The Phoenix Cos. Is Late Again With SEC Filings
October 30, 2014 by Matthew Sturdevant
The Phoenix Cos. and its subsidiary are late again with financial filings due to the U.S. Securities and Exchange Commission, the latest of several delays, and it will result in more fines.
The parent company was supposed to file its second-quarter earnings report for 2014 on Friday, Oct. 24, and the subsidiary, PHL Variable Insurance Co., was supposed to file on Tuesday, Oct. 28.
In a brief statement filed Tuesday morning, Phoenix said neither the parent company’s nor the subsidiary’s filings will be on time.
“The companies intend to file these reports with the SEC as soon as they are completed,” the company said, declining to elaborate on when.
This is the latest delay for the Hartford-based life insurance and annuity company, which has been fined $950,000 by the SEC so far. The most recent fines, $200,000, were levied against Phoenix in August.
The parent company announced on Nov. 8, 2012, that its financial statements for 2009, 2010 and 2011 needed to be restated. During the process, the company discovered and corrected errors related to actuarial finance and valuation, investments, reinsurance accounting, pensions, limited partnerships and other investments, taxable income reporting, and cash flows and changes in classifications.
Phoenix didn’t meet SEC deadlines set in March, and the company set a new timetable on June 3, saying it needed more time to meet financial reporting obligations. The SEC agreed to another revised timeline on Aug. 1.
Phoenix said Tuesday it won’t meet deadlines set in August for second-quarter 2014 results. As a result, the company faces more fines.
The SEC came up with a formula in August requiring Phoenix to pay $20,000 per filing for the first week each is past due, and, for each additional week or partial week, the sum of$20,000 plus “$5,000 multiplied by the number of full weeks that the filing has already been delinquent.”
The company has caught up on a number of other filings this year.
In April, Phoenix restated financial reports for the first two quarters of 2012, all of 2011, all of 2010 and some selected financial data from 2008 and 2009. The previously filed documents had errors in actuarial finance, investments, reinsurance accounting, pensions and cash flows. Additionally, the company is catching up on delayed filings.
In August, Phoenix reported a full-year net income of $5.1 million for 2013 — the first time in six yearsPhoenix was profitable.
The company has reported net losses of $168.5 million in 2012; $30.7 million in 2011; $34.4 million in 2010; and $407.1 million in 2009.
