Exhibit 99.1
FINANCIAL SUPPLEMENT
THE PHOENIX COMPANIES, INC.
March 31, 2004
add value to wealth.(SM) [logo]PHOENIX
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
WALL STREET COVERAGE TRANSFER AGENT AND REGISTRAR
FIRM ANALYST For information or assistance regarding your account, please
A.G. Edwards & Sons, Inc. J. Jeffrey Hopson contact our transfer agent and registrar:
Credit Suisse First Boston (CSFB) Tom Gallagher EquiServe Trust Company, N.A. at: Phoenix Shareholder Services
Deutsche Bank North America Vanessa Wilson c/o EquiServe Trust Company, P.O. Box 43076,
Dowling & Partners Securities, LLC Len Savage Providence, RI 02940-3076
Fox-Pitt, Kelton, Inc. Jonathan Joseph
Friedman, Billings, Ramsey & Co. Stewart Johnson
JP Morgan Jimmy Bhullar Toll-free: 1-800-490-4258 TTY 1-800-336-9449
Keefe Bruyette & Woods, Inc. Jukka Lipponen Fax: 1-781-575-3583, e-mail: phoenix@equiserve.com
Langen McAlenney Robert Glasspiegel Web: phoenix.equiserve.com
Lehman Brothers Eric Berg
Merrill Lynch Edward A. Spehar FOR MORE INFORMATION
Morgan Stanley Nigel Dally To receive additional information, including financial
UBS Andrew Kligerman 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
SHAREHOLDER INFORMATION or contact our Investor Relations Department at:
SECURITY LISTINGS
The common stock of The Phoenix Companies, Inc. is traded on the The Phoenix Companies, Inc.
New York Stock Exchange (NYSE) under the symbol "PNX." Our 7.25 Investor Relations
percent equity units are traded on the NYSE under the symbol One American Row
"PNX PrA." Our 7.45 percent bond is traded on the NYSE under the P.O. Box 5056, Hartford, CT 06102-5056
symbol "PFX." 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
MARCH 2004 (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 FIRST QUARTER 2004 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
First Quarter 2004 (unaudited)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
YTD March --------------------------------------------------------------
2004 2003 2002 2001 2000
-------------- -------------- -------------- -------------- --------------
General Account Invested Assets $ 17,515.6 $ 17,229.2 $ 16,812.8 $ 14,411.4 $ 12,594.3
Separate Account Assets 6,461.6 6,083.2 4,371.2 5,025.2 5,376.6
Total Assets 28,156.8 27,559.2 25,235.9 22,535.6 20,313.5
Indebtedness 666.8 639.0 644.3 599.3 425.1
Total Stockholders' Equity 1,997.2 1,947.8 1,826.8 2,307.8 1,840.9
Total Stockholders' Equity excluding SFAS 115 and
FIN 46-R adjustments 1,945.6 1,925.3 1,937.1 2,317.5 1,820.7
Debt to Total Capitalization 25.0% 24.7% 24.1% 20.0% 18.8%
Debt (Excluding Equity Units) to Total
Capitalization 19.3% 18.8% 18.3%
Book Value Per Share (1) $ 21.12 $ 20.62 $ 19.43 $ 22.64 $ 24.75
Book Value Per Share, excluding SFAS 115 adjustment $ 20.13 $ 19.96 $ 20.19 $ 22.62 $ 24.51
Book Value Per Share, excluding SFAS 115 and
FIN 46-R adjustments $ 20.57 $ 20.39 $ 20.60 $ 22.74
Period-end Common Shares Outstanding (2) 94.6 94.4 94.0 101.9 105.0
============== ============== ============== ============== ==============
- -----------------------------------------------------------------------------------------------------------------------------------
Indebtedness:
Surplus Notes $ 175.0 $ 175.0 $ 175.0 $ 175.0 $ 175.0
Equity Units 153.7 153.7 153.7
Senior Unsecured Bonds 300.0 300.0 300.0 300.0
Interest Rate Swap 13.1 10.3 15.6 (.8)
Bank Credit Facility 25.0 125.1 230.0
Other 20.1
-------------- -------------- -------------- -------------- --------------
Total Indebtedness $ 666.8 $ 639.0 $ 644.3 $ 599.3 $ 425.1
============== ============== ============== ============== ==============
- -----------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE
INSURANCE COMPANY (3)
Capital, Surplus and Surplus Notes $ 815.7 $ 762.9 $ 861.0 $ 1,149.8 $ 1,322.8
Asset Valuation Reserve (AVR) $ 188.7 $ 198.5 $ 147.0 $ 221.5 $ 559.7
-------------- -------------- -------------- -------------- --------------
Capital, Surplus, Surplus Notes and AVR $ 1,004.4 $ 961.4 $ 1,008.0 $ 1,371.3 $ 1,882.5
============== ============== ============== ============== ==============
Policyholder Dividend Liability $ 418.3 $ 408.5 $ 403.0 $ 395.8 $ 383.2
Interest Maintenance Reserve $ (26.6) $ (30.2) $ (2.0) $ 11.6 $ (1.4)
Statutory Gain (Loss) From Operations $ (14.0) $ 69.7 $ 44.5 $ 119.9 $ 266.4
Statutory Net Income (Loss) $ (7.9) $ 21.5 $ 7.5 $ (13.9) $ 266.1
--------------
(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. March 2004 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD March December 31,
------------------------- ----------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ----------- ----------- ----------- ---------- -----------
SEGMENT INCOME
Life Insurance $ 23.0 $ 23.3 $ 103.5 $ 101.0 $ 72.0 $ 19.6
Annuities 2.8 (5.3) (4.1) (20.7) 10.9 4.2
----------- ----------- ----------- ----------- ---------- -----------
Life and Annuity Segment 25.8 18.0 99.4 80.3 82.9 23.8
Asset Management Segment .1 (5.8) (8.7) (69.9) (8.7) 61.4
Venture Capital Segment 11.6 23.9 36.2 (59.3) (159.6) 277.3
Corporate and Other Segment (12.7) (11.4) (47.8) (40.0) (34.7) (60.8)
----------- ----------- ----------- ----------- ---------- -----------
Total Segment Income (Loss),
before income taxes 24.8 24.7 79.1 (88.9) (120.1) 301.7
Applicable Income Taxes (Benefit) 7.3 7.5 21.8 (28.5) (45.4) 101.3
----------- ----------- ----------- ----------- ---------- -----------
TOTAL SEGMENT INCOME (LOSS) 17.5 17.2 57.3 (60.4) (74.7) 200.4
Net Realized Investment Gains (Losses),
after income taxes 1.8 (12.4) (51.8) (39.3) (43.0) 62.0
Realized losses - investments pledged as
collateral consolidated under FIN 46-R (1.0) (1.9) (2.4) (26.3) (12.5)
Management Restructuring and Early Retirement Costs (2.0) (2.5) (8.5) (28.5) (15.5)
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)
Other income 1.3 1.3 5.3 (.1)
----------- ----------- ----------- ----------- ---------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 16.3 1.7 (4.1) (140.7) (196.1) 96.0
Income (Loss) from Discontinued Operations .3 (.4) (2.1) (1.3) (2.5) (12.7)
----------- ----------- ----------- ----------- ---------- -----------
Income (Loss) before Cumulative Effect of
Accounting changes 16.6 1.3 (6.2) (142.0) (198.6) 83.3
Cumulative Effect of Accounting changes (130.3) (16.6)
----------- ----------- ----------- ----------- ---------- -----------
NET INCOME (LOSS) $ 16.6 $ 1.3 $ (6.2) $ (272.3) $ (215.2) $ 83.3
=========== =========== =========== =========== ========== ===========
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.5 94.0 94.2 97.9 104.6 104.6
----------- ----------- ----------- ----------- ---------- -----------
Total Segment Income (Loss) Per Share $ 0.19 $ 0.18 $ 0.61 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.18 $ 0.01 $ (0.07) $ (2.78) $ (2.06) $ 0.80
Diluted
Weighted-Average Shares Outstanding (1) (2) 102.0 95.0 96.6 97.9 104.6 104.6
----------- ----------- ----------- ----------- ---------- -----------
Total Segment Income (Loss) Per Share $ 0.17 $ 0.18 $ 0.59 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.16 $ 0.01 $ (0.07) $ (2.78) $ (2.06) $ 0.80
===========
(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
shares outstanding and dilutive potential common shares were 96.6 million.
For the calculation of net loss per share, dilutive potential common shares
were not included because their effect would have been anti-dilutive.
2
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2003
-------------------------------------------------------------- 2004
Quarters ended March June September December March
-------------- -------------- -------------- -------------- --------------
SEGMENT INCOME
Life Insurance $ 23.3 $ 29.2 $ 24.7 $ 26.4 $ 23.0
Annuities (5.3) (1.4) .3 2.2 2.8
-------------- -------------- -------------- -------------- --------------
Life and Annuity Segment 18.0 27.8 25.0 28.6 25.8
Asset Management Segment (5.8) (5.7) (3.1) 5.9 .1
Venture Capital Segment 23.9 5.8 5.1 1.3 11.6
Corporate and Other Segment (11.4) (12.5) (10.5) (13.4) (12.7)
-------------- -------------- -------------- -------------- --------------
Total Segment Income (Loss), before income taxes 24.7 15.4 16.5 22.4 24.8
Applicable Income Taxes (Benefit) 7.5 3.5 4.6 6.1 7.3
-------------- -------------- -------------- -------------- --------------
TOTAL SEGMENT INCOME (LOSS) 17.2 11.9 11.9 16.3 17.5
Net Realized Investment Gains (Losses), after
income taxes (12.4) (59.2) 2.5 17.3 1.8
Realized gains (losses) - investments pledged as
collateral consolidated under FIN 46-R (1.9) (.1) (.8) .4 (1.0)
Management Restructuring and Early Retirement Costs (2.5) (1.8) (4.2) (2.0)
Other income 1.3
-------------- -------------- -------------- -------------- --------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1.7 (49.2) 13.6 29.8 16.3
Income (Loss) from Discontinued Operations (.4) (.4) (.4) (.9) .3
-------------- -------------- -------------- -------------- --------------
NET INCOME (LOSS) $ 1.3 $ (49.6) $ 13.2 $ 28.9 $ 16.6
============== ============== ============== ============== ==============
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.0 94.2 94.3 94.4 94.5
-------------- -------------- -------------- -------------- --------------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.13 $ 0.13 $ 0.17 $ 0.19
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.14 $ 0.31 $ 0.18
Diluted
Weighted-Average Shares Outstanding (1) 95.0 94.2 98.3 99.8 102.0
-------------- -------------- -------------- -------------- --------------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.13 $ 0.12 $ 0.16 $ 0.17
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.13 $ 0.29 $ 0.16
==============
(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
First Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD March December 31,
------------------------- ----------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ----------- ----------- ----------- ---------- -----------
Variable Universal Life $ 8.2 $ 6.3 $ 35.0 $ 35.9 $ 30.2 $ 20.1
Universal Life (1) 1.9 4.7 21.7 26.3 17.4 18.2
Term Life .3 .4 3.8 4.7 1.3 (1.0)
Other Life and Annuity (2) 3.7 3.1 6.9 .8 1.7 4.6
----------- ----------- ----------- ----------- ---------- -----------
Total, Non-participating Life 14.1 14.5 67.4 67.7 50.6 41.9
Participating Life 8.9 8.8 36.1 33.3 21.4 (22.3)
----------- ----------- ----------- ----------- ---------- -----------
Total, Life Insurance 23.0 23.3 103.5 101.0 72.0 19.6
Annuities 2.8 (5.3) (4.1) (20.7) 10.9 4.2
----------- ----------- ----------- ----------- ---------- -----------
Segment Income, before income taxes 25.8 18.0 99.4 80.3 82.9 23.8
Allocated Income Taxes (3) 7.2 4.0 31.1 28.0 28.8 9.4
----------- ----------- ----------- ----------- ---------- -----------
Segment Income $ 18.6 $ 14.0 $ 68.3 $ 52.3 $ 54.1 $ 14.4
=========== =========== =========== =========== ========== ===========
(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
First Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003
------------------------------------------------------------- 2004
Quarters ended March June September December March
-------------- -------------- -------------- -------------- --------------
Variable Universal Life $ 6.3 $ 9.3 $ 10.5 $ 9.0 $ 8.2
Universal Life (1) 4.7 5.6 5.5 5.9 1.9
Term Life .4 (.8) .9 3.3 .3
Other Life and Annuity (2) 3.1 1.2 .8 1.8 3.7
-------------- -------------- -------------- -------------- --------------
Total, Non-participating Life 14.5 15.3 17.7 20.0 14.1
Participating Life 8.8 13.9 7.0 6.4 8.9
-------------- -------------- -------------- -------------- --------------
Total, Life Insurance 23.3 29.2 24.7 26.4 23.0
Annuities (5.3) (1.4) .3 2.2 2.8
-------------- -------------- -------------- -------------- --------------
Segment Income (Loss), before income taxes 18.0 27.8 25.0 28.6 25.8
Applicable Income Taxes (3) 4.0 8.4 10.7 8.0 7.2
-------------- -------------- -------------- -------------- --------------
Segment Income (Loss) $ 14.0 $ 19.4 $ 14.3 $ 20.6 $ 18.6
============== ============== ============== ============== ==============
(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
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
-------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ----------- -------------
PRE-TAX INCOME
Fees $ 8.0 $ 7.6 $ 30.1 $ 31.4 $ 29.5 $ 24.9
Cost of Insurance (COI) 18.3 17.9 72.1 66.4 60.0 46.2
Interest Earned 1.2 1.6 5.6 7.0 4.5 5.7
Surrender Charges 1.7 1.2 6.9 4.4 3.3 3.5
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 29.2 28.3 114.7 109.2 97.3 80.3
------------ ------------ ------------ ------------ ------------ ------------
Net Death and Disability Benefits 8.3 5.0 23.3 22.9 15.3 15.5
Incurred Expenses 11.7 16.1 52.8 45.9 48.2 41.6
Interest Credited 1.0 .9 3.6 3.7 3.6 3.1
Minority Interest .8
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 21.0 22.0 79.7 73.3 67.1 60.2
------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 8.2 6.3 35.0 35.9 30.2 20.1
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 4.0 5.2 21.4 36.6 29.5 34.2
Controllable Expenses and Other 9.2 11.4 44.6 60.8 60.1 57.3
------------ ------------ ------------- ------------ ------------ ------------
Total Current Expenses 13.2 16.6 66.0 97.4 89.6 91.5
Acquisition Costs Deferred (6.6) (8.0) (33.9) (68.1) (65.4) (56.9)
Acquisition Costs Amortized 5.1 7.5 20.8 16.6 24.0 7.0
------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 11.7 16.1 52.8 45.9 48.2 41.6
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 67.0 71.8 353.4 465.7 336.1 258.1
Surrenders (15.6) (13.7) (69.4) (37.6) (31.2) (34.0)
Deaths (.4) (.2) (1.4) (1.8) (1.7) (1.4)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 51.0 57.9 282.6 426.3 303.2 222.7
Performance 56.3 (8.5) 252.1 (149.8) (194.0) (128.1)
Fees (8.4) (8.4) (36.4) (35.8) (34.5) (33.0)
Cost of Insurance (17.7) (17.9) (69.8) (66.4) (60.0) (46.2)
------------ ------------ ------------ ------------ ------------ ------------
Acquisitions
Change in Funds Under Management 81.2 23.1 428.5 174.3 14.7 15.4
Beginning Balance 1,699.1 1,270.3 1,270.3 1,096.0 1,081.3 1,065.9
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 1,780.3 1,293.4 1,698.8 1,270.3 1,096.0 1,081.3
============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 24,388.2 $ 23,744.4 $ 24,603.0 $ 23,788.2 $ 20,436.1 $ 17,743.3
============ ============ ============ ============ ============ ============
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
First Quarter 2004 (unaudited)
($ in millions)
Quarters ended 2003
-------------------------------------------------------------- 2004
March June September December March
-------------- -------------- -------------- -------------- -------------
PRE-TAX INCOME
Fees $ 7.6 $ 7.5 $ 8.1 $ 7.0 $ 8.0
Cost of Insurance (COI) 17.9 18.1 17.6 18.5 18.3
Interest Earned 1.6 1.5 1.3 1.2 1.2
Surrender Charges 1.2 1.6 1.8 2.3 1.7
-------------- -------------- -------------- -------------- -------------
Total Revenues 28.3 28.7 28.7 29.0 29.2
-------------- -------------- -------------- -------------- -------------
Net Death and Disability Benefits 5.0 6.0 5.0 7.3 8.3
Incurred Expenses 16.1 12.5 12.3 11.9 11.7
Interest Credited .9 1.0 1.0 .8 1.0
Total Expenses 22.0 19.5 18.3 20.0 21.0
-------------- -------------- -------------- -------------- -------------
Pre-tax Income 6.3 9.3 10.5 9.0 8.2
============== ============== ============== ============== =============
-----------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 5.2 4.6 4.9 6.7 4.0
Controllable Expenses and Other 11.4 12.3 9.1 11.8 9.2
-------------- -------------- -------------- -------------- -------------
Total Current Expenses 16.6 16.9 14.0 18.5 13.2
Acquisition Costs Deferred (8.0) (8.7) (7.0) (10.2) (6.6)
Acquisition Costs Amortized 7.5 4.3 5.3 3.7 5.1
-------------- -------------- -------------- -------------- -------------
Incurred Expenses 16.1 12.5 12.3 12.0 11.7
============== ============== ============== ============== =============
-----------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 71.8 62.0 137.4 82.2 67.0
Surrenders (13.7) (11.5) (25.4) (18.8) (15.6)
Deaths (.2) (.1) (.5) (.6) (.4)
-------------- -------------- -------------- -------------- -------------
Net Sales 57.9 50.4 111.5 62.8 51.0
Performance (8.5) 110.4 52.0 98.2 56.3
Fees (8.4) (7.9) (10.0) (10.1) (8.4)
Cost of Insurance (17.9) (16.8) (17.2) (17.9) (17.7)
-------------- -------------- -------------- -------------- -------------
Change in Funds Under Management 23.1 136.1 136.3 133.0 81.2
Beginning Balance 1,270.3 1,293.5 1,429.6 1,565.9 1,699.1
-------------- -------------- -------------- -------------- -------------
Ending Balance 1,293.4 1,429.6 1,565.9 1,698.9 1,780.3
============== ============== ============== ============== =============
LIFE INSURANCE IN FORCE $ 23,744.4 $ 24,096.1 $ 24,366.4 $ 24,603.0 $ 24,388.2
============== ============== ============== ============== =============
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
--------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------- ------------- ------------- ------------- ------------ -------------
PRE-TAX INCOME
Fees $ 4.5 $ 4.0 $ 17.3 $ 11.9 $ 8.6 $ 8.4
Cost of Insurance 21.6 18.8 78.9 71.6 66.2 64.8
Interest Earned 24.0 24.7 98.3 108.4 111.9 108.7
Surrender Charges .7 .7 2.5 3.9 4.0 5.5
------------- ------------- ------------- ------------- ------------ -------------
Total Revenues 50.8 48.2 196.9 195.8 190.7 187.4
------------- ------------- ------------- ------------- ------------ -------------
Net Death Benefits and Supplemental Benefits 19.3 12.3 51.2 39.5 48.3 45.4
Incurred Expenses 10.4 11.0 46.0 44.3 34.6 32.5
Interest Credited 19.2 20.2 78.0 85.7 90.4 91.3
------------- ------------- ------------- ------------- ------------ -------------
Total Expenses 48.9 43.5 175.2 169.5 173.3 169.2
------------- ------------- ------------- ------------- ------------ -------------
Pre-tax Income 1.9 4.7 21.7 26.3 17.4 18.2
============= ============= ============= ============= ============ =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 6.9 6.2 28.2 15.2 9.8 5.8
Controllable Expenses 17.1 16.0 75.0 52.6 32.1 23.7
------------- ------------- ------------- ------------- ------------ -------------
Total Current Expenses 24.0 22.2 103.2 67.8 41.9 29.5
Acquisition Cost Deferred (17.7) (15.3) (74.9) (40.2) (20.0) (8.7)
Acquisition Cost Amortized 4.1 4.1 17.7 16.7 12.7 11.7
------------- ------------- ------------- ------------- ------------ -------------
Incurred Expenses 10.4 11.0 46.0 44.3 34.6 32.5
============= ============= ============= ============= ============ =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 54.7 45.6 217.8 149.3 104.6 90.9
Surrenders (31.9) (30.9) (118.6) (107.4) (99.0) (108.2)
Deaths (3.3) (5.9) (19.4) (25.0) (18.5) (20.9)
------------- ------------- ------------- ------------- ------------ -------------
Net Sales 19.5 8.8 79.8 16.9 (12.9) (38.2)
Interest Credited 19.1 20.2 78.0 85.8 90.4 91.3
Fees (5.4) (5.5) (24.9) (16.7) (10.5) (6.2)
Cost of Insurance (21.6) (18.8) (78.9) (71.6) (66.2) (64.8)
------------- ------------- ------------- ------------- ------------ -------------
Change in Funds Under Management 11.6 4.7 54.0 14.4 .8 (17.9)
Beginning Balance 1,564.0 1,510.0 1,510.0 1,495.6 1,494.8 1,512.7
------------- ------------- ------------- ------------- ------------ -------------
Ending Fund Balance 1,575.6 1,514.7 1,564.0 1,510.0 1,495.6 1,494.8
============= ============= ============= ============= ============ =============
LIFE INSURANCE IN FORCE $ 13,195.6 $ 10,914.9 $ 12,830.3 $ 10,476.7 $ 9,465.6 $ 9,644.2
============= ============= ============= ============= ============ =============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
First Quarter 2004 (unaudited)
($ in millions)
PRE-TAX INCOME 2003
-------------------------------------------------------------- 2004
Quarter ended March June September December March
-------------- -------------- -------------- -------------- -------------
Fees $ 4.0 $ 2.9 $ 4.6 $ 5.8 $ 4.5
Cost of Insurance 18.8 19.3 19.7 21.0 21.6
Interest Earned 24.7 24.6 24.5 24.4 24.0
Surrender Charges .7 .6 .6 .6 .7
-------------- -------------- -------------- -------------- -------------
Total Revenues 48.2 47.4 49.4 51.8 50.8
-------------- -------------- -------------- -------------- -------------
Net Death Benefits and Supplemental Benefits 12.3 9.2 14.0 15.7 19.3
Incurred Expenses 11.0 12.3 11.6 11.1 10.4
Interest Credited 20.2 20.3 18.4 19.1 19.2
-------------- -------------- -------------- -------------- -------------
Total Expenses 43.5 41.8 43.9 45.9 48.9
-------------- -------------- -------------- -------------- -------------
Pre-tax Income 4.7 5.6 5.5 5.9 1.9
============== ============== ============== ============== =============
-----------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 6.2 4.3 6.9 10.8 6.9
Controllable Expenses 16.0 18.6 17.9 22.5 17.1
-------------- -------------- -------------- -------------- -------------
Total Current Expenses 22.2 22.8 24.8 33.4 24.0
Acquisition Cost Deferred (15.3) (15.0) (18.2) (26.4) (17.7)
Acquisition Cost Amortized 4.1 4.5 5.0 4.1 4.1
-------------- -------------- -------------- -------------- -------------
Incurred Expenses 11.0 12.3 11.6 11.1 10.4
============== ============== ============== ============== =============
-----------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 45.6 41.2 56.3 74.7 54.7
Surrenders (30.9) (27.3) (27.6) (32.8) (31.9)
Deaths (5.9) (3.1) (5.6) (4.8) (3.3)
-------------- -------------- -------------- -------------- -------------
Net Sales 8.8 10.8 23.1 37.1 19.5
Interest Credited 20.2 20.3 18.4 19.1 19.1
Fees (5.5) (4.2) (6.1) (9.1) (5.4)
Cost of Insurance (18.8) (19.3) (19.8) (21.0) (21.6)
-------------- -------------- -------------- -------------- -------------
Change in Funds Under Management 4.7 7.6 15.6 26.1 11.6
Beginning Balance 1,510.0 1,514.7 1,522.3 1,537.9 1,564.0
-------------- -------------- -------------- -------------- -------------
Ending Fund Balance 1,514.7 1,522.3 1,537.9 1,564.0 1,575.6
============== ============== ============== ============== =============
LIFE INSURANCE IN FORCE $ 10,914.9 $ 11,270.5 $ 11,763.7 $ 12,830.3 $ 13,195.6
============== ============== ============== ============== =============
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
First Quarter 2004 (unaudited)
($ in millions)
LIFE INSURANCE SALES YTD March December 31,
--------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------- ------------- ------------- ------------- ------------- ------------
WHOLESALER CHANNEL
Variable Universal Life $ 4.5 $ 6.3 $ 30.1 $ 62.5 $ 53.8 $ 61.1
Universal Life/Interest Sensitive 13.1 11.9 67.5 36.9 14.5 8.0
Term Life 3.9 4.5 19.2 15.1 11.4 14.6
Participating Whole Life .6 .6 4.8 9.7 22.6
------------- ------------- ------------- ------------- ------------ -------------
Life Insurance Annualized Premium (1) 21.5 23.3 117.4 119.3 89.4 106.3
============= ============= ============= ============= ============ =============
Variable Universal Life 2.5 4.1 20.1 25.1 49.7 46.2
Universal Life/Interest Sensitive 11.1 7.2 61.6 29.9 14.5 1.8
Participating Whole Life .8 2.4 5.4
------------- ------------- ------------- ------------- ------------ -------------
Life Insurance Single Premium 13.6 11.3 81.7 55.8 66.6 53.4
============= ============= ============= ============= ============ =============
Variable Universal Life 7.0 10.4 50.1 87.6 103.5 107.3
Universal Life/Interest Sensitive 24.2 19.1 129.2 66.8 29.0 9.8
Term Life 3.9 4.5 19.2 15.1 11.4 14.6
Participating Whole Life .6 .6 5.6 12.1 28.0
------------- ------------- ------------- ------------- ------------ -------------
Total Wholesaler Life Insurance Premium 35.1 34.6 199.2 175.1 156.0 159.7
============= ============= ============= ============= ============ =============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 17.4 19.7 149.5 222.5 83.7 34.9
Annuity 28.8 24.5 394.9 142.6 164.0 109.6
------------- ------------- ------------- ------------- ------------ -------------
Total Private Placement Life and Annuity Deposits 46.2 44.2 544.4 365.1 247.7 144.5
============= ============= ============= ============= ============ =============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,642.8 $ 946.0 $ 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
First Quarter 2004 (unaudited)
($ in millions)
LIFE INSURANCE SALES
Quarters ended 2003
-------------------------------------------------------------- 2004
March June September December March
-------------- -------------- -------------- -------------- -------------
WHOLESALER CHANNEL
Variable Universal Life $ 6.3 $ 7.0 $ 5.7 $ 11.1 $ 4.5
Universal Life/Interest Sensitive 11.9 10.8 14.1 30.7 13.1
Term Life 4.5 4.8 4.8 5.2 3.9
Participating Whole Life .6
-------------- -------------- -------------- -------------- -------------
Life Insurance Annualized Premium (1) 23.3 22.6 24.6 47.0 21.5
============== ============== ============== ============== =============
Variable Universal Life 4.1 7.1 3.2 5.6 2.5
Universal Life/Interest Sensitive 7.2 8.3 20.3 25.8 11.1
-------------- -------------- -------------- -------------- -------------
Life Insurance Single Premium 11.3 15.4 23.5 31.4 13.6
============== ============== ============== ============== =============
Variable Universal Life 10.4 14.1 8.9 16.7 7.0
Universal Life/Interest Sensitive 19.1 19.1 34.4 56.5 24.2
Term Life 4.5 4.8 4.8 5.2 3.9
Participating Whole Life .6
-------------- -------------- -------------- -------------- -------------
Total Wholesaler Life Insurance Premium $ 34.6 $ 38.0 $ 48.1 $ 78.4 $ 35.1
============== ============== ============== ============== =============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 19.7 13.8 90.3 25.7 17.4
Annuity 24.5 119.9 227.8 22.8 28.8
-------------- -------------- -------------- -------------- -------------
Total Private Placement Life and Annuity Deposits $ 44.2 $ 133.7 $ 318.1 $ 48.5 $ 46.2
============== ============== ============== ============== =============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 946.0 $ 1,091.3 $ 1,385.3 $ 1,535.5 $ 1,642.8
============== ============== ============== ============== =============
(1) Annualized Premium represents first year premiums on an annual
basis. Total Premium represents Annualized and Single premiums.
11
THE PHOENIX COMPANIES, INC.
ANNUITIES
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
--------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------- ------------- ------------- ------------- ------------ -------------
PRE-TAX INCOME
Fees $ 15.5 $ 12.8 $ 56.9 $ 57.1 $ 64.6 $ 78.2
Interest Earned 35.4 34.1 139.4 98.3 40.3 16.3
Surrender Charges 1.1 1.5 7.4 6.6 3.9 5.1
------------- ------------- ------------- ------------- ------------ -------------
Total Revenues 52.0 48.4 203.7 162.0 108.8 99.6
------------- ------------- ------------- ------------- ------------ -------------
Policy Benefits and Change in Reserves
Mortality Cost .9 2.8 4.3 10.9 4.3 3.0
Incurred Expenses 20.6 19.4 77.3 79.8 54.4 77.3
Interest Credited 27.7 31.5 126.2 92.0 39.2 15.1
------------- ------------- ------------- ------------- ------------ -------------
Total Expenses 49.2 53.7 207.8 182.7 97.9 95.4
------------- ------------- ------------- ------------- ------------ -------------
Pre-tax Income (Loss) 2.8 (5.3) (4.1) (20.7) 10.9 4.2
============= ============= ============= ============= ============ =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 12.6 16.7 51.1 81.3 44.0 29.2
Controllable Expenses 15.9 18.0 65.3 66.5 75.2 54.1
------------- ------------- ------------- ------------- ------------ -------------
Total Current Expenses 28.5 34.7 116.4 147.8 119.2 83.2
Acquisition Cost Deferred (15.0) (24.7) (65.5) (102.9) (83.8) (43.0)
Acquisition Cost Amortized 7.1 9.4 26.4 34.9 19.0 37.0
------------- ------------- ------------- ------------- ------------ -------------
Incurred Expenses $ 20.6 $ 19.4 $ 77.3 $ 79.8 $ 54.4 $ 77.3
============= ============= ============= ============= ============ =============
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
First Quarter 2004 (unaudited)
($ in millions)
PRE-TAX INCOME
Quarters ended 2003
-------------------------------------------------------------- 2004
March June September December March
-------------- -------------- -------------- -------------- -------------
Fees $ 12.8 $ 13.3 $ 15.0 $ 15.7 $ 15.5
Interest Earned 34.1 34.1 35.9 35.4 35.4
Surrender Charges 1.5 1.4 1.8 2.6 1.1
-------------- -------------- -------------- -------------- -------------
Total Revenues 48.4 48.8 52.7 53.7 52.0
-------------- -------------- -------------- -------------- -------------
Policy Benefits and Change in Reserves
Mortality Cost 2.8 1.8 (.3) .9
Incurred Expenses 19.4 20.0 17.9 19.9 20.6
Interest Credited 31.5 30.2 32.7 31.9 27.7
-------------- -------------- -------------- -------------- -------------
Total Expenses 53.7 50.2 52.4 51.5 49.2
-------------- -------------- -------------- -------------- -------------
Pre-tax Income (Loss) (5.3) (1.4) .3 2.2 2.8
============== ============== ============== ============== =============
- ----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 16.7 11.6 11.5 11.3 12.6
Controllable Expenses 18.0 16.3 14.8 16.2 15.9
-------------- -------------- -------------- -------------- -------------
Total Current Expenses 34.7 27.9 26.3 27.5 28.5
Acquisition Cost Deferred (24.7) (14.0) (14.7) (12.2) (15.0)
Acquisition Cost Amortized 9.4 6.1 6.3 4.6 7.1
-------------- -------------- -------------- -------------- -------------
Incurred Expenses $ 19.4 $ 20.0 $ 17.9 $ 19.9 $ 20.6
============== ============== ============== ============== =============
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
First Quarter 2004 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT YTD March December 31,
--------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------- ------------- ------------- ------------- ------------ -------------
Annuities
Deposits $ 215.0 $ 425.7 $ 1,428.1 $ 2,258.4 $ 1,492.9 $ 687.0
Surrenders (195.4) (231.6) (854.9) (736.7) (482.3) (608.5)
------------- ------------- ------------- ------------- ------------ -------------
Net Sales 19.6 194.1 573.2 1,521.7 1,010.6 78.5
Performance and Interest Credited 211.2 20.2 865.3 (338.0) (563.1) (415.2)
Fees (15.3) (11.5) (57.7) (58.8) (67.3) (78.2)
Deaths (23.2) (22.6) (70.4) (40.6) (34.3) (24.9)
Change in Funds Under Management 192.3 180.2 1,310.4 1,084.3 345.9 (439.8)
Beginning Balance 7,143.8 5,833.4 5,833.4 4,749.1 4,403.2 4,843.0
------------- ------------- ------------- ------------- ------------ -------------
Ending Balance $ 7,336.1 $ 6,013.6 $ 7,143.8 $ 5,833.4 $ 4,749.1 $ 4,403.2
============= ============= ============= ============= ============ =============
VA Funds in Guaranteed Interest Accounts (1) $ 2,000.4 $ 2,224.8 $ 2,067.4 $ 2,159.3 $ 955.0 $ 333.5
============= ============= ============= ============= ============ =============
Fixed Annuities (1) (2) $ 1,055.0 $ 921.4 $ 1,056.9 $ 737.2 $ 267.3
============= ============= ============= ============= ============
(1) Amounts are included in the annuities funds under management table above.
(2) Comparable data was not available for 2000.
14
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
First Quarter 2004 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT 2003
-------------------------------------------------------------- 2004
Quarters ended March June September December March
-------------- -------------- -------------- -------------- -------------
Annuities
Deposits $ 425.7 $ 377.4 $ 452.1 $ 172.9 $ 215.0
Surrenders (231.6) (195.1) (214.6) (213.6) (195.4)
-------------- -------------- -------------- -------------- -------------
Net Sales 194.1 182.3 237.5 (40.7) 19.6
Performance and Interest Credited 20.2 351.4 140.1 353.6 211.2
Fees (11.5) (15.4) (14.4) (16.4) (15.3)
Deaths (22.6) (13.0) (16.7) (18.1) (23.2)
-------------- -------------- -------------- -------------- -------------
Change in Funds Under Management 180.2 505.3 346.5 278.4 192.3
Beginning Balance 5,833.4 6,013.6 6,518.9 6,865.4 7,143.8
-------------- -------------- -------------- -------------- -------------
Ending Balance $ 6,013.6 $ 6,518.9 $ 6,865.4 $ 7,143.8 $ 7,336.1
============== ============== ============== ============== =============
VA Funds in Guaranteed Interest Accounts (1) $ 2,224.8 $ 2,210.5 $ 2,155.5 $ 2,067.4 $ 2,000.4
============== ============== ============== ============== =============
Fixed Annuities (1) $ 921.4 $ 1,002.2 $ 1,055.7 $ 1,056.9 $ 1,055.0
============== ============== ============== ============== =============
(1) Amounts are included in the annuities funds under management table above.
15
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
------------------------- -----------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ --------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 330.8 $ 310.9 $ 329.3 $ 310.4 $ 252.8 $ 211.4
Universal Life 232.3 172.6 219.2 163.1 134.7 127.4
Variable Annuities 296.3 271.2 289.0 264.9 211.4 147.0
Fixed Annuities 45.9 35.3 45.2 26.3 .4
Participating 550.3 556.4 551.0 554.6 517.4 554.8
Other 30.6 22.6 28.1 21.2 17.5 17.4
Adjustment for Unrealized Gains and Losses (127.7) (99.0) (94.1) (106.4) (10.5) (39.0)
------------ ------------ ------------ ------------ ------------ -------------
Total $ 1,358.5 $ 1,270.0 $ 1,367.7 $ 1,234.1 $ 1,123.7 $ 1,019.0
============ ============ ============ ============ ============ =============
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM
DEATH BENEFITS (1)
Death Benefit in Excess of Fund Value $ 564.4 $ 1,188.4 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 166.4 242.3 183.0 234.9
Statutory Reserve, Net of Reinsurance 16.5 16.1 17.3 15.8
GAAP Reserve, Net of Reinsurance 6.9 9.2 7.8 8.7
============
(1) Comparable data was not available for 2000 and 2001.
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2004 (unaudited)
($ in millions)
2003
-------------------------------------------------------------- 2004
Quarters ended March June September December March
-------------- -------------- -------------- -------------- -------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 310.9 $ 315.4 $ 323.5 $ 329.3 $ 330.8
Universal Life 172.6 183.4 196.7 219.2 232.3
Variable Annuities 271.2 277.5 288.9 289.0 296.3
Fixed Annuities 35.3 36.8 37.2 45.2 45.9
Participating 556.4 549.9 551.2 551.0 550.3
Other 22.6 24.4 26.4 28.1 30.6
Adjustment for Unrealized Investment
Gains and Losses (99.0) (139.4) (88.2) (94.1) (127.7)
-------------- -------------- -------------- -------------- -------------
Total $ 1,270.0 $ 1,248.0 $ 1,335.7 $ 1,367.7 $ 1,358.5
============== ============== ============== ============== =============
- ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM
DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 1,188.4 $ 898.6 $ 797.0 $ 616.9 $ 564.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 242.3 178.7 161.1 183.0 166.4
Statutory Reserve, Net of Reinsurance 16.1 12.9 19.2 17.3 16.5
GAAP Reserve, Net of Reinsurance 9.2 7.9 8.1 7.8 6.9
============== ============== ============== ============== =============
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD March December 31,
------------------------- ---------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
Investment Management Fees $ 57.3 $ 46.6 $ 205.5 $ 219.2 $ 211.9 $ 270.5
Mutual Funds - Ancillary Fees * 9.7 8.2 35.5 38.7 47.1 64.3
Other Revenue 2.8 1.6 9.3 10.2 12.9 8.8
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 69.8 56.4 250.3 268.1 271.9 343.6
------------ ------------ ------------ ------------ ------------ ------------
Employment Expenses 34.8 29.3 129.6 134.9 123.3 129.4
Other Operating Expenses * 23.3 22.6 86.7 93.4 103.0 108.2
Amortization of Intangibles 8.3 8.4 33.2 32.5 49.0 31.8
Intangible Asset Impairments 66.3
------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses 66.4 60.3 249.5 327.1 275.3 269.4
------------ ------------ ------------ ------------ ------------ ------------
Management Income (Loss) 3.4 (3.9) .8 (59.0) (3.4) 74.2
Other Income (Expense) - Net .4 .9 2.5 1.0 1.6 3.7
Minority Interest (3.7) (2.8) (12.0) (11.9) (6.9) (16.5)
------------ ------------ ------------ ------------ ------------ ------------
Segment Income, before income taxes .1 (5.8) (8.7) (69.9) (8.7) 61.4
Applicable Income taxes (Benefit) .4 (2.1) (3.3) (6.0) 2.6 32.0
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) $ (.3) $ (3.7) $ (5.4) $ (63.9) $ (11.3) $ 29.4
============ ============ ============ ============ ============ ============
* Prior to 2004, mutual funds - ancillary fees were presented net of trail
commissions. Effective for 2004, trail commissions are presented as other
operating expenses. All prior periods have been conformed to the current
presentation.
18
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME
SEGMENT INCOME 2003
-------------------------------------------------------------- 2004
Quarters ended March June September December March
-------------- -------------- -------------- -------------- -------------
Investment Management Fees $ 46.6 $ 47.3 $ 51.5 $ 59.9 $ 57.3
Mutual Funds - Ancillary Fees * 8.2 8.6 9.2 9.5 9.7
Other Revenue 1.6 2.2 2.7 2.8 2.8
-------------- -------------- -------------- -------------- -------------
Total Revenues 56.4 58.1 63.4 72.2 69.8
-------------- -------------- -------------- -------------- -------------
Employment Expenses 29.3 33.2 33.5 33.6 34.8
Other Operating Expenses * 22.6 20.9 22.4 20.6 23.3
Amortization of Intangibles 8.4 8.2 8.3 8.3 8.3
-------------- -------------- -------------- -------------- -------------
Total Operating Expenses 60.3 62.3 64.2 62.5 66.4
-------------- -------------- -------------- -------------- -------------
Management Income (Loss) (3.9) (4.2) (.8) 9.7 3.4
Other Income (Expense) - Net .9 .4 .6 .6 .4
Minority Interest (2.8) (1.9) (2.9) (4.4) (3.7)
-------------- -------------- -------------- -------------- -------------
Segment Income, before income taxes (5.8) (5.7) (3.1) 5.9 .1
Applicable Income Taxes (Benefit) (2.1) (2.3) (1.2) 2.3 .4
-------------- -------------- -------------- -------------- -------------
Segment Income (Loss) $ (3.7) $ (3.4) $ (1.9) $ 3.6 $ (.3)
============== ============== ============== ============== =============
* Prior to 2004, mutual funds - ancillary fees were presented net of trail
commissions. Effective for 2004, trail commissions are presented as other
operating expenses. All prior periods have been conformed to the current
presentation.
19
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
--------------------------- ---------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 649.8 $ 568.7 $ 2,268.3 $ 4,421.1 $ 2,721.8 $ 3,869.4
Outflows (927.3) (688.4) (2,656.6) (2,716.4) (2,546.4) (1,619.7)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (277.5) (119.7) (388.3) 1,704.7 175.4 2,249.6
Performance 315.9 (895.1) 1,537.5 (3,278.2) (3,545.8) (2,858.9)
Other 1,330.0 1,700.0
Acquisitions (Divestitures) 5,914.3 748.6
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 38.4 (1,014.8) 1,149.2 5,670.8 (2,621.8) 1,090.7
Beginning Balance 15,658.4 14,509.2 14,509.2 8,838.4 11,460.2 10,369.5
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 15,696.8 13,494.4 15,658.4 14,509.2 8,838.4 11,460.2
------------ ------------ ------------ ------------ ------------ ------------
MUTUAL FUNDS(1):
Inflows 611.9 341.3 1,744.8 1,513.1 1,660.1 2,068.6
Outflows (573.1) (452.5) (2,039.8) (2,379.2) (2,449.9) (3,079.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows 38.8 (111.2) (295.0) (866.1) (789.8) (1,011.3)
Performance 347.9 (219.3) 1,946.3 (2,406.0) (2,985.3) (1,629.9)
Other (57.6) (74.3) (182.2) (153.7) (148.9) (412.2)
Acquisitions (Divestitures)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 329.1 (404.8) 1,469.1 (3,425.8) (3,924.0) (3,053.4)
Beginning Balance 13,735.6 12,266.5 12,266.5 15,692.3 19,616.3 22,669.7
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 14,064.7 11,861.7 13,735.6 12,266.5 15,692.3 19,616.3
------------ ------------ ------------ ------------ ------------ ------------
INSTITUTIONAL PRODUCTS(1):
Inflows 597.4 793.8 2,974.7 4,312.6 4,989.2 5,572.5
Outflows (798.5) (640.9) (3,452.2) (4,480.0) (3,766.9) (7,023.7)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (201.1) 152.9 (477.5) (167.4) 1,222.3 (1,451.2)
Performance 235.4 (276.6) 2,304.3 (2,178.9) (723.4) 631.8
Other (6.3) (19.9) (1,294.6) 272.6 (2,031.9)
Acquisitions (Divestitures) 1,507.7 105.9 (3,336.0)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 28.0 (123.7) 1,806.9 (2,133.2) 877.4 (6,187.3)
Beginning Balance 16,866.5 15,059.6 15,059.6 17,192.8 16,315.4 22,502.7
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 16,894.5 14,935.9 16,866.5 15,059.6 17,192.8 16,315.4
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS:
Inflows 1,859.1 1,703.8 6,987.8 10,246.8 9,371.1 11,510.4
Outflows (2,298.9) (1,781.8) (8,148.6) (9,575.6) (8,763.2) (11,723.3)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (439.8) (78.0) (1,160.8) 671.2 607.9 (212.9)
Performance 899.2 (1,391.0) 5,788.1 (7,863.1) (7,254.5) (3,857.0)
Other (63.9) (74.3) (202.1) (118.3) 123.7 (744.1)
Acquisitions (Divestitures) 7,422.0 854.5 (3,336.0)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 395.5 (1,543.3) 4,425.2 111.8 (5,668.4) (8,150.0)
Beginning Balance 46,260.5 41,835.3 41,835.3 41,723.5 47,391.9 55,541.9
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance $ 46,656.0 $ 40,292.0 $ 46,260.5 $ 41,835.3 $ 41,723.5 $ 47,391.9
============ ============ ============ ============ ============ ============
Variable Product Change in Assets Under
Management included in Mutual Funds above $ 10.8 $ (106.4) $ 200.4 $ (686.5) $ (734.7) $ (634.6)
============ ============ ============ ============ ============ ============
(1) Effective in 2004, closed-end mutual funds have been reclassified from
institutional products to mutual funds, and the general account assets of
our life companies have been removed. All prior periods have been revised to
conform with the current presentation.
20
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
First Quarter 2004 (unaudited)
($ in millions)
2003
-------------------------------------------------------------- 2004
Quarters ended March June September December March
-------------- -------------- -------------- -------------- -------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 568.7 $ 551.3 $ 525.8 $ 622.5 $ 649.8
Outflows (688.4) (612.6) (559.4) 796.2 (927.3)
-------------- -------------- -------------- -------------- -------------
Net Flows (119.7) (61.3) (33.6) (173.7) (277.5)
Performance (895.1) 1,341.4 239.4 851.8 315.9
-------------- -------------- -------------- -------------- -------------
Change in Assets Under Management (1,014.8) 1,280.1 205.8 678.1 38.4
Beginning Balance 14,509.2 13,494.4 14,774.5 14,980.3 15,658.4
-------------- -------------- -------------- -------------- -------------
Ending Balance 13,494.4 14,774.5 14,980.3 15,658.4 15,696.8
-------------- -------------- -------------- -------------- -------------
MUTUAL FUNDS(1):
Inflows 341.3 431.2 539.7 432.6 611.9
Outflows (452.5) (457.3) (563.7) (566.4) (573.1)
-------------- -------------- -------------- -------------- -------------
Net Flows (111.2) (26.1) (24.0) (133.8) 38.8
Performance (219.3) 1,152.5 248.7 764.5 347.9
Other (74.3) (67.7) 2.4 (42.6) (57.6)
-------------- -------------- -------------- -------------- -------------
Change in Assets Under Management (404.8) 1,058.7 227.1 588.1 329.1
Beginning Balance 12,266.5 11,861.7 12,920.4 13,147.5 13,735.6
-------------- -------------- -------------- -------------- -------------
Ending Balance 11,861.7 12,920.4 13,147.5 13,735.6 14,064.7
-------------- -------------- -------------- -------------- -------------
INSTITUTIONAL PRODUCTS(1):
Inflows 793.8 918.2 576.8 685.9 597.4
Outflows (640.9) (1,075.1) (722.2) (1,014.0) (798.5)
-------------- -------------- -------------- -------------- -------------
Net Flows 152.9 (156.9) (145.4) (328.1) (201.1)
Performance (276.6) 1,274.0 457.0 849.9 235.4
Other (1.7) (15.5) (2.7) (6.3)
-------------- -------------- -------------- -------------- -------------
Change in Assets Under Management (123.7) 1,115.4 296.1 519.1 28.0
Beginning Balance 15,059.6 14,935.9 16,051.3 16,347.4 16,866.5
-------------- -------------- -------------- -------------- -------------
Ending Balance 14,935.9 16,051.3 16,347.4 16,866.5 16,894.5
-------------- -------------- -------------- -------------- -------------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS:
Inflows 1,703.8 1,900.7 1,642.3 1,741.0 1,859.1
Outflows (1,781.8) (2,145.0) (1,845.3) (2,376.6) (2,298.9)
-------------- -------------- -------------- -------------- -------------
Net Flows (78.0) (244.3) (203.0) (635.6) (439.8)
Performance (1,391.0) 3,767.9 945.1 2,466.2 899.2
Other (74.3) (69.4) (13.1) (45.3) (63.9)
-------------- -------------- -------------- -------------- -------------
Change in Assets Under Management (1,543.3) 3,454.2 729.0 1,785.3 395.5
Beginning Balance 41,835.3 40,292.0 43,746.2 44,475.2 46,260.5
-------------- -------------- -------------- -------------- -------------
Ending Balance $ 40,292.0 $ 43,746.2 $ 44,475.2 $ 46,260.5 $ 46,656.0
============== ============== ============== ============== =============
Variable Product Change in Assets Under
Management included in Mutual Funds above $ (106.4) $ 155.1 $ 54.0 $ 97.7 $ 10.8
============== ============== =============== ============== =============
(1) Effective in 2004, closed-end mutual funds have been reclassified from
institutional products to mutual funds, and the general account assets of
our life companies have been removed. All prior periods have been revised to
conform with the current presentation.
21
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
------------------------ ---------------------------------------------------
2004 2003 2003 2002 2001 2000
---------- ----------- ------------ ------------ ------------ ------------
SEGMENT INCOME
Operating Loss $ (.7) $ (.9) $ (5.8) $ (7.4) $ (7.3) $ (7.8)
Realized Gains (Losses) on Cash and
Stock Distributions (3.4) (6.2) 4.9 (4.7) 26.2 222.2
Change in Unrealized Gains on Investments
Held in Partnerships 15.7 31.0 37.1 (47.2) (178.5) 62.9
---------- ----------- ------------ ------------ ------------ ------------
Equity in Partnership Earnings,
before income taxes 11.6 23.9 36.2 (59.3) (159.6) 277.3
Applicable Income Taxes (Benefit) 4.1 8.4 12.7 (20.7) (55.9) 97.1
---------- ----------- ------------ ------------ ------------ ------------
Segment Income (Loss) $ 7.5 $ 15.5 $ 23.5 $ (38.6) $ (103.7) $ 180.2
========== =========== ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 7.9 11.6 31.0 42.2 47.0 97.0
Equity In Earnings of Partnerships 11.6 23.9 36.2 (59.3) (159.6) 277.3
Distributions (13.6) (3.0) (32.2) (41.8) (63.0) (245.1)
Sale of Partnership Interests and Transfer
to Closed Block (52.2) (52.2)
Realized Loss on Sale of Partnership
Interests and Transfer to Closed Block (13.8) (14.3) (5.0)
---------- ----------- ------------ ------------ ------------ ------------
Change in Venture Capital Investments 5.9 (33.5) (31.5) (63.9) (175.6) 129.2
Beginning Balance 196.3 227.8 227.8 291.7 467.3 338.1
---------- ----------- ------------ ------------ ------------ ------------
Ending Balance $ 202.2 $ 194.3 $ 196.3 $ 227.8 $ 291.7 $ 467.3
========== =========== ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 32.6 23.5 36.8 25.0 41.3
Telecom 13.2 7.4 13.3 10.2 19.1
Biotech 16.7 9.8 16.3 11.1 14.1
Healthcare 7.7 6.7 8.2 9.2 10.7
Consumer and Business Products and Services 35.2 32.0 29.6 45.9 46.6
Financial Services 29.1 29.7 28.5 28.1 30.3
Other 53.3 57.7 44.9 50.6 57.8
---------- ----------- ------------ ------------ ------------
Total Private Holdings 187.8 166.8 177.6 180.1 219.9
Public Holdings 12.6 11.4 11.3 23.0 39.8
Cash and Cash Equivalents 1.4 9.2 5.5 21.6 22.5
Other .4 6.9 1.9 3.1 9.5
---------- ----------- ------------ ------------ ------------
Total $ 202.2 $ 194.3 $ 196.3 $ 227.8 $ 291.7
========== =========== ============ ============ ============
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
First Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------------------------
Quarters ended March June September December March
-------------- -------------- -------------- -------------- -------------
SEGMENT INCOME
Operating Loss $ (.9) $ (2.6) $ (1.8) $ (.5) $ (.7)
Realized Gains (Losses) on Cash
and Stock Distributions (6.2) 1.0 6.2 3.7 (3.4)
Change in Unrealized Gains on
Investments Held in Partnerships 31.0 7.4 .7 (1.9) 15.7
-------------- -------------- -------------- -------------- -------------
Equity in Partnership Earnings,
before income taxes 23.9 5.8 5.1 1.3 11.6
Applicable Income Taxes (Benefit) 8.4 2.0 1.8 .5 4.1
-------------- -------------- -------------- -------------- -------------
Segment Income (Loss) 15.5 3.8 3.3 .8 7.5
============== ============== ============== ============== =============
- ----------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 11.6 9.9 6.0 3.5 7.9
Equity In Earnings of Partnerships 23.9 5.8 5.1 1.3 11.6
Distributions (3.0) (5.7) (12.4) (11.0) (13.6)
Sale of Partnership Interests and
Transfer to Closed Block (52.2)
Realized Loss on Sale of Partnership
Interests and Transfer to Closed Block (13.8) (.5)
-------------- -------------- -------------- -------------- -------------
Change in Venture Capital Investments (33.5) 9.5 (1.3) (6.2) 5.9
Beginning Balance 227.8 194.3 203.8 202.5 196.3
-------------- -------------- -------------- -------------- -------------
Ending Balance 194.3 203.8 202.5 196.3 202.2
============== ============== ============== ============== =============
- ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 23.5 36.6 37.3 36.8 32.6
Telecom 7.4 12.6 12.2 13.3 13.2
Biotech 9.8 14.9 15.8 16.3 16.7
Healthcare 6.7 8.0 7.8 8.2 7.7
Consumer and Business Products and Services 32.0 29.6 27.8 29.6 35.2
Financial Services 29.7 28.2 29.2 28.5 29.1
Other 57.7 34.3 42.1 44.9 53.3
-------------- -------------- -------------- -------------- -------------
Total Private Holdings 166.8 164.2 172.2 177.6 187.8
Public Holdings 11.4 15.6 18.1 11.3 12.6
Cash and Cash Equivalents 9.2 9.2 10.8 5.5 1.4
Other 6.9 14.8 1.4 1.9 .4
-------------- -------------- -------------- -------------- -------------
Total $ 194.3 $ 203.8 $ 202.5 $ 196.3 $ 202.2
============== ============== ============== ============== =============
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
First Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD March December 31,
------------------------- ----------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ -------------
Corporate Investment Income $ .9 $ .5 $ 4.3 $ 1.5 $ 7.2 $ 36.7
Investment Income from Investments
Pledged as Collateral 10.1 14.1 52.2 31.0 42.8
Interest Expense on Indebtedness (9.8) (9.8) (39.6) (31.4) (27.3) (32.7)
Interest Expense on Non-recourse
Collateralized Obligations (8.9) (13.3) (48.9) (30.5) (42.3)
Corporate Expenses (3.9) .1 (11.0) (10.4) (19.9) (53.5)
International .1 (1.3) (1.4) 4.2 7.7 12.1
Administrative expenses on
Collateralized Obligations (1.2) (.8) (3.3) (.5) (.5)
Other (.9) (.1) (3.9) (2.4) (23.4)
------------ ------------ ------------ ------------ ------------ -------------
Segment Loss, before income taxes (12.7) (11.4) (47.8) (40.0) (34.7) (60.8)
Applicable Income Tax Benefit (4.4) (3.2) (18.8) (29.8) (20.9) (37.2)
------------ ------------ ------------ ------------ ------------ -------------
Segment Loss $ (8.3) $ (8.2) $ (29.0) $ (10.2) $ (13.8) $ (23.6)
============ ============ ============ ============ ============ =============
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
First Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003
--------------------------------------------------------------- 2004
Quarters ended March June September December March
--------------- -------------- -------------- -------------- --------------
Corporate Investment Income (Loss) $ .5 $ .9 $ 1.5 $ 1.4 $ .9
Investment Income from Investments
Pledged as Collateral 14.1 13.5 12.7 11.9 10.1
Interest Expense on Indebtedness (9.8) (9.9) (9.8) (10.1) (9.8)
Interest Expense on Non-recourse
Collateralized Obligations (13.3) (12.6) (11.9) (11.1) (8.9)
Corporate Expenses .1 (3.1) (4.8) (3.3) (3.9)
International (1.3) 1.0 (1.1) .1
Administrative expenses on
Collateralized Obligations (.8) (.9) (.8) (.8) (1.2)
Other (.9) (.5) 1.6 (.3)
--------------- -------------- -------------- -------------- --------------
Segment Income, before income taxes (11.4) (12.5) (10.5) (13.4) (12.7)
Applicable Income Tax Benefit (3.2) (4.6) (6.7) (4.7) (4.4)
--------------- -------------- -------------- -------------- --------------
Segment Loss $ (8.2) $ (7.9) $ (3.8) $ (8.7) $ (8.3)
=============== ============== ============== ============== ==============
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
------------------------- ----------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
REVENUES
Premiums $ 232.7 $ 246.1 $ 1,042.2 $ 1,082.0 $ 1,112.7 $ 1,147.4
Insurance and Investment Product Fees 160.4 136.1 565.3 560.5 543.2 624.5
Net Investment Income 278.2 291.1 1,107.4 947.7 892.8 1,141.0
Net Realized Investment Gains (Losses) 2.5 (14.1) (100.5) (133.9) (84.9) 89.2
------------ ------------ ------------- ------------ ------------ ------------
Total Revenues 673.8 659.2 2,614.4 2,456.3 2,463.8 3,002.1
------------ ------------ ------------- ------------ ------------ ------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 345.6 350.8 1,454.0 1,436.1 1,406.7 1,409.8
Policyholder Dividends 105.9 116.5 418.8 401.8 400.1 378.0
Policy Acquisition Cost Amortization 22.6 28.0 94.1 59.2 133.0 356.0
Intangible Asset Impairments 66.3
Intangible Asset Amortization 8.3 8.4 33.2 32.5 49.4 36.9
Interest Expense on Indebtedness 9.8 9.8 39.6 31.4 27.3 32.7
Interest Expense on Non-recourse Collateralized
Obligations 8.9 13.3 48.9 30.5 42.3
Demutualization Expenses 25.9 21.8
Other Operating Expenses 145.4 130.3 536.0 583.0 624.4 594.4
------------ ------------ ------------- ----------- ------------ ------------
Total Expenses 646.5 657.1 2,624.6 2,640.8 2,709.1 2,829.6
------------ ------------ ------------- ----------- ------------ ------------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest 27.3 2.1 (10.2) (184.5) (245.3) 172.5
Applicable Income Taxes (Benefit) 7.3 (2.4) (18.5) (56.2) (105.2) 62.4
------------ ------------ ------------- ----------- ------------ ------------
Income (Loss) from Continuing Operations before
Minority Interest 20.0 4.5 8.3 (128.3) (140.1) 110.1
Minority Interest in Net Income of Subsidiaries (3.7) (2.8) (12.4) (12.4) (7.2) (14.1)
------------ ------------ ------------- ----------- ------------ ------------
Income (Loss) from Continuing Operations 16.3 1.7 (4.1) (140.7) (147.3) 96.0
Discontinued Operations
Income (Loss) from Discontinued Operations .3 (.4) (2.1) (1.3) (2.5) 8.2
Loss on Disposal (20.9)
------------ ------------ ------------- ------------ ------------ ------------
Income (Loss) Before Cumulative Effect of
Accounting Changes 16.6 1.3 (6.2) (142.0) (149.8) 83.3
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) $ 16.6 $ 1.3 $ (6.2) $ (272.3) $ (215.2) $ 83.3
============ ============ ============= ============ ============ ============
(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)
First Quarter 2004 (unaudited)
($ in millions)
2003
------------------------------------------------------------------ 2004
Quarters ended March June September December March
-------------- ------------- --------------- ---------------- -------------
REVENUES
Premiums $ 246.1 $ 248.5 $ 286.9 $ 260.7 $ 232.7
Insurance and Investment Product Fees 136.1 133.1 143.0 157.0 160.4
Net Investment Income 291.1 277.7 267.2 271.3 278.2
Net Realized Investment Losses (14.1) (104.7) (3.4) 21.7 2.5
-------------- ------------- --------------- --------------- ------------
Total Revenues 659.2 554.6 693.7 710.7 673.8
-------------- ------------- --------------- --------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy
Liabilities 350.8 348.4 389.0 365.8 345.6
Policyholder Dividends 116.5 94.2 99.5 108.6 105.9
Policy Acquisition Cost Amortization 28.0 25.9 22.7 17.5 22.6
Intangible Asset Amortization 8.4 8.2 8.3 8.3 8.3
Interest Expense on Indebtedness 9.8 9.9 9.8 10.1 9.8
Interest Expense on Non-recourse
Collateralized Obligations 13.3 12.6 11.9 11.1 8.9
Other Operating Expenses 130.3 136.5 130.2 142.8 145.4
-------------- ------------- -------------- --------------- ------------
Total Expenses 657.1 635.7 671.4 664.2 646.5
-------------- ------------- -------------- --------------- ------------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest 2.1 (81.1) 22.3 46.5 27.3
Applicable Income Taxes (Benefit) (2.4) (34.2) 5.8 12.3 7.3
-------------- ------------- -------------- --------------- ------------
Income (Loss) from Continuing Operations
before Minority Interest 4.5 (46.9) 16.5 34.2 20.0
Minority Interest in Net Income of
Subsidiaries (2.8) (2.3) (2.9) (4.4) (3.7)
-------------- ------------- -------------- --------------- ------------
Income (Loss) from Continuing Operations 1.7 (49.2) 13.6 29.8 16.3
Income (Loss) from Discontinued Operations (.4) (.4) (.4) (.9) .3
-------------- ------------- -------------- --------------- ------------
Net Income (Loss) $ 1.3 $ (49.6) $ 13.2 $ 28.9 $ 16.6
============== ============= ============== ==============- ============
(1) Certain reclassifications have been made to prior periods to conform with the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING FIRST QUARTER 2004 INCOME STATEMENT
First Quarter 2004 (unaudited)
($ in millions)
Quarter ended March 31, 2004 Operating Segments Other Segments
-------------------------------- ----------------------------
Asset Venture Corporate
Consolidated Life & Annuity Management Capital & Other
---------------- ---------------- -------------- -------------- ------------
REVENUES
Premiums $ 232.7 $ 232.7
Insurance and Investment Product Fees 160.4 89.5 $ 70.1 $ 2.0
Net Investment Income 278.2 249.9 .1 $ 11.6 14.6
Net Realized Investment Losses 2.5
---------------- ---------------- -------------- -------------- -------------
Total Revenues 673.8 572.1 70.2 11.6 16.6
---------------- ---------------- -------------- -------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 345.6 343.2 2.4
Policyholder Dividends 105.9 105.8
Policy Acquisition Cost Amortization 22.6 22.2
Intangible Asset Amortization 8.3 8.3
Intangible Asset Impairments
Interest Expense on Indebtedness 9.8 9.8
Interest Expense on Non-recourse Collateralized
Obligations 8.9 8.9
Other Operating Expenses 145.4 75.1 58.1 8.2
---------------- ---------------- -------------- -------------- -------------
Total Expenses 646.5 546.3 66.4 29.3
---------------- ---------------- -------------- -------------- -------------
Income (Loss) from Continuing Operations Before
Income Taxes and Minority Interest 27.3 25.8 3.8 11.6 (12.7)
Applicable Income Taxes (Benefit) 7.3 7.2 .4 4.1 (4.4)
---------------- ---------------- -------------- -------------- -------------
Income (Loss) from Continuing Operations before
Minority Interest 20.0 18.6 3.4 7.5 (8.3)
Minority Interest in Net Income of Subsidiaries (3.7) (3.7)
---------------- ---------------- -------------- -------------- -------------
Income (Loss) from Continuing Operations $ 16.3 $ 18.6 $ (.3) $ 7.5 $ (8.3)
================ ================ ============== ============== =============
Exclusions from
Segment Income
--------------------------------
Realized
Investment
Losses Other
----------------------------------
REVENUES
Premiums
Insurance and Investment Product Fees $ (1.2)
Net Investment Income 2.0
Net Realized Investment Losses $ 2.5
---------------- -------------
Total Revenues 2.5 .8
---------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities
Policyholder Dividends .1
Policy Acquisition Cost Amortization .4
Intangible Asset Amortization
Intangible Asset Impairments
Interest Expense on Indebtedness
Interest Expense on Non-recourse Collateralized
Obligations
Other Operating Expenses 4.0
---------------- -------------
Total Expenses .5 4.0
---------------- -------------
Income (Loss) from Continuing Operations Before
Income Taxes and Minority Interest 2.0 (3.2)
Applicable Income Taxes (Benefit) 1.2 (1.2)
---------------- -------------
Income (Loss) from Continuing Operations before
Minority Interest .8 (2.0)
Minority Interest in Net Income of Subsidiaries
---------------- -------------
Income (Loss) from Continuing Operations $ .8 $ (2.0)
================ =============
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
First Quarter 2004 (unaudited)
($ in millions, except par value)
December 31,
March ----------------------------------------------------------
2004 2003 2002 2001 2000
---------------- -------------- ------------- ------------ ------------
ASSETS:
Available-for-Sale Debt Securities, at fair value $ 13,631.0 $ 13,273.0 $ 11,889.5 $ 9,774.1 $ 6,022.3
Held-to-Maturity Debt Securities 2,109.6
Equity Securities, at fair value 338.9 312.0 385.9 287.7 335.5
Mortgage Loans, at unpaid principal balances 271.5 284.1 468.8 535.8 593.4
Policy Loans, at unpaid principal balances 2,239.4 2,227.8 2,195.9 2,172.2 2,105.2
Venture Capital Partnerships, at equity in net assets 249.5 234.9 228.6 291.7 467.3
Affiliate Equity and Debt Securities, at cost plus
equity in undistributed earnings 49.3 47.5 134.7 150.6 103.0
Other Investments 414.3 402.0 398.9 376.0 313.6
---------------- -------------- ------------- ------------ ------------
17,193.9 16,781.3 15,702.3 13,588.1 12,049.9
Available-for-Sale Investments Pledged as
Collateral, at fair value 1,389.2 1,350.0 1,358.7 550.6
---------------- -------------- ------------- ------------ ------------
Total Investments 18,583.1 18,131.3 17,061.0 14,138.7 12,049.9
Cash and Cash Equivalents 321.7 447.9 1,110.5 823.3 717.6
Deferred Policy Acquisition Costs 1,358.5 1,367.7 1,234.1 1,123.7 1,019.0
Goodwill and other intangible assets 746.4 755.0 747.7 858.6 582.6
Other General Account Assets 685.5 774.1 711.4 566.1 567.8
Separate Account Assets 6,461.6 6,083.2 4,371.2 5,025.2 5,376.6
---------------- -------------- ------------- ------------ ------------
Total Assets 28,156.8 27,559.2 25,235.9 22,535.6 20,313.5
================ ============== ============= ============ ============
LIABILITIES:
Policy Liabilities and Accruals 13,335.3 13,088.6 12,680.0 11,846.4 11,372.6
Policyholder Deposit Funds 3,556.4 3,642.7 3,395.7 1,515.2 678.4
Indebtedness 666.8 639.0 644.3 599.3 425.1
Stock Purchase Contracts 145.1 128.8 137.6
Other General Account Liabilities 549.4 557.1 570.8 614.1 619.9
Non-recourse Collateralized Debt Obligation
Liabilities 1,445.0 1,472.0 1,609.5 632.7
Separate Account Liabilities 6,461.6 6,083.2 4,371.2 5,020.1 5,376.6
---------------- -------------- ------------- ------------ ------------
Total Liabilities and minority interest 26,159.6 25,611.4 23,409.1 20,227.8 18,472.6
---------------- -------------- ------------- ------------ ------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion shares
authorized; 94,564,441 shares outstanding
(March 31, 2004) 1.0 1.0 1.0 1.0
Additional paid in capital 2,428.9 2,428.8 2,424.4 2,413.3
Deferred Compensation on Restricted Stock Units (3.2) (3.6)
Accumulated Earnings (Deficit) (336.1) (352.7) (331.4) (43.3) 1,820.7
Treasury stock, at cost: 11,796,366 shares
(March 31, 2004) (187.2) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income (Loss) 93.8 63.7 (71.5) 2.8 20.2
---------------- --------------- ------------- ------------ -----------
Total Stockholders' Equity 1,997.2 1,947.8 1,826.8 2,307.8 1,840.9
---------------- -------------- ------------- ------------ -----------
Total Liabilities, Minority Interest and
Stockholders' Equity $ 28,156.8 $ 27,559.2 $ 25,235.9 $ 22,535.6 $ 20,313.5
================ ============== ============= ============ ===========
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
First Quarter 2004 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
03/31/2004 12/31/2003 03/31/2004 12/31/2003 03/31/2004 12/31/2003
------------- ------------- ------------- ------------- ------------- -----------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 8,895.3 $ 8,821.2 $ 7,456.2 $ 7,442.1 $ 1,439.1 $ 1,379.1
BBB 3,620.3 3,350.8 2,389.0 2,160.6 1,231.3 1,190.2
------------- ------------- ------------- ------------- ------------- -----------
Total Investment Grade 12,515.6 12,172.0 9,845.2 9,602.7 2,670.4 2,569.3
BB 828.7 764.9 705.6 635.5 123.1 129.4
B 200.2 218.9 154.7 157.8 45.5 61.1
CCC and Lower 67.6 94.6 31.3 53.7 36.3 40.9
In or Near Default 18.9 22.6 15.3 19.0 3.6 3.6
------------- ------------- ------------- ------------- ------------- -----------
Total Debt Securities $ 13,631.0 $ 13,273.0 $ 10,752.1 $ 10,468.7 $ 2,878.9 $ 2,804.3
============= ============= ============= ============= ============= ===========
% Below Investment Grade 8.2% 8.3% 8.4% 8.3% 7.2% 8.4%
- ------------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT
AND EQUITY SECURITIES
As of March 31, 2004 Total Outside Closed Block Closed Block
----------------------------- ---------------------------- -------------------------
Gains Losses Gains Losses Gains Losses
------------- ------------- ------------- ------------- ------------- ----------
Total Debt Securities $ 915.7 $ (69.0) $ 295.6 $ (42.3) $ 620.1 $ (26.7)
Equity Securities 116.2 (2.5) 107.4 (1.4) 8.8 (1.1)
------------- ------------- ------------- ------------- ------------- ----------
Total Unrealized Gains (Losses) 1,031.9 (71.5) 403.0 (43.7) 628.9 (27.8)
------------- ------------- ------------- ------------- ------------- ----------
Applicable Policyholder Dividend Obligation 628.9 (27.8) 628.9 (27.8)
Applicable Deferred Acquisition Cost (Credit) 144.5 (19.4) 144.5 (19.4)
Applicable Deferred Income Tax (Benefit) 90.5 (8.5) 90.5 (8.5)
------------- ------------- ------------- ------------- ------------- ----------
Total Offsets to Net Unrealized Gains (Losses) 863.9 (55.7) 235.0 (27.9) 628.9 (27.8)
------------- ------------- ------------- ------------- ------------- ----------
Net Unrealized Gains (Losses) $ 168.0 $ (15.8) $ 168.0 $ (15.8) $ - $ -
============= ============== ============= ============= ============= ==========
Net Unrealized Gains $ 152.2 $ 152.2 $ -
============= ============= =============
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
First Quarter 2004 (Quarters unaudited)
($ in millions)
Quarters ended 2003
------------------------------------------------------------------------- 2004
March June September December March
---------------- --------------- ---------------- ----------------- -----------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 187.1 $ 199.1 $ 184.0 $ 195.3 $ 192.1
Equity Securities 1.3 .9 .9 1.5 .4
Mortgages 12.1 7.3 7.0 6.2 5.9
Policy Loans 42.6 42.6 42.2 44.3 42.2
Venture Capital 28.9 6.5 10.2 3.5 17.6
Cash & Cash Equivalents 3.1 1.4 1.4 1.1 .7
Other * 4.5 8.6 11.0 8.1 12.4
---------------- --------------- ---------------- ----------------- -----------------
Total Cash and Invested Assets 279.6 266.4 256.7 260.0 271.3
---------------- --------------- ---------------- ----------------- -----------------
Investment Expenses 3.0 2.7 2.6 2.0 3.2
---------------- --------------- ---------------- ----------------- -----------------
Total Net Investment Income $ 276.6 $ 263.7 $ 254.1 $ 258.0 $ 268.1
================ =============== ================ ================= =================
ANNUALIZED YIELDS
Debt Securities 6.2% 6.1% 5.8% 6.1% 5.9%
Equity Securities 1.4% 1.0% 1.0% 1.8% .5%
Mortgages 9.1% 8.0% 8.6% 8.4% 8.9%
Policy Loans 8.1% 8.0% 7.9% 8.3% 7.9%
Venture Capital 67.9% 11.9% 18.7% 6.1% 34.0%
Cash & Cash Equivalents 1.5% .9% .9% .9% .7%
Other * 3.4% 7.0% 10.3% 6.1% 14.0%
---------------- --------------- ---------------- ----------------- -----------------
Total Cash and Invested Assets 6.7% 6.2% 6.1% 6.2% 6.5%
---------------- --------------- ---------------- ----------------- -----------------
Investment Expenses .1% .1% .1% 0% .1%
---------------- --------------- ---------------- ----------------- -----------------
Total Net Investment Income 6.7% 6.1% 6.0% 6.2% 6.4%
================ =============== ================ ================= =================
* 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.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
First Quarter 2004 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------- ------------- ------------- ------------- ----------- -----------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (2.8) $ (22.5) $ (76.1) $ (114.3) $ (46.1) $ (7.5)
Equity Security Impairments (4.3) (9.8)
Affiliated Equity Securities (96.9)
Venture Capital Partnerships Impairments (4.3) (4.6) (5.1)
Mortgage Loan Impairments (.4) (4.1) (.6) (6.1) (1.8)
Real Estate Impairments (6.6) (6.1)
Debt and Equity Securities Pledged as
Collateral Impairments (4.7) (4.9) (8.3) (34.9) (39.0)
Other Invested Asset Impairments (3.3) (8.9) (9.9) (22.0) (3.7)
------------- ------------- ------------- ------------- ----------- -----------
Total Impairment Losses (10.8) (41.0) (210.8) (186.7) (94.9) (15.4)
------------- ------------- ------------- ------------- ----------- -----------
Debt Security Net Transaction Gains (Losses) 7.0 41.3 64.7 48.4 21.7 (46.9)
Equity Security Net Transaction Gains (Losses) 2.2 (2.2) 47.2 2.1 (8.8) 146.8
Venture Capital Net Investment Gains (Losses) (9.5) (9.7)
Mortgage Loan Net Transaction Gains (Losses) .2 (.4) (1.3) .2 7.1 4.8
Real Estate Net Transaction Gains (Losses) .5 (.2) 4.0 (2.5) 1.8
Other Invested Asset Net Transactions Gains
(Losses) 3.9 (2.9) 9.6 (1.9) (7.5) (1.9)
------------- ------------- ------------- ------------- ----------- -----------
Total Net Transactions Gains 13.3 26.8 110.3 52.8 10.0 104.6
------------- ------------- ------------- ------------- ----------- -----------
Net Realized Investment Gains (Losses) 2.5 (14.2) (100.5) (133.9) (84.9) 89.2
============= ============= ============= ============= =========== ===========
Closed Block Applicable PDO (Reduction) .1 8.5 (5.9) (40.3) (15.4)
Applicable Deferred Acquisition Costs (Credit) .4 .4 (4.1) (7.2) 10.5 (10.7)
Applicable Deferred Income Tax (Credit) 1.2 (8.8) (36.3) (20.8) (24.5) 32.9
------------- ------------- ------------- ------------- ----------- -----------
Net Realized Investment Gains (Losses)
Included in Net Income $ .8 $ (14.3) $ (54.2) $ (65.6) $ (55.5) $ 67.0
============= ============= ============= ============= =========== ===========
32
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
First Quarter 2004 (unaudited)
($ in millions)
2003
-------------------------------------------------------- 2004
Quarter ended March June September December March
------------ ------------- ------------ ------------ -------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (22.5) $ (19.8) $ (13.5) $ (20.3) $ (2.8)
Equity Security Impairments (1.1) (3.2)
Affiliated Equity Securities (96.9)
Venture Capital Partnerships Impairments (4.3) (.3)
Mortgage Loan Impairments (.4) (2.8) (.9)
Real Estate Impairments (.4) (6.2)
Debt and Equity Securities Pledged as
Collateral Impairments (4.9) (.1) (2.3) (1.0) (4.7)
Other Invested Asset Impairments (8.9) (1.0) (3.3)
------------ ------------- ------------ ------------ -----------
Total Impairment Losses (41.0) (122.0) (20.3) (27.5) (10.8)
------------ ------------- ------------ ------------ -----------
Debt Security Net Transaction Gains (Losses) 41.3 5.2 11.1 7.1 7.0
Equity Security Net Transaction Gains (Losses) (2.2) 7.4 4.9 37.1 2.2
Venture Capital Net Investment Gains (Losses) (9.5) (.2)
Mortgage Loan Net Transaction Gains (Losses) (.4) (.4) (.6) .1 .2
Real Estate Net Transaction Gains (Losses) .5 (.4) (.3)
Other Invested Asset Net Transactions Gains
(Losses) (2.9) 5.6 1.7 5.2 3.9
------------ ------------- ------------ ------------ -----------
Total Net Transactions Gains 26.8 17.2 17.1 49.2 13.3
------------ ------------- ------------ ------------ -----------
Net Realized Investment Gains (Losses) (14.2) (104.8) (3.2) 21.7 2.5
============ ============= ============ ============ ===========
Closed Block Applicable PDO (Reduction) 8.5 (9.5) (3.5) (1.4) .1
Applicable Deferred Acquisition Costs (Credit) .4 1.3 (2.8) (3.0) .4
Applicable Deferred Income Tax (Credit) (8.8) (37.2) 1.3 8.4 1.2
------------ ------------- ------------ ------------ -----------
Net Realized Investment Gains (Losses)
Included in Net Income $ (14.3) $ (59.4) $ 1.8 $ 17.7 $ .8
============ ============= ============ ============ ===========
33