The Phoenix Companies Inc. Reports Operating Results (10-K)
Phoenix Companies Inc. has a market cap of $283.3 million; its shares were traded at around $2.44 with a P/E ratio of 18.8 and P/S ratio of 0.1.
Highlight of Business Operations: As of June 30, 2010, the aggregate market value of voting common equity held by non-affiliates of the registrant was approximately $0.2 billion based on the last reported sale price of $2.11 per share of the common stock on the New York Stock Exchange on that date. On March 7, 2011, the registrant had 116.3 million shares of common stock outstanding; it had no non-voting common equity.
We have $49.4 billion of net life insurance in force and $4.0 billion of annuity assets under management.
We cede risk to other insurers under various agreements that cover individual life insurance policies. 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. As of January 1, 2011, our retention 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. Typically our reinsurance contracts allow us to recapture ceded policies after a specified period. This right is valuable in the event our mortality experience is sufficiently favorable to make it financially advantageous for us to reassume the risk rather than continue paying reinsurance premiums.
The funding requirements of our pension plan are dependent on the performance of the debt and equity markets. We made contributions of $25.7 million to the pension plans during 2010. During 2011, we expect to make contributions of approximately $16.4 million to these plans, of which approximately $3.5 million will be made in the first quarter of 2011. Future market declines could result in additional funding requirements. Also, the funding requirements of our pension plan are sensitive to interest rate changes. Should interest rates decrease materially, the value of the liabilities under the plan would increase, as would the requirement for future funding.
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