[THE PHOENIX COMPANIES, INC. LOGO]
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
www.phoenixwm.com
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FOR: IMMEDIATE RELEASE
CONTACT: MEDIA RELATIONS: MICHELE U. FARLEY 860-403-5393
JODY A. BERESIN 860-403-5714
INVESTOR RELATIONS: PETER A. HOFMANN 860-403-7100
THE PHOENIX COMPANIES, INC.
ANNOUNCES MANAGEMENT SUCCESSION
o ROBERT W. FIONDELLA INITIATES TRANSITION TO NEW LEADERSHIP
o DONA D. YOUNG NAMED CHIEF EXECUTIVE OFFICER-ELECT
HARTFORD, CT, SEPTEMBER 30, 2002 - Robert W. Fiondella, chairman and chief
executive officer of The Phoenix Companies, Inc. (NYSE: PNX), today announced
that the Board of Directors, by unanimous vote, elected Dona D. Young, president
and chief operating officer, to succeed him as chief executive officer of the
company, effective January 1, 2003. At that time, her title will be president
and chief executive officer. Mr. Fiondella will remain chairman of the company
through June 2003.
According to Mr. Fiondella, this completes the company's management
succession plan initiated at the start of its demutualization process in
February, 2000.
"We have completed a full year as a public company focused on our wealth
management strategy, which makes this the right time to finalize our succession
to the next generation of leadership," said Mr. Fiondella. "Our foundation is
strong, we have proven excellence in our core businesses, and I have total
confidence in Dona and the management team we have put in place. After more than
30 years of service, this is a difficult decision, but it is a natural moment to
make the transition seamlessly. I expect to watch with pride as Phoenix grows
over the coming years."
PHOENIX ANNOUNCES MANAGEMENT SUCCESSION . . . 2
Mrs. Young said, "Among his many achievements, perhaps Bob's greatest legacy
has been his visionary leadership, setting the company's strategic direction and
developing the capable management team to lead us forward. I know I speak for
our entire organization in expressing my deepest appreciation to Bob for his 30+
years of support and leadership. During his tenure, the company grew and
evolved, generating substantial value for its owners while acting on its
commitment to diversity, its employees and its community. I share with Bob great
confidence in Phoenix's people, strategy and profitable growth opportunities.
"These are challenging times, but Phoenix is well positioned to weather
current market conditions and even capitalize on them. Going forward, with
disciplined focus on profitable growth, Phoenix will build on its strong
foundation as a wealth management company. We will continue our record of
excellence in manufacturing wealth management products and services as we
broaden critical distribution relationships that will be persistent, profitable
and growing. We have a great future ahead of us."
The company said that in the third quarter it will establish an additional
reserve of $3.6 million, net of income taxes. This amount, coupled with the
$21.8 million reserve, net of income taxes, established in the second quarter,
and adjustments to reflect Statements of Clarification and Intent executed in
the third quarter, are sufficient to provide for the retirement of Mr. Fiondella
and payments under previously announced employment-related contracts of senior
management as well as an office consolidation. In addition, the company said
that as part of its stock option program announced in June 2002 for eligible
officers, Mr. Fiondella and the previously announced senior management retirees
received options totaling 642,500 shares. (See attached Analysis of Management
Restructuring Reserve and Stock Option Grants.)
The company does not expect to incur any further expense for this management
succession and transition.
PHOENIX ANNOUNCES MANAGEMENT SUCCESSION . . . 3
Mr. Fiondella, 60, joined Phoenix's law department in 1969. He advanced
through several promotions in the law department, including senior vice
president and general counsel in 1981. In 1983, he was named executive vice
president, and in 1987 he was elected president and a director. He was elected
chief operating officer of the company in 1989 and given responsibility for all
lines of business. In 1992, upon the merger of Phoenix Mutual Life Insurance
Company and Home Life Insurance Company, Mr. Fiondella was elected president and
principal operating officer, and in 1994 he was elected chairman, president and
chief executive officer. In 2000, Mr. Fiondella transferred the role of
president to Mrs. Young.
Mrs. Young, 48, also joined Phoenix as an attorney, in 1980. She advanced
through several promotions, transferring to the Reinsurance Department in 1983
and back to the Law Department in 1985. She was promoted to vice president and
assistant general counsel in 1987 and to senior vice president and general
counsel in 1989. She was named executive vice president and general counsel in
1994, in charge of individual life insurance, annuity operations and corporate
staff functions. She was elected a director in 1998 and president in 2000. In
2001, she added chief operating officer to her responsibilities and in 2002 she
took on responsibility for the company's investment management operations. On
January 1, 2003, Mrs. Young will become president and chief executive officer.
The Phoenix Companies, Inc. (NYSE: PNX) 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. With a history dating back to 1851, The Phoenix Companies, Inc. has
two operating subsidiaries, Phoenix Life Insurance Company and Phoenix
Investment Partners, Ltd. And offers trust services through another subsidiary,
Phoenix National Trust Company. Phoenix has corporate offices in Hartford,
Conn., For more information on Phoenix, visit www.phoenixwm.com.
FORWARD-LOOKING STATEMENT
This release contains statements which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These include statements relating to trends in, or
PHOENIX ANNOUNCES MANAGEMENT SUCCESSION . . . 4
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 rates and currency exchange rates;
(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 from its subsidiaries to meet debt payment obligations and the
applicable regulatory restrictions on the ability of the subsidiaries to pay
such dividends; (iv) regulatory, accounting or tax changes that may affect the
cost of, or demand for, the products or services of the company's subsidiaries;
(v) downgrades in the claims paying ability or financial strength ratings of the
company's subsidiaries; (vi) discrepancies between actual claims experience and
assumptions used in setting prices for the products of the company's 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 company's success in achieving its planned expense
reductions; and (ix) other risks and uncertainties described from time to time
in the company's filings with the Securities and Exchange Commission. The
company specifically disclaims any obligation to update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
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PHOENIX ANNOUNCES MANAGEMENT SUCCESSION . . . 5
THE PHOENIX COMPANIES, INC.
ANALYSIS OF MANAGEMENT RESTRUCTURING RESERVE
AND STOCK OPTION GRANTS
AS OF SEPTEMBER 30, 2002
DOLLARS IN MILLIONS
BEFORE NET OF
MANAGEMENT RESTRUCTURING RESERVE INCOME TAXES INCOME TAXES
Management restructuring reserve
at June 30, 2002 $ 33.5 $ 21.8
Robert W. Fiondella Retirement and
Transition Agreement 20.0 13.0
Adjustments to reflect Statements
of Clarification and Intent (10.0) (6.5)
Existing Long-term Incentive Plan
accruals related to Robert W. Fiondella (4.4) (2.9)
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Management restructuring reserve
required at September 30, 2002 $ 39.1 $ 25.4
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Increase in management
restructuring reserve $ 5.6 $ 3.6
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NUMBER
STOCK OPTION GRANTS ON JUNE 25, 2002 OF OPTIONS
Robert W. Fiondella 262,500
Previously Announced
Retirees:
Carl T. Chadburn 140,000
Philip R. McLoughlin 140,000
David W. Searfoss 100,000
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Total at September 30, 2002 642,500
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