EXHIBIT 99.2
[LOGO]PHOENIX
The Phoenix Companies, Inc. N E W S R E L E A S E
One American Row
PO Box 5056
Hartford CT 06102-5056
PhoenixWealthManagement.com
For: Immediate Release
Contact: Media Relations: Alice S. Ericson 860-403-5946
Investor Relations: Peter A. Hofmann 860-403-7100
The Phoenix Companies Announces Acquisition
of Minority Interest in Kayne Anderson Rudnick
Hartford, Conn., October 10, 2005 - The Phoenix Companies, Inc. (NYSE: PNX) announced that today it
purchased the 35 percent minority interest in Kayne Anderson Rudnick Investment Management, LLC it did not
already own, effective September 30, 2005. The transaction is accretive and completes Phoenix's
conversion of its asset management business to a 100-percent-owned model, benefiting the company
strategically and financially.
"Now that the fundamental restructuring of our asset management business is complete, we are well
positioned to make it a profitable contributor to Phoenix," said Dona D. Young, Phoenix's chairman,
president and chief executive officer. "We can now get on with the hard work of executing our strategy to
realize the full potential of this business, which currently has more than $40 billion in assets under
management."
Daniel T. Geraci, executive vice president, The Phoenix Companies, and president and chief executive
officer of Phoenix Investment Partners, said, "Our multi-manager approach maintains each manager's unique
culture, investment philosophy and style while providing strong shared support for non-investment
functions, such as distribution, administration, operations and product development. With our new
structure now in place, we will be able to leverage our investment capabilities across product categories
more effectively and operate more efficiently."
Going forward, Phoenix plans to build on Kayne Anderson Rudnick's strong operational infrastructure as
a shared support service for some of its other investment managers. National retail distribution will
continue to be managed from Phoenix's Hartford, Conn., headquarters, and institutional distribution will
be further integrated with Phoenix's existing organization, targeting major market segments.
-more-
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Consideration to Kayne Anderson Rudnick's minority owners will total $80 million. It will be paid in
three installments of approximately $10 million at closing, $10 million on January 3, 2006, and $60
million on January 2, 2007. The terms are generally consistent with those established under the existing
agreements between Phoenix and Kayne Anderson Rudnick's minority owners.
Allan M. Rudnick, who has served as Kayne Anderson Rudnick's president and chief investment officer,
was named chief executive officer, president and chief investment officer. Stephen A. Rigali, CFA, who
has served as chief marketing officer, was named executive vice president. Founder Richard A. Kayne and
Ralph Walter, chief operating officer, have agreed to stay on with the firm until December 31, 2006 to
help ensure a smooth transition. Founder John E. Anderson continues to be affiliated with the firm in an
advisory capacity. The entire portfolio management team will remain in place, including Robert A.
Schwarzkopf, CFA, managing director of Small Cap Equity.
"The strength of the firm's leadership and the depth of its portfolio management and operational teams
are real assets to Phoenix," said Mr. Geraci. "They are well positioned to continue Kayne Anderson
Rudnick's 20-year history of excellence."
Mr. Kayne added, "I am thrilled that Allan will be assuming leadership of the organization. We have
known each other for 30 years and have worked together for more than 15 years. Allan, John and I built
the firm using Allan's Quality at a Reasonable Price(TM) approach, and John and I will continue to support
Allan as he takes Kayne Anderson Rudnick into its next era."
"This is an exciting time in the development of our firm, and expanding our relationship with Phoenix
is absolutely the right thing to do. With the two companies fully aligned, we can better capitalize on
opportunities for both product and distribution growth," Mr. Rudnick said.
The transaction will allow Phoenix to expand efforts already underway in its West Coast asset
management operations to realize synergies among support functions. The company expects to realize
approximately $15 million in annualized, pre-tax expense savings from these actions in 2006.
Incorporating these savings, Phoenix's total segment income after taxes will benefit from the transaction
by approximately $11 million in 2006.
Phoenix expects to incur restructuring charges totaling approximately $8 million, after taxes, related
to the restructuring of its West Coast asset management operations. Of these, $4.5 million were recorded
in the first half of 2005. The remaining $3.5 million will be incurred over six quarters, beginning in
the third quarter of 2005.
-more-
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CONFERENCE CALL
The Phoenix Companies, Inc. will host a conference call tomorrow, October 11, 2005, at 9 a.m. Eastern
time to discuss this transaction with the investment community. The conference call will be broadcast
live over the Internet at www.PhoenixWealthManagement.com in the Investor Relations section. The call also
can be accessed by telephone at 1-973-321-1020 (conference ID #6593989). A replay of the call will be
available through October 25, 2005 by telephone at 1-973-341-3080 (pin code 6593989) and on Phoenix's Web
site.
The Phoenix Companies, Inc. is a leading manufacturer of life insurance, annuity and asset management
products for the accumulation, preservation and transfer of wealth. It has two principal operating
subsidiaries, Phoenix Life Insurance Company and Phoenix Investment Partners, Ltd. Through a variety of
advisors and financial services firms, the company provides products and services to affluent and
high-net-worth individuals and to institutions. Phoenix has corporate offices in Hartford, Connecticut.
Phoenix Investment Partners provides individuals and institutions with disciplined money management
through a number of investment affiliates and offers managed accounts, mutual funds, institutional asset
management, closed-end funds and alternative financial products. It had $42.3 billion in third party
assets under management as of June 30, 2005. For more information, visit www.PhoenixFunds.com.
Kayne Anderson Rudnick Investment Management, LLC was founded in 1984 by Richard A. Kayne and John E.
Anderson. In 1989, the firm began its current traditional portfolio management under the leadership of
Allan M. Rudnick, focusing on achieving strong risk-adjusted returns through investment in high-quality
companies purchased at reasonable prices. The firm offers a comprehensive range of portfolio strategies
including large cap, small cap, small-mid cap, mid cap, and international equity products as well as fixed
income. Based in Los Angeles, Kayne Anderson Rudnick had $9.6 billion in assets under management as of
June 30, 2005.
-more-
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FORWARD-LOOKING STATEMENT
This release may contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, which, by their nature, are subject to risks and uncertainties. The
company intends these forward-looking statements to be covered by the safe harbor provisions of the
federal securities laws relating to forward-looking statements. These include statements relating to
trends in, or representing management's beliefs about, the company's future strategies, operations and
financial results, as well as other statements including words such as "anticipate", "believe," "plan,"
"estimate," "expect," "intend," "may," "should" and other similar expressions. Forward-looking statements
are made based upon management's current expectations and beliefs concerning trends and future
developments and their potential effects on the company. They are not guarantees of future performance.
Actual results may differ materially from those suggested by forward-looking statements as a result of
risks and uncertainties which include, among others: (i) changes in general economic conditions, including
changes in interest and currency exchange rates and the performance of financial markets; (ii) heightened
competition, including with respect to pricing, entry of new competitors and the development of new
products and services by new and existing competitors; (iii) the company's primary reliance, as a holding
company, on dividends and other payments from its subsidiaries to meet debt payment obligations,
particularly since the company's insurance subsidiaries' ability to pay dividends is subject to regulatory
restrictions; (iv) regulatory, accounting or tax developments that may affect the company or the cost of,
or demand for, its products or services; (v) downgrades in financial strength ratings of the company's
insurance subsidiaries or in the company's credit ratings; (vi) discrepancies between actual claims
experience and assumptions used in setting prices for the products of insurance subsidiaries and
establishing the liabilities of such subsidiaries for future policy benefits and claims relating to such
products; (vii) movements in the equity markets that affect our investment results, including those from
venture capital, the fees we earn from assets under management and the demand for our variable products;
(viii) the success and timing of the company's implementation of its strategies; (ix) the effects of
closing the company's retail brokerage operations; and (x) other risks and uncertainties described in any
of the company's filings with the Securities and Exchange Commission. The company undertakes no
obligation to update or revise publicly any forward-looking statement, whether as a result of new
information, future events or otherwise.
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