EXHIBIT 99.1
FINANCIAL SUPPLEMENT
THE PHOENIX COMPANIES, INC.
September 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
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,
PO 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
SEPTEMBER 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 THIRD 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
Third Quarter 2004 (unaudited)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
YTD September ---------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
General Account Invested Assets $ 17,249.0 $ 17,229.2 $ 16,812.8 $ 14,411.4 $ 12,594.3
Separate Account Assets 6,440.2 6,083.2 4,371.2 5,025.2 5,376.6
Total Assets 27,783.3 27,559.2 25,235.9 22,535.6 20,313.5
Indebtedness 662.7 639.0 644.3 599.3 425.1
Total Stockholders' Equity 2,023.1 1,947.8 1,826.8 2,307.8 1,840.9
Total Stockholders' Equity excluding SFAS 115 and
FIN 46-R adjustments $ 1,967.5 $ 1,925.3 $ 1,937.1 $ 2,317.5 $ 1,820.7
Debt to Total Capitalization 24.7% 24.7% 24.1% 20.0% 18.8%
Debt (Excluding Equity Units) to Total Capitalization 19.0% 18.8% 18.3%
Book Value Per Share (1) $ 21.35 $ 20.62 $ 19.43 $ 22.64 $ 24.75
Book Value Per Share, excluding SFAS 115 adjustment 20.19 19.96 20.19 22.62 24.51
Book Value Per Share, excluding SFAS 115 and
FIN 46-R adjustments $ 20.76 $ 20.39 $ 20.60 $ 22.74
Period-end Common Shares Outstanding (2) 94.8 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 9.0 10.3 15.6 (.8)
Bank Credit Facility 25.0 125.1 230.0
Other 20.1
------------ ------------ ------------ ------------ ------------
Total Indebtedness $ 662.7 $ 639.0 $ 644.3 $ 599.3 $ 425.1
============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE
INSURANCE COMPANY (3)
Capital, Surplus and Surplus Notes $ 732.0 $ 762.9 $ 861.0 $ 1,149.8 $ 1,322.8
Asset Valuation Reserve (AVR) 205.5 198.5 147.0 221.5 559.7
------------ ------------ ------------ ------------ ------------
Capital, Surplus, Surplus Notes and AVR 937.5 961.4 1,008.0 1,371.3 1,882.5
============ ============ ============ ============ ============
Policyholder Dividend Liability 420.6 408.5 403.0 395.8 383.2
Interest Maintenance Reserve (31.4) (30.2) (2.0) 11.6 (1.4)
Statutory Gain From Operations 7.1 69.7 44.5 119.9 266.4
Statutory Net Income (Loss) $ 21.6 $ 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 The Insurance Department of the State of New York. September
2004 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Third Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD September December 31,
--------------------------- ---------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
SEGMENT INCOME
Life Insurance $ 90.8 $ 77.1 $ 103.5 $ 101.0 $ 72.0 $ 19.6
Annuities 9.7 (6.3) (4.1) (20.7) 10.9 4.2
------------ ------------ ------------ ------------ ------------ ------------
Life and Annuity Segment 100.5 70.8 99.4 80.3 82.9 23.8
Asset Management Segment .2 (14.6) (8.7) (69.9) (8.7) 61.4
Venture Capital Segment 12.1 34.8 36.2 (59.3) (159.6) 277.3
Corporate and Other Segment (44.7) (34.4) (47.8) (40.0) (34.7) (60.8)
------------ ------------ ------------ ------------ ------------ ------------
Total Segment Income (Loss), before income
taxes 68.1 56.6 79.1 (88.9) (120.1) 301.7
Applicable Income Taxes (Benefit) 13.5 15.6 21.8 (28.5) (45.4) 101.3
------------ ------------ ------------ ------------ ------------ ------------
TOTAL SEGMENT INCOME (LOSS) 54.6 41.0 57.3 (60.4) (74.7) 200.4
Net Realized Investment Gains (Losses), after
income taxes 10.2 (69.1) (51.8) (39.3) (43.0) 62.0
Realized losses - investments pledged as
collateral consolidated under FIN 46-R (12.9) (2.8) (2.4) (26.3) (12.5)
Management Restructuring and Early Retirement
Costs (13.9) (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 38.0 (33.9) (4.1) (140.7) (196.1) 96.0
Income (Loss) from Discontinued Operations .1 (1.2) (2.1) (1.3) (2.5) (12.7)
------------ ------------ ------------ ------------ ------------ ------------
Income (Loss) before Cumulative Effect of
Accounting changes 38.1 (35.1) (6.2) (142.0) (198.6) 83.3
Cumulative Effect of Accounting changes (130.3) (16.6)
------------ ------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) $ 38.1 $ (35.1) $ (6.2) $ (272.3) $ (215.2) $ 83.3
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.6 94.2 94.2 97.9 104.6 104.6
------------ ------------ ------------ ------------ ------------ ------------
Total Segment Income (Loss) Per Share $ 0.58 $ 0.44 $ 0.61 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.40 $ (0.37) $ (0.07) $ (2.78) $ (2.06) $ 0.80
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares (1) (2) 100.9 94.2 96.6 97.9 104.6 104.6
------------ ------------ ------------ ------------ ------------ ------------
Total Segment Income (Loss) Per Share $ 0.54 $ 0.43 $ 0.59 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.38 $ (0.37) $ (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 nine months ended September 30, 2003 and the twelve months ended
December 31, 2003, the weighted average common shares outstanding and
dilutive potential common shares were 95.3 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
FINANCIAL HIGHLIGHTS
Third Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2003 2004
----------------------------------------- --------------------------------
Quarters ended March June September December March June September
--------- --------- ---------- ---------- ---------- ---------- ----------
SEGMENT INCOME
Life Insurance $ 23.3 $ 29.2 $ 24.7 $ 26.4 $ 23.0 $ 29.9 $ 37.8
Annuities (5.3) (1.4) .3 2.2 2.8 3.9 3.0
--------- --------- ---------- ---------- ---------- ---------- ----------
Life and Annuity Segment 18.0 27.8 25.0 28.6 25.8 33.8 40.8
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 (3.9)
Corporate and Other Segment (11.4) (12.5) (10.5) (13.4) (12.7) (16.0) (15.9)
--------- --------- ---------- ---------- ---------- ---------- ----------
Total Segment Income (Loss), before income
taxes 24.7 15.4 16.5 22.4 24.8 22.3 21.0
Applicable Income Taxes (Benefit) 7.5 3.5 4.6 6.1 7.3 5.7 .5
--------- --------- ---------- ---------- ---------- ---------- ----------
TOTAL SEGMENT INCOME 17.2 11.9 11.9 16.3 17.5 16.6 20.5
Net Realized Investment Gains (Losses),
after income taxes (12.4) (59.2) 2.5 17.3 1.7 8.6 (.2)
Realized gains (losses) - investments pledged
as collateral consolidated under FIN 46-R (1.9) (.1) (.8) .4 (1.0) (3.6) (8.3)
Management Restructuring and Early Retirement Costs (2.5) (1.8) (4.2) (1.9) (7.0) (4.9)
Other income 1.3
--------- --------- ---------- ---------- ---------- ---------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1.7 (49.2) 13.6 29.8 16.3 14.6 7.1
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 $ 7.1
========= ========= ========== ========== ========== ========== ==========
- ----------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.0 94.2 94.3 94.4 94.5 94.6 94.7
--------- --------- ---------- ---------- ---------- ---------- ----------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.13 $ 0.13 $ 0.17 $ 0.19 $ 0.18 $ 0.22
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.14 $ 0.31 $ 0.18 $ 0.15 $ 0.07
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares (1) (2) 95.0 94.2 98.3 99.8 102.0 101.3 99.2
--------- --------- ---------- ---------- ---------- ---------- ----------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.13 $ 0.12 $ 0.16 $ 0.17 $ 0.16 $ 0.21
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.13 $ 0.29 $ 0.16 $ 0.14 $ 0.07
==========
(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
Third Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD September December 31,
------------------------ ------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ---------- ----------- ---------- ---------- -----------
Variable Universal Life $ 26.3 $ 26.0 $ 35.0 $ 35.9 $ 30.2 $ 20.1
Universal Life (1) 21.5 15.8 21.7 26.3 17.4 18.2
Term Life .1 .5 3.8 4.7 1.3 (1.0)
Other Life and Annuity (2) 9.9 5.2 6.9 .8 1.7 4.6
---------- ----------- ----------- ---------- ---------- -----------
Total, Non-participating Life 57.8 47.5 67.4 67.7 50.6 41.9
Participating Life 33.0 29.6 36.1 33.3 21.4 (22.3)
---------- ----------- ----------- ---------- ---------- -----------
Total, Life Insurance 90.8 77.1 103.5 101.0 72.0 19.6
Annuities 9.7 (6.3) (4.1) (20.7) 10.9 4.2
---------- ----------- ----------- ---------- ---------- -----------
Segment Income, before income taxes 100.5 70.8 99.4 80.3 82.9 23.8
Allocated Income Taxes (3) 24.5 23.1 31.1 28.0 28.8 9.4
---------- ----------- ----------- ---------- ---------- -----------
Segment Income $ 76.0 $ 47.6 $ 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
Third Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
------------------------------------------------ -------------------------------------
Quarters ended March June September December March June September
---------- ---------- ----------- ----------- ----------- ----------- -----------
Variable Universal Life $ 6.3 $ 9.3 $ 10.5 $ 9.0 $ 8.2 $ 8.5 $ 9.7
Universal Life (1) 4.7 5.6 5.5 5.9 1.9 10.9 8.7
Term Life .4 (.8) .9 3.3 .3 (1.1) .9
Other Life and Annuity (2) 3.1 1.2 .8 1.8 3.7 3.4 2.6
---------- ---------- ----------- ----------- ----------- ----------- -----------
Total, Non-participating Life 14.5 15.3 17.7 20.0 14.1 21.7 21.9
Participating Life 8.8 13.9 7.0 6.4 8.9 8.2 15.9
---------- ---------- ----------- ----------- ----------- ----------- -----------
Total, Life Insurance 23.3 29.2 24.7 26.4 23.0 29.9 37.8
Annuities (5.3) (1.4) .3 2.2 2.8 3.9 3.0
---------- ---------- ----------- ----------- ----------- ----------- -----------
Segment Income, before income taxes 18.0 27.8 25.0 28.6 25.8 33.8 40.8
Applicable Income Taxes (3) 4.0 8.4 10.7 8.0 7.2 10.2 7.1
---------- ---------- ----------- ----------- ----------- ----------- -----------
Segment Income $ 14.0 $ 19.4 $ 14.3 $ 20.6 $ 18.6 $ 23.7 $ 33.7
========== ========== =========== =========== =========== =========== ===========
(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
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 22.1 $ 23.1 $ 30.1 $ 31.4 $ 29.5 $ 24.9
Cost of Insurance (COI) 55.5 53.6 72.1 66.4 60.0 46.2
Interest Earned 4.1 4.4 5.6 7.0 4.5 5.7
Surrender Charges 4.8 4.6 6.9 4.4 3.3 3.5
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 86.5 85.7 114.7 109.2 97.3 80.3
------------- ------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 21.9 16.0 23.3 22.9 15.3 15.5
Incurred Expenses 35.4 40.9 52.8 45.9 48.2 41.6
Interest Credited 2.9 2.9 3.6 3.7 3.6 3.1
Minority Interest .8
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 60.2 59.7 79.7 73.3 67.1 60.2
------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income 26.3 26.0 35.0 35.9 30.2 20.1
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 11.3 14.7 21.4 36.6 29.5 34.2
Controllable Expenses and Other 26.9 32.8 44.6 60.8 60.1 57.3
------------- ------------- ------------- ------------- ------------- ------------
Total Current Expenses 38.2 47.5 66.0 97.4 89.6 91.5
Acquisition Costs Deferred (18.7) (23.7) (33.9) (68.1) (65.4) (56.9)
Acquisition Costs Amortized 15.9 17.0 20.8 16.6 24.0 7.0
------------- ------------- ------------- ------------- ------------- ------------
Incurred Expenses 35.4 40.9 52.8 45.9 48.2 41.6
============= ============= ============= ============= ============= ============
- -----------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 172.1 271.2 353.4 465.7 336.1 258.1
Surrenders (46.7) (50.6) (69.4) (37.6) (31.2) (34.0)
Deaths (1.4) (.8) (1.4) (1.8) (1.7) (1.4)
------------- ------------- ------------- ------------- ------------- ------------
Net Sales 124.0 219.8 282.6 426.3 303.2 222.7
Performance 64.5 153.9 252.1 (149.8) (194.0) (128.1)
Fees (22.8) (26.3) (36.4) (35.8) (34.5) (33.0)
Cost of Insurance (53.7) (51.9) (69.8) (66.4) (60.0) (46.2)
------------- ------------- ------------- ------------- ------------- ------------
Acquisitions
Change in Funds Under Management 112.0 295.6 428.5 174.3 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 1,810.9 1,565.9 1,698.8 1,270.3 1,096.0 1,081.3
============= ============= ============= ============= ============= ============
LIFE INSURANCE IN FORCE $ 24,206.6 $ 24,366.4 $ 24,603.0 $ 23,788.2 $ 20,436.1 $ 17,743.3
============= ============= ============= ============= ============= ============
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Third Quarter 2004 (unaudited)
($ in millions)
Quarters ended 2003 2004
--------------------------------------------------- --------------------------------------
March June September December March June September
------------ ------------ ------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 7.6 $ 7.5 $ 8.1 $ 7.0 $ 8.0 $ 7.3 $ 6.8
Cost of Insurance (COI) 17.9 18.1 17.6 18.5 18.3 18.5 18.7
Interest Earned 1.6 1.5 1.3 1.2 1.2 1.7 1.2
Surrender Charges 1.2 1.6 1.8 2.3 1.7 1.4 1.8
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 28.3 28.7 28.7 29.0 29.2 28.9 28.5
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Death and Disability Benefits 5.0 6.0 5.0 7.3 8.3 7.5 6.1
Incurred Expenses 16.1 12.5 12.3 12.0 11.7 11.9 11.7
Interest Credited .9 1.0 1.0 .7 1.0 1.0 1.0
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 22.0 19.5 18.3 20.0 21.0 20.4 18.8
------------ ------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 6.3 9.3 10.5 9.0 8.2 8.5 9.7
============ ============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 5.2 4.6 4.9 6.7 4.0 4.2 3.0
Controllable Expenses and Other 11.4 12.3 9.1 11.8 9.2 9.3 8.4
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Current Expenses 16.6 16.9 14.0 18.5 13.2 13.5 11.4
Acquisition Costs Deferred (8.0) (8.7) (7.0) (10.2) (6.6) (6.6) (5.5)
Acquisition Costs Amortized 7.5 4.3 5.3 3.7 5.1 5.0 5.8
------------ ------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 16.1 12.5 12.3 12.0 11.7 11.9 11.7
============ ============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 71.8 62.0 137.4 82.2 67.0 60.0 45.1
Surrenders (13.7) (11.5) (25.4) (18.8) (15.6) (15.0) (16.1)
Deaths (.2) (.1) (.5) (.6) (.4) (.4) (.6)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Sales 57.9 50.4 111.5 62.8 51.0 44.6 28.4
Performance (8.5) 110.4 52.0 98.2 56.5 10.0 (2.0)
Fees (8.4) (7.9) (10.0) (10.1) (8.4) (7.4) (7.0)
Cost of Insurance (17.9) (16.8) (17.2) (17.9) (17.7) (18.0) (18.0)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 23.1 136.1 136.3 133.0 81.4 29.2 1.4
Beginning Balance 1,270.3 1,293.5 1,429.6 1,565.9 1,698.9 1,780.3 1,809.5
------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 1,293.4 1,429.6 1,565.9 1,698.9 1,780.3 1,809.5 1,810.9
============ ============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 23,744.4 $ 24,096.1 $ 24,366.4 $ 24,603.0 $ 24,388.2 $ 24,355.6 $ 24,206.6
============ ============ ============ ============ ============ ============ ============
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
-------------------------- -------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 14.2 $ 11.5 $ 17.3 $ 11.9 $ 8.6 $ 8.4
Cost of Insurance 66.9 57.8 78.9 71.6 66.2 64.8
Interest Earned 74.4 73.8 98.3 108.4 111.9 108.7
Surrender Charges 2.3 1.9 2.5 3.9 4.0 5.5
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 157.8 145.1 196.9 195.8 190.7 187.4
------------ ------------ ------------ ------------ ------------ ------------
Net Death Benefits and Supplemental Benefits 44.7 35.5 51.2 39.5 48.3 45.4
Incurred Expenses 35.3 34.9 46.0 44.3 34.6 32.5
Interest Credited 56.3 58.9 78.0 85.7 90.4 91.3
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 136.3 129.2 175.2 169.5 173.3 169.2
------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 21.5 15.8 21.7 26.3 17.4 18.2
============ ============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 17.0 17.4 28.2 15.2 9.8 5.8
Controllable Expenses 47.1 52.5 75.0 52.6 32.1 23.7
------------ ------------ ------------ ------------ ------------ ------------
Total Current Expenses 64.1 69.9 103.2 67.8 41.9 29.5
Acquisition Cost Deferred (44.1) (48.6) (74.9) (40.2) (20.0) (8.7)
Acquisition Cost Amortized 15.3 13.6 17.7 16.7 12.7 11.7
------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 35.3 34.9 46.0 44.3 34.6 32.5
============ ============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 166.6 143.1 217.8 149.3 104.6 90.9
Surrenders (96.6) (85.8) (118.6) (107.4) (99.0) (108.2)
Deaths (14.5) (14.6) (19.4) (25.0) (18.5) (20.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 55.5 42.7 79.8 16.9 (12.9) (38.2)
Interest Credited 56.2 58.9 78.0 85.8 90.4 91.3
Fees (16.5) (15.8) (24.9) (16.7) (10.5) (6.2)
Cost of Insurance (66.9) (57.9) (78.9) (71.6) (66.2) (64.8)
------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 28.3 27.9 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 1,592.3 1,537.9 1,564.0 1,510.0 1,495.6 1,494.8
============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 13,725.6 $ 11,763.7 $ 12,830.3 $ 10,476.7 $ 9,465.6 $ 9,644.2
============ ============ ============ ============ ============ ============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Third Quarter 2004 (unaudited)
($ in millions)
PRE-TAX INCOME 2003 2004
------------------------------------------------------ ----------------------------------------
Quarter ended March June September December March June September
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fees $ 4.0 $ 2.9 $ 4.6 $ 5.8 $ 4.5 $ 4.8 $ 5.0
Cost of Insurance 18.8 19.3 19.7 21.0 21.6 22.5 22.8
Interest Earned 24.7 24.6 24.5 24.4 24.0 25.9 24.4
Surrender Charges .7 .6 .6 .6 .7 1.1 .5
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 48.2 47.4 49.4 51.8 50.8 54.3 52.7
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Death Benefits and Supplemental
Benefits 12.3 9.2 14.0 15.7 19.3 12.3 13.1
Incurred Expenses 11.0 12.3 11.6 11.1 10.4 12.1 12.8
Interest Credited 20.2 20.3 18.4 19.1 19.2 19.0 18.1
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 43.5 41.8 43.9 45.9 48.9 43.4 44.0
------------ ------------ ------------ ------------ ------------ ------------ ------------
Pre-tax Income 4.7 5.6 5.5 5.9 1.9 10.9 8.7
============ ============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 6.2 4.3 6.9 10.8 6.9 6.2 4.0
Controllable Expenses 16.0 18.6 17.9 22.5 17.1 15.5 14.4
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Current Expenses 22.2 22.8 24.8 33.4 24.0 21.7 18.4
Acquisition Cost Deferred (15.3) (15.0) (18.2) (26.4) (17.7) (14.5) (11.9)
Acquisition Cost Amortized 4.1 4.5 5.0 4.1 4.1 4.9 6.3
------------ ------------ ------------ ------------ ------------ ------------ ------------
Incurred Expenses 11.0 12.3 11.6 11.1 10.4 12.1 12.8
============ ============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 45.6 41.2 56.3 74.7 54.7 55.7 56.2
Surrenders (30.9) (27.3) (27.6) (32.8) (31.9) (37.0) (27.7)
Deaths (5.9) (3.1) (5.6) (4.8) (3.3) (3.7) (7.5)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Sales 8.8 10.8 23.1 37.1 19.5 15.0 21.0
Interest Credited 20.2 20.3 18.4 19.1 19.1 19.0 18.1
Fees (5.5) (4.2) (6.1) (9.1) (5.4) (5.8) (5.3)
Cost of Insurance (18.8) (19.3) (19.8) (21.0) (21.6) (22.5) (22.8)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 4.7 7.6 15.6 26.1 11.6 5.7 11.0
Beginning Balance 1,510.0 1,514.7 1,522.3 1,537.9 1,564.0 1,575.6 1,581.3
------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Fund Balance 1,514.7 1,522.3 1,537.9 1,564.0 1,575.6 1,581.3 1,592.3
============ ============ ============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 10,914.9 $ 11,270.5 $ 11,763.7 $ 12,830.3 $ 13,195.6 $ 13,431.3 $ 13,725.6
============ ============ ============ ============ ============ ============ ============
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Third Quarter 2004 (unaudited)
($ in millions)
LIFE INSURANCE SALES YTD September December 31,
------------------------- ------------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ------------ ------------ ------------ ------------ ------------
WHOLESALER CHANNEL
Variable Universal Life $ 12.6 $ 19.0 $ 30.1 $ 62.5 $ 53.8 $ 61.1
Universal Life/Interest Sensitive 34.0 36.8 67.5 36.9 14.5 8.0
Term Life 11.2 14.0 19.2 15.1 11.4 14.6
Participating Whole Life .6 .6 4.8 9.7 22.6
----------- ------------ ------------ ------------ ------------ ------------
Life Insurance Annualized Premium (1) 57.8 70.4 117.4 119.3 89.4 106.3
=========== ============ ============ ============ ============ ============
Variable Universal Life 7.0 14.4 20.1 25.1 49.7 46.2
Universal Life/Interest Sensitive 38.8 35.8 61.6 29.9 14.5 1.8
Participating Whole Life .8 2.4 5.4
----------- ------------ ------------ ------------ ------------ ------------
Life Insurance Single Premium 45.8 50.2 81.7 55.8 66.6 53.4
=========== ============ ============ ============ ============ ============
Variable Universal Life 19.7 33.4 50.1 87.6 103.5 107.3
Universal Life/Interest Sensitive 72.8 72.7 129.2 66.8 29.0 9.8
Term Life 11.2 14.0 19.2 15.1 11.4 14.6
Participating Whole Life .6 .6 5.6 12.1 28.0
----------- ------------ ------------ ------------ ------------ ------------
Total Wholesaler Life Insurance Premium (2) 103.7 120.7 199.2 175.1 156.0 159.7
=========== ============ ============ ============ ============ ============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 34.9 123.8 149.5 222.5 83.7 34.9
Annuity 140.7 372.2 394.9 142.6 164.0 109.6
----------- ------------ ------------ ------------ ------------ ------------
Total Private Placement Life and Annuity Deposits 175.6 496.0 544.4 365.1 247.7 144.5
=========== ============ ============ ============ ============ ============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,788.6 $ 1,385.3 $ 1,535.5 $ 864.7 $ 494.1 $ 290.0
=========== ============ ============ ============ ============ ============
(1) Annualized Premium represents first year premiums on an annual basis.
(2) Total Premium represents Annualized and Single premiums.
10
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Third Quarter 2004 (unaudited)
($ in millions)
LIFE INSURANCE SALES
Quarters ended 2003 2004
----------------------------------------------- ----------------------------------
March June September December March June September
----------- ----------- ----------- ----------- ---------- ----------- -----------
WHOLESALER CHANNEL
Variable Universal Life $ 6.3 $ 7.0 $ 5.7 $ 11.1 $ 4.5 $ 5.0 $ 3.1
Universal Life/Interest Sensitive 11.9 10.8 14.1 30.7 13.1 10.5 10.4
Term Life 4.5 4.8 4.8 5.2 3.9 4.0 3.3
Participating Whole Life .6
----------- ----------- ----------- ----------- ---------- ----------- -----------
Life Insurance Annualized Premium (1) 23.3 22.6 24.6 47.0 21.5 19.5 16.8
=========== =========== =========== =========== ========== =========== ===========
Variable Universal Life 4.1 7.1 3.2 5.6 2.5 2.6 2.0
Universal Life/Interest Sensitive 7.2 8.3 20.3 25.8 11.1 14.4 13.3
----------- ----------- ----------- ----------- ---------- ----------- -----------
Life Insurance Single Premium 11.3 15.4 23.5 31.4 13.6 17.0 15.3
=========== =========== =========== =========== ========== =========== ===========
Variable Universal Life 10.4 14.1 8.9 16.7 7.0 7.5 5.1
Universal Life/Interest Sensitive 19.1 19.1 34.4 56.5 24.2 25.0 23.7
Term Life 4.5 4.8 4.8 5.2 3.9 4.0 3.3
Participating Whole Life .6
----------- ----------- ----------- ----------- ---------- ----------- -----------
Total Wholesaler Life Insurance Premium $ 34.6 $ 38.0 $ 48.1 $ 78.4 $ 35.1 $ 36.5 $ 32.1
=========== =========== =========== =========== ========== =========== ===========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 19.7 13.8 90.3 25.7 17.4 14.5 3.0
Annuity 24.5 119.9 227.8 22.8 28.8 70.9 41.0
----------- ----------- ----------- ----------- ---------- ----------- -----------
Total Private Placement Life and Annuity Deposits $ 44.2 $ 133.7 $ 318.1 $ 48.5 $ 46.2 $ 85.4 $ 44.0
=========== =========== =========== =========== ========== =========== ===========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 946.0 $ 1,091.3 $ 1,385.3 $ 1,535.5 $1,642.8 $ 1,720.2 $ 1,788.6
=========== =========== =========== =========== ========== =========== ===========
(1) Annualized Premium represents first year premiums on an annual basis.
(2) Total Premium represents Annualized and Single premiums.
11
THE PHOENIX COMPANIES, INC.
ANNUITIES
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
-------------------------- ---------------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 47.1 $ 41.2 $ 56.9 $ 57.1 $ 64.6 $ 78.2
Interest Earned 108.3 104.1 139.4 98.3 40.3 16.3
Surrender Charges 4.6 4.8 7.4 6.6 3.9 5.1
----------- ------------ ------------ ------------ ------------ ------------
Total Revenues 160.0 150.1 203.7 162.0 108.8 99.6
----------- ------------ ------------ ------------ ------------ ------------
Policy Benefits and Change in Reserves
Mortality Cost 7.0 4.6 4.3 10.9 4.3 3.0
Incurred Expenses 56.2 57.4 77.3 79.8 54.4 77.3
Interest Credited 87.1 94.4 126.2 92.0 39.2 15.1
----------- ------------ ------------ ------------ ------------ ------------
Total Expenses 150.3 156.4 207.8 182.7 97.9 95.4
----------- ------------ ------------ ------------ ------------ ------------
Pre-tax Income (Loss) 9.7 (6.3) (4.1) (20.7) 10.9 4.2
=========== ============ ============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 32.8 39.8 51.1 81.3 44.0 29.2
Controllable Expenses 38.3 49.1 65.3 66.5 75.2 54.1
----------- ------------ ------------ ------------ ------------ ------------
Total Current Expenses 71.1 88.9 116.4 147.8 119.2 83.2
Acquisition Cost Deferred (35.6) (53.4) (65.5) (102.9) (83.8) (43.0)
Acquisition Cost Amortized 20.7 21.9 26.4 34.9 19.0 37.0
----------- ------------ ------------ ------------ ------------ ------------
Incurred Expenses $ 56.2 $ 57.4 $ 77.3 $ 79.8 $ 54.4 $ 77.3
=========== ============ ============ ============ ============ ============
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
Third Quarter 2004 (unaudited)
($ in millions)
PRE-TAX INCOME
Quarters ended 2003 2004
------------------------------------------------- ------------------------------------
March June September December March June September
---------- ---------- ---------- ---------- ---------- ---------- ----------
Fees $ 12.8 $ 13.3 $ 15.0 $ 15.7 $ 15.5 $ 15.7 $ 15.9
Interest Earned 34.1 34.1 35.9 35.4 35.4 35.3 37.6
Surrender Charges 1.5 1.4 1.8 2.6 1.1 1.4 2.1
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Revenues 48.4 48.8 52.7 53.7 52.0 52.3 55.6
---------- ---------- ---------- ---------- ---------- ---------- ----------
Policy Benefits and Change in Reserves
Mortality Cost 2.8 1.8 (.3) .9 2.4 3.6
Incurred Expenses 19.4 20.0 17.9 19.9 20.6 15.8 19.8
Interest Credited 31.5 30.2 32.7 31.9 27.7 30.2 29.2
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses 53.7 50.2 52.4 51.5 49.2 48.4 52.6
---------- ---------- ---------- ---------- ---------- ---------- ----------
Pre-tax Income (Loss) (5.3) (1.4) .3 2.2 2.8 3.9 3.0
========== ========== ========== ========== ========== ========== ==========
- ----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 16.7 11.6 11.5 11.3 12.6 10.3 9.9
Controllable Expenses 18.0 16.3 14.8 16.2 15.9 12.5 9.9
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Current Expenses 34.7 27.9 26.3 27.5 28.5 22.8 19.8
Acquisition Cost Deferred (24.7) (14.0) (14.7) (12.2) (15.0) (12.7) (7.9)
Acquisition Cost Amortized 9.4 6.1 6.3 4.6 7.1 5.7 7.9
---------- ---------- ---------- ---------- ---------- ---------- ----------
Incurred Expenses $ 19.4 $ 20.0 $ 17.9 $ 19.9 $ 20.6 $ 15.8 $ 19.8
========== ========== ========== ========== ========== ========== ==========
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Third Quarter 2004 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT YTD September December 31,
------------------------- ---------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
Annuities
Deposits $ 564.7 $ 1,255.2 $ 1,428.1 $ 2,258.4 $ 1,492.9 $ 687.0
Surrenders (577.2) (641.3) (854.9) (736.7) (482.3) (608.5)
------------ ------------ ------------ ------------ ------------ ------------
Net Sales (12.5) 613.9 573.2 1,521.7 1,010.6 78.5
Performance and Interest Credited 234.2 511.7 865.3 (338.0) (563.1) (415.2)
Fees (44.4) (41.3) (57.7) (58.8) (67.3) (78.2)
Deaths (63.6) (52.3) (70.4) (40.6) (34.3) (24.9)
------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 113.7 1,032.0 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 $ 7,257.5 $ 6,865.4 $ 7,143.8 $ 5,833.4 $ 4,749.1 $ 4,403.2
============ ============ ============ ============ ============ ============
VA Funds in Guaranteed Interest Accounts (1) $ 1,960.5 $ 2,155.5 $ 2,067.4 $ 2,159.3 $ 955.0 $ 333.5
============ ============ ============ ============ ============ ============
Fixed Annuities (1) (2) $ 1,048.0 $ 1,055.7 $ 1,056.9 $ 737.2 $ 267.3
============ ============ ============ ============ ============
(1) Amounts are included in the annuities funds under management table above.
(2) Comparable data is not available for 2000.
14
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Third Quarter 2004 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT 2003 2004
--------------------------------------------------- --------------------------------------
Quarters ended March June September December March June September
------------ ------------ ------------ ------------ ------------ ------------ ------------
Annuities
Deposits $ 425.7 $ 377.4 $ 452.1 $ 172.9 $ 215.0 $ 208.9 $ 140.8
Surrenders (231.6) (195.1) (214.6) (213.6) (195.4) (171.3) (210.5)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Sales 194.1 182.3 237.5 (40.7) 19.6 37.6 (69.7)
Performance and Interest Credited 20.2 351.4 140.1 353.6 211.2 18.0 5.0
Fees (11.5) (15.4) (14.4) (16.4) (15.3) (14.0) (15.1)
Deaths (22.6) (13.0) (16.7) (18.1) (23.2) (21.8) (18.6)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 180.2 505.3 346.5 278.4 192.3 19.8 (98.4)
Beginning Balance 5,833.4 6,013.6 6,518.9 6,865.4 7,143.8 7,336.1 7,355.9
------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Balance $ 6,013.6 $ 6,518.9 $ 6,865.4 $ 7,143.8 $ 7,336.1 $ 7,355.9 $ 7,257.5
============ ============ ============ ============ ============ ============ ============
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 $ 1,960.5
============ ============ ============ ============ ============ ============ ============
Fixed Annuities (1) $ 921.4 $ 1,002.2 $ 1,055.7 $ 1,056.9 $ 1,055.0 $ 1,047.9 $ 1,048.0
============ ============ ============ ============ ============ ============ ============
(1) Amounts are included in the annuities funds under management table above.
15
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
--------------------------- ------------------------------------------------
2004 2003 2003 2002 2001 2000
------------- ------------- ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 332.1 $ 323.5 $ 329.3 $ 310.4 $ 252.8 $ 211.4
Universal Life 247.5 196.7 219.2 163.1 134.7 127.4
Variable Annuities 302.7 288.9 289.0 264.9 211.4 147.0
Fixed Annuities 46.4 37.2 45.2 26.3 0.4
Participating 544.5 551.2 551.0 554.6 517.4 554.8
Other 35.6 26.4 28.1 21.2 17.5 17.4
Adjustment for Unrealized Gains and Losses (80.1) (88.2) (94.1) (106.4) (10.5) (39.0)
------------- ------------- ----------- ----------- ----------- -----------
Total $ 1,428.7 $ 1,335.7 $ 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 $ 576.4 $ 797.0 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 173.8 161.1 183.0 234.9
Statutory Reserve, Net of Reinsurance 18.5 19.2 17.3 15.8
GAAP Reserve, Net of Reinsurance 10.3 8.1 7.8 8.7
=============
(1) Comparable data is not available for 2000 and 2001.
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Third Quarter 2004 (unaudited)
($ in millions)
2003 2004
---------------------------------------------------- -------------------------------------
Quarters ended March June September December March June September
------------ ------------ ------------ ------------- ----------- ------------ ------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 310.9 $ 315.4 $ 323.5 $ 329.3 $ 330.8 $ 332.4 $ 332.1
Universal Life 172.6 183.4 196.7 219.2 232.3 241.9 247.5
Variable Annuities 271.2 277.5 288.9 289.0 296.3 302.4 302.7
Fixed Annuities 35.3 36.8 37.2 45.2 45.9 46.8 46.4
Participating 556.4 549.9 551.2 551.0 550.3 549.1 544.5
Other 22.6 24.4 26.4 28.1 30.6 33.1 35.6
Adjustment for Unrealized Investment
Gains and Losses (99.0) (139.4) (88.2) (94.1) (127.7) (40.4) (80.1)
------------ ------------ ------------ ------------- ----------- ------------ ------------
Total $ 1,270.0 $ 1,248.0 $ 1,335.7 $ 1,367.7 $ 1,358.5 $ 1,465.2 $ 1,428.7
============ ============ ============ ============= =========== ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 576.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 242.3 178.7 161.1 183.0 166.4 163.2 173.8
Statutory Reserve, Net of Reinsurance 16.1 12.9 19.2 17.3 16.5 17.1 18.5
GAAP Reserve, Net of Reinsurance 9.2 7.9 8.1 7.8 6.9 7.7 10.3
============ ============ ============ ============= =========== ============ ============
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Third Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD September December 31,
--------------------------- ---------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
Investment Management Fees $ 164.3 $ 145.5 $ 205.5 $ 219.2 $ 211.9 $ 270.5
Mutual Funds - Ancillary Fees (1) 28.6 26.0 35.5 38.7 47.1 64.3
Other Revenue 6.4 6.5 9.3 10.2 12.9 8.8
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 199.3 178.0 250.3 268.1 271.9 343.6
------------ ------------ ------------ ------------ ------------ ------------
Employment Expenses 98.8 96.0 129.6 134.9 123.3 129.4
Other Operating Expenses (1) 65.8 66.0 86.7 93.4 103.0 108.2
Amortization of Intangibles 25.1 24.9 33.2 32.5 49.0 31.8
Intangible Asset Impairments 66.3
------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses 189.7 186.9 249.5 327.1 275.3 269.4
------------ ------------ ------------ ------------ ------------ ------------
Management Income (Loss) 9.6 (8.9) .8 (59.0) (3.4) 74.2
Other Income (Expense) - Net 1.1 1.9 2.5 1.0 1.6 3.7
Minority Interest (10.5) (7.6) (12.0) (11.9) (6.9) (16.5)
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss), before income taxes .2 (14.6) (8.7) (69.9) (8.7) 61.4
Applicable Income taxes (Benefit) .4 (5.6) (3.3) (6.0) 2.6 32.0
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) $ (.2) $ (9.0) $ (5.4) $ (63.9) $ (11.3) $ 29.4
============ ============ ============ ============ ============ ============
(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.
18
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Third Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
------------------------------------------------------ ---------------------------------------
Quarters ended March June September December March June September
------------ ------------ ------------ ------------ ----------- ------------ ------------
Investment Management Fees $ 46.6 $ 47.3 $ 51.5 $ 59.9 $ 57.3 $ 54.4 $ 52.6
Mutual Funds - Ancillary Fees (1) 8.2 8.6 9.2 9.5 9.7 9.5 9.4
Other Revenue 1.6 2.2 2.7 2.8 2.8 2.2 1.4
------------ ------------ ------------ ------------ ----------- ------------ ------------
Total Revenues 56.4 58.1 63.4 72.2 69.8 66.1 63.4
------------ ------------ ------------ ------------ ----------- ------------ ------------
Employment Expenses 29.3 33.2 33.5 33.6 34.8 32.6 31.3
Other Operating Expenses (1) 22.6 20.9 22.4 20.6 23.3 22.0 20.6
Amortization of Intangibles 8.4 8.2 8.3 8.3 8.3 8.3 8.5
------------ ------------ ------------ ------------ ----------- ------------ ------------
Total Operating Expenses 60.3 62.3 64.2 62.5 66.4 62.9 60.4
------------ ------------ ------------ ------------ ----------- ------------ ------------
Management Income (Loss) (3.9) (4.2) (.8) 9.7 3.4 3.2 3.0
Other Income (Expense) - Net .9 .4 .6 .6 .4 .3 .3
Minority Interest (2.8) (1.9) (2.9) (4.4) (3.7) (3.4) (3.3)
------------ ------------ ------------ ------------ ----------- ------------ ------------
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 $
============ ============ ============ ============ =========== ============ ============
(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
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
--------------------------- --------------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ----------- ------------ ------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 1,753.7 $ 1,645.8 $ 2,268.3 $ 4,421.1 $ 2,721.8 $ 3,869.4
Outflows (3,265.3) (1,860.4) (2,656.6) (2,716.4) (2,546.4) (1,619.7)
------------ ------------ ------------ ----------- ------------ ------------
Net Flows (1,511.6) (214.6) (388.3) 1,704.7 175.4 2,249.6
Performance (261.5) 685.7 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 (1,773.1) 471.1 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 13,885.3 14,980.3 15,658.4 14,509.2 8,838.4 11,460.2
------------ ------------ ------------ ----------- ------------ ------------
MUTUAL FUNDS: (1)
Inflows 1,323.6 1,312.2 1,744.8 1,513.1 1,660.1 2,068.6
Outflows (1,693.4) (1,473.5) (2,039.8) (2,379.2) (2,449.9) (3,079.9)
------------ ------------ ------------ ----------- ------------ ------------
Net Flows (369.8) (161.3) (295.0) (866.1) (789.8) (1,011.3)
Performance 48.9 1,181.9 1,946.3 (2,406.0) (2,985.3) (1,629.9)
Other (4.1) (139.6) (182.2) (153.7) (148.9) (412.2)
Acquisitions (Divestitures)
------------ ------------ ------------ ----------- ------------ ------------
Change in Assets Under Management (325.0) 881.0 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 13,410.6 13,147.5 13,735.6 12,266.5 15,692.3 19,616.3
------------ ------------ ------------ ----------- ------------ ------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 2,349.2 2,288.8 2,974.7 4,312.6 4,989.2 5,572.5
Outflows (4,462.8) (2,438.2) (3,452.2) (4,480.0) (3,766.9) (7,023.7)
------------ ------------ ------------ ----------- ------------ ------------
Net Flows (2,113.6) (149.4) (477.5) (167.4) 1,222.3 (1,451.2)
Performance 231.9 1,454.4 2,304.3 (2,178.9) (723.4) 631.8
Other 40.4 (17.2) (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 (1,841.3) 1,287.8 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 15,025.2 16,347.4 16,866.5 15,059.6 17,192.8 16,315.4
------------ ------------ ------------ ----------- ------------ ------------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL
PRODUCTS: (1)
Inflows 5,426.5 5,246.8 6,987.8 10,246.8 9,371.1 11,510.4
Outflows (9,421.5) (5,772.1) (8,148.6) (9,575.6) (8,763.2) (11,723.3)
------------ ------------ ------------ ----------- ------------ ------------
Net Flows (3,995.0) (525.3) (1,160.8) 671.2 607.9 (212.9)
Performance 19.3 3,322.0 5,788.1 (7,863.1) (7,254.5) (3,857.0)
Other 36.3 (156.8) (202.1) (118.3) 123.7 (744.1)
Acquisitions (Divestitures) 7,422.0 854.5 (3,336.0)
------------ ------------ ------------ ----------- ------------ ------------
Change in Assets Under Management (3,939.4) 2,639.9 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 $ 42,321.1 $ 44,475.2 $ 46,260.5 $ 41,835.3 $ 41,723.5 $ 47,391.9
============ ============ ============ =========== ============ ============
Variable Product Change in Assets Under
Management included in Mutual Funds above $ (33.0) $ 102.7 $ 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
Third Quarter 2004 (unaudited)
($ in millions)
2003 2004
------------------------------------------------------ -----------------------------------------
Quarters ended March June September December March June September
------------ ------------ ------------ ------------ ------------ ------------ -------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 568.7 $ 551.3 $ 525.8 $ 622.5 $ 649.8 $ 457.8 $ 646.2
Outflows (688.4) (612.6) (559.4) 796.2 (927.3) (1,162.9) (1,175.1)
------------ ------------ ------------ ------------ ------------ ------------ -------------
Net Flows (119.7) (61.3) (33.6) (173.7) (277.5) (705.1) (528.9)
Performance (895.1) 1,341.4 239.4 851.8 315.9 131.1 (708.6)
------------ ------------ ------------ ------------ ------------ ------------ -------------
Change in Assets Under Management (1,014.8) 1,280.1 205.8 678.1 38.4 (574.0) (1,237.4)
Beginning Balance 14,509.2 13,494.4 14,774.5 14,980.3 15,658.4 15,696.8 15,122.8
------------ ------------ ------------ ------------ ------------ ------------ -------------
Ending Balance 13,494.4 14,774.5 14,980.3 15,658.4 15,696.8 15,122.8 13,885.3
------------ ------------ ------------ ------------ ------------ ------------ -------------
MUTUAL FUNDS: (1)
Inflows 341.3 431.2 539.7 432.6 611.9 367.4 344.2
Outflows (452.5) (457.3) (563.7) (566.4) (573.1) (650.8) (469.5)
------------ ------------ ------------ ------------ ------------ ------------ -------------
Net Flows (111.2) (26.1) (24.0) (133.8) 38.8 (283.4) (125.3)
Performance (219.3) 1,152.5 248.7 764.5 347.9 (276.8) (22.1)
Other (74.3) (67.7) 2.4 (42.6) (57.6) 27.9 25.6
------------ ------------ ------------ ------------ ------------ ------------ -------------
Change in Assets Under Management (404.8) 1,058.7 227.1 588.1 329.1 (532.3) (121.8)
Beginning Balance 12,266.5 11,861.7 12,920.4 13,147.5 13,735.6 14,064.7 13,532.4
------------ ------------ ------------ ------------ ------------ ------------ -------------
Ending Balance 11,861.7 12,920.4 13,147.5 13,735.6 14,064.7 13,532.4 13,410.6
------------ ------------ ------------ ------------ ------------ ------------ -------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 793.8 918.2 576.8 685.9 597.4 932.9 818.9
Outflows (640.9) (1,075.1) (722.2) (1,014.0) (798.5) (2,735.6) (928.7)
------------ ------------ ------------ ------------ ------------ ------------ -------------
Net Flows 152.9 (156.9) (145.4) (328.1) (201.1) (1,802.7) (109.8)
Performance (276.6) 1,274.0 457.0 849.9 235.4 (161.2) 157.7
Other (1.7) (15.5) (2.7) (6.3) 56.6 (9.9)
------------ ------------ ------------ ------------ ------------ ------------ -------------
Change in Assets Under Management (123.7) 1,115.4 296.1 519.1 28.0 (1,907.3) 38.0
Beginning Balance 15,059.6 14,935.9 16,051.3 16,347.4 16,866.5 16,894.5 14,987.2
------------ ------------ ------------ ------------ ------------ ------------ -------------
Ending Balance 14,935.9 16,051.3 16,347.4 16,866.5 16,894.5 14,987.2 15,025.2
------------ ------------ ------------ ------------ ------------ ------------ -------------
TOTAL PRIVATE CLIENT AND
INSTITUTIONAL PRODUCTS: (1)
Inflows 1,703.8 1,900.7 1,642.3 1,741.0 1,859.1 1,758.1 1,809.3
Outflows (1,781.8) (2,145.0) (1,845.3) (2,376.6) (2,298.9) (4,549.3) (2,573.3)
------------ ------------ ------------ ------------ ------------ ------------ -------------
Net Flows (78.0) (244.3) (203.0) (635.6) (439.8) (2,791.2) (764.0)
Performance (1,391.0) 3,767.9 945.1 2,466.2 899.2 (306.9) (573.0)
Other (74.3) (69.4) (13.1) (45.3) (63.9) 84.5 15.7
------------ ------------ ------------ ------------ ------------ ------------ -------------
Change in Assets Under Management (1,543.3) 3,454.2 729.0 1,785.3 395.5 (3,013.6) (1,321.3)
Beginning Balance 41,835.3 40,292.0 43,746.2 44,475.2 46,260.5 46,656.0 43,642.4
------------ ------------ ------------ ------------ ------------ ------------ -------------
Ending Balance $ 40,292.0 $ 43,746.2 $ 44,475.2 $ 46,260.5 $ 46,656.0 $ 43,642.4 $ 42,321.1
============ ============ ============ ============ ============ ============ =============
Variable Product Change in Assets
Under Management included in
Mutual Funds above $ (106.4) $ 155.1 $ 54.0 $ 97.7 $ 10.8 $ (4.9) $ (39.0)
============ ============ ============ ============ ============ ============ =============
(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
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
------------------------- ----------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------- ------------ ------------ ------------
SEGMENT INCOME
Operating Loss $ (1.9) $ (5.3) $ (5.8) $ (7.4) $ (7.3) $ (7.8)
Realized Gains (Losses) on Cash and
Stock Distributions 4.4 1.0 4.9 (4.7) 26.2 222.2
Change in Unrealized Gains on
Investments Held in Partnerships 9.6 39.1 37.1 (47.2) (178.5) 62.9
------------ ------------ ------------ ------------ ------------ ------------
Equity in Partnership Earnings,
before income taxes 12.1 34.8 36.2 (59.3) (159.6) 277.3
Applicable Income Taxes (Benefit) 4.2 12.2 12.7 (20.7) (55.9) 97.1
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) 7.9 22.6 23.5 (38.6) (103.7) 180.2
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 29.0 27.5 31.0 42.2 47.0 97.0
Equity In Earnings of Partnerships 12.1 34.9 36.2 (59.3) (159.6) 277.3
Distributions (39.5) (21.1) (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 1.6 (25.3) (31.5) (63.9) (175.6) 129.2
Beginning Balance 196.3 227.8 227.8 291.7 467.3 338.1
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 197.9 202.5 196.3 227.8 291.7 467.3
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 24.6 37.3 36.8 25.0 41.3
Telecom 6.8 12.2 13.3 10.2 19.1
Biotech 7.9 15.8 16.3 11.1 14.1
Healthcare 6.3 7.8 8.2 9.2 10.7
Consumer and Business Products and Services 32.1 27.8 29.6 45.9 46.6
Financial Services 20.9 29.2 28.5 28.1 30.3
Other 59.1 42.1 44.9 50.6 57.8
------------ ------------ ------------ ------------ ------------
Total Private Holdings 157.7 172.2 177.6 180.1 219.9
Public Holdings 14.8 18.1 11.3 23.0 39.8
Cash and Cash Equivalents 8.6 10.8 5.5 21.6 22.5
Other 16.8 1.4 1.9 3.1 9.5
------------ ------------ ------------ ------------ ------------
Total $ 197.9 $ 202.5 $ 196.3 $ 227.8 $ 291.7
============ ============ ============ ============ ============
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Third Quarter 2004 (unaudited)
($ in millions)
2003 2004
------------------------------------------- --------------------------------
Quarters ended March June September December March June September
---------- ---------- ---------- ---------- ---------- ---------- ----------
SEGMENT INCOME
Operating Loss $ (.9) $ (2.6) $ (1.8) $ (.5) $ (.7) $ (1.4) $ .2
Realized Gains (Losses) on Cash and
Stock Distributions (6.2) 1.0 6.2 3.7 (3.4) 2.4 5.4
Change in Unrealized Gains on
Investments Held in Partnerships 31.0 7.4 .7 (1.9) 15.7 3.4 (9.5)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Equity in Partnership Earnings,
before income taxes 23.9 5.8 5.1 1.3 11.6 4.4 (3.9)
Applicable Income Taxes (Benefit) 8.4 2.0 1.8 .5 4.1 1.6 (1.4)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Segment Income (Loss) 15.5 3.8 3.3 .8 7.5 2.9 (2.5)
========== ========== ========== ========== ========== ========== ==========
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 11.6 9.9 6.0 3.5 7.9 12.6 8.5
Equity In Earnings of Partnerships 23.9 5.8 5.1 1.3 11.6 4.4 (3.9)
Distributions (3.0) (5.7) (12.4) (11.0) (13.6) (13.0) (12.9)
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 (8.3)
Beginning Balance 227.8 194.3 203.8 202.5 196.3 202.2 206.2
---------- ---------- ---------- ---------- ---------- ---------- ----------
Ending Balance 194.3 203.8 202.5 196.3 202.2 206.2 197.9
========== ========== ========== ========== ========== ========== ==========
- ------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 23.5 36.6 37.3 36.8 32.6 27.6 24.6
Telecom 7.4 12.6 12.2 13.3 13.2 7.0 6.8
Biotech 9.8 14.9 15.8 16.3 16.7 8.7 7.9
Healthcare 6.7 8.0 7.8 8.2 7.7 6.6 6.3
Consumer and Business Products and Services 32.0 29.6 27.8 29.6 35.2 35.0 32.1
Financial Services 29.7 28.2 29.2 28.5 29.1 22.2 20.9
Other 57.7 34.3 42.1 44.9 53.3 57.6 59.1
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Private Holdings 166.8 164.2 172.2 177.6 187.8 164.7 157.7
Public Holdings 11.4 15.6 18.1 11.3 12.6 15.4 14.8
Cash and Cash Equivalents 9.2 9.2 10.8 5.5 1.4 11.5 8.6
Other 6.9 14.8 1.4 1.9 0.4 14.6 16.8
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total $ 194.3 $ 203.8 $ 202.5 $ 196.3 $ 202.2 $ 206.2 $ 197.9
========== ========== ========== ========== ========== ========== ==========
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Third Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME YTD September December 31,
------------------------- ----------------------------------------------------
2004 2003 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
Corporate Investment Income $ .4 $ 2.9 $ 4.3 $ 1.5 $ 7.2 $ 36.7
Interest Expense on Indebtedness (29.8) (29.5) (39.6) (31.4) (27.3) (32.7)
Corporate Expenses (13.3) (7.8) (11.0) (10.4) (19.9) (53.5)
International (.1) (.3) (1.4) 4.2 7.7 12.1
Other (1.9) .3 (.1) (3.9) (2.4) (23.4)
------------ ------------ ------------ ------------ ------------ ------------
Segment Loss, before income taxes (44.7) (34.4) (47.8) (40.0) (34.7) (60.8)
Applicable Income Tax Benefit (15.6) (14.5) (18.8) (29.8) (20.9) (37.2)
------------ ------------ ------------ ------------ ------------ ------------
Segment Loss $ (29.1) $ (19.9) $ (29.0) $ (10.2) $ (13.8) $ (23.6)
============ ============ ============ ============ ============ ============
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Third Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
------------------------------------------- --------------------------------
Quarters ended March June September December March June September
---------- ---------- ---------- ---------- ---------- ---------- ----------
Corporate Investment Income (Loss) $ .5 $ .9 $ 1.5 $ 1.4 $ .9 $ (.4) $
Interest Expense on Indebtedness (9.8) (9.9) (9.8) (10.1) (9.8) (9.9) (10.1)
Corporate Expenses .1 (3.1) (4.8) (3.3) (3.9) (4.3) (5.1)
International (1.3) 1.0 (1.1) .1 (.2)
Other (.9) (.4) 1.6 (.3) (1.2) (.7)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Segment Income, before income taxes (11.4) (12.5) (10.5) (13.4) (12.7) (16.0) (15.9)
Applicable Income Tax Benefit (3.2) (4.6) (6.7) (4.7) (4.4) (6.0) (5.2)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Segment Loss $ (8.2) $ (7.9) $ (3.8) $ (8.7) $ (8.3) $ (10.0) $ (10.7)
========== ========== ========== ========== ========== ========== ==========
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
------------------------- -----------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ----------- ----------- ----------- ----------- -----------
REVENUES
Premiums $ 739.7 $ 781.5 $ 1,042.2 $ 1,082.0 $ 1,112.7 $ 1,147.4
Insurance and Investment Product Fees 450.4 421.0 582.4 578.8 566.0 656.4
Net Investment Income 802.5 836.0 1,107.4 947.7 892.8 1,141.0
Net Realized Investment Gains (Losses) 9.0 (122.2) (100.5) (133.9) (84.9) 89.2
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 2,001.6 1,916.3 2,631.5 2,474.6 2,486.6 3,034.0
----------- ----------- ----------- ----------- ----------- -----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 1,060.2 1,088.2 1,454.0 1,436.1 1,406.7 1,409.8
Policyholder Dividends 309.8 310.2 418.8 401.8 400.1 378.0
Policy Acquisition Cost Amortization 76.3 76.6 94.1 59.2 133.0 356.0
Intangible Asset Impairments 66.3
Intangible Asset Amortization 25.1 24.9 33.2 32.5 49.4 36.9
Interest Expense on Indebtedness 29.8 29.5 39.6 31.4 27.3 32.7
Interest Expense on Non-recourse
Collateralized Obligations 25.5 37.8 48.9 30.5 42.3
Demutualization Expenses 25.9 21.8
Other Operating Expenses 412.7 405.8 553.1 601.3 647.2 626.3
----------- ----------- ----------- ----------- ----------- -----------
Total Expenses 1,939.4 1,973.0 2,641.7 2,659.1 2,731.9 2,861.5
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest 62.2 (56.7) (10.2) (184.5) (245.3) 172.5
Applicable Income Taxes (Benefit) 13.7 (30.8) (18.5) (56.2) (105.2) 62.4
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations
before Minority Interest 48.5 (25.9) 8.3 (128.3) (140.1) 110.1
Minority Interest in Net Income of Subsidiaries (10.5) (8.0) (12.4) (12.4) (7.2) (14.1)
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations 38.0 (33.9) (4.1) (140.7) (147.3) 96.0
Discontinued Operations
Income (Loss) from Discontinued Operations .1 (1.2) (2.1) (1.3) (2.5) 8.2
Loss on Disposal (20.9)
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) Before Cumulative Effect of
Accounting Changes 38.1 (35.1) (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) $ 38.1 $ (35.1) $ (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)
Third Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------- ---------------------------------
Quarters ended March June September December March June September
--------- --------- --------- --------- --------- --------- ---------
REVENUES
Premiums $ 246.1 $ 248.5 $ 286.9 $ 260.7 $ 232.7 $ 238.2 $ 268.8
Insurance and Investment Product Fees 136.1 137.0 147.9 161.5 160.4 154.2 135.8
Net Investment Income 291.1 277.7 267.2 271.3 278.2 258.9 265.4
Net Realized Investment Gains (Losses) (14.1) (104.7) (3.4) 21.7 2.5 15.6 (9.1)
--------- --------- --------- --------- --------- --------- ---------
Total Revenues 659.2 558.5 698.6 715.1 673.8 666.9 660.9
--------- --------- --------- --------- --------- --------- ---------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 350.8 348.4 389.0 365.8 345.6 341.3 373.3
Policyholder Dividends 116.5 94.2 99.5 108.6 105.9 105.3 98.6
Policy Acquisition Cost Amortization 28.0 25.9 22.7 17.5 22.6 23.1 30.6
Intangible Asset Amortization 8.4 8.2 8.3 8.3 8.3 8.3 8.5
Interest Expense on Indebtedness 9.8 9.9 9.8 10.1 9.8 9.9 10.1
Interest Expense on Non-recourse
Collateralized Obligations 13.3 12.6 11.9 11.1 8.9 7.5 9.1
Other Operating Expenses 130.3 140.4 135.1 147.3 145.4 146.8 120.5
--------- --------- --------- --------- --------- --------- ---------
Total Expenses 657.1 639.6 676.3 668.7 646.5 642.2 650.7
--------- --------- --------- --------- --------- --------- ---------
Income (Loss) from Continuing Operations
Before Income Taxes and Minority Interest 2.1 (81.1) 22.3 46.5 27.3 24.7 10.2
Applicable Income Taxes (Benefit) (2.4) (34.2) 5.8 12.3 7.3 6.7 (.3)
--------- --------- --------- --------- --------- --------- ---------
Income (Loss) from Continuing Operations before
Minority Interest 4.5 (46.9) 16.5 34.2 20.0 18.0 10.5
Minority Interest in Net Income of Subsidiaries (2.8) (2.3) (2.9) (4.4) (3.7) (3.4) (3.4)
--------- --------- --------- --------- --------- --------- ---------
Income (Loss) from Continuing Operations 1.7 (49.2) 13.6 29.8 16.3 14.6 7.1
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 $ 7.1
========= ========= ========= ========= ========= ========= =========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING THIRD QUARTER 2004 INCOME STATEMENT
Third Quarter 2004 (unaudited)
($ in millions)
Exclusions from
Year-to-Date September 30, 2004 Operating Segments Other Segments Segment Income
---------------------- -------------------- -----------------------------------
Realized
Life & Asset Venture Corporate Investment Intra-Segment
Consolidated Annuity Management Capital & Other Losses Other Eliminations
------------ ---------- ---------- --------- --------- ---------- --------- ------------
REVENUES
Premiums $ 739.7 $ 739.7
Insurance and Investment
Product Fees 450.4 249.4 $ 199.9 $ 6.0 $ (4.9)
Net Investment Income 802.5 744.7 .5 $ 12.1 36.5 8.7
Net Realized Investment Losses 9.0 $ 9.0
------------ ---------- ---------- --------- --------- ---------- --------- ------------
Total Revenues 2,001.6 1,733.8 200.4 12.1 42.5 9.0 3.8
------------ ---------- ---------- --------- --------- ---------- --------- ------------
BENEFITS AND EXPENSES
Policy Benefits and Increase
in Policy Liabilities 1,060.2 1,052.8 7.4
Policyholder Dividends 309.8 305.1 4.7
Policy Acquisition Cost
Amortization 76.3 77.1 (.8)
Intangible Asset Amortization 25.1 25.1
Intangible Asset Impairments
Interest Expense on Indebtedness 29.8 29.8
Interest Expense on Non-recourse
Collateralized Obligations 25.5 25.5
Other Operating Expenses 412.7 198.3 164.6 24.5 $ 21.5 3.8
------------ ---------- ---------- --------- --------- ---------- --------- ------------
Total Expenses 1,939.4 1,633.3 189.7 87.2 3.9 21.5 3.8
------------ ---------- ---------- --------- --------- ---------- --------- ------------
Income (Loss) from Continuing
Operations Before Income Taxes
and Minority Interest 62.2 100.5 10.7 12.1 (44.7) 5.1 (21.5)
Applicable Income Taxes (Benefit) 13.7 24.5 .4 4.2 (15.6) 7.8 (7.6)
------------ ---------- ---------- --------- --------- ---------- --------- ------------
Income (Loss) from Continuing
Operations before Minority
Interest 48.5 76.0 10.3 7.9 (29.1) (2.7) (13.9)
Minority Interest in Net Income
of Subsidiaries (10.5) (10.5)
------------ ---------- ---------- --------- --------- ---------- --------- ------------
Income (Loss) from Continuing
Operations $ 38.0 $ 76.0 $ (.2) $ 7.9 $ (29.1) $ (2.7) $ (13.9) $
============ ========== ========== ========= ========= ========== ========= ============
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Third Quarter 2004 (unaudited)
($ in millions, except par value)
December 31,
September ---------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
ASSETS:
Available-for-Sale Debt Securities, at fair value $ 13,338.5 $ 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 309.2 312.0 385.9 287.7 335.5
Mortgage Loans, at unpaid principal balances 223.7 284.1 468.8 535.8 593.4
Policy Loans, at unpaid principal balances 2,236.6 2,227.8 2,195.9 2,172.2 2,105.2
Venture Capital Partnerships, at equity in net assets 244.1 234.9 228.6 291.7 467.3
Affiliate Equity and Debt Securities, at cost plus
equity in undistributed earnings 53.3 47.5 134.7 150.6 103.0
Other Investments 377.7 402.0 398.9 376.0 313.6
------------ ------------ ------------ ------------ ------------
16,783.1 16,781.3 15,702.3 13,588.1 12,049.9
Available-for-Sale Investments Pledged as
Collateral, at fair value 1,283.7 1,350.0 1,358.7 550.6
------------ ------------ ------------ ------------ ------------
Total Investments 18,066.8 18,131.3 17,061.0 14,138.7 12,049.9
Cash and Cash Equivalents 465.9 447.9 1,110.5 823.3 717.6
Deferred Policy Acquisition Costs 1,428.7 1,367.7 1,234.1 1,123.7 1,019.0
Goodwill and other intangible assets 732.6 755.0 747.7 858.6 582.6
Other General Account Assets 649.1 774.1 711.4 566.1 567.8
Separate Account Assets 6,440.2 6,083.2 4,371.2 5,025.2 5,376.6
------------ ------------ ------------ ------------ ------------
Total Assets 27,783.3 27,559.2 25,235.9 22,535.6 20,313.5
============ ============ ============ ============ ============
LIABILITIES:
Policy Liabilities and Accruals 13,163.3 13,088.6 12,680.0 11,846.4 11,372.6
Policyholder Deposit Funds 3,531.3 3,642.7 3,395.7 1,515.2 678.4
Indebtedness 662.7 639.0 644.3 599.3 425.1
Stock Purchase Contracts 131.1 128.8 137.6
Other General Account Liabilities 476.1 557.1 570.8 614.1 619.9
Non-recourse Collateralized Debt
Obligation Liabilities 1,355.5 1,472.0 1,609.5 632.7
Separate Account Liabilities 6,440.2 6,083.2 4,371.2 5,020.1 5,376.6
------------ ------------ ------------ ------------ ------------
Total Liabilities and minority interest 25,760.2 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 2,428.9 2,428.8 2,424.4 2,413.3
Deferred Compensation on Restricted Stock Units (2.7) (3.6)
Accumulated Earnings (Deficit) (329.8) (352.7) (331.4) (43.3) 1,820.7
Treasury stock, at cost: 11,702,704 shares
(June 30, 2004) (184.0) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income (Loss) 109.7 63.7 (71.5) 2.8 20.2
------------ ------------ ------------ ------------ ------------
Total Stockholders' Equity 2,023.1 1,947.8 1,826.8 2,307.8 1,840.9
------------ ------------ ------------ ------------ ------------
Total Liabilities, Minority Interest and
Stockholders' Equity $ 27,783.3 $ 27,559.2 $ 25,235.9 $ 22,535.6 $ 20,313.5
============ ============ ============ ============ ============
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
Third Quarter 2004 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
09/30/2004 12/31/2003 09/30/2004 12/31/2003 09/30/2004 12/31/2003
-------------- -------------- -------------- -------------- -------------- ------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 8,524.9 $ 8,821.2 $ 7,067.7 $ 7,442.1 $ 1,457.2 $ 1,379.1
BBB 3,715.1 3,350.8 2,384.8 2,160.6 1,330.3 1,190.2
-------------- -------------- -------------- -------------- -------------- ------------
Total Investment Grade 12,240.0 12,172.0 9,452.5 9,602.7 2,787.5 2,569.3
BB 845.0 764.9 738.7 635.5 106.3 129.4
B 158.3 218.9 124.0 157.8 34.3 61.1
CCC and Lower 82.6 94.6 54.8 53.7 27.8 40.9
In or Near Default 12.6 22.6 9.0 19.0 3.6 3.6
-------------- -------------- -------------- -------------- -------------- ------------
Total Debt Securities $ 13,338.5 $ 13,273.0 $ 10,379.0 $ 10,468.7 $ 2,959.5 $ 2,804.3
============== ============== ============== ============== ============== ============
% Below Investment Grade 8.2% 8.3% 8.9% 8.3% 5.8% 8.4%
- ------------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON
DEBT AND EQUITY SECURITIES
As of September 30, 2004 Total Outside Closed Block Closed Block
------------------------------- ------------------------------- -----------------------------
Gains Losses Gains Losses Gains Losses
-------------- -------------- -------------- -------------- -------------- ------------
Total Debt Securities $ 694.0 $ (81.3) $ 212.4 $ (49.5) $ 481.6 $ (31.8)
Equity Securities 103.8 (6.1) 95.8 (3.6) 8.0 (2.5)
-------------- -------------- -------------- -------------- -------------- ------------
Total Unrealized Gains (Losses) 797.8 (87.4) 308.2 (53.1) 489.6 (34.3)
-------------- -------------- -------------- -------------- -------------- ------------
Applicable Policyholder Dividend
Obligation 489.6 (34.3) 489.6 (34.3)
Applicable Deferred Acquisition
Cost (Credit) 96.9 (19.4) 96.9 (19.4)
Applicable Deferred Income Tax
(Benefit) 74.0 (11.8) 74.0 (11.8)
-------------- -------------- -------------- -------------- -------------- ------------
Total Offsets to Net Unrealized
Gains (Losses) 660.5 (65.5) 170.9 (31.2) 489.6 (34.3)
-------------- -------------- -------------- -------------- -------------- ------------
Net Unrealized Gains (Losses) $ 137.3 $ (21.9) $ 137.3 $ (21.9) $ - $ -
============== ============== ============== ============== ============== ============
$ 115.4 $ 115.4 $ -
============== ============== ==============
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
Third Quarter 2004 (Quarters unaudited)
($ in millions)
Quarters ended 2003 2004
--------------------------------------------- ---------------------------------
Quarters ended March June September December March June September
--------- --------- --------- --------- --------- --------- ---------
GAAP NET INVESTMENT INCOME
Debt Securities $ 187.1 $ 199.1 $ 184.0 $ 195.3 $ 191.7 $ 191.8 $ 192.4
Equity Securities 3.6 .9 .9 1.5 .4 1.6 1.1
Mortgages 12.1 7.3 7.0 6.2 5.9 5.4 5.9
Policy Loans 42.6 42.6 42.2 44.3 42.2 41.7 42.3
Venture Capital 28.9 6.5 10.2 3.5 17.6 1.8 (3.7)
Cash & Cash Equivalents 3.1 1.4 1.4 1.1 .7 1.0 1.4
Other (2) 4.5 8.6 11.0 8.1 12.4 8.7 17.3
--------- --------- --------- --------- --------- --------- ---------
Total Cash and Invested Assets 281.9 266.4 256.7 260.0 270.9 252.0 256.7
--------- --------- --------- --------- --------- --------- ---------
Investment Expenses 3.0 2.7 2.6 2.0 2.8 1.9 2.4
--------- --------- --------- --------- --------- --------- ---------
Total Net Investment Income $ 278.9 $ 263.7 $ 254.1 $ 258.0 $ 268.1 $ 250.1 $ 254.3
========= ========= ========= ========= ========= ========= =========
ANNUALIZED YIELDS
Debt Securities 6.2% 6.1% 5.8% 6.1% 5.9% 5.9% 6.0%
Equity Securities 1.4% 1.0% 1.0% 1.8% 0.5% 2.0% 1.4%
Mortgages 9.1% 8.0% 8.6% 8.4% 8.9% 8.5% 10.3%
Policy Loans 8.1% 8.0% 7.9% 8.3% 7.9% 7.7% 7.9%
Venture Capital 67.9% 11.9% 18.7% 6.1% 34.0% 2.9% -5.8%
Cash & Cash Equivalents 1.5% 0.9% 0.9% 0.9% 0.7% 0.9% 1.0%
Other (2) 3.4% 7.0% 10.3% 6.1% 14.0% 7.7% 17.1%
--------- --------- --------- --------- --------- --------- ---------
Total Cash and Invested Assets 6.7% 6.2% 6.1% 6.2% 6.5% 6.0% 6.2%
--------- --------- --------- --------- --------- --------- ---------
Investment Expenses 0.1% 0.1% 0.1% 0.0% 0.1% 0.1% 0.2%
--------- --------- --------- --------- --------- --------- ---------
Total Net Investment Income 6.7% 6.1% 6.0% 6.2% 6.4% 5.9% 6.0%
========= ========= ========= ========= ========= ========= =========
(1) Excludes investment income on debt and equity securities pledged as
collateral.
(2) Includes real estate, affiliates, and other invested assets.
31
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Third Quarter 2004 (unaudited)
($ in millions)
YTD September December 31,
------------------------- -----------------------------------------------------
2004 2003 2003 2002 2001 2000
----------- ----------- ----------- ----------- ----------- -----------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (8.6) $ (58.9) $ (76.1) $ (114.3) $ (46.1) $ (7.5)
Equity Security Impairments (4.3) (4.3) (9.8)
Affiliated Equity Securities (96.9) (96.9)
Venture Capital Partnerships
Impairments (4.6) (4.6) (5.1)
Mortgage Loan Impairments (4.1) (4.1) (.6) (6.1) (1.8)
Real Estate Impairments (.4) (6.6) (6.1)
Debt and Equity Securities
Pledged as Collateral
Impairments (16.6) (7.3) (8.3) (34.9) (39.0)
Other Invested Asset Impairments (3.3) (6.7) (9.9) (22.0) (3.7)
----------- ----------- ----------- ----------- ----------- -----------
Total Impairment Losses (28.5) (183.2) (210.8) (186.7) (94.9) (15.4)
----------- ----------- ----------- ----------- ----------- -----------
Debt Security Net Transaction
Gains (Losses) 16.8 57.6 64.7 48.4 21.7 (46.9)
Equity Security Net Transaction
Gains (Losses) 13.1 10.1 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 (1.4) (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) 8.0 4.4 9.6 (1.9) (7.5) (1.9)
----------- ----------- ----------- ----------- ----------- -----------
Total Net Transactions Gains 37.5 61.1 110.3 52.8 10.0 104.6
----------- ----------- ----------- ----------- ----------- -----------
Net Realized Investment Gains
(Losses) 9.0 (14.2) (100.5) (133.9) (84.9) 89.2
=========== =========== =========== =========== =========== ===========
Closed Block Applicable PDO
(Reduction) 4.8 (4.5) (5.9) (40.3) (15.4)
Applicable Deferred Acquisition
Costs (Credit) (.9) (1.1) (4.1) (7.2) 10.5 (10.7)
Applicable Deferred Income Tax
(Credit) 7.8 (44.7) (36.3) (20.8) (24.5) 32.9
----------- ----------- ----------- ----------- ----------- -----------
Net Realized Investment Gains
(Losses) Included in Net
Income $ (2.7) $ 36.1 $ (54.2) $ (65.6) $ (55.5) $ 67.0
=========== =========== =========== =========== =========== ===========
32
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Third Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------- ---------------------------------
Quarters ended March June September December March June September
--------- --------- --------- --------- --------- --------- ---------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (25.6) $ (19.8) $ (13.5) $ (20.3) $ (2.8) $ (1.2) $ (4.6)
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) (8.3)
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) (12.9)
--------- --------- --------- --------- --------- --------- ---------
Debt Security Net Transaction
Gains 41.3 5.2 11.1 7.1 7.0 6.1 3.7
Equity Security Net Transaction
Gains (Losses) (2.2) 7.4 4.9 37.1 2.2 10.7 .2
Venture Capital Net Investment
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 (.1)
--------- --------- --------- --------- --------- --------- ---------
Total Net Transactions Gains 26.8 17.2 17.1 49.2 13.3 20.4 3.8
--------- --------- --------- --------- --------- --------- ---------
Net Realized Investment Gains
(Losses) (14.1) (104.8) (3.2) 21.7 2.5 15.6 (9.1)
========= ========= ========= ========= ========= ========= =========
Closed Block Applicable PDO
(Reduction) 8.5 (9.5) (3.5) (1.4) .1 7.2 (2.5)
Applicable Deferred Acquisition
Costs (Credit) .4 1.3 (2.8) (3.0) .4 (1.2) (.1)
Applicable Deferred Income Tax
(Credit) (8.8) (37.2) 1.3 8.4 1.2 4.6 2.0
--------- --------- --------- --------- --------- --------- ---------
Net Realized Investment Gains
(Losses) Included in Net Income $ (14.2) $ (59.4) $ 1.8 $ 17.7 $ .8 $ 5.0 $ (8.5)
========= ========= ========= ========= ========= ========= =========
33