | — | (611.9 | ) | |||||||||||
Net transfers (to) from separate accounts | 227.7 | — | 227.7 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.2 | — | 0.2 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 329 | — | 329 | |||||||||||||
Change in cash and cash equivalents | (164.8 | ) | — | (164.8 | ) | |||||||||||
Change in cash included in discontinued operations assets | (1.4 | ) | — | (1.4 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 496.4 | — | 496.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 330.2 | $ | — | $ | 330.2 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | — | $ | — | $ | — | ||||||||||
Interest expense on indebtedness paid | $ | (13.9 | ) | $ | — | $ | (13.9 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 62.4 | $ | — | $ | 62.4 | ||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended June 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.4 | ) | — | (0.4 | ) | |||||||||||
Balance, end of period | $ | 2,632.70 | $ | — | $ | 2,632.70 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
Other comprehensive income (loss) | 8 | 4.9 | 12.9 | |||||||||||||
Balance, end of period | $ | (177.2 | ) | $ | 5.1 | $ | (172.1 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
Net income (loss) | (47.6 | ) | (2.9 | ) | (50.5 | ) | ||||||||||
Balance, end of period | $ | (1,739.7 | ) | $ | 13.4 | $ | (1,726.3 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (40.0 | ) | 2 | (38.0 | ) | |||||||||||
Balance, end of period | $ | 533 | $ | 18.5 | $ | 551.5 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
Change in noncontrolling interests | 1.1 | (1.1 | ) | — | ||||||||||||
Balance, end of period | $ | 11.8 | $ | — | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
Change in stockholders’ equity | (38.9 | ) | 0.9 | (38.0 | ) | |||||||||||
Balance, end of period | $ | 544.8 | $ | 18.5 | $ | 563.3 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of September 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 12,706.60 | $ | — | $ | (119.1 | ) | [1] | $ | 12,587.50 | ||||||
Available-for-sale equity securities, at fair value | 75.4 | — | 114.5 | [1] | 189.9 | |||||||||||
Short-term investments | 90.4 | — | — | 90.4 | ||||||||||||
Limited partnerships and other investments | 559.9 | — | 0.8 | 560.7 | ||||||||||||
Policy loans, at unpaid principal balances | 2,324.10 | — | — | 2,324.10 | ||||||||||||
Derivative instruments | 149.9 | — | (11.7 | ) | 138.2 | |||||||||||
Fair value investments | 206.5 | — | 0.7 | 207.2 | ||||||||||||
Total investments | 16,112.80 | — | (14.8 | ) | 16,098.00 | |||||||||||
Cash and cash equivalents | 443.2 | — | — | 443.2 | ||||||||||||
Accrued investment income | 214.2 | — | — | 214.2 | ||||||||||||
Reinsurance recoverable | 575.6 | (3.9 | ) | 1.2 | 572.9 | |||||||||||
Deferred policy acquisition costs | 874.6 | 7.2 | 2.1 | 883.9 | ||||||||||||
Deferred income taxes, net | 31.8 | — | 0.2 | 32 | ||||||||||||
Other assets | 300.7 | — | 15.9 | 316.6 | ||||||||||||
Discontinued operations assets | 38.8 | — | 4.8 | 43.6 | ||||||||||||
Separate account assets | 3,089.10 | — | — | 3,089.10 | ||||||||||||
Total assets | $ | 21,680.80 | $ | 3.3 | $ | 9.4 | $ | 21,693.50 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,384.20 | $ | (18.9 | ) | $ | (1.8 | ) | $ | 12,363.50 | ||||||
Policyholder deposit funds | 3,819.50 | — | 17.1 | 3,836.60 | ||||||||||||
Dividend obligations | 876.1 | — | (1.2 | ) | 874.9 | |||||||||||
Indebtedness | 378.9 | — | (0.1 | ) | 378.8 | |||||||||||
Pension and post-employment liabilities | 295.5 | — | (2.8 | ) | 292.7 | |||||||||||
Other liabilities | 282.6 | — | 2.8 | 285.4 | ||||||||||||
Discontinued operations liabilities | 34 | — | 4.8 | 38.8 | ||||||||||||
Separate account liabilities | 3,089.10 | — | — | 3,089.10 | ||||||||||||
Total liabilities | 21,159.90 | (18.9 | ) | 18.8 | 21,159.80 | |||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,632.70 | — | — | 2,632.70 | ||||||||||||
Accumulated other comprehensive income (loss) | (182.9 | ) | 0.7 | 2.9 | (179.3 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,757.9 | ) | 21.5 | (12.3 | ) | (1,748.7 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 509.1 | 22.2 | (9.4 | ) | 521.9 | |||||||||||
Noncontrolling interests | 11.8 | — | — | 11.8 | ||||||||||||
Total stockholders’ equity | 520.9 | 22.2 | (9.4 | ) | 533.7 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,680.80 | $ | 3.3 | $ | 9.4 | $ | 21,693.50 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $116.0 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 78.1 | $ | — | $ | — | $ | 78.1 | ||||||||
Fee income | 135.2 | — | — | 135.2 | ||||||||||||
Net investment income | 204.9 | — | — | 204.9 | ||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (3.7 | ) | — | — | (3.7 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (3.9 | ) | — | — | (3.9 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 1.8 | — | (1.7 | ) | 0.1 | |||||||||||
Net realized investment gains (losses) | (2.1 | ) | — | (1.7 | ) | (3.8 | ) | |||||||||
Total revenues | 416.1 | — | (1.7 | ) | 414.4 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 265.4 | (0.7 | ) | (1.1 | ) | 263.6 | ||||||||||
Policyholder dividends | 56.7 | — | 0.3 | 57 | ||||||||||||
Policy acquisition cost amortization | 24.9 | 0.3 | 4.2 | 29.4 | ||||||||||||
Interest expense on indebtedness | 7 | — | — | 7 | ||||||||||||
Other operating expenses | 78.8 | — | (1.8 | ) | 77 | |||||||||||
Total benefits and expenses | 432.8 | (0.4 | ) | 1.6 | 434 | |||||||||||
Income (loss) from continuing operations before income taxes | (16.7 | ) | 0.4 | (3.3 | ) | (19.6 | ) | |||||||||
Income tax expense (benefit) | 1.3 | — | 1.3 | 2.6 | ||||||||||||
Income (loss) from continuing operations | (18.0 | ) | 0.4 | (4.6 | ) | (22.2 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Net income (loss) | (18.3 | ) | 0.4 | (4.6 | ) | (22.5 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (18.2 | ) | $ | 0.4 | $ | (4.6 | ) | $ | (22.4 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended September 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (18.2 | ) | $ | 0.4 | $ | (4.6 | ) | $ | (22.4 | ) | |||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (18.3 | ) | 0.4 | (4.6 | ) | (22.5 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | (13.7 | ) | (0.5 | ) | (0.2 | ) | (14.4 | ) | ||||||||
Net pension liability adjustment | 1.7 | — | — | 1.7 | ||||||||||||
Other comprehensive income (loss) before income taxes | (12.0 | ) | (0.5 | ) | (0.2 | ) | (12.7 | ) | ||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | (6.3 | ) | — | 0.8 | (5.5 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (6.3 | ) | — | 0.8 | (5.5 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (5.7 | ) | (0.5 | ) | (1.0 | ) | (7.2 | ) | ||||||||
Comprehensive income (loss) | (24.0 | ) | (0.1 | ) | (5.6 | ) | (29.7 | ) | ||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (23.9 | ) | $ | (0.1 | ) | $ | (5.6 | ) | $ | (29.6 | ) | ||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (3.13 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.85 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (3.13 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.85 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (3.17 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.90 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (3.17 | ) | $ | 0.07 | $ | (0.80 | ) | $ | (3.90 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,750 | 5,750 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,750 | 5,750 | ||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 240.9 | $ | — | $ | — | $ | 240.9 | ||||||||
Fee income | 404.2 | — | — | 404.2 | ||||||||||||
Net investment income | 613.7 | — | (5.8 | ) | 607.9 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (4.7 | ) | — | — | (4.7 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.4 | ) | — | — | (0.4 | ) | ||||||||||
Net OTTI losses recognized in earnings | (5.1 | ) | — | — | (5.1 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (18.6 | ) | — | (2.8 | ) | (21.4 | ) | |||||||||
Net realized investment gains (losses) | (23.7 | ) | — | (2.8 | ) | (26.5 | ) | |||||||||
Total revenues | 1,235.10 | — | (8.6 | ) | 1,226.50 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 799.9 | (2.5 | ) | (2.2 | ) | 795.2 | ||||||||||
Policyholder dividends | 172.9 | — | (1.1 | ) | 171.8 | |||||||||||
Policy acquisition cost amortization | 64.7 | 0.1 | 8.3 | 73.1 | ||||||||||||
Interest expense on indebtedness | 21.2 | — | — | 21.2 | ||||||||||||
Other operating expenses | 262.2 | — | (3.6 | ) | 258.6 | |||||||||||
Total benefits and expenses | 1,320.90 | (2.4 | ) | 1.4 | 1,319.90 | |||||||||||
Income (loss) from continuing operations before income taxes | (85.8 | ) | 2.4 | (10.0 | ) | (93.4 | ) | |||||||||
Income tax expense (benefit) | (22.7 | ) | — | 0.9 | (21.8 | ) | ||||||||||
Income (loss) from continuing operations | (63.1 | ) | 2.4 | (10.9 | ) | (71.6 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (1.8 | ) | — | 0.3 | (1.5 | ) | ||||||||||
Net income (loss) | (64.9 | ) | 2.4 | (10.6 | ) | (73.1 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.9 | — | (1.1 | ) | (0.2 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (65.8 | ) | $ | 2.4 | $ | (9.5 | ) | $ | (72.9 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the nine months ended September 30, 2014 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (65.8 | ) | $ | 2.4 | $ | (9.5 | ) | $ | (72.9 | ) | |||||
Net income (loss) attributable to noncontrolling interests | 0.9 | — | (1.1 | ) | (0.2 | ) | ||||||||||
Net income (loss) | (64.9 | ) | 2.4 | (10.6 | ) | (73.1 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 56 | 0.4 | 4.8 | 61.2 | ||||||||||||
Net pension liability adjustment | 5.1 | — | — | 5.1 | ||||||||||||
Other comprehensive income (loss) before income taxes | 61.1 | 0.4 | 4.8 | 66.3 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets | 58.8 | — | 1.8 | 60.6 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 58.8 | — | 1.8 | 60.6 | ||||||||||||
Other comprehensive income (loss), net of income taxes | 2.3 | 0.4 | 3 | 5.7 | ||||||||||||
Comprehensive income (loss) | (62.6 | ) | 2.8 | (7.6 | ) | (67.4 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.9 | — | (1.1 | ) | (0.2 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (63.5 | ) | $ | 2.8 | $ | (6.5 | ) | $ | (67.2 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (10.98 | ) | $ | 0.42 | $ | (1.70 | ) | $ | (12.42 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (10.98 | ) | $ | 0.42 | $ | (1.70 | ) | $ | (12.42 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.31 | ) | $ | — | $ | 0.05 | $ | (0.26 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.31 | ) | $ | — | $ | 0.05 | $ | (0.26 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (11.45 | ) | $ | 0.42 | $ | (1.65 | ) | $ | (12.68 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (11.45 | ) | $ | 0.42 | $ | (1.65 | ) | $ | (12.68 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,747 | 5,747 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,747 | 5,747 | ||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended September 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (65.8 | ) | $ | (7.1 | ) | $ | (72.9 | ) | |||||||
Net realized investment gains / losses | 23.7 | 2.8 | 26.5 | |||||||||||||
Policy acquisition costs deferred | (52.3 | ) | (2.6 | ) | (54.9 | ) | ||||||||||
Policy acquisition cost amortization | 64.7 | 8.4 | 73.1 | |||||||||||||
Amortization and depreciation | 4.5 | — | 4.5 | |||||||||||||
Interest credited | 113.4 | — | 113.4 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (48.1 | ) | 3.7 | (44.4 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (134.0 | ) | 2.1 | (131.9 | ) | |||||||||||
Deferred income taxes, net | (20.6 | ) | (1.9 | ) | (22.5 | ) | ||||||||||
Reinsurance recoverable | 28.7 | (2.5 | ) | 26.2 | ||||||||||||
Policy liabilities and accruals | (365.1 | ) | (2.2 | ) | (367.3 | ) | ||||||||||
Dividend obligations | 47.5 | (1.0 | ) | 46.5 | ||||||||||||
Pension and post-employment liabilities | (15.3 | ) | — | (15.3 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (8.6 | ) | (1.1 | ) | (9.7 | ) | ||||||||||
Other operating activities, net | 4.2 | (2.0 | ) | 2.2 | ||||||||||||
Cash provided by (used for) operating activities | (423.1 | ) | (3.4 | ) | (426.5 | ) | ||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (1,798.4 | ) | 44.2 | [1] | (1,754.2 | ) | ||||||||||
Available-for-sale equity securities | (7.9 | ) | (44.2 | ) | [1] | (52.1 | ) | |||||||||
Short-term investments | (1,584.6 | ) | — | (1,584.6 | ) | |||||||||||
Derivative instruments | (51.3 | ) | — | (51.3 | ) | |||||||||||
Fair value and other investments | (0.7 | ) | — | (0.7 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 1,194.50 | (6.8 | ) | [1] | 1,187.70 | |||||||||||
Available-for-sale equity securities | 10.1 | 6.8 | [1] | 16.9 | ||||||||||||
Short-term investments | 1,856.10 | — | 1,856.10 | |||||||||||||
Derivative instruments | 73.5 | — | 73.5 | |||||||||||||
Fair value and other investments | 16.7 | — | 16.7 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (58.0 | ) | — | (58.0 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 104.5 | — | 104.5 | |||||||||||||
Policy loans, net | 91 | — | 91 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (7.7 | ) | — | (7.7 | ) | |||||||||||
Cash provided by (used for) investing activities | (162.2 | ) | — | (162.2 | ) | |||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended September 30, 2014 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 1,080.90 | 18.7 | 1,099.60 | |||||||||||||
Policyholder withdrawals | (878.3 | ) | (15.3 | ) | (893.6 | ) | ||||||||||
Net transfers (to) from separate accounts | 330.6 | — | 330.6 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.1 | — | 0.1 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 533.3 | 3.4 | 536.7 | |||||||||||||
Change in cash and cash equivalents | (52.0 | ) | — | (52.0 | ) | |||||||||||
Change in cash included in discontinued operations assets | (1.2 | ) | — | (1.2 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 496.4 | — | 496.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 443.2 | $ | — | $ | 443.2 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | — | $ | — | $ | — | ||||||||||
Interest expense on indebtedness paid | $ | (18.6 | ) | $ | — | $ | (18.6 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 62.4 | $ | — | $ | 62.4 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended September 30, 2014 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.4 | ) | — | (0.4 | ) | |||||||||||
Balance, end of period | $ | 2,632.70 | $ | — | $ | 2,632.70 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (185.2 | ) | $ | 0.2 | $ | (185.0 | ) | ||||||||
Other comprehensive income (loss) | 2.3 | 3.4 | 5.7 | |||||||||||||
Balance, end of period | $ | (182.9 | ) | $ | 3.6 | $ | (179.3 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,692.1 | ) | $ | 16.3 | $ | (1,675.8 | ) | ||||||||
Net income (loss) | (65.8 | ) | (7.1 | ) | (72.9 | ) | ||||||||||
Balance, end of period | $ | (1,757.9 | ) | $ | 9.2 | $ | (1,748.7 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 573 | $ | 16.5 | $ | 589.5 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (63.9 | ) | (3.7 | ) | (67.6 | ) | ||||||||||
Balance, end of period | $ | 509.1 | $ | 12.8 | $ | 521.9 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 10.7 | $ | 1.1 | $ | 11.8 | ||||||||||
Change in noncontrolling interests | 1.1 | (1.1 | ) | — | ||||||||||||
Balance, end of period | $ | 11.8 | $ | — | $ | 11.8 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 583.7 | $ | 17.6 | $ | 601.3 | ||||||||||
Change in stockholders’ equity | (62.8 | ) | (4.8 | ) | (67.6 | ) | ||||||||||
Balance, end of period | $ | 520.9 | $ | 12.8 | $ | 533.7 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of March 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,881.10 | $ | — | $ | (64.5 | ) | [1] | $ | 11,816.60 | ||||||
Available-for-sale equity securities, at fair value | 34.6 | — | 63.3 | [1] | 97.9 | |||||||||||
Short-term investments | 699.5 | — | — | 699.5 | ||||||||||||
Limited partnerships and other investments | 563.4 | — | — | 563.4 | ||||||||||||
Policy loans, at unpaid principal balances | 2,340.10 | — | — | 2,340.10 | ||||||||||||
Derivative instruments | 194.4 | — | (12.8 | ) | 181.6 | |||||||||||
Fair value investments | 215.2 | — | — | 215.2 | ||||||||||||
Total investments | 15,928.30 | — | (14.0 | ) | 15,914.30 | |||||||||||
Cash and cash equivalents | 295.2 | — | — | 295.2 | ||||||||||||
Accrued investment income | 176.1 | — | — | 176.1 | ||||||||||||
Reinsurance recoverable | 594.4 | — | (0.9 | ) | 593.5 | |||||||||||
Deferred policy acquisition costs | 881.5 | — | (10.9 | ) | 870.6 | |||||||||||
Deferred income taxes, net | 41.5 | — | — | 41.5 | ||||||||||||
Other assets [2] | 319.1 | — | 20.3 | 339.4 | ||||||||||||
Discontinued operations assets | 48.4 | — | 4.8 | 53.2 | ||||||||||||
Separate account assets | 3,406.70 | — | — | 3,406.70 | ||||||||||||
Total assets | $ | 21,691.20 | $ | — | $ | (0.7 | ) | $ | 21,690.50 | |||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,653.80 | $ | — | $ | (12.1 | ) | $ | 12,641.70 | |||||||
Policyholder deposit funds | 3,153.80 | — | 6.1 | 3,159.90 | ||||||||||||
Dividend obligations | 943.8 | — | (1.5 | ) | 942.3 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 424.7 | — | — | 424.7 | ||||||||||||
Other liabilities | 256.1 | — | 6.1 | 262.2 | ||||||||||||
Discontinued operations liabilities | 42.9 | — | 4.7 | 47.6 | ||||||||||||
Separate account liabilities | 3,406.70 | — | — | 3,406.70 | ||||||||||||
Total liabilities | 21,260.60 | — | 3.3 | 21,263.90 | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,632.90 | — | — | 2,632.90 | ||||||||||||
Accumulated other comprehensive income (loss) | (260.8 | ) | — | 2.8 | (258.0 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,765.9 | ) | — | (6.8 | ) | (1,772.7 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 423.4 | — | (4.0 | ) | 419.4 | |||||||||||
Noncontrolling interests | 7.2 | — | — | 7.2 | ||||||||||||
Total stockholders’ equity | 430.6 | — | (4.0 | ) | 426.6 | |||||||||||
Total liabilities and stockholders’ equity | $ | 21,691.20 | $ | — | $ | (0.7 | ) | $ | 21,690.50 | |||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $63.4 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Income and Comprehensive Income | |||||||||||||||
For the three months ended March 31, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 82.7 | $ | — | $ | — | $ | 82.7 | ||||||||
Fee income | 136.3 | — | — | 136.3 | ||||||||||||
Net investment income | 191.1 | — | (0.7 | ) | 190.4 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (0.9 | ) | — | 0.4 | (0.5 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (1.7 | ) | — | — | (1.7 | ) | ||||||||||
Net OTTI losses recognized in earnings | (2.6 | ) | — | 0.4 | (2.2 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (13.3 | ) | — | 0.9 | (12.4 | ) | ||||||||||
Net realized investment gains (losses) | (15.9 | ) | — | 1.3 | (14.6 | ) | ||||||||||
Total revenues | 394.2 | — | 0.6 | 394.8 | ||||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 318.8 | — | (48.2 | ) | [1] | 270.6 | ||||||||||
Policyholder dividends | 4.4 | — | 44.9 | [1] | 49.3 | |||||||||||
Policy acquisition cost amortization | 45.3 | — | 4.3 | 49.6 | ||||||||||||
Interest expense on indebtedness | 7.7 | — | (0.6 | ) | 7.1 | |||||||||||
Other operating expenses | 80.8 | — | 2.4 | 83.2 | ||||||||||||
Total benefits and expenses | 457 | — | 2.8 | 459.8 | ||||||||||||
Income (loss) from continuing operations before income taxes | (62.8 | ) | — | (2.2 | ) | (65.0 | ) | |||||||||
Income tax expense (benefit) | 4.2 | — | — | 4.2 | ||||||||||||
Income (loss) from continuing operations | (67.0 | ) | — | (2.2 | ) | (69.2 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (1.8 | ) | — | — | (1.8 | ) | ||||||||||
Net income (loss) | (68.8 | ) | — | (2.2 | ) | (71.0 | ) | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (68.7 | ) | $ | — | $ | (2.2 | ) | $ | (70.9 | ) | |||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended March 31, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (68.7 | ) | $ | — | $ | (2.2 | ) | $ | (70.9 | ) | |||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (68.8 | ) | — | (2.2 | ) | (71.0 | ) | |||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (7.5 | ) | — | (1.5 | ) | (9.0 | ) | |||||||||
Net pension liability adjustment | 3.8 | — | (1.2 | ) | 2.6 | |||||||||||
Other comprehensive income (loss) before income taxes | (3.7 | ) | — | (2.7 | ) | (6.4 | ) | |||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | 7.8 | — | — | 7.8 | ||||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | 7.8 | — | — | 7.8 | ||||||||||||
Other comprehensive income (loss), net of income taxes | (11.5 | ) | — | (2.7 | ) | (14.2 | ) | |||||||||
Comprehensive income (loss) | (80.3 | ) | — | (4.9 | ) | (85.2 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (80.2 | ) | $ | — | $ | (4.9 | ) | $ | (85.1 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (11.72 | ) | $ | — | $ | (0.38 | ) | $ | (12.10 | ) | |||||
Income (loss) from continuing operations – diluted | $ | (11.72 | ) | $ | — | $ | (0.38 | ) | $ | (12.10 | ) | |||||
Income (loss) from discontinued operations – basic | $ | (0.31 | ) | $ | — | $ | — | $ | (0.31 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.31 | ) | $ | — | $ | — | $ | (0.31 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (12.02 | ) | $ | — | $ | (0.38 | ) | $ | (12.41 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (12.02 | ) | $ | — | $ | (0.38 | ) | $ | (12.41 | ) | |||||
Basic weighted-average common shares outstanding (in thousands) | 5,715 | 5,715 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,715 | 5,715 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended March 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (68.7 | ) | $ | (2.2 | ) | $ | (70.9 | ) | |||||||
Net realized investment gains / losses | 15.9 | (1.3 | ) | 14.6 | ||||||||||||
Policy acquisition costs deferred | (14.9 | ) | (0.2 | ) | (15.1 | ) | ||||||||||
Policy acquisition cost amortization | 45.3 | 4.3 | 49.6 | |||||||||||||
Amortization and depreciation | 2.2 | — | 2.2 | |||||||||||||
Interest credited | 30.5 | — | 30.5 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (8.7 | ) | 0.1 | (8.6 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (45.8 | ) | — | (45.8 | ) | |||||||||||
Deferred income taxes, net | — | — | — | |||||||||||||
Reinsurance recoverable | (11.0 | ) | 8.5 | (2.5 | ) | |||||||||||
Policy liabilities and accruals | (116.8 | ) | (55.2 | ) | [1] | (172.0 | ) | |||||||||
Dividend obligations | (39.4 | ) | 44.9 | [1] | 5.5 | |||||||||||
Pension and post-employment liabilities | (0.8 | ) | — | (0.8 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | 1.4 | — | 1.4 | |||||||||||||
Other operating activities, net [2] | 24.2 | 1.1 | 25.3 | |||||||||||||
Cash provided by (used for) operating activities | (186.6 | ) | — | (186.6 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (394.1 | ) | 10 | [3] | (384.1 | ) | ||||||||||
Available-for-sale equity securities | — | (10.0 | ) | [3] | (10.0 | ) | ||||||||||
Short-term investments | (699.5 | ) | — | (699.5 | ) | |||||||||||
Derivative instruments | (44.8 | ) | — | (44.8 | ) | |||||||||||
Fair value and other investments [4] | (14.9 | ) | — | (14.9 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 428.4 | — | 428.4 | |||||||||||||
Available-for-sale equity securities | 1.1 | — | 1.1 | |||||||||||||
Short-term investments | 699.7 | — | 699.7 | |||||||||||||
Derivative instruments | 12.5 | — | 12.5 | |||||||||||||
Fair value and other investments [4] | 4.6 | — | 4.6 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (9.8 | ) | — | (9.8 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 33.6 | — | 33.6 | |||||||||||||
Policy loans, net | 49.5 | — | 49.5 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (0.8 | ) | — | (0.8 | ) | |||||||||||
Cash provided by (used for) investing activities | 65.5 | — | 65.5 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended March 31, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 362.9 | — | 362.9 | |||||||||||||
Policyholder withdrawals | (282.7 | ) | — | (282.7 | ) | |||||||||||
Net transfers (to) from separate accounts | 89.5 | — | 89.5 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 0.6 | — | 0.6 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 170.3 | — | 170.3 | |||||||||||||
Change in cash and cash equivalents | 49.2 | — | 49.2 | |||||||||||||
Change in cash included in discontinued operations assets | (0.4 | ) | — | (0.4 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 295.2 | $ | — | $ | 295.2 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | ||||||||
Interest expense on indebtedness paid | $ | (4.7 | ) | $ | — | $ | (4.7 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 37.7 | $ | — | $ | 37.7 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended March 31, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.2 | ) | — | (0.2 | ) | |||||||||||
Balance, end of period | $ | 2,632.90 | $ | — | $ | 2,632.90 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | (11.5 | ) | (2.7 | ) | (14.2 | ) | ||||||||||
Balance, end of period | $ | (260.8 | ) | $ | 2.8 | $ | (258.0 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | (68.7 | ) | (2.2 | ) | (70.9 | ) | ||||||||||
Balance, end of period | $ | (1,765.9 | ) | $ | (6.8 | ) | $ | (1,772.7 | ) | |||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (80.4 | ) | (4.9 | ) | (85.3 | ) | ||||||||||
Balance, end of period | $ | 423.4 | $ | (4.0 | ) | $ | 419.4 | |||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Change in noncontrolling interests | 0.5 | — | 0.5 | |||||||||||||
Balance, end of period | $ | 7.2 | $ | — | $ | 7.2 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | (79.9 | ) | (4.9 | ) | (84.8 | ) | ||||||||||
Balance, end of period | $ | 430.6 | $ | (4.0 | ) | $ | 426.6 | |||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of June 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,725.90 | $ | — | $ | (71.1 | ) | [1] | $ | 11,654.80 | ||||||
Available-for-sale equity securities, at fair value | 38.7 | — | 68.7 | [1] | 107.4 | |||||||||||
Short-term investments | 599.8 | — | — | 599.8 | ||||||||||||
Limited partnerships and other investments | 559.4 | — | — | 559.4 | ||||||||||||
Policy loans, at unpaid principal balances | 2,350.10 | — | — | 2,350.10 | ||||||||||||
Derivative instruments | 206.5 | — | (17.6 | ) | 188.9 | |||||||||||
Fair value investments | 216.1 | — | — | 216.1 | ||||||||||||
Total investments | 15,696.50 | — | (20.0 | ) | 15,676.50 | |||||||||||
Cash and cash equivalents | 369.3 | — | — | 369.3 | ||||||||||||
Accrued investment income | 183.3 | — | — | 183.3 | ||||||||||||
Reinsurance recoverable | 577 | — | (0.3 | ) | 576.7 | |||||||||||
Deferred policy acquisition costs | 914.6 | — | 0.3 | 914.9 | ||||||||||||
Deferred income taxes, net | 65.8 | — | 0.1 | 65.9 | ||||||||||||
Other assets [2] | 325.1 | — | 15.5 | 340.6 | ||||||||||||
Discontinued operations assets | 47.1 | — | 4.8 | 51.9 | ||||||||||||
Separate account assets | 3,273.50 | — | — | 3,273.50 | ||||||||||||
Total assets | $ | 21,452.20 | $ | — | $ | 0.4 | $ | 21,452.60 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,577.70 | $ | — | $ | (7.9 | ) | $ | 12,569.80 | |||||||
Policyholder deposit funds | 3,247.80 | — | 8.1 | 3,255.90 | ||||||||||||
Dividend obligations | 744.6 | — | (2.1 | ) | 742.5 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and post-employment liabilities | 418.5 | — | — | 418.5 | ||||||||||||
Other liabilities | 385.3 | — | (2.9 | ) | 382.4 | |||||||||||
Discontinued operations liabilities | 41.3 | — | 4.8 | 46.1 | ||||||||||||
Separate account liabilities | 3,273.50 | — | — | 3,273.50 | ||||||||||||
Total liabilities | 21,067.50 | — | — | 21,067.50 | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.00 | — | — | 2,633.00 | ||||||||||||
Accumulated other comprehensive income (loss) | (274.3 | ) | — | 3.2 | (271.1 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,798.7 | ) | — | (2.8 | ) | (1,801.5 | ) | |||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 377.2 | — | 0.4 | 377.6 | ||||||||||||
Noncontrolling interests | 7.5 | — | — | 7.5 | ||||||||||||
Total stockholders’ equity | 384.7 | — | 0.4 | 385.1 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 21,452.20 | $ | — | $ | 0.4 | $ | 21,452.60 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $68.7 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended June 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 87.4 | $ | — | $ | — | $ | 87.4 | ||||||||
Fee income | 132.6 | — | — | 132.6 | ||||||||||||
Net investment income | 194 | — | (0.1 | ) | 193.9 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | — | — | (0.4 | ) | (0.4 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (2.5 | ) | — | — | (2.5 | ) | ||||||||||
Net OTTI losses recognized in earnings | (2.5 | ) | — | (0.4 | ) | (2.9 | ) | |||||||||
Net realized investment gains (losses), excluding OTTI losses | 9.7 | — | (1.5 | ) | 8.2 | |||||||||||
Net realized investment gains (losses) | 7.2 | — | (1.9 | ) | 5.3 | |||||||||||
Total revenues | 421.2 | — | (2.0 | ) | 419.2 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 272.8 | — | (0.6 | ) | 272.2 | |||||||||||
Policyholder dividends | 51.3 | — | 0.1 | 51.4 | ||||||||||||
Policy acquisition cost amortization | 32.2 | — | (5.1 | ) | 27.1 | |||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 91.8 | — | (0.5 | ) | 91.3 | |||||||||||
Total benefits and expenses | 455.2 | — | (6.1 | ) | 449.1 | |||||||||||
Income (loss) from continuing operations before income taxes | (34.0 | ) | — | 4.1 | (29.9 | ) | ||||||||||
Income tax expense (benefit) | (1.3 | ) | — | 0.1 | (1.2 | ) | ||||||||||
Income (loss) from continuing operations | (32.7 | ) | — | 4 | (28.7 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net income (loss) | (32.9 | ) | — | 4 | (28.9 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (32.8 | ) | $ | — | $ | 4 | $ | (28.8 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended June 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (32.8 | ) | $ | — | $ | 4 | $ | (28.8 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (32.9 | ) | — | 4 | (28.9 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | (40.4 | ) | — | 0.5 | (39.9 | ) | ||||||||||
Net pension liability adjustment | 2.6 | — | — | 2.6 | ||||||||||||
Other comprehensive income (loss) before income taxes | (37.8 | ) | — | 0.5 | (37.3 | ) | ||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | (24.3 | ) | — | 0.1 | (24.2 | ) | ||||||||||
Net pension liability adjustment | — | — | — | |||||||||||||
Total income tax expense (benefit) | (24.3 | ) | — | 0.1 | (24.2 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (13.5 | ) | — | 0.4 | (13.1 | ) | ||||||||||
Comprehensive income (loss) | (46.4 | ) | — | 4.4 | (42.0 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (46.3 | ) | $ | — | $ | 4.4 | $ | (41.9 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (5.69 | ) | $ | — | $ | 0.7 | $ | (4.99 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (5.69 | ) | $ | — | $ | 0.7 | $ | (4.99 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (5.71 | ) | $ | — | $ | 0.7 | $ | (5.02 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (5.71 | ) | $ | — | $ | 0.7 | $ | (5.02 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the six months ended June 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 170.1 | $ | — | $ | — | $ | 170.1 | ||||||||
Fee income | 268.9 | — | — | 268.9 | ||||||||||||
Net investment income | 385.1 | — | (0.8 | ) | 384.3 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (0.9 | ) | — | — | (0.9 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (4.2 | ) | — | — | (4.2 | ) | ||||||||||
Net OTTI losses recognized in earnings | (5.1 | ) | — | — | (5.1 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | (3.6 | ) | — | (0.6 | ) | (4.2 | ) | |||||||||
Net realized investment gains (losses) | (8.7 | ) | — | (0.6 | ) | (9.3 | ) | |||||||||
Total revenues | 815.4 | — | (1.4 | ) | 814 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 591.6 | — | (48.8 | ) | [1] | 542.8 | ||||||||||
Policyholder dividends | 55.7 | — | 45 | [1] | 100.7 | |||||||||||
Policy acquisition cost amortization | 77.5 | — | (0.8 | ) | 76.7 | |||||||||||
Interest expense on indebtedness | 14.8 | — | (0.6 | ) | 14.2 | |||||||||||
Other operating expenses | 172.6 | — | 1.9 | 174.5 | ||||||||||||
Total benefits and expenses | 912.2 | — | (3.3 | ) | 908.9 | |||||||||||
Income (loss) from continuing operations before income taxes | (96.8 | ) | — | 1.9 | (94.9 | ) | ||||||||||
Income tax expense (benefit) | 2.9 | — | 0.1 | 3 | ||||||||||||
Income (loss) from continuing operations | (99.7 | ) | — | 1.8 | (97.9 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (2.0 | ) | — | — | (2.0 | ) | ||||||||||
Net income (loss) | (101.7 | ) | — | 1.8 | (99.9 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (101.5 | ) | $ | — | $ | 1.8 | $ | (99.7 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the six months ended June 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (101.5 | ) | $ | — | $ | 1.8 | $ | (99.7 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net income (loss) | (101.7 | ) | — | 1.8 | (99.9 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (47.9 | ) | — | (1.0 | ) | (48.9 | ) | |||||||||
Net pension liability adjustment | 6.4 | — | (1.2 | ) | 5.2 | |||||||||||
Other comprehensive income (loss) before income taxes | (41.5 | ) | — | (2.2 | ) | (43.7 | ) | |||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (16.5 | ) | — | 0.1 | (16.4 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (16.5 | ) | — | 0.1 | (16.4 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (25.0 | ) | — | (2.3 | ) | (27.3 | ) | |||||||||
Comprehensive income (loss) | (126.7 | ) | — | (0.5 | ) | (127.2 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (126.5 | ) | $ | — | $ | (0.5 | ) | $ | (127.0 | ) | |||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (17.36 | ) | $ | — | $ | 0.31 | $ | (17.01 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (17.36 | ) | $ | — | $ | 0.31 | $ | (17.01 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.35 | ) | $ | — | $ | — | $ | (0.35 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.35 | ) | $ | — | $ | — | $ | (0.35 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc.– basic | $ | (17.68 | ) | $ | — | $ | 0.31 | $ | (17.36 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (17.68 | ) | $ | — | $ | 0.31 | $ | (17.36 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended June 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (101.5 | ) | $ | 1.8 | $ | (99.7 | ) | ||||||||
Net realized investment gains / losses | 8.7 | 0.6 | 9.3 | |||||||||||||
Policy acquisition costs deferred | (28.9 | ) | (0.4 | ) | (29.3 | ) | ||||||||||
Policy acquisition cost amortization | 77.5 | (0.8 | ) | 76.7 | ||||||||||||
Amortization and depreciation | 4.3 | — | 4.3 | |||||||||||||
Interest credited | 63.7 | — | 63.7 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (21.4 | ) | 0.1 | (21.3 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (70.1 | ) | — | (70.1 | ) | |||||||||||
Deferred income taxes, net | — | — | — | |||||||||||||
Reinsurance recoverable | 5.8 | 8 | 13.8 | |||||||||||||
Policy liabilities and accruals | (193.8 | ) | (55.3 | ) | [1] | (249.1 | ) | |||||||||
Dividend obligations | (33.5 | ) | 45 | [1] | 11.5 | |||||||||||
Pension and post-employment liabilities | (4.4 | ) | — | (4.4 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (2.0 | ) | — | (2.0 | ) | |||||||||||
Other operating activities, net [2] | 35.2 | 1 | 36.2 | |||||||||||||
Cash provided by (used for) operating activities | (260.4 | ) | — | (260.4 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (992.7 | ) | 16.1 | [3] | (976.6 | ) | ||||||||||
Available-for-sale equity securities | (2.4 | ) | (16.1 | ) | [3] | (18.5 | ) | |||||||||
Short-term investments | (849.4 | ) | — | (849.4 | ) | |||||||||||
Derivative instruments | (59.8 | ) | — | (59.8 | ) | |||||||||||
Fair value and other investments [4] | (20.0 | ) | — | (20.0 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 912.6 | (0.1 | ) | [3] | 912.5 | |||||||||||
Available-for-sale equity securities | 2.7 | 0.1 | [3] | 2.8 | ||||||||||||
Short-term investments | 949.6 | — | 949.6 | |||||||||||||
Derivative instruments | 22.4 | — | 22.4 | |||||||||||||
Fair value and other investments [4] | 11.7 | — | 11.7 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (27.7 | ) | — | (27.7 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 58.8 | — | 58.8 | |||||||||||||
Policy loans, net | 57.3 | — | 57.3 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (4.2 | ) | — | (4.2 | ) | |||||||||||
Cash provided by (used for) investing activities | 58.9 | — | 58.9 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended June 30, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 708.9 | — | 708.9 | |||||||||||||
Policyholder withdrawals | (578.1 | ) | — | (578.1 | ) | |||||||||||
Net transfers (to) from separate accounts | 193 | — | 193 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 1.1 | — | 1.1 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 324.9 | — | 324.9 | |||||||||||||
Change in cash and cash equivalents | 123.4 | — | 123.4 | |||||||||||||
Change in cash included in discontinued operations assets | (0.5 | ) | — | (0.5 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 369.3 | $ | — | $ | 369.3 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (8.7 | ) | $ | — | $ | (8.7 | ) | ||||||||
Interest expense on indebtedness paid | $ | (13.9 | ) | $ | — | $ | (13.9 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 74.4 | $ | — | $ | 74.4 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended June 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.1 | ) | — | (0.1 | ) | |||||||||||
Balance, end of period | $ | 2,633.00 | $ | — | $ | 2,633.00 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | (25.0 | ) | (2.3 | ) | (27.3 | ) | ||||||||||
Balance, end of period | $ | (274.3 | ) | $ | 3.2 | $ | (271.1 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | (101.5 | ) | 1.8 | (99.7 | ) | |||||||||||
Balance, end of period | $ | (1,798.7 | ) | $ | (2.8 | ) | $ | (1,801.5 | ) | |||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (126.6 | ) | (0.5 | ) | (127.1 | ) | ||||||||||
Balance, end of period | $ | 377.2 | $ | 0.4 | $ | 377.6 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Change in noncontrolling interests | 0.8 | — | 0.8 | |||||||||||||
Balance, end of period | $ | 7.5 | $ | — | $ | 7.5 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | (125.8 | ) | (0.5 | ) | (126.3 | ) | ||||||||||
Balance, end of period | $ | 384.7 | $ | 0.4 | $ | 385.1 | ||||||||||
($ in millions, except share data) | Consolidated Balance Sheet | |||||||||||||||
As of September 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
ASSETS: | ||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 11,713.20 | $ | — | $ | (63.4 | ) | [1] | $ | 11,649.80 | ||||||
Available-for-sale equity securities, at fair value | 45.2 | — | 62.5 | [1] | 107.7 | |||||||||||
Short-term investments | 454.8 | — | — | 454.8 | ||||||||||||
Limited partnerships and other investments | 573 | — | — | 573 | ||||||||||||
Policy loans, at unpaid principal balances | 2,329.90 | — | — | 2,329.90 | ||||||||||||
Derivative instruments | 197.2 | — | (17.2 | ) | 180 | |||||||||||
Fair value investments | 223.7 | — | — | 223.7 | ||||||||||||
Total investments | 15,537.00 | — | (18.1 | ) | 15,518.90 | |||||||||||
Cash and cash equivalents | 492.8 | — | — | 492.8 | ||||||||||||
Accrued investment income | 206.1 | — | — | 206.1 | ||||||||||||
Reinsurance recoverable | 589.6 | — | 0.3 | 589.9 | ||||||||||||
Deferred policy acquisition costs | 900.4 | — | 4.8 | 905.2 | ||||||||||||
Deferred income taxes, net | 66 | — | 0.1 | 66.1 | ||||||||||||
Other assets [2] | 345 | — | 23.6 | 368.6 | ||||||||||||
Discontinued operations assets | 45.5 | — | 4.8 | 50.3 | ||||||||||||
Separate account assets | 3,350.90 | — | — | 3,350.90 | ||||||||||||
Total assets | $ | 21,533.30 | $ | — | $ | 15.5 | $ | 21,548.80 | ||||||||
LIABILITIES: | ||||||||||||||||
Policy liabilities and accruals | $ | 12,559.30 | $ | — | $ | (8.2 | ) | $ | 12,551.10 | |||||||
Policyholder deposit funds | 3,328.60 | — | 10.4 | 3,339.00 | ||||||||||||
Dividend obligations | 746.5 | — | (1.7 | ) | 744.8 | |||||||||||
Indebtedness | 378.8 | — | — | 378.8 | ||||||||||||
Pension and postretirement liabilities | 407.2 | — | — | 407.2 | ||||||||||||
Other liabilities | 342.9 | — | 5.2 | 348.1 | ||||||||||||
Discontinued operations liabilities | 39.6 | — | 4.7 | 44.3 | ||||||||||||
Separate account liabilities | 3,350.90 | — | — | 3,350.90 | ||||||||||||
Total liabilities | 21,153.80 | — | 10.4 | 21,164.20 | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | — | — | 0.1 | ||||||||||||
Additional paid-in capital | 2,633.10 | — | — | 2,633.10 | ||||||||||||
Accumulated other comprehensive income (loss) | (258.9 | ) | — | 3.5 | (255.4 | ) | ||||||||||
Retained earnings (accumulated deficit) | (1,820.5 | ) | — | 1.6 | (1,818.9 | ) | ||||||||||
Treasury stock, at cost: 0.7 million shares | (182.9 | ) | — | — | (182.9 | ) | ||||||||||
Total The Phoenix Companies, Inc. stockholders’ equity | 370.9 | — | 5.1 | 376 | ||||||||||||
Noncontrolling interests | 8.6 | — | — | 8.6 | ||||||||||||
Total stockholders’ equity | 379.5 | — | 5.1 | 384.6 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 21,533.30 | $ | — | $ | 15.5 | $ | 21,548.80 | ||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is a reclassification of $62.5 million to reflect perpetual preferred stock securities as available-for-sale equity securities. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 84.5 | $ | — | $ | — | $ | 84.5 | ||||||||
Fee income | 140.4 | — | — | 140.4 | ||||||||||||
Net investment income | 199.3 | — | — | 199.3 | ||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (1.7 | ) | — | 0.2 | (1.5 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.4 | ) | — | — | (0.4 | ) | ||||||||||
Net OTTI losses recognized in earnings | (2.1 | ) | — | 0.2 | (1.9 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 10.1 | — | (2.6 | ) | 7.5 | |||||||||||
Net realized investment gains (losses) | 8 | — | (2.4 | ) | 5.6 | |||||||||||
Total revenues | 432.2 | — | (2.4 | ) | 429.8 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 261.1 | — | (1.5 | ) | 259.6 | |||||||||||
Policyholder dividends | 66.2 | — | 0.1 | 66.3 | ||||||||||||
Policy acquisition cost amortization | 33.1 | — | (4.5 | ) | 28.6 | |||||||||||
Interest expense on indebtedness | 7.1 | — | — | 7.1 | ||||||||||||
Other operating expenses | 77.7 | — | (0.4 | ) | 77.3 | |||||||||||
Total benefits and expenses | 445.2 | — | (6.3 | ) | 438.9 | |||||||||||
Income (loss) from continuing operations before income taxes | (13.0 | ) | — | 3.9 | (9.1 | ) | ||||||||||
Income tax expense (benefit) | 9.2 | — | (0.5 | ) | 8.7 | |||||||||||
Income (loss) from continuing operations | (22.2 | ) | — | 4.4 | (17.8 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 0.3 | — | — | 0.3 | ||||||||||||
Net income (loss) | (21.9 | ) | — | 4.4 | (17.5 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (21.8 | ) | $ | — | $ | 4.4 | $ | (17.4 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the three months ended September 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (21.8 | ) | $ | — | $ | 4.4 | $ | (17.4 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Net income (loss) | (21.9 | ) | — | 4.4 | (17.5 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | 12.6 | — | 0.3 | 12.9 | ||||||||||||
Net pension liability adjustment | 2.6 | — | — | 2.6 | ||||||||||||
Other comprehensive income (loss) before income taxes | 15.2 | — | 0.3 | 15.5 | ||||||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [1] | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (0.2 | ) | — | — | (0.2 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | 15.4 | — | 0.3 | 15.7 | ||||||||||||
Comprehensive income (loss) | (6.5 | ) | — | 4.7 | (1.8 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (6.4 | ) | $ | — | $ | 4.7 | $ | (1.7 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (3.87 | ) | $ | — | $ | 0.77 | $ | (3.08 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (3.87 | ) | $ | — | $ | 0.77 | $ | (3.08 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | 0.05 | $ | — | $ | — | $ | 0.05 | ||||||||
Income (loss) from discontinued operations – diluted | $ | 0.05 | $ | — | $ | — | $ | 0.05 | ||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (3.80 | ) | $ | — | $ | 0.77 | $ | (3.03 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (3.80 | ) | $ | — | $ | 0.77 | $ | (3.03 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions, except share data) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 254.6 | $ | — | $ | — | $ | 254.6 | ||||||||
Fee income | 409.3 | — | — | 409.3 | ||||||||||||
Net investment income | 584.4 | — | (0.8 | ) | 583.6 | |||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (2.6 | ) | — | 0.2 | (2.4 | ) | ||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (4.6 | ) | — | — | (4.6 | ) | ||||||||||
Net OTTI losses recognized in earnings | (7.2 | ) | — | 0.2 | (7.0 | ) | ||||||||||
Net realized investment gains (losses), excluding OTTI losses | 6.5 | — | (3.2 | ) | 3.3 | |||||||||||
Net realized investment gains (losses) | (0.7 | ) | — | (3.0 | ) | (3.7 | ) | |||||||||
Total revenues | 1,247.60 | — | (3.8 | ) | 1,243.80 | |||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Policy benefits | 852.7 | — | (50.3 | ) | [1] | 802.4 | ||||||||||
Policyholder dividends | 121.9 | — | 45.1 | [1] | 167 | |||||||||||
Policy acquisition cost amortization | 110.6 | — | (5.3 | ) | 105.3 | |||||||||||
Interest expense on indebtedness | 21.9 | — | (0.6 | ) | 21.3 | |||||||||||
Other operating expenses | 250.3 | — | 1.5 | 251.8 | ||||||||||||
Total benefits and expenses | 1,357.40 | — | (9.6 | ) | 1,347.80 | |||||||||||
Income (loss) from continuing operations before income taxes | (109.8 | ) | — | 5.8 | (104.0 | ) | ||||||||||
Income tax expense (benefit) | 12.1 | — | (0.4 | ) | 11.7 | |||||||||||
Income (loss) from continuing operations | (121.9 | ) | — | 6.2 | (115.7 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | (1.7 | ) | — | — | (1.7 | ) | ||||||||||
Net income (loss) | (123.6 | ) | — | 6.2 | (117.4 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (123.3 | ) | $ | — | $ | 6.2 | $ | (117.1 | ) | ||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statements of Income and Comprehensive Income | |||||||||||||||
($ in millions, except share data) | For the nine months ended September 30, 2013 | |||||||||||||||
Correction of errors | ||||||||||||||||
As | UL | Other | As | |||||||||||||
reported | unlock | adjustments | revised | |||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (123.3 | ) | $ | — | $ | 6.2 | $ | (117.1 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Net income (loss) | (123.6 | ) | — | 6.2 | (117.4 | ) | ||||||||||
Other comprehensive income (loss) before income taxes: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (35.3 | ) | — | (0.7 | ) | (36.0 | ) | |||||||||
Net pension liability adjustment | 9 | — | (1.2 | ) | 7.8 | |||||||||||
Other comprehensive income (loss) before income taxes | (26.3 | ) | — | (1.9 | ) | (28.2 | ) | |||||||||
Less: Income tax expense (benefit) related to: | ||||||||||||||||
Unrealized investment gains (losses), net of related offsets [2] | (16.7 | ) | — | 0.1 | (16.6 | ) | ||||||||||
Net pension liability adjustment | — | — | — | — | ||||||||||||
Total income tax expense (benefit) | (16.7 | ) | — | 0.1 | (16.6 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (9.6 | ) | — | (2.0 | ) | (11.6 | ) | |||||||||
Comprehensive income (loss) | (133.2 | ) | — | 4.2 | (129.0 | ) | ||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ | (132.9 | ) | $ | — | $ | 4.2 | $ | (128.7 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Income (loss) from continuing operations – basic | $ | (21.23 | ) | $ | — | $ | 1.08 | $ | (20.09 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (21.23 | ) | $ | — | $ | 1.08 | $ | (20.09 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.30 | ) | $ | — | $ | — | $ | (0.30 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.30 | ) | $ | — | $ | — | $ | (0.30 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (21.47 | ) | $ | — | $ | 1.08 | $ | (20.39 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (21.47 | ) | $ | — | $ | 1.08 | $ | (20.39 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,742 | ||||||||||||||
——————— | ||||||||||||||||
[1] | Included within Other Adjustments is an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Amounts were previously presented separately as net unrealized gains (losses) on investments where credit-related impairments were recognized, and net unrealized gains (losses) on all other investments in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of Cash Flows | |||||||||||||||
For the period ended September 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | (123.3 | ) | $ | 6.2 | $ | (117.1 | ) | ||||||||
Net realized investment gains / losses | (3.8 | ) | 3 | (0.8 | ) | |||||||||||
Policy acquisition costs deferred | (42.8 | ) | (0.7 | ) | (43.5 | ) | ||||||||||
Policy acquisition cost amortization | 110.6 | (5.3 | ) | 105.3 | ||||||||||||
Amortization and depreciation | 6.3 | — | 6.3 | |||||||||||||
Interest credited | 99.8 | — | 99.8 | |||||||||||||
Equity in earnings of limited partnerships and other investments | (35.4 | ) | 0.1 | (35.3 | ) | |||||||||||
Change in: | ||||||||||||||||
Accrued investment income | (102.8 | ) | — | (102.8 | ) | |||||||||||
Deferred income taxes, net | — | — | — | |||||||||||||
Reinsurance recoverable | (6.7 | ) | 7.4 | 0.7 | ||||||||||||
Policy liabilities and accruals | (299.3 | ) | (56.2 | ) | [1] | (355.5 | ) | |||||||||
Dividend obligations | (9.4 | ) | 45.1 | [1] | 35.7 | |||||||||||
Pension and post-employment liabilities | (13.1 | ) | — | (13.1 | ) | |||||||||||
Impact of operating activities of consolidated investment entities, net | (3.6 | ) | — | (3.6 | ) | |||||||||||
Other operating activities, net [2] | 45.8 | 0.4 | 46.2 | |||||||||||||
Cash provided by (used for) operating activities | (377.7 | ) | — | (377.7 | ) | |||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of: | ||||||||||||||||
Available-for-sale debt securities | (1,673.6 | ) | 20.4 | [3] | (1,653.2 | ) | ||||||||||
Available-for-sale equity securities | (4.5 | ) | (20.4 | ) | [3] | (24.9 | ) | |||||||||
Short-term investments | (1,089.1 | ) | — | (1,089.1 | ) | |||||||||||
Derivative instruments | (72.4 | ) | — | (72.4 | ) | |||||||||||
Fair value and other investments [4] | (26.7 | ) | — | (26.7 | ) | |||||||||||
Sales, repayments and maturities of: | ||||||||||||||||
Available-for-sale debt securities | 1,524.10 | (4.5 | ) | [3] | 1,519.60 | |||||||||||
Available-for-sale equity securities | 3.8 | 4.5 | [3] | 8.3 | ||||||||||||
Short-term investments | 1,334.50 | — | 1,334.50 | |||||||||||||
Derivative instruments | 34 | — | 34 | |||||||||||||
Fair value and other investments [4] | 18.2 | — | 18.2 | |||||||||||||
Contributions to limited partnerships and limited liability corporations | (51.8 | ) | — | (51.8 | ) | |||||||||||
Distributions from limited partnerships and limited liability corporations | 78.9 | — | 78.9 | |||||||||||||
Policy loans, net | 86.8 | — | 86.8 | |||||||||||||
Impact of investing activities of consolidated investment entities, net | — | — | — | |||||||||||||
Other investing activities, net | (6.9 | ) | — | (6.9 | ) | |||||||||||
Cash provided by (used for) investing activities | 155.3 | — | 155.3 | |||||||||||||
(Continued on next page) | ||||||||||||||||
(Continued from previous page) | Consolidated Statement of Cash Flows | |||||||||||||||
($ in millions, except share data) | For the period ended September 30, 2013 | |||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Policyholder deposits | 1,025.10 | — | 1,025.10 | |||||||||||||
Policyholder withdrawals | (857.4 | ) | — | (857.4 | ) | |||||||||||
Net transfers (to) from separate accounts | 299.3 | — | 299.3 | |||||||||||||
Impact of financing activities of consolidated investment entities, net | 2.3 | — | 2.3 | |||||||||||||
Other financing activities, net | — | — | — | |||||||||||||
Cash provided by (used for) financing activities | 469.3 | — | 469.3 | |||||||||||||
Change in cash and cash equivalents | 246.9 | — | 246.9 | |||||||||||||
Change in cash included in discontinued operations assets | (0.5 | ) | — | (0.5 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 246.4 | — | 246.4 | |||||||||||||
Cash and cash equivalents, end of period | $ | 492.8 | $ | — | $ | 492.8 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||
Income taxes (paid) refunded | $ | (8.5 | ) | $ | — | $ | (8.5 | ) | ||||||||
Interest expense on indebtedness paid | $ | (18.6 | ) | $ | — | $ | (18.6 | ) | ||||||||
Non-Cash Transactions During the Year | ||||||||||||||||
Investment exchanges | $ | 85.7 | $ | — | $ | 85.7 | ||||||||||
——————— | ||||||||||||||||
[1] | Includes an error related to reserves for certain survivorship policies in the closed block of $43.3 million that is fully offset by a change in policyholder dividends. This amount was previously identified and was reported as an out-of-period adjustment in the three months ended March 31, 2013. | |||||||||||||||
[2] | Includes receivables which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
[3] | Includes a reclassification to reflect perpetual preferred stock securities as available-for-sale equity securities from available-for-sale debt securities. | |||||||||||||||
[4] | Includes other investments which were previously disclosed as a separate line item in the 2013 Form 10-K. | |||||||||||||||
($ in millions) | Consolidated Statement of | |||||||||||||||
Changes in Stockholders' Equity | ||||||||||||||||
For the period ended September 30, 2013 | ||||||||||||||||
As | Correction | As | ||||||||||||||
reported | of errors | revised | ||||||||||||||
COMMON STOCK: | ||||||||||||||||
Balance, beginning of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
Balance, end of period | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||
Balance, beginning of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | — | — | ||||||||||||||
Balance, end of period | $ | 2,633.10 | $ | — | $ | 2,633.10 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Balance, beginning of period | $ | (249.3 | ) | $ | 5.5 | $ | (243.8 | ) | ||||||||
Other comprehensive income (loss) | (9.6 | ) | (2.0 | ) | (11.6 | ) | ||||||||||
Balance, end of period | $ | (258.9 | ) | $ | 3.5 | $ | (255.4 | ) | ||||||||
ACCUMULATED DEFICIT: | ||||||||||||||||
Balance, beginning of period | $ | (1,697.2 | ) | $ | (4.6 | ) | $ | (1,701.8 | ) | |||||||
Net income (loss) | (123.3 | ) | 6.2 | (117.1 | ) | |||||||||||
Balance, end of period | $ | (1,820.5 | ) | $ | 1.6 | $ | (1,818.9 | ) | ||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||
Balance, beginning of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
Balance, end of period | $ | (182.9 | ) | $ | — | $ | (182.9 | ) | ||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO | ||||||||||||||||
THE PHOENIX COMPANIES, INC.: | ||||||||||||||||
Balance, beginning of period | $ | 503.8 | $ | 0.9 | $ | 504.7 | ||||||||||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | (132.9 | ) | 4.2 | (128.7 | ) | |||||||||||
Balance, end of period | $ | 370.9 | $ | 5.1 | $ | 376 | ||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||
Balance, beginning of period | $ | 6.7 | $ | — | $ | 6.7 | ||||||||||
Change in noncontrolling interests | 1.9 | — | 1.9 | |||||||||||||
Balance, end of period | $ | 8.6 | $ | — | $ | 8.6 | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Balance, beginning of period | $ | 510.5 | $ | 0.9 | $ | 511.4 | ||||||||||
Change in stockholders’ equity | (131.0 | ) | 4.2 | (126.8 | ) | |||||||||||
Balance, end of period | $ | 379.5 | $ | 5.1 | $ | 384.6 | ||||||||||
Organization_and_Description_o1
Organization and Description of Business Organization and Description of Business Narrative (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments (segment) | 2 |
Restatement_and_Revision_of_Pr2
Restatement and Revision of Previously Reported Financial Information - Narrative (Details) (Correction of errors, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Correction of errors | |
Net income | $6.20 |
Restatement_and_Revision_of_Pr3
Restatement and Revision of Previously Reported Financial Information - Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Aug. 11, 2012 | Aug. 10, 2012 | Dec. 31, 2011 |
In Millions, except Per Share data, unless otherwise specified | ||||||||||||
ASSETS: | ||||||||||||
Available for sale securities, fair value | $12,679.30 | $12,587.50 | $12,370.50 | $11,920.70 | $11,731.50 | $11,649.80 | $11,654.80 | $11,816.60 | ||||
Available-for-sale equity securities, at fair value | 179.5 | 189.9 | 149.1 | 143.2 | 138 | 107.7 | 107.4 | 97.9 | ||||
Short-term investments | 149.7 | 90.4 | 504.8 | 571 | 361.6 | 454.8 | 599.8 | 699.5 | ||||
Limited partnerships and other investments | 542.8 | 560.7 | 557.9 | 569.5 | 561.3 | 573 | 559.4 | 563.4 | ||||
Policy loans, at unpaid principal balances | 2,352.10 | 2,324.10 | 2,325.40 | 2,353.70 | 2,350.30 | 2,329.90 | 2,350.10 | 2,340.10 | ||||
Derivative instruments | 161.3 | 138.2 | 162.5 | 160 | 228.8 | 180 | 188.9 | 181.6 | ||||
Fair value investments | 235.4 | 207.2 | 207.4 | 215.2 | 215.2 | 223.7 | 216.1 | 215.2 | ||||
Total investments | 16,300.10 | 16,098 | 16,277.60 | 15,933.30 | 15,586.70 | 15,518.90 | 15,676.50 | 15,914.30 | ||||
Cash and cash equivalents | 450 | 443.2 | 330.2 | 424.5 | 496.4 | 492.8 | 369.3 | 295.2 | 246.4 | 168.2 | ||
Accrued investment income | 176.7 | 214.2 | 185.7 | 176 | 170.4 | 206.1 | 183.3 | 176.1 | ||||
Reinsurance recoverable | 559.1 | 572.9 | 592.4 | 611.6 | 598.1 | 589.9 | 576.7 | 593.5 | ||||
Deferred policy acquisition costs | 848.6 | 883.9 | 881.8 | 906.9 | 947.8 | 905.2 | 914.9 | 870.6 | ||||
Deferred income taxes, net | 34.2 | 32 | 29.5 | 45.6 | 70 | 66.1 | 65.9 | 41.5 | ||||
Other assets | 311.3 | 316.6 | 301.1 | 299.3 | 320.5 | 368.6 | 340.6 | 339.4 | ||||
Discontinued operations assets | 45.2 | 43.6 | 44.7 | 46.2 | 48.9 | 50.3 | 51.9 | 53.2 | ||||
Separate account assets | 3,020.70 | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | ||||
Total assets | 21,745.90 | 21,693.50 | 21,928.40 | 21,751.40 | 21,641.10 | 21,548.80 | 21,452.60 | 21,690.50 | ||||
LIABILITIES: | ||||||||||||
Policy liabilities and accruals | 12,417.60 | 12,363.50 | 12,410 | 12,398.60 | 12,416.60 | 12,551.10 | 12,569.80 | 12,641.70 | ||||
Policyholder deposit funds | 3,955 | 3,836.60 | 3,673.40 | 3,555.30 | 3,442.60 | 3,339 | 3,255.90 | 3,159.90 | ||||
Dividend obligations | 916.8 | 874.9 | 894.7 | 817.6 | 705.7 | 744.8 | 742.5 | 942.3 | ||||
Indebtedness | 378.9 | 378.8 | 378.9 | 378.8 | 378.8 | 378.8 | 378.8 | 378.8 | ||||
Pension and post-employment liabilities | 380 | 292.7 | 299.7 | 306.6 | 313.1 | 407.2 | 418.5 | 424.7 | ||||
Other liabilities | 289.8 | 285.4 | 383.1 | 379.1 | 337.3 | 348.1 | 382.4 | 262.2 | ||||
Discontinued operations liabilities | 40.5 | 38.8 | 39.9 | 41.5 | 43.4 | 44.3 | 46.1 | 47.6 | ||||
Separate account liabilities | 3,020.70 | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | ||||
Total liabilities | 21,399.30 | 21,159.80 | 21,365.10 | 21,185.50 | 21,039.80 | 21,164.20 | 21,067.50 | 21,263.90 | ||||
COMMITMENTS AND CONTINGENCIES (Notes 22, 23 and 24) | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Additional paid-in capital | 2,632.80 | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633 | 2,632.90 | ||||
Accumulated other comprehensive income (loss) | -234.4 | -179.3 | -172.1 | -192.3 | -185 | -255.4 | -271.1 | -258 | -243.8 | |||
Retained earnings (accumulated deficit) | -1,889 | -1,748.70 | -1,726.30 | -1,703.90 | -1,675.80 | -1,818.90 | -1,801.50 | -1,772.70 | ||||
Treasury stock, at cost: 0.7 million shares | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | ||||
Total The Phoenix Companies, Inc. stockholders’ equity | 326.6 | 521.9 | 551.5 | 554.1 | 589.5 | 376 | 377.6 | 419.4 | ||||
Noncontrolling interests | 20 | 11.8 | 11.8 | 11.8 | 11.8 | 8.6 | 7.5 | 7.2 | ||||
Total stockholders’ equity | 346.6 | 533.7 | 563.3 | 565.9 | 601.3 | 384.6 | 385.1 | 426.6 | 511.4 | 691.4 | ||
Total liabilities and stockholders’ equity | 21,745.90 | 21,693.50 | 21,928.40 | 21,751.40 | 21,641.10 | 21,548.80 | 21,452.60 | 21,690.50 | ||||
Common stock par value (USD per share) | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||
Shares outstanding (shares) | 5.8 | 5.7 | 5.7 | 5.8 | 116 | |||||||
Treasury stock (shares) | 0.7 | 0.7 | 0.7 | |||||||||
As reported | ||||||||||||
ASSETS: | ||||||||||||
Available for sale securities, fair value | 12,706.60 | 12,454.10 | 12,002.10 | 11,808.60 | 11,713.20 | 11,725.90 | 11,881.10 | |||||
Available-for-sale equity securities, at fair value | 75.4 | 68.5 | 64.1 | 61.8 | 45.2 | 38.7 | 34.6 | |||||
Short-term investments | 90.4 | 504.8 | 571 | 361.6 | 454.8 | 599.8 | 699.5 | |||||
Limited partnerships and other investments | 559.9 | 557.9 | 569.5 | 561.9 | 573 | 559.4 | 563.4 | |||||
Policy loans, at unpaid principal balances | 2,324.10 | 2,325.40 | 2,353.70 | 2,350.30 | 2,329.90 | 2,350.10 | 2,340.10 | |||||
Derivative instruments | 149.9 | 175 | 172.7 | 243.1 | 197.2 | 206.5 | 194.4 | |||||
Fair value investments | 206.5 | 207.4 | 215.2 | 210.8 | 223.7 | 216.1 | 215.2 | |||||
Total investments | 16,112.80 | 16,293.10 | 15,948.30 | 15,598.10 | 15,537 | 15,696.50 | 15,928.30 | |||||
Cash and cash equivalents | 443.2 | 330.2 | 424.5 | 496.4 | 492.8 | 369.3 | 295.2 | 246.4 | 168.2 | |||
Accrued investment income | 214.2 | 185.7 | 176 | 170.4 | 206.1 | 183.3 | 176.1 | |||||
Reinsurance recoverable | 575.6 | 594.7 | 616 | 603.3 | 589.6 | 577 | 594.4 | |||||
Deferred policy acquisition costs | 874.6 | 869 | 892.4 | 940.6 | 900.4 | 914.6 | 881.5 | |||||
Deferred income taxes, net | 31.8 | 29.4 | 47.4 | 70 | 66 | 65.8 | 41.5 | |||||
Other assets | 300.7 | 279 | 278.8 | 299.9 | 345 | 325.1 | 319.1 | |||||
Discontinued operations assets | 38.8 | 39.9 | 41.4 | 43.6 | 45.5 | 47.1 | 48.4 | |||||
Separate account assets | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | |||||
Total assets | 21,680.80 | 21,906.40 | 21,732.80 | 21,624.60 | 21,533.30 | 21,452.20 | 21,691.20 | |||||
LIABILITIES: | ||||||||||||
Policy liabilities and accruals | 12,384.20 | 12,429 | 12,425.80 | 12,437.60 | 12,559.30 | 12,577.70 | 12,653.80 | |||||
Policyholder deposit funds | 3,819.50 | 3,658.70 | 3,540 | 3,429.70 | 3,328.60 | 3,247.80 | 3,153.80 | |||||
Dividend obligations | 876.1 | 895.6 | 819.8 | 705.9 | 746.5 | 744.6 | 943.8 | |||||
Indebtedness | 378.9 | 378.9 | 378.8 | 378.8 | 378.8 | 378.8 | 378.8 | |||||
Pension and post-employment liabilities | 295.5 | 302.5 | 309.4 | 315.9 | 407.2 | 418.5 | 424.7 | |||||
Other liabilities | 282.6 | 376.4 | 373 | 333 | 342.9 | 385.3 | 256.1 | |||||
Discontinued operations liabilities | 34 | 35.1 | 36.7 | 37.7 | 39.6 | 41.3 | 42.9 | |||||
Separate account liabilities | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | |||||
Total liabilities | 21,159.90 | 21,361.60 | 21,191.50 | 21,040.90 | 21,153.80 | 21,067.50 | 21,260.60 | |||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||
Additional paid-in capital | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633 | 2,632.90 | |||||
Accumulated other comprehensive income (loss) | -182.9 | -177.2 | -195.4 | -185.2 | -258.9 | -274.3 | -260.8 | |||||
Retained earnings (accumulated deficit) | -1,757.90 | -1,739.70 | -1,725.40 | -1,692.10 | -1,820.50 | -1,798.70 | -1,765.90 | |||||
Treasury stock, at cost: 0.7 million shares | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | |||||
Total The Phoenix Companies, Inc. stockholders’ equity | 509.1 | 533 | 529.5 | 573 | 370.9 | 377.2 | 423.4 | |||||
Noncontrolling interests | 11.8 | 11.8 | 11.8 | 10.7 | 8.6 | 7.5 | 7.2 | |||||
Total stockholders’ equity | 520.9 | 544.8 | 541.3 | 583.7 | 379.5 | 384.7 | 430.6 | 510.5 | 695.7 | |||
Total liabilities and stockholders’ equity | 21,680.80 | 21,906.40 | 21,732.80 | 21,624.60 | 21,533.30 | 21,452.20 | 21,691.20 | |||||
Correction of errors | ||||||||||||
ASSETS: | ||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Total stockholders’ equity | 12.8 | 18.5 | 24.6 | 17.6 | 5.1 | 0.4 | -4 | 0.9 | -4.3 | |||
UL unlock | Correction of errors | ||||||||||||
ASSETS: | ||||||||||||
Available for sale securities, fair value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Available-for-sale equity securities, at fair value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Limited partnerships and other investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Policy loans, at unpaid principal balances | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Derivative instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Fair value investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Accrued investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Reinsurance recoverable | -3.9 | -3.8 | -4.3 | -4.3 | 0 | 0 | 0 | |||||
Deferred policy acquisition costs | 7.2 | 7.7 | 7.8 | 7.8 | 0 | 0 | 0 | |||||
Deferred income taxes, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Other assets | 0 | 0 | 0 | 0.1 | 0 | 0 | 0 | |||||
Discontinued operations assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Separate account assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total assets | 3.3 | 3.9 | 3.5 | 3.6 | 0 | 0 | 0 | |||||
LIABILITIES: | ||||||||||||
Policy liabilities and accruals | -18.9 | -18.4 | -17.5 | -15.9 | 0 | 0 | 0 | |||||
Policyholder deposit funds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Dividend obligations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Indebtedness | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Pension and post-employment liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Other liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Discontinued operations liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Separate account liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total liabilities | -18.9 | -18.4 | -17.5 | -15.9 | 0 | 0 | 0 | |||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Additional paid-in capital | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Accumulated other comprehensive income (loss) | 0.7 | 1.2 | 1.1 | 0.3 | 0 | 0 | 0 | |||||
Retained earnings (accumulated deficit) | 21.5 | 21.1 | 19.9 | 19.2 | 0 | 0 | 0 | |||||
Treasury stock, at cost: 0.7 million shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total The Phoenix Companies, Inc. stockholders’ equity | 22.2 | 22.3 | 21 | 19.5 | 0 | 0 | 0 | |||||
Noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total stockholders’ equity | 22.2 | 22.3 | 21 | 19.5 | 0 | 0 | 0 | |||||
Total liabilities and stockholders’ equity | 3.3 | 3.9 | 3.5 | 3.6 | 0 | 0 | 0 | |||||
Other adjustments | Correction of errors | ||||||||||||
ASSETS: | ||||||||||||
Available for sale securities, fair value | -119.1 | -83.6 | -81.4 | -77.1 | -63.4 | -71.1 | -64.5 | |||||
Available-for-sale equity securities, at fair value | 114.5 | 80.6 | 79.1 | 76.2 | 62.5 | 68.7 | 63.3 | |||||
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Limited partnerships and other investments | 0.8 | 0 | 0 | -0.6 | 0 | 0 | 0 | |||||
Policy loans, at unpaid principal balances | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Derivative instruments | -11.7 | -12.5 | -12.7 | -14.3 | -17.2 | -17.6 | -12.8 | |||||
Fair value investments | 0.7 | 0 | 0 | 4.4 | 0 | 0 | 0 | |||||
Total investments | -14.8 | -15.5 | -15 | -11.4 | -18.1 | -20 | -14 | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Accrued investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Reinsurance recoverable | 1.2 | 1.5 | -0.1 | -0.9 | 0.3 | -0.3 | -0.9 | |||||
Deferred policy acquisition costs | 2.1 | 5.1 | 6.7 | -0.6 | 4.8 | 0.3 | -10.9 | |||||
Deferred income taxes, net | 0.2 | 0.1 | -1.8 | 0 | 0.1 | 0.1 | 0 | |||||
Other assets | 15.9 | 22.1 | 20.5 | 20.5 | 23.6 | 15.5 | 20.3 | |||||
Discontinued operations assets | 4.8 | 4.8 | 4.8 | 5.3 | 4.8 | 4.8 | 4.8 | |||||
Separate account assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total assets | 9.4 | 18.1 | 15.1 | 12.9 | 15.5 | 0.4 | -0.7 | |||||
LIABILITIES: | ||||||||||||
Policy liabilities and accruals | -1.8 | -0.6 | -9.7 | -5.1 | -8.2 | -7.9 | -12.1 | |||||
Policyholder deposit funds | 17.1 | 14.7 | 15.3 | 12.9 | 10.4 | 8.1 | 6.1 | |||||
Dividend obligations | -1.2 | -0.9 | -2.2 | -0.2 | -1.7 | -2.1 | -1.5 | |||||
Indebtedness | -0.1 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Pension and post-employment liabilities | -2.8 | -2.8 | -2.8 | -2.8 | 0 | 0 | 0 | |||||
Other liabilities | 2.8 | 6.7 | 6.1 | 4.3 | 5.2 | -2.9 | 6.1 | |||||
Discontinued operations liabilities | 4.8 | 4.8 | 4.8 | 5.7 | 4.7 | 4.8 | 4.7 | |||||
Separate account liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total liabilities | 18.8 | 21.9 | 11.5 | 14.8 | 10.4 | 0 | 3.3 | |||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Additional paid-in capital | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Accumulated other comprehensive income (loss) | 2.9 | 3.9 | 2 | -0.1 | 3.5 | 3.2 | 2.8 | |||||
Retained earnings (accumulated deficit) | -12.3 | -7.7 | 1.6 | -2.9 | 1.6 | -2.8 | -6.8 | |||||
Treasury stock, at cost: 0.7 million shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total The Phoenix Companies, Inc. stockholders’ equity | -9.4 | -3.8 | 3.6 | -3 | 5.1 | 0.4 | -4 | |||||
Noncontrolling interests | 0 | 0 | 0 | 1.1 | 0 | 0 | 0 | |||||
Total stockholders’ equity | -9.4 | -3.8 | 3.6 | -1.9 | 5.1 | 0.4 | -4 | |||||
Total liabilities and stockholders’ equity | $9.40 | $18.10 | $15.10 | $12.90 | $15.50 | $0.40 | ($0.70) |
Restatement_and_Revision_of_Pr4
Restatement and Revision of Previously Reported Financial Information - Income Statement and Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||||||||||||||
Premiums | $78.10 | $83.20 | $79.60 | $84.50 | $87.40 | $82.70 | $162.80 | $170.10 | $240.90 | $254.60 | $332.10 | $351.60 | $402.30 | ||
Fee income | 135.2 | 134.2 | 134.8 | 140.4 | 132.6 | 136.3 | 269 | 268.9 | 404.2 | 409.3 | 545.1 | 550.3 | 556 | ||
Net investment income | 204.9 | 191.5 | 211.5 | 199.3 | 193.9 | 190.4 | 403 | 384.3 | 607.9 | 583.6 | 830.9 | 789.7 | 827.8 | ||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | -3.7 | -1 | 0 | -1.5 | -0.4 | -0.5 | -1 | -0.9 | -4.7 | -2.4 | -7.7 | -7 | -50.8 | ||
Portion of losses recognized in OCI | -0.2 | 0 | -0.2 | -0.4 | -2.5 | -1.7 | -0.2 | -4.2 | -0.4 | -4.6 | -0.4 | -4.8 | 22.9 | ||
Net OTTI losses recognized in earnings | -3.9 | -1 | -0.2 | -1.9 | -2.9 | -2.2 | -1.2 | -5.1 | -5.1 | -7 | -8.1 | -11.8 | -27.9 | ||
Net realized investment gains (losses), excluding OTTI losses | 0.1 | 5.2 | -26.7 | 7.5 | 8.2 | -12.4 | -21.5 | -4.2 | -21.4 | 3.3 | -33.1 | 27.8 | 11.1 | ||
Net realized investment gains (losses) | -3.8 | 4.2 | -26.9 | 5.6 | 5.3 | -14.6 | -22.7 | -9.3 | -26.5 | -3.7 | -41.2 | 16 | -16.8 | ||
Gain on debt repurchase | 0 | 0 | 11.9 | ||||||||||||
Total revenues | 440.4 | 414.4 | 413.1 | 399 | 463.8 | 429.8 | 419.2 | 394.8 | 812.1 | 814 | 1,226.50 | 1,243.80 | 1,666.90 | 1,707.60 | 1,781.20 |
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | 263.6 | 301.3 | 230.3 | 259.6 | 272.2 | 270.6 | 531.6 | 542.8 | 795.2 | 802.4 | 1,119.20 | 965.1 | 1,162.40 | ||
Policyholder dividends | 57 | 42.6 | 72.2 | 66.3 | 51.4 | 49.3 | 114.8 | 100.7 | 171.8 | 167 | 244.8 | 235.9 | 292.1 | ||
Policy acquisition cost amortization | 29.4 | 19.1 | 24.6 | 28.6 | 27.1 | 49.6 | 43.7 | 76.7 | 73.1 | 105.3 | 119.6 | 103.1 | 196.1 | ||
Interest expense on indebtedness | 7 | 7.1 | 7.1 | 7.1 | 7.1 | 7.1 | 14.2 | 14.2 | 21.2 | 21.3 | 28.3 | 28.3 | 30.8 | ||
Other operating expenses | 77 | 84.4 | 97.2 | 77.3 | 91.3 | 83.2 | 181.6 | 174.5 | 258.6 | 251.8 | 350.2 | 337.1 | 253.3 | ||
Total benefits and expenses | 542.2 | 434 | 454.5 | 431.4 | 321.7 | 438.9 | 449.1 | 459.8 | 885.9 | 908.9 | 1,319.90 | 1,347.80 | 1,862.10 | 1,669.50 | 1,934.70 |
Income (loss) from continuing operations before income taxes | -19.6 | -41.4 | -32.4 | -9.1 | -29.9 | -65 | -73.8 | -94.9 | -93.4 | -104 | -195.2 | 38.1 | -153.5 | ||
Income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Income (loss) from continuing operations | -134.1 | -22.2 | -21.8 | -27.6 | 145.3 | -17.8 | -28.7 | -69.2 | -49.4 | -97.9 | -71.6 | -115.7 | -205.7 | 29.6 | -148.8 |
Income (loss) from discontinued operations, net of income taxes | -2 | -0.3 | -0.6 | -0.6 | -1.2 | 0.3 | -0.2 | -1.8 | -1.2 | -2 | -1.5 | -1.7 | -3.5 | -2.9 | -15.6 |
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 |
Net Income (Loss) Attributable to Noncontrolling Interest | 4.2 | -0.1 | 0 | -0.1 | 1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 |
Net income (loss) attributable to The Phoenix Companies, Inc. | -140.3 | -22.4 | -22.4 | -28.1 | 143.1 | -17.4 | -28.8 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 |
COMPREHENSIVE INCOME (LOSS): | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -14.4 | 51.9 | 23.7 | 12.9 | -39.9 | -9 | 75.6 | -48.9 | 61.2 | -36 | 66.5 | -62.7 | 95.4 | ||
Net pension liability adjustment | 1.7 | 1.7 | 1.7 | 2.6 | 2.6 | 2.6 | 3.4 | 5.2 | 5.1 | 7.8 | -80.2 | 101 | -20.3 | ||
Other comprehensive income (loss) before income taxes | -12.7 | 53.6 | 25.4 | 15.5 | -37.3 | -6.4 | 79 | -43.7 | 66.3 | -28.2 | -13.7 | 38.3 | 75.1 | ||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | -5.5 | 33.4 | 32.7 | -0.2 | -24.2 | 7.8 | 66.1 | -16.4 | 60.6 | -16.6 | 35.7 | -20.5 | 92 | ||
Net pension liability adjustment | 0 | 0 | 0 | ||||||||||||
Total income tax expense (benefit) | -5.5 | 33.4 | 32.7 | -0.2 | -24.2 | 7.8 | 66.1 | -16.4 | 60.6 | -16.6 | 35.7 | -20.5 | 92 | ||
Other comprehensive income (loss), net of income taxes | -7.2 | 20.2 | -7.3 | 15.7 | -13.1 | -14.2 | 12.9 | -27.3 | 5.7 | -11.6 | -49.4 | 58.8 | -16.9 | ||
Comprehensive income (loss) | -29.7 | -2.2 | -35.5 | -1.8 | -42 | -85.2 | -37.7 | -127.2 | -67.4 | -129 | -258.6 | 85.5 | -181.3 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | -0.1 | 0 | -0.1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 | ||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -29.6 | -2.2 | -35.4 | -1.7 | -41.9 | -85.1 | -37.6 | -127 | -67.2 | -128.7 | -262.6 | 84.8 | -181.9 | ||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | ($3.85) | ($3.80) | ($4.79) | ($3.08) | ($4.99) | ($12.10) | ($8.58) | ($17.01) | ($12.42) | ($20.09) | ($36.48) | $5.04 | ($25.90) | ||
Gain (loss) from continuing operations – diluted (USD per share) | ($3.85) | ($3.80) | ($4.79) | ($3.08) | ($4.99) | ($12.10) | ($8.58) | ($17.01) | ($12.42) | ($20.09) | ($36.48) | $5.01 | ($25.90) | ||
Loss from discontinued operations – basic (USD per share) | ($0.05) | ($0.10) | ($0.10) | $0.05 | ($0.03) | ($0.31) | ($0.21) | ($0.35) | ($0.26) | ($0.30) | ($0.61) | ($0.51) | ($2.70) | ||
Loss from discontinued operations – diluted (USD per share) | ($0.05) | ($0.10) | ($0.10) | $0.05 | ($0.03) | ($0.31) | ($0.21) | ($0.35) | ($0.26) | ($0.30) | ($0.61) | ($0.50) | ($2.70) | ||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.92 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.53 | ($28.60) |
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.84 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.51 | ($28.60) |
Basic weighted-average common shares outstanding (shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,735 | 5,770 | ||
Diluted weighted-average common shares outstanding (in shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,764 | 5,770 | ||
As reported | |||||||||||||||
REVENUES: | |||||||||||||||
Premiums | 78.1 | 83.2 | 79.6 | 84.5 | 87.4 | 82.7 | 162.8 | 170.1 | 240.9 | 254.6 | 351.6 | 402.3 | |||
Fee income | 135.2 | 134.2 | 134.8 | 140.4 | 132.6 | 136.3 | 269 | 268.9 | 404.2 | 409.3 | 551.2 | 556.2 | |||
Net investment income | 204.9 | 195.3 | 213.5 | 199.3 | 194 | 191.1 | 408.8 | 385.1 | 613.7 | 584.4 | 787.2 | 829.3 | |||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | -3.7 | -1 | 0 | -1.7 | 0 | -0.9 | -1 | -0.9 | -4.7 | -2.6 | -7.5 | -51.7 | |||
Portion of losses recognized in OCI | -0.2 | 0 | -0.2 | -0.4 | -2.5 | -1.7 | -0.2 | -4.2 | -0.4 | -4.6 | -4.8 | 22.9 | |||
Net OTTI losses recognized in earnings | -3.9 | -1 | -0.2 | -2.1 | -2.5 | -2.6 | -1.2 | -5.1 | -5.1 | -7.2 | -12.3 | -28.8 | |||
Net realized investment gains (losses), excluding OTTI losses | 1.8 | 5.1 | -25.5 | 10.1 | 9.7 | -13.3 | -20.4 | -3.6 | -18.6 | 6.5 | 33.6 | 18.3 | |||
Net realized investment gains (losses) | -2.1 | 4.1 | -25.7 | 8 | 7.2 | -15.9 | -21.6 | -8.7 | -23.7 | -0.7 | 21.3 | -10.5 | |||
Gain on debt repurchase | 0 | 11.9 | |||||||||||||
Total revenues | 416.1 | 416.8 | 402.2 | 432.2 | 421.2 | 394.2 | 819 | 815.4 | 1,235.10 | 1,247.60 | 1,711.30 | 1,789.20 | |||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | 265.4 | 298.5 | 236 | 261.1 | 272.8 | 318.8 | 534.5 | 591.6 | 799.9 | 852.7 | 1,026.50 | 1,166.10 | |||
Policyholder dividends | 56.7 | 42.4 | 73.8 | 66.2 | 51.3 | 4.4 | 116.2 | 55.7 | 172.9 | 121.9 | 189.7 | 294.8 | |||
Policy acquisition cost amortization | 24.9 | 17.4 | 22.4 | 33.1 | 32.2 | 45.3 | 39.8 | 77.5 | 64.7 | 110.6 | 113.7 | 200 | |||
Interest expense on indebtedness | 7 | 7.1 | 7.1 | 7.1 | 7.1 | 7.7 | 14.2 | 14.8 | 21.2 | 21.9 | 28.9 | 30.8 | |||
Other operating expenses | 78.8 | 85.5 | 97.9 | 77.7 | 91.8 | 80.8 | 183.4 | 172.6 | 262.2 | 250.3 | 335.6 | 253.5 | |||
Total benefits and expenses | 432.8 | 450.9 | 437.2 | 445.2 | 455.2 | 457 | 888.1 | 912.2 | 1,320.90 | 1,357.40 | 1,694.40 | 1,945.20 | |||
Income (loss) from continuing operations before income taxes | -16.7 | -34.1 | -35 | -13 | -34 | -62.8 | -69.1 | -96.8 | -85.8 | -109.8 | 16.9 | -156 | |||
Income tax expense (benefit) | 1.3 | -20.4 | -3.6 | 9.2 | -1.3 | 4.2 | -24 | 2.9 | -22.7 | 12.1 | 9.6 | -3.7 | |||
Income (loss) from continuing operations | -18 | -13.7 | -31.4 | -22.2 | -32.7 | -67 | -45.1 | -99.7 | -63.1 | -121.9 | 7.3 | -152.3 | |||
Income (loss) from discontinued operations, net of income taxes | -0.3 | -0.6 | -0.9 | 0.3 | -0.2 | -1.8 | -1.5 | -2 | -1.8 | -1.7 | -2.6 | -15.6 | |||
Net income (loss) | -18.3 | -14.3 | -32.3 | -21.9 | -32.9 | -68.8 | -46.6 | -101.7 | -64.9 | -123.6 | 4.7 | -167.9 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | -0.1 | 0 | 1 | -0.1 | -0.1 | -0.1 | 1 | -0.2 | 0.9 | -0.3 | -0.4 | 0.6 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. | -18.2 | -14.3 | -33.3 | -21.8 | -32.8 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | |||
COMPREHENSIVE INCOME (LOSS): | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -13.7 | 52.8 | 16.9 | 12.6 | -40.4 | -7.5 | 69.7 | -47.9 | 56 | -35.3 | -55.8 | 93.7 | |||
Net pension liability adjustment | 1.7 | 1.8 | 1.6 | 2.6 | 2.6 | 3.8 | 3.4 | 6.4 | 5.1 | 9 | 99.3 | -21.4 | |||
Other comprehensive income (loss) before income taxes | -12 | 54.6 | 18.5 | 15.2 | -37.8 | -3.7 | 73.1 | -41.5 | 61.1 | -26.3 | 43.5 | 72.3 | |||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | -6.3 | 36.4 | 28.7 | -0.2 | -24.3 | 7.8 | 65.1 | -16.5 | 58.8 | -16.7 | -20.6 | 90.9 | |||
Net pension liability adjustment | 0 | 0 | 0 | ||||||||||||
Total income tax expense (benefit) | -6.3 | 36.4 | 28.7 | -0.2 | -24.3 | 7.8 | 65.1 | -16.5 | 58.8 | -16.7 | -20.6 | 90.9 | |||
Other comprehensive income (loss), net of income taxes | -5.7 | 18.2 | -10.2 | 15.4 | -13.5 | -11.5 | 8 | -25 | 2.3 | -9.6 | 64.1 | -18.6 | |||
Comprehensive income (loss) | -24 | 3.9 | -42.5 | -6.5 | -46.4 | -80.3 | -38.6 | -126.7 | -62.6 | -133.2 | 68.8 | -186.5 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interests | -0.1 | 0 | 1 | -0.1 | -0.1 | -0.1 | 1 | -0.2 | 0.9 | -0.3 | -0.4 | 0.6 | |||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -23.9 | 3.9 | -43.5 | -6.4 | -46.3 | -80.2 | -39.6 | -126.5 | -63.5 | -132.9 | 69.2 | -187.1 | |||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | ($3.13) | ($2.38) | ($5.47) | ($3.87) | ($5.69) | ($11.72) | ($7.85) | ($17.36) | ($10.98) | ($21.23) | $1.27 | ($26.40) | |||
Gain (loss) from continuing operations – diluted (USD per share) | ($3.13) | ($2.38) | ($5.47) | ($3.87) | ($5.69) | ($11.72) | ($7.85) | ($17.36) | ($10.98) | ($21.23) | $1.27 | ($26.40) | |||
Loss from discontinued operations – basic (USD per share) | ($0.05) | ($0.10) | ($0.16) | $0.05 | ($0.03) | ($0.31) | ($0.26) | ($0.35) | ($0.31) | ($0.30) | ($0.45) | ($2.70) | |||
Loss from discontinued operations – diluted (USD per share) | ($0.05) | ($0.10) | ($0.16) | $0.05 | ($0.03) | ($0.31) | ($0.26) | ($0.35) | ($0.31) | ($0.30) | ($0.45) | ($2.70) | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($3.17) | ($2.49) | ($5.80) | ($3.80) | ($5.71) | ($12.02) | ($8.29) | ($17.68) | ($11.45) | ($21.47) | $0.89 | ($29.20) | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($3.17) | ($2.49) | ($5.80) | ($3.80) | ($5.71) | ($12.02) | ($8.29) | ($17.68) | ($11.45) | ($21.47) | $0.88 | ($29.20) | |||
Basic weighted-average common shares outstanding (shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,735 | 5,770 | |||
Diluted weighted-average common shares outstanding (in shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,764 | 5,770 | |||
Correction of errors | |||||||||||||||
Net realized investment gains (losses): | |||||||||||||||
Gain on debt repurchase | 0 | 0 | |||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy acquisition cost amortization | 2.2 | 4.3 | 3.9 | -0.8 | 8.4 | -5.3 | -10.6 | -3.9 | |||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | |||||||
UL unlock | Correction of errors | |||||||||||||||
REVENUES: | |||||||||||||||
Premiums | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Fee income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.9 | 0 | |||
Net investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Portion of losses recognized in OCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net OTTI losses recognized in earnings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net realized investment gains (losses), excluding OTTI losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Net realized investment gains (losses) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Gain on debt repurchase | 0 | 0 | |||||||||||||
Total revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.9 | 0 | |||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | -0.7 | -1.1 | -0.7 | 0 | 0 | 0 | -1.8 | 0 | -2.5 | 0 | -12.3 | 0 | |||
Policyholder dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Policy acquisition cost amortization | 0.3 | -0.2 | 0 | 0 | 0 | 0 | -0.2 | 0 | 0.1 | 0 | -7.7 | 0 | |||
Interest expense on indebtedness | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other operating expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.1 | 0 | |||
Total benefits and expenses | -0.4 | -1.3 | -0.7 | 0 | 0 | 0 | -2 | 0 | -2.4 | 0 | -20.1 | 0 | |||
Income (loss) from continuing operations before income taxes | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Income (loss) from continuing operations | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income (loss) | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
COMPREHENSIVE INCOME (LOSS): | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -0.5 | 0.1 | 0.8 | 0 | 0 | 0 | 0.9 | 0 | 0.4 | 0 | 0.3 | 0 | |||
Net pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other comprehensive income (loss) before income taxes | -0.5 | 0.1 | 0.8 | 0 | 0 | 0 | 0.9 | 0 | 0.4 | 0 | 0.3 | 0 | |||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net pension liability adjustment | 0 | 0 | |||||||||||||
Total income tax expense (benefit) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other comprehensive income (loss), net of income taxes | -0.5 | 0.1 | 0.8 | 0 | 0 | 0 | 0.9 | 0 | 0.4 | 0 | 0.3 | 0 | |||
Comprehensive income (loss) | -0.1 | 1.4 | 1.5 | 0 | 0 | 0 | 2.9 | 0 | 2.8 | 0 | 19.5 | 0 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -0.1 | 1.4 | 1.5 | 0 | 0 | 0 | 2.9 | 0 | 2.8 | 0 | 19.5 | 0 | |||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.35 | $0 | |||
Gain (loss) from continuing operations – diluted (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.33 | $0 | |||
Loss from discontinued operations – basic (USD per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||
Loss from discontinued operations – diluted (USD per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.35 | $0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.33 | $0 | |||
Other adjustments | Correction of errors | |||||||||||||||
REVENUES: | |||||||||||||||
Premiums | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Fee income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.2 | |||
Net investment income | 0 | -3.8 | -2 | 0 | -0.1 | -0.7 | -5.8 | -0.8 | -5.8 | -0.8 | 2.5 | -1.5 | |||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | 0 | 0 | 0 | 0.2 | -0.4 | 0.4 | 0 | 0 | 0 | 0.2 | 0.5 | 0.9 | |||
Portion of losses recognized in OCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net OTTI losses recognized in earnings | 0 | 0 | 0 | 0.2 | -0.4 | 0.4 | 0 | 0 | 0 | 0.2 | 0.5 | 0.9 | |||
Net realized investment gains (losses), excluding OTTI losses | -1.7 | 0.1 | -1.2 | -2.6 | -1.5 | 0.9 | -1.1 | -0.6 | -2.8 | -3.2 | -5.8 | -7.2 | |||
Net realized investment gains (losses) | -1.7 | 0.1 | -1.2 | -2.4 | -1.9 | 1.3 | -1.1 | -0.6 | -2.8 | -3 | -5.3 | -6.3 | |||
Gain on debt repurchase | 0 | 0 | |||||||||||||
Total revenues | -1.7 | -3.7 | -3.2 | -2.4 | -2 | 0.6 | -6.9 | -1.4 | -8.6 | -3.8 | -2.8 | -8 | |||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | -1.1 | 3.9 | -5 | -1.5 | -0.6 | -48.2 | -1.1 | -48.8 | -2.2 | -50.3 | -49.1 | -3.7 | |||
Policyholder dividends | 0.3 | 0.2 | -1.6 | 0.1 | 0.1 | 44.9 | -1.4 | 45 | -1.1 | 45.1 | 46.2 | -2.7 | |||
Policy acquisition cost amortization | 4.2 | 1.9 | 2.2 | -4.5 | -5.1 | 4.3 | 4.1 | -0.8 | 8.3 | -5.3 | -2.9 | -3.9 | |||
Interest expense on indebtedness | 0 | 0 | 0 | 0 | 0 | -0.6 | 0 | -0.6 | 0 | -0.6 | -0.6 | 0 | |||
Other operating expenses | -1.8 | -1.1 | -0.7 | -0.4 | -0.5 | 2.4 | -1.8 | 1.9 | -3.6 | 1.5 | 1.6 | -0.2 | |||
Total benefits and expenses | 1.6 | 4.9 | -5.1 | -6.3 | -6.1 | 2.8 | -0.2 | -3.3 | 1.4 | -9.6 | -4.8 | -10.5 | |||
Income (loss) from continuing operations before income taxes | -3.3 | -8.6 | 1.9 | 3.9 | 4.1 | -2.2 | -6.7 | 1.9 | -10 | 5.8 | 2 | 2.5 | |||
Income tax expense (benefit) | 1.3 | 0.8 | -1.2 | -0.5 | 0.1 | 0 | -0.4 | 0.1 | 0.9 | -0.4 | -1.1 | -1 | |||
Income (loss) from continuing operations | -4.6 | -9.4 | 3.1 | 4.4 | 4 | -2.2 | -6.3 | 1.8 | -10.9 | 6.2 | 3.1 | 3.5 | |||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0.3 | 0 | 0 | 0 | 0.3 | 0 | 0.3 | 0 | -0.3 | 0 | |||
Net income (loss) | -4.6 | -9.4 | 3.4 | 4.4 | 4 | -2.2 | -6 | 1.8 | -10.6 | 6.2 | 2.8 | 3.5 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | -1.1 | 0 | 0 | 0 | -1.1 | 0 | -1.1 | 0 | 1.1 | 0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. | -4.6 | -9.4 | 4.5 | 4.4 | 4 | -2.2 | -4.9 | 1.8 | -9.5 | 6.2 | 1.7 | 3.5 | |||
COMPREHENSIVE INCOME (LOSS): | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -0.2 | -1 | 6 | 0.3 | 0.5 | -1.5 | 5 | -1 | 4.8 | -0.7 | -7.2 | 1.7 | |||
Net pension liability adjustment | 0 | -0.1 | 0.1 | 0 | 0 | -1.2 | 0 | -1.2 | 0 | -1.2 | 1.7 | 1.1 | |||
Other comprehensive income (loss) before income taxes | -0.2 | -1.1 | 6.1 | 0.3 | 0.5 | -2.7 | 5 | -2.2 | 4.8 | -1.9 | -5.5 | 2.8 | |||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | 0.8 | -3 | 4 | 0 | 0.1 | 0 | 1 | 0.1 | 1.8 | 0.1 | 0.1 | 1.1 | |||
Net pension liability adjustment | 0 | 0 | 0 | ||||||||||||
Total income tax expense (benefit) | 0.8 | -3 | 4 | 0 | 0.1 | 0 | 1 | 0.1 | 1.8 | 0.1 | 0.1 | 1.1 | |||
Other comprehensive income (loss), net of income taxes | -1 | 1.9 | 2.1 | 0.3 | 0.4 | -2.7 | 4 | -2.3 | 3 | -2 | -5.6 | 1.7 | |||
Comprehensive income (loss) | -5.6 | -7.5 | 5.5 | 4.7 | 4.4 | -4.9 | -2 | -0.5 | -7.6 | 4.2 | -2.8 | 5.2 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | -1.1 | 0 | 0 | 0 | -1.1 | 0 | -1.1 | 0 | 1.1 | 0 | |||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -5.6 | -7.5 | 6.6 | 4.7 | 4.4 | -4.9 | -0.9 | -0.5 | -6.5 | 4.2 | -3.9 | 5.2 | |||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | ($0.80) | ($1.64) | $0.73 | $0.77 | $0.70 | ($0.38) | ($0.90) | $0.31 | ($1.70) | $1.08 | $0.35 | $0.61 | |||
Gain (loss) from continuing operations – diluted (USD per share) | ($0.80) | ($1.64) | $0.73 | $0.77 | $0.70 | ($0.38) | ($0.90) | $0.31 | ($1.70) | $1.08 | $0.34 | $0.61 | |||
Loss from discontinued operations – basic (USD per share) | $0 | $0 | $0.05 | $0 | $0 | $0 | $0.05 | $0 | $0.05 | $0 | ($0.05) | $0 | |||
Loss from discontinued operations – diluted (USD per share) | $0 | $0 | $0.05 | $0 | $0 | $0 | $0.05 | $0 | $0.05 | $0 | ($0.05) | $0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($0.80) | ($1.64) | $0.78 | $0.77 | $0.70 | ($0.38) | ($0.85) | $0.31 | ($1.65) | $1.08 | $0.30 | $0.61 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($0.80) | ($1.64) | $0.78 | $0.77 | $0.70 | ($0.38) | ($0.85) | $0.31 | ($1.65) | $1.08 | $0.29 | $0.61 | |||
Other Restatement Adjustment, Survivorship Policies | Correction of errors | |||||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | $43.30 |
Restatement_and_Revision_of_Pr5
Restatement and Revision of Previously Reported Financial Information - Cash Flow (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||||||||
Net income (loss) | ($28.10) | ($70.90) | ($50.50) | ($99.70) | ($72.90) | ($117.10) | ($213.20) | $26 | ($165) |
Net realized investment gains / losses | 26.9 | 14.6 | 22.7 | 9.3 | 26.5 | -0.8 | 40.5 | -20.4 | 23.7 |
Policy acquisition costs deferred | -14.6 | -15.1 | -33.2 | -29.3 | -54.9 | -43.5 | -72.9 | -58.4 | -58.1 |
Policy acquisition cost amortization | 24.6 | 49.6 | 43.7 | 76.7 | 73.1 | 105.3 | 119.6 | 103.1 | 196.1 |
Amortization and depreciation | 1.5 | 2.2 | 3 | 4.3 | 4.5 | 6.3 | 6 | 8.2 | 12 |
Interest credited | 35.6 | 30.5 | 70.2 | 63.7 | 113.4 | 99.8 | 151.5 | 139 | 123.2 |
Equity in earnings of limited partnerships and other investments | -20.1 | -8.6 | -26.1 | -21.3 | -44.4 | -35.3 | -59.7 | -58.9 | -59.8 |
Gain on debt repurchase | 0 | 0 | -11.9 | ||||||
Change in: | |||||||||
Accrued investment income | -44 | -45.8 | -79 | -70.1 | -131.9 | -102.8 | -109.2 | -86 | -122.8 |
Deferred income taxes, net | -8.3 | 0 | -25.6 | 0 | -22.5 | 0 | 0 | 0 | -20.5 |
Reinsurance recoverable | -12.9 | -2.5 | 5.8 | 13.8 | 26.2 | 0.7 | 39.1 | -8.4 | -22.7 |
Policy liabilities and accruals | -142.6 | -172 | -237.5 | -249.1 | -367.3 | -355.5 | -430.9 | -591.8 | -425.4 |
Dividend obligations | 30.2 | 5.5 | 29.5 | 11.5 | 46.5 | 35.7 | 72.4 | 57.1 | 77.3 |
Pension and post-employment liabilities | -4.9 | -0.8 | -10 | -4.4 | -15.3 | -13.1 | -13.3 | -14.1 | -20.8 |
Impact of operating activities of consolidated investment entities, net | -6.7 | 1.4 | -8.8 | -2 | -9.7 | -3.6 | -33.8 | -2.1 | -11.8 |
Other operating activities, net | 23.1 | 25.3 | 14.6 | 36.2 | 2.2 | 46.2 | 3.4 | 60.1 | -34.3 |
Cash provided by (used for) operating activities | -140.3 | -186.6 | -281.2 | -260.4 | -426.5 | -377.7 | -500.5 | -446.6 | -520.8 |
Purchases of: | |||||||||
Purchases of available-for-sale debt securities | -338.4 | -384.1 | -871.4 | -976.6 | -1,754.20 | -1,653.20 | -2,272.60 | -2,460.70 | -1,796.90 |
Payments to Acquire Available-for-sale Securities, Equity | -1.8 | -10 | -2.7 | -18.5 | -52.1 | -24.9 | -53.6 | -59.6 | -10.9 |
Short-term investments | -649.3 | -699.5 | -1,058.90 | -849.4 | -1,584.60 | -1,089.10 | -1,794.40 | -1,559.70 | -1,814 |
Derivative instruments | -17.8 | -44.8 | -33 | -59.8 | -51.3 | -72.4 | -62.7 | -101.9 | -50.8 |
Fair value investments | -0.3 | -14.9 | -0.6 | -20 | -0.7 | -26.7 | -2.7 | -27 | -38.7 |
Sales, repayments and maturities of: | |||||||||
Available-for-sale debt securities | 338.7 | 428.4 | 662.7 | 912.5 | 1,187.70 | 1,519.60 | 1,651.90 | 2,130.70 | 1,871 |
Available-for-sale equity securities | 3.1 | 1.1 | 4.4 | 2.8 | 16.9 | 8.3 | 21.4 | 13.4 | 22.4 |
Short-term investments | 489.8 | 699.7 | 915.6 | 949.6 | 1,856.10 | 1,334.50 | 2,005.90 | 1,909.20 | 1,382.70 |
Derivative instruments | 42.1 | 12.5 | 53.6 | 22.4 | 73.5 | 34 | 96.2 | 49.5 | 26.7 |
Fair value and other investments | 2.8 | 4.6 | 14.1 | 11.7 | 16.7 | 18.2 | 23.8 | 26.6 | 49.3 |
Contributions to limited partnerships and limited liability corporations | -18.2 | -9.8 | -34 | -27.7 | -58 | -51.8 | -84.2 | -72.4 | -101.8 |
Distributions from limited partnerships and limited liability corporations | 30.3 | 33.6 | 64 | 58.8 | 104.5 | 78.9 | 157.1 | 146.8 | 138.4 |
Policy loans, net | 32 | 49.5 | 78 | 57.3 | 91 | 86.8 | 78 | 80.8 | 126.5 |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other investing activities, net | -2 | -0.8 | -4.4 | -4.2 | -7.7 | -6.9 | -8.9 | -10.4 | -7.7 |
Cash provided by (used for) investing activities | -89 | 65.5 | -212.6 | 58.9 | -162.2 | 155.3 | -244.8 | 65.3 | -203.8 |
FINANCING ACTIVITIES: | |||||||||
Policyholder deposits | 361.3 | 362.9 | 713 | 708.9 | 1,099.60 | 1,025.10 | 1,457.20 | 1,355 | 1,597.40 |
Policyholder withdrawals | -321.5 | -282.7 | -611.9 | -578.1 | -893.6 | -857.4 | -1,200.60 | -1,140.40 | -1,138.80 |
Net transfers (to) from separate accounts | 118.2 | 89.5 | 227.7 | 193 | 330.6 | 299.3 | 439.4 | 412.9 | 379.8 |
Impact of financing activities of consolidated investment entities, net | 0.1 | 0.6 | 0.2 | 1.1 | 0.1 | 2.3 | 4.1 | 4.5 | 1.3 |
Other financing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39.6 |
Cash provided by (used for) financing activities | 158.1 | 170.3 | 329 | 324.9 | 536.7 | 469.3 | 700.1 | 632 | 800.1 |
Change in cash and cash equivalents | -71.2 | 49.2 | -164.8 | 123.4 | -52 | 246.9 | -45.2 | 250.7 | 75.5 |
Change in cash included in discontinued operations assets | -0.7 | -0.4 | -1.4 | -0.5 | -1.2 | -0.5 | -1.2 | -0.7 | 2.7 |
Cash and cash equivalents, beginning of period | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 168.2 |
Cash and cash equivalents, end of period | 424.5 | 295.2 | 330.2 | 369.3 | 443.2 | 492.8 | 450 | 496.4 | 246.4 |
Supplemental Disclosure of Cash Flow Information | |||||||||
Income taxes (paid) refunded | 0 | -0.1 | 0 | -8.7 | 0 | -8.5 | -0.2 | -5.4 | -18.4 |
Interest expense on indebtedness paid | -4.7 | -4.7 | -13.9 | -13.9 | -18.6 | -18.6 | -27.9 | -27.9 | -30.4 |
Non-Cash Transactions During the Period | |||||||||
Investment exchanges | 13 | 37.7 | 62.4 | 74.4 | 62.4 | 85.7 | 93.3 | 98.8 | 96 |
Policy benefits | 230.3 | 270.6 | 531.6 | 542.8 | 795.2 | 802.4 | 1,119.20 | 965.1 | 1,162.40 |
As reported | |||||||||
OPERATING ACTIVITIES: | |||||||||
Net income (loss) | -33.3 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | |
Net realized investment gains / losses | 25.7 | 15.9 | 21.6 | 8.7 | 23.7 | -3.8 | -25.7 | 17.4 | |
Policy acquisition costs deferred | -14.4 | -14.9 | -31.7 | -28.9 | -52.3 | -42.8 | -57.5 | -58.1 | |
Policy acquisition cost amortization | 22.4 | 45.3 | 39.8 | 77.5 | 64.7 | 110.6 | 113.7 | 200 | |
Amortization and depreciation | 1.5 | 2.2 | 3 | 4.3 | 4.5 | 6.3 | 8.2 | 12 | |
Interest credited | 35.6 | 30.5 | 70.2 | 63.7 | 113.4 | 99.8 | 139 | 123.2 | |
Equity in earnings of limited partnerships and other investments | -23.8 | -8.7 | -29.8 | -21.4 | -48.1 | -35.4 | -55.3 | -60.8 | |
Gain on debt repurchase | 0 | -11.9 | |||||||
Change in: | |||||||||
Accrued investment income | -43.3 | -45.8 | -81.1 | -70.1 | -134 | -102.8 | -86.5 | -123.2 | |
Deferred income taxes, net | -6.1 | 0 | -24.6 | 0 | -20.6 | 0 | 0.3 | -19.8 | |
Reinsurance recoverable | -12.2 | -11 | 8.6 | 5.8 | 28.7 | -6.7 | -21.2 | -19.2 | |
Policy liabilities and accruals | -137.6 | -116.8 | -237.4 | -193.8 | -365.1 | -299.3 | -520 | -426.9 | |
Dividend obligations | 31.8 | -39.4 | 30.9 | -33.5 | 47.5 | -9.4 | 10.8 | 82.9 | |
Pension and post-employment liabilities | -4.9 | -0.8 | -10 | -4.4 | -15.3 | -13.1 | -14.1 | -20.8 | |
Impact of operating activities of consolidated investment entities, net | -5.6 | 1.4 | -7.7 | -2 | -8.6 | -3.6 | -3.2 | -11.8 | |
Other operating activities, net | 23.9 | 24.2 | 14.6 | 35.2 | 4.2 | 45.8 | 59.8 | -35.3 | |
Cash provided by (used for) operating activities | -140.3 | -186.6 | -281.2 | -260.4 | -423.1 | -377.7 | -446.6 | -520.8 | |
Purchases of: | |||||||||
Purchases of available-for-sale debt securities | -338.5 | -394.1 | -871.9 | -992.7 | -1,798.40 | -1,673.60 | -2,501.10 | -1,796.90 | |
Payments to Acquire Available-for-sale Securities, Equity | -1.7 | 0 | -2.2 | -2.4 | -7.9 | -4.5 | -19.2 | -10.9 | |
Short-term investments | -649.3 | -699.5 | -1,058.90 | -849.4 | -1,584.60 | -1,089.10 | -1,559.70 | -1,814 | |
Derivative instruments | -17.8 | -44.8 | -33 | -59.8 | -51.3 | -72.4 | -101.9 | -50.8 | |
Fair value investments | -0.3 | -14.9 | -0.6 | -20 | -0.7 | -26.7 | -27 | -38.7 | |
Sales, repayments and maturities of: | |||||||||
Available-for-sale debt securities | 338.8 | 428.4 | 662.8 | 912.6 | 1,194.50 | 1,524.10 | 2,137.20 | 1,880.90 | |
Available-for-sale equity securities | 3 | 1.1 | 4.3 | 2.7 | 10.1 | 3.8 | 6.9 | 12.5 | |
Short-term investments | 489.8 | 699.7 | 915.6 | 949.6 | 1,856.10 | 1,334.50 | 1,909.20 | 1,382.70 | |
Derivative instruments | 42.1 | 12.5 | 53.6 | 22.4 | 73.5 | 34 | 49.5 | 26.7 | |
Fair value and other investments | 2.8 | 4.6 | 14.1 | 11.7 | 16.7 | 18.2 | 26.6 | 49.3 | |
Contributions to limited partnerships and limited liability corporations | -18.2 | -9.8 | -34 | -27.7 | -58 | -51.8 | -72.4 | -101.8 | |
Distributions from limited partnerships and limited liability corporations | 30.3 | 33.6 | 64 | 58.8 | 104.5 | 78.9 | 146.8 | 138.4 | |
Policy loans, net | 32 | 49.5 | 78 | 57.3 | 91 | 86.8 | 80.8 | 126.5 | |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other investing activities, net | -2 | -0.8 | -4.4 | -4.2 | -7.7 | -6.9 | -10.4 | -7.7 | |
Cash provided by (used for) investing activities | -89 | 65.5 | -212.6 | 58.9 | -162.2 | 155.3 | 65.3 | -203.8 | |
FINANCING ACTIVITIES: | |||||||||
Policyholder deposits | 361.3 | 362.9 | 713 | 708.9 | 1,080.90 | 1,025.10 | 1,355 | 1,597.40 | |
Policyholder withdrawals | -321.5 | -282.7 | -611.9 | -578.1 | -878.3 | -857.4 | -1,140.40 | -1,138.80 | |
Net transfers (to) from separate accounts | 118.2 | 89.5 | 227.7 | 193 | 330.6 | 299.3 | 412.9 | 379.8 | |
Impact of financing activities of consolidated investment entities, net | 0.1 | 0.6 | 0.2 | 1.1 | 0.1 | 2.3 | 4.5 | 1.3 | |
Other financing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39.6 | |
Cash provided by (used for) financing activities | 158.1 | 170.3 | 329 | 324.9 | 533.3 | 469.3 | 632 | 800.1 | |
Change in cash and cash equivalents | -71.2 | 49.2 | -164.8 | 123.4 | -52 | 246.9 | 250.7 | 75.5 | |
Change in cash included in discontinued operations assets | -0.7 | -0.4 | -1.4 | -0.5 | -1.2 | -0.5 | -0.7 | 2.7 | |
Cash and cash equivalents, beginning of period | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 168.2 |
Cash and cash equivalents, end of period | 424.5 | 295.2 | 330.2 | 369.3 | 443.2 | 492.8 | 496.4 | 246.4 | |
Supplemental Disclosure of Cash Flow Information | |||||||||
Income taxes (paid) refunded | 0 | -0.1 | 0 | -8.7 | 0 | -8.5 | -5.4 | -18.4 | |
Interest expense on indebtedness paid | -4.7 | -4.7 | -13.9 | -13.9 | -18.6 | -18.6 | -27.9 | -30.4 | |
Non-Cash Transactions During the Period | |||||||||
Investment exchanges | 13 | 37.7 | 62.4 | 74.4 | 62.4 | 85.7 | 98.8 | 96 | |
Policy benefits | 236 | 318.8 | 534.5 | 591.6 | 799.9 | 852.7 | 1,026.50 | 1,166.10 | |
Correction of errors | |||||||||
OPERATING ACTIVITIES: | |||||||||
Net income (loss) | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | |
Net realized investment gains / losses | 1.2 | -1.3 | 1.1 | 0.6 | 2.8 | 3 | 5.3 | 6.3 | |
Policy acquisition costs deferred | -0.2 | -0.2 | -1.5 | -0.4 | -2.6 | -0.7 | -0.9 | 0 | |
Policy acquisition cost amortization | 2.2 | 4.3 | 3.9 | -0.8 | 8.4 | -5.3 | -10.6 | -3.9 | |
Amortization and depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Equity in earnings of limited partnerships and other investments | 3.7 | 0.1 | 3.7 | 0.1 | 3.7 | 0.1 | -3.6 | 1 | |
Gain on debt repurchase | 0 | 0 | |||||||
Change in: | |||||||||
Accrued investment income | -0.7 | 0 | 2.1 | 0 | 2.1 | 0 | 0.5 | 0.4 | |
Deferred income taxes, net | -2.2 | 0 | -1 | 0 | -1.9 | 0 | -0.3 | -0.7 | |
Reinsurance recoverable | -0.7 | 8.5 | -2.8 | 8 | -2.5 | 7.4 | 12.8 | -3.5 | |
Policy liabilities and accruals | -5 | -55.2 | -0.1 | -55.3 | -2.2 | -56.2 | -71.8 | 1.5 | |
Dividend obligations | -1.6 | 44.9 | -1.4 | 45 | -1 | 45.1 | 46.3 | -5.6 | |
Pension and post-employment liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Impact of operating activities of consolidated investment entities, net | -1.1 | 0 | -1.1 | 0 | -1.1 | 0 | 1.1 | 0 | |
Other operating activities, net | -0.8 | 1.1 | 0 | 1 | -2 | 0.4 | 0.3 | 1 | |
Cash provided by (used for) operating activities | 0 | 0 | 0 | 0 | -3.4 | 0 | 0 | 0 | |
Purchases of: | |||||||||
Purchases of available-for-sale debt securities | 0.1 | 10 | 0.5 | 16.1 | 44.2 | 20.4 | 40.4 | 0 | |
Payments to Acquire Available-for-sale Securities, Equity | -0.1 | -10 | -0.5 | -16.1 | -44.2 | -20.4 | -40.4 | 0 | |
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivative instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Fair value investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Sales, repayments and maturities of: | |||||||||
Available-for-sale debt securities | -0.1 | 0 | -0.1 | -0.1 | -6.8 | -4.5 | -6.5 | -9.9 | |
Available-for-sale equity securities | 0.1 | 0 | 0.1 | 0.1 | 6.8 | 4.5 | 6.5 | 9.9 | |
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivative instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Fair value and other investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Contributions to limited partnerships and limited liability corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Distributions from limited partnerships and limited liability corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Policy loans, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other investing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cash provided by (used for) investing activities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
FINANCING ACTIVITIES: | |||||||||
Policyholder deposits | 0 | 0 | 0 | 0 | 18.7 | 0 | 0 | 0 | |
Policyholder withdrawals | 0 | 0 | 0 | 0 | -15.3 | 0 | 0 | 0 | |
Net transfers (to) from separate accounts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Impact of financing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other financing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cash provided by (used for) financing activities | 0 | 0 | 0 | 0 | 3.4 | 0 | 0 | 0 | |
Change in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Change in cash included in discontinued operations assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Supplemental Disclosure of Cash Flow Information | |||||||||
Income taxes (paid) refunded | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Interest expense on indebtedness paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Non-Cash Transactions During the Period | |||||||||
Investment exchanges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other Restatement Adjustment, Survivorship Policies | Correction of errors | |||||||||
Non-Cash Transactions During the Period | |||||||||
Policy benefits | $43.30 |
Restatement_and_Revision_of_Pr6
Restatement and Revision of Previously Reported Financial Information - Shareholders' Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Balance, beginning of period | $533.70 | $563.30 | $565.90 | $601.30 | $384.60 | $385.10 | $426.60 | $511.40 | $601.30 | $511.40 | $601.30 | $511.40 | $601.30 | $511.40 | $691.40 | |||||||||||
Other comprehensive income (loss) | -7.2 | 20.2 | -7.3 | 15.7 | -13.1 | -14.2 | 12.9 | -27.3 | 5.7 | -11.6 | -49.4 | 58.8 | -16.9 | |||||||||||||
Net income (loss) | -140.3 | -22.4 | -22.4 | -28.1 | 143.1 | -17.4 | -28.8 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 | |||||||||||
Change in stockholders’ equity | -35.4 | -84.8 | -38 | -126.3 | -67.6 | -126.8 | -254.7 | 89.9 | -180 | |||||||||||||||||
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 | |||||||||||
Balance, end of period | 346.6 | 533.7 | 563.3 | 565.9 | 601.3 | 384.6 | 385.1 | 426.6 | 563.3 | 385.1 | 533.7 | 384.6 | 346.6 | 601.3 | 511.4 | |||||||||||
As reported | ||||||||||||||||||||||||||
Balance, beginning of period | 544.8 | 541.3 | 583.7 | 384.7 | 430.6 | 510.5 | 583.7 | 510.5 | 583.7 | 510.5 | 583.7 | 510.5 | 695.7 | |||||||||||||
Other comprehensive income (loss) | -5.7 | 18.2 | -10.2 | 15.4 | -13.5 | -11.5 | 8 | -25 | 2.3 | -9.6 | 64.1 | -18.6 | ||||||||||||||
Net income (loss) | -18.2 | -14.3 | -33.3 | -21.8 | -32.8 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | ||||||||||||||
Change in stockholders’ equity | -42.4 | -79.9 | -38.9 | -125.8 | -62.8 | -131 | 73.2 | -185.2 | ||||||||||||||||||
Net income (loss) | -18.3 | -14.3 | -32.3 | -21.9 | -32.9 | -68.8 | -46.6 | -101.7 | -64.9 | -123.6 | 4.7 | -167.9 | ||||||||||||||
Balance, end of period | 520.9 | 544.8 | 541.3 | 583.7 | 379.5 | 384.7 | 430.6 | 544.8 | 384.7 | 520.9 | 379.5 | 583.7 | 510.5 | |||||||||||||
Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 17.6 | 0.9 | 17.6 | 0.9 | 17.6 | 0.9 | 17.6 | 0.9 | -4.3 | |||||||||||||||||
Net income (loss) | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | ||||||||||||||||||
Change in stockholders’ equity | 7 | -4.9 | 0.9 | -0.5 | -4.8 | 4.2 | 16.7 | 5.2 | ||||||||||||||||||
Balance, end of period | 12.8 | 18.5 | 24.6 | 17.6 | 5.1 | 0.4 | -4 | 18.5 | 0.4 | 12.8 | 5.1 | 17.6 | 0.9 | |||||||||||||
COMMON STOCK: | ||||||||||||||||||||||||||
Balance, beginning of period | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | 1.3 | [1] | ||||||||
Adjustment for reverse stock split | 0 | [1] | 0 | [1] | -1.2 | [1] | ||||||||||||||||||||
Balance, end of period | 0.1 | [1] | 0.1 | 0.1 | 0.1 | 0.1 | [1] | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | ||||||
COMMON STOCK: | As reported | ||||||||||||||||||||||||||
Balance, beginning of period | 0.1 | 0.1 | 0.1 | 0.1 | 1.3 | |||||||||||||||||||||
Adjustment for reverse stock split | 0 | -1.2 | ||||||||||||||||||||||||
Balance, end of period | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
COMMON STOCK: | Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Adjustment for reverse stock split | 0 | 0 | ||||||||||||||||||||||||
Balance, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||||||||||||
Balance, beginning of period | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,630.50 | [1] | ||||||||
Adjustment for reverse stock split | 0 | [1] | 0 | [1] | -1.2 | [1] | ||||||||||||||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | -0.2 | -0.4 | -0.1 | -0.4 | -0.3 | [1] | 0 | [1] | 1.4 | [1] | |||||||||||||||
Balance, end of period | 2,632.80 | [1] | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | [1] | 2,633.10 | 2,633 | 2,632.90 | 2,632.70 | 2,633 | 2,632.70 | 2,633.10 | 2,632.80 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | ||||||
ADDITIONAL PAID-IN CAPITAL: | As reported | ||||||||||||||||||||||||||
Balance, beginning of period | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,630.50 | |||||||||||||||||
Adjustment for reverse stock split | 0 | -1.2 | ||||||||||||||||||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | -0.2 | -0.4 | -0.1 | -0.4 | 0 | 0 | 1.4 | ||||||||||||||||||
Balance, end of period | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633 | 2,632.90 | 2,632.70 | 2,633 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | |||||||||||||
ADDITIONAL PAID-IN CAPITAL: | Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Adjustment for reverse stock split | 0 | 0 | ||||||||||||||||||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Balance, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||||||||||||
Balance, beginning of period | -185 | -243.8 | -185 | -243.8 | -185 | -243.8 | -185 | -243.8 | -226.9 | |||||||||||||||||
Other comprehensive income (loss) | -7.3 | -14.2 | 12.9 | -27.3 | 5.7 | -11.6 | -49.4 | 58.8 | -16.9 | |||||||||||||||||
Balance, end of period | -234.4 | -179.3 | -172.1 | -192.3 | -185 | -255.4 | -271.1 | -258 | -172.1 | -271.1 | -179.3 | -255.4 | -234.4 | -185 | -243.8 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | As reported | ||||||||||||||||||||||||||
Balance, beginning of period | -185.2 | -249.3 | -185.2 | -249.3 | -185.2 | -249.3 | -185.2 | -249.3 | -230.7 | |||||||||||||||||
Other comprehensive income (loss) | -10.2 | -11.5 | 8 | -25 | 2.3 | -9.6 | 64.1 | -18.6 | ||||||||||||||||||
Balance, end of period | -182.9 | -177.2 | -195.4 | -185.2 | -258.9 | -274.3 | -260.8 | -177.2 | -274.3 | -182.9 | -258.9 | -185.2 | -249.3 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 0.2 | 5.5 | 0.2 | 5.5 | 0.2 | 5.5 | 0.2 | 5.5 | 3.8 | |||||||||||||||||
Other comprehensive income (loss) | 2.9 | -2.7 | 4.9 | -2.3 | 3.4 | -2 | -5.3 | 1.7 | ||||||||||||||||||
Balance, end of period | 3.6 | 5.1 | 3.1 | 0.2 | 3.5 | 3.2 | 2.8 | 5.1 | 3.2 | 3.6 | 3.5 | 0.2 | 5.5 | |||||||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||||||||||||
Balance, beginning of period | -1,675.80 | -1,701.80 | -1,675.80 | -1,701.80 | -1,675.80 | -1,701.80 | -1,675.80 | -1,701.80 | -1,536.80 | |||||||||||||||||
Net income (loss) | -28.1 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 | |||||||||||||||||
Balance, end of period | -1,889 | -1,748.70 | -1,726.30 | -1,703.90 | -1,675.80 | -1,818.90 | -1,801.50 | -1,772.70 | -1,726.30 | -1,801.50 | -1,748.70 | -1,818.90 | -1,889 | -1,675.80 | -1,701.80 | |||||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | As reported | ||||||||||||||||||||||||||
Balance, beginning of period | -1,692.10 | -1,697.20 | -1,692.10 | -1,697.20 | -1,692.10 | -1,697.20 | -1,692.10 | -1,697.20 | -1,528.70 | |||||||||||||||||
Net income (loss) | -33.3 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | ||||||||||||||||||
Balance, end of period | -1,757.90 | -1,739.70 | -1,725.40 | -1,692.10 | -1,820.50 | -1,798.70 | -1,765.90 | -1,739.70 | -1,798.70 | -1,757.90 | -1,820.50 | -1,692.10 | -1,697.20 | |||||||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 16.3 | -4.6 | 16.3 | -4.6 | 16.3 | -4.6 | 16.3 | -4.6 | -8.1 | |||||||||||||||||
Net income (loss) | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | ||||||||||||||||||
Balance, end of period | 9.2 | 13.4 | 21.5 | 16.3 | 1.6 | -2.8 | -6.8 | 13.4 | -2.8 | 9.2 | 1.6 | 16.3 | -4.6 | |||||||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||||||||||||
Balance, beginning of period | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | -179.5 | [1] | ||||||||
Treasury shares purchased | 0 | [1] | 0 | [1] | -3.4 | [1] | ||||||||||||||||||||
Balance, end of period | -182.9 | [1] | -182.9 | -182.9 | -182.9 | -182.9 | [1] | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | ||||||
TREASURY STOCK, AT COST: | As reported | ||||||||||||||||||||||||||
Balance, beginning of period | -182.9 | -182.9 | -182.9 | -182.9 | -179.5 | |||||||||||||||||||||
Treasury shares purchased | 0 | -3.4 | ||||||||||||||||||||||||
Balance, end of period | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | |||||||||||||
TREASURY STOCK, AT COST: | Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Treasury shares purchased | 0 | 0 | ||||||||||||||||||||||||
Balance, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO THE PHOENIX COMPANIES, INC.: | ||||||||||||||||||||||||||
Balance, beginning of period | 589.5 | 504.7 | 589.5 | 504.7 | 589.5 | 504.7 | 589.5 | 504.7 | 688.6 | |||||||||||||||||
Change in stockholders’ equity | -35.4 | -85.3 | -38 | -127.1 | -67.6 | -128.7 | -262.9 | 84.8 | -183.9 | |||||||||||||||||
Balance, end of period | 326.6 | 521.9 | 551.5 | 554.1 | 589.5 | 376 | 377.6 | 419.4 | 551.5 | 377.6 | 521.9 | 376 | 326.6 | 589.5 | 504.7 | |||||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO THE PHOENIX COMPANIES, INC.: | As reported | ||||||||||||||||||||||||||
Balance, beginning of period | 573 | 503.8 | 573 | 503.8 | 573 | 503.8 | 573 | 503.8 | 692.9 | |||||||||||||||||
Change in stockholders’ equity | -43.5 | -80.4 | -40 | -126.6 | -63.9 | -132.9 | 69.2 | -189.1 | ||||||||||||||||||
Balance, end of period | 509.1 | 533 | 529.5 | 573 | 370.9 | 377.2 | 423.4 | 533 | 377.2 | 509.1 | 370.9 | 573 | 503.8 | |||||||||||||
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO THE PHOENIX COMPANIES, INC.: | Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 16.5 | 0.9 | 16.5 | 0.9 | 16.5 | 0.9 | 16.5 | 0.9 | -4.3 | |||||||||||||||||
Change in stockholders’ equity | 8.1 | -4.9 | 2 | -0.5 | -3.7 | 4.2 | 15.6 | 5.2 | ||||||||||||||||||
Balance, end of period | 12.8 | 18.5 | 24.6 | 16.5 | 5.1 | 0.4 | -4 | 18.5 | 0.4 | 12.8 | 5.1 | 16.5 | 0.9 | |||||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||||||||||||
Balance, beginning of period | 11.8 | 6.7 | 11.8 | 6.7 | 11.8 | 6.7 | 11.8 | 6.7 | 2.8 | |||||||||||||||||
Net income (loss) | 4 | 0.7 | 0.6 | |||||||||||||||||||||||
Contributions to noncontrolling interests | 4.2 | 4.6 | 4.7 | |||||||||||||||||||||||
Distributions from noncontrolling interests | 0 | -0.2 | -1.4 | |||||||||||||||||||||||
Issuance of Saybrus shares to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||||||
Balance, end of period | 20 | 11.8 | 11.8 | 11.8 | 11.8 | 8.6 | 7.5 | 7.2 | 11.8 | 7.5 | 11.8 | 8.6 | 20 | 11.8 | 6.7 | |||||||||||
NONCONTROLLING INTERESTS: | As reported | ||||||||||||||||||||||||||
Balance, beginning of period | 6.7 | 6.7 | 6.7 | 6.7 | 2.8 | |||||||||||||||||||||
Net income (loss) | -0.4 | 0.6 | ||||||||||||||||||||||||
Contributions to noncontrolling interests | 4.6 | 4.7 | ||||||||||||||||||||||||
Distributions from noncontrolling interests | -0.2 | -1.4 | ||||||||||||||||||||||||
Issuance of Saybrus shares to noncontrolling interests | 0 | 0 | ||||||||||||||||||||||||
Balance, end of period | 11.8 | 11.8 | 11.8 | 10.7 | 8.6 | 7.5 | 7.2 | 11.8 | 7.5 | 11.8 | 8.6 | 10.7 | 6.7 | |||||||||||||
NONCONTROLLING INTERESTS: | Correction of errors | ||||||||||||||||||||||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Net income (loss) | 1.1 | 0 | ||||||||||||||||||||||||
Contributions to noncontrolling interests | 0 | 0 | ||||||||||||||||||||||||
Distributions from noncontrolling interests | 0 | 0 | ||||||||||||||||||||||||
Issuance of Saybrus shares to noncontrolling interests | 0 | 0 | ||||||||||||||||||||||||
Balance, end of period | $0 | $0 | $0 | $1.10 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1.10 | $0 | |||||||||||||
[1] | Reflects the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to our consolidated financial statements for additional information on the reverse stock split. |
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies Schedule of Insurance Contract Assumptions Used (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Term over which short-term deviations from long-term expectations are expected to revert to the long-term assumption | 5 years |
Mortality assumptions, rolling term | 5 years |
Variable Annuity | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Long-term return assumption | 7.90% |
Variable Universal Life | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Long-term return assumption | 8.00% |
Basis_of_Presentation_and_Sign4
Basis of Presentation and Significant Accounting Policies Premises and equipment Narrative (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 39 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 7 years |
Basis_of_Presentation_and_Sign5
Basis of Presentation and Significant Accounting Policies Policy liabilities and accruals Narrative (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Contractual guaranteed interest rate | 2.30% | 6.00% |
Percentage of Participating insurance represent direct individual life insurance | 20.70% | 20.70% |
Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Universal life-type contract interest rate credited | 3.00% | |
Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Universal life-type contract interest rate credited | 4.50% |
Basis_of_Presentation_and_Sign6
Basis of Presentation and Significant Accounting Policies - Holding Company Liquidity (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory Accounting Practices [Line Items] | ||||||||||||||
Liquid assets | $78.30 | $78.30 | $181.50 | |||||||||||
Restricted cash and cash equivalents | 10.8 | 10.8 | ||||||||||||
Cash and investments held in escrow for future tax liabilities | 0 | |||||||||||||
Anticipated dividends paid in next fiscal year | 59.9 | 59.9 | ||||||||||||
Interest paid | 4.7 | 4.7 | 13.9 | 13.9 | 18.6 | 18.6 | 27.9 | 27.9 | 30.4 | |||||
Indebtedness | 378.9 | 378.8 | 378.9 | 378.8 | 378.8 | 378.8 | 378.8 | 378.9 | 378.8 | 378.8 | 378.8 | 378.9 | 378.8 | |
Amount of funds in intercompany tax escrow | 78.9 | |||||||||||||
Other operating expenses | 77 | 84.4 | 97.2 | 77.3 | 91.3 | 83.2 | 181.6 | 174.5 | 258.6 | 251.8 | 350.2 | 337.1 | 253.3 | |
Risk-based capital threshold | 250.00% | |||||||||||||
Phoenix Life | ||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||
Anticipated dividends paid in next fiscal year | 59.9 | 59.9 | ||||||||||||
Dividends | 56 | |||||||||||||
Risk-based capital threshold | 300.00% | 300.00% | ||||||||||||
Parent Company | ||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||
Interest paid | 20 | 20 | 20 | |||||||||||
Indebtedness | 268.6 | 268.6 | 268.6 | |||||||||||
Increase in restricted cash | 10.8 | |||||||||||||
Other operating expenses | 102.6 | 70.7 | 10.2 | |||||||||||
Capital contributions to subsidiaries | 15 | 45 | 0 | |||||||||||
PHL Variable | ||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||
Risk-based capital threshold | 200.00% | 200.00% | ||||||||||||
Capital contributions to subsidiaries | 15 | 45 | ||||||||||||
PHL Variable | Minimum | ||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||
Risk-based capital threshold | 225.00% | 225.00% | ||||||||||||
7.45% Senior Unsecured Bonds | Corporate | ||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||
Interest paid | 20 | 20 | 20 | |||||||||||
Indebtedness | $252.70 | $252.70 |
Basis_of_Presentation_and_Sign7
Basis of Presentation and Significant Accounting Policies - Audit Fees and Other Professional Fees (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Professional fees associated with the restatement | $44 | $62.90 |
Reinsurance_Narrative_Details
Reinsurance Narrative (Details) (USD $) | 12 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | |
reinsurance_company | ||||||||||
Reinsurance Retention Policy [Line Items] | ||||||||||
Trust agreements and irrevocable letters of credit | $45,800,000 | |||||||||
Irrevocable letters of credit related to discontinued group accident and health reinsurance operations | 2,800,000 | |||||||||
Reinsurance recoverable | 559,100,000 | 572,900,000 | 592,400,000 | 611,600,000 | 598,100,000 | 589,900,000 | 576,700,000 | 593,500,000 | ||
Number of major reinsurance companies | 5 | |||||||||
Percentage of reinsurance recoverable account by five major reinsurance companies | 67.00% | |||||||||
Single Life Policy And Joint First-To-Die | ||||||||||
Reinsurance Retention Policy [Line Items] | ||||||||||
Reinsurance Retention Policy, Amount Retained | 5,000,000 | 10,000,000 | ||||||||
Joint Last-To-Die Policy | ||||||||||
Reinsurance Retention Policy [Line Items] | ||||||||||
Reinsurance Retention Policy, Amount Retained | $6,000,000 | $12,000,000 |
Reinsurance_Details
Reinsurance (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Direct Business and Reinsurance in Continuing Operations | |||
Direct premiums | $473.20 | $501.80 | $565.30 |
Premiums assumed | 9.7 | 11.8 | 11.8 |
Premiums ceded to reinsurers | -150.8 | -162 | -174.8 |
Premiums | 332.1 | 351.6 | 402.3 |
Percentage of amount assumed to net premiums | 2.90% | 3.40% | 2.90% |
Direct policy benefits incurred | 785.3 | 819.1 | 812.9 |
Policy benefits assumed | 42.5 | 22.7 | 68.7 |
Policy benefits ceded | -241.9 | -265.4 | -270.3 |
Premiums paid to reinsurers | 95.8 | 83.1 | 96.9 |
Policy benefits | 681.7 | 659.5 | 708.2 |
Direct life insurance in force | 95,811.40 | 102,405.60 | 111,682.70 |
Life insurance in force assumed | 1,721 | 1,678.20 | 1,756.70 |
Life insurance in force ceded | -58,022.40 | -62,553.80 | -69,674.50 |
Life insurance in force | 39,510 | 41,530 | 43,764.90 |
Percentage of amount assumed to net insurance in force | 4.40% | 4.00% | 4.00% |
Changes in reserves, interest credited to policyholders, policyholder dividends and other items | $437.50 | $305.60 | $454.20 |
Demutualization_and_Closed_Blo2
Demutualization and Closed Block Schedule of Closed Block Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 25, 2011 |
In Millions, unless otherwise specified | |||
Closed Block Assets And Liabilities | |||
Available-for-sale debt securities | $5,877 | $5,753.40 | $4,773.10 |
Available-for-sale equity securities | 91.7 | 76.5 | 0 |
Short-term investments | 0 | 106.9 | 0 |
Limited partnerships and other investments | 343.4 | 345 | 399 |
Policy loans | 1,159.10 | 1,201.60 | 1,380 |
Fair value investments | 59.8 | 42.5 | 0 |
Total closed block investments | 7,531 | 7,525.90 | 6,552.10 |
Cash and cash equivalents | 89.6 | 78.2 | 0 |
Accrued investment income | 80.7 | 81.7 | 106.8 |
Reinsurance recoverable | 19.1 | 26.8 | 0 |
Deferred income taxes, net | 290.3 | 285.4 | 389.4 |
Other closed block assets | 67.4 | 58.2 | 41.4 |
Total closed block assets | 8,078.10 | 8,056.20 | 7,089.70 |
Policy liabilities and accruals | 8,058.20 | 8,258.40 | 8,301.70 |
Policyholder dividends payable | 201.9 | 207.8 | 325.1 |
Policy dividend obligation | 714.8 | 497.7 | 0 |
Other closed block liabilities | 48 | 65.9 | 12.3 |
Total closed block liabilities | 9,022.90 | 9,029.80 | 8,639.10 |
Excess of closed block liabilities over closed block assets | 944.8 | 973.6 | 1,549.40 |
Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests | -11.8 | -8 | |
Excess of closed block liabilities over closed block assets attributable to The Phoenix Companies, Inc. | $956.60 | $981.60 |
Schedule_of_Closed_Block_Reven
Schedule of Closed Block Revenues and Expenses and Changes in Policyholder Dividend Obligations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Closed block revenues | |||
Premiums | $301.80 | $317.80 | $369.50 |
Net investment income | 411.1 | 409.6 | 453.3 |
Net realized investment gains (losses) | 12.8 | 16.6 | 9.2 |
Total revenues | 725.7 | 744 | 832 |
Policy benefits | 438.4 | 464.5 | 493.8 |
Other operating expenses | 2.7 | 5.3 | 3 |
Total benefits and expenses | 441.1 | 469.8 | 496.8 |
Closed block contribution to income before dividends and income taxes | 284.6 | 274.2 | 335.2 |
Policyholder dividends | -244.6 | -235.7 | -291.8 |
Closed block contribution to income before income taxes | 40 | 38.5 | 43.4 |
Applicable income tax expense | 13.3 | 13.4 | 15 |
Closed block contribution to income | 26.7 | 25.1 | 28.4 |
Less: Closed block contribution to income attributable to noncontrolling interests | 2 | 0.3 | 0.5 |
Closed block contribution to income attributable to The Phoenix Companies, Inc. | 24.7 | 24.8 | 27.9 |
Policyholder dividend obligation | |||
Policyholder dividends provided through earnings | 244.6 | 235.7 | 291.8 |
Policyholder dividends provided through OCI | 138.8 | -308.4 | 165.7 |
Additions to (reductions of) policyholder dividend liabilities | 383.4 | -72.7 | 457.5 |
Policyholder dividends paid | -172.2 | -178.6 | -214.5 |
Increase (decrease) in policyholder dividend liabilities | 211.2 | -251.3 | 243 |
Policyholder dividend liabilities, beginning of period | 705.5 | 956.8 | 713.8 |
Policyholder dividend liabilities, end of period | 916.7 | 705.5 | 956.8 |
Policyholder dividends payable, end of period | -201.9 | -207.8 | -223.8 |
Policyholder dividend obligation, end of period | $714.80 | $497.70 | $733 |
Narrative_Details
Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Insurance [Abstract] | ||
Policyholder dividend obligation for cumulative closed block | $277.90 | $202.10 |
Unrealized gains in investments included in policyholder dividend obligation for cumulative closed block | $436.90 | $295.60 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Costs amortized to expenses: | |||
Balance, beginning of period | $947.80 | $898.10 | $1,114.80 |
Policy acquisition costs deferred | 72.9 | 58.4 | 58.1 |
Recurring costs | -129.5 | -117.9 | -141.3 |
Assumption unlocking | -4.4 | 25.4 | -55.6 |
Realized investment gains (losses) | 14.3 | -10.6 | 0.8 |
Offsets to net unrealized investment gains or losses included in AOCI | -52.5 | 94.4 | -78.7 |
Balance, end of period | $848.60 | $947.80 | $898.10 |
Sales_Inducements_Details
Sales Inducements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance, beginning of period | $77.40 | $63.90 | $51.20 |
Sales inducements deferred | 17.5 | 10.6 | 15.4 |
Amortization charged to income | -8 | -8.5 | -5.7 |
Offsets to net unrealized investment gains or losses included in AOCI | -7.5 | 11.4 | 3 |
Balance, end of period | $79.40 | $77.40 | $63.90 |
Schedule_of_Fair_Value_and_Cos
Schedule of Fair Value and Cost of Securities (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | $11,978 | $11,341.50 | ||||||
Gross Unrealized Gains | 799.9 | 592.4 | ||||||
Gross Unrealized Losses | -98.6 | -202.4 | ||||||
Available for sale securities, fair value | 12,679.30 | 12,587.50 | 12,370.50 | 11,920.70 | 11,731.50 | 11,649.80 | 11,654.80 | 11,816.60 |
OTTI Recognized in AOCI | -51.8 | -57.1 | ||||||
Amortized Cost - Amounts applicable to the closed block | 5,451.30 | 5,465 | ||||||
Gross Unrealized Gains - Amounts applicable to the closed block | 458.1 | 362.6 | ||||||
Gross Unrealized Losses - Amounts applicable to the closed block | -32.4 | -74.2 | ||||||
Fair Value - Amounts applicable to the closed block | 5,877 | 5,753.40 | ||||||
OTTI Recognized in AOCI - Amounts applicable to the closed block | -14.7 | -16.5 | ||||||
Amortized Cost - Available-for-sale equity securities | 156 | 119.3 | ||||||
Gross Unrealized Gains - Available-for-sale equity securities | 25.1 | 23.9 | ||||||
Gross Unrealized Losses - Available-for-sale equity securities | -1.6 | -5.2 | ||||||
Available-for-sale equity securities, at fair value | 179.5 | 189.9 | 149.1 | 143.2 | 138 | 107.7 | 107.4 | 97.9 |
OTTI Recognized in AOCI - Available-for-sale equity securities | 0 | 0 | ||||||
Amortized Cost - Amounts applicable to the closed block | 80.5 | 69.3 | ||||||
Gross Unrealized Gains - Amounts applicable to the closed block | 12.3 | 10.1 | ||||||
Gross Unrealized Losses - Amounts applicable to the closed block | -1.1 | -2.9 | ||||||
Fair Value - Amounts applicable to the closed block | 91.7 | 76.5 | ||||||
OTTI Recognized in AOCI - Amounts applicable to the closed block | 0 | 0 | ||||||
U.S. government and agency | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 388.3 | 370.2 | ||||||
Gross Unrealized Gains | 55.2 | 36.2 | ||||||
Gross Unrealized Losses | -0.1 | -2.6 | ||||||
Available for sale securities, fair value | 443.4 | 403.8 | ||||||
OTTI Recognized in AOCI | 0 | 0 | ||||||
State and political subdivision | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 518.3 | 402.5 | ||||||
Gross Unrealized Gains | 42.1 | 18.2 | ||||||
Gross Unrealized Losses | -2.5 | -10.2 | ||||||
Available for sale securities, fair value | 557.9 | 410.5 | ||||||
OTTI Recognized in AOCI | -1.1 | -1.1 | ||||||
Foreign government | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 205.8 | 194 | ||||||
Gross Unrealized Gains | 26.5 | 16.6 | ||||||
Gross Unrealized Losses | -1.4 | -0.7 | ||||||
Available for sale securities, fair value | 230.9 | 209.9 | ||||||
OTTI Recognized in AOCI | 0 | 0 | ||||||
Corporate | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 7,942.70 | 7,266.10 | ||||||
Gross Unrealized Gains | 530 | 423 | ||||||
Gross Unrealized Losses | -74.6 | -135.7 | ||||||
Available for sale securities, fair value | 8,398.10 | 7,553.40 | ||||||
OTTI Recognized in AOCI | -8.3 | -8.8 | ||||||
Commercial mortgage-backed (“CMBSâ€) | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 602.9 | 681.2 | ||||||
Gross Unrealized Gains | 48.4 | 35.8 | ||||||
Gross Unrealized Losses | -0.1 | -3.2 | ||||||
Available for sale securities, fair value | 651.2 | 713.8 | ||||||
OTTI Recognized in AOCI | -1.2 | -3.4 | ||||||
Residential mortgage-backed (“RMBSâ€) | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 1,862.50 | 1,893 | ||||||
Gross Unrealized Gains | 81.6 | 42 | ||||||
Gross Unrealized Losses | -11.9 | -37.4 | ||||||
Available for sale securities, fair value | 1,932.20 | 1,897.60 | ||||||
OTTI Recognized in AOCI | -25.5 | -26.7 | ||||||
Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 197.5 | 223.4 | ||||||
Gross Unrealized Gains | 2.7 | 5.8 | ||||||
Gross Unrealized Losses | -3.3 | -5.1 | ||||||
Available for sale securities, fair value | 196.9 | 224.1 | ||||||
OTTI Recognized in AOCI | -13.9 | -15.3 | ||||||
Other asset-backed (“ABSâ€) | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Amortized Cost | 260 | 311.1 | ||||||
Gross Unrealized Gains | 13.4 | 14.8 | ||||||
Gross Unrealized Losses | -4.7 | -7.5 | ||||||
Available for sale securities, fair value | 268.7 | 318.4 | ||||||
OTTI Recognized in AOCI | ($1.80) | ($1.80) |
Schedule_of_Maturities_of_Debt
Schedule of Maturities of Debt Securities (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||||||||
Due in one year or less | $374.30 | |||||||
Due after one year through five years | 2,074.10 | |||||||
Due after five years through ten years | 3,528.60 | |||||||
Due after ten years | 3,078.10 | |||||||
CMBS/RMBS/ABS/CDO/CLO | 2,922.90 | |||||||
Amortized Cost | 11,978 | 11,341.50 | ||||||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||||||||
Due in one year or less | 381.2 | |||||||
Due after one year through five years | 2,204.80 | |||||||
Due after five years through ten years | 3,673.30 | |||||||
Due after ten years | 3,371 | |||||||
CMBS/RMBS/ABS/CDO/CLO | 3,049 | |||||||
Total | $12,679.30 | $12,587.50 | $12,370.50 | $11,920.70 | $11,731.50 | $11,649.80 | $11,654.80 | $11,816.60 |
Schedule_of_Sales_of_Available
Schedule of Sales of Available-for-Sale Securities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt securities, available-for-sale | |||
Proceeds from sales | $446.10 | $532.20 | $346.50 |
Proceeds from maturities/repayments | 1,225.30 | 1,544 | 1,517.30 |
Gross investment gains from sales, prepayments and maturities | 41.6 | 45.1 | 46.4 |
Gross investment losses from sales and maturities | -17.6 | -2.2 | -11.1 |
Equity securities, available-for-sale | |||
Proceeds from sales | 24.2 | 12.7 | 22.5 |
Gross investment gains from sales | 10.4 | 4.2 | 14.4 |
Gross investment losses from sales | ($1) | ($3.80) | ($0.40) |
Schedule_of_Aging_of_Temporary
Schedule of Aging of Temporary Impaired Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | security | security |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $768.60 | $2,919.50 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -27 | -129 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 1,053.20 | 625.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -73.2 | -78.6 |
Available-for-sale securities, continuous unrealized loss position, fair value | 1,821.80 | 3,545.10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -100.2 | -207.6 |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, less than twelve months, fair value | 266.8 | 1,172.70 |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, less than twelve months, accumulated loss | -11.7 | -48.7 |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, twelve months or longer, fair value | 387.8 | 238.4 |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, twelve months or longer, accumulated loss | -21.8 | -28.4 |
Available-for-sale securities, continuous unrealized loss position, amount inside closed block, fair value, total | 654.6 | 1,411.10 |
Available-for-sale securities, amounts inside closed block, continuous unrealized loss position, accumulated loss, total | -33.5 | -77.1 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, less than twelve months, fair value | 501.8 | 1,746.80 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, less than twelve months, accumulated loss | -15.3 | -80.3 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, twelve months or longer, fair value | 665.4 | 387.2 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, twelve months or longer, accumulated loss | -51.4 | -50.2 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, fair value, total | 1,167.20 | 2,134 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, accumulated loss, total | -66.7 | -130.5 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, less than twelve months, fair value | 84.2 | 76.4 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, less than twelve months, accumulated loss | -4.1 | -3.4 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, twelve months or longer, fair value | 50.4 | 52.9 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, twelve months or longer, accumulated loss | -6.6 | -7.8 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, fair value, total | 134.6 | 129.3 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, continuous unrealized loss position, accumulated loss, total | -10.7 | -11.2 |
Available-for-sale securities, continuous unrealized loss position, less than twelve months, number of securities | 158 | 475 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 211 | 156 |
Number of securities | 369 | 631 |
Total available-for-sale debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 763 | 2,864.20 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -26.3 | -124.7 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 1,038 | 621.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -72.3 | -77.7 |
Available-for-sale securities, continuous unrealized loss position, fair value | 1,801 | 3,486.10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -98.6 | -202.4 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 201 | 150 |
U.S. government and agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 0 | 48 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | -2.1 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 2.7 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -0.1 | -0.5 |
Available-for-sale securities, continuous unrealized loss position, fair value | 2.7 | 51 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -0.1 | -2.6 |
State and political subdivision | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 11.6 | 120.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -0.6 | -7.6 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 31.1 | 10.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -1.9 | -2.6 |
Available-for-sale securities, continuous unrealized loss position, fair value | 42.7 | 130.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -2.5 | -10.2 |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 15.7 | 41 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -1.4 | -0.7 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale securities, continuous unrealized loss position, fair value | 15.7 | 41 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -1.4 | -0.7 |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 643 | 1,701.50 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -23.5 | -86.5 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 654.3 | 326.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -51.1 | -49.2 |
Available-for-sale securities, continuous unrealized loss position, fair value | 1,297.30 | 2,028.30 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -74.6 | -135.7 |
Commercial mortgage-backed (“CMBSâ€) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 12.6 | 93.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | -2.7 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 10.9 | 10.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -0.1 | -0.5 |
Available-for-sale securities, continuous unrealized loss position, fair value | 23.5 | 104.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -0.1 | -3.2 |
Residential mortgage-backed (“RMBSâ€) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 8.4 | 773.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -0.2 | -24.4 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 226.7 | 144.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -11.7 | -13 |
Available-for-sale securities, continuous unrealized loss position, fair value | 235.1 | 917.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -11.9 | -37.4 |
Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 57.9 | 64.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -0.5 | -0.6 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 96.3 | 97.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -2.8 | -4.5 |
Available-for-sale securities, continuous unrealized loss position, fair value | 154.2 | 161.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -3.3 | -5.1 |
Other ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 13.8 | 22.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -0.1 | -0.1 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 16 | 29.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -4.6 | -7.4 |
Available-for-sale securities, continuous unrealized loss position, fair value | 29.8 | 51.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | -4.7 | -7.5 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 5.6 | 55.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -0.7 | -4.3 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 15.2 | 3.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -0.9 | -0.9 |
Available-for-sale securities, continuous unrealized loss position, fair value | 20.8 | 59 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | ($1.60) | ($5.20) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 10 | 6 |
Debt_Equity_Securities_Narrati
Debt & Equity Securities Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | security | security |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses on debt securities outside closed block depressed of amortized cost, percentage | 20.00% | 20.00% |
Unrealized losses on debt securities outside closed block depressed of amortized cost for more than 12 month, amount | $3.20 | $2.70 |
Unrealized losses on debt securities held in closed block depressed of amortized cost, amount | 1.7 | 4.8 |
Unrealized losses on debt securities outside closed block depressed of amortized cost, amount | 2.1 | 5.1 |
Unrealized losses on debt securities outside closed block depressed of amortized cost for more than 12 month, amount | $0.10 | $0 |
Unrealized losses on debt securities outside closed block depressed of amortized cost for more than 12 month, percentage | 20.00% | 20.00% |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 211 | 156 |
Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 201 | 150 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 10 | 6 |
Otherthantemporary_impairments
Other-than-temporary impairments Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Total debt impairments recognized | ($8.10) | ($11.80) | ($27.60) |
Schedule_of_Credit_Losses_Reco
Schedule of Credit Losses Recognized in Earnings on Debt Securities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning of period | ($71.40) | ($72.60) | ($79.10) |
Add: Credit losses on securities not previously impaired | 0 | -1.1 | -6.7 |
Add: Credit losses on securities previously impaired | 0 | -4.1 | -13.3 |
Less: Credit losses on securities impaired due to intent to sell | 0 | 0 | 0 |
Less: Credit losses on securities sold | 19 | 6.4 | 26.5 |
Less: Increases in cash flows expected on previously impaired securities | 0 | 0 | 0 |
Balance, end of period | ($52.40) | ($71.40) | ($72.60) |
Schedule_of_Limited_Partnershi
Schedule of Limited Partnerships and Other Investments (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||
Private equity funds | $241.10 | $240.80 | ||||||
Mezzanine funds | 162.4 | 180.4 | ||||||
Infrastructure funds | 38.9 | 38.1 | ||||||
Hedge funds | 10.7 | 13 | ||||||
Mortgage and real estate funds | 3.7 | 3.3 | ||||||
Leveraged leases | 11.8 | 16.8 | ||||||
Direct equity investments | 49.6 | 44.5 | ||||||
Life settlements | 22.4 | 21.6 | ||||||
Other alternative assets | 2.2 | 2.8 | ||||||
Limited partnerships and other investments | 542.8 | 560.7 | 557.9 | 569.5 | 561.3 | 573 | 559.4 | 563.4 |
Amounts applicable to the closed block | $343.40 | $345 |
Investing_Activities_Schedule_
Investing Activities Schedule of Aggregated Summarized Balance Sheet Information of Equity Method Investees (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Total assets | $21,745.90 | $21,693.50 | $21,928.40 | $21,751.40 | $21,641.10 | $21,548.80 | $21,452.60 | $21,690.50 |
Total liabilities | 21,399.30 | 21,159.80 | 21,365.10 | 21,185.50 | 21,039.80 | 21,164.20 | 21,067.50 | 21,263.90 |
Equity Method Investee | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Total assets | 58,694.10 | 56,434.10 | ||||||
Total liabilities | $1,630.20 | $1,654 |
Investing_Activities_Schedule_1
Investing Activities Schedule of Aggregated Net Investment Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||
Total investment revenues | $440.40 | $414.40 | $413.10 | $399 | $463.80 | $429.80 | $419.20 | $394.80 | $812.10 | $814 | $1,226.50 | $1,243.80 | $1,666.90 | $1,707.60 | $1,781.20 |
Equity Method Investee | |||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||
Total investment revenues | 2,329.90 | 2,759.70 | 2,389.60 | ||||||||||||
Net income | $5,869.20 | $9,297.30 | $8,315.20 |
Investing_Activities_Schedule_2
Investing Activities Schedule of Investment Leveraged Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Rental receivables, net | $4.90 | $10.10 |
Estimated residual values | 7.3 | 7.3 |
Unearned income | -0.4 | -0.6 |
Investment in leveraged leases | $11.80 | $16.80 |
Leveraged_leases_Narrative_Det
Leveraged leases Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Deferred income tax liability related to leveraged leases | $9.50 | $11.70 |
Investing_Activities_Schedule_3
Investing Activities Schedule of Investment Income after Income Tax from Investmet Leveraged Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Income from investment in leveraged leases | $0.10 | $0.10 | $0.20 |
Less: Income tax expense on leveraged leases | 0 | 0 | -0.1 |
Investment income after income tax from investment in leveraged leases | $0.10 | $0.10 | $0.10 |
Direct_equity_investments_Narr
Direct equity investments Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Income received from other direct equity investments | $7.80 | $7 | $1 |
Undistributed earnings of direct equity investments | ($1.50) | $5.40 | ($2) |
Investing_Activities_Schedule_4
Investing Activities Schedule of Carrying value and change in investment balance of non-consolidated direct equity investments(Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Change In Equity Method Investments [Roll Forward] | ||
Beginning balance | $44.50 | $30.70 |
Net contributions (distributions) | -2.7 | 6.8 |
Net income (loss) | 7.8 | 7 |
Ending balance | $49.60 | $44.50 |
Life_settlements_Narrative_Det
Life settlements Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Income (losses) recognized on life settlement contracts | $0 | $0.70 | $0.90 |
Impairment charges on life settlement contracts | 0 | 0 | 0.3 |
Anticipated life insurance premiums payable in December 31, 2015 | 1.3 | ||
Anticipated life insurance premiums payable in December 31, 2016 | 1 | ||
Anticipated life insurance premiums payable in December 31, 2017 | 1.2 | ||
Anticipated life insurance premiums payable in December 31, 2018 | 1.1 | ||
Anticipated life insurance premiums payable in December 31, 2019 | $1.10 |
Investing_Activities_Schedule_5
Investing Activities Schedule of Remaining Life Expectancy of Insured (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | contracts |
Defined Benefit Plan Disclosure [Line Items] | |
Number of Contracts | 13 |
Carrying Value | $22.40 |
Face Value (Death Benefits) | 59.1 |
0-5 years | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of Contracts | 5 |
Carrying Value | 13.7 |
Face Value (Death Benefits) | 22 |
Thereafter | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of Contracts | 8 |
Carrying Value | 8.7 |
Face Value (Death Benefits) | $37.10 |
Statutory_deposits_Narrative_D
Statutory deposits Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Deposit securities fair value | $30.50 | $31.10 |
Schedule_of_Sources_of_Net_Inv
Schedule of Sources of Net Investment Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||||||||||||
Debt securities | $581.60 | $565 | $604.80 | ||||||||||
Equity securities | 9.2 | 7.2 | 4.3 | ||||||||||
Limited partnerships and other investments | 65.3 | 58.3 | 63.7 | ||||||||||
Policy loans | 167.4 | 160 | 161.5 | ||||||||||
Fair value investments | 25.4 | 14.1 | 9.4 | ||||||||||
Total investment income | 848.9 | 804.6 | 843.7 | ||||||||||
Less: Discontinued operations | 1.1 | 1.3 | 2.1 | ||||||||||
Less: Investment expenses | 16.9 | 13.6 | 13.8 | ||||||||||
Net investment income | 204.9 | 191.5 | 211.5 | 199.3 | 193.9 | 190.4 | 403 | 384.3 | 607.9 | 583.6 | 830.9 | 789.7 | 827.8 |
Amounts applicable to closed block | $411.10 | $409.60 | $453.30 |
Schedule_of_Sources_and_Types_
Schedule of Sources and Types of Net Realized Investment Gains (Losses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||||||||||||
Total other-than-temporary debt impairments | ($5.60) | ($7) | ($45.70) | ||||||||||
Portion of losses recognized in OCI | -0.2 | 0 | -0.2 | -0.4 | -2.5 | -1.7 | -0.2 | -4.2 | -0.4 | -4.6 | -0.4 | -4.8 | 22.9 |
Net debt impairments recognized in earnings | -6 | -11.8 | -22.8 | ||||||||||
Debt security impairments: | |||||||||||||
U.S. government and agency | 0 | 0 | 0 | ||||||||||
State and political subdivision | 0 | 0 | -0.6 | ||||||||||
Foreign government | 0 | 0 | 0 | ||||||||||
Corporate | -6 | -3.8 | -3 | ||||||||||
CMBS | 0 | -2.7 | -4.1 | ||||||||||
RMBS | 0 | -4.3 | -10.3 | ||||||||||
CDO/CLO | 0 | -1 | -3.8 | ||||||||||
Other ABS | 0 | 0 | -1 | ||||||||||
Net debt security impairments | -6 | -11.8 | -22.8 | ||||||||||
Equity security impairments | -2.1 | 0 | -4.8 | ||||||||||
Limited partnerships and other investment impairments | 0 | 0 | -0.3 | ||||||||||
Impairment losses | -8.1 | -11.8 | -27.9 | ||||||||||
Debt security transaction gains | 41.8 | 45.3 | 46.4 | ||||||||||
Debt security transaction losses | -17.7 | -2.2 | -11.1 | ||||||||||
Equity security transaction gains | 10.4 | 4.2 | 14.4 | ||||||||||
Equity security transaction losses | -1 | -3.8 | -0.4 | ||||||||||
Limited partnerships and other investment transaction gains | 0 | 0.8 | 7.7 | ||||||||||
Limited partnerships and other investment transaction losses | -0.7 | -4.6 | -2.5 | ||||||||||
Net transaction gains (losses) | 32.8 | 39.7 | 54.5 | ||||||||||
Derivative instruments | -20.8 | -27.7 | -50.4 | ||||||||||
Embedded derivatives | -45.9 | 12.2 | 4.9 | ||||||||||
Assets valued at fair value | 0.8 | 3.6 | 2.1 | ||||||||||
Net realized investment gains (losses), excluding impairment losses | 0.1 | 5.2 | -26.7 | 7.5 | 8.2 | -12.4 | -21.5 | -4.2 | -21.4 | 3.3 | -33.1 | 27.8 | 11.1 |
Net realized investment gains (losses), including impairment losses | ($41.20) | $16 | ($16.80) |
Schedule_of_Sources_of_Changes
Schedule of Sources of Changes in Net Unrealized Investment Gains (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Debt securities | $311.30 | ($538.10) | $402.90 |
Equity securities | 4.8 | 2.7 | 7.9 |
Other investments | -4.1 | 0.6 | -0.7 |
Net unrealized investment gains (losses) | 312 | -534.8 | 410.1 |
Applicable to closed block policyholder dividend obligation | 138.8 | -308.4 | 165.7 |
Applicable to DAC | 52.5 | -94.4 | 78.7 |
Applicable to other actuarial offsets | 54.2 | -69.3 | 70.3 |
Applicable to deferred income tax expense (benefit) | 35.7 | -20.5 | 92 |
Offsets to net unrealized investment gains (losses) | 281.2 | -492.6 | 406.7 |
Net unrealized investment gains (losses) included in OCI | $30.80 | ($42.20) | $3.40 |
Schedule_of_Carrying_Value_of_
Schedule of Carrying Value of Assets and Liabilities for Consolidated Variable Interest Entities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Unfunded commitments related to VIEs | $11.90 | $0 |
Liability | ||
Variable Interest Entity [Line Items] | ||
Debt securities, at fair value | 0 | 0 |
Equity securities, at fair value | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Investment in partnership interests | 0 | 0 |
Investment in single asset LLCs | 0 | 0 |
Other assets | 0 | 0 |
Total liabilities of consolidated VIEs | 0.6 | 0.8 |
Maximum Exposure of Loss | ||
Variable Interest Entity [Line Items] | ||
Debt securities, at fair value | 5.1 | 3.2 |
Equity securities, at fair value | 30 | 24.7 |
Cash and cash equivalents | 9.3 | 10.6 |
Investment in partnership interests | 0 | 0.1 |
Investment in single asset LLCs | 36.6 | 18.3 |
Other assets | 0.5 | 0.5 |
Total assets of consolidated VIEs | 81.5 | 57.4 |
Total liabilities of consolidated VIEs | 0.5 | 0.6 |
Assets | ||
Variable Interest Entity [Line Items] | ||
Debt securities, at fair value | 5.5 | 3.6 |
Equity securities, at fair value | 35 | 29.4 |
Cash and cash equivalents | 9.4 | 10.8 |
Investment in partnership interests | 0 | 0.1 |
Investment in single asset LLCs | 50.6 | 24.3 |
Other assets | 0.6 | 0.6 |
Total assets of consolidated VIEs | $101.10 | $68.80 |
Schedule_of_Carrying_Value_of_1
Schedule of Carrying Value of Assets and Liabilities and Maximum Exposure Loss Relating to Variable Interest Entities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Carrying value of investments in non-consolidated VIEs | $151.50 | $172.60 |
Maximum Exposure of Loss | ||
Variable Interest Entity [Line Items] | ||
Total | 203.3 | 227.5 |
Maximum Exposure of Loss | Limited partnerships | ||
Variable Interest Entity [Line Items] | ||
Total | 157.8 | 171.6 |
Maximum Exposure of Loss | LLCs | ||
Variable Interest Entity [Line Items] | ||
Total | 45.5 | 55.9 |
Assets | ||
Variable Interest Entity [Line Items] | ||
Total | 151.5 | 172.6 |
Assets | Limited partnerships | ||
Variable Interest Entity [Line Items] | ||
Total | 106 | 116.7 |
Assets | LLCs | ||
Variable Interest Entity [Line Items] | ||
Total | $45.50 | $55.90 |
Issuer_and_counterparty_credit
Issuer and counterparty credit exposure Narrative (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
issuer | security | |
counterparty | ||
security | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 211 | 156 |
Fixed maturities below-investment-grade assets | $848.80 | $864 |
Number of issuers (in issuers) | 18 | |
Credit concentration risk | 10.00% | |
Derivative assets, net of liabilities | 75.7 | |
Number of counterparties (counterparties) | 11 | |
Debt securities, fair value | 290.9 | |
Maximum amount of loss due to credit risk | $366.60 | |
Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 201 | 150 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities | 10 | 6 |
Financing_Activities_Schedule_
Financing Activities Schedule of Long-term Debt Instruments (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||||||||
Debt Disclosure [Abstract] | ||||||||
7.15% surplus notes | $126.20 | $126.10 | ||||||
7.45% senior unsecured bonds | 252.7 | 252.7 | ||||||
Total indebtedness | $378.90 | $378.80 | $378.90 | $378.80 | $378.80 | $378.80 | $378.80 | $378.80 |
Financing_Activities_Narrative
Financing Activities Narrative (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2001 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 21, 2012 | |
Debt Instrument [Line Items] | ||||||
7.45% senior unsecured bonds | $252,700,000 | $252,700,000 | ||||
Future repayments due in 2032 | 252,700,000 | |||||
Future repayments due in 2034 | 126,700,000 | |||||
Surplus notes | 7.15% Surplus Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 7.15% | |||||
Unamortized discount | 500,000 | 200,000 | ||||
Repurchased face amount | 48,300,000 | |||||
Repurchase amount | 36,200,000 | |||||
Corporate | 7.45% Senior Unsecured Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 7.45% | |||||
Repurchased face amount | 47,300,000 | |||||
Repurchase amount | 0 | 0 | ||||
Amount of debt extinguished | 31,400,000 | |||||
Gross proceeds from the issuance of bonds | 300,000,000 | |||||
Net proceeds from the issuance of bonds | $290,600,000 | |||||
Bond redemption price (as a percent) | 100.00% | |||||
Period to file reports with trustee | 15 days | |||||
Cure period | 60 days |
Financing_Activities_Interest_
Financing Activities Interest Income and Interest Expense Disclosure (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||||||||||||
7.15% surplus notes | $9.10 | $9.10 | $11.60 | ||||||||||
7.45% senior unsecured bonds | 19.2 | 19.2 | 19.2 | ||||||||||
Interest expense on indebtedness | $7 | $7.10 | $7.10 | $7.10 | $7.10 | $7.10 | $14.20 | $14.20 | $21.20 | $21.30 | $28.30 | $28.30 | $30.80 |
Common_Stock_and_Stock_Repurch1
Common Stock and Stock Repurchase Program (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Aug. 10, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Aug. 11, 2012 | Sep. 20, 2012 | |
Class of Stock [Line Items] | |||||||
Shares authorized for issuance (in shares) | 50,000,000 | ||||||
Reverse stock split ratio | 0.05 | ||||||
Common stock par value (USD per share) | $0.01 | $0.01 | $0.01 | $0.01 | |||
Shares reserved for future issuance (shares) | 0 | 400,000 | |||||
Reverse stock split, amount payable to shareholders | $2,900,000 | ||||||
Number of shares a participant with fewer than 100 shares can increase their round lot (shares) | 100 | ||||||
Common stock, shares, issued (shares) | 6,400,000 | ||||||
Shares issue to policyholders in exchange for their interests (shares) | 2,800,000 | ||||||
Shares issue to settle share-based compensation awards (shares) | 3,600,000 | ||||||
Shares outstanding (shares) | 116,000,000 | 5,800,000 | 5,700,000 | 5,700,000 | 5,800,000 | ||
Treasury stock, number of shares held | 700,000 | ||||||
Shares held in Rabbi Trust (in shares) | 100,000 | ||||||
Stockholder dividends paid | 0 | 0 | 0 | ||||
Common stock owned by State Farm (as a percent) | 5.10% | ||||||
Compensation costs | 2,700,000 | 2,600,000 | 2,300,000 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $25,000,000 | ||||||
Stock Options | |||||||
Class of Stock [Line Items] | |||||||
Shares reserved for future issuance (shares) | 300,000 | ||||||
Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Shares reserved for future issuance (shares) | 100,000 |
Separate_Accounts_Death_Benefi2
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives [Abstract] | |||
Assets supporting fixed indexed annuities | $2,600,000,000 | $2,000,000,000 | |
Age of oldest original owner | 81 years | ||
Fixed annuity benefit, percentage of premiums paid | 200.00% | ||
Embedded derivative, fair value | 153,900,000 | 91,900,000 | |
Embedded derivatives gains and (losses) recognized in earnings | ($45,900,000) | $12,200,000 | $4,900,000 |
Separate_Accounts_Death_Benefi3
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives [Abstract] | ||
Debt securities | $375.90 | $433 |
Equity funds | 1,638.60 | 1,920.40 |
Other | 49.9 | 64.3 |
Total | $2,064.40 | $2,417.70 |
Separate_Accounts_Death_Benefi4
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Changes in Guaranteed Liability Balances (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Annuity GMDB | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | $22.70 | $15.90 | $16.40 |
Incurred | 1.8 | 2.1 | 0.6 |
Paid | -3.7 | -3.7 | -1.1 |
Change due to net unrealized gains or losses included in AOCI | 0.1 | 0 | 0 |
Assumption unlocking | -0.5 | -8.4 | 0 |
Liability balance, end of the period | 21.4 | 22.7 | 15.9 |
Variable Annuity GMIB | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | 9.8 | 21.7 | 17.6 |
Incurred | 2.1 | -3.6 | 4 |
Paid | -0.2 | 0 | 0 |
Change due to net unrealized gains or losses included in AOCI | 0 | -0.1 | 0.3 |
Assumption unlocking | -5.4 | 8.2 | -0.2 |
Liability balance, end of the period | 17.1 | 9.8 | 21.7 |
Fixed Indexed Annuity GMWB & GMDB | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | 85.4 | 102.1 | 5.6 |
Incurred | 33.4 | 60.8 | 37.2 |
Paid | -0.3 | -0.3 | 0 |
Change due to net unrealized gains or losses included in AOCI | -35.9 | 58.5 | -59.3 |
Assumption unlocking | -7.4 | -18.7 | 0 |
Liability balance, end of the period | 147 | 85.4 | 102.1 |
Universal Life | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | 170.6 | 138.5 | 114.6 |
Incurred | 39.9 | 37.9 | 29.3 |
Paid | -15.3 | -14.3 | -9.5 |
Change due to net unrealized gains or losses included in AOCI | 2.2 | -2.4 | 2.4 |
Assumption unlocking | 1.6 | -10.9 | -1.7 |
Liability balance, end of the period | $195.80 | $170.60 | $138.50 |
Schedule_of_Net_Amount_of_Risk
Schedule of Net Amount of Risk by Product and Guarantee (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $2,436.50 | $2,807.70 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk, Before Reinsurance | 118.6 | 124.9 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 19.8 | 16.9 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age (years) | 65 years | 64 years |
Net Amount at Risk by Product and Guarantee, Separate Account Value | 378.6 | 403.3 |
Net Amount at Risk by Product and Guarantee, Separate Account Value in Event of Death | 2,057.90 | 2,404.40 |
Separate account liabilities without GMDB | 962.8 | 997.9 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk in Event of Death | 3,020.70 | 3,402.30 |
Net Amount at Risk by Product and Guarantee, Separate Account Value at Annuitization | 319.6 | 398.6 |
GMDB return of premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 661.5 | 770.3 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk, Before Reinsurance | 1.6 | 2.1 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 1.6 | 2.1 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age (years) | 63 years | 63 years |
GMDB step up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 1,723.20 | 1,974.70 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk, Before Reinsurance | 112.2 | 117.9 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 13.4 | 9.9 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age (years) | 64 years | 64 years |
GMDB earnings enhancement benefit (“EEBâ€) | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 29.1 | 36 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk, Before Reinsurance | 0 | 0.1 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 0 | 0.1 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age (years) | 65 years | 64 years |
GMDB greater of annual step up and roll up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 22.7 | 26.7 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk, Before Reinsurance | 4.8 | 4.8 |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $4.80 | $4.80 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age (years) | 69 years | 68 years |
Separate_Accounts_Death_Benefi5
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Changes in Additional Liability Balances (Details) (Universal Life, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Universal Life | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Balance, beginning of period | $249.10 | $311.70 | $209.80 |
Incurred | 106.4 | 66.2 | 44 |
Change due to net unrealized gains or losses included in AOCI | 9 | 1.1 | 16.8 |
Assumption unlocking | -13 | -129.9 | 41.1 |
Balance, end of period | $351.50 | $249.10 | $311.70 |
Separate_Accounts_Death_Benefi6
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Non-Insurance Guaranteed Product Features (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $819.50 | $970.90 |
Average Attained Age of Annuitant (years) | 65 years | 64 years |
GMWB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 496.8 | 581.5 |
Average Attained Age of Annuitant (years) | 65 years | 64 years |
GMAB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 315.6 | 382.2 |
Average Attained Age of Annuitant (years) | 59 years | 59 years |
COMBO | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $7.10 | $7.20 |
Average Attained Age of Annuitant (years) | 65 years | 63 years |
Separate_Accounts_Death_Benefi7
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Variable Annuity Embedded Derivative Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives [Abstract] | ||
GMWB | $7.30 | ($5.10) |
GMAB | -0.3 | 1.4 |
COMBO | -0.2 | -0.4 |
Total variable annuity embedded derivative liabilities | $6.80 | ($4.10) |
Derivative_Instruments_Narrati
Derivative Instruments Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Margin deposit assets | $18.60 | $28.20 |
Derivative_Instruments_Schedul
Derivative Instruments Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional Amount | $3,617.70 | $6,320.10 |
Assets | 161.3 | 228.8 |
Liabilities | 85.6 | 116.8 |
Derivative liabilities contingent receivable | 1.5 | 1.9 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 114 | 139 |
Assets | 9.7 | 3.9 |
Liabilities | 1.9 | 6.8 |
Variance swaps | ||
Derivative [Line Items] | ||
Notional Amount | 0.9 | 0.9 |
Assets | 0 | 0 |
Liabilities | 8.6 | 7.9 |
Swaptions | ||
Derivative [Line Items] | ||
Notional Amount | 777 | 3,902 |
Assets | 0.1 | 30.7 |
Liabilities | 0 | 0 |
Put options | ||
Derivative [Line Items] | ||
Notional Amount | 692.5 | 406 |
Assets | 31.1 | 31.1 |
Liabilities | 0 | 0 |
Call options | ||
Derivative [Line Items] | ||
Notional Amount | 2,019.20 | 1,701.60 |
Assets | 119.8 | 163.1 |
Liabilities | 74.6 | 96.1 |
Cross currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 10 | 10 |
Assets | 0.6 | 0 |
Liabilities | 0 | 0.7 |
Equity futures | ||
Derivative [Line Items] | ||
Notional Amount | 4.1 | 160.6 |
Assets | 0 | 0 |
Liabilities | $0.50 | $5.30 |
Derivative_Instruments_Schedul1
Derivative Instruments Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | ($66.70) | ($15.50) | ($45.50) |
Interest rate swaps | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | 11 | -11.4 | -0.9 |
Variance swaps | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | -0.7 | -3.6 | -7.9 |
Swaptions | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | -30.6 | 17.3 | -0.2 |
Put options | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | -4.8 | -42.3 | -22 |
Call options | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | 18.5 | 59.3 | 0.1 |
Cross currency swaps | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | 1.3 | -0.5 | -0.1 |
Equity futures | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | -15.5 | -46.5 | -19.4 |
Embedded derivatives | |||
Derivative [Line Items] | |||
Total derivative instrument gains (losses) recognized in realized investment gains (losses) | ($45.90) | $12.20 | $4.90 |
Derivative_Instruments_Offsett
Derivative Instruments Offsetting Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Assets [Abstract] | ||
Gross amounts recognized | $161.30 | $228.80 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amount presented in the balance sheet | 161.3 | 228.8 |
Derivative, collateral, obligation to return securities | -82.5 | -110.3 |
Gross amounts not offset in the balance sheet, Cash collateral received/pledged | 15.5 | 21.7 |
Net amount | 78.8 | 118.5 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts recognized | -85.6 | -116.8 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | -85.6 | -116.8 |
Derivative, collateral, right to reclaim securities | 82.5 | 110.3 |
Derivative, collateral, right to reclaim cash | 3.1 | 6.5 |
Net amount | $0 | $0 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments Fair Value Measurements, Nonrecurring (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | $12,679.30 | $12,587.50 | $12,370.50 | $11,920.70 | $11,731.50 | $11,649.80 | $11,654.80 | $11,816.60 |
Separate account assets | 3,020.70 | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 |
U.S. government and agency | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 443.4 | 403.8 | ||||||
State and political subdivision | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 557.9 | 410.5 | ||||||
Foreign government | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 230.9 | 209.9 | ||||||
Corporate | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 8,398.10 | 7,553.40 | ||||||
Commercial mortgage-backed (“CMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 651.2 | 713.8 | ||||||
Residential mortgage-backed (“RMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 1,932.20 | 1,897.60 | ||||||
Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 196.9 | 224.1 | ||||||
Other asset-backed (“ABSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 268.7 | 318.4 | ||||||
Fair Value, Measurements, Nonrecurring | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 12,679.30 | 11,731.50 | ||||||
Available-for-sale equity securities | 179.5 | 138 | ||||||
Short-term investments | 149.7 | 361.6 | ||||||
Derivative assets | 161.3 | 228.8 | ||||||
Fair value investments | 235.4 | 215.2 | ||||||
Separate account assets | 3,020.70 | 3,402.30 | ||||||
Total assets | 16,425.90 | 16,077.40 | ||||||
Liabilities and Stockholders’ Equity | ||||||||
Derivative liabilities | 85.6 | 116.8 | ||||||
Embedded derivatives | 160.7 | 87.8 | ||||||
Total liabilities | 246.3 | 204.6 | ||||||
Debt securities | 111.9 | 125.7 | ||||||
Deferred compensation liabilities | 23.5 | 23.2 | ||||||
Fair Value, Measurements, Nonrecurring | Consolidated Variable Interest Entity | ||||||||
Equity securities, available-for-sale | ||||||||
Fair value investments | 100 | 66.2 | ||||||
Fair Value, Measurements, Nonrecurring | U.S. government and agency | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 443.4 | 403.8 | ||||||
Fair Value, Measurements, Nonrecurring | State and political subdivision | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 557.9 | 410.5 | ||||||
Fair Value, Measurements, Nonrecurring | Foreign government | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 230.9 | 209.9 | ||||||
Fair Value, Measurements, Nonrecurring | Corporate | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 8,398.10 | 7,553.40 | ||||||
Fair Value, Measurements, Nonrecurring | Commercial mortgage-backed (“CMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 651.2 | 713.8 | ||||||
Fair Value, Measurements, Nonrecurring | Residential mortgage-backed (“RMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 1,932.20 | 1,897.60 | ||||||
Fair Value, Measurements, Nonrecurring | Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 196.9 | 224.1 | ||||||
Fair Value, Measurements, Nonrecurring | Other asset-backed (“ABSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 268.7 | 318.4 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Available-for-sale equity securities | 0 | 2.8 | ||||||
Short-term investments | 149.7 | 349.7 | ||||||
Derivative assets | 0 | 0 | ||||||
Fair value investments | 32.4 | 32.1 | ||||||
Separate account assets | 3,020.70 | 3,402.30 | ||||||
Total assets | 3,202.80 | 3,786.90 | ||||||
Liabilities and Stockholders’ Equity | ||||||||
Derivative liabilities | 0.5 | 5.3 | ||||||
Embedded derivatives | 0 | 0 | ||||||
Total liabilities | 0.5 | 5.3 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | Consolidated Variable Interest Entity | ||||||||
Equity securities, available-for-sale | ||||||||
Fair value investments | 8.8 | 8.9 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | U.S. government and agency | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | State and political subdivision | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | Foreign government | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | Corporate | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | Commercial mortgage-backed (“CMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | Residential mortgage-backed (“RMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 1 | Other asset-backed (“ABSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 6,394.30 | 6,087.30 | ||||||
Available-for-sale equity securities | 0 | 0 | ||||||
Short-term investments | 0 | 11 | ||||||
Derivative assets | 161.3 | 228.8 | ||||||
Fair value investments | 13 | 13.2 | ||||||
Separate account assets | 0 | 0 | ||||||
Total assets | 6,568.60 | 6,340.30 | ||||||
Liabilities and Stockholders’ Equity | ||||||||
Derivative liabilities | 85.1 | 111.5 | ||||||
Embedded derivatives | 0 | 0 | ||||||
Total liabilities | 85.1 | 111.5 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | U.S. government and agency | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 81.2 | 76.6 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | State and political subdivision | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 157.7 | 141.4 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | Foreign government | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 177.3 | 194 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | Corporate | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 3,994.20 | 3,659.60 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | Commercial mortgage-backed (“CMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 498.4 | 600.1 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | Residential mortgage-backed (“RMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 1,461.90 | 1,344.90 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring | Level 2 | Other asset-backed (“ABSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 23.6 | 70.7 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 6,285 | 5,644.20 | ||||||
Available-for-sale equity securities | 179.5 | 135.2 | ||||||
Short-term investments | 0 | 0.9 | ||||||
Derivative assets | 0 | 0 | ||||||
Fair value investments | 190 | 169.9 | ||||||
Separate account assets | 0 | 0 | ||||||
Total assets | 6,654.50 | 5,950.20 | ||||||
Liabilities and Stockholders’ Equity | ||||||||
Derivative liabilities | 0 | 0 | ||||||
Embedded derivatives | 160.7 | 87.8 | ||||||
Total liabilities | 160.7 | 87.8 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | U.S. government and agency | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 362.2 | 327.2 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | State and political subdivision | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 400.2 | 269.1 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | Foreign government | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 53.6 | 15.9 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | Corporate | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 4,403.90 | 3,893.80 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | Commercial mortgage-backed (“CMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 152.8 | 113.7 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | Residential mortgage-backed (“RMBSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 470.3 | 552.7 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | 196.9 | 224.1 | ||||||
Fair Value, Measurements, Nonrecurring | Level 3 | Other asset-backed (“ABSâ€) | ||||||||
Equity securities, available-for-sale | ||||||||
Available for sale securities, fair value | $245.10 | $247.70 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments Beginning of FN through level 3 financial assets Narrative (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | $12,679.30 | $12,587.50 | $12,370.50 | $11,920.70 | $11,731.50 | $11,649.80 | $11,654.80 | $11,816.60 |
Discontinued Operations | Level 2 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | $27.80 | $29.60 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments Fair Value, Assets Measured on Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Values of Corporates by Level and Sector: | ||
Consumer | $1,859.60 | $2,351.20 |
Energy | 1,007.40 | 909.7 |
Financial services | 2,585.20 | 2,377.80 |
Technical/communications | 782.9 | 388.2 |
Transportation | 410.5 | 321.2 |
Utilities | 1,031.50 | 877.6 |
Other | 721 | 327.7 |
Total corporates | 8,398.10 | 7,553.40 |
Level 1 | ||
Fair Values of Corporates by Level and Sector: | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial services | 0 | 0 |
Technical/communications | 0 | 0 |
Transportation | 0 | 0 |
Utilities | 0 | 0 |
Other | 0 | 0 |
Total corporates | 0 | 0 |
Level 2 | ||
Fair Values of Corporates by Level and Sector: | ||
Consumer | 593 | 896 |
Energy | 534.6 | 492.2 |
Financial services | 1,617.30 | 1,497 |
Technical/communications | 398.1 | 187.6 |
Transportation | 104.7 | 93.6 |
Utilities | 348.1 | 316 |
Other | 398.4 | 177.2 |
Total corporates | 3,994.20 | 3,659.60 |
Level 3 | ||
Fair Values of Corporates by Level and Sector: | ||
Consumer | 1,266.60 | 1,455.20 |
Energy | 472.8 | 417.5 |
Financial services | 967.9 | 880.8 |
Technical/communications | 384.8 | 200.6 |
Transportation | 305.8 | 227.6 |
Utilities | 683.4 | 561.6 |
Other | 322.6 | 150.5 |
Total corporates | $4,403.90 | $3,893.80 |
Schedule_of_Level_3_Financial_
Schedule of Level 3 Financial Assets (Details) (Level 3, Fair Value, Measurements, Nonrecurring, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
U.S. government and agency | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | $327.20 | $296.70 |
Purchases | 40 | 88.4 |
Sales | -26.7 | -40.4 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized and unrealized gains (losses) included in income | 0 | 0 |
Unrealized gains (losses) included in OCI | 21.7 | -17.5 |
Total | 362.2 | 327.2 |
State and political subdivision | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 269.1 | 212.4 |
Purchases | 106.5 | 96.6 |
Sales | -6.5 | -4.1 |
Transfers into Level 3 | 11.3 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized and unrealized gains (losses) included in income | 0 | 0 |
Unrealized gains (losses) included in OCI | 19.8 | -35.8 |
Total | 400.2 | 269.1 |
Foreign government | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 15.9 | 45.8 |
Purchases | 7.4 | 0 |
Sales | 0 | -6 |
Transfers into Level 3 | 28.5 | 8 |
Transfers out of Level 3 | 0 | -31.3 |
Realized and unrealized gains (losses) included in income | 0 | 0 |
Unrealized gains (losses) included in OCI | 1.8 | -0.6 |
Total | 53.6 | 15.9 |
Corporate | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 3,893.80 | 3,759.20 |
Purchases | 710.9 | 789.4 |
Sales | -428.9 | -435.5 |
Transfers into Level 3 | 244 | 65.6 |
Transfers out of Level 3 | -97.9 | -41.3 |
Realized and unrealized gains (losses) included in income | 4.6 | 4.8 |
Unrealized gains (losses) included in OCI | 77.4 | -248.4 |
Total | 4,403.90 | 3,893.80 |
CMBS | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 113.7 | 89.7 |
Purchases | 25.1 | 42.5 |
Sales | -36.6 | -11.5 |
Transfers into Level 3 | 71.1 | 8.9 |
Transfers out of Level 3 | -30.4 | -12.8 |
Realized and unrealized gains (losses) included in income | 1.4 | -2.1 |
Unrealized gains (losses) included in OCI | 8.5 | -1 |
Total | 152.8 | 113.7 |
RMBS | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 552.7 | 711.2 |
Purchases | 3.1 | 2.2 |
Sales | -75.5 | -120.6 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | -4.3 | 0 |
Realized and unrealized gains (losses) included in income | 3.1 | -4.7 |
Unrealized gains (losses) included in OCI | -8.8 | -35.4 |
Total | 470.3 | 552.7 |
Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 224.1 | 223.7 |
Purchases | 41.4 | 68.4 |
Sales | -61.6 | -64.7 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized and unrealized gains (losses) included in income | 2.7 | 0.4 |
Unrealized gains (losses) included in OCI | -9.7 | -3.7 |
Total | 196.9 | 224.1 |
Other asset-backed (“ABSâ€) | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 247.7 | 309.9 |
Purchases | 26.1 | 19.6 |
Sales | -40 | -58.7 |
Transfers into Level 3 | 17.6 | 0 |
Transfers out of Level 3 | 0 | -1.3 |
Realized and unrealized gains (losses) included in income | 1.7 | 0.3 |
Unrealized gains (losses) included in OCI | -8 | -22.1 |
Total | 245.1 | 247.7 |
Total available-for-sale debt securities | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 5,644.20 | 5,648.60 |
Purchases | 960.5 | 1,107.10 |
Sales | -675.8 | -741.5 |
Transfers into Level 3 | 372.5 | 82.5 |
Transfers out of Level 3 | -132.6 | -86.7 |
Realized and unrealized gains (losses) included in income | 13.5 | -1.3 |
Unrealized gains (losses) included in OCI | 102.7 | -364.5 |
Total | 6,285 | 5,644.20 |
Available-for-sale equity securities | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 135.2 | 86.8 |
Purchases | 65 | 50.5 |
Sales | -21.2 | -11.1 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized and unrealized gains (losses) included in income | 3.7 | -3.5 |
Unrealized gains (losses) included in OCI | -3.2 | 12.5 |
Total | 179.5 | 135.2 |
Short-term investments | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 0.9 | 0 |
Purchases | 0 | 1.3 |
Sales | -0.5 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized and unrealized gains (losses) included in income | -0.4 | -0.4 |
Unrealized gains (losses) included in OCI | 0 | |
Total | 0 | 0.9 |
Fair value investments | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 169.9 | 153.3 |
Purchases | 14.4 | 25.8 |
Sales | -22.2 | -23.3 |
Transfers into Level 3 | 0 | 1.3 |
Transfers out of Level 3 | 0 | 0 |
Realized and unrealized gains (losses) included in income | 27.9 | 12.8 |
Unrealized gains (losses) included in OCI | 0 | 0 |
Total | 190 | 169.9 |
Total assets | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 5,950.20 | 5,888.70 |
Purchases | 1,039.90 | 1,184.70 |
Sales | -719.7 | -775.9 |
Transfers into Level 3 | 372.5 | 83.8 |
Transfers out of Level 3 | -132.6 | -86.7 |
Realized and unrealized gains (losses) included in income | 44.7 | 7.6 |
Unrealized gains (losses) included in OCI | 99.5 | -352 |
Total | $6,654.50 | $5,950.20 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments Schedule of Level 3 Financial Liabilities - Embedded Derivatives (Details) (Fair Value, Measurements, Nonrecurring, Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Level 3 Financial Liabilities: | ||
Balance, beginning of period | $87.80 | $88.10 |
Net purchases/(sales) | 27.1 | 11.9 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized (gains) losses | 45.8 | -12.2 |
Balance, end of period | $160.70 | $87.80 |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments Schedule of Quantitative Estimates - Level 3 Assets (Details) (Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
US Treasury and Government | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
U.S. government and agency | 362.2 | 327.2 |
State and political subdivision | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
State and political subdivision | 159.1 | 119.4 |
Corporate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Corporate | 3,116.60 | 2,974.10 |
Other asset-backed (“ABSâ€) | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other ABS | 39.3 | 47.9 |
Fair value investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value investments | 6.3 | 5.5 |
Discounted cash flow | Other asset-backed (“ABSâ€) | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Prepayment rate | 2.00% | |
Default rate | 2.53% | |
Default rate term 2 | 0.37% | |
Recovery rate | 10.00% | |
Discounted cash flow | Fair value investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Default rate | 0.17% | 0.25% |
Recovery rate | 44.00% | 45.00% |
Discounted cash flow | Minimum | US Treasury and Government | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 0.99% | 1.05% |
Discounted cash flow | Minimum | State and political subdivision | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 2.15% | 2.35% |
Discounted cash flow | Minimum | Corporate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 0.93% | 1.00% |
Discounted cash flow | Minimum | Other asset-backed (“ABSâ€) | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 0.60% | 0.50% |
Discounted cash flow | Maximum | US Treasury and Government | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 4.27% | 5.66% |
Discounted cash flow | Maximum | State and political subdivision | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 4.50% | 5.79% |
Discounted cash flow | Maximum | Corporate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 6.88% | 6.75% |
Discounted cash flow | Maximum | Other asset-backed (“ABSâ€) | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 4.00% | 3.75% |
Discounted cash flow | Weighted Average | US Treasury and Government | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 3.17% | 3.78% |
Discounted cash flow | Weighted Average | State and political subdivision | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 3.22% | 3.74% |
Discounted cash flow | Weighted Average | Corporate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 3.24% | 3.56% |
Discounted cash flow | Weighted Average | Other asset-backed (“ABSâ€) | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 1.92% | 2.23% |
Fair_Value_of_Financial_Instru7
Fair Value of Financial Instruments Schedule of Quantitative Estimates - Level 3 Liabilities (Details) (Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
EIA/VED | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivatives | $153.90 | $91.90 |
CSA | 3.08% | 3.23% |
EIA/VED | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 0.24% | 0.19% |
Mortality rate | 97.00% | 97.00% |
Lapse rate | 0.04% | 0.02% |
EIA/VED | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 2.55% | 3.79% |
Mortality rate | 105.00% | 103.00% |
Lapse rate | 46.44% | 47.15% |
GMAB/GMWB/COMBO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivatives | $6.80 | ($4.10) |
Mortality rate | 105.00% | 105.00% |
CSA | 3.08% | 3.23% |
GMAB/GMWB/COMBO | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 0.21% | 0.15% |
Volatility surface | 9.89% | 10.85% |
Lapse rate | 0.00% | 0.00% |
GMAB/GMWB/COMBO | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 2.76% | 4.15% |
Volatility surface | 67.34% | 46.33% |
Lapse rate | 40.00% | 40.00% |
Schdeule_of_Level_3_Assets_and
Schdeule of Level 3 Assets and Liabilities by Pricing Source (Details) (Level 3, Fair Value, Measurements, Nonrecurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Embedded derivatives | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total liabilities Internal | $160.70 | $87.80 | |
Total liabilities External | 0 | 0 | |
Total liabilities | 160.7 | 87.8 | |
Total liabilities | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total liabilities Internal | 160.7 | 87.8 | |
Total liabilities External | 0 | 0 | |
Total liabilities | 160.7 | 87.8 | |
U.S. government and agency | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 362.2 | 327.2 | |
Total assets External | 0 | 0 | |
Total assets | 362.2 | 327.2 | 296.7 |
State and political subdivision | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 159.1 | 119.4 | |
Total assets External | 241.1 | 149.7 | |
Total assets | 400.2 | 269.1 | 212.4 |
Foreign government | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 0 | 0 | |
Total assets External | 53.6 | 15.9 | |
Total assets | 53.6 | 15.9 | 45.8 |
Corporate | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 3,116.60 | 2,974.10 | |
Total assets External | 1,287.30 | 919.7 | |
Total assets | 4,403.90 | 3,893.80 | 3,759.20 |
Commercial mortgage-backed (“CMBSâ€) | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 0 | 0 | |
Total assets External | 152.8 | 113.7 | |
Total assets | 152.8 | 113.7 | 89.7 |
Residential mortgage-backed (“RMBSâ€) | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 0 | 0 | |
Total assets External | 470.3 | 552.7 | |
Total assets | 470.3 | 552.7 | 711.2 |
Collateralized debt obligation (“CDOâ€) / collateralized loan obligation (“CLOâ€) | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 0 | 0 | |
Total assets External | 196.9 | 224.1 | |
Total assets | 196.9 | 224.1 | 223.7 |
Other asset-backed (“ABSâ€) | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 39.3 | 47.9 | |
Total assets External | 205.8 | 199.8 | |
Total assets | 245.1 | 247.7 | 309.9 |
Total available-for-sale debt securities | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 3,677.20 | 3,468.60 | |
Total assets External | 2,607.80 | 2,175.60 | |
Total assets | 6,285 | 5,644.20 | 5,648.60 |
Available-for-sale equity securities | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 0 | 0 | |
Total assets External | 179.5 | 135.2 | |
Total assets | 179.5 | 135.2 | 86.8 |
Short-term investments | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 0 | 0 | |
Total assets External | 0 | 0.9 | |
Total assets | 0 | 0.9 | 0 |
Fair value investments | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 6.3 | 5.5 | |
Total assets External | 183.7 | 164.4 | |
Total assets | 190 | 169.9 | 153.3 |
Total assets | |||
Level 3 Assets and Liabilities by Pricing Source: | |||
Total assets Internal | 3,683.50 | 3,474.10 | |
Total assets External | 2,971 | 2,476.10 | |
Total assets | $6,654.50 | $5,950.20 | $5,888.70 |
Schedule_of_Carrying_Amounts_a
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Level 3 | Policy loans | ||
Carrying Amounts and Fair Values of Financial Instruments: | ||
Carrying Value | $2,352.10 | $2,350.30 |
Fair Value | 2,339.20 | 2,338 |
Level 3 | Life settlements | ||
Carrying Amounts and Fair Values of Financial Instruments: | ||
Carrying Value | 22.4 | 21.6 |
Fair Value | 17.4 | 16.7 |
Level 3 | Investment contracts | ||
Carrying Amounts and Fair Values of Financial Instruments: | ||
Carrying Value | 3,955 | 3,442.60 |
Fair Value | 3,957.30 | 3,437.30 |
Level 3 | Surplus notes | ||
Carrying Amounts and Fair Values of Financial Instruments: | ||
Carrying Value | 126.2 | 126.1 |
Fair Value | 95.8 | 86.5 |
Level 1 | Cash and cash equivalents | ||
Carrying Amounts and Fair Values of Financial Instruments: | ||
Carrying Value | 450 | 496.4 |
Fair Value | 450 | 496.4 |
Level 2 | Senior unsecured bonds | ||
Carrying Amounts and Fair Values of Financial Instruments: | ||
Carrying Value | 252.7 | 252.7 |
Fair Value | $248 | $224.60 |
Income_Taxes_Significant_Compo
Income Taxes Significant Components of Income Taxes from Continuing Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||||||||||||||
U.S. | $10.50 | $8.50 | $15.80 | ||||||||||||
Foreign | 0 | 0 | 0 | ||||||||||||
Deferred | |||||||||||||||
U.S. | 0 | 0 | -20.5 | ||||||||||||
Foreign | 0 | 0 | 0 | ||||||||||||
Total income tax expense (benefit) | $32.30 | $2.60 | ($19.60) | ($4.80) | ($3.20) | $8.70 | ($1.20) | $4.20 | ($24.40) | $3 | ($21.80) | $11.70 | $10.50 | $8.50 | ($4.70) |
Income_Taxes_Reconciliation_of
Income Taxes Reconciliation of Effective Income Tax Rate (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (loss) from continuing operations before income taxes: | |||||||||||||||
U.S. | ($195.20) | $38.10 | ($153.50) | ||||||||||||
Foreign | 0 | 0 | 0 | ||||||||||||
Income (loss) from continuing operations before income taxes | -19.6 | -41.4 | -32.4 | -9.1 | -29.9 | -65 | -73.8 | -94.9 | -93.4 | -104 | -195.2 | 38.1 | -153.5 | ||
Income tax expense (benefit) at statutory rate of 35% | -68.3 | 13.3 | -53.7 | ||||||||||||
Dividend received deduction | -3 | -2.3 | -2.5 | ||||||||||||
Expiration of tax attribute carryovers | 7.4 | 4.5 | 5.6 | ||||||||||||
Impact of deferred tax validation | 0.5 | 0 | 0 | ||||||||||||
Noncontrolling interest | -1.4 | -0.2 | 0 | ||||||||||||
Valuation allowance increase (release) | 79.3 | -4.1 | 46.6 | ||||||||||||
State income taxes (benefit) | -4.3 | -2.8 | 0 | ||||||||||||
Other, net | 0.3 | 0.1 | -0.7 | ||||||||||||
Total income tax expense (benefit) | $32.30 | $2.60 | ($19.60) | ($4.80) | ($3.20) | $8.70 | ($1.20) | $4.20 | ($24.40) | $3 | ($21.80) | $11.70 | $10.50 | $8.50 | ($4.70) |
Effective income tax rates | -5.40% | 22.30% | 3.10% | ||||||||||||
Statutory rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Allocation_of_Inc
Income Taxes Allocation of Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||||||
Income tax expense (benefit) from continuing operations | $32.30 | $2.60 | ($19.60) | ($4.80) | ($3.20) | $8.70 | ($1.20) | $4.20 | ($24.40) | $3 | ($21.80) | $11.70 | $10.50 | $8.50 | ($4.70) |
Income tax from OCI: | |||||||||||||||
Unrealized investment (gains) losses | 35.7 | -20.5 | 92 | ||||||||||||
Pension | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Policy dividend obligation and DAC | 0 | 0 | 0 | ||||||||||||
Other | 0 | 0 | 0 | ||||||||||||
Income tax related to cumulative effect of change in accounting guidance | 0 | 0 | 0 | ||||||||||||
Income tax benefit from discontinued operations | -0.4 | -0.3 | -1.5 | ||||||||||||
Total income tax recorded to all components of income | $45.80 | ($12.30) | $85.80 |
Income_Taxes_Deferred_Income_T
Income Taxes Deferred Income Tax Balances Attributable to Temporary Differences (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred income tax assets | ||
Future policyholder benefits | $783.90 | $526.70 |
Unearned premiums / deferred revenues | 8.1 | 50.4 |
Employee benefits | 124.4 | 97.2 |
Net operating and capital loss carryover benefits | 198.5 | 157.9 |
Foreign tax credits carryover benefits | 2.3 | 2.2 |
Alternative minimum tax credits | 12.9 | 12.9 |
General business tax credits | 17.7 | 23.7 |
Other | 32.8 | 31.9 |
Available-for-sale debt securities | 34.2 | 70 |
Subtotal | 1,214.80 | 972.9 |
Valuation allowance | -613 | -492.4 |
Total deferred income tax assets, net of valuation allowance | 601.8 | 480.5 |
Deferred tax liabilities | ||
DAC | 188.1 | 215.2 |
Investments | 241.7 | 147.8 |
Accrued liabilities | 137.8 | 47.5 |
Gross deferred income tax liabilities | 567.6 | 410.5 |
Net deferred income tax assets | $34.20 | $70 |
Income_Taxes_Narrative_Details
Income Taxes Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||||||||||||||
Income (loss) from continuing operations before income taxes | ($19.60) | ($41.40) | ($32.40) | ($9.10) | ($29.90) | ($65) | ($73.80) | ($94.90) | ($93.40) | ($104) | ($195.20) | $38.10 | ($153.50) | ||
Deferred tax assets, valuation allowance | 613 | 492.4 | 613 | 492.4 | |||||||||||
Deferred income taxes, net | 647.2 | 647.2 | |||||||||||||
Deferred tax asset attributable to losses on available-for-sale securities | 34.2 | 34.2 | |||||||||||||
Impact of the valuation allowance on continuing operations | 79.3 | ||||||||||||||
Impact of the valuation allowance on OCI-related deferred tax balances | 40.6 | 40.6 | |||||||||||||
Impact of the valuation allowance to discontinued operations | 0.7 | ||||||||||||||
Income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Net operating and capital loss carryover benefits | 198.5 | 157.9 | 198.5 | 157.9 | |||||||||||
General business tax credits | 17.7 | 23.7 | 17.7 | 23.7 | |||||||||||
Tax credit carryforwards on DTA related to alternative minimum tax | 12.9 | 12.9 | |||||||||||||
Amount of funds in intercompany tax escrow | 78.9 | ||||||||||||||
Internal Revenue Service (IRS) | |||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||
Operating loss carryforwards related to DTA that are subject to expiration | 182.6 | 182.6 | |||||||||||||
Operating loss carryforwards | 521.7 | 521.7 | |||||||||||||
State and Local Jurisdiction | |||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||
Net operating and capital loss carryover benefits | 15.9 | 15.9 | |||||||||||||
Parent Company | |||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||
Income tax expense (benefit) | -3.7 | -68.7 | -12 | ||||||||||||
Increase in restricted cash | $10.80 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning balance | ($185) | ($243.80) | ($179.30) | ($172.10) | ($192.30) | ($255.40) | ($271.10) | ($258) |
Change in component during the period before reclassifications | -37.4 | 72.7 | ||||||
Amounts reclassified from AOCI | -12 | -13.9 | ||||||
Ending balance | -234.4 | -185 | -179.3 | -172.1 | -192.3 | -255.4 | -271.1 | -258 |
Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning balance | 7 | -6.2 | ||||||
Change in component during the period before reclassifications | 9.5 | 9.7 | ||||||
Ending balance | 9.9 | 7 | ||||||
Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: | Amounts Reclassified from AOCI | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from AOCI | -6.6 | 3.5 | ||||||
Net unrealized gains / (losses) on all other investments: | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning balance | 26.9 | 82.3 | ||||||
Change in component during the period before reclassifications | 37.9 | -31.3 | ||||||
Ending balance | 54.8 | 26.9 | ||||||
Net unrealized gains / (losses) on all other investments: | Amounts Reclassified from AOCI | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from AOCI | -10 | -24.1 | ||||||
Net Pension Liability Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning balance | -218.9 | -319.9 | ||||||
Change in component during the period before reclassifications | -84.8 | 94.3 | ||||||
Ending balance | -299.1 | -218.9 | ||||||
Net Pension Liability Adjustments | Amounts Reclassified from AOCI | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Amounts reclassified from AOCI | $4.60 | $6.70 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Net realized capital gains (losses) | ($3.80) | $4.20 | ($26.90) | $5.60 | $5.30 | ($14.60) | ($22.70) | ($9.30) | ($26.50) | ($3.70) | ($41.20) | $16 | ($16.80) | ||
Income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 |
Amounts Reclassified from AOCI | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Net income (loss) | 12 | 13.9 | 8.6 | ||||||||||||
Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: | Amounts Reclassified from AOCI | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Net realized capital gains (losses) | 10.1 | -5.3 | -16.7 | ||||||||||||
Total before income taxes | 10.1 | -5.3 | -16.7 | ||||||||||||
Income tax expense (benefit) | 3.5 | -1.8 | -5.9 | ||||||||||||
Net income (loss) | 6.6 | -3.5 | -10.8 | ||||||||||||
Net unrealized gains / (losses) on all other investments: | Amounts Reclassified from AOCI | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Net realized capital gains (losses) | 15.3 | 37 | 38.4 | ||||||||||||
Total before income taxes | 15.3 | 37 | 38.4 | ||||||||||||
Income tax expense (benefit) | 5.3 | 12.9 | 13.5 | ||||||||||||
Net income (loss) | 10 | 24.1 | 24.9 | ||||||||||||
Net Pension Liability Adjustments | Amounts Reclassified from AOCI | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Total before income taxes | -7.1 | -10.3 | -8.5 | ||||||||||||
Income tax expense (benefit) | -2.5 | -3.6 | -3 | ||||||||||||
Amortization of actuarial gains (losses) | -8.2 | -11.5 | -10.1 | ||||||||||||
Amortization of prior service costs | 1.1 | 1.2 | 1.6 | ||||||||||||
Net income (loss) | ($4.60) | ($6.70) | ($5.50) |
ShareBased_Payments_Expense_De
Share-Based Payments - Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Compensation cost charged to income from continuing operations | $3 | $4.60 | $2.60 |
Income tax expense (benefit) before valuation allowance | ($1) | ($1.60) | ($0.90) |
ShareBased_Payments_Narrative_
Share-Based Payments - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2001 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 0 | 0 | 2,053 | |
Options exercised (shares) | 1,472 | 0 | 250 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Number of common stock entitled to upon vesting | 1 | |||
Cash Settled Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Liability for awards that are intended to be settled in cash | 1,400,000 | 4,700,000 | ||
Cash payments made related to settle awards | 4,700,000 | 0 | ||
Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of common stock authorized | 5.00% | |||
Number of shares authorized (shares) | 262,500 | |||
Percent of additional common stock authorized | 1.00% | |||
Number of additional shares authorized (shares) | 52,500 | |||
Directors' Stock Plan | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of common stock authorized | 0.50% | |||
Number of shares authorized (shares) | 51,250 | 26,250 | ||
Number of additional shares authorized (shares) | 25,000 |
ShareBased_Payments_Stock_Opti
Share-Based Payments - Stock Options Assumptions (Details) (Employee Stock Option) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 10 years | |
Weighted-average expected volatility | 37.70% | |
Weighted-average interest rate | 1.90% | |
Weighted-average common share dividend yield | 0.00% |
ShareBased_Payments_Stock_Opti1
Share-Based Payments - Stock Options Activity (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Aug. 10, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common shares (in shares): | ||||
Outstanding, beginning of period (shares) | 77,069 | |||
Granted (shares) | 0 | 0 | 2,053 | |
Exercised (shares) | -1,472 | 0 | -250 | |
Forfeited (shares) | -24,702 | |||
Canceled/expired (shares) | -528 | |||
Outstanding, end of period (shares) | 50,367 | 77,069 | ||
Vested and exercisable, end of period (shares) | 50,367 | |||
Weighted-Average Exercise Price (in dollars per share): | ||||
Outstanding, beginning of period (USD per share) | $186.95 | |||
Granted (USD per share) | $0 | |||
Exercised (USD per share) | $30.46 | |||
Forfeited (USD per share) | $198.75 | |||
Canceled/expired (USD per share) | $30.46 | |||
Outstanding, end of period (USD per share) | $187.38 | $186.95 | ||
Vested and exercisable, end of period (USD per share) | $187.38 | |||
Weighted-average remaining contractual term, outstanding, end of period | 2 years 6 months 7 days | 1 year 1 month 4 days | ||
Weighted-average remaining contractual term, vested and exercisable, end of period | 2 years 6 months 7 days | |||
Aggregate Intrinsic value, Outstanding, end of period | $0.10 | $0.40 | ||
Aggregate Intrinsic value, Vested and Exercisable, end of period | $0.10 | |||
Reverse stock split ratio | 0.05 |
ShareBased_Payments_Stock_Opti2
Share-Based Payments - Stock Options Weighted-Average Grant Date Fair Value (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Aug. 10, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Options granted, common shares (shares) | 0 | 0 | 2,053 | |
Options granted, Grant Date Fair Value (in dollars per share) | $0 | $0 | $9.03 | |
Reverse stock split ratio | 0.05 |
ShareBased_Payments_RSUs_Activ
Share-Based Payments - RSUs Activity (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Aug. 10, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-Average Grant Date Fair Value (in dollars per share): | ||||
Reverse stock split ratio | 0.05 | |||
Time-vested RSUs awarded | ||||
Outstanding (in shares): | ||||
Outstanding, beginning of period (shares) | 86,780 | |||
Awarded (shares) | 13,063 | 18,251 | 16,497 | |
Adjustment for performance results (shares) | 0 | |||
Converted to common shares/applied to taxes (shares) | -3,756 | |||
Forfeited (shares) | 0 | |||
Outstanding, end of period (shares) | 96,087 | 86,780 | ||
Weighted-Average Grant Date Fair Value (in dollars per share): | ||||
Outstanding, beginning of period (USD per share) | $47.92 | |||
Awarded (USD per share) | $55.81 | $33.76 | $26.95 | |
Adjustment for performance results (USD per share) | $0 | |||
Converted to common shares/applied to taxes (USD per share) | $41.39 | |||
Forfeited (USD per share) | $0 | |||
Outstanding, end of period (USD per share) | $49.25 | $47.92 | ||
Performance-contingent RSUs awarded | ||||
Outstanding (in shares): | ||||
Outstanding, beginning of period (shares) | 17,024 | |||
Awarded (shares) | 0 | 0 | 0 | |
Adjustment for performance results (shares) | 0 | |||
Converted to common shares/applied to taxes (shares) | -16,072 | |||
Forfeited (shares) | -952 | |||
Outstanding, end of period (shares) | 0 | 17,024 | ||
Weighted-Average Grant Date Fair Value (in dollars per share): | ||||
Outstanding, beginning of period (USD per share) | $55.07 | |||
Awarded (USD per share) | $0 | $0 | $0 | |
Adjustment for performance results (USD per share) | $0 | |||
Converted to common shares/applied to taxes (USD per share) | $55.07 | |||
Forfeited (USD per share) | $55.07 | |||
Outstanding, end of period (USD per share) | $0 | $55.07 |
ShareBased_Payments_ShareBased
Share-Based Payments Share-Based Payments - RSUs Awarded (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Aug. 10, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reverse stock split ratio | 0.05 | |||
Time-vested RSUs awarded | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number (shares) | 13,063 | 18,251 | 16,497 | |
Weighted-Average grant date fair value (USD per share) | $55.81 | $33.76 | $26.95 | |
Performance-contingent RSUs awarded | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number (shares) | 0 | 0 | 0 | |
Weighted-Average grant date fair value (USD per share) | $0 | $0 | $0 |
ShareBased_Payments_ShareBased1
Share-Based Payments Share-Based Payments - RSU Values (Details) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of RSUs converted (USD per share) | $0.20 | $2.30 | $0.10 |
Total grant date fair value of RSUs vested converted to common shares | $0.20 | $3.60 | $0.20 |
Earnings_Per_Share_Schedule_of
Earnings Per Share Schedule of Weighted Average Number of Shares (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||||
Basic weighted-average common shares outstanding (shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,735 | 5,770 |
Weighted-average effect of dilutive potential common shares: | |||||||||||||
Restricted stock units (shares) | 5 | 27 | 75 | ||||||||||
Employee stock options (shares) | 2 | 2 | 1 | ||||||||||
Potential common shares (shares) | 7 | 29 | 76 | ||||||||||
Less: Potential common shares excluded from calculation due to net losses (shares) | -7 | 0 | -76 | ||||||||||
Dilutive potential common shares (shares) | 0 | 29 | 0 | ||||||||||
Diluted weighted-average common shares outstanding (in shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,764 | 5,770 |
Earnings_Per_Share_Schedule_of1
Earnings Per Share Schedule of Weighted Average Number of Shares (Details 2) | 0 Months Ended |
Aug. 10, 2012 | |
Earnings Per Share [Abstract] | |
Reverse stock split ratio | 0.05 |
Earnings_Per_Share_Narrative_D
Earnings Per Share Narrative (Details) | 0 Months Ended | ||||
In Millions, unless otherwise specified | Aug. 10, 2012 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 11, 2012 |
Earnings Per Share [Abstract] | |||||
Reverse stock split ratio | 0.05 | ||||
Common stock outstanding (shares) | 116 | 5.8 | 5.7 | 5.7 | 5.8 |
Segment_Information_Reconcilia
Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $440.40 | $414.40 | $413.10 | $399 | $463.80 | $429.80 | $419.20 | $394.80 | $812.10 | $814 | $1,226.50 | $1,243.80 | $1,666.90 | $1,707.60 | $1,781.20 |
Interest revenue | 0.1 | 0.4 | 0.6 | ||||||||||||
Commission revenue | 11.5 | 9.2 | 11.4 | ||||||||||||
Life and Annuity | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 1,640.80 | 1,689.60 | 1,769.10 | ||||||||||||
Saybrus Partners | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 37.5 | 26.8 | 22.9 | ||||||||||||
Intercompany | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $11.40 | $8.80 | $10.80 |
Reconciliation_of_Operating_Pr
Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting [Abstract] | |||||||||||||||
Life and Annuity operating income (loss) | ($160.20) | $19 | ($151.20) | ||||||||||||
Saybrus Partners operating income (loss) | 6.2 | 3.1 | 2.6 | ||||||||||||
Less: Applicable income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Income (loss) from discontinued operations, net of income taxes | -2 | -0.3 | -0.6 | -0.6 | -1.2 | 0.3 | -0.2 | -1.8 | -1.2 | -2 | -1.5 | -1.7 | -3.5 | -2.9 | -15.6 |
Net realized investment gains (losses) | -41.2 | 16 | -16.8 | ||||||||||||
Gain on debt repurchase | 0 | 0 | 11.9 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | 4.2 | -0.1 | 0 | -0.1 | 1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 |
Net income (loss) attributable to The Phoenix Companies, Inc. | ($140.30) | ($22.40) | ($22.40) | ($28.10) | $143.10 | ($17.40) | ($28.80) | ($70.90) | ($50.50) | ($99.70) | ($72.90) | ($117.10) | ($213.20) | $26 | ($165) |
Employee_Benefit_Plans_and_Emp2
Employee Benefit Plans and Employment Agreements Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of plans | 3 | ||||
Dental trend rate, next fiscal year | 5.00% | ||||
Dental trend rate, ultimate rate | 4.50% | ||||
Pension plan assets long-term rate of return | 7.50% | 7.75% | 8.00% | ||
Employee pension plan asset allocation | 80.00% | ||||
Employer contributions | $11.80 | $11.40 | |||
Expected contributions over next 12 months | 0 | ||||
Age plus years of service threshold | 65 years | ||||
Age threshold for company contribution | 65 years | ||||
Maximum annual contributions per employee, percent | 60.00% | ||||
Employer matching contribution percent of match | 6.00% | ||||
Cost recognized | 4.3 | 4 | 3.4 | ||
Additional benefits due | 18.1 | 16.9 | |||
Supplemental Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of plans | 2 | ||||
Benefit obligation | 153.7 | 153.7 | 137.4 | 150.9 | 141.9 |
Amortization of net prior service credit | 0 | ||||
Other Post-Employment | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit obligation | 33.4 | 33.4 | 36.5 | 40.6 | 59.6 |
Amortization of net prior service credit | $1.40 |
Employee_Benefit_Plans_and_Emp3
Employee Benefit Plans and Employment Agreements Assumptions Related to Pension and Postretirement Employee Benefit Plans (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assumptions Used to Determine Benefit Obligations | |||
Future health care cost increase rate, age 64 and younger | 6.00% | 6.00% | 6.00% |
Assumptions Used to Determine Benefit Expense | |||
Pension plan assets long-term rate of return | 7.50% | 7.75% | 8.00% |
Future health care cost increase rate, age 64 and younger | 6.00% | 6.00% | 6.00% |
Employee Plan | |||
Assumptions Used to Determine Benefit Obligations | |||
Projected benefit obligation discount rate | 4.10% | 4.84% | 3.98% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 4.84% | 3.98% | 4.53% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Supplemental Plans | |||
Assumptions Used to Determine Benefit Obligations | |||
Projected benefit obligation discount rate | 3.97% | 4.69% | 3.81% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 4.69% | 3.81% | 4.39% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Other Post-Employment | |||
Assumptions Used to Determine Benefit Obligations | |||
Projected benefit obligation discount rate | 3.62% | 4.21% | 3.37% |
Deferred investment gain/loss amortization corridor | 10.00% | 10.00% | 10.00% |
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 4.21% | 3.37% | |
Deferred investment gain/loss amortization corridor | 10.00% | 10.00% | 10.00% |
Other Post-Employment | Maximum | |||
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 4.11% | ||
Other Post-Employment | Minimum | |||
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 3.35% |
Employee_Benefit_Plans_and_Emp4
Employee Benefit Plans and Employment Agreements Benefits Expected to be Paid Over the Next Ten Year (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $48.40 |
2016 | 48.7 |
2017 | 48.7 |
2018 | 49 |
2019 | 49.3 |
2020 to 2024 | 257.8 |
Employee Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 35.3 |
2016 | 35.8 |
2017 | 36.3 |
2018 | 36.7 |
2019 | 37.3 |
2020 to 2024 | 199.6 |
Supplemental Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 9.6 |
2016 | 9.6 |
2017 | 9.3 |
2018 | 9.3 |
2019 | 9.2 |
2020 to 2024 | 46.7 |
Other Post-Employment | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 3.5 |
2016 | 3.3 |
2017 | 3.1 |
2018 | 3 |
2019 | 2.8 |
2020 to 2024 | $11.50 |
Employee_Benefit_Plans_and_Emp5
Employee Benefit Plans and Employment Agreements Employee Pension Plan Asset Allocation (Details) (Employee Plan) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 52.00% | 53.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 40.00% | 39.00% |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 2.00% | 2.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 6.00% | 6.00% |
Employee_Benefit_Plans_and_Emp6
Employee Benefit Plans and Employment Agreements Changes in Plan Assets and Benefit Obligations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $11.80 | $11.40 | |
Employee Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, beginning of period | 516.5 | 475.8 | 437.6 |
Plan assets’ actual return | 47.8 | 64.9 | 55.4 |
Employer contributions | 11.8 | 11.4 | 18.2 |
Plan disbursements | -35.7 | -35.6 | -35.4 |
Plans’ assets, end of period | 540.4 | 516.5 | 475.8 |
Plans’ Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | -638.5 | -694.8 | -646.3 |
Service and interest cost accrued | -32.4 | -29.1 | -29.6 |
Interest cost | -30.1 | -27 | -28.7 |
Actuarial gain (loss) | -79.7 | 49.8 | -54.3 |
Plan disbursements | 35.7 | 35.6 | 35.4 |
Projected benefit obligation, end of period | -714.9 | -638.5 | -694.8 |
Plan assets less than projected benefit obligations, end of period | -174.5 | -122 | -219 |
Accumulated benefit obligation | -714.9 | -638.5 | -694.8 |
Supplemental Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan disbursements | -8.7 | -8.3 | -9.8 |
Plans’ Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | -137.4 | -150.9 | -141.9 |
Interest cost | -6.4 | -5.6 | -6.1 |
Actuarial gain (loss) | -18.6 | 10.8 | -12.7 |
Plan disbursements | 8.7 | 8.3 | 9.8 |
Plan amendments | 0 | 0 | 0 |
Projected benefit obligation, end of period | -153.7 | -137.4 | -150.9 |
Plan assets less than projected benefit obligations, end of period | -153.7 | -137.4 | -150.9 |
Accumulated benefit obligation | -153.7 | -137.4 | -150.9 |
Other Post-Employment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan disbursements | -3.9 | -3.4 | -5.3 |
Plans’ Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | -36.5 | -40.6 | -59.6 |
Service and interest cost accrued | -1.5 | -1.5 | -2.1 |
Interest cost | -1.4 | -1.3 | -1.8 |
Actuarial gain (loss) | 0.7 | 2.2 | 3.9 |
Plan disbursements | 3.9 | 3.4 | 5.3 |
Plan amendments | 0 | 0 | 11.9 |
Projected benefit obligation, end of period | ($33.40) | ($36.50) | ($40.60) |
Employee_Benefit_Plans_and_Emp7
Employee Benefit Plans and Employment Agreements Amounts Recognized in Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Employee Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and post-employment liabilities | ($174.50) | ($122) | ($219) |
Employee Plan | Other Liabilities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and post-employment liabilities | -174.5 | -122 | |
Other Post-Employment | Other Liabilities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and post-employment liabilities | -33.4 | -36.5 | |
Supplemental Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and post-employment liabilities | -153.7 | -137.4 | -150.9 |
Supplemental Plans | Other Liabilities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and post-employment liabilities | ($153.70) | ($137.40) |
Employee_Benefit_Plans_and_Emp8
Employee Benefit Plans and Employment Agreements Amounts Recorded in AOCL (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Plan | |||
Actuarial Gains Losses [Roll Forward] | |||
Balance, beginning of period | $172.60 | $258.90 | $234.80 |
Deferrals for the period – net actuarial loss / (gain) | -69.7 | 77.7 | -32 |
Amortization for the period – net actuarial loss / (gain) | -5.9 | -8.6 | -7.9 |
Balance, end of period | -236.4 | -172.6 | -258.9 |
Prior Service Cost (Credit) [Roll Forward] | |||
Amortization of prior service costs | 0 | 0 | 0 |
Supplemental Plans | |||
Actuarial Gains Losses [Roll Forward] | |||
Balance, beginning of period | 63.5 | 77.2 | 66.9 |
Deferrals for the period – net actuarial loss / (gain) | 18.6 | -10.8 | 12.7 |
Amortization for the period – net actuarial loss / (gain) | -2.6 | -2.9 | -2.4 |
Balance, end of period | -79.5 | -63.5 | -77.2 |
Prior Service Cost (Credit) [Roll Forward] | |||
Amortization of prior service costs | 0 | 0 | 0 |
Other Post-Employment | |||
Actuarial Gains Losses [Roll Forward] | |||
Balance, beginning of period | 6.5 | 4.3 | 0.6 |
Deferrals for the period – net actuarial loss / (gain) | 0.7 | 2.2 | 3.9 |
Amortization for the period – net actuarial loss / (gain) | -0.3 | 0 | -0.2 |
Balance, end of period | -6.9 | -6.5 | -4.3 |
Prior Service Cost (Credit) [Roll Forward] | |||
Balance, beginning of period | 10.8 | 12 | 1.7 |
Deferrals for prior service cost / (credit) | 0 | 0 | -11.9 |
Amortization of prior service costs | -1.1 | -1.2 | -1.6 |
Subtotal, end of period | -9.7 | -10.8 | -12 |
Balance, end of period | ($16.60) | ($17.30) | ($16.30) |
Employee_Benefit_Plans_and_Emp9
Employee Benefit Plans and Employment Agreements Amounts Recorded in AOCL in Next Fiscal Year (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Employee Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Prior service (credit) cost | $0 |
Net actuarial loss | 7.8 |
Total | 7.8 |
Supplemental Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Prior service (credit) cost | 0 |
Net actuarial loss | 3 |
Total | $3 |
Recovered_Sheet1
Employee Benefit Plans and Employment Agreements Components of Pension Benefit Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $2.30 | $2.10 | $0.90 |
Interest cost | 30.1 | 27 | 28.7 |
Plan assets expected return | -37.5 | -36.1 | -34.2 |
Net loss amortization | 5.9 | 8.6 | 7.9 |
Prior service cost amortization | 0 | 0 | 0 |
Pension benefit expense | 0.8 | 1.6 | 3.3 |
Supplemental Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 6.4 | 5.6 | 6.1 |
Plan assets expected return | 0 | 0 | 0 |
Net loss amortization | 2.6 | 2.9 | 2.4 |
Prior service cost amortization | 0 | 0 | 0 |
Pension benefit expense | 9 | 8.5 | 8.5 |
Other Post-Employment | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0.1 | 0.2 | 0.3 |
Interest cost | 1.4 | 1.3 | 1.8 |
Net loss amortization | -0.3 | 0 | -0.2 |
Prior service cost amortization | -1.1 | -1.2 | -1.6 |
Pension benefit expense | $0.10 | $0.30 | $0.30 |
Recovered_Sheet2
Employee Benefit Plans and Employment Agreements Funding Status of Employee Pension Plan (Details) (Employee Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Employee Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | $540.40 | $516.50 | $475.80 | $437.60 |
Projected benefit obligation, end of period | -714.9 | -638.5 | -694.8 | -646.3 |
Plan assets less than projected benefit obligations, end of period | ($174.50) | ($122) | ($219) |
Recovered_Sheet3
Employee Benefit Plans and Employment Agreements Fair Value Measurement—Employee Pension Plan Assets (Details) (Employee Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | $540.40 | $516.50 | $475.80 | $437.60 |
Recurring | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 535.9 | 512.8 | ||
Recurring | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 0 | 0 | ||
Recurring | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 478.3 | 457.5 | ||
Recurring | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 57.6 | 55.3 | ||
Mercer Group Trust | Recurring | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 464 | 446.7 | ||
Mercer Group Trust | Recurring | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 0 | 0 | ||
Mercer Group Trust | Recurring | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 464 | 446.7 | ||
Mercer Group Trust | Recurring | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 0 | 0 | ||
Virtus Real Estate Securities Trust | Recurring | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 14.3 | 10.8 | ||
Virtus Real Estate Securities Trust | Recurring | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 0 | 0 | ||
Virtus Real Estate Securities Trust | Recurring | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 14.3 | 10.8 | ||
Virtus Real Estate Securities Trust | Recurring | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 0 | 0 | ||
Limited partnerships and real estate investments | Recurring | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 57.6 | 55.3 | ||
Limited partnerships and real estate investments | Recurring | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 0 | 0 | ||
Limited partnerships and real estate investments | Recurring | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 0 | 0 | ||
Limited partnerships and real estate investments | Recurring | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | 57.6 | 55.3 | 50.1 | |
Cash and Cash Equivalents and Money Market Funds | Recurring | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, end of period | $1.30 | $0.80 |
Recovered_Sheet4
Employee Benefit Plans and Employment Agreements Level 3 Financial Assets - Pension - Limited Partnership Rollforward (Details) (Employee Plan, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning of period | $475.80 | $437.60 | ||
Plans’ assets, end of period | 540.4 | 516.5 | 475.8 | 437.6 |
Recurring | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plans’ assets, end of period | 535.9 | 512.8 | ||
Recurring | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plans’ assets, end of period | 57.6 | 55.3 | ||
Recurring | Limited partnerships and real estate investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plans’ assets, end of period | 57.6 | 55.3 | ||
Recurring | Limited partnerships and real estate investments | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning of period | 55.3 | 50.1 | ||
Purchases | 3.4 | 4.2 | ||
Sales | -4.2 | -8.1 | ||
Net appreciation on partnerships | 3.1 | 9.1 | ||
Plans’ assets, end of period | $57.60 | $55.30 |
Discontinued_Operations_Narrat
Discontinued Operations Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net losses recognized for discontinued operations | $0.10 | $1 | $5.70 |
Reinsurance Recoverables on Paid Losses, Gross | 0.1 | 0.1 | |
Losses related to adverse developments | 3.4 | 1.9 | 9.9 |
Reinsurance Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Policy liability accruals | $39.30 | $44.10 |
Phoenix_Life_Statutory_Financi2
Phoenix Life Statutory Financial Information and Regulatory Matters (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Regulated Operations [Abstract] | |||
Statutory capital, surplus and surplus notes | $609.20 | $597 | $793.60 |
Asset valuation reserve (“AVRâ€) | 143 | 138.2 | 128.9 |
Statutory capital, surplus and AVR | 752.2 | 735.2 | 922.5 |
Statutory net gain (loss) from operations | 116.2 | 79.8 | 160.5 |
Statutory net income (loss) | $132.50 | ($21) | $156.20 |
Phoenix_Life_Statutory_Financi3
Phoenix Life Statutory Financial Information and Regulatory Matters Phoenix Life Statutory Financial Information and Regulatory Matters Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory Accounting Practices [Line Items] | |||
Statutory capital, surplus and AVR | $752.20 | $735.20 | $922.50 |
Risk-based capital threshold | 250.00% | ||
Statutory net income (loss) | 132.5 | -21 | 156.2 |
Change in unrealized capital gains | 58.9 | ||
Dividends declared | 56 | ||
Percent of dividends paid without state approval | 10.00% | ||
Anticipated dividends paid in next fiscal year | 59.9 | ||
Phoenix Life | |||
Statutory Accounting Practices [Line Items] | |||
Risk-based capital threshold | 300.00% | ||
Anticipated dividends paid in next fiscal year | $59.90 | ||
PHL Variable | |||
Statutory Accounting Practices [Line Items] | |||
Risk-based capital threshold | 200.00% |
Premises_and_Equipment_Premise
Premises and Equipment Premises and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | $174 | $172.30 |
Premises and equipment carrying value | 45 | 46 |
Accumulated depreciation and amortization | -129 | -126.3 |
Premises and equipment | 45 | 46 |
Real estate | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | 99.8 | 99.3 |
Premises and equipment carrying value | 32.6 | 33.6 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | 73.8 | 72.6 |
Premises and equipment carrying value | 12.2 | 12.2 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | 0.4 | 0.4 |
Premises and equipment carrying value | $0.20 | $0.20 |
Premises_and_Equipment_Premise1
Premises and Equipment Premises and Equipment Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense for premises and equipment | $6 | $8.20 | $12 |
Rental expenses for operating leases | 0.6 | 0.6 | 0.9 |
Future minimum rental payments under non-cancelable operating leases, current | 5.9 | ||
Future minimum rental payments under non-cancelable operating leases, 2015 | 0.8 | ||
Future minimum rental payments under non-cancelable operating leases, 2016 | 0.8 | ||
Future minimum rental payments under non-cancelable operating leases, 2017 | 0.8 | ||
Future minimum rental payments under non-cancelable operating leases, 2018 | 0.8 | ||
Future minimum rental payments under non-cancelable operating leases, 2019 | 0.5 | ||
Future minimum rental payments under non-cancelable operating leases, Thereafter | $2.20 |
Contingent_Liabilities_Details
Contingent Liabilities (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Jun. 05, 2012 | Aug. 01, 2014 | Dec. 31, 2014 | Mar. 23, 2015 | Jul. 12, 2013 | |
unnamed_trust | case | claim | claim | ||
state | |||||
Loss Contingencies [Line Items] | |||||
Number of states to perform unclaimed property audits | 39 | ||||
Pending Litigation | Wilmington Savings Fund Society v Phoenix Life and PHL Variable | |||||
Loss Contingencies [Line Items] | |||||
Number of unnamed trusts | 60 | ||||
Pending Litigation | United States District Court for the Southern District of New York | |||||
Loss Contingencies [Line Items] | |||||
Number of claims | 2 | ||||
Settled Litigation | SEC Cease-and-Desist Order | |||||
Loss Contingencies [Line Items] | |||||
Civil monetary penalty fee | $1,100,000 | ||||
PHL Variable | |||||
Loss Contingencies [Line Items] | |||||
Number of cases named as a defendant (in cases) | 6 | ||||
Number of states investigating COI rate adjustments | 2 | ||||
WISCONSIN | Subsequent Event | PHL Variable | |||||
Loss Contingencies [Line Items] | |||||
Number of claims settled | 7 |
Other_Commitments_Narrative_De
Other Commitments Narrative (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining commitments | $14.30 |
Unfunded commitments | 237.1 |
Amount of unfunded commitments expected to be funded | 73 |
Open commitments | $103.30 |
Condensed_Financial_Informatio2
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||||||||
ASSETS: | ||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | $12,679.30 | $12,587.50 | $12,370.50 | $11,920.70 | $11,731.50 | $11,649.80 | $11,654.80 | $11,816.60 | ||
Short-term investments | 149.7 | 90.4 | 504.8 | 571 | 361.6 | 454.8 | 599.8 | 699.5 | ||
Fair value investments | 235.4 | 207.2 | 207.4 | 215.2 | 215.2 | 223.7 | 216.1 | 215.2 | ||
Cash and cash equivalents | 450 | 443.2 | 330.2 | 424.5 | 496.4 | 492.8 | 369.3 | 295.2 | 246.4 | 168.2 |
Deferred income taxes, net | 34.2 | 32 | 29.5 | 45.6 | 70 | 66.1 | 65.9 | 41.5 | ||
Other assets | 311.3 | 316.6 | 301.1 | 299.3 | 320.5 | 368.6 | 340.6 | 339.4 | ||
Total assets | 21,745.90 | 21,693.50 | 21,928.40 | 21,751.40 | 21,641.10 | 21,548.80 | 21,452.60 | 21,690.50 | ||
Liabilities and Stockholders’ Equity | ||||||||||
Indebtedness (Note 9) | 378.9 | 378.8 | 378.9 | 378.8 | 378.8 | 378.8 | 378.8 | 378.8 | ||
Pension and post-employment liabilities | 380 | 292.7 | 299.7 | 306.6 | 313.1 | 407.2 | 418.5 | 424.7 | ||
Other liabilities | 289.8 | 285.4 | 383.1 | 379.1 | 337.3 | 348.1 | 382.4 | 262.2 | ||
Total liabilities | 21,399.30 | 21,159.80 | 21,365.10 | 21,185.50 | 21,039.80 | 21,164.20 | 21,067.50 | 21,263.90 | ||
Total stockholders’ equity | 346.6 | 533.7 | 563.3 | 565.9 | 601.3 | 384.6 | 385.1 | 426.6 | 511.4 | 691.4 |
Total liabilities and stockholders’ equity | 21,745.90 | 21,693.50 | 21,928.40 | 21,751.40 | 21,641.10 | 21,548.80 | 21,452.60 | 21,690.50 | ||
Parent Company | ||||||||||
ASSETS: | ||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | 5.1 | 10.8 | ||||||||
Affiliate securities | 30 | 30 | ||||||||
Short-term investments | 49.9 | 119.9 | ||||||||
Fair value investments | 23.5 | 23.2 | ||||||||
Cash and cash equivalents | 11.2 | 35.4 | 27.2 | 52.5 | ||||||
Investments in subsidiaries | 880.8 | 989.9 | ||||||||
Advances to subsidiaries | 0 | 12.4 | ||||||||
Deferred income taxes, net | 0 | 0 | ||||||||
Other assets | 30.7 | 6.6 | ||||||||
Total assets | 1,031.20 | 1,228.20 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||
Indebtedness (Note 9) | 268.6 | 268.6 | ||||||||
Pension and post-employment liabilities | 380 | 313.1 | ||||||||
Due to subsidiaries | 7.3 | 0 | ||||||||
Other liabilities | 48.7 | 57 | ||||||||
Total liabilities | 704.6 | 638.7 | ||||||||
Total stockholders’ equity | 326.6 | 589.5 | ||||||||
Total liabilities and stockholders’ equity | $1,031.20 | $1,228.20 |
Condensed_Financial_Informatio3
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Statement of Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Investment income | $204.90 | $191.50 | $211.50 | $199.30 | $193.90 | $190.40 | $403 | $384.30 | $607.90 | $583.60 | $830.90 | $789.70 | $827.80 | ||
Net realized investment gains (losses) | -3.8 | 4.2 | -26.9 | 5.6 | 5.3 | -14.6 | -22.7 | -9.3 | -26.5 | -3.7 | -41.2 | 16 | -16.8 | ||
Total revenues | 440.4 | 414.4 | 413.1 | 399 | 463.8 | 429.8 | 419.2 | 394.8 | 812.1 | 814 | 1,226.50 | 1,243.80 | 1,666.90 | 1,707.60 | 1,781.20 |
Interest expense | 7 | 7.1 | 7.1 | 7.1 | 7.1 | 7.1 | 14.2 | 14.2 | 21.2 | 21.3 | 28.3 | 28.3 | 30.8 | ||
Other operating expenses | 77 | 84.4 | 97.2 | 77.3 | 91.3 | 83.2 | 181.6 | 174.5 | 258.6 | 251.8 | 350.2 | 337.1 | 253.3 | ||
Total benefits and expenses | 542.2 | 434 | 454.5 | 431.4 | 321.7 | 438.9 | 449.1 | 459.8 | 885.9 | 908.9 | 1,319.90 | 1,347.80 | 1,862.10 | 1,669.50 | 1,934.70 |
Income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Income (loss) from continuing operations | -134.1 | -22.2 | -21.8 | -27.6 | 145.3 | -17.8 | -28.7 | -69.2 | -49.4 | -97.9 | -71.6 | -115.7 | -205.7 | 29.6 | -148.8 |
Income (loss) from discontinued operations of subsidiaries | -2 | -0.3 | -0.6 | -0.6 | -1.2 | 0.3 | -0.2 | -1.8 | -1.2 | -2 | -1.5 | -1.7 | -3.5 | -2.9 | -15.6 |
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 |
Parent Company | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Equity in undistributed income (loss) of subsidiaries | -99 | 44.1 | -149.7 | ||||||||||||
Investment income | 4.5 | 1.2 | 0.8 | ||||||||||||
Net realized investment gains (losses) | 0.6 | 3.6 | 2 | ||||||||||||
Total revenues | -93.9 | 48.9 | -146.9 | ||||||||||||
Interest expense | 20.4 | 20.4 | 20.4 | ||||||||||||
Other operating expenses | 102.6 | 70.7 | 10.2 | ||||||||||||
Total benefits and expenses | 123 | 91.1 | 30.6 | ||||||||||||
Income (loss) before income taxes | -216.9 | -42.2 | -177.5 | ||||||||||||
Income tax expense (benefit) | -3.7 | -68.7 | -12 | ||||||||||||
Income (loss) from continuing operations | -213.2 | 26.5 | -165.5 | ||||||||||||
Income (loss) from discontinued operations of subsidiaries | 0 | -0.5 | 0.5 | ||||||||||||
Net income (loss) | ($213.20) | $26 | ($165) |
Condensed_Financial_Informatio4
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Statement of Cash Flows) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||||||||
Interest paid | ($4.70) | ($4.70) | ($13.90) | ($13.90) | ($18.60) | ($18.60) | ($27.90) | ($27.90) | ($30.40) |
Other operating activities, net | 23.1 | 25.3 | 14.6 | 36.2 | 2.2 | 46.2 | 3.4 | 60.1 | -34.3 |
Purchases of available-for-sale debt securities | -338.4 | -384.1 | -871.4 | -976.6 | -1,754.20 | -1,653.20 | -2,272.60 | -2,460.70 | -1,796.90 |
Short-term investments | -649.3 | -699.5 | -1,058.90 | -849.4 | -1,584.60 | -1,089.10 | -1,794.40 | -1,559.70 | -1,814 |
Sales, repayments and maturities of available-for-sale debt securities | 446.1 | 532.2 | 346.5 | ||||||
Short-term investments | 489.8 | 699.7 | 915.6 | 949.6 | 1,856.10 | 1,334.50 | 2,005.90 | 1,909.20 | 1,382.70 |
Cash and cash equivalents, beginning of period | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 168.2 |
Cash and cash equivalents, end of period | 424.5 | 295.2 | 330.2 | 369.3 | 443.2 | 492.8 | 450 | 496.4 | 246.4 |
Parent Company | |||||||||
Operating Activities | |||||||||
Interest income received | 3.7 | 0.9 | 1.2 | ||||||
Interest paid | -20 | -20 | -20 | ||||||
Taxes paid | 0 | -2.2 | -15.1 | ||||||
Taxes received | 0 | 3.5 | 3.4 | ||||||
Payments to/from subsidiaries | -113.4 | 52.5 | 0.8 | ||||||
Other operating activities, net | -13.8 | -14.9 | -0.6 | ||||||
Cash used for operating activities | -143.5 | 19.8 | -30.3 | ||||||
Purchases of available-for-sale debt securities | 0 | -30 | -5 | ||||||
Short-term investments | -589.4 | -579.5 | -264.8 | ||||||
Sales, repayments and maturities of available-for-sale debt securities | 5 | 1 | 27.5 | ||||||
Short-term investments | 659.4 | 564.7 | 173.9 | ||||||
Subsidiary loan payments received | 3.3 | 3 | 4 | ||||||
Proceeds from the sale of subsidiary | 0 | 0 | 1 | ||||||
Dividends received from subsidiaries | 56 | 74.2 | 71.8 | ||||||
Capital contributions to subsidiaries | -15 | -45 | 0 | ||||||
Cash provided by (used for) investing activities | 119.3 | -11.6 | 8.4 | ||||||
Treasury stock acquired | 0 | 0 | -3.4 | ||||||
Cash provided by financing activities | 0 | 0 | -3.4 | ||||||
Change in cash and cash equivalents | -24.2 | 8.2 | -25.3 | ||||||
Cash and cash equivalents, beginning of period | 35.4 | 27.2 | 35.4 | 27.2 | 35.4 | 27.2 | 35.4 | 27.2 | 52.5 |
Cash and cash equivalents, end of period | $11.20 | $35.40 | $27.20 |
Condensed_Financial_Informatio5
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||
Number of reporting segments (segment) | 2 | ||
Unearned premiums included in policy liabilities and accruals | $84.80 | $93 | $102.20 |
Non insurance segment operating expenses | $31.20 | $23.30 | $20.40 |
Subsequent_Events_Details
Subsequent Events (Details) (Phoenix Life, USD $) | 12 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 19, 2015 |
Subsequent Event [Line Items] | ||
Dividends declared to Phoenix | $56 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividends declared to Phoenix | $15 |
Supplemental_Unaudited_Quarter2
Supplemental Unaudited Quarterly Financial Information Summarized Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | $440.40 | $414.40 | $413.10 | $399 | $463.80 | $429.80 | $419.20 | $394.80 | $812.10 | $814 | $1,226.50 | $1,243.80 | $1,666.90 | $1,707.60 | $1,781.20 |
Benefits and expenses | 542.2 | 434 | 454.5 | 431.4 | 321.7 | 438.9 | 449.1 | 459.8 | 885.9 | 908.9 | 1,319.90 | 1,347.80 | 1,862.10 | 1,669.50 | 1,934.70 |
Income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Income (loss) from continuing operations | -134.1 | -22.2 | -21.8 | -27.6 | 145.3 | -17.8 | -28.7 | -69.2 | -49.4 | -97.9 | -71.6 | -115.7 | -205.7 | 29.6 | -148.8 |
Income (loss) from discontinued operations, net of income taxes | -2 | -0.3 | -0.6 | -0.6 | -1.2 | 0.3 | -0.2 | -1.8 | -1.2 | -2 | -1.5 | -1.7 | -3.5 | -2.9 | -15.6 |
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 |
Less: Net loss attributable to noncontrolling interests | 4.2 | -0.1 | 0 | -0.1 | 1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 |
Net income (loss) attributable to The Phoenix Companies, Inc. | -140.3 | -22.4 | -22.4 | -28.1 | 143.1 | -17.4 | -28.8 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 |
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.92 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.53 | ($28.60) |
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.84 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.51 | ($28.60) |
Correction of errors | |||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $5.20 | ($2.20) | ($2.90) | $1.80 | ($7.10) | $6.20 | $20.90 | $3.50 |
Supplemental_Unaudited_Quarter3
Supplemental Unaudited Quarterly Financial Information Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||||||||
ASSETS: | ||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | $12,679.30 | $12,587.50 | $12,370.50 | $11,920.70 | $11,731.50 | $11,649.80 | $11,654.80 | $11,816.60 | ||
Available-for-sale equity securities, at fair value | 179.5 | 189.9 | 149.1 | 143.2 | 138 | 107.7 | 107.4 | 97.9 | ||
Short-term investments | 149.7 | 90.4 | 504.8 | 571 | 361.6 | 454.8 | 599.8 | 699.5 | ||
Limited partnerships and other investments | 542.8 | 560.7 | 557.9 | 569.5 | 561.3 | 573 | 559.4 | 563.4 | ||
Policy loans, at unpaid principal balances | 2,352.10 | 2,324.10 | 2,325.40 | 2,353.70 | 2,350.30 | 2,329.90 | 2,350.10 | 2,340.10 | ||
Derivative instruments | 161.3 | 138.2 | 162.5 | 160 | 228.8 | 180 | 188.9 | 181.6 | ||
Fair value investments | 235.4 | 207.2 | 207.4 | 215.2 | 215.2 | 223.7 | 216.1 | 215.2 | ||
Total investments | 16,300.10 | 16,098 | 16,277.60 | 15,933.30 | 15,586.70 | 15,518.90 | 15,676.50 | 15,914.30 | ||
Cash and cash equivalents | 450 | 443.2 | 330.2 | 424.5 | 496.4 | 492.8 | 369.3 | 295.2 | 246.4 | 168.2 |
Accrued investment income | 176.7 | 214.2 | 185.7 | 176 | 170.4 | 206.1 | 183.3 | 176.1 | ||
Reinsurance recoverable | 559.1 | 572.9 | 592.4 | 611.6 | 598.1 | 589.9 | 576.7 | 593.5 | ||
Deferred policy acquisition costs | 848.6 | 883.9 | 881.8 | 906.9 | 947.8 | 905.2 | 914.9 | 870.6 | ||
Deferred income taxes, net | 34.2 | 32 | 29.5 | 45.6 | 70 | 66.1 | 65.9 | 41.5 | ||
Other assets | 311.3 | 316.6 | 301.1 | 299.3 | 320.5 | 368.6 | 340.6 | 339.4 | ||
Discontinued operations assets | 45.2 | 43.6 | 44.7 | 46.2 | 48.9 | 50.3 | 51.9 | 53.2 | ||
Separate account assets | 3,020.70 | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | ||
Total assets | 21,745.90 | 21,693.50 | 21,928.40 | 21,751.40 | 21,641.10 | 21,548.80 | 21,452.60 | 21,690.50 | ||
LIABILITIES: | ||||||||||
Policy liabilities and accruals | 12,417.60 | 12,363.50 | 12,410 | 12,398.60 | 12,416.60 | 12,551.10 | 12,569.80 | 12,641.70 | ||
Policyholder deposit funds | 3,955 | 3,836.60 | 3,673.40 | 3,555.30 | 3,442.60 | 3,339 | 3,255.90 | 3,159.90 | ||
Dividend obligations | 916.8 | 874.9 | 894.7 | 817.6 | 705.7 | 744.8 | 742.5 | 942.3 | ||
Indebtedness | 378.9 | 378.8 | 378.9 | 378.8 | 378.8 | 378.8 | 378.8 | 378.8 | ||
Pension and postretirement liabilities | 380 | 292.7 | 299.7 | 306.6 | 313.1 | 407.2 | 418.5 | 424.7 | ||
Other liabilities | 289.8 | 285.4 | 383.1 | 379.1 | 337.3 | 348.1 | 382.4 | 262.2 | ||
Discontinued operations liabilities | 40.5 | 38.8 | 39.9 | 41.5 | 43.4 | 44.3 | 46.1 | 47.6 | ||
Separate account liabilities | 3,020.70 | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | ||
Total liabilities | 21,399.30 | 21,159.80 | 21,365.10 | 21,185.50 | 21,039.80 | 21,164.20 | 21,067.50 | 21,263.90 | ||
STOCKHOLDERS’ EQUITY: | ||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
Additional paid-in capital | 2,632.80 | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633 | 2,632.90 | ||
Accumulated other comprehensive income (loss) | -234.4 | -179.3 | -172.1 | -192.3 | -185 | -255.4 | -271.1 | -258 | -243.8 | |
Retained earnings (accumulated deficit) | -1,889 | -1,748.70 | -1,726.30 | -1,703.90 | -1,675.80 | -1,818.90 | -1,801.50 | -1,772.70 | ||
Treasury stock, at cost: 0.7 million shares | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | ||
Total The Phoenix Companies, Inc. stockholders’ equity | 326.6 | 521.9 | 551.5 | 554.1 | 589.5 | 376 | 377.6 | 419.4 | ||
Noncontrolling interests | 20 | 11.8 | 11.8 | 11.8 | 11.8 | 8.6 | 7.5 | 7.2 | ||
Total stockholders’ equity | 346.6 | 533.7 | 563.3 | 565.9 | 601.3 | 384.6 | 385.1 | 426.6 | 511.4 | 691.4 |
Total liabilities and stockholders’ equity | 21,745.90 | 21,693.50 | 21,928.40 | 21,751.40 | 21,641.10 | 21,548.80 | 21,452.60 | 21,690.50 | ||
As reported | ||||||||||
ASSETS: | ||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | 12,706.60 | 12,454.10 | 12,002.10 | 11,808.60 | 11,713.20 | 11,725.90 | 11,881.10 | |||
Available-for-sale equity securities, at fair value | 75.4 | 68.5 | 64.1 | 61.8 | 45.2 | 38.7 | 34.6 | |||
Short-term investments | 90.4 | 504.8 | 571 | 361.6 | 454.8 | 599.8 | 699.5 | |||
Limited partnerships and other investments | 559.9 | 557.9 | 569.5 | 561.9 | 573 | 559.4 | 563.4 | |||
Policy loans, at unpaid principal balances | 2,324.10 | 2,325.40 | 2,353.70 | 2,350.30 | 2,329.90 | 2,350.10 | 2,340.10 | |||
Derivative instruments | 149.9 | 175 | 172.7 | 243.1 | 197.2 | 206.5 | 194.4 | |||
Fair value investments | 206.5 | 207.4 | 215.2 | 210.8 | 223.7 | 216.1 | 215.2 | |||
Total investments | 16,112.80 | 16,293.10 | 15,948.30 | 15,598.10 | 15,537 | 15,696.50 | 15,928.30 | |||
Cash and cash equivalents | 443.2 | 330.2 | 424.5 | 496.4 | 492.8 | 369.3 | 295.2 | 246.4 | 168.2 | |
Accrued investment income | 214.2 | 185.7 | 176 | 170.4 | 206.1 | 183.3 | 176.1 | |||
Reinsurance recoverable | 575.6 | 594.7 | 616 | 603.3 | 589.6 | 577 | 594.4 | |||
Deferred policy acquisition costs | 874.6 | 869 | 892.4 | 940.6 | 900.4 | 914.6 | 881.5 | |||
Deferred income taxes, net | 31.8 | 29.4 | 47.4 | 70 | 66 | 65.8 | 41.5 | |||
Other assets | 300.7 | 279 | 278.8 | 299.9 | 345 | 325.1 | 319.1 | |||
Discontinued operations assets | 38.8 | 39.9 | 41.4 | 43.6 | 45.5 | 47.1 | 48.4 | |||
Separate account assets | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | |||
Total assets | 21,680.80 | 21,906.40 | 21,732.80 | 21,624.60 | 21,533.30 | 21,452.20 | 21,691.20 | |||
LIABILITIES: | ||||||||||
Policy liabilities and accruals | 12,384.20 | 12,429 | 12,425.80 | 12,437.60 | 12,559.30 | 12,577.70 | 12,653.80 | |||
Policyholder deposit funds | 3,819.50 | 3,658.70 | 3,540 | 3,429.70 | 3,328.60 | 3,247.80 | 3,153.80 | |||
Dividend obligations | 876.1 | 895.6 | 819.8 | 705.9 | 746.5 | 744.6 | 943.8 | |||
Indebtedness | 378.9 | 378.9 | 378.8 | 378.8 | 378.8 | 378.8 | 378.8 | |||
Pension and postretirement liabilities | 295.5 | 302.5 | 309.4 | 315.9 | 407.2 | 418.5 | 424.7 | |||
Other liabilities | 282.6 | 376.4 | 373 | 333 | 342.9 | 385.3 | 256.1 | |||
Discontinued operations liabilities | 34 | 35.1 | 36.7 | 37.7 | 39.6 | 41.3 | 42.9 | |||
Separate account liabilities | 3,089.10 | 3,285.40 | 3,308 | 3,402.30 | 3,350.90 | 3,273.50 | 3,406.70 | |||
Total liabilities | 21,159.90 | 21,361.60 | 21,191.50 | 21,040.90 | 21,153.80 | 21,067.50 | 21,260.60 | |||
STOCKHOLDERS’ EQUITY: | ||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||
Additional paid-in capital | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633 | 2,632.90 | |||
Accumulated other comprehensive income (loss) | -182.9 | -177.2 | -195.4 | -185.2 | -258.9 | -274.3 | -260.8 | |||
Retained earnings (accumulated deficit) | -1,757.90 | -1,739.70 | -1,725.40 | -1,692.10 | -1,820.50 | -1,798.70 | -1,765.90 | |||
Treasury stock, at cost: 0.7 million shares | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | |||
Total The Phoenix Companies, Inc. stockholders’ equity | 509.1 | 533 | 529.5 | 573 | 370.9 | 377.2 | 423.4 | |||
Noncontrolling interests | 11.8 | 11.8 | 11.8 | 10.7 | 8.6 | 7.5 | 7.2 | |||
Total stockholders’ equity | 520.9 | 544.8 | 541.3 | 583.7 | 379.5 | 384.7 | 430.6 | 510.5 | 695.7 | |
Total liabilities and stockholders’ equity | 21,680.80 | 21,906.40 | 21,732.80 | 21,624.60 | 21,533.30 | 21,452.20 | 21,691.20 | |||
Correction of errors | ||||||||||
ASSETS: | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
STOCKHOLDERS’ EQUITY: | ||||||||||
Total stockholders’ equity | 12.8 | 18.5 | 24.6 | 17.6 | 5.1 | 0.4 | -4 | 0.9 | -4.3 | |
Correction of errors | UL unlock | ||||||||||
ASSETS: | ||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Available-for-sale equity securities, at fair value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Limited partnerships and other investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Policy loans, at unpaid principal balances | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Derivative instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Fair value investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Accrued investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Reinsurance recoverable | -3.9 | -3.8 | -4.3 | -4.3 | 0 | 0 | 0 | |||
Deferred policy acquisition costs | 7.2 | 7.7 | 7.8 | 7.8 | 0 | 0 | 0 | |||
Deferred income taxes, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other assets | 0 | 0 | 0 | 0.1 | 0 | 0 | 0 | |||
Discontinued operations assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Separate account assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total assets | 3.3 | 3.9 | 3.5 | 3.6 | 0 | 0 | 0 | |||
LIABILITIES: | ||||||||||
Policy liabilities and accruals | -18.9 | -18.4 | -17.5 | -15.9 | 0 | 0 | 0 | |||
Policyholder deposit funds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Dividend obligations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Indebtedness | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Pension and postretirement liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Discontinued operations liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Separate account liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total liabilities | -18.9 | -18.4 | -17.5 | -15.9 | 0 | 0 | 0 | |||
STOCKHOLDERS’ EQUITY: | ||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Additional paid-in capital | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Accumulated other comprehensive income (loss) | 0.7 | 1.2 | 1.1 | 0.3 | 0 | 0 | 0 | |||
Retained earnings (accumulated deficit) | 21.5 | 21.1 | 19.9 | 19.2 | 0 | 0 | 0 | |||
Treasury stock, at cost: 0.7 million shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total The Phoenix Companies, Inc. stockholders’ equity | 22.2 | 22.3 | 21 | 19.5 | 0 | 0 | 0 | |||
Noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total stockholders’ equity | 22.2 | 22.3 | 21 | 19.5 | 0 | 0 | 0 | |||
Total liabilities and stockholders’ equity | 3.3 | 3.9 | 3.5 | 3.6 | 0 | 0 | 0 | |||
Correction of errors | Other adjustments | ||||||||||
ASSETS: | ||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | -119.1 | -83.6 | -81.4 | -77.1 | -63.4 | -71.1 | -64.5 | |||
Available-for-sale equity securities, at fair value | 114.5 | 80.6 | 79.1 | 76.2 | 62.5 | 68.7 | 63.3 | |||
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Limited partnerships and other investments | 0.8 | 0 | 0 | -0.6 | 0 | 0 | 0 | |||
Policy loans, at unpaid principal balances | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Derivative instruments | -11.7 | -12.5 | -12.7 | -14.3 | -17.2 | -17.6 | -12.8 | |||
Fair value investments | 0.7 | 0 | 0 | 4.4 | 0 | 0 | 0 | |||
Total investments | -14.8 | -15.5 | -15 | -11.4 | -18.1 | -20 | -14 | |||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Accrued investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Reinsurance recoverable | 1.2 | 1.5 | -0.1 | -0.9 | 0.3 | -0.3 | -0.9 | |||
Deferred policy acquisition costs | 2.1 | 5.1 | 6.7 | -0.6 | 4.8 | 0.3 | -10.9 | |||
Deferred income taxes, net | 0.2 | 0.1 | -1.8 | 0 | 0.1 | 0.1 | 0 | |||
Other assets | 15.9 | 22.1 | 20.5 | 20.5 | 23.6 | 15.5 | 20.3 | |||
Discontinued operations assets | 4.8 | 4.8 | 4.8 | 5.3 | 4.8 | 4.8 | 4.8 | |||
Separate account assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total assets | 9.4 | 18.1 | 15.1 | 12.9 | 15.5 | 0.4 | -0.7 | |||
LIABILITIES: | ||||||||||
Policy liabilities and accruals | -1.8 | -0.6 | -9.7 | -5.1 | -8.2 | -7.9 | -12.1 | |||
Policyholder deposit funds | 17.1 | 14.7 | 15.3 | 12.9 | 10.4 | 8.1 | 6.1 | |||
Dividend obligations | -1.2 | -0.9 | -2.2 | -0.2 | -1.7 | -2.1 | -1.5 | |||
Indebtedness | -0.1 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Pension and postretirement liabilities | -2.8 | -2.8 | -2.8 | -2.8 | 0 | 0 | 0 | |||
Other liabilities | 2.8 | 6.7 | 6.1 | 4.3 | 5.2 | -2.9 | 6.1 | |||
Discontinued operations liabilities | 4.8 | 4.8 | 4.8 | 5.7 | 4.7 | 4.8 | 4.7 | |||
Separate account liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total liabilities | 18.8 | 21.9 | 11.5 | 14.8 | 10.4 | 0 | 3.3 | |||
STOCKHOLDERS’ EQUITY: | ||||||||||
Common stock, $.01 par value: 5.7 million shares outstanding | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Additional paid-in capital | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Accumulated other comprehensive income (loss) | 2.9 | 3.9 | 2 | -0.1 | 3.5 | 3.2 | 2.8 | |||
Retained earnings (accumulated deficit) | -12.3 | -7.7 | 1.6 | -2.9 | 1.6 | -2.8 | -6.8 | |||
Treasury stock, at cost: 0.7 million shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total The Phoenix Companies, Inc. stockholders’ equity | -9.4 | -3.8 | 3.6 | -3 | 5.1 | 0.4 | -4 | |||
Noncontrolling interests | 0 | 0 | 0 | 1.1 | 0 | 0 | 0 | |||
Total stockholders’ equity | -9.4 | -3.8 | 3.6 | -1.9 | 5.1 | 0.4 | -4 | |||
Total liabilities and stockholders’ equity | 9.4 | 18.1 | 15.1 | 12.9 | 15.5 | 0.4 | -0.7 | |||
Correction of errors | Other Adjustments, Perpetual Preferred Stock Securities | ||||||||||
ASSETS: | ||||||||||
Available-for-sale equity securities, at fair value | $116 | $63.40 |
Consolidated_Balance_Sheets_De
Consolidated Balance Sheets (Details 2) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 11, 2012 | Aug. 10, 2012 |
In Millions, except Per Share data, unless otherwise specified | |||||
Quarterly Financial Information Disclosure [Abstract] | |||||
Common stock par value (USD per share) | $0.01 | $0.01 | $0.01 | $0.01 | |
Shares outstanding (shares) | 5.8 | 5.7 | 5.7 | 5.8 | 116 |
Treasury stock (shares) | 0.7 | 0.7 | 0.7 |
Supplemental_Unaudited_Quarter4
Supplemental Unaudited Quarterly Financial Information Consolidated Statements of Income and Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||||||||||||||
Premiums | $78.10 | $83.20 | $79.60 | $84.50 | $87.40 | $82.70 | $162.80 | $170.10 | $240.90 | $254.60 | $332.10 | $351.60 | $402.30 | ||
Fee income | 135.2 | 134.2 | 134.8 | 140.4 | 132.6 | 136.3 | 269 | 268.9 | 404.2 | 409.3 | 545.1 | 550.3 | 556 | ||
Net investment income | 204.9 | 191.5 | 211.5 | 199.3 | 193.9 | 190.4 | 403 | 384.3 | 607.9 | 583.6 | 830.9 | 789.7 | 827.8 | ||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | -3.7 | -1 | 0 | -1.5 | -0.4 | -0.5 | -1 | -0.9 | -4.7 | -2.4 | -7.7 | -7 | -50.8 | ||
Portion of OTTI losses recognized in other comprehensive income (“OCIâ€) | -0.2 | 0 | -0.2 | -0.4 | -2.5 | -1.7 | -0.2 | -4.2 | -0.4 | -4.6 | -0.4 | -4.8 | 22.9 | ||
Net OTTI losses recognized in earnings | -3.9 | -1 | -0.2 | -1.9 | -2.9 | -2.2 | -1.2 | -5.1 | -5.1 | -7 | -8.1 | -11.8 | -27.9 | ||
Net realized investment gains (losses), excluding OTTI losses | 0.1 | 5.2 | -26.7 | 7.5 | 8.2 | -12.4 | -21.5 | -4.2 | -21.4 | 3.3 | -33.1 | 27.8 | 11.1 | ||
Net realized investment gains (losses) | -3.8 | 4.2 | -26.9 | 5.6 | 5.3 | -14.6 | -22.7 | -9.3 | -26.5 | -3.7 | -41.2 | 16 | -16.8 | ||
Total revenues | 440.4 | 414.4 | 413.1 | 399 | 463.8 | 429.8 | 419.2 | 394.8 | 812.1 | 814 | 1,226.50 | 1,243.80 | 1,666.90 | 1,707.60 | 1,781.20 |
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | 263.6 | 301.3 | 230.3 | 259.6 | 272.2 | 270.6 | 531.6 | 542.8 | 795.2 | 802.4 | 1,119.20 | 965.1 | 1,162.40 | ||
Policyholder dividends | 57 | 42.6 | 72.2 | 66.3 | 51.4 | 49.3 | 114.8 | 100.7 | 171.8 | 167 | 244.8 | 235.9 | 292.1 | ||
Policy acquisition cost amortization | 29.4 | 19.1 | 24.6 | 28.6 | 27.1 | 49.6 | 43.7 | 76.7 | 73.1 | 105.3 | 119.6 | 103.1 | 196.1 | ||
Interest expense on indebtedness | 7 | 7.1 | 7.1 | 7.1 | 7.1 | 7.1 | 14.2 | 14.2 | 21.2 | 21.3 | 28.3 | 28.3 | 30.8 | ||
Other operating expenses | 77 | 84.4 | 97.2 | 77.3 | 91.3 | 83.2 | 181.6 | 174.5 | 258.6 | 251.8 | 350.2 | 337.1 | 253.3 | ||
Total benefits and expenses | 542.2 | 434 | 454.5 | 431.4 | 321.7 | 438.9 | 449.1 | 459.8 | 885.9 | 908.9 | 1,319.90 | 1,347.80 | 1,862.10 | 1,669.50 | 1,934.70 |
Income (loss) from continuing operations before income taxes | -19.6 | -41.4 | -32.4 | -9.1 | -29.9 | -65 | -73.8 | -94.9 | -93.4 | -104 | -195.2 | 38.1 | -153.5 | ||
Income tax expense (benefit) | 32.3 | 2.6 | -19.6 | -4.8 | -3.2 | 8.7 | -1.2 | 4.2 | -24.4 | 3 | -21.8 | 11.7 | 10.5 | 8.5 | -4.7 |
Income (loss) from continuing operations | -134.1 | -22.2 | -21.8 | -27.6 | 145.3 | -17.8 | -28.7 | -69.2 | -49.4 | -97.9 | -71.6 | -115.7 | -205.7 | 29.6 | -148.8 |
Income (loss) from discontinued operations, net of income taxes | -2 | -0.3 | -0.6 | -0.6 | -1.2 | 0.3 | -0.2 | -1.8 | -1.2 | -2 | -1.5 | -1.7 | -3.5 | -2.9 | -15.6 |
Net income (loss) | -136.1 | -22.5 | -22.4 | -28.2 | 144.1 | -17.5 | -28.9 | -71 | -50.6 | -99.9 | -73.1 | -117.4 | -209.2 | 26.7 | -164.4 |
Less: Net loss attributable to noncontrolling interests | 4.2 | -0.1 | 0 | -0.1 | 1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 |
Net income (loss) attributable to The Phoenix Companies, Inc. | -140.3 | -22.4 | -22.4 | -28.1 | 143.1 | -17.4 | -28.8 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 |
Other comprehensive income (loss) before income taxes: | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -14.4 | 51.9 | 23.7 | 12.9 | -39.9 | -9 | 75.6 | -48.9 | 61.2 | -36 | 66.5 | -62.7 | 95.4 | ||
Net pension liability adjustment | 1.7 | 1.7 | 1.7 | 2.6 | 2.6 | 2.6 | 3.4 | 5.2 | 5.1 | 7.8 | -80.2 | 101 | -20.3 | ||
Other comprehensive income (loss) before income taxes | -12.7 | 53.6 | 25.4 | 15.5 | -37.3 | -6.4 | 79 | -43.7 | 66.3 | -28.2 | -13.7 | 38.3 | 75.1 | ||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | -5.5 | 33.4 | 32.7 | -0.2 | -24.2 | 7.8 | 66.1 | -16.4 | 60.6 | -16.6 | 35.7 | -20.5 | 92 | ||
Net pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Total income tax expense (benefit) | -5.5 | 33.4 | 32.7 | -0.2 | -24.2 | 7.8 | 66.1 | -16.4 | 60.6 | -16.6 | 35.7 | -20.5 | 92 | ||
Other comprehensive income (loss), net of income taxes | -7.2 | 20.2 | -7.3 | 15.7 | -13.1 | -14.2 | 12.9 | -27.3 | 5.7 | -11.6 | -49.4 | 58.8 | -16.9 | ||
Comprehensive income (loss) | -29.7 | -2.2 | -35.5 | -1.8 | -42 | -85.2 | -37.7 | -127.2 | -67.4 | -129 | -258.6 | 85.5 | -181.3 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | -0.1 | 0 | -0.1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | -0.3 | 4 | 0.7 | 0.6 | ||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -29.6 | -2.2 | -35.4 | -1.7 | -41.9 | -85.1 | -37.6 | -127 | -67.2 | -128.7 | -262.6 | 84.8 | -181.9 | ||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | ($3.85) | ($3.80) | ($4.79) | ($3.08) | ($4.99) | ($12.10) | ($8.58) | ($17.01) | ($12.42) | ($20.09) | ($36.48) | $5.04 | ($25.90) | ||
Gain (loss) from continuing operations – diluted (USD per share) | ($3.85) | ($3.80) | ($4.79) | ($3.08) | ($4.99) | ($12.10) | ($8.58) | ($17.01) | ($12.42) | ($20.09) | ($36.48) | $5.01 | ($25.90) | ||
Loss from discontinued operations – basic (USD per share) | ($0.05) | ($0.10) | ($0.10) | $0.05 | ($0.03) | ($0.31) | ($0.21) | ($0.35) | ($0.26) | ($0.30) | ($0.61) | ($0.51) | ($2.70) | ||
Loss from discontinued operations – diluted (USD per share) | ($0.05) | ($0.10) | ($0.10) | $0.05 | ($0.03) | ($0.31) | ($0.21) | ($0.35) | ($0.26) | ($0.30) | ($0.61) | ($0.50) | ($2.70) | ||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.92 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.53 | ($28.60) |
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($24.40) | ($3.90) | ($3.90) | ($4.89) | $24.84 | ($3.03) | ($5.02) | ($12.41) | ($8.79) | ($17.36) | ($12.68) | ($20.39) | ($37.09) | $4.51 | ($28.60) |
Basic weighted-average common shares outstanding (shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,735 | 5,770 | ||
Diluted weighted-average common shares outstanding (in shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,748 | 5,764 | 5,770 | ||
As reported | |||||||||||||||
REVENUES: | |||||||||||||||
Premiums | 78.1 | 83.2 | 79.6 | 84.5 | 87.4 | 82.7 | 162.8 | 170.1 | 240.9 | 254.6 | 351.6 | 402.3 | |||
Fee income | 135.2 | 134.2 | 134.8 | 140.4 | 132.6 | 136.3 | 269 | 268.9 | 404.2 | 409.3 | 551.2 | 556.2 | |||
Net investment income | 204.9 | 195.3 | 213.5 | 199.3 | 194 | 191.1 | 408.8 | 385.1 | 613.7 | 584.4 | 787.2 | 829.3 | |||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | -3.7 | -1 | 0 | -1.7 | 0 | -0.9 | -1 | -0.9 | -4.7 | -2.6 | -7.5 | -51.7 | |||
Portion of OTTI losses recognized in other comprehensive income (“OCIâ€) | -0.2 | 0 | -0.2 | -0.4 | -2.5 | -1.7 | -0.2 | -4.2 | -0.4 | -4.6 | -4.8 | 22.9 | |||
Net OTTI losses recognized in earnings | -3.9 | -1 | -0.2 | -2.1 | -2.5 | -2.6 | -1.2 | -5.1 | -5.1 | -7.2 | -12.3 | -28.8 | |||
Net realized investment gains (losses), excluding OTTI losses | 1.8 | 5.1 | -25.5 | 10.1 | 9.7 | -13.3 | -20.4 | -3.6 | -18.6 | 6.5 | 33.6 | 18.3 | |||
Net realized investment gains (losses) | -2.1 | 4.1 | -25.7 | 8 | 7.2 | -15.9 | -21.6 | -8.7 | -23.7 | -0.7 | 21.3 | -10.5 | |||
Total revenues | 416.1 | 416.8 | 402.2 | 432.2 | 421.2 | 394.2 | 819 | 815.4 | 1,235.10 | 1,247.60 | 1,711.30 | 1,789.20 | |||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | 265.4 | 298.5 | 236 | 261.1 | 272.8 | 318.8 | 534.5 | 591.6 | 799.9 | 852.7 | 1,026.50 | 1,166.10 | |||
Policyholder dividends | 56.7 | 42.4 | 73.8 | 66.2 | 51.3 | 4.4 | 116.2 | 55.7 | 172.9 | 121.9 | 189.7 | 294.8 | |||
Policy acquisition cost amortization | 24.9 | 17.4 | 22.4 | 33.1 | 32.2 | 45.3 | 39.8 | 77.5 | 64.7 | 110.6 | 113.7 | 200 | |||
Interest expense on indebtedness | 7 | 7.1 | 7.1 | 7.1 | 7.1 | 7.7 | 14.2 | 14.8 | 21.2 | 21.9 | 28.9 | 30.8 | |||
Other operating expenses | 78.8 | 85.5 | 97.9 | 77.7 | 91.8 | 80.8 | 183.4 | 172.6 | 262.2 | 250.3 | 335.6 | 253.5 | |||
Total benefits and expenses | 432.8 | 450.9 | 437.2 | 445.2 | 455.2 | 457 | 888.1 | 912.2 | 1,320.90 | 1,357.40 | 1,694.40 | 1,945.20 | |||
Income (loss) from continuing operations before income taxes | -16.7 | -34.1 | -35 | -13 | -34 | -62.8 | -69.1 | -96.8 | -85.8 | -109.8 | 16.9 | -156 | |||
Income tax expense (benefit) | 1.3 | -20.4 | -3.6 | 9.2 | -1.3 | 4.2 | -24 | 2.9 | -22.7 | 12.1 | 9.6 | -3.7 | |||
Income (loss) from continuing operations | -18 | -13.7 | -31.4 | -22.2 | -32.7 | -67 | -45.1 | -99.7 | -63.1 | -121.9 | 7.3 | -152.3 | |||
Income (loss) from discontinued operations, net of income taxes | -0.3 | -0.6 | -0.9 | 0.3 | -0.2 | -1.8 | -1.5 | -2 | -1.8 | -1.7 | -2.6 | -15.6 | |||
Net income (loss) | -18.3 | -14.3 | -32.3 | -21.9 | -32.9 | -68.8 | -46.6 | -101.7 | -64.9 | -123.6 | 4.7 | -167.9 | |||
Less: Net loss attributable to noncontrolling interests | -0.1 | 0 | 1 | -0.1 | -0.1 | -0.1 | 1 | -0.2 | 0.9 | -0.3 | -0.4 | 0.6 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. | -18.2 | -14.3 | -33.3 | -21.8 | -32.8 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | |||
Other comprehensive income (loss) before income taxes: | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -13.7 | 52.8 | 16.9 | 12.6 | -40.4 | -7.5 | 69.7 | -47.9 | 56 | -35.3 | -55.8 | 93.7 | |||
Net pension liability adjustment | 1.7 | 1.8 | 1.6 | 2.6 | 2.6 | 3.8 | 3.4 | 6.4 | 5.1 | 9 | 99.3 | -21.4 | |||
Other comprehensive income (loss) before income taxes | -12 | 54.6 | 18.5 | 15.2 | -37.8 | -3.7 | 73.1 | -41.5 | 61.1 | -26.3 | 43.5 | 72.3 | |||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | -6.3 | 36.4 | 28.7 | -0.2 | -24.3 | 7.8 | 65.1 | -16.5 | 58.8 | -16.7 | -20.6 | 90.9 | |||
Net pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total income tax expense (benefit) | -6.3 | 36.4 | 28.7 | -0.2 | -24.3 | 7.8 | 65.1 | -16.5 | 58.8 | -16.7 | -20.6 | 90.9 | |||
Other comprehensive income (loss), net of income taxes | -5.7 | 18.2 | -10.2 | 15.4 | -13.5 | -11.5 | 8 | -25 | 2.3 | -9.6 | 64.1 | -18.6 | |||
Comprehensive income (loss) | -24 | 3.9 | -42.5 | -6.5 | -46.4 | -80.3 | -38.6 | -126.7 | -62.6 | -133.2 | 68.8 | -186.5 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interests | -0.1 | 0 | 1 | -0.1 | -0.1 | -0.1 | 1 | -0.2 | 0.9 | -0.3 | -0.4 | 0.6 | |||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -23.9 | 3.9 | -43.5 | -6.4 | -46.3 | -80.2 | -39.6 | -126.5 | -63.5 | -132.9 | 69.2 | -187.1 | |||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | ($3.13) | ($2.38) | ($5.47) | ($3.87) | ($5.69) | ($11.72) | ($7.85) | ($17.36) | ($10.98) | ($21.23) | $1.27 | ($26.40) | |||
Gain (loss) from continuing operations – diluted (USD per share) | ($3.13) | ($2.38) | ($5.47) | ($3.87) | ($5.69) | ($11.72) | ($7.85) | ($17.36) | ($10.98) | ($21.23) | $1.27 | ($26.40) | |||
Loss from discontinued operations – basic (USD per share) | ($0.05) | ($0.10) | ($0.16) | $0.05 | ($0.03) | ($0.31) | ($0.26) | ($0.35) | ($0.31) | ($0.30) | ($0.45) | ($2.70) | |||
Loss from discontinued operations – diluted (USD per share) | ($0.05) | ($0.10) | ($0.16) | $0.05 | ($0.03) | ($0.31) | ($0.26) | ($0.35) | ($0.31) | ($0.30) | ($0.45) | ($2.70) | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($3.17) | ($2.49) | ($5.80) | ($3.80) | ($5.71) | ($12.02) | ($8.29) | ($17.68) | ($11.45) | ($21.47) | $0.89 | ($29.20) | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($3.17) | ($2.49) | ($5.80) | ($3.80) | ($5.71) | ($12.02) | ($8.29) | ($17.68) | ($11.45) | ($21.47) | $0.88 | ($29.20) | |||
Basic weighted-average common shares outstanding (shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,735 | 5,770 | |||
Diluted weighted-average common shares outstanding (in shares) | 5,750 | 5,749 | 5,742 | 5,742 | 5,742 | 5,715 | 5,745 | 5,742 | 5,747 | 5,742 | 5,764 | 5,770 | |||
Correction of errors | |||||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy acquisition cost amortization | 2.2 | 4.3 | 3.9 | -0.8 | 8.4 | -5.3 | -10.6 | -3.9 | |||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | |||||||
Correction of errors | UL unlock | |||||||||||||||
REVENUES: | |||||||||||||||
Premiums | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Fee income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.9 | 0 | |||
Net investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Portion of OTTI losses recognized in other comprehensive income (“OCIâ€) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net OTTI losses recognized in earnings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net realized investment gains (losses), excluding OTTI losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Net realized investment gains (losses) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.9 | 0 | |||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | -0.7 | -1.1 | -0.7 | 0 | 0 | 0 | -1.8 | 0 | -2.5 | 0 | -12.3 | 0 | |||
Policyholder dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Policy acquisition cost amortization | 0.3 | -0.2 | 0 | 0 | 0 | 0 | -0.2 | 0 | 0.1 | 0 | -7.7 | 0 | |||
Interest expense on indebtedness | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other operating expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.1 | 0 | |||
Total benefits and expenses | -0.4 | -1.3 | -0.7 | 0 | 0 | 0 | -2 | 0 | -2.4 | 0 | -20.1 | 0 | |||
Income (loss) from continuing operations before income taxes | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Income (loss) from continuing operations | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income (loss) | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
Less: Net loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. | 0.4 | 1.3 | 0.7 | 0 | 0 | 0 | 2 | 0 | 2.4 | 0 | 19.2 | 0 | |||
Other comprehensive income (loss) before income taxes: | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -0.5 | 0.1 | 0.8 | 0 | 0 | 0 | 0.9 | 0 | 0.4 | 0 | 0.3 | 0 | |||
Net pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other comprehensive income (loss) before income taxes | -0.5 | 0.1 | 0.8 | 0 | 0 | 0 | 0.9 | 0 | 0.4 | 0 | 0.3 | 0 | |||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total income tax expense (benefit) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other comprehensive income (loss), net of income taxes | -0.5 | 0.1 | 0.8 | 0 | 0 | 0 | 0.9 | 0 | 0.4 | 0 | 0.3 | 0 | |||
Comprehensive income (loss) | -0.1 | 1.4 | 1.5 | 0 | 0 | 0 | 2.9 | 0 | 2.8 | 0 | 19.5 | 0 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -0.1 | 1.4 | 1.5 | 0 | 0 | 0 | 2.9 | 0 | 2.8 | 0 | 19.5 | 0 | |||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.35 | $0 | |||
Gain (loss) from continuing operations – diluted (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.33 | $0 | |||
Loss from discontinued operations – basic (USD per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||
Loss from discontinued operations – diluted (USD per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.35 | $0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | $0.07 | $0.23 | $0.12 | $0 | $0 | $0 | $0.35 | $0 | $0.42 | $0 | $3.33 | $0 | |||
Correction of errors | Other adjustments | |||||||||||||||
REVENUES: | |||||||||||||||
Premiums | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Fee income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0.2 | |||
Net investment income | 0 | -3.8 | -2 | 0 | -0.1 | -0.7 | -5.8 | -0.8 | -5.8 | -0.8 | 2.5 | -1.5 | |||
Net realized investment gains (losses): | |||||||||||||||
Total other-than-temporary impairment (“OTTIâ€) losses | 0 | 0 | 0 | 0.2 | -0.4 | 0.4 | 0 | 0 | 0 | 0.2 | 0.5 | 0.9 | |||
Portion of OTTI losses recognized in other comprehensive income (“OCIâ€) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net OTTI losses recognized in earnings | 0 | 0 | 0 | 0.2 | -0.4 | 0.4 | 0 | 0 | 0 | 0.2 | 0.5 | 0.9 | |||
Net realized investment gains (losses), excluding OTTI losses | -1.7 | 0.1 | -1.2 | -2.6 | -1.5 | 0.9 | -1.1 | -0.6 | -2.8 | -3.2 | -5.8 | -7.2 | |||
Net realized investment gains (losses) | -1.7 | 0.1 | -1.2 | -2.4 | -1.9 | 1.3 | -1.1 | -0.6 | -2.8 | -3 | -5.3 | -6.3 | |||
Total revenues | -1.7 | -3.7 | -3.2 | -2.4 | -2 | 0.6 | -6.9 | -1.4 | -8.6 | -3.8 | -2.8 | -8 | |||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | -1.1 | 3.9 | -5 | -1.5 | -0.6 | -48.2 | -1.1 | -48.8 | -2.2 | -50.3 | -49.1 | -3.7 | |||
Policyholder dividends | 0.3 | 0.2 | -1.6 | 0.1 | 0.1 | 44.9 | -1.4 | 45 | -1.1 | 45.1 | 46.2 | -2.7 | |||
Policy acquisition cost amortization | 4.2 | 1.9 | 2.2 | -4.5 | -5.1 | 4.3 | 4.1 | -0.8 | 8.3 | -5.3 | -2.9 | -3.9 | |||
Interest expense on indebtedness | 0 | 0 | 0 | 0 | 0 | -0.6 | 0 | -0.6 | 0 | -0.6 | -0.6 | 0 | |||
Other operating expenses | -1.8 | -1.1 | -0.7 | -0.4 | -0.5 | 2.4 | -1.8 | 1.9 | -3.6 | 1.5 | 1.6 | -0.2 | |||
Total benefits and expenses | 1.6 | 4.9 | -5.1 | -6.3 | -6.1 | 2.8 | -0.2 | -3.3 | 1.4 | -9.6 | -4.8 | -10.5 | |||
Income (loss) from continuing operations before income taxes | -3.3 | -8.6 | 1.9 | 3.9 | 4.1 | -2.2 | -6.7 | 1.9 | -10 | 5.8 | 2 | 2.5 | |||
Income tax expense (benefit) | 1.3 | 0.8 | -1.2 | -0.5 | 0.1 | 0 | -0.4 | 0.1 | 0.9 | -0.4 | -1.1 | -1 | |||
Income (loss) from continuing operations | -4.6 | -9.4 | 3.1 | 4.4 | 4 | -2.2 | -6.3 | 1.8 | -10.9 | 6.2 | 3.1 | 3.5 | |||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0.3 | 0 | 0 | 0 | 0.3 | 0 | 0.3 | 0 | -0.3 | 0 | |||
Net income (loss) | -4.6 | -9.4 | 3.4 | 4.4 | 4 | -2.2 | -6 | 1.8 | -10.6 | 6.2 | 2.8 | 3.5 | |||
Less: Net loss attributable to noncontrolling interests | 0 | 0 | -1.1 | 0 | 0 | 0 | -1.1 | 0 | -1.1 | 0 | 1.1 | 0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. | -4.6 | -9.4 | 4.5 | 4.4 | 4 | -2.2 | -4.9 | 1.8 | -9.5 | 6.2 | 1.7 | 3.5 | |||
Other comprehensive income (loss) before income taxes: | |||||||||||||||
Unrealized investment gains (losses), net of related offsets | -0.2 | -1 | 6 | 0.3 | 0.5 | -1.5 | 5 | -1 | 4.8 | -0.7 | -7.2 | 1.7 | |||
Net pension liability adjustment | 0 | -0.1 | 0.1 | 0 | 0 | -1.2 | 0 | -1.2 | 0 | -1.2 | 1.7 | 1.1 | |||
Other comprehensive income (loss) before income taxes | -0.2 | -1.1 | 6.1 | 0.3 | 0.5 | -2.7 | 5 | -2.2 | 4.8 | -1.9 | -5.5 | 2.8 | |||
Less: Income tax expense (benefit) related to: | |||||||||||||||
Net unrealized gains (losses) on all other investments | 0.8 | -3 | 4 | 0 | 0.1 | 0 | 1 | 0.1 | 1.8 | 0.1 | 0.1 | 1.1 | |||
Net pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total income tax expense (benefit) | 0.8 | -3 | 4 | 0 | 0.1 | 0 | 1 | 0.1 | 1.8 | 0.1 | 0.1 | 1.1 | |||
Other comprehensive income (loss), net of income taxes | -1 | 1.9 | 2.1 | 0.3 | 0.4 | -2.7 | 4 | -2.3 | 3 | -2 | -5.6 | 1.7 | |||
Comprehensive income (loss) | -5.6 | -7.5 | 5.5 | 4.7 | 4.4 | -4.9 | -2 | -0.5 | -7.6 | 4.2 | -2.8 | 5.2 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | -1.1 | 0 | 0 | 0 | -1.1 | 0 | -1.1 | 0 | 1.1 | 0 | |||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | -5.6 | -7.5 | 6.6 | 4.7 | 4.4 | -4.9 | -0.9 | -0.5 | -6.5 | 4.2 | -3.9 | 5.2 | |||
Earnings Per Share [Abstract] | |||||||||||||||
Gain (loss) from continuing operations – basic (USD per share) | ($0.80) | ($1.64) | $0.73 | $0.77 | $0.70 | ($0.38) | ($0.90) | $0.31 | ($1.70) | $1.08 | $0.35 | $0.61 | |||
Gain (loss) from continuing operations – diluted (USD per share) | ($0.80) | ($1.64) | $0.73 | $0.77 | $0.70 | ($0.38) | ($0.90) | $0.31 | ($1.70) | $1.08 | $0.34 | $0.61 | |||
Loss from discontinued operations – basic (USD per share) | $0 | $0 | $0.05 | $0 | $0 | $0 | $0.05 | $0 | $0.05 | $0 | ($0.05) | $0 | |||
Loss from discontinued operations – diluted (USD per share) | $0 | $0 | $0.05 | $0 | $0 | $0 | $0.05 | $0 | $0.05 | $0 | ($0.05) | $0 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | ($0.80) | ($1.64) | $0.78 | $0.77 | $0.70 | ($0.38) | ($0.85) | $0.31 | ($1.65) | $1.08 | $0.30 | $0.61 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($0.80) | ($1.64) | $0.78 | $0.77 | $0.70 | ($0.38) | ($0.85) | $0.31 | ($1.65) | $1.08 | $0.29 | $0.61 | |||
Correction of errors | Other Restatement Adjustment, Survivorship Policies | |||||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||
Policy benefits | $43.30 |
Supplemental_Unaudited_Quarter5
Supplemental Unaudited Quarterly Financial Information Consolidated Statements of Cash Flows (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||||||||
Net income (loss) | ($28.10) | ($70.90) | ($50.50) | ($99.70) | ($72.90) | ($117.10) | ($213.20) | $26 | ($165) |
Net realized investment gains / losses | 26.9 | 14.6 | 22.7 | 9.3 | 26.5 | -0.8 | 40.5 | -20.4 | 23.7 |
Policy acquisition costs deferred | -14.6 | -15.1 | -33.2 | -29.3 | -54.9 | -43.5 | -72.9 | -58.4 | -58.1 |
Policy acquisition cost amortization | 24.6 | 49.6 | 43.7 | 76.7 | 73.1 | 105.3 | 119.6 | 103.1 | 196.1 |
Amortization and depreciation | 1.5 | 2.2 | 3 | 4.3 | 4.5 | 6.3 | 6 | 8.2 | 12 |
Interest credited | 35.6 | 30.5 | 70.2 | 63.7 | 113.4 | 99.8 | 151.5 | 139 | 123.2 |
Equity in earnings of limited partnerships and other investments | -20.1 | -8.6 | -26.1 | -21.3 | -44.4 | -35.3 | -59.7 | -58.9 | -59.8 |
Change in: | |||||||||
Accrued investment income | -44 | -45.8 | -79 | -70.1 | -131.9 | -102.8 | -109.2 | -86 | -122.8 |
Deferred income taxes, net | -8.3 | 0 | -25.6 | 0 | -22.5 | 0 | 0 | 0 | -20.5 |
Reinsurance recoverable | -12.9 | -2.5 | 5.8 | 13.8 | 26.2 | 0.7 | 39.1 | -8.4 | -22.7 |
Policy liabilities and accruals | -142.6 | -172 | -237.5 | -249.1 | -367.3 | -355.5 | -430.9 | -591.8 | -425.4 |
Dividend obligations | 30.2 | 5.5 | 29.5 | 11.5 | 46.5 | 35.7 | 72.4 | 57.1 | 77.3 |
Pension and post-employment liabilities | -4.9 | -0.8 | -10 | -4.4 | -15.3 | -13.1 | -13.3 | -14.1 | -20.8 |
Impact of operating activities of consolidated investment entities, net | -6.7 | 1.4 | -8.8 | -2 | -9.7 | -3.6 | -33.8 | -2.1 | -11.8 |
Other operating activities, net | 23.1 | 25.3 | 14.6 | 36.2 | 2.2 | 46.2 | 3.4 | 60.1 | -34.3 |
Cash provided by (used for) operating activities | -140.3 | -186.6 | -281.2 | -260.4 | -426.5 | -377.7 | -500.5 | -446.6 | -520.8 |
Purchases of: | |||||||||
Purchases of available-for-sale debt securities | -338.4 | -384.1 | -871.4 | -976.6 | -1,754.20 | -1,653.20 | -2,272.60 | -2,460.70 | -1,796.90 |
Available-for-sale equity securities | -1.8 | -10 | -2.7 | -18.5 | -52.1 | -24.9 | -53.6 | -59.6 | -10.9 |
Short-term investments | -649.3 | -699.5 | -1,058.90 | -849.4 | -1,584.60 | -1,089.10 | -1,794.40 | -1,559.70 | -1,814 |
Derivative instruments | -17.8 | -44.8 | -33 | -59.8 | -51.3 | -72.4 | -62.7 | -101.9 | -50.8 |
Fair value investments | -0.3 | -14.9 | -0.6 | -20 | -0.7 | -26.7 | -2.7 | -27 | -38.7 |
Sales, repayments and maturities of: | |||||||||
Available-for-sale debt securities | 338.7 | 428.4 | 662.7 | 912.5 | 1,187.70 | 1,519.60 | 1,651.90 | 2,130.70 | 1,871 |
Available-for-sale equity securities | 3.1 | 1.1 | 4.4 | 2.8 | 16.9 | 8.3 | 21.4 | 13.4 | 22.4 |
Short-term investments | 489.8 | 699.7 | 915.6 | 949.6 | 1,856.10 | 1,334.50 | 2,005.90 | 1,909.20 | 1,382.70 |
Derivative instruments | 42.1 | 12.5 | 53.6 | 22.4 | 73.5 | 34 | 96.2 | 49.5 | 26.7 |
Fair value and other investments | 2.8 | 4.6 | 14.1 | 11.7 | 16.7 | 18.2 | 23.8 | 26.6 | 49.3 |
Contributions to limited partnerships and limited liability corporations | -18.2 | -9.8 | -34 | -27.7 | -58 | -51.8 | -84.2 | -72.4 | -101.8 |
Distributions from limited partnerships and limited liability corporations | 30.3 | 33.6 | 64 | 58.8 | 104.5 | 78.9 | 157.1 | 146.8 | 138.4 |
Policy loans, net | 32 | 49.5 | 78 | 57.3 | 91 | 86.8 | 78 | 80.8 | 126.5 |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other investing activities, net | -2 | -0.8 | -4.4 | -4.2 | -7.7 | -6.9 | -8.9 | -10.4 | -7.7 |
Cash provided by (used for) investing activities | -89 | 65.5 | -212.6 | 58.9 | -162.2 | 155.3 | -244.8 | 65.3 | -203.8 |
FINANCING ACTIVITIES: | |||||||||
Policyholder deposits | 361.3 | 362.9 | 713 | 708.9 | 1,099.60 | 1,025.10 | 1,457.20 | 1,355 | 1,597.40 |
Policyholder withdrawals | -321.5 | -282.7 | -611.9 | -578.1 | -893.6 | -857.4 | -1,200.60 | -1,140.40 | -1,138.80 |
Net transfers (to) from separate accounts | 118.2 | 89.5 | 227.7 | 193 | 330.6 | 299.3 | 439.4 | 412.9 | 379.8 |
Impact of financing activities of consolidated investment entities, net | 0.1 | 0.6 | 0.2 | 1.1 | 0.1 | 2.3 | 4.1 | 4.5 | 1.3 |
Other financing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39.6 |
Cash provided by (used for) financing activities | 158.1 | 170.3 | 329 | 324.9 | 536.7 | 469.3 | 700.1 | 632 | 800.1 |
Change in cash and cash equivalents | -71.2 | 49.2 | -164.8 | 123.4 | -52 | 246.9 | -45.2 | 250.7 | 75.5 |
Change in cash included in discontinued operations assets | -0.7 | -0.4 | -1.4 | -0.5 | -1.2 | -0.5 | -1.2 | -0.7 | 2.7 |
Cash and cash equivalents, beginning of period | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 168.2 |
Cash and cash equivalents, end of period | 424.5 | 295.2 | 330.2 | 369.3 | 443.2 | 492.8 | 450 | 496.4 | 246.4 |
Supplemental Disclosure of Cash Flow Information | |||||||||
Income taxes (paid) refunded | 0 | -0.1 | 0 | -8.7 | 0 | -8.5 | -0.2 | -5.4 | -18.4 |
Interest expense on indebtedness paid | -4.7 | -4.7 | -13.9 | -13.9 | -18.6 | -18.6 | -27.9 | -27.9 | -30.4 |
Non-Cash Transactions During the Period | |||||||||
Investment exchanges | 13 | 37.7 | 62.4 | 74.4 | 62.4 | 85.7 | 93.3 | 98.8 | 96 |
Policy benefits | 230.3 | 270.6 | 531.6 | 542.8 | 795.2 | 802.4 | 1,119.20 | 965.1 | 1,162.40 |
As reported | |||||||||
OPERATING ACTIVITIES: | |||||||||
Net income (loss) | -33.3 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | |
Net realized investment gains / losses | 25.7 | 15.9 | 21.6 | 8.7 | 23.7 | -3.8 | -25.7 | 17.4 | |
Policy acquisition costs deferred | -14.4 | -14.9 | -31.7 | -28.9 | -52.3 | -42.8 | -57.5 | -58.1 | |
Policy acquisition cost amortization | 22.4 | 45.3 | 39.8 | 77.5 | 64.7 | 110.6 | 113.7 | 200 | |
Amortization and depreciation | 1.5 | 2.2 | 3 | 4.3 | 4.5 | 6.3 | 8.2 | 12 | |
Interest credited | 35.6 | 30.5 | 70.2 | 63.7 | 113.4 | 99.8 | 139 | 123.2 | |
Equity in earnings of limited partnerships and other investments | -23.8 | -8.7 | -29.8 | -21.4 | -48.1 | -35.4 | -55.3 | -60.8 | |
Change in: | |||||||||
Accrued investment income | -43.3 | -45.8 | -81.1 | -70.1 | -134 | -102.8 | -86.5 | -123.2 | |
Deferred income taxes, net | -6.1 | 0 | -24.6 | 0 | -20.6 | 0 | 0.3 | -19.8 | |
Reinsurance recoverable | -12.2 | -11 | 8.6 | 5.8 | 28.7 | -6.7 | -21.2 | -19.2 | |
Policy liabilities and accruals | -137.6 | -116.8 | -237.4 | -193.8 | -365.1 | -299.3 | -520 | -426.9 | |
Dividend obligations | 31.8 | -39.4 | 30.9 | -33.5 | 47.5 | -9.4 | 10.8 | 82.9 | |
Pension and post-employment liabilities | -4.9 | -0.8 | -10 | -4.4 | -15.3 | -13.1 | -14.1 | -20.8 | |
Impact of operating activities of consolidated investment entities, net | -5.6 | 1.4 | -7.7 | -2 | -8.6 | -3.6 | -3.2 | -11.8 | |
Other operating activities, net | 23.9 | 24.2 | 14.6 | 35.2 | 4.2 | 45.8 | 59.8 | -35.3 | |
Cash provided by (used for) operating activities | -140.3 | -186.6 | -281.2 | -260.4 | -423.1 | -377.7 | -446.6 | -520.8 | |
Purchases of: | |||||||||
Purchases of available-for-sale debt securities | -338.5 | -394.1 | -871.9 | -992.7 | -1,798.40 | -1,673.60 | -2,501.10 | -1,796.90 | |
Available-for-sale equity securities | -1.7 | 0 | -2.2 | -2.4 | -7.9 | -4.5 | -19.2 | -10.9 | |
Short-term investments | -649.3 | -699.5 | -1,058.90 | -849.4 | -1,584.60 | -1,089.10 | -1,559.70 | -1,814 | |
Derivative instruments | -17.8 | -44.8 | -33 | -59.8 | -51.3 | -72.4 | -101.9 | -50.8 | |
Fair value investments | -0.3 | -14.9 | -0.6 | -20 | -0.7 | -26.7 | -27 | -38.7 | |
Sales, repayments and maturities of: | |||||||||
Available-for-sale debt securities | 338.8 | 428.4 | 662.8 | 912.6 | 1,194.50 | 1,524.10 | 2,137.20 | 1,880.90 | |
Available-for-sale equity securities | 3 | 1.1 | 4.3 | 2.7 | 10.1 | 3.8 | 6.9 | 12.5 | |
Short-term investments | 489.8 | 699.7 | 915.6 | 949.6 | 1,856.10 | 1,334.50 | 1,909.20 | 1,382.70 | |
Derivative instruments | 42.1 | 12.5 | 53.6 | 22.4 | 73.5 | 34 | 49.5 | 26.7 | |
Fair value and other investments | 2.8 | 4.6 | 14.1 | 11.7 | 16.7 | 18.2 | 26.6 | 49.3 | |
Contributions to limited partnerships and limited liability corporations | -18.2 | -9.8 | -34 | -27.7 | -58 | -51.8 | -72.4 | -101.8 | |
Distributions from limited partnerships and limited liability corporations | 30.3 | 33.6 | 64 | 58.8 | 104.5 | 78.9 | 146.8 | 138.4 | |
Policy loans, net | 32 | 49.5 | 78 | 57.3 | 91 | 86.8 | 80.8 | 126.5 | |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other investing activities, net | -2 | -0.8 | -4.4 | -4.2 | -7.7 | -6.9 | -10.4 | -7.7 | |
Cash provided by (used for) investing activities | -89 | 65.5 | -212.6 | 58.9 | -162.2 | 155.3 | 65.3 | -203.8 | |
FINANCING ACTIVITIES: | |||||||||
Policyholder deposits | 361.3 | 362.9 | 713 | 708.9 | 1,080.90 | 1,025.10 | 1,355 | 1,597.40 | |
Policyholder withdrawals | -321.5 | -282.7 | -611.9 | -578.1 | -878.3 | -857.4 | -1,140.40 | -1,138.80 | |
Net transfers (to) from separate accounts | 118.2 | 89.5 | 227.7 | 193 | 330.6 | 299.3 | 412.9 | 379.8 | |
Impact of financing activities of consolidated investment entities, net | 0.1 | 0.6 | 0.2 | 1.1 | 0.1 | 2.3 | 4.5 | 1.3 | |
Other financing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39.6 | |
Cash provided by (used for) financing activities | 158.1 | 170.3 | 329 | 324.9 | 533.3 | 469.3 | 632 | 800.1 | |
Change in cash and cash equivalents | -71.2 | 49.2 | -164.8 | 123.4 | -52 | 246.9 | 250.7 | 75.5 | |
Change in cash included in discontinued operations assets | -0.7 | -0.4 | -1.4 | -0.5 | -1.2 | -0.5 | -0.7 | 2.7 | |
Cash and cash equivalents, beginning of period | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 496.4 | 246.4 | 168.2 |
Cash and cash equivalents, end of period | 424.5 | 295.2 | 330.2 | 369.3 | 443.2 | 492.8 | 496.4 | 246.4 | |
Supplemental Disclosure of Cash Flow Information | |||||||||
Income taxes (paid) refunded | 0 | -0.1 | 0 | -8.7 | 0 | -8.5 | -5.4 | -18.4 | |
Interest expense on indebtedness paid | -4.7 | -4.7 | -13.9 | -13.9 | -18.6 | -18.6 | -27.9 | -30.4 | |
Non-Cash Transactions During the Period | |||||||||
Investment exchanges | 13 | 37.7 | 62.4 | 74.4 | 62.4 | 85.7 | 98.8 | 96 | |
Policy benefits | 236 | 318.8 | 534.5 | 591.6 | 799.9 | 852.7 | 1,026.50 | 1,166.10 | |
Correction of errors | |||||||||
OPERATING ACTIVITIES: | |||||||||
Net income (loss) | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | |
Net realized investment gains / losses | 1.2 | -1.3 | 1.1 | 0.6 | 2.8 | 3 | 5.3 | 6.3 | |
Policy acquisition costs deferred | -0.2 | -0.2 | -1.5 | -0.4 | -2.6 | -0.7 | -0.9 | 0 | |
Policy acquisition cost amortization | 2.2 | 4.3 | 3.9 | -0.8 | 8.4 | -5.3 | -10.6 | -3.9 | |
Amortization and depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Equity in earnings of limited partnerships and other investments | 3.7 | 0.1 | 3.7 | 0.1 | 3.7 | 0.1 | -3.6 | 1 | |
Change in: | |||||||||
Accrued investment income | -0.7 | 0 | 2.1 | 0 | 2.1 | 0 | 0.5 | 0.4 | |
Deferred income taxes, net | -2.2 | 0 | -1 | 0 | -1.9 | 0 | -0.3 | -0.7 | |
Reinsurance recoverable | -0.7 | 8.5 | -2.8 | 8 | -2.5 | 7.4 | 12.8 | -3.5 | |
Policy liabilities and accruals | -5 | -55.2 | -0.1 | -55.3 | -2.2 | -56.2 | -71.8 | 1.5 | |
Dividend obligations | -1.6 | 44.9 | -1.4 | 45 | -1 | 45.1 | 46.3 | -5.6 | |
Pension and post-employment liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Impact of operating activities of consolidated investment entities, net | -1.1 | 0 | -1.1 | 0 | -1.1 | 0 | 1.1 | 0 | |
Other operating activities, net | -0.8 | 1.1 | 0 | 1 | -2 | 0.4 | 0.3 | 1 | |
Cash provided by (used for) operating activities | 0 | 0 | 0 | 0 | -3.4 | 0 | 0 | 0 | |
Purchases of: | |||||||||
Purchases of available-for-sale debt securities | 0.1 | 10 | 0.5 | 16.1 | 44.2 | 20.4 | 40.4 | 0 | |
Available-for-sale equity securities | -0.1 | -10 | -0.5 | -16.1 | -44.2 | -20.4 | -40.4 | 0 | |
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivative instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Fair value investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Sales, repayments and maturities of: | |||||||||
Available-for-sale debt securities | -0.1 | 0 | -0.1 | -0.1 | -6.8 | -4.5 | -6.5 | -9.9 | |
Available-for-sale equity securities | 0.1 | 0 | 0.1 | 0.1 | 6.8 | 4.5 | 6.5 | 9.9 | |
Short-term investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivative instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Fair value and other investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Contributions to limited partnerships and limited liability corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Distributions from limited partnerships and limited liability corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Policy loans, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other investing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cash provided by (used for) investing activities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
FINANCING ACTIVITIES: | |||||||||
Policyholder deposits | 0 | 0 | 0 | 0 | 18.7 | 0 | 0 | 0 | |
Policyholder withdrawals | 0 | 0 | 0 | 0 | -15.3 | 0 | 0 | 0 | |
Net transfers (to) from separate accounts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Impact of financing activities of consolidated investment entities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other financing activities, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cash provided by (used for) financing activities | 0 | 0 | 0 | 0 | 3.4 | 0 | 0 | 0 | |
Change in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Change in cash included in discontinued operations assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Supplemental Disclosure of Cash Flow Information | |||||||||
Income taxes (paid) refunded | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Interest expense on indebtedness paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Non-Cash Transactions During the Period | |||||||||
Investment exchanges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Other Restatement Adjustment, Survivorship Policies | Correction of errors | |||||||||
Non-Cash Transactions During the Period | |||||||||
Policy benefits | $43.30 |
Supplemental_Unaudited_Quarter6
Supplemental Unaudited Quarterly Financial Information Consolidated Statements of Changes in Stockholders' Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | $533.70 | $563.30 | $565.90 | $601.30 | $384.60 | $385.10 | $426.60 | $511.40 | $601.30 | $511.40 | $601.30 | $511.40 | $601.30 | $511.40 | $691.40 | |||||||||||||
Other comprehensive income (loss) | -7.2 | 20.2 | -7.3 | 15.7 | -13.1 | -14.2 | 12.9 | -27.3 | 5.7 | -11.6 | -49.4 | 58.8 | -16.9 | |||||||||||||||
Net income (loss) | -140.3 | -22.4 | -22.4 | -28.1 | 143.1 | -17.4 | -28.8 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 | |||||||||||||
Change in stockholders’ equity | -35.4 | -84.8 | -38 | -126.3 | -67.6 | -126.8 | -254.7 | 89.9 | -180 | |||||||||||||||||||
Balance, end of period | 346.6 | 533.7 | 563.3 | 565.9 | 601.3 | 384.6 | 385.1 | 426.6 | 563.3 | 385.1 | 533.7 | 384.6 | 346.6 | 601.3 | 511.4 | |||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 1.3 | [1] | ||||||||||||||||||||||||||
Balance, end of period | 0.1 | [1] | 0.1 | 0.1 | 0.1 | 0.1 | [1] | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | [1] | 0.1 | [1] | 0.1 | [1] | 1.3 | [1] | ||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | 2,630.50 | [1] | ||||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | -0.2 | -0.4 | -0.1 | -0.4 | -0.3 | [1] | 0 | [1] | 1.4 | [1] | |||||||||||||||||
Balance, end of period | 2,632.80 | [1] | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | [1] | 2,633.10 | 2,633 | 2,632.90 | 2,632.70 | 2,633 | 2,632.70 | 2,633.10 | 2,632.80 | [1] | 2,633.10 | [1] | 2,633.10 | [1] | ||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | -185 | -243.8 | -185 | -243.8 | -185 | -243.8 | -185 | -243.8 | -226.9 | |||||||||||||||||||
Other comprehensive income (loss) | -7.3 | -14.2 | 12.9 | -27.3 | 5.7 | -11.6 | -49.4 | 58.8 | -16.9 | |||||||||||||||||||
Balance, end of period | -234.4 | -179.3 | -172.1 | -192.3 | -185 | -255.4 | -271.1 | -258 | -172.1 | -271.1 | -179.3 | -255.4 | -234.4 | -185 | -243.8 | |||||||||||||
RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | -1,675.80 | -1,701.80 | -1,675.80 | -1,701.80 | -1,675.80 | -1,701.80 | -1,675.80 | -1,701.80 | -1,536.80 | |||||||||||||||||||
Net income (loss) | -28.1 | -70.9 | -50.5 | -99.7 | -72.9 | -117.1 | -213.2 | 26 | -165 | |||||||||||||||||||
Balance, end of period | -1,889 | -1,748.70 | -1,726.30 | -1,703.90 | -1,675.80 | -1,818.90 | -1,801.50 | -1,772.70 | -1,726.30 | -1,801.50 | -1,748.70 | -1,818.90 | -1,889 | -1,675.80 | -1,701.80 | |||||||||||||
TREASURY STOCK, AT COST: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | -179.5 | [1] | ||||||||||||||||||||||||||
Balance, end of period | -182.9 | [1] | -182.9 | -182.9 | -182.9 | -182.9 | [1] | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | [1] | -182.9 | [1] | -182.9 | [1] | -179.5 | [1] | ||||||
Total Stockholders Equity Attributable To The Phoenix Companies, Inc. | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 589.5 | 504.7 | 589.5 | 504.7 | 589.5 | 504.7 | 589.5 | 504.7 | 688.6 | |||||||||||||||||||
Change in stockholders’ equity | -35.4 | -85.3 | -38 | -127.1 | -67.6 | -128.7 | -262.9 | 84.8 | -183.9 | |||||||||||||||||||
Balance, end of period | 326.6 | 521.9 | 551.5 | 554.1 | 589.5 | 376 | 377.6 | 419.4 | 551.5 | 377.6 | 521.9 | 376 | 326.6 | 589.5 | 504.7 | |||||||||||||
NONCONTROLLING INTERESTS: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 11.8 | 6.7 | 11.8 | 6.7 | 11.8 | 6.7 | 11.8 | 6.7 | 2.8 | |||||||||||||||||||
Change in noncontrolling interests | 0 | 0.5 | 0 | 0.8 | 0 | 1.9 | ||||||||||||||||||||||
Balance, end of period | 20 | 11.8 | 11.8 | 11.8 | 8.6 | 7.5 | 7.2 | 11.8 | 7.5 | 11.8 | 8.6 | 20 | 2.8 | |||||||||||||||
As reported | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 544.8 | 541.3 | 583.7 | 384.7 | 430.6 | 510.5 | 583.7 | 510.5 | 583.7 | 510.5 | 583.7 | 510.5 | 695.7 | |||||||||||||||
Other comprehensive income (loss) | -5.7 | 18.2 | -10.2 | 15.4 | -13.5 | -11.5 | 8 | -25 | 2.3 | -9.6 | 64.1 | -18.6 | ||||||||||||||||
Net income (loss) | -18.2 | -14.3 | -33.3 | -21.8 | -32.8 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | ||||||||||||||||
Change in stockholders’ equity | -42.4 | -79.9 | -38.9 | -125.8 | -62.8 | -131 | 73.2 | -185.2 | ||||||||||||||||||||
Balance, end of period | 520.9 | 544.8 | 541.3 | 583.7 | 379.5 | 384.7 | 430.6 | 544.8 | 384.7 | 520.9 | 379.5 | 583.7 | 510.5 | |||||||||||||||
As reported | Common Stock | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 1.3 | |||||||||||||||||||||||||||
Balance, end of period | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 1.3 | ||||||||||||||
As reported | ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633.10 | 2,630.50 | |||||||||||||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | -0.2 | -0.4 | -0.1 | -0.4 | 0 | 0 | 1.4 | ||||||||||||||||||||
Balance, end of period | 2,632.70 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | 2,633 | 2,632.90 | 2,632.70 | 2,633 | 2,632.70 | 2,633.10 | 2,633.10 | 2,633.10 | |||||||||||||||
As reported | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | -185.2 | -249.3 | -185.2 | -249.3 | -185.2 | -249.3 | -185.2 | -249.3 | -230.7 | |||||||||||||||||||
Other comprehensive income (loss) | -10.2 | -11.5 | 8 | -25 | 2.3 | -9.6 | 64.1 | -18.6 | ||||||||||||||||||||
Balance, end of period | -182.9 | -177.2 | -195.4 | -185.2 | -258.9 | -274.3 | -260.8 | -177.2 | -274.3 | -182.9 | -258.9 | -185.2 | -249.3 | |||||||||||||||
As reported | RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | -1,692.10 | -1,697.20 | -1,692.10 | -1,697.20 | -1,692.10 | -1,697.20 | -1,692.10 | -1,697.20 | -1,528.70 | |||||||||||||||||||
Net income (loss) | -33.3 | -68.7 | -47.6 | -101.5 | -65.8 | -123.3 | 5.1 | -168.5 | ||||||||||||||||||||
Balance, end of period | -1,757.90 | -1,739.70 | -1,725.40 | -1,692.10 | -1,820.50 | -1,798.70 | -1,765.90 | -1,739.70 | -1,798.70 | -1,757.90 | -1,820.50 | -1,692.10 | -1,697.20 | |||||||||||||||
As reported | TREASURY STOCK, AT COST: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | -179.5 | |||||||||||||||||||||||||||
Balance, end of period | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -182.9 | -179.5 | ||||||||||||||
As reported | Total Stockholders Equity Attributable To The Phoenix Companies, Inc. | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 573 | 503.8 | 573 | 503.8 | 573 | 503.8 | 573 | 503.8 | 692.9 | |||||||||||||||||||
Change in stockholders’ equity | -43.5 | -80.4 | -40 | -126.6 | -63.9 | -132.9 | 69.2 | -189.1 | ||||||||||||||||||||
Balance, end of period | 509.1 | 533 | 529.5 | 573 | 370.9 | 377.2 | 423.4 | 533 | 377.2 | 509.1 | 370.9 | 573 | 503.8 | |||||||||||||||
As reported | NONCONTROLLING INTERESTS: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 10.7 | 6.7 | 10.7 | 6.7 | 10.7 | 6.7 | 10.7 | 6.7 | 2.8 | |||||||||||||||||||
Change in noncontrolling interests | 1.1 | 0.5 | 1.1 | 0.8 | 1.1 | 1.9 | ||||||||||||||||||||||
Balance, end of period | 11.8 | 11.8 | 11.8 | 8.6 | 7.5 | 7.2 | 11.8 | 7.5 | 11.8 | 8.6 | 2.8 | |||||||||||||||||
Correction of errors | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 17.6 | 0.9 | 17.6 | 0.9 | 17.6 | 0.9 | 17.6 | 0.9 | -4.3 | |||||||||||||||||||
Net income (loss) | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | ||||||||||||||||||||
Change in stockholders’ equity | 7 | -4.9 | 0.9 | -0.5 | -4.8 | 4.2 | 16.7 | 5.2 | ||||||||||||||||||||
Balance, end of period | 12.8 | 18.5 | 24.6 | 17.6 | 5.1 | 0.4 | -4 | 18.5 | 0.4 | 12.8 | 5.1 | 17.6 | 0.9 | |||||||||||||||
Correction of errors | Common Stock | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 0 | |||||||||||||||||||||||||||
Balance, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Correction of errors | ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Balance, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Correction of errors | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 0.2 | 5.5 | 0.2 | 5.5 | 0.2 | 5.5 | 0.2 | 5.5 | 3.8 | |||||||||||||||||||
Other comprehensive income (loss) | 2.9 | -2.7 | 4.9 | -2.3 | 3.4 | -2 | -5.3 | 1.7 | ||||||||||||||||||||
Balance, end of period | 3.6 | 5.1 | 3.1 | 0.2 | 3.5 | 3.2 | 2.8 | 5.1 | 3.2 | 3.6 | 3.5 | 0.2 | 5.5 | |||||||||||||||
Correction of errors | RETAINED EARNINGS (ACCUMULATED DEFICIT): | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 16.3 | -4.6 | 16.3 | -4.6 | 16.3 | -4.6 | 16.3 | -4.6 | -8.1 | |||||||||||||||||||
Net income (loss) | 5.2 | -2.2 | -2.9 | 1.8 | -7.1 | 6.2 | 20.9 | 3.5 | ||||||||||||||||||||
Balance, end of period | 9.2 | 13.4 | 21.5 | 16.3 | 1.6 | -2.8 | -6.8 | 13.4 | -2.8 | 9.2 | 1.6 | 16.3 | -4.6 | |||||||||||||||
Correction of errors | TREASURY STOCK, AT COST: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 0 | |||||||||||||||||||||||||||
Balance, end of period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Correction of errors | Total Stockholders Equity Attributable To The Phoenix Companies, Inc. | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 16.5 | 0.9 | 16.5 | 0.9 | 16.5 | 0.9 | 16.5 | 0.9 | -4.3 | |||||||||||||||||||
Change in stockholders’ equity | 8.1 | -4.9 | 2 | -0.5 | -3.7 | 4.2 | 15.6 | 5.2 | ||||||||||||||||||||
Balance, end of period | 12.8 | 18.5 | 24.6 | 16.5 | 5.1 | 0.4 | -4 | 18.5 | 0.4 | 12.8 | 5.1 | 16.5 | 0.9 | |||||||||||||||
Correction of errors | NONCONTROLLING INTERESTS: | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Balance, beginning of period | 1.1 | 0 | 1.1 | 0 | 1.1 | 0 | 1.1 | 0 | 0 | |||||||||||||||||||
Change in noncontrolling interests | -1.1 | 0 | -1.1 | 0 | -1.1 | 0 | ||||||||||||||||||||||
Balance, end of period | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |||||||||||||||||
[1] | Reflects the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 10 to our consolidated financial statements for additional information on the reverse stock split. |