The Board of Directors of Phoenix Life Insurance Company has voted to adjust the policy dividend scale effective January 1, 2013 for all participating life insurance policies in the company’s closed block. The change is part of the company’s continuing response to the prolonged low interest rate environment and other market conditions that have depressed yields in the investment portfolios that support these policies. The company also made adjustments for mortality, or claim, experience that was positive for some product types and policy classes and negative for others.
The effect of the change will be a smaller dividend payment for most policies, although a few will have an increased payment. The impact on a specific policy will vary based on a number of factors including product type, age at issue and length of time in force.
“Phoenix has maintained a competitive dividend track record since we demutualized in 2001 despite the prolonged interest rate and market environment challenges. We are pleased to be able to continue paying dividends that add value to our participating policies above and beyond the guarantees provided,” said James D. Wehr, Phoenix’s president and chief executive officer.
Phoenix projects it will pay its participating policyholders approximately $185 million in dividends in 2013.
The adjustment will affect participating policies in Phoenix’s closed block, which is made up of participating, dividend-paying policies and contracts that were in force when Phoenix demutualized in June 2001. The change to the dividend scale is in accordance with the guidelines for managing the closed block, which were established at that time. Phoenix’s open block, which consists of business written after the demutualization, contains a small number of participating policies with a separate dividend scale that is being maintained for 2013.
ABOUT PHOENIX LIFE INSURANCE COMPANY
Phoenix Life Insurance Company is a wholly owned subsidiary of The Phoenix Companies, Inc. (NYSE: PNX). With a history of keeping its promises since 1851, Phoenix is a boutique life insurance and annuity company serving customers’ retirement and protection needs through select independent distributors. The Phoenix Companies, Inc. is headquartered in Hartford, Connecticut, and Phoenix Life Insurance Company’s statutory home office is in East Greenbush, New York. For more information, visit
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