Hartford, Conn., July 9, 2015 –The Phoenix Companies, Inc. (NYSE: PNX) (“Phoenix”) issued the following statement in response to Standard & Poor’s (“S&P”) placing its long-term counterparty credit rating and the financial strength ratings of Phoenix Life Insurance Company (“PLIC”) and PHL Variable Insurance Company (“PHL Variable”) on CreditWatch:
“S&P’s announcement today follows our recently executed reinsurance treaty and disclosed expectation to de-stack our insurance company subsidiaries. The pending de-stacking results from discussions with the company’s regulators related to the reinsurance treaty. The reinsurance treaty provides significant capital enhancements to both PLIC and PHL Variable. As S&P evaluates the de-stacking, we will provide information necessary for it to assess and rate Phoenix. We continue to believe the reinsurance treaty and de-stacking will create a more streamlined regulatory structure and further strengthen the enterprise.”