EXHIBIT 99.1
FINANCIAL SUPPLEMENT
THE PHOENIX COMPANIES, INC.
June 30, 2004
ADD VALUE TO WEALTH.(SM) [LOGO]PHOENIX(R)
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
WALL STREET COVERAGE
FIRM ANALYST
A.G. Edwards & Sons, Inc. J. Jeffrey Hopson
Credit Suisse First Boston (CSFB) Tom Gallagher
Deutsche Bank North America Vanessa Wilson
Dowling & Partners Securities, LLC Len Savage
Fox-Pitt, Kelton, Inc. Jonathan Joseph
Friedman, Billings, Ramsey & Co. Stewart Johnson
JP Morgan Jimmy Bhullar
Keefe Bruyette & Woods, Inc. 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:
The Phoenix Companies, Inc. C/O The Bank of New York, Shareholder Relations,
P.O. Box 11258, New York, NY 10286-1258
Toll-free: 1-800-490-4258 TTY 1-888-269-5221
Fax: 1-212-815-2777, e-mail: pnxshareholders@bankofny.com
Web: www.stockbny.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@phoenixwm.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
JUNE 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 SECOND 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
SECOND QUARTER 2004 (UNAUDITED)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
YTD June ---------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
General Account Invested Assets $ 17,079.5 $ 17,229.2 $ 16,812.8 $ 14,411.4 $ 12,594.3
Separate Account Assets 6,526.4 6,083.2 4,371.2 5,025.2 5,376.6
Total Assets 27,789.8 27,559.2 25,235.9 22,535.6 20,313.5
Indebtedness 661.2 639.0 644.3 599.3 425.1
Total Stockholders' Equity 1,921.8 1,947.8 1,826.8 2,307.8 1,840.9
Total Stockholders' Equity excluding SFAS 115 and
FIN 46-R adjustments 1,950.7 1,925.3 1,937.1 2,317.5 1,820.7
Debt to Total Capitalization 25.6% 24.7% 24.1% 20.0% 18.8%
Debt (Excluding Equity Units) to Total Capitalization 19.6% 18.8% 18.3%
Book Value Per Share (1) $ 20.30 $ 20.62 $ 19.43 $ 22.64 $ 24.75
Book Value Per Share, excluding SFAS 115 adjustment $ 20.12 $ 19.96 $ 20.19 $ 22.62 $ 24.51
Book Value Per Share, excluding SFAS 115 and
FIN 46-R adjustments $ 20.60 $ 20.39 $ 20.60 $ 22.74
Period-end Common Shares Outstanding (2) 94.7 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 7.5 10.3 15.6 (0.8)
Bank Credit Facility 25.0 125.1 230.0
Other 20.1
------------ ------------ ------------ ------------ ------------
Total Indebtedness $ 661.2 $ 639.0 $ 644.3 $ 599.3 $ 425.1
============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE
INSURANCE COMPANY (3)
Capital, Surplus and Surplus Notes $ 729.7 $ 762.9 $ 861.0 $ 1,149.8 $ 1,322.8
Asset Valuation Reserve (AVR) $ 194.9 $ 198.5 $ 147.0 $ 221.5 $ 559.7
------------ ------------ ------------ ------------ ------------
Capital, Surplus, Surplus Notes and AVR $ 924.6 $ 961.4 $ 1,008.0 $ 1,371.3 $ 1,882.5
============ ============ ============ ============ ============
Policyholder Dividend Liability $ 432.3 $ 408.5 $ 403.0 $ 395.8 $ 383.2
Interest Maintenance Reserve $ (31.1) $ (30.2) $ (2.0) $ 11.6 $ (1.4)
Statutory Gain (Loss) From Operations $ (14.9) $ 69.7 $ 44.5 $ 119.9 $ 266.4
Statutory Net Income (Loss) $ (4.9) $ 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. June 2004 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Second Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD June December 31,
------------------------- --------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ -----------
SEGMENT INCOME
Life Insurance $ 52.9 $ 52.4 $ 103.5 $ 101.0 $ 72.0 $ 19.6
Annuities 6.7 (6.6) (4.1) (20.7) 10.9 4.2
------------ ------------ ------------ ------------ ------------ -----------
Life and Annuity Segment 59.6 45.8 99.4 80.3 82.9 23.8
Asset Management Segment .2 (11.5) (8.7) (69.9) (8.7) 61.4
Venture Capital Segment 16.0 29.7 36.2 (59.3) (159.6) 277.3
Corporate and Other Segment (28.7) (23.9) (47.8) (40.0) (34.7) (60.8)
------------ ------------ ------------ ------------ ------------ -----------
Total Segment Income (Loss), before income
taxes 47.1 40.1 79.1 (88.9) (120.1) 301.7
Applicable Income Taxes (Benefit) 13.0 11.0 21.8 (28.5) (45.4) 101.3
------------ ------------ ------------ ------------ ------------ -----------
TOTAL SEGMENT INCOME (LOSS) 34.1 29.1 57.3 (60.4) (74.7) 200.4
Net Realized Investment Gains (Losses), after
income taxes 10.3 (71.6) (51.8) (39.3) (43.0) 62.0
Realized losses - investments pledged as
collateral consolidated under FIN 46-R (4.6) (2.0) (2.4) (26.3) (12.5)
Management Restructuring and Early Retirement
Costs (8.9) (4.3) (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 (expense) 1.3 1.3 5.3 (.1)
------------ ------------ ------------ ------------ ------------ -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 30.9 (47.5) (4.1) (140.7) (196.1) 96.0
Income (Loss) from Discontinued Operations .1 (.8) (2.1) (1.3) (2.5) (12.7)
------------ ------------ ------------ ------------ ------------ -----------
Income (Loss) before Cumulative Effect of Accounting 31.0 (48.3) (6.2) (142.0) (198.6) 83.3
changes (130.3) (16.6)
Cumulative Effect of Accounting changes ------------ ------------ ------------ ------------ ------------ -----------
NET INCOME (LOSS) $ 31.0 $ (48.3) $ (6.2) $ (272.3) $ (215.2) $ 83.3
============ ============ ============ ============ ============ ===========
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.6 94.1 94.2 97.9 104.6 104.6
------------ ------------ ------------ ------------ ------------ -----------
Total Segment Income (Loss) Per Share $ 0.36 $ 0.31 $ 0.61 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.33 $ (0.51) $ (0.07) $ (2.78) $ (2.06) $ 0.80
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares (1) (2) 101.6 94.1 96.6 97.9 104.6 104.6
------------ ------------ ------------ ------------ ------------ -----------
Total Segment Income (Loss) Per Share $ 0.34 $ 0.31 $ 0.59 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.30 $ (0.51) $ (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 six months ended June 30, 2003 and the twelve months ended December
31, 2003, the weighted average common shares outstanding and dilutive
potential common shares were 95.2 million and 96.6 million, respectively.
For the calculation of net loss per share, dilutive potential shares were
not included because their effect would have been anti-dilutive.
2
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Second Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2003 2004
--------------------------------------------------- ------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ -----------
SEGMENT INCOME
Life Insurance $ 23.3 $ 29.2 $ 24.7 $ 26.4 $ 23.0 $ 29.9
Annuities (5.3) (1.4) .3 2.2 2.8 3.9
------------ ------------ ------------ ------------ ------------ -----------
Life and Annuity Segment 18.0 27.8 25.0 28.6 25.8 33.8
Asset Management Segment (5.8) (5.7) (3.1) 5.9 .1 .1
Venture Capital Segment 23.9 5.8 5.1 1.3 11.6 4.4
Corporate and Other Segment (11.4) (12.5) (10.5) (13.4) (12.7) (16.0)
------------ ------------ ------------ ------------ ------------ -----------
Total Segment Income (Loss), before income taxes 24.7 15.4 16.5 22.4 24.8 22.3
Applicable Income Taxes (Benefit) 7.5 3.5 4.6 6.1 7.3 5.7
------------ ------------ ------------ ------------ ------------ -----------
TOTAL SEGMENT INCOME 17.2 11.9 11.9 16.3 17.5 16.6
Net Realized Investment Gains (Losses),
after income taxes (12.4) (59.2) 2.5 17.3 1.7 8.6
Realized gains (losses) - investments pledged as
collateral consolidated under FIN 46-R (1.9) (.1) (.8) .4 (1.0) (3.6)
Management Restructuring and Early Retirement Costs (2.5) (1.8) (4.2) (1.9) (7.0)
Other income 1.3
------------ ------------ ------------ ------------ ------------ -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1.7 (49.2) 13.6 29.8 16.3 14.6
Income (Loss) from Discontinued Operations (.4) (.4) (.4) (.9) .3 (.2)
------------ ------------ ------------ ------------ ------------ -----------
NET INCOME (LOSS) $ 1.3 $ (49.6) $ 13.2 $ 28.9 $ 16.6 $ 14.4
============ ============ ============ ============ ============ ===========
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.0 94.2 94.3 94.4 94.5 94.6
------------ ----------- ------------ ------------ ------------ -----------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.13 $ 0.13 $ 0.17 $ 0.19 $ 0.18
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.14 $ 0.31 $ 0.18 $ 0.15
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares (1) (2) 95.0 94.2 98.3 99.8 102.0 101.3
------------ ----------- ------------ ------------ ------------ -----------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.13 $ 0.12 $ 0.16 $ 0.17 $ 0.16
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.13 $ 0.29 $ 0.16 $ 0.14
(1) Weighted-average shares outstanding through 2001 are pro forma due to
Initial Public Offering (IPO) in 2001.
(2) For the three months ended June 30, 2003, the weighted average common shares
outstanding and dilutive potential common shares were 95.3 million. For the
calculation of net loss per share , dilutive potential shares were not
included because their effect would have been anti-dilutive.
3
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
Second Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD June December 31,
------------------------- --------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ -----------
Variable Universal Life $ 16.6 $ 15.6 $ 35.0 $ 35.9 $ 30.2 $ 20.1
Universal Life (1) 12.8 10.3 21.7 26.3 17.4 18.2
Term Life (.8) (.4) 3.8 4.7 1.3 (1.0)
Other Life and Annuity (2) 7.2 4.2 6.9 .8 1.7 4.6
------------ ------------ ------------ ------------ ------------ -----------
Total, Non-participating Life 35.8 29.7 67.4 67.7 50.6 41.9
Participating Life 17.1 22.7 36.1 33.3 21.4 (22.3)
------------ ------------ ------------ ------------ ------------ -----------
Total, Life Insurance 52.9 52.4 103.5 101.0 72.0 19.6
Annuities 6.7 (6.6) (4.1) (20.7) 10.9 4.2
------------ ------------ ------------ ------------ ------------ -----------
Segment Income, before income taxes 59.6 45.8 99.4 80.3 82.9 23.8
Allocated Income Taxes (3) 17.4 12.4 31.1 28.0 28.8 9.4
------------ ------------ ------------ ------------ ------------ -----------
Segment Income $ 42.2 $ 33.4 $ 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
Second Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
Quarters ended --------------------------------------------------- ------------------------
March June September December March June
------------ ----------- ------------- ------------ ------------ -----------
Variable Universal Life $ 6.3 $ 9.3 $ 10.5 $ 9.0 $ 8.2 $ 8.5
Universal Life (1) 4.7 5.6 5.5 5.9 1.9 10.9
Term Life .4 (.8) .9 3.3 .3 (1.1)
Other Life and Annuity (2) 3.1 1.2 .8 1.8 3.7 3.5
------------ ----------- ------------- ------------ ------------ -----------
Total, Non-participating Life 14.5 15.3 17.7 20.0 14.1 21.7
Participating Life 8.8 13.9 7.0 6.4 8.9 8.2
------------ ----------- ------------- ------------ ------------ -----------
Total, Life Insurance 23.3 29.2 24.7 26.4 23.0 29.9
Annuities (5.3) (1.4) .3 2.2 2.8 3.9
------------ ----------- ------------- ------------ ------------ -----------
Segment Income, before income taxes 18.0 27.8 25.0 28.6 25.8 33.8
Applicable Income Taxes (3) 4.0 8.4 10.7 8.0 7.2 10.2
------------ ----------- ------------- ------------ ------------ -----------
Segment Income $ 14.0 $ 19.4 $ 14.3 $ 20.6 $ 18.6 $ 23.7
============ =========== ============= ============ ============ ===========
(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
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
-------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 15.3 $ 15.1 $ 30.1 $ 31.4 $ 29.5 $ 24.9
Cost of Insurance (COI) 36.8 36.0 72.1 66.4 60.0 46.2
Interest Earned 2.9 3.1 5.6 7.0 4.5 5.7
Surrender Charges 3.0 2.8 6.9 4.4 3.3 3.5
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 58.0 57.0 114.7 109.2 97.3 80.3
------------ ------------ ------------ ------------ ------------ ------------
Net Death and Disability Benefits 15.8 11.0 23.3 22.9 15.3 15.5
Incurred Expenses 23.6 28.6 52.8 45.9 48.2 41.6
Interest Credited 2.0 1.9 3.6 3.7 3.6 3.1
Minority Interest .8
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 41.4 41.5 79.7 73.3 67.1 60.2
------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 16.6 15.6 35.0 35.9 30.2 20.1
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 8.2 9.8 21.4 36.6 29.5 34.2
Controllable Expenses and Other 18.5 23.7 44.6 60.8 60.1 57.3
------------ ------------ ------------ ------------ ------------ ------------
Total Current Expenses 26.7 33.5 66.0 97.4 89.6 91.5
Acquisition Costs Deferred (13.2) (16.7) (33.9) (68.1) (65.4) (56.9)
Acquisition Costs Amortized 10.1 11.8 20.8 16.6 24.0 7.0
------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 23.6 28.6 52.8 45.9 48.2 41.6
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 127.0 133.8 353.4 465.7 336.1 258.1
Surrenders (30.6) (25.2) (69.4) (37.6) (31.2) (34.0)
Deaths (.8) (.3) (1.4) (1.8) (1.7) (1.4)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 95.6 108.3 282.6 426.3 303.2 222.7
Performance 66.5 101.9 252.1 (149.8) (194.0) (128.1)
Fees (15.8) (16.3) (36.4) (35.8) (34.5) (33.0)
Cost of Insurance (35.7) (34.7) (69.8) (66.4) (60.0) (46.2)
------------ ------------ ------------ ------------ ------------ ------------
Acquisitions
Change in Funds Under Management 110.6 159.2 428.5 174.3 14.7 15.4
Beginning Balance 1,698.9 1,270.3 1,270.3 1,096.0 1,081.3 1,065.9
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 1,809.5 1,429.6 1,698.8 1,270.3 1,096.0 1,081.3
============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 24,355.6 $ 24,096.1 $ 24,603.0 $ 23,788.2 $ 20,436.1 $ 17,743.3
============ ============ ============ ============ ============ ============
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Second Quarter 2004 (unaudited)
($ in millions)
Quarters ended 2003 2004
------------------------------------------------------ --------------------------
March June September December March June
------------ ------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 7.6 $ 7.5 $ 8.1 $ 7.0 $ 8.0 $ 7.3
Cost of Insurance (COI) 17.9 18.1 17.6 18.5 18.3 18.5
Interest Earned 1.6 1.5 1.3 1.2 1.2 1.7
Surrender Charges 1.2 1.6 1.8 2.3 1.7 1.4
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 28.3 28.7 28.7 29.0 29.2 28.9
------------ ------------ ------------ ------------ ------------ ------------
Net Death and Disability Benefits 5.0 6.0 5.0 7.3 8.3 7.5
Incurred Expenses 16.1 12.5 12.3 11.9 11.7 11.9
Interest Credited .9 1.0 1.0 .8 1.0 1.0
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 22.0 19.5 18.3 20.0 21.0 20.4
------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 6.3 9.3 10.5 9.0 8.2 8.5
============ ============ ============ ============ ============ ============
----------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 5.2 4.6 4.9 6.7 4.0 4.2
Controllable Expenses and Other 11.4 12.3 9.1 11.8 9.2 9.3
------------ ------------ ------------ ------------ ------------ ------------
Total Current Expenses 16.6 16.9 14.0 18.5 13.2 13.5
Acquisition Costs Deferred (8.0) (8.7) (7.0) (10.2) (6.6) (6.6)
Acquisition Costs Amortized 7.5 4.3 5.3 3.7 5.1 5.0
------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 16.1 12.5 12.3 12.0 11.7 11.9
============ ============ ============ ============ ============ ============
----------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 71.8 62.0 137.4 82.2 67.0 60.0
Surrenders (13.7) (11.5) (25.4) (18.8) (15.6) (15.0)
Deaths (.2) (.1) (.5) (.6) (.4) (.4)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 57.9 50.4 111.5 62.8 51.0 44.6
Performance (8.5) 110.4 52.0 98.2 56.5 10.0
Fees (8.4) (7.9) (10.0) (10.1) (8.4) (7.4)
Cost of Insurance (17.9) (16.8) (17.2) (17.9) (17.7) (18.0)
------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 23.1 136.1 136.3 133.0 81.4 29.2
Beginning Balance 1,270.3 1,293.5 1,429.6 1,565.9 1,698.9 1,780.3
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 1,293.4 1,429.6 1,565.9 1,698.9 1,780.3 1,809.5
============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 23,744.4 $ 24,096.1 $ 24,366.4 $ 24,603.0 $ 24,388.2 $ 24,355.6
============ ============ ============ ============ ============ ============
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
-------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 9.3 $ 6.9 $ 17.3 $ 11.9 $ 8.6 $ 8.4
Cost of Insurance 44.1 38.1 78.9 71.6 66.2 64.8
Interest Earned 49.9 49.3 98.3 108.4 111.9 108.7
Surrender Charges 1.8 1.3 2.5 3.9 4.0 5.5
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 105.1 95.6 196.9 195.8 190.7 187.4
------------ ------------ ------------ ------------ ------------ ------------
Net Death Benefits and Supplemental Benefits 31.7 21.5 51.2 39.5 48.3 45.4
Incurred Expenses 22.5 23.3 46.0 44.3 34.6 32.5
Interest Credited 38.2 40.5 78.0 85.7 90.4 91.3
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 92.3 85.3 175.2 169.5 173.3 169.2
------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 12.8 10.3 21.7 26.3 17.4 18.2
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 13.0 10.5 28.2 15.2 9.8 5.8
Controllable Expenses 32.7 34.6 75.0 52.6 32.1 23.7
------------ ------------ ------------ ------------ ------------ ------------
Total Current Expenses 45.7 45.0 103.2 67.8 41.9 29.5
Acquisition Cost Deferred (32.2) (30.3) (74.9) (40.2) (20.0) (8.7)
Acquisition Cost Amortized 9.0 8.6 17.7 16.7 12.7 11.7
------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 22.5 23.3 46.0 44.3 34.6 32.5
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 110.4 86.8 217.8 149.3 104.6 90.9
Surrenders (68.9) (58.2) (118.6) (107.4) (99.0) (108.2)
Deaths (7.0) (9.0) (19.4) (25.0) (18.5) (20.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 34.5 19.6 79.8 16.9 (12.9) (38.2)
Interest Credited 38.1 40.5 78.0 85.8 90.4 91.3
Fees (11.2) (9.7) (24.9) (16.7) (10.5) (6.2)
Cost of Insurance (44.1) (38.1) (78.9) (71.6) (66.2) (64.8)
------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 17.3 12.3 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 1,581.3 1,522.3 1,564.0 1,510.0 1,495.6 1,494.8
============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 13,431.3 $ 11,270.5 $ 12,830.3 $ 10,476.7 $ 9,465.6 $ 9,644.2
============ ============ ============ ============ ============ ============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Second Quarter 2004 (unaudited)
($ in millions)
PRE-TAX INCOME 2003 2004
------------------------------------------------------ --------------------------
Quarter ended March June September December March June
------------ ------------ ------------ ------------ ------------ ------------
Fees $ 4.0 $ 2.9 $ 4.6 $ 5.8 $ 4.5 $ 4.8
Cost of Insurance 18.8 19.3 19.7 21.0 21.6 22.5
Interest Earned 24.7 24.6 24.5 24.4 24.0 25.9
Surrender Charges .7 .6 .6 .6 .7 1.1
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 48.2 47.4 49.4 51.8 50.8 54.3
------------ ------------ ------------ ------------ ------------ ------------
Net Death Benefits and Supplemental Benefits 12.3 9.2 14.0 15.7 19.3 12.3
Incurred Expenses 11.0 12.3 11.6 11.1 10.4 12.1
Interest Credited 20.2 20.3 18.4 19.1 19.2 19.0
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 43.5 41.8 43.9 45.9 48.9 43.4
------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 4.7 5.6 5.5 5.9 1.9 10.9
============ ============ ============ ============ ============ ============
----------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 6.2 4.3 6.9 10.8 6.9 6.2
Controllable Expenses 16.0 18.6 17.9 22.5 17.1 15.5
------------ ------------ ------------ ------------ ------------ ------------
Total Current Expenses 22.2 22.8 24.8 33.4 24.0 21.7
Acquisition Cost Deferred (15.3) (15.0) (18.2) (26.4) (17.7) (14.5)
Acquisition Cost Amortized 4.1 4.5 5.0 4.1 4.1 4.9
------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 11.0 12.3 11.6 11.1 10.4 12.1
============ ============ ============ ============ ============ ============
----------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 45.6 41.2 56.3 74.7 54.7 55.7
Surrenders (30.9) (27.3) (27.6) (32.8) (31.9) (37.0)
Deaths (5.9) (3.1) (5.6) (4.8) (3.3) (3.7)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 8.8 10.8 23.1 37.1 19.5 15.0
Interest Credited 20.2 20.3 18.4 19.1 19.1 19.0
Fees (5.5) (4.2) (6.1) (9.1) (5.4) (5.8)
Cost of Insurance (18.8) (19.3) (19.8) (21.0) (21.6) (22.5)
------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 4.7 7.6 15.6 26.1 11.6 5.7
Beginning Balance 1,510.0 1,514.7 1,522.3 1,537.9 1,564.0 1,575.6
------------ ------------ ------------ ------------ ------------ ------------
Ending Fund Balance 1,514.7 1,522.3 1,537.9 1,564.0 1,575.6 1,581.3
============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 10,914.9 $ 11,270.5 $ 11,763.7 $ 12,830.3 $ 13,195.6 $ 13,431.3
============ ============ ============ ============ ============ ============
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Second Quarter 2004 (unaudited)
($ in millions)
LIFE INSURANCE SALES YTD June December 31,
-------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
WHOLESALER CHANNEL
Variable Universal Life $ 9.5 $ 13.3 $ 30.1 $ 62.5 $ 53.8 $ 61.1
Universal Life/Interest Sensitive 23.6 22.7 67.5 36.9 14.5 8.0
Term Life 7.9 9.3 19.2 15.1 11.4 14.6
Participating Whole Life .6 .6 4.8 9.7 22.6
------------ ------------ ------------ ------------ ------------ ------------
Life Insurance Annualized Premium (1) 41.0 45.9 117.4 119.3 89.4 106.3
============ ============ ============ ============ ============ ============
Variable Universal Life 5.1 11.2 20.1 25.1 49.7 46.2
Universal Life/Interest Sensitive 25.5 15.5 61.6 29.9 14.5 1.8
Participating Whole Life .8 2.4 5.4
------------ ------------ ------------ ------------ ------------ ------------
Life Insurance Single Premium 30.6 26.7 81.7 55.8 66.6 53.4
============ ============ ============ ============ ============ ============
Variable Universal Life 14.6 24.5 50.1 87.6 103.5 107.3
Universal Life/Interest Sensitive 49.2 38.2 129.2 66.8 29.0 9.8
Term Life 7.9 9.3 19.2 15.1 11.4 14.6
Participating Whole Life .6 .6 5.6 12.1 28.0
------------ ------------ ------------ ------------ ------------ ------------
Total Wholesaler Life Insurance Premium 71.5 72.6 199.2 175.1 156.0 159.7
============ ============ ============ ============ ============ ============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 31.9 33.5 149.5 222.5 83.7 34.9
Annuity 99.7 144.4 394.9 142.6 164.0 109.6
------------ ------------ ------------ ------------ ------------ ------------
Total Private Placement Life and Annuity Deposits 131.6 177.9 544.4 365.1 247.7 144.5
============ ============ ============ ============ ============ ============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,720.2 $ 1,091.3 $ 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
Second Quarter 2004 (unaudited)
($ in millions)
LIFE INSURANCE SALES
Quarters ended 2003 2004
----------------------------------------------- ------------------------
March June September December March June
---------- ---------- ----------- ----------- ----------- ----------
WHOLESALER CHANNEL
Variable Universal Life $ 6.3 $ 7.0 $ 5.7 $ 11.1 $ 4.5 $ 5.0
Universal Life/Interest Sensitive 11.9 10.8 14.1 30.7 13.1 10.5
Term Life 4.5 4.8 4.8 5.2 3.9 4.0
Participating Whole Life .6
---------- ----------- ---------- ----------- ----------- -----------
Life Insurance Annualized Premium (1) 23.3 22.6 24.6 47.0 21.5 19.5
========== =========== ========== =========== =========== ===========
Variable Universal Life 4.1 7.1 3.2 5.6 2.5 2.6
Universal Life/Interest Sensitive 7.2 8.3 20.3 25.8 11.1 14.4
---------- ----------- ---------- ----------- ----------- -----------
Life Insurance Single Premium 11.3 15.4 23.5 31.4 13.6 17.0
========== =========== ========== =========== =========== ===========
Variable Universal Life 10.4 14.1 8.9 16.7 7.0 7.5
Universal Life/Interest Sensitive 19.1 19.1 34.4 56.5 24.2 25.0
Term Life 4.5 4.8 4.8 5.2 3.9 4.0
Participating Whole Life .6
---------- ----------- ---------- ----------- ----------- -----------
Total Wholesaler Life Insurance Premium $ 34.6 $ 38.0 $ 48.1 $ 78.4 $ 35.1 $ 36.5
========== =========== ========== =========== =========== ===========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 19.7 13.8 90.3 25.7 17.4 14.5
Annuity 24.5 119.9 227.8 22.8 28.8 70.9
---------- ----------- ---------- ----------- ----------- -----------
Total Private Placement Life and Annuity Deposits $ 44.2 $ 133.7 $ 318.1 $ 48.5 $ 46.2 $ 85.4
========== =========== ========== =========== =========== ===========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 946.0 $ 1,091.3 $ 1,385.3 $ 1,535.5 $ 1,642.8 $ 1,720.2
========== =========== ========== =========== =========== ===========
(1) Annualized Premium represents first year premiums on an annual basis.
Total Premium represents Annualized and Single premiums.
11
THE PHOENIX COMPANIES, INC.
ANNUITIES
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
------------------------------- -----------------------------------------------------------------
2004 2003 2003 2002 2001 2000
-------------- -------------- -------------- -------------- -------------- --------------
PRE-TAX INCOME
Fees $ 31.2 $ 26.1 $ 56.9 $ 57.1 $ 64.6 $ 78.2
Interest Earned 70.6 68.2 139.4 98.3 40.3 16.3
Surrender Charges 2.5 2.9 7.4 6.6 3.9 5.1
-------------- -------------- -------------- -------------- -------------- --------------
Total Revenues 104.3 97.2 203.7 162.0 108.8 99.6
-------------- -------------- -------------- -------------- -------------- --------------
Policy Benefits and Change
in Reserves
Mortality Cost 3.3 2.8 4.3 10.9 4.3 3.0
Incurred Expenses 36.3 39.5 77.3 79.8 54.4 77.3
Interest Credited 57.9 61.7 126.2 92.0 39.2 15.1
-------------- -------------- -------------- -------------- -------------- --------------
Total Expenses 97.6 103.9 207.8 182.7 97.9 95.4
-------------- -------------- -------------- -------------- -------------- --------------
Pre-tax Income (Loss) 6.7 (6.6) (4.1) (20.7) 10.9 4.2
============== ============== ============== ============== ============== ==============
- -----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 22.9 28.3 51.1 81.3 44.0 29.2
Controllable Expenses 28.4 34.3 65.3 66.5 75.2 54.1
-------------- -------------- -------------- -------------- -------------- --------------
Total Current Expenses 51.3 62.6 116.4 147.8 119.2 83.2
Acquisition Cost Deferred (27.7) (38.7) (65.5) (102.9) (83.8) (43.0)
Acquisition Cost Amortized 12.8 15.6 26.4 34.9 19.0 37.0
-------------- -------------- -------------- -------------- -------------- --------------
Incurred Expenses $ 36.3 $ 39.5 $ 77.3 $ 79.8 $ 54.4 $ 77.3
============== ============== ============== ============== ============== ==============
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
Second Quarter 2004 (unaudited)
($ in millions)
PRE-TAX INCOME
Quarters ended 2003 2004
----------------------------------------------------------------- -------------------------------
March June September December March June
-------------- -------------- -------------- -------------- -------------- --------------
Fees $ 12.8 $ 13.3 $ 15.0 $ 15.7 $ 15.5 $ 15.7
Interest Earned 34.1 34.1 35.9 35.4 35.4 35.3
Surrender Charges 1.5 1.4 1.8 2.6 1.1 1.4
-------------- -------------- -------------- ------------- --------------- --------------
Total Revenues 48.4 48.8 52.7 53.7 52.0 52.3
-------------- -------------- -------------- ------------- --------------- --------------
Policy Benefits and Change
in Reserves
Mortality Cost 2.8 1.8 (.3) .9 2.4
Incurred Expenses 19.4 20.0 17.9 19.9 20.6 15.8
Interest Credited 31.5 30.2 32.7 31.9 27.7 30.2
-------------- -------------- -------------- ------------- --------------- --------------
Total Expenses 53.7 50.2 52.4 51.5 49.2 48.4
-------------- -------------- -------------- ------------- --------------- --------------
Pre-tax Income (Loss) (5.3) (1.4) .3 2.2 2.8 3.9
============== ============== ============== ============= =============== ==============
- -----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 16.7 11.6 11.5 11.3 12.6 10.3
Controllable Expenses 18.0 16.3 14.8 16.2 15.9 12.5
-------------- -------------- -------------- ------------- --------------- --------------
Total Current Expenses 34.7 27.9 26.3 27.5 28.5 22.8
Acquisition Cost Deferred (24.7) (14.0) (14.7) (12.2) (15.0) (12.7)
Acquisition Cost Amortized 9.4 6.1 6.3 4.6 7.1 5.7
-------------- -------------- -------------- ------------- --------------- --------------
Incurred Expenses $ 19.4 $ 20.0 $ 17.9 $ 19.9 $ 20.6 $ 15.8
============== ============== ============== ============= =============== ==============
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Second Quarter 2004 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT YTD June December 31,
------------------------------- -------------------------------------------------------
2004 2003 2003 2002 2001 2000
-------------- -------------- ----------- ------------ ------------ -----------
Annuities
Deposits $ 423.9 $ 803.1 $ 1,428.1 $ 2,258.4 $ 1,492.9 $ 687.0
Surrenders (366.7) (426.7) (854.9) (736.7) (482.3) (608.5)
------------- ------------- ------------ ------------ ------------ -----------
Net Sales 57.2 376.4 573.2 1,521.7 1,010.6 78.5
Performance and Interest Credited 229.2 371.6 865.3 (338.0) (563.1) (415.2)
Fees (29.3) (26.9) (57.7) (58.8) (67.3) (78.2)
Deaths (45.0) (35.6) (70.4) (40.6) (34.3) (24.9)
------------- ------------- ------------ ------------ ------------ -----------
Change in Funds Under Management 212.1 685.5 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 $ 7,355.9 $ 6,518.9 $ 7,143.8 $ 5,833.4 $ 4,749.1 $ 4,403.2
============= ============= ============ ============ ============ ===========
VA Funds in Guaranteed Interest Accounts (1) $ 1,974.2 $ 2,210.5 $ 2,067.4 $ 2,159.3 $ 955.0 $ 333.5
============= ============= ============ ============ ============ ===========
Fixed Annuities (1) (2) $ 1,047.9 $ 1,002.2 $ 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
Second Quarter 2004 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT 2003 2004
--------------------------------------------------------- --------------------------
Quarters ended March June September December March June
------------ ------------ ------------- ------------- ------------ -----------
Annuities
Deposits $ 425.7 $ 377.4 $ 452.1 $ 172.9 $ 215.0 $ 208.9
Surrenders (231.6) (195.1) (214.6) (213.6) (195.4) (171.3)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 194.1 182.3 237.5 (40.7) 19.6 37.6
Performance and Interest Credited 20.2 351.4 140.1 353.6 211.2 18.0
Fees (11.5) (15.4) (14.4) (16.4) (15.3) (14.0)
Deaths (22.6) (13.0) (16.7) (18.1) (23.2) (21.8)
------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 180.2 505.3 346.5 278.4 192.3 19.8
Beginning Balance 5,833.4 6,013.6 6,518.9 6,865.4 7,143.8 7,336.1
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance $ 6,013.6 $ 6,518.9 $ 6,865.4 $ 7,143.8 $ 7,336.1 $ 7,355.9
============ ============ ============ ============ ============ ============
VA Funds in Guaranteed Interest Accounts (1) $ 2,224.8 $ 2,210.5 $ 2,155.5 $ 2,067.4 $ 2,000.4 $ 1,974.2
============ ============ ============ ============ ============ ============
Fixed Annuities (1) $ 921.4 $ 1,002.2 $ 1,055.7 $ 1,056.9 $ 1,055.0 $ 1,047.9
============ ============ ============ ============ ============ ============
(1) Amounts are included in the annuities funds under management table above.
15
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
------------------------ --------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ----------- ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 332.4 $ 315.4 $ 329.3 $ 310.4 $ 252.8 $ 211.4
Universal Life 241.9 183.4 219.2 163.1 134.7 127.4
Variable Annuities 302.4 277.5 289.0 264.9 211.4 147.0
Fixed Annuities 46.8 36.8 45.2 26.3 0.4
Participating 549.1 549.9 551.0 554.6 517.4 554.8
Other 33.1 24.4 28.1 21.2 17.5 17.4
Adjustment for Unrealized Gains and Losses (40.4) (139.4) (94.1) (106.4) (10.5) (39.0)
----------- ----------- ----------- ----------- ----------- -----------
Total $ 1,465.2 $ 1,248.0 $ 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 $ 552.0 $ 898.6 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 163.2 178.7 183.0 234.9
Statutory Reserve, Net of Reinsurance 17.1 12.9 17.3 15.8
GAAP Reserve, Net of Reinsurance 7.7 7.9 7.8 8.7
===========
(1) Comparable data was not available for 2000 and 2001.
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Second Quarter 2004 (unaudited)
($ in millions)
2003 2004
-------------------------------------------------- ------------------------
Quarters ended March June September December March June
----------- ----------- ----------- ----------- ------------ ----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 310.9 $ 315.4 $ 323.5 $ 329.3 $ 330.8 $ 332.4
Universal Life 172.6 183.4 196.7 219.2 232.3 241.9
Variable Annuities 271.2 277.5 288.9 289.0 296.3 302.4
Fixed Annuities 35.3 36.8 37.2 45.2 45.9 46.8
Participating 556.4 549.9 551.2 551.0 550.3 549.1
Other 22.6 24.4 26.4 28.1 30.6 33.1
Adjustment for Unrealized Investment Gains and Losses (99.0) (139.4) (88.2) (94.1) (127.7) (40.4)
----------- ----------- ----------- ----------- ----------- -----------
Total $ 1,270.0 $ 1,248.0 $ 1,335.7 $ 1,367.7 $ 1,358.5 $ 1,465.2
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 1,188.4 $ 898.6 $ 797.0 $ 616.9 $ 564.4 $ 552.0
Death Benefit in Excess of Fund Value,
Net of Reinsurance 242.3 178.7 161.1 183.0 166.4 163.2
Statutory Reserve, Net of Reinsurance 16.1 12.9 19.2 17.3 16.5 17.1
GAAP Reserve, Net of Reinsurance 9.2 7.9 8.1 7.8 6.9 7.7
=========== =========== =========== =========== =========== ===========
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Second Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD June December 31,
-------------------------- -------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
Investment Management Fees $ 111.7 $ 93.9 $ 205.5 $ 219.2 $ 211.9 $ 270.5
Mutual Funds - Ancillary Fees * 19.2 16.8 35.5 38.7 47.1 64.3
Other Revenue 5.0 3.8 9.3 10.2 12.9 8.8
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 135.9 114.5 250.3 268.1 271.9 343.6
------------ ------------ ------------ ------------ ------------ ------------
Employment Expenses 67.4 62.5 129.6 134.9 123.3 129.4
Other Operating Expenses * 45.3 43.5 86.7 93.4 103.0 108.2
Amortization of Intangibles 16.6 16.6 33.2 32.5 49.0 31.8
Intangible Asset Impairments 66.3
------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses 129.3 122.6 249.5 327.1 275.3 269.4
------------ ------------ ------------ ------------ ------------ ------------
Management Income (Loss) 6.6 (8.1) .8 (59.0) (3.4) 74.2
Other Income (Expense) - Net .8 1.3 2.5 1.0 1.6 3.7
Minority Interest (7.2) (4.7) (12.0) (11.9) (6.9) (16.5)
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss), before income taxes .2 (11.5) (8.7) (69.9) (8.7) 61.4
Applicable Income taxes (Benefit) .4 (4.4) (3.3) (6.0) 2.6 32.0
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) $ (.2) $ (7.1) $ (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
Second Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
------------------------------------------------------ --------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ ------------
Investment Management Fees $ 46.6 $ 47.3 $ 51.5 $ 59.9 $ 57.3 $ 54.4
Mutual Funds - Ancillary Fees * 8.2 8.6 9.2 9.5 9.7 9.5
Other Revenue 1.6 2.2 2.7 2.8 2.8 2.2
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 56.4 58.1 63.4 72.2 69.8 66.1
------------ ------------ ------------ ------------ ------------ ------------
Employment Expenses 29.3 33.2 33.5 33.6 34.8 32.6
Other Operating Expenses * 22.6 20.9 22.4 20.6 23.3 22.0
Amortization of Intangibles 8.4 8.2 8.3 8.3 8.3 8.3
------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses 60.3 62.3 64.2 62.5 66.4 62.9
------------ ------------ ------------ ------------ ------------ ------------
Management Income (Loss) (3.9) (4.2) (.8) 9.7 3.4 3.2
Other Income (Expense) - Net .9 .4 .6 .6 .4 .3
Minority Interest (2.8) (1.9) (2.9) (4.4) (3.7) (3.4)
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss), before income taxes (5.8) (5.7) (3.1) 5.9 .1 .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) $ .1
============ ============ ============ ============ ============ ============
* 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
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
-------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 1,107.6 $ 1,120.0 $ 2,268.3 $ 4,421.1 $ 2,721.8 $ 3,869.4
Outflows (2,090.2) (1,301.0) (2,656.6) (2,716.4) (2,546.4) (1,619.7)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (982.6) (181.0) (388.3) 1,704.7 175.4 2,249.6
Performance 447.0 446.3 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 (535.6) 265.3 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 15,122.8 14,774.5 15,658.4 14,509.2 8,838.4 11,460.2
------------ ------------ ------------ ------------ ------------ ------------
MUTUAL FUNDS: (1)
Inflows 979.3 772.5 1,744.8 1,513.1 1,660.1 2,068.6
Outflows (1,223.9) (909.8) (2,039.8) (2,379.2) (2,449.9) (3,079.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (244.6) (137.3) (295.0) (866.1) (789.8) (1,011.3)
Performance 71.0 933.2 1,946.3 (2,406.0) (2,985.3) (1,629.9)
Other (29.7) (142.0) (182.2) (153.7) (148.9) (412.2)
Acquisitions (Divestitures)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (203.3) 653.9 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 13,532.3 12,920.4 13,735.6 12,266.5 15,692.3 19,616.3
------------ ------------ ------------ ------------ ------------ ------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 1,530.3 1,712.0 2,974.7 4,312.6 4,989.2 5,572.5
Outflows (3,534.1) (1,716.0) (3,452.2) (4,480.0) (3,766.9) (7,023.7)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (2,003.8) (4.0) (477.5) (167.4) 1,222.3 (1,451.2)
Performance 74.3 997.4 2,304.3 (2,178.9) (723.4) 631.8
Other 50.3 (1.7) (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 (1,879.2) 991.7 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 14,987.3 16,051.3 16,866.5 15,059.6 17,192.8 16,315.4
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS:
Inflows 3,617.2 3,604.5 6,987.8 10,246.8 9,371.1 11,510.4
Outflows (6,848.2) (3,926.8) (8,148.6) (9,575.6) (8,763.2) (11,723.3)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (3,231.0) (322.3) (1,160.8) 671.2 607.9 (212.9)
Performance 592.3 2,376.9 5,788.1 (7,863.1) (7,254.5) (3,857.0)
Other 20.6 (143.7) (202.1) (118.3) 123.7 (744.1)
Acquisitions (Divestitures) 7,422.0 854.5 (3,336.0)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (2,618.1) 1,910.9 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 $ 43,642.4 $ 43,746.2 $ 46,260.5 $ 41,835.3 $ 41,723.5 $ 47,391.9
============ ============ ============ ============ ============ ============
Variable Product Change in Assets Under
Management included in Mutual Funds above $ 5.9 $ 48.7 $ 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
Second Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------------- ------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ -----------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 568.7 $ 551.3 $ 525.8 $ 622.5 $ 649.8 $ 457.8
Outflows (688.4) (612.6) (559.4) 796.2 (927.3) (1,162.9)
------------ ------------ ------------ ------------ ------------ -----------
Net Flows (119.7) (61.3) (33.6) (173.7) (277.5) (705.1)
Performance (895.1) 1,341.4 239.4 851.8 315.9 131.1
------------ ------------ ------------ ------------ ------------ -----------
Change in Assets Under Management (1,014.8) 1,280.1 205.8 678.1 38.4 (574.0)
Beginning Balance 14,509.2 13,494.4 14,774.5 14,980.3 15,658.4 15,696.8
------------ ------------ ------------ ------------ ------------ -----------
Ending Balance 13,494.4 14,774.5 14,980.3 15,658.4 15,696.8 15,122.8
------------ ------------ ------------ ------------ ------------ -----------
MUTUAL FUNDS: (1)
Inflows 341.3 431.2 539.7 432.6 611.9 367.4
Outflows (452.5) (457.3) (563.7) (566.4) (573.1) (650.8)
------------ ------------ ------------ ------------ ------------ -----------
Net Flows (111.2) (26.1) (24.0) (133.8) 38.8 (283.4)
Performance (219.3) 1,152.5 248.7 764.5 347.9 (276.8)
Other (74.3) (67.7) 2.4 (42.6) (57.6) 27.9
------------ ------------ ------------ ------------ ------------ -----------
Change in Assets Under Management (404.8) 1,058.7 227.1 588.1 329.1 (532.3)
Beginning Balance 12,266.5 11,861.7 12,920.4 13,147.5 13,735.6 14,064.7
------------ ------------ ------------ ------------ ------------ -----------
Ending Balance 11,861.7 12,920.4 13,147.5 13,735.6 14,064.7 13,532.4
------------ ------------ ------------ ------------ ------------ -----------
INSTITUTIONAL PRODUCTS: (1)
Inflows 793.8 918.2 576.8 685.9 597.4 932.9
Outflows (640.9) (1,075.1) (722.2) (1,014.0) (798.5) (2,735.6)
------------ ------------ ------------ ------------ ------------ -----------
Net Flows 152.9 (156.9) (145.4) (328.1) (201.1) (1,802.7)
Performance (1) (276.6) 1,274.0 457.0 849.9 235.4 (161.2)
Other (1) (1.7) (15.5) (2.7) (6.3) 56.6
------------ ------------ ------------ ------------ ------------ -----------
Change in Assets Under Management (123.7) 1,115.4 296.1 519.1 28.0 (1,907.3)
Beginning Balance 15,059.6 14,935.9 16,051.3 16,347.4 16,866.5 16,894.5
------------ ------------ ------------ ------------ ------------ -----------
Ending Balance 14,935.9 16,051.3 16,347.4 16,866.5 16,894.5 14,987.2
------------ ------------ ------------ ------------ ------------ -----------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS:
Inflows 1,703.8 1,900.7 1,642.3 1,741.0 1,859.1 1,758.1
Outflows (1,781.8) (2,145.0) (1,845.3) (2,376.6) (2,298.9) (4,549.3)
------------ ------------ ------------ ------------ ------------ -----------
Net Flows (78.0) (244.3) (203.0) (635.6) (439.8) (2,791.2)
Performance (1) (1,391.0) 3,767.9 945.1 2,466.2 899.2 (306.9)
Other (1) (74.3) (69.4) (13.1) (45.3) (63.9) 84.5
------------ ------------ ------------ ------------ ------------ -----------
Change in Assets Under Management (1,543.3) 3,454.2 729.0 1,785.3 395.5 (3,013.6)
Beginning Balance 41,835.3 40,292.0 43,746.2 44,475.2 46,260.5 46,656.0
------------ ------------ ------------ ------------ ------------ -----------
Ending Balance $ 40,292.0 $ 43,746.2 $ 44,475.2 $ 46,260.5 $ 46,656.0 $ 43,642.4
============ ============ ============ ============ ============ ===========
Variable Product Change in Assets Under
Management included in Mutual Funds above $ (106.4) $ 155.1 $ 54.0 $ 97.7 $ 10.8 $ (4.9)
============ ============ ============ ============ ============ ===========
(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
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
------------------------ --------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ----------- ------------ ------------ ------------ -----------
SEGMENT INCOME
Operating Loss $ (2.1) $ (3.5) $ (5.8) $ (7.4) $ (7.3) $ (7.8)
Realized Gains (Losses) on Cash and
Stock Distributions (1.0) (5.2) 4.9 (4.7) 26.2 222.2
Change in Unrealized Gains on
Investments Held in Partnerships 19.1 38.4 37.1 (47.2) (178.5) 62.9
------------ ----------- ------------ ------------ ------------ -----------
Equity in Partnership Earnings,
before income taxes 16.0 29.7 36.2 (59.3) (159.6) 277.3
Applicable Income Taxes (Benefit) 5.6 10.4 12.7 (20.7) (55.9) 97.1
------------ ----------- ------------ ------------ ------------ -----------
Segment Income (Loss) 10.4 19.3 $ 23.5 $ (38.6) $ (103.7) $ 180.2
============ =========== ============ ============ ============ ===========
- ------------------------------------------------------------------------------ ----------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 20.5 21.5 31.0 42.2 47.0 97.0
Equity In Earnings of Partnerships 16.0 29.7 36.2 (59.3) (159.6) 277.3
Distributions (26.7) (8.7) (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 (14.3) (14.3) (5.0)
------------ ----------- ------------ ------------ ------------ -----------
Change in Venture Capital Investments 9.9 (24.0) (31.5) (63.9) (175.6) 129.2
Beginning Balance 196.3 227.8 227.8 291.7 467.3 338.1
------------ ----------- ------------ ------------ ------------ -----------
Ending Balance 206.2 203.8 $ 196.3 $ 227.8 $ 291.7 $ 467.3
============ =========== ============ ============ ============ ===========
- ------------------------------------------------------------------------------ ----------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 27.6 36.6 36.8 25.0 41.3
Telecom 7.0 12.6 13.3 10.2 19.1
Biotech 8.7 14.9 16.3 11.1 14.1
Healthcare 6.6 8.0 8.2 9.2 10.7
Consumer and Business Products and Services 35.0 29.6 29.6 45.9 46.6
Financial Services 22.2 28.2 28.5 28.1 30.3
Other 57.6 34.3 44.9 50.6 57.8
------------ ----------- ------------ ------------ ------------
Total Private Holdings 164.7 164.2 177.6 180.1 219.9
Public Holdings 15.4 15.6 11.3 23.0 39.8
Cash and Cash Equivalents 11.5 9.2 5.5 21.6 22.5
Other 14.6 14.8 1.9 3.1 9.5
------------ ----------- ------------ ------------ ------------
Total $ 206.2 $ 203.8 $ 196.3 $ 227.8 $ 291.7
============ =========== ============ ============ ============
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Second Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------------- ------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ -----------
SEGMENT INCOME
Operating Loss $ (.9) $ (2.6) $ (1.8) $ (.5) $ (.7) $ (1.4)
Realized Gains (Losses) on Cash and
Stock Distributions (6.2) 1.0 6.2 3.7 (3.4) 2.4
Change in Unrealized Gains on Investments
Held in Partnerships 31.0 7.4 .7 (1.9) 15.7 3.4
------------ ------------ ------------ ------------ ------------ -----------
Equity in Partnership Earnings,
before income taxes 23.9 5.8 5.1 1.3 11.6 4.4
Applicable Income Taxes (Benefit) 8.4 2.0 1.8 .5 4.1 1.6
------------ ------------ ------------ ------------ ------------ -----------
Segment Income 15.5 3.8 3.3 .8 7.5 2.9
============ ============ ============ ============ ============ ===========
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 11.6 9.9 6.0 3.5 7.9 12.6
Equity In Earnings of Partnerships 23.9 5.8 5.1 1.3 11.6 4.4
Distributions (3.0) (5.7) (12.4) (11.0) (13.6) (13.0)
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 4.0
Beginning Balance 227.8 194.3 203.8 202.5 196.3 202.2
------------ ------------ ------------ ------------ ------------ -----------
Ending Balance 194.3 203.8 202.5 196.3 202.2 206.2
============ ============ ============ ============ ============ ===========
- ------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 23.5 36.6 37.3 36.8 32.6 27.6
Telecom 7.4 12.6 12.2 13.3 13.2 7.0
Biotech 9.8 14.9 15.8 16.3 16.7 8.7
Healthcare 6.7 8.0 7.8 8.2 7.7 6.6
Consumer and Business Products and Services 32.0 29.6 27.8 29.6 35.2 35.0
Financial Services 29.7 28.2 29.2 28.5 29.1 22.2
Other 57.7 34.3 42.1 44.9 53.3 57.6
------------ ------------ ------------ ------------ ------------ -----------
Total Private Holdings 166.8 164.2 172.2 177.6 187.8 164.7
Public Holdings 11.4 15.6 18.1 11.3 12.6 15.4
Cash and Cash Equivalents 9.2 9.2 10.8 5.5 1.4 11.5
Other 6.9 14.8 1.4 1.9 0.4 14.6
------------ ------------ ------------ ------------ ------------ -----------
Total $ 194.3 $ 203.8 $ 202.5 $ 196.3 $ 202.2 $ 206.2
============ ============ ============ ============ ============ ===========
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Second Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD June December 31,
------------------------- --------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ -----------
Corporate Investment Income $ .4 $ 1.4 $ 4.3 $ 1.5 $ 7.2 $ 36.7
Investment Income from Investments
Pledged as Collateral 18.9 27.6 52.2 31.0 42.8
Interest Expense on Indebtedness (19.7) (19.7) (39.6) (31.4) (27.3) (32.7)
Interest Expense on Non-recourse
Collateralized Obligations (16.4) (25.9) (48.9) (30.5) (42.3)
Corporate Expenses (8.2) (3.0) (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 (2.5) (1.7) (3.3) (.5) (.5)
Other (1.2) (1.3) (.1) (3.9) (2.4) (23.4)
------------ ------------ ------------ ------------ ------------ -----------
Segment Loss, before income taxes (28.7) (23.9) (47.8) (40.0) (34.7) (60.8)
Applicable Income Tax Benefit (10.4) (7.8) (18.8) (29.8) (20.9) (37.2)
------------ ------------ ------------ ------------ ------------ -----------
Segment Loss $ (18.3) $ (16.1) $ (29.0) $ (10.2) $ (13.8) $ (23.6)
============ ============ ============ ============ ============ ===========
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Second Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
--------------------------------------------------- -------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ ------------
Corporate Investment Income (Loss) $ .5 $ .9 $ 1.5 $ 1.4 $ .9 $ (.4)
Investment Income from Investments Pledged
as Collateral 14.1 13.5 12.7 11.9 10.1 8.8
Interest Expense on Indebtedness (9.8) (9.9) (9.8) (10.1) (9.8) (9.9)
Interest Expense on Non-recourse Collateralized
Obligations (13.3) (12.6) (11.9) (11.1) (8.9) (7.5)
Corporate Expenses .1 (3.1) (4.8) (3.3) (3.9) (4.3)
International (1.3) 1.0 (1.1) .1 (.2)
Administrative expenses on Collateralized
Obligations (.8) (.9) (.8) (.8) (1.2) (1.3)
Other (.9) (.5) 1.6 (.3) (1.2)
------------ ------------ ------------ ------------ ------------ ------------
Segment Income, before income taxes (11.4) (12.5) (10.5) (13.4) (12.7) (16.0)
Applicable Income Tax Benefit (3.2) (4.6) (6.7) (4.7) (4.4) (6.0)
------------ ------------ ------------ ------------ ------------ ------------
Segment Loss $ (8.2) $ (7.9) $ (3.8) $ (8.7) $ (8.3) $ (10.0)
============ ============ ============ ============ ============ ============
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
-------------------------- ---------------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ------------ ------------ ------------ ------------ -----------
REVENUES
Premiums $ 470.9 $ 494.6 $ 1,042.2 $ 1,082.0 $ 1,112.7 $ 1,147.4
Insurance and Investment Product Fees 314.6 273.1 582.4 578.8 566.0 656.4
Net Investment Income 537.1 568.8 1,107.4 947.7 892.8 1,141.0
Net Realized Investment Gains (Losses) 18.1 (118.8) (100.5) (133.9) (84.9) 89.2
----------- ------------ ------------ ------------ ------------ ------------
Total Revenues 1,340.7 1,217.7 2,631.5 2,474.6 2,486.6 3,034.0
----------- ------------ ------------ ------------ ------------ ------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 686.9 699.2 1,454.0 1,436.1 1,406.7 1,409.8
Policyholder Dividends 211.2 210.7 418.8 401.8 400.1 378.0
Policy Acquisition Cost Amortization 45.7 53.9 94.1 59.2 133.0 356.0
Intangible Asset Impairments 66.3
Intangible Asset Amortization 16.6 16.6 33.2 32.5 49.4 36.9
Interest Expense on Indebtedness 19.7 19.7 39.6 31.4 27.3 32.7
Interest Expense on Non-recourse
Collateralized Obligations 16.4 25.9 48.9 30.5 42.3
Demutualization Expenses 25.9 21.8
Other Operating Expenses 292.2 270.7 553.1 601.3 647.2 626.3
----------- ------------ ------------ ------------ ------------ ------------
Total Expenses 1,288.7 1,296.7 2,641.7 2,659.1 2,731.9 2,861.5
----------- ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest 52.0 (79.0) (10.2) (184.5) (245.3) 172.5
Applicable Income Taxes (Benefit) 14.0 (36.6) (18.5) (56.2) (105.2) 62.4
----------- ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing
Operations before Minority Interest 38.0 (42.4) 8.3 (128.3) (140.1) 110.1
Minority Interest in Net Income of
Subsidiaries (7.1) (5.1) (12.4) (12.4) (7.2) (14.1)
----------- ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing Operations 30.9 (47.5) (4.1) (140.7) (147.3) 96.0
Discontinued Operations
Income (Loss) from Discontinued
Operations .1 (.8) (2.1) (1.3) (2.5) 8.2
Loss on Disposal (20.9)
----------- ------------ ------------ ------------ ------------ ------------
Income (Loss) Before Cumulative Effect of
Accounting Changes 31.0 (48.3) (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) $ 31.0 $ (48.3) $ (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)
Second Quarter 2004 (unaudited)
($ in millions)
2003 2004
----------------------------------------------------- --------------------------
Quarters ended March June September December March June
----------- ------------ ------------ ------------ ------------ ------------
REVENUES
Premiums $ 246.1 $ 248.5 $ 286.9 $ 260.7 $ 232.7 $ 238.2
Insurance and Investment Product Fees 136.1 137.0 147.9 161.5 160.4 154.2
Net Investment Income 291.1 277.7 267.2 271.3 278.2 258.9
Net Realized Investment Losses (14.1) (104.7) (3.4) 21.7 2.5 15.6
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 659.2 558.5 698.5 715.1 673.8 666.9
------------ ------------ ------------ ------------ ------------ ------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 350.8 348.4 389.0 365.8 345.6 341.3
Policyholder Dividends 116.5 94.2 99.5 108.6 105.9 105.3
Policy Acquisition Cost Amortization 28.0 25.9 22.7 17.5 22.6 23.1
Intangible Asset Amortization 8.4 8.2 8.3 8.3 8.3 8.3
Interest Expense on Indebtedness 9.8 9.9 9.8 10.1 9.8 9.9
Interest Expense on Non-recourse Collateralized
Obligations 13.3 12.6 11.9 11.1 8.9 7.5
Other Operating Expenses 130.3 140.4 135.1 147.3 145.4 146.8
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 657.1 639.6 676.3 668.7 646.5 642.2
------------ ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest 2.1 (81.1) 22.3 46.5 27.3 24.7
Applicable Income Taxes (Benefit) (2.4) (34.2) 5.8 12.3 7.3 6.7
------------ ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing Operations before
Minority Interest 4.5 (46.9) 16.5 34.2 20.0 18.0
Minority Interest in Net Income of Subsidiaries (2.8) (2.3) (2.9) (4.4) (3.7) (3.4)
------------ ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing Operations 1.7 (49.2) 13.6 29.8 16.3 14.6
Income (Loss) from Discontinued Operations (.4) (.4) (.4) (.9) .3 (.2)
------------ ------------ ------------ ------------ ------------ ------------
Net Income (Loss) $ 1.3 $ (49.6) $ 13.2 $ 28.9 $ 16.6 $ 14.4
============ ============ ============ ============ ============ ============
(1) Certain reclassifications have been made to prior periods to conform with the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING SECOND QUARTER 2004 INCOME STATEMENT
Second Quarter 2004 (unaudited)
($ in millions)
Exclusions from
Year-to-Date June 30, 2004 Operating Segments Other Segments Segment Income
------------------------- ------------------------- ----------------------
Realized
Life & Asset Venture Corporate Investment
Consolidated Annuity Management Capital & Other Losses Other
------------ ----------- ------------ ------------ ----------- ---------- ---------
REVENUES
Premiums $ 470.9 $ 470.9
Insurance and Investment Product Fees 314.6 176.0 $ 136.4 $ 6.0 $ (2.2)
Net Investment Income 537.1 492.1 .3 $ 16.0 23.0 4.1
Net Realized Investment Losses 18.1 $ 18.1
------------ ----------- ------------ ------------ ----------- ---------- ---------
Total Revenues 1,340.7 1,139.0 136.7 16.0 29.0 18.1 1.9
------------ ----------- ------------ ------------ ----------- ---------- ---------
BENEFITS AND EXPENSES
Policy Benefits and Increase
in Policy Liabilities 686.9 682.2 4.7
Policyholder Dividends 211.2 203.9 7.3
Policy Acquisition Cost Amortization 45.7 46.5 (.8)
Intangible Asset Amortization 16.6 16.6
Intangible Asset Impairments
Interest Expense on Indebtedness 19.7 19.7
Interest Expense on Non-recourse
Collateralized Obligations 16.4 16.4
Other Operating Expenses 292.2 146.8 112.8 16.9 15.7
------------ ----------- ------------ ------------ ----------- ---------- ---------
Total Expenses 1,288.7 1,079.4 129.4 .0 57.7 6.5 15.7
------------ ----------- ------------ ------------ ----------- ---------- ---------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority
Interest 52.0 59.6 7.3 16.0 (28.7) 11.6 (13.8)
Applicable Income Taxes (Benefit) 14.0 17.4 .5 5.6 (10.5) 5.9 (4.9)
------------ ----------- ------------ ------------ ----------- ---------- ---------
Income (Loss) from Continuing Operations
before Minority Interest 38.0 42.2 6.8 10.4 (18.2) 5.7 (8.9)
Minority Interest in Net Income of
Subsidiaries (7.1) (7.1)
------------ ----------- ------------ ------------ ----------- ---------- ---------
Income (Loss) from Continuing Operations $ 30.9 $ 42.2 $ (.3) $ 10.4 $ (18.2) $ 5.7 $ (8.9)
============ =========== ============ ============ =========== ========== =========
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Second Quarter 2004 (unaudited)
($ in millions, except par value)
December 31,
June --------------------------------------------------------------------
2004 2003 2002 2001 2000
-------------- -------------- -------------- -------------- ---------------
ASSETS:
Available-for-Sale Debt Securities,
at fair value $ 12,944.9 $ 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 319.3 312.0 385.9 287.7 335.5
Mortgage Loans, at unpaid
principal balances 256.4 284.1 468.8 535.8 593.4
Policy Loans, at unpaid principal
balances 2,238.7 2,227.8 2,195.9 2,172.2 2,105.2
Venture Capital Partnerships,
at equity in net assets 249.3 234.9 228.6 291.7 467.3
Affiliate Equity and Debt Securities,
at cost plus equity in undistributed
earnings 47.7 47.5 134.7 150.6 103.0
Other Investments 399.5 402.0 398.9 376.0 313.6
-------------- --------------- --------------- --------------- ---------------
16,455.8 16,781.3 15,702.3 13,588.1 12,049.9
Available-for-Sale Investments Pledged
as Collateral, at fair value 1,275.4 1,350.0 1,358.7 550.6
-------------- --------------- --------------- --------------- ---------------
Total Investments 17,731.2 18,131.3 17,061.0 14,138.7 12,049.9
Cash and Cash Equivalents 623.7 447.9 1,110.5 823.3 717.6
Deferred Policy Acquisition Costs 1,465.2 1,367.7 1,234.1 1,123.7 1,019.0
Goodwill and other intangible assets 741.1 755.0 747.7 858.6 582.6
Other General Account Assets 702.2 774.1 711.4 566.1 567.8
Separate Account Assets 6,526.4 6,083.2 4,371.2 5,025.2 5,376.6
-------------- --------------- --------------- --------------- ---------------
Total Assets 27,789.8 27,559.2 25,235.9 22,535.6 20,313.5
============== =============== =============== =============== ===============
LIABILITIES:
Policy Liabilities and Accruals 13,069.4 13,088.6 12,680.0 11,846.4 11,372.6
Policyholder Deposit Funds 3,542.2 3,642.7 3,395.7 1,515.2 678.4
Indebtedness 661.2 639.0 644.3 599.3 425.1
Stock Purchase Contracts 138.3 128.8 137.6
Other General Account Liabilities 505.6 557.1 570.8 614.1 619.9
Non-recourse Collateralized Debt Obligation
Liabilities 1,424.9 1,472.0 1,609.5 632.7
Separate Account Liabilities 6,526.4 6,083.2 4,371.2 5,020.1 5,376.6
-------------- --------------- --------------- --------------- ---------------
Total Liabilities and minority
interest 25,868.0 25,611.4 23,409.1 20,227.8 18,472.6
-------------- --------------- --------------- --------------- ---------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion
shares authorized; 94,674,000 shares
outstanding (June 30, 2004) 1.0 1.0 1.0 1.0
Additional paid in capital 2,429.5 2,428.8 2,424.4 2,413.3
Deferred Compensation on Restricted Stock Units (3.2) (3.6)
Accumulated Earnings (Deficit) (336.9) (352.7) (331.4) (43.3) 1,820.7
Treasury stock, at cost: 11,702,704 shares
(June 30, 2004) (185.5) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income (Loss) 16.9 63.7 (71.5) 2.8 20.2
-------------- --------------- --------------- --------------- ---------------
Total Stockholders' Equity 1,921.8 1,947.8 1,826.8 2,307.8 1,840.9
-------------- --------------- --------------- --------------- ---------------
Total Liabilities, Minority Interest
and Stockholders' Equity $ 27,789.8 $ 27,559.2 $ 25,235.9 $ 22,535.6 $ 20,313.5
=============== ================ ================ =============== ===============
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
Second Quarter 2004 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
06/30/2004 12/31/2003 06/30/2004 12/31/2003 06/30/2004 12/31/2003
-------------- -------------- --------------- -------------- -------------- ------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 8,402.8 $ 8,821.2 $ 6,931.1 $ 7,442.1 $ 1,471.7 $ 1,379.1
BBB 3,471.4 3,350.8 2,266.0 2,160.6 1,205.4 1,190.2
------------- -------------- -------------- -------------- -------------- ------------
Total Investment Grade 11,874.2 12,172.0 9,197.1 9,602.7 2,677.1 2,569.3
BB 802.3 764.9 683.3 635.5 118.7 129.4
B 187.2 218.9 136.6 157.8 50.6 61.1
CCC and Lower 65.1 94.6 35.2 53.7 29.9 40.9
In or Near Default 16.1 22.6 12.5 19.0 3.6 3.6
------------- -------------- -------------- -------------- -------------- ------------
Total Debt Securities $ 12,944.9 $ 13,273.0 $ 10,064.7 $ 10,468.7 $ 2,879.9 $ 2,804.3
============= ============== ============== ============== ============== ============
% Below Investment Grade 8.3% 8.3% 8.6% 8.3% 7.0% 8.4%
- -----------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON
DEBT AND EQUITY SECURITIES
As of June 30, 2004 Total Outside Closed Block Closed Block
------------------------------ ------------------------------- ------------------------------
Gains Losses Gains Losses Gains Losses
------------- -------------- -------------- -------------- -------------- ------------
Total Debt Securities $ 510.5 $ (171.4) $ 150.1 $ (86.9) $ 360.4 $ (84.5)
Equity Securities 102.4 (3.0) 94.3 (2.3) 8.1 (0.7)
------------- -------------- -------------- -------------- -------------- ------------
Total Unrealized Gains (Losses) 612.9 (174.4) 244.4 (89.2) 368.5 (85.2)
------------- -------------- -------------- -------------- -------------- ------------
Applicable Policyholder Dividend
Obligation 368.5 (85.2) 368.5 (85.2)
Applicable Deferred Acquisition
Cost (Credit) 71.7 (34.0) 71.7 (34.0)
Applicable Deferred Income Tax
(Benefit) 60.5 (19.3) 60.5 (19.3)
------------- -------------- -------------- -------------- -------------- ------------
Total Offsets to Net Unrealized
Gains (Losses) 500.7 (138.5) 132.2 (53.3) 368.5 (85.2)
------------- -------------- -------------- -------------- -------------- ------------
Net Unrealized Gains (Losses) $ 112.2 $ (35.9) $ 112.2 $ (35.9) $ - $ -
============= ============== ============== ============== ============== ============
$ 76.3 $ 76.3 $ -
============= ============== ==============
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
Second Quarter 2004 (Quarters unaudited)
($ in millions)
Quarters ended 2003 2004
---------------------------------------------------------------- -------------------------------
March June September December March June
-------------- -------------- -------------- -------------- -------------- --------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 187.1 $ 199.1 $ 184.0 $ 195.3 $ 191.7 $ 191.8
Equity Securities 3.6 .9 .9 1.5 .4 1.6
Mortgages 12.1 7.3 7.0 6.2 5.9 5.4
Policy Loans 42.6 42.6 42.2 44.3 42.2 41.7
Venture Capital 28.9 6.5 10.2 3.5 17.6 1.8
Cash & Cash Equivalents 3.1 1.4 1.4 1.1 .7 1.0
Other * 4.5 8.6 11.0 8.1 12.4 8.7
-------------- -------------- -------------- -------------- -------------- -------------
Total Cash and Invested Assets 281.9 266.4 256.7 260.0 270.9 252.0
-------------- -------------- -------------- -------------- -------------- -------------
Investment Expenses 3.0 2.7 2.6 2.0 2.8 1.9
-------------- -------------- -------------- -------------- -------------- -------------
Total Net Investment Income $ 278.9 $ 263.7 $ 254.1 $ 258.0 $ 268.1 $ 250.1
============== ============== ============== ============== ============== =============
ANNUALIZED YIELDS
Debt Securities 6.2% 6.1% 5.8% 6.1% 5.9% 5.9%
Equity Securities 1.4% 1.0% 1.0% 1.8% 0.5% 2.0%
Mortgages 9.1% 8.0% 8.6% 8.4% 8.9% 8.5%
Policy Loans 8.1% 8.0% 7.9% 8.3% 7.9% 7.7%
Venture Capital 67.9% 11.9% 18.7% 6.1% 34.0% 2.9%
Cash & Cash Equivalents 1.5% 0.9% 0.9% 0.9% 0.7% 0.9%
Other * 3.4% 7.0% 10.3% 6.1% 14.0% 7.7%
-------------- -------------- -------------- -------------- -------------- -------------
Total Cash and Invested Assets 6.7% 6.2% 6.1% 6.2% 6.5% 6.0%
-------------- -------------- -------------- -------------- -------------- -------------
Investment Expenses 0.1% 0.1% 0.1% 0.0% 0.1% 0.1%
-------------- -------------- -------------- -------------- -------------- -------------
Total Net Investment Income 6.7% 6.1% 6.0% 6.2% 6.4% 5.9%
============== ============== ============== ============== ============== =============
* 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
Second Quarter 2004 (unaudited)
($ in millions)
YTD June December 31,
------------------------------- -----------------------------------------------------------------
2004 2003 2003 2002 2001 2000
-------------- --------------- -------------- -------------- ------------- ---------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (4.0) $ (45.4) $ (76.1) $ (114.3) $ (46.1) $ (7.5)
Equity Security Impairments (1.1) (4.3) (9.8)
Affiliated Equity Securities (96.9) (96.9)
Venture Capital Partnerships
Impairments (4.6) (4.6) (5.1)
Mortgage Loan Impairments (3.2) (4.1) (.6) (6.1) (1.8)
Real Estate Impairments .0 (6.6) (6.1)
Debt and Equity Securities
Pledged as Collateral
Impairments (8.3) (5.0) (8.3) (34.9) (39.0)
Other Invested Asset Impairments (3.3) (6.7) (9.9) (22.0) (3.7)
------------- -------------- -------------- ------------- --------------- --------------
Total Impairment Losses (15.6) (162.9) (210.8) (186.7) (94.9) (15.4)
------------- -------------- -------------- ------------- --------------- --------------
Debt Security Net Transaction
Gains (Losses) 13.1 46.5 64.7 48.4 21.7 (46.9)
Equity Security Net Transaction
Gains (Losses) 12.9 5.2 47.2 2.1 (8.8) 146.8
Venture Capital Net Investment
Gains (Losses) (9.7) (9.7)
Mortgage Loan Net Transaction
Gains (Losses) .2 (.8) (1.3) .2 7.1 4.8
Real Estate Net Transaction
Gains (Losses) (.6) .1 (.2) 4.0 (2.5) 1.8
Other Invested Asset Net
Transactions Gains (Losses) 8.1 2.7 9.6 (1.9) (7.5) (1.9)
------------- -------------- -------------- ------------- --------------- --------------
Total Net Transactions Gains 33.7 44.0 110.3 52.8 10.0 104.6
------------- -------------- -------------- ------------- --------------- --------------
Net Realized Investment Gains
(Losses) 18.1 (118.9) (100.5) (133.9) (84.9) 89.2
============= ============== ============== ============= =============== ==============
Closed Block Applicable PDO
(Reduction) 7.3 (1.0) (5.9) (40.3) (15.4)
Applicable Deferred Acquisition
Costs (Credit) (.8) 1.7 (4.1) (7.2) 10.5 (10.7)
Applicable Deferred Income Tax
(Credit) 5.8 (46.0) (36.3) (20.8) (24.5) 32.9
------------- -------------- -------------- ------------- --------------- --------------
Net Realized Investment Gains
(Losses) Included in Net
Income $ 5.8 $ (73.6) $ (54.2) $ (65.6) $ (55.5) $ 67.0
============= ============== ============== ============= =============== ==============
32
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Second Quarter 2004 (unaudited)
($ in millions)
2003 2004
---------------------------------------------------------------- -------------------------------
Quarter ended March June September December March June
------------- -------------- --------------- ------------- -------------- ---------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (25.6) $ (19.8) $ (13.5) $ (20.3) $ (2.8) $ (1.2)
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) (3.6)
Other Invested Asset Impairments (5.7) (1.0) (3.3)
-------------- -------------- -------------- -------------- -------------- --------------
Total Impairment Losses (40.9) (122.0) (20.3) (27.5) (10.8) (4.8)
-------------- -------------- -------------- -------------- -------------- --------------
Debt Security Net Transaction
Gains (Losses) 41.3 5.2 11.1 7.1 7.0 6.1
Equity Security Net Transaction
Gains (Losses) (2.2) 7.4 4.9 37.1 2.2 10.7
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) (.6)
Other Invested Asset Net
Transactions Gains (Losses) (2.9) 5.6 1.7 5.2 3.9 4.2
-------------- -------------- -------------- -------------- -------------- --------------
Total Net Transactions Gains 26.8 17.2 17.1 49.2 13.3 20.4
-------------- -------------- -------------- -------------- -------------- --------------
Net Realized Investment Gains
(Losses) (14.1) (104.8) (3.2) 21.7 2.5 15.6
============== ============== ============== ============== ============== ==============
Closed Block Applicable PDO
(Reduction) 8.5 (9.5) (3.5) (1.4) .1 7.2
Applicable Deferred Acquisition
Costs (Credit) .4 1.3 (2.8) (3.0) .4 (1.2)
Applicable Deferred Income Tax
(Credit) (8.8) (37.2) 1.3 8.4 1.2 4.6
-------------- -------------- -------------- -------------- -------------- --------------
Net Realized Investment Gains
(Losses) Included in Net Income $ (14.2) $ (59.4) $ 1.8 $ 17.7 $ .8 $ 5.0
============== ============== ============== ============== ============== ==============
33