The Phoenix Companies has posted a net loss of £127 million for 2015, faring slightly better than its $209 million loss in the previous year.
The insurance firm said the loss was partially caused by unfavourable mortality, compared with expectations, driven by unfavourable universal life experience.
Other drivers included external financial reporting expenses of $51.9 million, a $48.5 million charge to settle class actions relating to certain cost of insurance (COI) rate adjustments, and derivative losses of $34.2 million, which were driven by volatility in equity markets and interest rates.
The firm also suffered net other-than-temporary impairment losses of $22.8 million.
The company’s life insurance sector performed well last year however, posting annualised premium of $18.5 million, compared with $4.8 million in 2014.
James Wehr, president and chief executive officer, said: “In 2015, Phoenix repositioned our life companies with an intercompany reinsurance treaty that benefited statutory capital, and we implemented product changes that increased profitability.
“We also increased our distribution company’s revenue and EBITDA through growth in third-party business. At the same time, we made substantial progress on remediation and reducing financial reporting expenses.”
“Wehr also said the firm’s merger transaction with Nassau Reinsurance Group received stockholder approval in December and that this deal is expected to close in the second quarter of this year."
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Phoenix Companies, Ful Year 2015 Results, Market votality, James Wehr, North America