EXHIBIT 99.1
The Phoenix Companies, Inc.
FINANCIAL SUPPLEMENT December 31, 2003
(2001-2003 Revised)
PNX [Logo]PHOENIX WEALTH MANAGEMENT(C)
LISTED
NYSE
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
WALL STREET COVERAGE
FIRM ANALYST
A.G. Edwards J. Jeffrey Hopson
Credit Suisse First Boston (CSFB) Tom Gallagher
Deutsche Bank Vanessa Wilson
Dowling & Partners Len Savage
Fox-Pitt, Kelton Jonathan Joseph
JP Morgan Michelle Giordano
Keefe Bruyette & Woods Jukka Lipponen
Langen McAlenney Robert Glasspiegel
Lehman Brothers Eric Berg
Merrill Lynch Edward A. Spehar
Morgan Stanley Nigel Dally
UBS Andrew Kligerman
SHAREHOLDER INFORMATION
SECURITY LISTINGS
The common stock of The Phoenix Companies, Inc. is traded on the New York Stock
Exchange (NYSE) under the symbol "PNX." Our 7.25 percent equity units are traded
on the NYSE under the symbol "PNX PrA." Our 7.45 percent bond is traded on the
NYSE under the symbol "PFX."
TRANSFER AGENT AND REGISTRAR
For information or assistance regarding your account, please contact our
transfer agent and registrar:
EquiServe Trust Company, N.A. at: Phoenix Shareholder Services
c/o EquiServe Trust Company, P.O. Box 43076, Providence, RI 02940-3076
Toll-free: 1-800-490-4258 TTY 1-800-336-9449
Fax: 1-781-575-3583, e-mail: phoenix@equiserve.com
Web: phoenix.equiserve.com
FOR MORE INFORMATION
To receive additional information, including financial supplements and
Securities and Exchange Commission filings along with access to other
shareholder services, visit the Investor Relations Section on our Web site at
PhoenixWealthManagement.com or contact our Investor Relations Department at:
The Phoenix Companies, Inc.
Investor Relations
One American Row
P.O. Box 5056, Hartford, CT 06102-5056
Phone: 1-860-403-7100
Fax: 1-860-403-7880
e-mail: pnx.ir@PhoenixWealthManagement.com
For more information on our products and services, call your Phoenix
representative or visit our Web site at PhoenixWealthManagement.com.
In addition to net income presented in accordance with Generally Accepted
Accounting Principles ("GAAP"), Phoenix considers total segment income in
evaluating its financial performance. See page 2, Income Statement, for a
reconciliation of these measures. Total segment income is an internal
performance measure considered by Phoenix in the management of its operations,
including its compensation plans and budgeting and planning processes. In
addition, management believes that total segment income provides additional
insight into the underlying trends in Phoenix's operations.
Total segment income represents net income from continuing operations (which is
a GAAP measure) before realized investment gains and losses, and certain other
items.
* Net realized investment gains and losses are excluded from segment income
because their size and timing are frequently subject to our discretion.
* Certain other items are excluded from segment income because we believe they
are not indicative of overall operating trends and are items that management
believes are infrequent and material and which result from a business
restructuring, a change in regulatory environment, or other unusual
circumstances.
Because certain of these items are excluded based on our discretion and involve
judgments by management, inconsistencies in their determination may exist and
total segment income may differ from similarly titled measures of other
companies.
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
DECEMBER 2003 (UNAUDITED)
TABLE OF CONTENTS
-----------------
FINANCIAL HIGHLIGHTS........................................................ 1
INCOME STATEMENT............................................................ 2
LIFE AND ANNUITY EARNINGS SUMMARY........................................... 4
VARIABLE UNIVERSAL LIFE.................................................. 6
UNIVERSAL LIFE / INTEREST SENSITIVE...................................... 8
LIFE AND PRIVATE PLACEMENT SALES......................................... 10
ANNUITIES................................................................ 12
ANNUITIES - NET FLOWS AND FUNDS UNDER MANAGEMENT......................... 14
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION............................... 16
ASSET MANAGEMENT............................................................ 18
ASSET MANAGEMENT - NET FLOWS AND ASSETS UNDER MANAGEMENT.................... 20
VENTURE CAPITAL SEGMENT..................................................... 22
CORPORATE AND OTHER......................................................... 24
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT.............................. 26
CONSOLIDATING FOURTH QUARTER 2003 INCOME STATEMENT.......................... 28
CONDENSED CONSOLIDATED BALANCE SHEET........................................ 29
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY................................ 30
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS........................... 31
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES........................ 32
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Fourth Quarter 2003
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
-------------------------------------------------------------
2003 2002 2001 2000 1999
--------- --------- --------- --------- ---------
General Account Invested Assets $17,229.2 $16,812.8 $14,411.4 $12,594.3 $11,592.6
Separate Account Assets 6,083.2 4,371.2 5,025.2 5,376.6 5,923.9
Total Assets 27,559.2 25,235.9 22,535.6 20,313.5 20,283.9
Indebtedness 639.0 644.3 599.3 425.1 499.4
Total Stockholders' Equity 1,947.8 1,826.8 2,307.8 1,840.9 1,756.0
Total Stockholders' Equity excluding SFAS 115 and 1,925.3 1,937.1 2,317.5 1,820.7 1,731.5
FIN 46-R adjustments
Debt to Total Capitalization 24.7% 24.1% 20.0% 18.8% 22.1%
Debt (Excluding Equity Units) to Total Capitalization 18.8% 18.3%
Book Value Per Share (1) $ 20.62 $ 19.43 $ 22.64 $ 24.75 $ 23.94
Book Value Per Share, excluding SFAS 115 adjustment $ 19.96 $ 20.19 $ 22.62 $ 24.51 $ 23.70
Book Value Per Share, excluding SFAS 115 and
FIN 46-R adjustments $ 20.39 $ 20.60 $ 22.74
Period-end Common (2) 94.4 94.0 101.9 105.0 105.0
- -------------------------------------------------------------------------
Indebtedness:
Surplus Notes $ 175.0 $ 175.0 $ 175.0 $ 175.0 $ 175.0
Equity Units 153.7 153.7
Senior Unsecured Bonds 300.0 300.0 300.0
Interest Rate Swap 10.3 15.6 (.8)
Bank Credit Facility 125.1 230.0 260.3
Other 20.1 64.1
--------- --------- --------- --------- ---------
Total Indebtedness $ 639.0 $ 644.3 $ 599.3 $ 425.1 $ 499.4
========= ========= ========= ========= =========
- -------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE INSURANCE COMPANY (3)
Capital and Surplus $ 762.9 $ 861.0 $ 1,149.8 $ 1,322.8 $ 1,054.1
Asset Valuation Reserve (AVR) 198.5 147.0 221.5 559.7 368.7
--------- --------- --------- --------- ---------
Capital, Surplus and AVR $ 961.4 $ 1,008.0 $ 1,371.3 $ 1,882.5 $ 1,422.8
========= ========= ========= ========= =========
Policyholder Dividend Liability $ 408.5 $ 403.0 $ 395.8 $ 383.2 $ 366.9
Interest Maintenance Reserve $ (30.2) $ (2.0) $ 11.6 $ (1.4) $ 24.4
Statutory Gain From Operations $ 69.7 $ 44.5 $ 119.9 $ 266.4 $ 150.2
Statutory Net Income (Loss) $ 21.5 $ 7.5 $ (13.9) $ 266.1 $ 131.3
(1) Book value per share prior to June 30, 2001 is pro forma and assumes net
proceeds of $807.9 million, payout of cash and policy credits to
policyholders of $41.4 million and estimated remaining expenses of $9.0
million and 105.0 million shares outstanding.
(2) Shares outstanding through 2000 are pro forma due to IPO in 2001.
(3) Phoenix Life Insurance Company is required to file statements with state
regulatory authorities prepared on an accounting basis prescribed or
permitted by such authorities.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Fourth Quarter 2003
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY
December 31,
----------------------------------------------------
2003 2002 2001 2000 1999
-------- -------- -------- -------- --------
SEGMENT INCOME
Life Insurance $ 103.5 $ 101.0 $ 72.0 $ 19.6 $ 47.2
Annuities (4.1) (20.7) 10.9 4.2 30.8
-------- -------- -------- -------- --------
Life and Annuity Segment 99.4 80.3 82.9 23.8 78.0
Asset Management Segment (8.7) (69.9) (8.7) 61.4 60.0
Venture Capital Segment 36.2 (59.3) (159.6) 277.3 139.9
Corporate and Other Segment (47.8) (40.0) (34.7) (60.8) (49.8)
-------- -------- -------- -------- --------
Total Segment Income (Loss), before income taxes 79.1 (88.9) (120.1) 301.7 228.1
Applicable Income Taxes (Benefit) 21.8 (28.5) (45.4) 101.3 77.8
-------- -------- -------- -------- --------
TOTAL SEGMENT INCOME (LOSS) 57.3 (60.4) (74.7) 200.4 150.3
Net Realized Investment Gains (Losses), after income taxes (54.2) (65.6) (55.5) 62.0 49.2
Management Restructuring and Early Retirement Costs (8.5) (28.5) (15.5) (17.6)
Deferred Policy Acquisition Cost Adjustments 15.1 (141.8)
Expenses of Purchase of PXP Minority Interest (52.8)
Demutualization Related Items, Net (1.3) (2.9) (24.5) (11.2)
Other income 1.3 5.3 (.1) (4.5)
-------- -------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS (4.1) (140.7) (196.1) 96.0 166.2
Loss from Discontinued Operations (2.1) (1.3) (2.5) (12.7) (77.0)
-------- -------- -------- -------- --------
Income (Loss) before Cumulative Effect of Accounting changes (6.2) (142.0) (198.6) 83.3 89.2
Cumulative Effect of Accounting changes (130.3) (16.6)
-------- -------- -------- -------- --------
NET INCOME (LOSS) $ (6.2) $(272.3) $(215.2) $ 83.3 $ 89.2
======== ======== ======== ======== ========
- -------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.2 97.9 104.6 104.6 104.6
-------- -------- -------- -------- --------
Total Segment Income (Loss) Per Share $ 0.61 $ (0.62) $ (0.71) $ 1.90 $ 1.40
Net Income (Loss) Per Share $ (0.07) $ (2.78) $ (2.06) $ 0.80 $ 0.85
Diluted
Weighted-Average Shares Outstanding (1) (2) 96.6 97.9 104.6 104.6 104.6
-------- -------- -------- -------- --------
Total Segment Income (Loss) Per Share $ 0.59 $ (0.62) $ (0.71) $ 1.90 $ 1.40
Net Income (Loss) Per Share $ (0.07) $ (2.78) $ (2.06) $ 0.80 $ 0.85
(1) Weighted-average shares outstanding through 2001 are pro forma due to
Initial Public Offering (IPO) in 2001.
(2) For the twelve months ended December 31, 2003, the weighted average common
and equivalent shares outstanding were 96.6 million. For the calculation of
net loss per share, common stock equivalents were not included because that
would have been anti-dilutive.
2
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Fourth Quarter 2003 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2002 2003
Quarters ended ------------------------------------------ --------------------------------------------
March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
SEGMENT INCOME
Life Insurance $ 26.1 $ 27.6 $ 17.5 $ 29.7 $ 23.3 $ 29.2 $ 24.7 $ 26.4
Annuities 2.6 .8 (18.9) (5.0) (5.3) (1.4) .3 2.2
--------- --------- --------- --------- --------- --------- --------- ---------
Life and Annuity Segment 28.7 28.4 (1.4) 24.7 18.0 27.8 25.0 28.6
Asset Management Segment (1.1) (2.6) (67.8) 1.6 (5.8) (5.7) (3.1) 5.9
Venture Capital Segment (5.0) (29.9) (22.0) (2.3) 23.9 5.8 5.1 1.3
Corporate and Other Segment (5.7) (8.4) (10.1) (15.8) (11.4) (12.5) (10.5) (13.4)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Segment Income (Loss),
before income taxes 16.9 (12.5) (101.3) 8.2 24.7 15.4 16.5 22.4
Applicable Income Taxes (Benefit) 3.8 (8.7) (19.8) (3.5) 7.5 3.5 4.6 6.1
--------- --------- --------- --------- --------- --------- --------- ---------
TOTAL SEGMENT INCOME (LOSS) 13.1 (3.8) (81.5) 11.7 17.2 11.9 11.9 16.3
Net Realized Investment Gains
(Losses), after income taxes (1.2) (14.7) (7.6) (42.1) (14.3) (59.3) 1.7 17.7
Management Restructuring and Early
Retirement Costs (21.8) (3.6) (3.1) (2.5) (1.8) (4.2)
Deferred Policy Acquisition Cost
Adjustments 15.1
Demutualization Related Items, Net (.7) (.5) (.1)
Other income 1.3
--------- --------- --------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM CONTINUING
OPERATIONS 26.3 (40.8) (92.7) (33.6) 1.7 (49.2) 13.6 29.8
Loss from Discontinued Operations (.3) (.3) (.3) (.3) (.4) (.4) (.4) (.9)
--------- --------- --------- --------- --------- --------- --------- ---------
Income (Loss) before Cumulative
Effect of Accounting changes 26.0 (41.1) (93.0) (33.9) 1.3 (49.6) 13.2 28.9
Cumulative Effect of Accounting
changes (130.3)
--------- --------- --------- --------- --------- --------- --------- ---------
NET INCOME (LOSS) $ (104.3) $ (41.1) $ (93.0) $ (33.9) $ 1.3 $ (49.6) $ 13.2 $ 28.9
========= ========= ========= ========= ========= ========= ========= =========
- ----------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 101.2 99.5 96.6 94.2 94.0 94.2 94.3 94.4
--------- --------- --------- --------- --------- --------- --------- ---------
Total Segment Income (Loss) Per Share $ 0.13 $ (0.04) $ (0.85) $ 0.12 $ 0.18 $ 0.13 $ 0.13 $ 0.17
Net Income (Loss) Per Share $ (1.03) $ (0.41) $ (0.96) $ (0.36) $ 0.01 $ (0.53) $ 0.14 $ 0.31
Diluted
Weighted-Average Shares Outstanding (1) 101.2 99.5 96.6 94.7 95.0 94.2 98.3 99.8
--------- --------- --------- --------- --------- --------- --------- ---------
Total Segment Income (Loss) Per Share $ 0.13 $ (0.04) $ (0.85) $ 0.12 $ 0.18 $ 0.13 $ 0.12 $ 0.16
Net Income (Loss) Per Share $ (1.03) $ (0.41) $ (0.96) $ (0.36) $ 0.01 $ (0.53) $ 0.13 $ 0.29
(1) Weighted-average shares outstanding through 2001 are pro forma due to
Initial Public Offering (IPO) in 2001.
3
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
Fourth Quarter 2003 (unaudited)
($ in millions)
SEGMENT INCOME
December 31,
------------------------------------------------------------------------------
2003 2002 2001 2000 1999
------------- ------------- ------------- -------------- -------------
Variable Universal Life $ 35.0 $ 35.9 $ 30.2 $ 20.1 $ .8
Universal Life (1) 21.7 26.3 17.4 18.2 19.5
Term Life 3.8 4.7 1.3 (1.0) 1.5
Other Life and Annuity (2) 6.9 .8 1.7 4.6 9.8
------------- ------------- ------------- -------------- -------------
Total, Non-participating Life 67.4 67.7 50.6 41.9 31.6
Participating Life 36.1 33.3 21.4 (22.3) 15.6
------------- ------------- ------------- -------------- -------------
Total, Life Insurance 103.5 101.0 72.0 19.6 47.2
Annuities (4.1) (20.7) 10.9 4.2 30.8
------------- ------------- ------------- -------------- -------------
Segment Income, before income taxes 99.4 80.3 82.9 23.8 78.0
Allocated Income Taxes (3) 31.1 28.0 28.8 9.4 27.0
------------- ------------- ------------- -------------- -------------
Segment Income $ 68.3 $ 52.3 $ 54.1 $ 14.4 $ 51.0
============= ============= ============= ============== =============
(1) Universal Life includes interest sensitive whole life contracts.
(2) Other Life and Annuity includes WS Griffith.
(3) Tax benefits related to tax advantaged investments have been allocated to
the Life and Annuity Segment beginning in the quarter ended March 2003.
4
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
Fourth Quarter 2003 (unaudited)
($ in millions)
SEGMENT INCOME 2002 2003
---------------------------------------------- ---------------------------------------------
Quarters ended March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
Variable Universal Life $ 10.0 $ 8.1 $ 7.7 $ 10.2 $ 6.3 $ 9.3 $ 10.5 $ 9.0
Universal Life (1) 5.9 8.3 5.0 7.2 4.7 5.6 5.5 5.9
Term Life (.5) 1.9 (.8) 4.1 .4 (.8) .9 3.3
Other Life and Annuity (2) (1.3) 2.8 (.4) (.6) 3.1 1.2 .8 1.8
--------- --------- --------- --------- --------- --------- --------- ---------
Total, Non-participating Life 14.1 21.1 11.5 20.9 14.5 15.3 17.7 20.0
Participating Life 12.0 6.5 6.0 8.8 8.8 13.9 7.0 6.4
--------- --------- --------- --------- --------- --------- --------- ---------
Total, Life Insurance 26.1 27.6 17.5 29.7 23.3 29.2 24.7 26.4
Annuities 2.6 .8 (18.9) (5.0) (5.3) (1.4) .3 2.2
--------- --------- --------- --------- --------- --------- --------- ---------
Segment Income (Loss),
before income taxes 28.7 28.4 (1.4) 24.7 18.0 27.8 25.0 28.6
Applicable Income Taxes (3) 10.2 10.1 (.5) 8.4 4.0 8.4 10.7 8.0
--------- --------- --------- --------- --------- --------- --------- ---------
Segment Income (Loss) $ 18.5 $ 18.3 $ (.9) $ 16.3 $ 14.0 $ 19.4 $ 14.3 $ 20.6
========= ========= ========= ========= ========= ========= ========= =========
(1) Universal Life includes interest sensitive whole life contracts.
(2) Other Life and Annuity includes WS Griffith.
(3) Tax benefits related to tax advantaged investments have been allocated to
the Life and Annuity Segment beginning in the quarter ended March 2003.
5
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Fourth Quarter 2003 (unaudited)
($ in millions)
December 31,
----------------------------------------------------------------------------------
2003 2002 2001 2000 1999
-------------- -------------- -------------- -------------- --------------
PRE-TAX INCOME
Fees $ 30.1 $ 31.4 $ 29.5 $ 24.9 $ 22.7
Cost of Insurance (COI) 72.1 66.4 60.0 46.2 38.5
Interest Earned 5.6 7.0 4.5 5.7 4.7
Surrender Charges 6.9 4.4 3.3 3.5 3.0
-------------- -------------- -------------- -------------- --------------
Total Revenues 114.7 109.2 97.3 80.3 68.9
-------------- -------------- -------------- -------------- --------------
Net Death and Disability Benefits 23.3 22.9 15.3 15.5 13.4
Incurred Expenses 52.8 45.9 48.2 41.6 52.5
Interest Credited 3.6 3.7 3.6 3.1 2.2
Minority Interest .0 .8
-------------- -------------- -------------- -------------- --------------
Total Expenses 79.7 73.3 67.1 60.2 68.1
-------------- -------------- -------------- -------------- --------------
Pre-tax Income 35.0 35.9 30.2 20.1 .8
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 21.4 36.6 29.5 34.2 23.1
Controllable Expenses and Other 44.6 60.8 60.1 57.3 60.3
-------------- -------------- -------------- -------------- --------------
Total Current Expenses 66.0 97.4 89.6 91.5 83.4
Acquisition Costs Deferred (33.9) (68.1) (65.4) (56.9) (42.8)
Acquisition Costs Amortized 20.8 16.6 24.0 7.0 11.9
-------------- -------------- -------------- -------------- --------------
Incurred Expenses 52.8 45.9 48.2 41.6 52.5
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 353.4 465.7 336.1 258.1 204.7
Surrenders (69.4) (37.6) (31.2) (34.0) (22.2)
Deaths (1.4) (1.8) (1.7) (1.4) (1.7)
-------------- -------------- -------------- -------------- --------------
Net Sales 282.6 426.3 303.2 222.7 180.8
Performance 252.1 (149.8) (194.0) (128.1) 207.6
Fees (36.4) (35.8) (34.5) (33.0) (25.8)
Cost of Insurance (69.8) (66.4) (60.0) (46.2) (38.5)
Acquisitions 10.5
-------------- -------------- -------------- -------------- --------------
Change in Funds Under Management 428.5 174.3 14.7 15.4 334.6
Beginning Balance 1,270.3 1,096.0 1,081.3 1,065.9 731.3
-------------- -------------- -------------- -------------- --------------
Ending Balance 1,698.8 1,270.3 1,096.0 1,081.3 1,065.9
============== ============== ============== ============== ==============
LIFE INSURANCE IN FORCE $ 24,603.0 $ 23,788.2 $ 20,436.1 $ 17,743.3 $ 13,740.3
============== ============== ============== ============== ==============
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Fourth Quarter 2003 (unaudited)
($ in millions)
2002 2003
Quarters ended ---------------------------------------------- -----------------------------------------------
March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
PRE-TAX INCOME
Fees $ 7.7 $ 6.7 $ 8.6 $ 8.4 $ 7.6 $ 7.5 $ 8.1 $ 7.0
Cost of Insurance (COI) 15.8 15.8 16.6 18.2 17.9 18.1 17.6 18.5
Interest Earned 1.8 1.7 2.1 1.5 1.6 1.5 1.3 1.2
Surrender Charges .8 1.0 1.1 1.5 1.2 1.6 1.8 2.3
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Revenues 26.1 25.2 28.4 29.6 28.3 28.7 28.7 29.0
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Death and Disability Benefits 4.5 5.3 6.9 6.2 5.0 6.0 5.0 7.3
Incurred Expenses 10.6 10.8 12.6 11.9 16.1 12.5 12.3 11.9
Interest Credited .9 .9 1.0 .9 .9 1.0 1.0 .8
Minority Interest .1 .1 .2 .4
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses 16.1 17.1 20.7 19.4 22.0 19.5 18.3 20.0
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Pre-tax Income 10.0 8.1 7.7 10.2 6.3 9.3 10.5 9.0
========== ========== ========== ========== ========== ========== ========== ==========
- -----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 8.9 8.6 11.5 7.6 5.2 4.6 4.9 6.7
Controllable Expenses and Other 16.7 18.0 14.4 11.7 11.4 12.3 9.1 11.8
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Current Expenses 25.6 26.6 25.9 19.3 16.6 16.9 14.0 18.5
Acquisition Costs Deferred (18.4) (19.2) (18.6) (11.9) (8.0) (8.7) (7.0) (10.2)
Acquisition Costs Amortized 3.4 3.4 5.3 4.5 7.5 4.3 5.3 3.7
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Incurred Expenses 10.6 10.8 12.6 11.9 16.1 12.5 12.3 12.0
========== ========== ========== ========== ========== ========== ========== ==========
- -----------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 91.2 81.3 133.6 159.6 71.8 62.0 137.4 82.2
Surrenders (6.3) (9.5) (7.1) (14.7) (13.7) (11.5) (25.4) (18.8)
Deaths (.6) (.6) (.3) (.3) (.2) (.1) (.5) (.6)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Sales 84.3 71.2 126.2 144.6 57.9 50.4 111.5 62.8
Performance (4.5) (79.6) (109.5) 43.8 (8.5) 110.4 52.0 98.2
Fees (9.2) (8.4) (8.9) (9.3) (8.4) (7.9) (10.0) (10.1)
Cost of Insurance (15.8) (15.8) (16.6) (18.2) (17.9) (16.8) (17.2) (17.9)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Change in Funds Under Management 54.8 (32.6) (8.8) 160.9 23.1 136.1 136.3 133.0
Beginning Balance 1,096.0 1,150.8 1,118.2 1,109.4 1,270.3 1,293.5 1,429.6 1,565.9
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Ending Balance 1,150.8 1,118.2 1,109.4 1,270.3 1,293.4 1,429.6 1,565.9 1,698.9
========== ========== ========== ========== ========== ========== ========== ==========
LIFE INSURANCE IN FORCE $21,136.1 $22,168.9 $22,719.1 $23,788.2 $23,744.4 $24,096.1 $24,366.4 $24,603.0
========== ========== ========== ========== ========== ========== ========== ==========
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Fourth Quarter 2003 (unaudited)
($ in millions)
December 31,
----------------------------------------------------------------------------------
2003 2002 2001 2000 1999
-------------- -------------- -------------- -------------- --------------
PRE-TAX INCOME
Fees $ 17.3 $ 11.9 $ 8.6 $ 8.4 $ 7.6
Cost of Insurance 78.9 71.6 66.2 64.8 64.2
Interest Earned 98.3 108.4 111.9 108.7 112.0
Surrender Charges 2.5 3.9 4.0 5.5 7.2
-------------- -------------- -------------- -------------- --------------
Total Revenues 196.9 195.8 190.7 187.4 191.0
-------------- -------------- -------------- -------------- --------------
Net Death Benefits and Supplemental Benefits 51.2 39.5 48.3 45.4 41.8
Incurred Expenses 46.0 44.3 34.6 32.5 35.0
Interest Credited 78.0 85.7 90.4 91.3 94.7
-------------- -------------- -------------- -------------- --------------
Total Expenses 175.2 169.5 173.3 169.2 171.5
-------------- -------------- -------------- -------------- --------------
Pre-tax Income 21.7 26.3 17.4 18.2 19.5
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 28.2 15.2 9.8 5.8 5.8
Controllable Expenses 75.0 52.6 32.1 23.7 19.7
-------------- -------------- -------------- -------------- --------------
Total Current Expenses 103.2 67.8 41.9 29.5 25.5
Acquisition Cost Deferred (74.9) (40.2) (20.0) (8.7) (7.3)
Acquisition Cost Amortized 17.7 16.7 12.7 11.7 16.8
-------------- -------------- -------------- -------------- --------------
Incurred Expenses 46.0 44.3 34.6 32.5 35.0
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 217.8 149.3 104.6 90.9 97.2
Surrenders (118.6) (107.4) (99.0) (108.2) (158.5)
Deaths (19.4) (25.0) (18.5) (20.9) (20.2)
-------------- -------------- -------------- -------------- --------------
Net Sales 79.8 16.9 (12.9) (38.2) (81.5)
Interest Credited 78.0 85.8 90.4 91.3 94.7
Fees (24.9) (16.7) (10.5) (6.2) (4.6)
Cost of Insurance (78.9) (71.6) (66.2) (64.8) (64.2)
-------------- -------------- -------------- -------------- --------------
Change in Funds Under Management 54.0 14.4 .8 (17.9) (55.6)
Beginning Balance 1,510.0 1,495.6 1,494.8 1,512.7 1,568.3
-------------- -------------- -------------- -------------- --------------
Ending Fund Balance 1,564.0 1,510.0 1,495.6 1,494.8 1,512.7
============== ============== ============== ============== ==============
LIFE INSURANCE IN FORCE $ 12,830.3 $ 10,476.7 $ 9,465.6 $ 9,644.2 $ 9,955.7
============== ============== ============== ============== ==============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Fourth Quarter 2003 (unaudited)
($ in millions)
PRE-TAX INCOME 2002 2003
Quarter ended ---------------------------------------------- -----------------------------------------------
March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Fees $ 2.6 $ 2.7 $ 2.9 $ 3.7 $ 4.0 $ 2.9 $ 4.6 $ 5.8
Cost of Insurance 17.2 17.7 17.9 18.8 18.8 19.3 19.7 21.0
Interest Earned 26.4 27.9 26.8 27.3 24.7 24.6 24.5 24.4
Surrender Charges 1.2 1.4 .8 .5 .7 .6 .6 .6
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Revenues 47.4 49.7 48.4 50.3 48.2 47.4 49.4 51.8
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Death Benefits and
Supplemental Benefits 10.1 9.6 10.6 9.1 12.3 9.2 14.0 15.7
Incurred Expenses 9.9 10.3 11.5 12.6 11.0 12.3 11.6 11.1
Interest Credited 21.5 21.5 21.3 21.4 20.2 20.3 18.4 19.1
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses 41.5 41.4 43.4 43.1 43.5 41.8 43.9 45.9
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Pre-tax Income 5.9 8.3 5.0 7.2 4.7 5.6 5.5 5.9
========== ========== ========== ========== ========== ========== ========== ==========
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 2.0 3.1 3.7 6.4 6.2 4.3 6.9 10.8
Controllable Expenses 9.6 10.5 12.6 19.9 16.0 18.6 17.9 22.5
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Current Expenses 11.6 13.6 16.3 26.3 22.2 22.8 24.8 33.4
Acquisition Cost Deferred (5.8) (7.2) (10.0) (17.2) (15.3) (15.0) (18.2) (26.4)
Acquisition Cost Amortized 4.1 3.9 5.2 3.5 4.1 4.5 5.0 4.1
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Incurred Expenses 9.9 10.3 11.5 12.6 11.0 12.3 11.6 11.1
========== ========== ========== ========== ========== ========== ========== ==========
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 31.6 34.9 33.3 49.5 45.6 41.2 56.3 74.7
Surrenders (25.0) (30.2) (26.7) (25.5) (30.9) (27.3) (27.6) (32.8)
Deaths (7.3) (2.2) (12.9) (2.6) (5.9) (3.1) (5.6) (4.8)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Sales (.7) 2.5 (6.3) 21.4 8.8 10.8 23.1 37.1
Interest Credited 21.5 21.5 21.3 21.5 20.2 20.3 18.4 19.1
Fees (3.1) (3.4) (4.4) (5.8) (5.5) (4.2) (6.1) (9.1)
Cost of Insurance (17.2) (17.7) (17.9) (18.8) (18.8) (19.3) (19.8) (21.0)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Change in Funds Under Management .5 2.9 (7.3) 18.3 4.7 7.6 15.6 26.1
Beginning Balance 1,495.6 1,496.1 1,499.0 1,491.7 1,510.0 1,514.7 1,522.3 1,537.9
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Ending Fund Balance 1,496.1 1,499.0 1,491.7 1,510.0 1,514.7 1,522.3 1,537.9 1,564.0
========== ========== ========== ========== ========== ========== ========== ==========
LIFE INSURANCE IN FORCE $ 9,683.1 $ 9,719.2 $ 9,907.3 $10,476.7 $10,914.9 $11,270.5 $11,763.7 $12,830.3
========== ========== ========== ========== ========== ========== ========== ==========
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Fourth Quarter 2003 (unaudited)
($ in millions)
LIFE INSURANCE SALES
December 31,
--------------------------------------------------------------------------------
2003 2002 2001 2000 1999
-------------- -------------- -------------- ------------- --------------
WHOLESALER CHANNEL
Variable Universal Life $ 30.1 $ 62.5 $ 53.8 $ 61.1 $ 44.8
Universal Life/Interest Sensitive 67.5 36.9 14.5 8.0 7.6
Term Life 19.2 15.1 11.4 14.6 10.5
Participating Whole Life .6 4.8 9.7 22.6 35.7
-------------- -------------- -------------- ------------- --------------
Life Insurance Annualized Premium (1) 117.4 119.3 89.4 106.3 98.6
============== ============== ============== ============= ==============
Variable Universal Life 20.1 25.1 49.7 46.2 63.2
Universal Life/Interest Sensitive 61.6 29.9 14.5 1.8 .3
Participating Whole Life .8 2.4 5.4 24.4
-------------- -------------- -------------- ------------- --------------
Life Insurance Single Premium 81.7 55.8 66.6 53.4 87.9
============== ============== ============== ============= ==============
Variable Universal Life 50.1 87.6 103.5 107.3 108.0
Universal Life/Interest Sensitive 129.2 66.8 29.0 9.8 7.9
Term Life 19.2 15.1 11.4 14.6 10.5
Participating Whole Life .7 5.6 12.1 28.0 60.1
-------------- -------------- -------------- ------------- --------------
Total Wholesaler Life Insurance Premium $ 199.2 $ 175.1 $ 156.0 $ 159.7 $ 186.5
============== ============== ============== ============= ==============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) $ 149.5 $ 222.5 $ 83.7 $ 34.9
Annuity 394.9 142.6 164.0 109.6
-------------- -------------- -------------- -------------
Total Private Placement Life and Annuity Deposits $ 544.4 $ 365.1 $ 247.7 $ 144.5
============== ============== ============== =============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,535.5 $ 864.7 $ 494.1 $ 290.0
============== ============== ============== =============
(1) Annualized Premium represents first year premiums on an annual basis.
Total Premium represents Annualized and Single premiums.
10
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Fourth Quarter 2003 (unaudited)
($ in millions)
LIFE INSURANCE SALES 2002 2003
Quarters ended --------------------------------------- ---------------------------------------------
March June September December March June September December
--------- --------- --------- --------- --------- ----------- ----------- -----------
WHOLESALER CHANNEL
Variable Universal Life $ 22.3 $ 16.0 $ 11.3 $ 12.9 $ 6.3 $ 7.0 $ 5.7 $ 11.1
Universal Life/Interest Sensitive 8.0 3.6 6.9 18.4 11.9 10.8 14.1 30.7
Term Life 2.7 3.3 3.7 5.3 4.5 4.8 4.8 5.2
Participating Whole Life 1.1 1.6 .7 1.4 .6
--------- --------- --------- --------- --------- ----------- ----------- -----------
Life Insurance Annualized Premium (1) 34.1 24.5 22.6 38.0 23.3 22.6 24.6 47.0
========= ========= ========= ========= ========= =========== =========== ===========
Variable Universal Life 4.9 6.8 6.9 6.5 4.1 7.1 3.2 5.6
Universal Life/Interest Sensitive 2.7 6.7 6.1 14.5 7.2 8.3 20.3 25.8
Participating Whole Life .4 .3 .1
--------- --------- --------- --------- --------- ----------- ----------- -----------
Life Insurance Single Premium 8.0 13.8 13.0 21.1 11.3 15.4 23.5 31.4
========= ========= ========= ========= ========= =========== =========== ===========
Variable Universal Life 27.2 22.8 18.2 19.4 10.4 14.1 8.9 16.7
Universal Life/Interest Sensitive 10.7 10.3 13.0 32.9 19.1 19.1 34.4 56.5
Term Life 2.7 3.3 3.7 5.3 4.5 4.8 4.8 5.2
Participating Whole Life 1.5 1.9 .7 1.5 .6
--------- --------- --------- --------- --------- ----------- ----------- -----------
Total Wholesaler Life Insurance Premium $ 42.1 $ 38.3 $ 35.6 $ 59.1 $ 34.6 $ 38.0 $ 48.1 $ 78.4
========= ========= ========= ========= ========= =========== =========== ===========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life
(annualized and single) 19.8 23.5 72.7 106.5 19.7 13.8 90.3 25.7
Annuity 126.7 2.9 6.4 6.6 30.8 113.6 227.8 22.8
--------- --------- --------- --------- --------- ----------- ----------- -----------
Total Private Placement Life and
Annuity Deposits $ 146.5 $ 26.4 $ 79.1 $ 113.1 $ 50.5 $ 127.4 $ 318.1 $ 48.5
========= ========= ========= ========= ========= =========== =========== ===========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 627.6 $ 667.0 $ 769.0 $ 864.7 $ 946.0 $ 1,091.3 $ 1,385.3 $ 1,535.5
========= ========= ========= ========= ========= =========== =========== ===========
(1) Annualized Premium represents first year premiums on an annual basis.
Total Premium represents Annualized and Single premiums.
11
THE PHOENIX COMPANIES, INC.
ANNUITIES
Fourth Quarter 2003 (unaudited)
($ in millions)
December 31,
----------------------------------------------------------------------------------
2003 2002 2001 2000 1999
-------------- -------------- -------------- -------------- --------------
PRE-TAX INCOME
Fees $ 56.9 $ 57.1 $ 64.6 $ 78.2 $ 71.9
Interest Earned 139.4 98.3 40.3 16.3 13.7
Surrender Charges 7.4 6.6 3.9 5.1 5.5
-------------- -------------- -------------- -------------- --------------
Total Revenues 203.7 162.0 108.8 99.6 91.1
-------------- -------------- -------------- -------------- --------------
Policy Benefits and Change in Reserves
Mortality Cost 4.3 10.9 4.3 3.0 2.7
Incurred Expenses 77.3 79.8 54.4 77.3 48.9
Interest Credited 126.2 92.0 39.2 15.1 8.7
-------------- -------------- -------------- -------------- --------------
Total Expenses 207.8 182.7 97.9 95.4 60.3
-------------- -------------- -------------- -------------- --------------
Pre-tax Income (Loss) (4.1) (20.7) 10.9 4.2 30.8
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 51.1 81.3 44.0 29.2 14.5
Controllable Expenses 65.3 66.5 75.2 54.1 32.4
-------------- -------------- -------------- -------------- --------------
Total Current Expenses 116.4 147.8 119.2 83.2 46.9
Acquisition Cost Deferred (65.5) (102.9) (83.8) (43.0) (21.1)
Acquisition Cost Amortized 26.4 34.9 19.0 37.0 23.1
-------------- -------------- -------------- -------------- --------------
Incurred Expenses $ 77.3 $ 79.8 $ 54.4 $ 77.3 $ 48.9
============== ============== ============== ============== ==============
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
Fourth Quarter 2003 (unaudited)
($ in millions)
PRE-TAX INCOME 2002 2003
Quarters ended ------------------------------------------ ------------------------------------------
March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
Fees $ 15.2 $ 14.4 $ 14.0 $ 13.5 $ 12.8 $ 13.3 $ 15.0 $ 15.7
Interest Earned 16.6 22.8 30.3 28.6 34.1 34.1 35.9 35.4
Surrender Charges 1.1 1.2 2.3 2.0 1.5 1.4 1.8 2.6
--------- --------- --------- --------- --------- --------- --------- ---------
Total Revenues 32.9 38.4 46.6 44.1 48.4 48.8 52.7 53.7
--------- --------- --------- --------- --------- --------- --------- ---------
Policy Benefits and Change in Reserves
Mortality Cost 2.0 1.9 5.2 1.7 2.8 1.8 (.3)
Incurred Expenses 13.1 16.5 31.0 19.2 19.4 20.0 17.9 19.9
Interest Credited 15.3 19.2 29.3 28.2 31.5 30.2 32.7 31.9
--------- --------- --------- --------- --------- --------- --------- ---------
Total Expenses 30.4 37.6 65.5 49.1 53.7 50.3 52.4 51.5
--------- --------- --------- --------- --------- --------- --------- ---------
Pre-tax Income (Loss) 2.6 .8 (18.9) (5.0) (5.3) (1.4) .3 2.2
========= ========= ========= ========= ========= ========= ========= =========
- -----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 11.4 17.5 44.1 8.3 16.7 11.6 11.5 11.3
Controllable Expenses 16.3 16.7 16.1 17.4 18.0 16.3 14.8 16.2
--------- --------- --------- --------- --------- --------- --------- ---------
Total Current Expenses 27.7 34.2 60.2 25.7 34.7 27.9 26.3 27.5
Acquisition Cost Deferred (18.9) (24.6) (48.5) (10.9) (24.7) (14.0) (14.7) (12.2)
Acquisition Cost Amortized 4.3 6.9 19.3 4.4 9.4 6.1 6.3 4.6
--------- --------- --------- --------- --------- --------- --------- ---------
Incurred Expenses $ 13.1 $ 16.5 $ 31.0 $ 19.2 $ 19.4 $ 20.0 $ 17.9 $ 19.9
========= ========= ========= ========= ========= ========= ========= =========
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Fourth Quarter 2003 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT
December 31,
----------------------------------------------------------------------------------
2003 2002 2001 2000 1999
-------------- -------------- -------------- -------------- --------------
Annuities
Deposits $ 1,428.1 $ 2,258.4 $ 1,492.9 $ 687.0 $ 377.4
Surrenders (854.9) (736.7) (482.3) (608.5) (618.1)
-------------- -------------- -------------- -------------- --------------
Net Sales 573.2 1,521.7 1,010.6 78.5 (240.7)
Performance and Interest Credited 865.3 (338.0) (563.1) (415.2) 991.1
Fees (57.7) (58.8) (67.3) (78.2) (71.9)
Deaths (70.4) (40.6) (34.3) (24.9) (22.0)
Acquisitions 114.9
-------------- -------------- -------------- -------------- --------------
Change in Funds Under Management 1,310.4 1,084.3 345.9 (439.8) 771.4
Beginning Balance 5,833.4 4,749.1 4,403.2 4,843.0 4,072.3
-------------- -------------- -------------- -------------- --------------
Ending Balance $ 7,143.8 $ 5,833.4 $ 4,749.1 $ 4,403.2 $ 4,843.7
============== ============== ============== ============== ==============
VA Funds in Guaranteed Interest Accounts (1) $ 2,067.4 $ 2,159.3 $ 955.0 $ 333.5 $ 210.9
============== ============== ============== ============== ==============
Fixed Annuities (1) $ 1,056.9 $ 737.2 $ 267.3
============== ============== ==============
(1) Amounts are included in the annuities funds under management table above.
14
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Fourth Quarter 2003 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT 2002 2003
Quarters ended ------------------------------------------ ------------------------------------------
March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
Annuities
Deposits $ 575.4 $ 661.0 $ 804.2 $ 217.8 $ 432.1 $ 371.0 $ 452.1 $ 172.9
Surrenders (127.0) (189.4) (180.5) (239.8) (231.6) (195.1) (214.6) (213.6)
--------- --------- --------- --------- --------- --------- --------- ---------
Net Sales 448.4 471.6 623.7 (22.0) 200.5 175.9 237.5 (40.7)
Performance and Interest Credited (1.4) (219.0) (294.7) 177.1 20.2 351.4 140.1 353.6
Fees (15.9) (15.7) (13.8) (13.4) (11.5) (15.4) (14.4) (16.4)
Deaths (7.2) (9.0) (11.4) (13.0) (22.6) (13.0) (16.7) (18.1)
--------- --------- --------- --------- --------- --------- --------- ---------
Change in Funds Under Management 423.9 227.9 303.8 128.7 186.6 498.9 346.5 278.4
Beginning Balance 4,749.1 5,173.0 5,400.9 5,704.7 5,833.4 6,020.0 6,518.9 6,865.4
--------- --------- --------- --------- --------- --------- --------- ---------
Ending Balance $5,173.0 $5,400.9 $5,704.7 $5,833.4 $6,020.0 $6,518.9 $6,865.4 $7,143.8
========= ========= ========= ========= ========= ========= ========= =========
VA Funds in Guaranteed Interest Accounts (1) $1,179.5 $1,534.2 $2,118.1 $2,159.3 $2,224.8 $2,210.5 $2,155.5 $2,067.4
========= ========= ========= ========= ========= ========= ========= =========
Fixed Annuities (1) $ 378.1 $ 559.7 $ 706.6 $ 737.2 $ 921.4 $1,002.2 $1,055.7 $1,056.9
========= ========= ========= ========= ========= ========= ========= =========
(1) Amounts are included in the annuities funds under management table above.
15
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Fourth Quarter 2003 (unaudited)
($ in millions)
December 31,
----------------------------------------------------------------------------------
2003 2002 2001 2000 1999
-------------- -------------- -------------- -------------- --------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 329.3 $ 310.4 $ 252.8 $ 211.4 $ 161.5
Universal Life 219.2 163.1 134.7 127.4 130.4
Variable Annuities 289.0 264.9 211.4 147.0 141.0
Fixed Annuities 45.2 26.3 .4
Participating 551.0 554.6 517.4 554.8 786.6
Other 28.1 21.2 17.5 17.4 21.7
Adjustment for Unrealized Gains and Losses (94.1) (106.4) (10.5) (39.0) 77.6
-------------- -------------- -------------- -------------- --------------
Total $ 1,367.7 $ 1,234.1 $ 1,123.7 $ 1,019.0 $ 1,318.8
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 183.0 234.9
Statutory Reserve 17.3 15.8
GAAP Reserve 7.8 8.7
============== ==============
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Fourth Quarter 2003 (unaudited)
($ in millions)
2002 2003
-------------------------------------------- --------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ----------- ---------- ---------- ---------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 268.6 $ 284.3 $ 303.0 $ 310.4 $ 310.9 $ 315.4 $ 323.5 $ 329.3
Universal Life 139.1 142.4 147.2 163.1 172.6 183.4 196.7 219.2
Variable Annuities 219.5 230.9 267.6 264.9 271.2 277.5 288.9 289.0
Fixed Annuities 6.1 12.4 17.0 26.3 35.3 36.8 37.2 45.2
Participating 544.8 557.5 555.6 554.6 556.4 549.9 551.2 551.0
Other 17.7 18.8 19.8 21.2 22.6 24.4 26.4 28.1
Adjustment for Unrealized
Investment Gains and Losses (3.9) (34.3) (74.9) (106.4) (99.0) (139.4) (88.2) (94.1)
---------- ---------- ---------- ----------- ---------- ---------- ---------- -----------
Total $ 1,191.9 $ 1,212.0 $ 1,235.3 $ 1,234.1 $ 1,270.0 $ 1,248.0 $ 1,335.6 $ 1,367.7
========== ========== ========== =========== ========== ========== ========== ===========
- -----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED
MINIMUM DEATH BENEFITS
Death Benefit in Excess
of Fund Value $ 337.5 $ 440.8 $ 822.5 $ 1,148.4 $ 1,188.4 $ 898.6 $ 797.0 $ 616.9
Death Benefit in Excess of Fund Value,
Net of Reinsurance 5.7 10.3 214.0 234.9 242.3 178.7 161.1 183.0
Statutory Reserve 5.3 6.0 16.6 15.8 16.1 12.9 19.2 17.3
GAAP Reserve .3 .5 8.1 8.7 9.2 7.9 8.1 7.8
========== ========== ========== ========== ========== ========== ========== ===========
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Fourth Quarter 2003
($ in millions)
SEGMENT INCOME
December 31,
------------------------------------------------------------------------------
2003 2002 2001 2000 1999
------------- ------------- ------------- ------------- -------------
Investment Management Fees $ 213.7 $ 227.4 $ 221.6 $ 282.1 $ 247.0
Mutual Funds - Ancillary Fees 18.4 20.4 24.3 32.4 31.7
Other Revenue 9.3 10.2 12.9 8.8 4.7
------------- ------------- ------------- ------------- -------------
Total Revenues 241.4 258.0 258.8 323.3 283.4
------------- ------------- ------------- ------------- -------------
Employment Expenses 135.2 140.5 130.0 137.4 114.0
Other Operating Expenses 72.2 77.7 83.2 79.9 69.7
Amortization of Intangibles 33.2 32.5 49.0 31.8 30.3
Intangible Asset Impairments 66.3
------------- ------------- ------------- ------------- -------------
Total Operating Expenses 240.6 317.0 262.2 249.1 214.0
------------- ------------- ------------- ------------- -------------
Management Income (Loss) .8 (59.0) (3.4) 74.2 69.4
Other Income (Expense) - Net 2.5 1.0 1.6 3.7 4.0
Minority Interest (12.0) (11.9) (6.9) (16.5) (13.4)
------------- ------------- ------------- ------------- -------------
Segment Income, before income taxes (8.7) (69.9) (8.7) 61.4 60.0
Applicable Income taxes (Benefit) (3.3) (6.0) 2.6 32.0 28.9
------------- ------------- ------------- ------------- -------------
Segment Income (Loss) $ (5.4) $ (63.9) $ (11.3) $ 29.4 $ 31.1
============= ============= ============= ============= =============
- ----------------------------------------------------------------------------------------------------------------------
18
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Fourth Quarter 2003 (unaudited)
($ in millions)
SEGMENT INCOME 2002 2003
----------------------------------------------- ----------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Investment Management Fees $ 59.2 $ 61.8 $ 55.6 $ 50.8 $ 48.7 $ 49.4 $ 53.6 $ 62.0
Mutual Funds - Ancillary Fees 5.4 5.3 4.9 4.8 4.4 4.7 4.3 5.0
Other Revenue 2.4 2.7 2.3 2.8 1.6 2.2 2.7 2.8
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------
Total Revenues 67.0 69.8 62.8 58.4 54.7 56.3 60.6 69.8
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------
Employment Expenses 38.2 40.7 32.1 28.8 30.7 34.6 34.9 35.0
Other Operating Expenses 18.9 21.0 20.5 18.0 19.5 17.7 18.2 16.8
Amortization of Intangibles 8.1 7.8 8.7 7.9 8.4 8.2 8.3 8.3
Intangible Asset Impairments 66.3
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------
Total Operating Expenses 65.2 69.5 127.6 54.7 58.6 60.5 61.4 60.1
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------
Management Income (Loss) 1.8 .3 (64.8) 3.7 (3.9) (4.2) (0.8) 9.7
Other Income (Expense) - Net .4 .1 .5 .9 .4 .6 .6
Minority Interest (2.9) (3.3) (3.1) (2.6) (2.8) (1.9) (2.9) (4.4)
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------
Segment Income, before income taxes (1.1) (2.6) (67.8) 1.6 (5.8) (5.7) (3.1) 5.9
Applicable Income Taxes (Benefit) (.5) (1.4) (5.2) 1.1 (2.1) (2.3) (1.2) 2.3
---------- ---------- ---------- ---------- ---------- ----------- ---------- ----------
Segment Income (Loss) $ (.6) $ (1.2) $ (62.6) $ .5 $ (3.7) $ (3.4) $ (1.9) $ 3.6
========== ========== ========== ========== ========== ========== ========== ==========
- ------------------------------------------------------------------------------------------------------------------------------------
19
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
Fourth Quarter 2003 (unaudited)
($ in millions)
December 31,
-------------------------------------------------------------------
2003 2002 2001 2000 1999
----------- ----------- ----------- ----------- -----------
PRIVATE CLIENT PRODUCTS:
Managed Accounts
Inflows $ 2,268.0 $ 4,421.2 $ 2,721.9 $ 3,869.4 $ 2,143.2
Outflows (2,656.6) (2,716.3) (2,546.4) (1,619.8) (1,034.3)
----------- ----------- ----------- ----------- -----------
Net Flows (388.6) 1,704.9 175.5 2,249.6 1,108.9
Performance 2,867.8 (3,278.3) (3,545.8) (2,859.1) 1,939.0
Acquisitions (Divestitures) 5,914.3 748.5 (130.0) 433.0
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 2,479.2 4,340.9 (2,621.8) (739.5) 3,480.9
Beginning Balance 13,179.2 8,838.3 11,460.1 12,199.6 8,718.7
----------- ----------- ----------- ----------- -----------
Ending Balance 15,658.4 13,179.2 8,838.3 11,460.1 12,199.6
----------- ----------- ----------- ----------- -----------
Mutual Funds
Inflows 1,789.6 1,332.8 1,817.8 2,068.5 1,657.8
Outflows (2,266.7) (2,754.0) (2,756.4) (3,492.0) (3,216.3)
----------- ----------- ----------- ----------- -----------
Net Flows (477.1) (1,421.2) (938.6) (1,423.5) (1,558.5)
Performance 1,748.0 (1,811.8) (2,556.5) (1,933.2) 3,124.7
Acquisitions (Divestitures) 333.5 2,099.8
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 1,270.9 (2,899.5) (3,495.1) (3,356.7) 3,666.0
Beginning Balance 8,322.1 11,221.6 14,716.7 18,073.4 14,407.4
----------- ----------- ----------- ----------- -----------
Ending Balance 9,593.0 8,322.1 11,221.6 14,716.7 18,073.4
----------- ----------- ----------- ----------- -----------
INSTITUTIONAL PRODUCTS:
Inflows 2,974.9 4,380.4 4,989.0 5,572.5 5,843.7
Outflows (3,452.2) (4,480.0) (3,766.9) (7,355.6) (5,025.6)
----------- ----------- ----------- ----------- -----------
Net Flows (477.3) (99.6) 1,222.1 (1,783.1) 818.1
Performance (1) 1,172.3 (2,773.1) (1,152.2) 935.4 1,628.2
Other (1) 750.8 1,789.0 1,438.4 141.3 274.3
Acquisitions (Divestitures) 1,507.7 105.9 (3,206.0) 1,246.5
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 1,445.8 424.0 1,614.2 (3,912.4) 3,967.1
Beginning Balance 32,454.2 32,030.2 30,416.0 34,328.4 30,361.3
----------- ----------- ----------- ----------- -----------
Ending Balance 33,900.0 32,454.2 32,030.2 30,416.0 34,328.4
----------- ----------- ----------- ----------- -----------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS:
Inflows 7,032.5 10,134.4 9,528.7 11,510.4 9,644.7
Outflows (8,375.5) (9,950.3) (9,069.7) (12,467.4) (9,276.2)
----------- ----------- ----------- ----------- -----------
Net Flows (1,343.0) 184.1 459.0 (957.0) 368.5
Performance (1) 5,788.1 (7,863.2) (7,254.5) (3,856.9) 6,691.9
Other (1) 750.8 1,789.0 1,438.4 141.3 274.3
Acquisitions (Divestitures) 7,755.5 854.4 (3,336.0) 3,779.3
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 5,195.9 1,865.4 (4,502.7) (8,008.6) 11,114.0
Beginning Balance 53,955.5 52,090.1 56,592.8 64,601.4 53,487.4
----------- ----------- ----------- ----------- -----------
Ending Balance $ 59,151.4 $ 53,955.5 $ 52,090.1 $ 56,592.8 $ 64,601.4
=========== =========== =========== =========== ===========
Variable Product Change in Assets Under Management
included in Mutual Funds above $ 200.4 $ (686.5) $ (734.7) $ (634.6) $ 576.4
=========== =========== =========== =========== ===========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
20
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
Fourth Quarter 2003 (unaudited)
($ in millions)
2002 2003
----------------------------------------------- -----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
PRIVATE CLIENT PRODUCTS:
Managed Accounts
Inflows $ 1,149.7 $ 1,732.5 $ 892.2 $ 646.8 $ 568.8 $ 551.2 $ 525.9 $ 622.1
Outflows (538.0) (816.3) (810.1) (551.9) (688.4) (612.6) (559.5) (796.1)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows 611.7 916.2 82.1 94.9 (119.6) (61.4) (33.6) (174.0)
Performance 661.2 (1,882.0) (2,320.1) 262.6 434.8 1,341.4 239.4 852.2
Acquisitions (Divestitures) 5,809.0 105.3
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 7,081.9 (965.8) (2,132.7) 357.5 315.2 1,280.0 205.8 678.2
Beginning Balance 8,838.3 15,920.2 14,954.4 12,821.7 13,179.2 13,494.4 14,774.4 14,980.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Ending Balance 15,920.2 14,954.4 12,821.7 13,179.2 13,494.4 14,774.4 14,980.2 15,658.4
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Mutual Funds:
Inflows 282.1 370.5 318.4 361.8 313.3 449.2 576.6 450.5
Outflows (603.7) (727.9) (610.5) (811.9) (498.8) (542.9) (598.2) (626.8)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows (321.6) (357.4) (292.1) (450.1) (185.5) (93.7) (21.6) (176.3)
Performance (90.2) (1,109.9) (994.7) 383.0 (101.4) 897.1 299.2 653.1
Acquisitions (Divestitures) 333.5
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management (78.3) (1,467.3) (1,286.8) (67.1) (286.9) 803.4 277.6 476.8
Beginning Balance 11,221.6 11,143.3 9,676.0 8,389.2 8,322.1 8,035.2 8,838.6 9,116.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Ending Balance 11,143.3 9,676.0 8,389.2 8,322.1 8,035.2 8,838.6 9,116.2 9,593.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
INSTITUTIONAL PRODUCTS:
Inflows 832.7 960.6 1,798.6 788.5 793.7 918.2 576.8 686.2
Outflows (723.3) (2,071.5) (1,178.3) (506.9) (640.9) (1,075.1) (722.3) (1,013.9)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows 109.4 (1,110.9) 620.3 281.6 152.8 (156.9) (145.5) (327.7)
Performance (1) (425.9) (1,112.1) (1,063.0) (172.1) (1,724.4) 1,529.4 406.5 960.8
Other (1) 409.4 518.8 600.3 260.5 496.4 154.7 71.0 28.7
Acquisitions (Divestitures) 1,507.7
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 1,600.6 (1,704.1) 157.5 370.0 (1,075.2) 1,527.2 332.0 661.8
Beginning Balance 32,030.2 33,630.8 31,926.6 32,084.2 32,454.2 31,379.0 32,906.2 33,238.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Ending Balance 33,630.8 31,926.6 32,084.2 32,454.2 31,379.0 32,906.2 33,238.2 33,900.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL PRIVATE CLIENT AND
INSTITUTIONAL PRODUCTS:
Inflows 2,264.5 3,063.6 3,009.2 1,797.1 1,675.8 1,918.6 1,679.3 1,758.8
Outflows (1,865.0) (3,615.7) (2,598.9) (1,870.7) (1,828.1) (2,230.6) (1,880.0) (2,436.8)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows 399.5 (552.1) 410.3 (73.6) (152.3) (312.0) (200.7) (678.0)
Performance (1) 145.1 (4,104.0) (4,377.8) 473.5 (1,391.0) 3,767.9 945.1 2,466.1
Other (1) 409.4 518.8 600.3 260.5 496.4 154.7 71.0 28.7
Acquisitions (Divestitures) 7,650.2 105.3
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 8,604.2 (4,137.2) (3,262.0) 660.4 (1,046.9) 3,610.6 815.4 1,816.8
Beginning Balance 52,090.1 60,694.3 56,557.0 53,295.1 53,955.5 52,908.6 56,519.2 57,334.6
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Ending Balance $ 60,694.3 $ 56,557.0 $ 53,295.1 $ 53,955.5 $ 52,908.6 $ 56,519.2 $ 57,334.6 $ 59,151.4
=========== =========== =========== =========== =========== =========== =========== ===========
Variable Product Change in Assets
Under Management included in
Mutual Funds above $ (123.2) $ (314.9) $ (273.8) $ 25.4 $ (106.4) $ 155.1 $ 54.0 $ 97.7
=========== =========== =========== =========== =========== =========== =========== ===========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
21
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Fourth Quarter 2003
($ in millions)
December 31,
--------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
SEGMENT INCOME
Operating Loss $ (5.8) $ (7.4) $ (7.3) $ (7.8) $ (8.9)
Realized Gains (Losses) on Cash
and Stock Distributions 4.9 (4.7) 26.2 222.2 84.7
Change in Unrealized Gains on
Investments Held in Partnerships 37.1 (47.2) (178.5) 62.9 64.1
---------- ---------- ---------- ---------- ----------
Equity in Partnership Earnings,
before income taxes 36.2 (59.3) (159.6) 277.3 139.9
Applicable Income Taxes (Benefit) 12.7 (20.7) (55.9) 97.1 49.0
---------- ---------- ---------- ---------- ----------
Segment Income (Loss) 23.5 (38.6) $ (103.7) $ 180.2 $ 90.9
========== ========== ========== ========== ==========
- ----------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 31.0 42.2 47.0 97.0 108.5
Equity In Earnings of Partnerships 36.2 (59.3) (159.6) 277.3 139.9
Distributions (32.2) (41.8) (63.0) (245.1) (101.5)
Sale of Partnership Interests and
Transfer to Closed Block (52.2)
Realized Loss on Sale of Partnership
Interests and Transfer to Closed Block (14.3) (5.0)
---------- ---------- ---------- ---------- ----------
Change in Venture Capital Investments (31.5) (63.9) (175.6) 129.2 146.9
Beginning Balance 227.8 291.7 467.3 338.1 191.2
---------- ---------- ---------- ---------- ----------
Ending Balance 196.3 $ 227.8 $ 291.7 $ 467.3 $ 338.1
========== ========== ========== ========== ==========
- ----------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 36.8 25.0 41.3
Telecom 13.3 10.2 19.1
Biotech 16.3 11.1 14.1
Healthcare 8.2 9.2 10.7
Consumer and Business Products
and Services 29.6 45.9 46.6
Financial Services 28.5 28.1 30.3
Other 44.9 50.6 57.8
---------- ---------- ----------
Total Private Holdings 177.6 180.1 219.9
Public Holdings 11.3 23.0 39.8
Cash and Cash Equivalents 5.5 21.6 22.5
Other 1.9 3.1 9.5
---------- ---------- ----------
Total $ 196.3 $ 227.8 $ 291.7
========== ========== ==========
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Fourth Quarter 2003 (unaudited)
($ in millions)
2002 2003
------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
SEGMENT INCOME
Operating Loss $ (2.0) $ (1.6) $ (2.2) $ (1.5) $ (.9) $ (2.6) $ (1.8) $ (.5)
Realized Gains (Losses) on Cash and Stock
Distributions (12.5) 7.4 (2.1) 2.5 (6.2) 1.0 6.2 3.7
Change in Unrealized Gains on Investments
Held in Partnerships 9.5 (35.7) (17.7) (3.3) 31.0 7.4 .7 (1.9)
--------- --------- --------- --------- --------- --------- --------- ---------
Equity in Partnership Earnings, before
income taxes (5.0) (29.9) (22.0) (2.3) 23.9 5.8 5.1 1.3
Applicable Income Taxes (Benefit) (1.8) (10.4) (7.7) (.8) 8.4 2.0 1.8 .5
--------- --------- --------- --------- --------- --------- --------- ---------
Segment Income (Loss) (3.2) (19.5) (14.3) (1.5) 15.5 3.8 3.3 .8
========= ========= ========= ========= ========= ========= ========= =========
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 13.0 7.5 10.2 11.5 11.6 9.9 6.0 3.5
Equity In Earnings of Partnerships (5.0) (29.9) (22.0) (2.3) 23.9 5.8 5.1 1.3
Distributions (9.4) (6.1) (19.4) (7.0) (3.0) (5.7) (12.4) (11.0)
Sale of Partnership Interests and Transfer
to Closed Block (52.2)
Realized Loss on Sale of Partnership
Interests and Transfer to Closed Block (5.0) (13.8) (.5)
--------- --------- --------- --------- --------- --------- --------- ---------
Change in Venture Capital Investments (1.4) (28.5) (31.2) (2.8) (33.5) 9.5 (1.3) (6.2)
Beginning Balance 291.7 290.3 261.8 230.6 227.8 194.3 203.8 202.5
--------- --------- --------- --------- --------- --------- --------- ---------
Ending Balance 290.3 261.8 230.6 227.8 194.3 203.8 202.5 196.3
========= ========= ========= ========= ========= ========= ========= =========
- ------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 43.6 29.4 20.3 25 23.5 36.6 37.3 36.8
Telecom 17.3 10.5 8.7 10.2 7.4 12.6 12.2 13.3
Biotech 15.7 9.7 10.4 11.1 9.8 14.9 15.8 16.3
Healthcare 8.4 6.8 8.9 9.2 6.7 8.0 7.8 8.2
-------------------------------
Consumer and Business Products and Services Included in Other 45.9 32.0 29.6 27.8 29.6
Financial Services 28.1 29.7 28.2 29.2 28.5
-------------------------------
Other 140.6 142.7 118.8 50.6 57.7 34.3 42.1 44.9
--------- --------- --------- --------- --------- --------- --------- ---------
Total Private Holdings 225.6 199.1 167.1 180.1 166.8 164.2 172.2 177.6
Public Holdings 39.1 29.9 21.5 23.0 11.4 15.6 18.1 11.3
Cash and Cash Equivalents 16.1 24.9 27.2 21.6 9.2 9.2 10.8 5.5
Other 9.5 7.9 14.8 3.1 6.9 14.8 1.4 1.9
--------- --------- --------- --------- --------- --------- --------- ---------
Total $ 290.3 $ 261.8 $ 230.6 $ 227.8 $ 194.3 $ 203.8 $ 202.5 $ 196.3
========= ========= ========= ========= ========= ========= ========= =========
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Fourth Quarter 2003 (unaudited)
($ in millions)
SEGMENT INCOME December 31,
--------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
Corporate Investment Income $ 4.3 $ 1.5 $ 7.2 $ 36.7 $ 13.1
Investment Income from
Collateralized Obligations 52.2 31.0 42.8
Interest Expense (39.6) (31.4) (27.3) (32.7) (34.0)
Interest Expense on Non-recourse
Collateralized Obligations (48.9) (30.5) (42.3)
Corporate Expenses (11.0) (10.4) (19.9) (53.5) (42.4)
International (1.4) 4.2 7.7 12.1 10.0
Other (3.4) (4.4) (2.9) (23.4) 3.5
---------- ---------- ---------- ---------- ----------
Segment Loss, before income taxes (47.8) (40.0) (34.7) (60.8) (49.8)
Applicable Income Tax Benefit (18.8) (29.8) (20.9) (37.2) (27.1)
---------- ---------- ---------- ---------- ----------
Segment Loss $ (29.0) $ (10.2) $ (13.8) $ (23.6) $ (22.7)
========== ========== ========== ========== ==========
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Fourth Quarter 2003 (unaudited)
($ in millions)
SEGMENT INCOME 2002 2003
------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
Corporate Investment Income (Loss) $ 2.6 $ 1.1 $ (.3) $ (1.9) $ .5 $ .9 $ 1.5 $ 1.4
Investment Income from
Collateralized Obligations 8.9 8.6 7.0 6.5 14.1 13.5 12.7 11.9
Interest Expense (7.7) (7.7) (7.7) (8.3) (9.8) (9.9) (9.8) (10.1)
Interest Expense on Non-recourse
Collateralized Obligations (8.8) (8.5) (6.9) (6.3) (13.3) (12.6) (11.9) (11.1)
Corporate Expenses (4.3) (2.5) (1.3) (2.3) .1 (3.0) (4.8) (3.3)
International 3.8 2.1 .5 (2.2) (1.3) 1.0 (1.1)
Other (.2) (1.5) (1.4) (1.3) (1.7) (1.4) .8 (1.1)
--------- --------- --------- --------- --------- --------- --------- ---------
Segment Income, before income taxes (5.7) (8.4) (10.1) (15.8) (11.4) (12.5) (10.5) (13.4)
Applicable Income Tax Benefit (4.1) (7.0) (6.4) (12.2) (2.8) (4.6) (6.7) (4.7)
--------- --------- --------- --------- --------- --------- --------- ---------
Segment Loss $ (1.6) $ (1.4) $ (3.7) $ (3.6) $ (8.6) $ (7.9) $ (3.8) $ (8.7)
========= ========= ========= ========= ========= ========= ========= =========
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
Fourth Quarter 2003
($ in millions)
December 31,
-----------------------------------------------------------------------------
2003 2002 2001 2000 1999
------------- ------------- ------------- ------------- -------------
REVENUES
Premiums $ 1,042.2 $ 1,082.0 $ 1,112.7 $ 1,147.4 $ 1,175.7
Insurance and Investment Product Fees 565.3 560.5 543.2 624.5 569.1
Net Investment Income 1,107.4 947.7 892.8 1,141.0 961.3
Net Realized Investment Gains (Losses) (100.5) (133.9) (84.9) 89.2 75.8
------------- ------------- ------------- ------------- -------------
Total Revenues 2,614.4 2,456.3 2,463.8 3,002.1 2,781.9
------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 1,454.0 1,436.1 1,406.7 1,409.8 1,373.1
Policyholder Dividends 418.8 401.8 400.1 378.0 360.5
Policy Acquisition Cost Amortization 94.1 59.2 133.0 356.0 147.9
Intangible Asset Impairments 66.3
Intangible Asset Amortization 33.2 32.5 49.4 36.9 40.1
Interest Expense on Indebtedness 39.6 31.4 27.3 32.7 34.0
Interest Expense on Non-recourse Collateralized
Obligations 48.9 30.5 42.3
Demutualization Expenses 25.9 21.8
Other Operating Expenses 536.0 583.0 624.4 594.4 546.4
------------- ------------- ------------- ------------- -------------
Total Expenses 2,624.6 2,640.8 2,709.1 2,829.6 2,502.0
------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest (10.2) (184.5) (245.3) 172.5 279.9
Applicable Income Taxes (Benefit) (18.5) (56.2) (105.2) 62.4 103.6
------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations before
Minority Interest 8.3 (128.3) (140.1) 110.1 176.3
Minority Interest in Net Income of Subsidiaries (12.4) (12.4) (7.2) (14.1) (10.1)
------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations (4.1) (140.7) (147.3) 96.0 166.2
Discontinued Operations
Income (Loss) from Discontinued Operations (2.1) (1.3) (2.5) 8.2 32.0
Loss on Disposal (20.9) (109.0)
------------- ------------- ------------- ------------- -------------
Income (Loss) Before Cumulative Effect of
Accounting Changes (6.2) (142.0) (149.8) 83.3 89.2
Cumulative Effect of Accounting Changes:
Goodwill and Other Intangible Assets (130.3)
Venture Capital Partnerships (48.8)
Securitized Financial Instruments (20.5)
Derivative Financial Instruments 3.9
------------- ------------- ------------- ------------- -------------
Net Income (Loss) $ (6.2) $ (272.3) $ (215.2) $ 83.3 $ 89.2
============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with the current presentation.
26
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
Fourth Quarter 2003 (unaudited)
($ in millions)
2002 2003
------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
REVENUES
Premiums $ 257.4 $ 259.4 $ 297.1 $ 268.1 $ 246.1 $ 248.5 $ 286.9 $ 260.7
Insurance and Investment Product Fees 139.7 145.4 138.8 136.6 132.5 133.1 143.0 157.0
Net Investment Income 240.4 224.5 236.1 246.7 290.9 277.7 267.2 271.3
Net Realized Investment Losses (37.9) (32.5) (10.5) (53.0) (14.1) (104.7) (3.4) 21.7
-------- -------- -------- -------- -------- -------- -------- --------
Total Revenues 599.6 596.8 661.5 598.4 655.4 554.6 693.7 710.7
-------- -------- -------- -------- -------- -------- -------- --------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 333.9 338.9 397.9 365.4 350.8 348.4 389.0 365.8
Policyholder Dividends 74.2 107.5 112.7 107.4 116.5 94.2 99.5 108.6
Policy Acquisition Cost Amortization (10.9) 11.4 41.1 17.6 28.0 25.9 22.7 17.5
Intangible Asset Impairments 66.3
Intangible Asset Amortization 8.1 7.8 8.9 7.7 8.4 8.2 8.3 8.3
Interest Expense on Indebtedness 7.7 7.7 7.7 8.3 9.8 9.9 9.8 10.1
Interest Expense on Non-recourse
Collateralized Obligations 8.8 8.5 6.9 6.3 13.3 12.6 11.9 11.1
Other Operating Expenses 136.2 179.0 135.4 132.4 126.5 136.5 130.2 142.8
-------- -------- -------- -------- -------- -------- -------- --------
Total Expenses 558.0 660.8 776.9 645.1 653.3 635.7 671.4 664.2
-------- -------- -------- -------- -------- -------- -------- --------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest 41.6 (64.0) (115.4) (46.7) 2.1 (81.1) 22.3 46.5
Applicable Income Taxes (Benefit) 12.5 (26.5) (25.8) (16.3) (2.4) (34.2) 5.8 12.3
-------- -------- -------- -------- -------- -------- -------- --------
Income (Loss) from Continuing Operations
before Minority Interest 29.1 (37.5) (89.6) (30.4) 4.5 (46.9) 16.5 34.2
Minority Interest in Net Income
of Subsidiaries (2.8) (3.3) (3.1) (3.2) (2.8) (2.3) (2.9) (4.4)
-------- -------- -------- -------- -------- -------- -------- --------
Income (Loss) from Continuing Operations 26.3 (40.8) (92.7) (33.6) 1.7 (49.2) 13.6 29.8
Discontinued Operations
Loss from Discontinued Operations (.3) (.3) (.3) (.3) (.4) (.4) (.4) (.9)
-------- -------- -------- -------- -------- -------- -------- --------
Income (Loss) Before Cumulative Effect
of Accounting Changes 26.0 (41.1) (93.0) (33.9) 1.3 (49.6) 13.2 28.9
Cumulative Effect of Accounting Changes:
Consolidation of Variable Interest
Entities
Goodwill and Other Intangible
Assets (130.3)
-------- -------- -------- -------- -------- -------- -------- --------
Net Income (Loss) $(104.3) $ (41.1) $ (93.0) $ (33.9) $ 1.3 $ (49.6) $ 13.2 $ 28.9
======== ======== ======== ======== ======== ======== ======== ========
(1) Certain reclassifications have been made to prior periods to conform with the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING FOURTH QUARTER 2003 INCOME STATEMENT
Fourth Quarter 2003 (unaudited)
($ in millions)
Exclusions from
Year-to-date December 31, 2003 Operating Segments Other Segments Segment Income
--------------------- ----------------------- -------------------------
Corporate Realized
Life & Asset Venture & Investment
Consolidated Annuity Management Capital Other Losses Other
------------ ----------- ----------- ----------- ----------- ----------- -----------
REVENUES
Premiums $ 1,042.2 $ 1,042.2
Insurance and Investment Product Fees 565.3 333.0 $ 242.8 $ 14.5 $ (25.0)
Net Investment Income 1,107.4 993.2 1.2 $ 36.2 65.9 10.9
Net Realized Investment Losses (100.5) $ (100.2) (.3)
------------ ----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 2,614.4 2,368.4 244.0 36.2 80.4 (100.2) (14.4)
------------ ----------- ----------- ----------- ----------- ----------- -----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 1,454.0 1,445.2 8.8
Policyholder Dividends 418.8 424.7 (5.9)
Policy Acquisition Cost Amortization 94.1 98.2 (4.1)
Intangible Asset Amortization 33.2 33.2
Intangible Asset Impairments
Interest Expense on Indebtedness 39.6 39.6
Interest Expense on Non-recourse
Collateralized Obligations 48.9 48.9
Demutualization Expenses
Other Operating Expenses 536.0 300.5 207.5 30.9 (2.9)
------------ ----------- ----------- ----------- ----------- ----------- -----------
Total Expenses 2,624.6 2,268.6 240.7 128.2 (10.0) (2.9)
------------ ----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest (10.2) 99.8 3.3 36.2 (47.8) (90.2) (11.5)
Applicable Income Taxes (Benefit) (18.5) 31.1 (3.3) 12.7 (18.8) (36.0) (4.2)
------------ ----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations
before Minority Interest 8.3 68.7 6.6 23.5 (29.0) (54.2) (7.3)
Minority Interest in Net Income
of Subsidiaries (12.4) (.4) (12.0)
------------ ----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations $ (4.1) $ 68.3 $ (5.4) $ 23.5 $ (29.0) $ (54.2) $ (7.3)
============ =========== =========== =========== =========== =========== ===========
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Fourth Quarter 2003 (unaudited)
($ in millions, except par value)
December 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999
------------- -------------- -------------- -------------- --------------
ASSETS:
Available-for-Sale Debt Securities, at fair value $ 13,273.0 $ 11,889.5 $ 9,774.1 $ 6,022.3 $ 5,580.6
Held-to-Maturity Debt Securities 2,109.6 1,958.2
Equity Securities, at fair value 312.0 385.9 287.7 335.5 437.2
Mortgage Loans, at unpaid principal balances 284.1 468.8 535.8 593.4 716.8
Policy Loans, at unpaid principal balances 2,227.8 2,195.9 2,172.2 2,105.2 2,042.6
Venture Capital Partnerships, at equity in net assets 234.9 228.6 291.7 467.3 338.1
Affiliate Equity and Debt Securities, at cost plus
equity in undistributed earnings 47.5 134.7 150.6 103.0 106.6
Other Investments 402.0 398.9 376.0 313.6 280.0
------------- -------------- -------------- -------------- --------------
16,781.3 15,702.3 13,588.1 12,049.9 11,460.1
Available-for-Sale Investments Pledged as Collateral,
at fair value 1,350.0 1,358.7 550.6
------------- -------------- -------------- -------------- --------------
Total Investments 18,131.3 17,061.0 14,138.7 12,049.9 11,460.1
Cash and Cash Equivalents 447.9 1,110.5 823.3 717.6 308.7
Deferred Policy Acquisition Costs 1,367.7 1,234.1 1,123.7 1,019.0 1,318.8
Goodwill and other intangible assets 755.0 747.7 858.6 582.6 574.0
Other General Account Assets 774.1 711.4 566.1 567.8 698.4
Separate Account Assets 6,083.2 4,371.2 5,025.2 5,376.6 5,923.9
------------- -------------- -------------- -------------- --------------
Total Assets 27,559.2 25,235.9 22,535.6 20,313.5 20,283.9
============= ============== ============== ============== ==============
LIABILITIES:
Policy Liabilities and Accruals 13,088.6 12,680.0 11,846.4 11,372.6 10,899.8
Policyholder Deposit Funds 3,642.7 3,395.7 1,515.2 678.4 538.2
Indebtedness 639.0 644.3 599.3 425.1 499.4
Stock Purchase Contracts 128.8 137.6
Other General Account Liabilities 557.1 570.8 614.1 619.9 666.6
Non-recourse Collateralized Debt Obligation
Liabilities 1,472.0 1,609.5 632.7
Separate Account Liabilities 6,083.2 4,371.2 5,020.1 5,376.6 5,923.9
------------- -------------- -------------- -------------- --------------
Total Liabilities and minority interest 25,611.4 23,409.1 20,227.8 18,472.6 18,527.9
------------- -------------- -------------- -------------- --------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion shares
authorized; 94,445,716 shares outstanding
(December 31, 2003) 1.0 1.0 1.0
Additional paid in capital 2,428.8 2,424.4 2,413.3
Deferred Compensation on Restricted Stock Units (3.6)
Retained Earnings (352.7) (331.4) (43.3) 1,820.7 1,731.5
Treasury stock, at cost: 11,930,647 shares
(December 31, 2003) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income 63.7 (71.5) 2.8 20.2 24.5
------------- -------------- -------------- -------------- --------------
Total Stockholders' Equity 1,947.8 1,826.8 2,307.8 1,840.9 1,756.0
------------- -------------- -------------- -------------- --------------
Total Liabilities, Minority Interest and
Stockholders' Equity $ 27,559.2 $ 25,235.9 $ 22,535.6 $ 20,313.5 $ 20,283.9
============= ============== ============== ============== ==============
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
Fourth Quarter 2003
($ in millions, except par value)
Total Debt Securities Public Debt Securities Private Debt Securities
------------------------- ------------------------- -----------------------
12/31/2003 12/31/2002 12/31/2003 12/31/2002 12/31/2003 12/31/2002
------------ ------------ ------------ ------------ ------------ -----------
DEBT SECURITIES BY CREDIT QUALITY (CARRYING VALUE)
AAA/AA/A $ 8,821.2 $ 7,971.5 $ 7,442.1 $ 6,560.4 $ 1,379.1 $ 1,411.1
BBB 3,350.8 2,849.0 2,160.6 1,767.1 1,190.1 1,081.9
------------ ------------ ------------ ------------ ------------ -----------
Total Investment Grade 12,172.0 10,820.5 9,602.7 8,327.5 2,569.2 2,493.0
BB 764.9 785.7 635.5 577.4 129.5 208.3
B 218.9 105.4 157.8 82.2 61.1 23.2
CCC and Lower 94.6 118.5 53.7 53.3 40.9 65.2
In or Near Default 22.6 59.4 19.0 25.4 3.6 34.0
------------ ------------ ------------ ------------ ------------ -----------
Total Debt Securities $ 13,273.0 $ 11,889.5 $ 10,468.7 $ 9,065.8 $ 2,804.3 $ 2,823.7
============ ============ ============ ============ ============ ===========
% Below Investment Grade 8.3% 9.0% 8.3% 8.1% 8.4% 11.7%
- ------------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT AND
EQUITY SECURITIES
As of December 31, 2003 Total Outside Closed Block Closed Block
------------------------- ------------------------- -----------------------
Gains Losses Gains Losses Gains Losses
------------ ------------ ------------ ------------ ------------ -----------
Total Debt Securities $ 710.1 $ (98.4) $ 222.3 $ (49.9) $ 487.8 $ (48.5)
Equity Securities 91.4 (1.8) 83.3 (1.4) 8.1 (0.4)
------------ ------------ ------------ ------------ ------------ -----------
Total Unrealized Gains (Losses) 801.5 (100.2) 305.6 (51.3) 495.9 (48.9)
------------ ------------ ------------ ------------ ------------ -----------
Applicable Policyholder Dividend Obligation 495.9 (48.9) 495.9 (48.9)
Applicable Deferred Acquisition Cost (Credit) 120.4 (22.8) 120.4 (22.8)
Applicable Deferred Income Tax 64.9 (11.3) 64.9 (11.3)
------------ ------------ ------------ ------------ ------------ -----------
Total Offsets to Net Unrealized Gains 681.2 (83.0) 185.3 (34.1) 495.9 (48.9)
------------ ------------ ------------ ------------ ------------ -----------
Net Unrealized Gains $ 120.3 $ (17.2) $ 120.3 $ (17.2) $ - $ -
============ ============ ============ ============ ============ ===========
$ 103.1 $ 102.9 $ -
============ ============ ============
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
Fourth Quarter 2003 (Quarters unaudited)
($ in millions)
Quarters ended 2002 2003
------------------------------------------ ------------------------------------------
March June September December March June September December
--------- --------- --------- --------- --------- --------- --------- ---------
GAAP NET INVESTMENT INCOME
Debt Securities $ 174.5 $ 185.5 $ 192.7 $ 180.8 $ 187.1 $ 199.1 $ 184.0 $ 195.3
Equity Securities 1.1 1.1 .9 1.1 1.3 .9 .9 1.5
Mortgages 10.7 10.6 9.8 9.3 12.1 7.3 7.0 6.2
Policy Loans 42.5 42.3 42.7 44.3 42.6 42.6 42.2 44.3
Venture Capital (5.0) (29.9) (22.1) (2.3) 28.9 6.5 10.2 3.5
Cash & Cash Equivalents 1.9 2.9 3.0 4.1 3.1 1.4 1.4 1.1
Other * 7.9 6.4 4.6 3.0 4.5 8.6 11.0 8.1
--------- --------- --------- --------- --------- --------- --------- ---------
Total Cash and Invested Assets 233.6 218.9 231.6 240.3 279.6 266.4 256.7 260.0
--------- --------- --------- --------- --------- --------- --------- ---------
Investment Expenses 2.4 3.3 2.9 .9 3.0 2.7 2.6 2.0
--------- --------- --------- --------- --------- --------- --------- ---------
Total Net Investment Income $ 231.2 $ 215.6 $ 228.7 $ 239.4 $ 276.6 $ 263.7 $ 254.1 $ 258.0
========= ========= ========= ========= ========= ========= ========= =========
ANNUALIZED YIELDS
Debt Securities 7.2% 7.3% 7.0% 6.2% 6.2% 6.1% 5.8% 6.1%
Equity Securities 1.5% 1.4% 1.2% 1.3% 1.4% 1.0% 1.0% 1.8%
Mortgages 8.4% 8.7% 8.3% 8.1% 9.1% 8.0% 8.6% 8.4%
Policy Loans 8.2% 8.1% 8.1% 8.4% 8.1% 8.0% 7.9% 8.3%
Venture Capital -6.6% -35.6% -30.4% -3.9% 67.9% 11.9% 18.7% 6.1%
Cash & Cash Equivalents 1.1% 1.9% 1.8% 1.9% 1.5% 0.9% 0.9% 0.9%
Other * 6.4% 5.2% 3.5% 2.3% 3.4% 7.0% 10.3% 6.1%
--------- --------- --------- --------- --------- --------- --------- ---------
Total Cash and Invested Assets 6.6% 6.1% 6.1% 6.0% 6.7% 6.2% 6.1% 6.2%
--------- --------- --------- --------- --------- --------- --------- ---------
Investment Expenses 0.1% 0.1% 0.1% 0.0% 0.1% 0.1% 0.1% 0.0%
--------- --------- --------- --------- --------- --------- --------- ---------
Total Net Investment Income 6.6% 6.0% 6.0% 5.9% 6.7% 6.1% 6.0% 6.2%
========= ========= ========= ========= ========= ========= ========= =========
* Includes real estate, affiliates, and other invested assets.
(1) Excludes investment income on debt and equity securities pledged as collateral.
31
THE PHOENIX COMPANIES, INC.
REALIZED INVESTMENT GAINS AND LOSSES
Fourth Quarter 2003 (unaudited)
($ in millions, except par value)
2003 Quarter Ended December 31,
--------------------------------------- ---------------------------------------
December September June March 2003 2002 2001 2000
--------- --------- --------- --------- --------- --------- --------- ---------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (18.5) $ (15.0) $ (18.3) $ (24.3) $ (76.1) $ (114.3) $ (46.1) $ (7.5)
Equity Security Impairments (3.2) (1.1) (4.3) (9.8)
Affiliated Equity Securities (96.9) (96.9)
Venture Capital Partnerships Impairments (.3) (4.3) (4.6) (5.1)
Mortgage Loan Impairments (.9) (2.8) (.4) (4.1) (.6) (6.1) (1.8)
Real Estate Impairments (6.2) (.4) (6.6) (6.1)
Debt and Equity Securities Pledged as
Collateral Impairments (1.0) (2.3) (.1) (4.9) (8.3) (34.9) (39.0)
Other Invested Asset Impairments (1.0) (8.9) (9.9) (22.0) (3.7)
--------- --------- --------- --------- --------- ---------- --------- --------
Total Impairment Losses (25.7) (21.8) (120.5) (42.8) (210.8) (186.7) (94.9) (15.4)
--------- --------- --------- --------- --------- ---------- --------- --------
Debt Security Net Transaction
Gains (Losses) 7.1 11.1 5.2 41.3 64.7 48.4 21.7 (46.9)
Equity Security Net Transaction
Gains (Losses) 37.1 4.9 7.4 (2.2) 47.2 2.1 (8.8) 146.8
Venture Capital Net Investment
Gains (Losses) (.2) (9.5) (9.7)
Mortgage Loan Net Transaction Gains
(Losses) .1 (.6) (.4) (.4) (1.3) .2 7.1 4.8
Real Estate Net Transaction Gains
(Losses) (.3) (.4) .5 (.2) 4.0 (2.5) 1.8
Other Invested Asset Net Transactions
Gains (Losses) 5.2 1.7 5.6 (2.9) 9.6 (1.9) (7.5) (1.9)
--------- --------- --------- --------- --------- ---------- --------- --------
Total Net Transactions Gains 49.2 17.1 17.2 26.8 110.3 52.8 10.0 104.6
--------- --------- --------- --------- --------- ---------- --------- --------
Net Realized Investment Gains (Losses) 23.5 (4.7) (103.3) (16.0) (100.5) (133.9) (84.9) 89.2
========= ========= ========= ========= ========= ========== ========= ========
Closed Block Applicable PDO (Reduction) (1.4) (3.5) (9.5) 8.5 (5.9) (40.3) (15.4)
Applicable Deferred Acquisition Costs
(Credit) (3.0) (2.8) 1.3 .4 (4.1) (7.2) 10.5 (10.7)
Applicable Deferred Income Tax (Credit) 8.4 1.3 (37.2) (8.8) (36.3) (20.8) (24.5) 32.9
--------- --------- --------- --------- --------- ---------- --------- --------
Net Realized Investment Gains (Losses)
Included in Net Income $ 19.5 $ 0.3 $ (57.9) $ (16.1) $ (54.2) $ (65.6) $ (55.5) $ 67.0
========= ========= ========= ========= ========= ========== ========= ========
32