Exhibit 99.1
[LOGO] PHOENIX
The Phoenix Companies, Inc. N E W S R E L E A S E
One American Row FOR IMMEDIATE RELEASE
PO Box 5056 Contact: Media Relations: Alice S. Ericson 860-403-5946
Hartford CT 06102-5056 Investor Relations: Peter A. Hofmann 860-403-7100
PhoenixWealthManagement.com
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
HARTFORD, Conn., March 15, 2004 - The Phoenix Companies, Inc. (NYSE: PNX) today filed its Annual Report on
Form 10-K for the fiscal year ended December 31, 2003, which includes revisions to previously reported 2003,
2002 and 2001 net income and certain balance sheet amounts. Total segment income in each of the three years is
unchanged, as is stockholders' equity as of December 31, 2003. The revisions were due to a change in accounting
methodology related to the company's accounting for certain collateralized debt obligation pools (CDOs) and to
the adoption of a new accounting standard, FIN 46-R, in the fourth quarter of 2003 as reported in Phoenix's
February 9, 2004 earnings release. The company has revised its financial statements to reflect this methodology
for consolidating CDOs for each of the years 2003, 2002 and 2001. This change eliminated the previously
disclosed cumulative effect of adopting FIN 46-R as of December 31, 2003. Phoenix, through discussions with its
independent accountants and staff of the Securities and Exchange Commission, determined that the consolidation
methodology used should be applied to prior periods.
The revisions to previously reported amounts relate to three non-recourse CDOs, which have been reflected
on Phoenix's balance sheet. Generally accepted accounting principles (GAAP) require Phoenix to consolidate all
the assets and liabilities of these CDOs, which results in the recognition of realized and unrealized losses
even though the company has no legal obligation to fund such losses before or at settlement of these
obligations. The effect of the revised method is to decrease 2003 and increase 2002 and 2001 non-cash realized
investment losses in excess of the company's direct investment in these CDOs. These investment losses will be
reversed as the CDOs mature, are liquidated or de-consolidated.
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The Phoenix Companies, Inc....2
Summary of Revisions (in millions except per share)
2003 2002 2001
Net loss
As Reported $( 35.4) $( 246.0) $ ( 202.7)
As Restated ( 6.2) ( 272.3) ( 215.2)
--------- --------- ----------
Change $ 29.2 $( 26.3) $ ( 12.5)
========= ========= ==========
Total Segment Income (loss)1
As Reported $ 57.3 $( 60.4) $ ( 74.7)
As Restated 57.3 ( 60.4) ( 74.7)
--------- --------- ----------
Change $ -- $ -- $ --
========= ======== ==========
Total Stockholders' Equity
As Reported $1,947.8 $2,031.7 $ 2,395.7
As Restated 1,947.8 1,826.8 2,307.8
--------- --------- ----------
Change $ -- $ (204.9) $ ( 87.9)
========= ======== ==========
Total Segment Income (loss) per share - diluted
As Reported $ 0.59 $ ( 0.62) $ ( 0.71)
As Restated 0.59 ( 0.62) ( 0.71)
--------- --------- ----------
Change $ -- $ -- $ --
========= ======== ==========
Net loss per share - basic & diluted
As Reported $( 0.38) $ ( 2.51) $ ( 1.94)
As Restated ( 0.07) ( 2.78) ( 2.06)
--------- -------- ----------
Change $ 0.31 $( 0.27) $ ( 0.12)
========= ======== ==========
1 Total segment income is a non-GAAP financial measure. A reconciliation of non-GAAP financial measures to
GAAP is provided in the table at the end of this release.
Although these revisions have no economic impact on the company, the accounting may result in volatility
in future reported earnings and stockholders' equity. The Financial Accounting Standards Board has revised
consolidation guidance several times since early 2002, and it is expected that this accounting will continue to
be the subject of additional discussion. Subsequent guidance and interpretations may affect our application of
consolidation accounting in future periods.
The Phoenix Companies, Inc. is a leading provider of wealth management products and services to
individuals and institutions. Through a variety of advisors and financial services firms, Phoenix helps the
affluent and high net worth accumulate, preserve and transfer their wealth with an innovative portfolio of life
insurance, annuity and investment management products and services. Phoenix has corporate offices in Hartford,
Conn. For more information on Phoenix, visit www.PhoenixWealthManagement.com.
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The Phoenix Companies, Inc....3
Reconciliation of Income Measures
For the years ended December 31, 2003, 2002 and 2001
(in millions)
2003 2002 2001
-------------- --------------- ---------------
Segment Income (loss)
Life insurance1 $103.5 $ 101.0 $72.0
Annuities (4.1) (20.7) 10.9
-------------- --------------- ---------------
Life and annuity segment 99.4 80.3 82.9
Asset management segment (8.7) (69.9) (8.7)
Venture capital segment 36.2 (59.3) (159.6)
Corporate and other segment (47.8) (40.0) (34.7)
-------------- --------------- ---------------
Total segment income (loss), before income taxes 79.1 (88.9) (120.1)
Applicable income taxes (benefit) 21.8 (28.5) (45.4)
-------------- --------------- ---------------
Total segment income (loss) 57.3 (60.4) (74.7)
Realized investment losses, after income taxes
and other offsets (54.2) (65.6) (55.5)
Loss from discontinued operations, net of income taxes1 (2.1) (1.3) (2.5)
Restructuring charges, net of income taxes (8.5) (28.5) (15.5)
Deferred policy acquisition cost adjustment, net of income
taxes - 15.1 -
Demutualization related items, net of income taxes - (1.3) (23.9)
Expense of purchase of Phoenix Investment Partners
minority interest, net of income taxes - - (52.8)
Mutual life surplus tax - - 21.0
Pension adjustment, net of income taxes - - 2.9
Other income, net of income taxes 1.3 - 2.4
-------------- --------------- ---------------
Net income loss before cumulative effect
of accounting changes (6.2) (142.0) (198.6)
Cumulative effect of accounting changes - (130.3) (16.6)
-------------- --------------- ---------------
Net loss $ (6.2) $(272.3) $(215.2)
-------------- --------------- ---------------
1Trust Operations were discontinued in the fourth quarter of 2003. Prior period results have been
restated.
Note: For additional information, see our financial supplement at PhoenixWealthManagement.com.
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