Last week, Fitch Ratings (Fitch) withdrew the ‘B’ holding company Issuer Default Rating of Phoenix Companies, Inc. (Phoenix) and the ‘BB+’ Insurer Financial Strength ratings of Phoenix’s primary insurance operating subsidiaries.
The Ratings are being withdrawn without resolving the current Rating Watch Negative.
The move by Fitch was initiated by a lack of information on Phoenix and its subsidiaries. After the company recently announced that it would not file audited statutory statements for its insurance subsidiaries within the proper time frame allowed by their respective domiciliary states and subsequently stated 2012’s audited statutory statements, when completed, could adversely vary from 2012’s unaudited statutory results.
Phoenix’s recent actions and statements leaves the door open for material restatements of statutory financials as well as general accepted accounting principle (GAAP) financial statements. Fitch feels that it no longer has enough sufficient and reliable information to maintain ratings and has withdrawn the following: Phoenix Companies, Inc., IDR ‘B’; Phoenix Life Insurance Company, IFS ‘BB+’ and IDR ‘BB’, along with a $126 million surplus note 7.15% due December 2034 ‘B+’; PHL Variable Insurance Company IFS’BB+.’