The Phoenix Companies

Last updated

The Phoenix Companies, Inc., is a financial services company that traces its origins to 1851.

Contents

Phoenix was acquired by Nassau Financial Group in 2016 and remains headquartered in Hartford, Connecticut, with 650 employees as of 2015. [1]

History

The Phoenix Companies comprises a number of businesses that trace their origins to the mid-19th century.

19th century

In 1851, the oldest predecessor of The Phoenix Companies, The American Temperance Life Insurance Company, was founded. The American Temperance Life Insurance Company was a part-mutual, part-stock company that insured only those who abstained from alcohol and was founded by a group of prominent Hartford businessmen as well as religious and civic leaders. As the temperance movement began to wane, American Temperance Life Insurance Company changed its name to Phoenix Mutual Life Insurance Company in 1860, accepting all customers. The company's new name is in reference to the mythological Phoenix, rather than the city.

In 1857, an agent from the Phoenix Companies, Sylvester M. Wait, assigned the name Phoenix, named after the company, to a small town in Southern Oregon.

In 1860, another early predecessor, the Home Life Insurance Company was formed in Brooklyn, New York, and was the first life insurer authorized by the New York Insurance Department. In 1894, Home Life built its 16-story headquarters, the Home Life Insurance Company Building, on Broadway in New York City, which as one of the world's first steel-framed skyscrapers for a short time was one of the world's tallest buildings. [2]

The company's headquarters
in Hartford, Connecticut Boat Building, Hartford CT.jpg
The company's headquarters
in Hartford, Connecticut

20th century

In the early 20th century, the company pioneered several innovations in the marketing of insurance. In 1901, Phoenix published The Field, believed to be the first agent newsletter and in 1906 produced "A Prospectus and Ten Lessons Upon Life Insurance," the first agent training course used by a life insurance company. In 1912, Phoenix became the first life insurance company to use direct mail advertising. In 1923, Phoenix created the first advertisement to promote the value of life insurance and then in 1926, runs advertisements for its retirement income plan in national magazines, with the tag line, "You don't have to be rich to retire at 55 on $200 a month."

Phoenix pioneered other innovations, including offering reduced life insurance premium rates for women for the first time in 1955 and selling group life and health insurance plans to small businesses in 1957. In 1967, Phoenix is the first insurer to offer discounted premiums to nonsmokers.

Since 1992

Phoenix and Home Life completed a merger in 1992 to create the Phoenix Home Life Mutual Insurance Company. At the time of the merger, the combined company would become the 13th-largest mutual life insurance company in the U.S., with assets of nearly $11 billion. [3] The combined company was headquartered in Hartford, where Phoenix was based and the bulk of the senior management of the company came from the Phoenix side of the merger.

In 1995, Phoenix merged its asset management subsidiary, Phoenix Securities Group, with Duff & Phelps, forming Phoenix Duff & Phelps Corporation (later renamed Phoenix Investment Partners), which was publicly held for five years.

In 2001, Phoenix converted from a mutual to a stock company. The company is renamed The Phoenix Companies, Inc., and listed on the New York Stock Exchange under the symbol of PNX. At the same time, Phoenix Home Life Mutual Insurance Company changed its name to Phoenix Life Insurance Company. [4]

In 2008, Phoenix spun off its asset management subsidiary to shareholders as an independent publicly traded company renamed Virtus Investment Partners.

In 2011, Phoenix sold its Goodwin Capital Advisers subsidiary to Conning & Company. [5]

In September 2015, Phoenix announced it was being acquired by Nassau Reinsurance Group, a privately held company, for $217.2 million. [6] The acquisition closed on June 20, 2016 and Phoenix became a private company. [7]

The top of the 16-story steel-framed, marble clad Home Life Insurance Company Building at 256-57 Broadway, built in 1892-94 and designed by Napoleon LeBrun & Sons, Pierre LeBrun, chief architect, in the Renaissance Revival style. The building was one of the tallest in the world at the time it was built. Home Life Insurance Company Building 256-57 Broadway top.jpg
The top of the 16-story steel-framed, marble clad Home Life Insurance Company Building at 256-57 Broadway, built in 1892–94 and designed by Napoleon LeBrun & Sons, Pierre LeBrun, chief architect, in the Renaissance Revival style. The building was one of the tallest in the world at the time it was built.

Restatement

On March 15, 2004, Trust Operations were discontinued in the fourth quarter of 2003. Prior-period results have been restated. [9] On March 11, 2005, the company's fourth-quarter and full-year 2004 net income reflected revised after-tax net gains of $40.4 million and $41.2 million, respectively, related to Phoenix's 16.5 percent equity stake in Aberdeen. [10]

Related Research Articles

<span class="mw-page-title-main">Aon (company)</span> Professional services firm

Aon plc is a global professional services firm that offers a range of risk-mitigation products. Aon has approximately 50,000 employees across 120 countries.

<span class="mw-page-title-main">American International Group</span> American multinational finance and insurance corporation

American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. As of 2023, AIG employed 25,200 people. The company operates through three core businesses: general insurance, life & retirement, and a standalone technology-enabled subsidiary. General Insurance includes Commercial, Personal Insurance, U.S. and International field operations. Life & Retirement includes Group Retirement, Individual Retirement, Life, and Institutional Markets. AIG is the title sponsor of the AIG Women's Open golf tournament. In 2023, for the sixth consecutive year, DiversityInc named AIG among the Top 50 Companies for Diversity list.

<span class="mw-page-title-main">Swiss Re</span> Swiss reinsurance company

Swiss Re Ltd is a Swiss reinsurance company founded in 1863 and headquartered in Zürich, Switzerland. It is one of the world's largest reinsurers, as measured by gross premiums written. Swiss Re operates through around 80 offices in 29 countries and employs over 14,000 people. It was ranked 519th on the Forbes Global 2000 list and ranked 316th on the Fortune Global 500 in 2023. Swiss Re is listed on the SIX Swiss Exchange.

<span class="mw-page-title-main">MetLife</span> American insurance company

MetLife, Inc. is the holding corporation for the Metropolitan Life Insurance Company (MLIC), better known as MetLife, and its affiliates. MetLife is among the largest global providers of insurance, annuities, and employee benefit programs, with around 90 million customers in over 60 countries. The firm was founded on March 24, 1868. MetLife ranked No. 43 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.

<span class="mw-page-title-main">Gen Re</span> American reinsurance company

General Reinsurance Corporation is an American multinational property/casualty and life/health reinsurance company offering a range of reinsurance products and services. The company is a primarily direct reinsurer and is represented in all major reinsurance markets worldwide through a network of more than 40 offices. Gen Re is a wholly owned subsidiary of Berkshire Hathaway Inc.

<span class="mw-page-title-main">Zurich Insurance Group</span> Swiss insurance company

Zurich Insurance Group Ltd is a Swiss insurance company, headquartered in Zürich, and the country's largest insurer. As of 2021, the group is the world's 112th largest public company according to Forbes' Global 2000s list, and in 2011, it ranked 94th in Interbrand's top 100 brands.

Chubb Limited is an American-Swiss company incorporated in Zürich, and listed on the New York Stock Exchange (NYSE) where it is a component of the S&P 500. Chubb is a global provider of insurance products covering property and casualty, accident and health, reinsurance, and life insurance and is the largest publicly traded property and casualty insurance company in the world. Chubb operates in 55 countries and territories and in the Lloyd's insurance market in London. Clients of Chubb consist of multinational corporations and local businesses, individuals, and insurers seeking reinsurance coverage. Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance.

<span class="mw-page-title-main">Axa</span> French multinational insurance firm

Axa S.A. is a French multinational insurance company headquartered in the 8th arrondissement of Paris. It also provides investment management and other financial services as part of its subsidiaries. As of 2023, it is the largest financial services company by revenue in France, and the 4th largest French company.

<span class="mw-page-title-main">Lincoln National Corporation</span> American insurance and investment management company

Lincoln National Corporation is a Fortune 200 American holding company, which operates multiple insurance and investment management businesses through subsidiary companies. Lincoln Financial Group is the marketing name for LNC and its subsidiary companies.

<span class="mw-page-title-main">Unum</span> American insurance company

Unum Group is an American insurance company headquartered in Chattanooga, Tennessee. Founded as Union Mutual in 1848 and known as UnumProvident from 1999-2007. The company is part of the Fortune 500. Unum Group was created by the 1999 merger of Unum Corporation and The Provident Companies and comprises four distinct businesses – Unum US, Unum UK, Unum Poland and Colonial Life. Its underwriting insurers include The Paul Revere Life Insurance Company and Provident Life and Accident Insurance Company.

The Massachusetts Mutual Life Insurance Company, also known as MassMutual, is a Springfield, Massachusetts-based life insurance company.

<span class="mw-page-title-main">Federated Hermes</span> American financial services company

Federated Hermes is an investment manager headquartered in Pittsburgh, Pennsylvania, United States. Founded in 1955 and incorporated on October 18, 1957, the company manages $758 billion of customer assets, as of Dec. 31, 2023. The company offers investments spanning equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies, including mutual funds, exchange-traded funds (ETFs), separate accounts, closed-end funds and collective investment funds. Clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.

<span class="mw-page-title-main">CNA Financial</span> American insurance company

CNA Financial Corporation is a financial corporation based in Chicago, Illinois, United States. Its principal subsidiary, Continental Casualty Company (CCC), was founded in 1897, and The Continental Insurance Company (CIC) was organized in 1853. CNA, the current parent company, was incorporated in 1967.

<span class="mw-page-title-main">National Guardian Life</span>

National Guardian Life Insurance Company (NGL) is an American insurance company located in Madison, Wisconsin. It was formed in 1909 and is an independent mutual life insurance company and is licensed to do business in 49 states and the District of Columbia.

Bond insurance, also known as "financial guaranty insurance", is a type of insurance whereby an insurance company guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or security. It is a form of "credit enhancement" that generally results in the rating of the insured security being the higher of (i) the claims-paying rating of the insurer or (ii) the rating the bond would have without insurance.

Virtus Investment Partners, Inc. operates a multi-manager asset management business, comprising a number of individual affiliated managers, each having its own investment process and brand, and the services of unaffiliated sub advisers.

Conning is a global investment management firm serving the insurance industry. Conning supports institutional investors, including pension plans, with investment and asset management products, risk modeling software, and industry research. Founded in 1912, Conning has offices in Boston, Cologne, Hartford, Hong Kong, London, New York and Tokyo.

<span class="mw-page-title-main">Mutual Life Insurance Company of New York</span> American life insurance company

The Mutual Life Insurance Company of New York was the oldest continuous writer of insurance policies in the United States. Incorporated in 1842, it was headquartered at 1740 Broadway, before becoming a wholly owned subsidiary of AXA Financial, Inc. in 2004.

<span class="mw-page-title-main">Talanx</span> German multinational financial services company

Talanx is a German multinational financial services company headquartered in Hanover, Germany. Its core businesses include reinsurance, insurance and asset management. Talanx is Germany's third-largest insurance group and one of the major European insurance groups by premium income. The group operates in more than 150 countries.

Zavarovalnica Triglav d.d. is a Slovenian multinational insurance company headquartered in Ljubljana, Slovenia. Its core businesses are insurance, reinsurance and asset management. In year 2019 it generated a net income of €100.9 million. It is the largest insurance company in Slovenia with a market share of 36%, and has subsidiaries in Croatia, Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia.

References

Notes
  1. Nassau Reinsurance Group To Buy Phoenix Cos., Take Insurer Private, Keep HQ In Hartford, Companies Say
  2. 1 2 White, Norval & Willensky, Elliot (2000). AIA Guide to New York City (4th ed.). New York: Three Rivers Press. ISBN   978-0-8129-3107-5., p.67
  3. Phoenix Mutual Link With Home Life Is Set. New York Times, December 17, 1991
  4. PHOENIX HOME LIFE MAY BEGIN THE SALE OF STOCK. New York Times, April 22, 2000
  5. Conning To Manage $8 Billion In Phoenix Accounts, Acquire Subsidiary. Hartford Courant, Sept. 19, 2011
  6. Nassau Reinsurance Group to Acquire The Phoenix Companies, Inc. for $37.50 Per Share in Cash
  7. The Phoenix Sale Complete; CEO Steps Down. Hartford Courant, June 20, 2016.
  8. New York City Landmarks Preservation Commission; Dolkart, Andrew S.; Postal, Matthew A. (2009). Postal, Matthew A. (ed.). Guide to New York City Landmarks (4th ed.). New York: John Wiley & Sons. ISBN   978-0-470-28963-1., p.28
  9. "The Phoenix Companies, Inc. Files Form 10-K That Includes Revisions to 2003, 2002 and 2001 Net Income; Total Segment Income and 2003 Stockholders' Equity Unchanged".
  10. "The Phoenix Companies, Inc. Revises Fourth Quarter and Full-Year 2004 Net Income Upward by $5.4 Million; Files Form 10-K Today".
Sources