The Phoenix Companies PNX Updates Progress on Restatement of GAAP
Financial Statements and Statutory Audit
HARTFORD, Conn.--(BUSINESS WIRE)--June 28, 2013--
The Phoenix Companies, Inc. PNX today provided an update on its
previously announced restatement of GAAP financial statements.
Phoenix said the restatement work continues to move forward and it intends
to provide another update on the restatement within the next 60 days. The
company also expects to provide second quarter 2013 unaudited statutory
financial results for Phoenix Life Insurance Company and second quarter 2013
estimated operating metrics for The Phoenix Companies, Inc. by August 15,
2013.
In addition, the company said it has determined that the completion of the
2012 audited statutory financial statements of its insurance company
subsidiaries is dependent on substantial completion of the GAAP restatement
process, the evaluation of the control environment related to the statutory
and GAAP financial statements and the related audit processes, none of which
is expected to be completed by August 1, 2013. The situation remains fluid
as additional issues are identified and resolved.
Therefore, the company does not expect to file 2012 audited statutory
financial statements of its insurance company subsidiaries with the
insurance regulators in the states in which its insurance company
subsidiaries are authorized to conduct business within the timeframes
afforded by current extensions granted by their respective domiciliary
states. The company intends to seek further extensions as required.
The company advised that the full year 2012 and first quarter 2013 unaudited
statutory financial results for its insurance company subsidiaries filed
with their domiciliary state insurance regulators can continue to be relied
upon, but that situation can change. The company noted that there are errors
arising from the restatement process and the statutory and GAAP audits that
have been identified, some of which have been quantified while others have
not yet been fully assessed and quantified. These errors, along with
additional errors that may be identified, could, individually or in the
aggregate, materially and adversely impact the 2012 unaudited statutory
financial results that have been made publicly available by the company. As
a result, the 2012 audited statutory financial statements, when completed,
could materially and adversely vary from the unaudited 2012 statutory
results.
Unaudited statutory financial results for the third quarter of 2012, full
year 2012, and the first quarter of 2013 were filed on time with state
regulators.
As previously reported, Phoenix is restating GAAP financial statements for
the years ended December 31, 2011, 2010 and 2009, the interim periods for
2011, and the first and second quarters of 2012 and, as a result, delayed
filing its third quarter 2012 Form 10-Q, 2012 Form 10-K and first quarter
2013 Form 10-Q with the Securities and Exchange Commission (SEC). Phoenix
also believes it may not be able to timely file with the SEC its Forms 10-Q
for the second and third quarters of 2013.
After Phoenix announced the restatement on November 8, 2012, the Company
provided updates on the restatement process on March 15, 2013, April 24,
2013 and May 22, 2013.
More details regarding extensions to file the audited 2012 statutory
financial statements with state regulatory authorities and other related
information are contained in Current Reports on Form 8-K filed by Phoenix
and its subsidiary, PHL Variable Insurance Company, with the SEC today.
ABOUT PHOENIX
Headquartered in Hartford, Connecticut, The Phoenix Companies, Inc.
PNX is a boutique life insurance and annuity company serving
customers' retirement and protection needs through select independent
distributors. For more information, visit www.phoenixwm.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The foregoing contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. We intend these
forward-looking statements to be covered by the safe harbor provisions of
the federal securities laws relating to forward-looking statements. These
forward-looking statements include statements relating to, or representing
management's beliefs about, our future transactions, strategies, operations
and financial results, including, without limitation, our expectation to
provide information within anticipated timeframes. Such forward-looking
statements often contain words such as "will," "anticipate," "believe,"
"plan," "estimate," "expect," "intend," "is targeting," "may," "should" and
other similar words or expressions. Forward-looking statements are made
based upon management's current expectations and beliefs and are not
guarantees of future performance. Our ability to provide updated information
about the restatement in the anticipated timeframe, complete the restatement
and resume a timely filing schedule with respect to our SEC filings
reflecting the restatement is subject to a number of contingencies,
including but not limited to, whether we continue to identify errors in our
consolidated financial statements, whether existing systems and processes
can be timely updated, supplemented or replaced, and the number and
complexity of, and periods covered by, the periodic reports that we will
have to file with the SEC to reflect the restatement. Our actual business,
financial condition or results of operations may differ materially from
those suggested by forward-looking statements as a result of risks and
uncertainties which include, among others, those risks and uncertainties
described in any of our other filings with the SEC. Certain other factors
which may impact our business, financial condition or results of operations
or which may cause actual results to differ from such forward-looking
statements are discussed or included in our reports filed with the SEC and
are available on our website at www.phoenixwm.com under "Investor
Relations". You are urged to carefully consider all such factors. We do not
undertake or plan to update or revise forward-looking statements to reflect
actual results, changes in plans, assumptions, estimates or projections, or
other circumstances occurring after the date of this news release, even if
such results, changes or circumstances make it clear that any
forward-looking information will not be realized. If we make any future
public statements or disclosures which modify or impact any of the
forward-looking statements contained in or accompanying this news release,
such statements or disclosures will be deemed to modify or supersede such
statements in this news release.
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