Phoenix Cos. overstated losses in 2008

The Phoenix Cos. Inc. said that it overstated its 2008 losses by $46 million as a result of an error in accounting for income taxes. That leaves the Hartford, Conn., insurer with a loss of $378.3 million, or $3.31 a share for the fourth quarter, compared with $3.1 million in profit, or 3 cents a share, a year earlier. The carrier also posted a loss of $726 million, or $6.35 a share, for the full year of 2008, compared with a profit of $117.6 million, or $1.03 a share, in 2007. Quarterly adjusted operating income was $29.2 million, up from $18.7 million a year earlier, and $76 million for the full year, down from $123.9 million in 2007. The company also said that it will make some changes this year, including eliminating more than 250 staff positions, or 25% of its head count, over the next two to six months. It also said that it will eliminate its annual shareholder dividend and review its capital requirements and pricing for its products. In an SEC filing, Phoenix indicated that National Life Group of Montpelier, Vt., would suspend the sale of Phoenix’s products through its network of registered representatives. In doing so, National Life joins State Farm Mutual Automobile Insurance Co. of Bloomington, Ill., which also told Phoenix it wouldn’t sell its products.