Phoenix Companies (PNX) 8-K Results of Operations and Financial Condition

As of December 31, 2008

The Phoenix Companies, Inc.

Invested Assets

Exhibit 99.1

2

Important Disclosures

This

presentation

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.

We

intend

for

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,

our

future

transactions,

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

our

current

expectations

and

beliefs

concerning

trends

and

future

developments

and

their

potential

effects

on

the

company.

They

are

not

guarantees

of

future

performance.

Our

actual

business,

financial

condition

and

results

of

operations

may

differ

materially

from

those

suggested

by

forward-looking

statements

as

a

result

of

risks

and

uncertainties,

which

include,

among

others:

(i)

unfavorable

general

economic

developments

including,

but

not

limited

to,

specific

related

factors

such

as

the

performance

of

the

debt

and

equity

markets

and

changes

in

interest

rates;

(ii)

the

effect

of

continuing

adverse

capital

and

credit

market

conditions

on

our

ability

to

meet

our

liquidity

needs,

our

access

to

capital

and

our

cost

of

capital;

(iii)

the

possibility

of

losses

due

to

defaults

by

others

including,

but

not

limited

to,

issuers

of

fixed

income

securities;

(iv)

changes

in

our

investment

valuations

based

on

changes

in

our

valuation

methodologies,

estimations

and

assumptions;

(v)

the

effect

of

guaranteed

benefits

within

our

products;

(vi)

the

consequences

related

to

variations

in

the

amount

of

our

statutory

capital

due

to

factors

beyond

our

control;

(vii)

downgrades

in

our

debt

or

financial

strength

ratings;

(viii)

the

possibility

that

mortality

rates,

persistency

rates,

funding

levels

or

other

factors

may

differ

significantly

from

our

pricing

expectations;

(ix)

the

availability,

pricing

and

terms

of

reinsurance

coverage

generally

and

the

inability

or

unwillingness

of

our

reinsurers

to

meet

their

obligations

to

us

specifically;

(x)

our

dependence

on

non-affiliated

distributors

for

our

product

sales;

(xi)

our

dependence

on

third

parties

to

maintain

critical

business

and

administrative

functions;

(xii)

our

ability

to

attract

and

retain

key

personnel

in

a

competitive

environment;

(xiii)

the

strong

competition

we

face

in

our

business

from

banks,

insurance

companies

and

other

financial

services

firms;

(xiv)

our

reliance,

as

a

holding

company,

on

dividends

and

other payments from our subsidiaries to meet our financial obligations and pay future dividends, particularly since our

insurance

subsidiaries’

ability

to

pay

dividends

is

subject

to

regulatory

restrictions;

(xv)

the

potential

need

to

fund

deficiencies

in

our

Closed

Block;

(xvi)

tax

developments

that

may

affect

us

directly,

or

indirectly

through

the

cost

of,

the

demand

for

or

profitability

of

our

products

or

services;

(xvii)

the

possibility

that

the

actions

and

initiatives

of

the

U.S.

Government,

including

those

that

we

elect

to

participate

in,

may

not

improve

adverse

economic

and

market

conditions

generally

or

our

business,

financial

condition

and

results

of

operations

specifically

(xviii)

other

legislative

or

regulatory

developments;

(xix)

legal

or

regulatory

actions;

(xx)

changes

in

accounting

standards;

(xxi)

the

potential

effects

of

the

spin-off

of

our

former

asset

management

subsidiary;

and

(xxii)

other

risks

and

uncertainties

described

herein

or

in

any

of our filings with the SEC. 

This

information

is

provided

as

of

December

31,

2008.

We

undertake

no

obligation

to

update

or

revise

publicly

any

forward-looking

statement,

whether

as

a

result

of

new

information,

future

events

or

otherwise.

3

Table of Contents

Summary

4

Invested Assets

5

Historical Portfolio Ratings

6

Bond Portfolio

7

Financial Sector Holdings

8

Structured Securities Portfolio

9

Realized Credit Impairment Losses

10

Unrealized Losses

11

CMBS

13

RMBS

16

CDO Holdings

26

Page

4

Summary

>

Well diversified and liquid general account investment portfolio, managed by a team with

a successful track record of investing over a variety of market cycles, following a

disciplined monitoring process

>

91.8% of bond investments are investment grade. Emphasis is on liquidity with 70.4% of

bonds invested in public securities

>

84.3% of gross unrealized losses are rated investment grade

>

Residential mortgage-backed securities exposure is high quality and diversified.

Exposure is concentrated in agency and prime-rated securities with only 2.6% of

invested assets in Alt-A and subprime

investments of which 90.4% is rated AAA and AA

>

Commercial mortgage-backed securities exposure is in highly rated public securities with

minimal direct loan or real estate holdings

>

No subprime

collateralized debt obligations (CDO) exposure.  CDO holdings are backed

by bank loans, investment grade bonds and commercial mortgage-backed securities

>

No credit default swap (CDS) exposure

>

Strict limits on individual financial exposures that mitigate our loss potential to any one

particular entity. As a result, we have limited exposure to the financial institutions that

have been in the news.

5

Invested Assets

Public

70.4%

Private

29.6%

Bonds $9,831

73%

Policy Loans $2,536

19%

Cash & Cash Equivalents

$381

3%

Venture Capital

$201

1%

Stock

$25

0%

Mortgages & Real Estate

$54

0%

Other Invested Assets

$563

4%

Invested Assets:  $13.6 Billion

$ in millions

Market value as of December 31, 2008

6

Historical Portfolio Quality Ratings

Percentages based on GAAP Value

As of December 31, 2008

29.6

27.5

25.6

22.9

Private Bonds

70.4

72.5

74.4

77.1

Public Bonds

41.0

35.3

27.5

23.5

Percentage of BIG in NAIC 4-6

59.0

64.7

72.5

76.5

Percentage of BIG in NAIC 3

8.2

7.7

8.3

7.3

Below Investment Grade (BIG) Bonds

91.8%

92.3%

91.7%

92.7%

Investment Grade Bonds

2006

2005

2007

2008

7

Bond Portfolio

U.S. Corporates

64%

Foreign Corporates

10%

ABS

16%

Emerging

Markets

9%

$ in millions

Market value as of December 31, 2008

Below Investment Grade Bonds

RMBS

1%

Bond Portfolio

100.0%

$9,831

Total

1.3

125

Emerging Markets

1.8

178

Taxable Municipals

4.3

424

Utilities

6.1

602

Asset Backed Securities

As of December 31, 2008

7.0

688

U.S. Treasuries / Agencies

11.1

1,095

Commercial MBS

15.7

1,543

Residential MBS

14.7

1,442

Financials

14.1

1,386

Foreign Corporates

$2,348

23.9%

Industrials

Bonds by Rating

AAA/AA/A

62.3%

BBB

29.5%

BB & Lower

8.2%

8

Financial Sector Holdings

38.8%

0.4%

49.7

63.9

Consumer Finance

56.1%

10.6%

$1,441.6

$1,852.4

Total

-

-

4.3

4.3

Project Finance

52.2%

1.3%

171.5

237.9

REITS

56.4%

0.7%

89.4

96.8

Leasing/Rental

61.9%

2.3%

313.2

384.5

Insurance

44.5%

1.8%

243.3

358.5

Diversified Financial

50.1%

0.5%

75.2

96.2

Commercial Finance

55.3%

0.9%

123.7

147.8

Broker-Dealer

65.0%

2.7%

$371.3

$462.5

Bank

Book

Value

Market

Value

% General

Account

% in Closed

Block

Sector

As of December 31, 2008

Percentages based on market value

$ in millions

9

Structured Securities Portfolio

>

Structured portfolio is 96% investment grade

>

RMBS (48%) and CMBS (34%) dominate the structured portfolio

AAA

79.3%

B or less -

3.3%

BBB –

5.1%

AA -

6.1%

A -

5.3%

BB -

0.9%

Market value as of December 31, 2008

$ in millions

0.9

29.9

Collateralized Bond

Obligations

0.9

29.6

Aircraft Equipment Trust

Structured Securities Portfolio

100.0%

$3,240

Total

0.7

22.7

Auto Loans

As of December 31, 2008

1.4

44.9

Manufactured Housing

3.5

112.6

CLOs

33.8

1,095.0

Commercial MBS

6.6

211.1

Home Equity

4.6

151.0

Other ABS

$1,543.2

47.6%

Residential MBS

10

Realized Credit Impairments

2.7

1.0

4.3

Common Stock

$60.2

$65.2

$70.1

$22.8

$5.7

$224.0

$129.5

$151.3

Total Debt

16.0

7.2

7.4

Schedule BA

Year of Issue²

-

0.1

-

5.6

-

-

-

2008

$242.7

$137.7

$163.0

Total

9.9

-

-

-

9.9

5.7

17.9

Other ABS/MBS

42.2

11.7

25.8

19.3

99.1

75.7

34.8

Corporate

-

3.4

-

-

3.4

1.7

1.0

CMBS

0.8

3.4

17.1

1.6

28.5

19.0

32.5

CLO/CDO

1.0

9.0

13.9

1.0

24.9

17.5

5.1

Subprime RMBS

-

18.1

13.3

0.9

32.3

8.2

30.5

Alt-A RMBS

$6.3

$19.6

-

-

$25.9

$1.7

$29.5

Prime RMBS

2004 &

Prior

2005

2006

2007

FY 2008

Impairment

4Q08

Impairment

Book

Value¹

1

GAAP Book value after impairments on identified assets

2

Year of issue for full year 2008 impairments

As of December 31, 2008

$ in millions

11

Unrealized Losses by NAIC Rating

Market value as of December 31, 2008

$ in millions

$915.9

$563.0

$143.2

$91.3

$39.1

$1.0

NAIC 1

NAIC 2

NAIC 3

NAIC 4

NAIC 5

NAIC 6

12

Net Unrealized Losses by Sector

1

All Other –

Corporates, RMBS Prime/Agency, Other ABS, Foreign

As of December 31, 2008

$ in millions

$(651.1)

$(994.2)

$(1,645.2)

Total

(97.1)

(291.8)

(388.9)

All Other¹

(65.3)

(127.0)

(192.3)

All Other HY

(155.2)

(255.5)

(410.6)

Financial

(96.7)

(64.2)

(160.9)

CMBS

(156.6)

(57.8)

(214.4)

CDO/CLO

(38.8)

(116.6)

(155.4)

Subprime/Alt-A

$ (41.4)

$ (81.3)

$  (122.7)

RMBS Prime

4Q08

Change

September 30, 2008

Unrealized

December 31, 2008

Unrealized

13

CMBS Portfolio

Phoenix CMBS Portfolio

>

High levels of credit enhancement

>

Excellent credit characteristics vs.

market

>

Strategically avoided 2006 and

2007 aggressive underwriting

1

Sources: Barclays CMBS Index, Trepp

As of December 31, 2008

5.94%

6.75%

Weighted average coupon

68.5%

68.9%

Weighted average LTV

26%

30%

Weighted average credit

enhancement

1.5x

1.6x

Weighted average DSC

43 months

79 months

Weighted average loan age

63%

33%

Interest Only (I/O) loans

29%

38%

Weighted average credit

enhancement (U.S. Treasury

defeasance adjusted)

Market¹

Phoenix

14

CMBS Portfolio

>

$1.1 billion in market value

>

$175 million Government guaranteed

>

84% AAA and less than 1% BBB or

below

>

88% 2005 and prior origination

>

3% in CMBS CDO

Market value as of December 31, 2008

$ in millions

$0

$200

$400

$600

$800

$1,000

2007

2006

2005

2004 & Prior

AAA

AA

A

BBB

Below BBB

$54.9

$77.9

$53.0

$909.2

AAA

$45.1

$63.1

$30.8

$785.2

$924.2

AA

3.0

8.3

9.8

63.9

85.0

A

6.8

6.5

10.6

56.2

80.1

BBB

0.0

0.0

0.8

3.9

4.7

Below BBB

0.0

0.0

1.0

0.0

1.0

Total

$54.9

$77.9

$53.0

$909.2

$1,095.0

2007

2006

2005

2004 and Prior

Total

15

CMBS by Year of Origination

Year of Issue

5.0%

-

-

8.4%

3.6%

4.9%

2007

7.1%

-

-

8.1%

9.8%

6.8%

2006

4.8%

16.5%

100.0%

13.3%

11.5%

3.3%

2005

83.1%

83.5%

-

70.2%

75.1%

85.0%

2004

& Prior

73.4%

8.0%

$1,095.0

$1,291.6

Total

-

33.3%

-

-

4.7

1.0

6.7

1.0

BBB

BB and

Below

53.4%

0.6%

80.1

119.8

A

61.9%

0.6%

85.0

131.1

AA

76.6%

6.8%

$924.2

$1,033.0

AAA

% in Closed

Block

% General

Account

Market

Value

Book

Value

Rating

As of December 31, 2008

Percentages based on market value

$ in millions

16

Residential MBS by Rating

As of December 31, 2008

Percentages based on market value

$ in millions

0.8%

0.8%

6.2%

0.2%

-

BB &

Below

56.6%

5.1%

36.5%

41.2%

77.3%

% in

Closed

Block

1.5%

1.0%

5.1%

91.6%

12.9%

$1,754.3

$2,012.0

Total

5.7%

0.1%

7.4%

86.0%

1.2%

165.2

224.2

Subprime

3.4%

2.6%

20.3%

67.5%

1.4%

192.2

288.6

Alt-A

2.4%

2.6%

8.3%

86.5%

3.4%

458.8

581.6

Prime

-

-

-

100.0%

6.9%

$938.1

$917.6

Agency

BBB

A

AA

AAA

%

General

Account

Market

Value

Book

Value

Rating

17

Residential MBS Exposure

16.3

80.0

61.8

93.4

1.2

Subprime

30.0

98.0

64.0

87.8

1.4

Alt-A

3.4%

% of General

Account

Non-Agency

Prime

84.1%

% of Portfolio

Originated in

2005 & Prior

94.8%

% Rated AAA

& AA

91.0%

% of Portfolio

Backed by

Fixed Rate

Collateral

41.0%

% of Market

Backed by

Fixed Rate

Collateral

Market value as of December 31, 2008

Source: JP Morgan MBS Research, Merrill Lynch Mortgage Credit Round-up

18

Residential MBS Delinquencies

As of December 31, 2008

Source: JP Morgan MBS Research

1.9%

11.0%

17.1%

3.4%

18.9%

40.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Non-Agency Prime

Alt-A

Subprime

Phoenix

Market

19

Non-Agency Prime RMBS Holdings

>

$458.8 million market value

>

87% AAA rated

>

84% 2005 and prior origination

>

91% fixed rate

>

82% 2006-2007 originations are

super senior classes

As of December 31, 2008

$ in millions

$0

$50

$100

$150

$200

$250

$300

$350

2007

2006

2005

2004 and Prior

AAA

AA

A

BBB

Below BBB

$13.6

$59.6

$82.1

2007

2006

2005

2004 and Prior

Total

AAA

$13.6

$33.1

$78.6

$271.6

$396.9

AA

0.0

15.7

0.5

22.1

38.3

A

0.0

10.8

0.0

0.9

11.7

BBB

0.0

0.0

2.3

8.9

11.2

Below BBB

0.0

0.0

0.7

0.0

0.7

Total

$13.6

$59.6

$82.1

$303.5

$458.8

$303.5

20

Non-Agency Prime RMBS Holdings

As of December 31, 2008

Source: JP Morgan MBS Research –

January 2009, Bloomberg

Phoenix

Market

Weighted average credit enhancement

9.37%

4.38%

Weighted average 60+ day delinquent loan

1.90%

3.37%

Phoenix prime portfolio loss coverage: using 25% loss severity

19.7x

5.2x

21

AAA

$7.1

$37.6

$39.0

$46.0

$129.7

AA

0.0

8.3

0.2

30.5

39.0

A

0.0

0.0

1.3

3.8

5.1

BBB

0.0

4.2

2.3

0.0

6.5

BB & Below

3.6

8.3

0.0

0.0

11.9

Total

$10.7

$58.4

$42.8

$80.3

$192.2

Non-Agency Alt-A RMBS Holdings

>

$192 million market value

>

88% AAA or AA rated

>

64% 2005 and prior originations

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2007

2006

2005

2004 and Prior

AAA

AA

A

BBB

Below BBB

Market value as of December 31, 2008

$ in millions

$10.7

$58.4

$42.8

$80.3

2007

2006

2005

2004 and Prior

Total

22

Residential MBS ALT-A Collateral

As of December 31, 2008

Percentages based on market value

$ in millions

-

-

-

69.2%

30.8%

0.1%

11.9

17.3

BB & Below

Year of Issue

10.4%

31.4%

22.2%

30.4%

5.6%

1.4%

$192.2

$288.6

Total

-

-

35.0%

65.0%

-

-

6.5

8.1

BBB

62.0%

12.3%

25.7%

-

-

-

5.1

7.3

A

37.3%

41.1%

0.4%

21.2%

-

0.3%

39.0

53.1

AA

1.7%

33.7%

30.1%

29.0%

5.5%

1.0%

$129.7

$202.8

AAA

2003 &

Prior

2004

2005

2006

2007

% General

Account

Market

Value

Book

Value

Rating

23

Non-Agency Alt-A RMBS Holdings

As of December 31, 2008

Sources: JP Morgan MBS Research –

January 2009

Merrill Lynch Loan Performance –

October 2008

Option ARM

1.8%

32%

Alt-A ARM

0.1%

38%

Alt-A Fixed

98.0%

30%

60+ Delinquent

11%

18.9%

Phoenix

Alt-A Market

24

AAA

$31.7

$20.7

$49.2

$40.6

$142.2

AA

5.7

0.0

1.6

5.0

12.3

A

0.0

0.0

0.0

0.0

0.0

BBB

0.0

4.3

0.6

4.6

9.5

Below BBB

0.0

0.6

0.4

0.2

1.2

Total

$37.4

$25.6

$51.8

$50.4

$165.2

Non-Agency Subprime

RMBS

Holdings

>

$165.2 million market value

>

93.4% rated AAA or AA

>

Phoenix 60+ day delinquent

17.1% vs. 40.0% for the ABX index

>

Phoenix weighted average credit                

support is 38.6%

$0

$10

$20

$30

$40

$50

$60

2007

2006

2005

2004 and Prior

AAA

AA

A

BBB

Below BBB

$ in millions

As of December 31, 2008

ABX=2007-2, 2007-1, 2006-2 and 2006-1 subprime Index

$37.4

$25.6

$51.8  

$50.4

2007

2006

2005

2004 and Prior

Total

25

Residential MBS Subprime

Collateral

As of December 31, 2008

Percentages based on market value

$ in millions

-

16.3%

28.4%

55.3%

-

-

1.2

1.2

BB & Below

Year of Issue

8.8%

21.7%

31.3%

15.6%

22.6%

1.2%

$165.2

$224.2

Total

3.6%

45.1%

6.4%

44.9%

-

0.1%

9.5

13.1

BBB

-

-

-

-

100%

-

-

-

A

40.5%

-

13.2%

-

46.3%

0.1%

12.3

24.4

AA

6.5%

22.0%

34.6%

14.6%

22.3%

1.0%

$142.2

$185.5

AAA

2003 &

Prior

2004

2005

2006

2007

% General

Account

Market

Value

Book

Value

Rating

26

CDO Holdings

As of December 31, 2008

Percentages based on market value

$ in millions

14.4%

100.0%

-

-

56.2%

11.5%

BB &

Below

41.6%

-

53.0%

100.0%

59.7%

36.4%

% in Closed

Block

17.2%

21.1%

37.0%

24.7%

0.2%

27.1

62.8

CMBS

36.8%

26.2%

15.1%

7.5%

1.2%

$165.1

$372.1

Total

-

-

-

-

-

2.0

2.0

RMBS

-

-

100.0%

-

-

2.4

3.9

High-Yield Debt

10.6%

-

33.2%

-

0.1%

14.3

36.3

Inv Grade Debt

45.7%

31.5%

6.5%

4.8%

0.9%

$119.3

$267.1

Bank Loans

BBB

A

AA

AAA

% General

Account

Market

Value

Book

Value

Collateral

-

-

BB &

Below

-

-

% in Closed

Block

100.0%

-

-

-

-

$6.5

$13.8

Total

100.0%

-

-

-

-

$6.5

$13.8

Bank Loans

BBB

A

AA

AAA

% General

Account

Market

Value

Book

Value

Collateral