EXHIBIT 99.1
Financial Supplement
Exhibit 99.1
Financial Supplement
THE PHOENIX COMPANIES, INC.
December 31, 2004
Revised to conform to 2004 Annual Report on Form 10K
[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
DECEMBER 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 FOURTH 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
Fourth Quarter 2004 (unaudited)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
-----------------------------------------------------------------------
2004 2003 2002 2001 2000
----------- ----------- ----------- ----------- -----------
General Account Invested Assets $ 17,334.6 $ 17,242.8 $ 16,812.8 $ 14,411.4 $ 12,594.3
Separate Account Assets 6,950.3 6,083.2 4,371.2 5,025.2 5,376.6
Total Assets 28,362.6 27,559.2 25,235.9 22,535.6 20,313.5
Indebtedness 690.8 639.0 644.3 599.3 425.1
Total Stockholders' Equity 2,022.4 1,947.8 1,826.8 2,307.8 1,840.9
Total Stockholders' Equity excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 2,018.5 $ 1,925.3 $ 1,937.1 $ 2,317.5 $ 1,820.7
Debt to Total Capitalization 25.5% 24.7% 24.1% 20.0% 18.8%
Debt (Excluding Equity Units) to Total Capitalization 19.8% 18.8% 18.3%
Book Value Per Share (1) $ 21.31 $ 20.62 $ 19.43 $ 22.64 $ 24.75
Book Value Per Share, excluding SFAS 115
and other accumulated OCI 20.70 19.96 20.19 22.62 24.51
Book Value Per Share, excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 21.27 $ 20.39 $ 20.60 $ 22.74
Period-end Common Shares Outstanding (2) 94.9 94.4 94.0 101.9 105.0
=========== =========== =========== =========== ===========
- ---------------------------------------------------------------------------------------------------------------------------------
Indebtedness:
Surplus Notes $ 204.1 $ 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 8.0 10.3 15.6 (0.8)
Bank Credit Facility 25.0 125.1 230.0
Other 20.1
----------- ----------- ----------- ----------- -----------
Total Indebtedness $ 690.8 $ 639.0 $ 644.3 $ 599.3 $ 425.1
=========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE
INSURANCE COMPANY (3)
Capital, Surplus and Surplus Notes $ 814.6 $ 762.9 $ 861.0 $ 1,149.8 $ 1,322.8
Asset Valuation Reserve (AVR) 213.6 198.6 147.0 221.5 559.7
----------- ----------- ----------- ----------- -----------
Capital, Surplus, Surplus Notes and AVR 1,028.2 961.5 1,008.0 1,371.3 1,882.5
=========== =========== =========== =========== ===========
Policyholder Dividend Liability 403.3 408.5 403.0 395.8 383.2
Interest Maintenance Reserve (31.3) (30.2) (2.0) 11.6 (1.4
Statutory Gain From Operations 35.1 69.7 44.5 119.9 266.4
Statutory Net Income (Loss) $ 47.1 $ 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 financial statements
with state regulatory authorities prepared on an accounting basis
prescribed or permitted by The Insurance Department of the State of New
York. December 2004 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Fourth Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY
December 31,
-----------------------------------------------------------------------
2004 2003 2002 2001 2000
----------- ----------- ----------- ----------- -----------
SEGMENT INCOME
Life Insurance $ 134.5 $ 103.5 $ 101.0 $ 72.0 $ 19.6
Annuity 8.3 (4.1) (20.7) 10.9 4.2
Life and Annuity Segment 142.8 99.4 80.3 82.9 23.8
Asset Management Segment .1 (8.7) (69.9) (8.7) 61.4
Venture Capital Segment 19.3 36.2 (59.3) (159.6) 277.3
Corporate and Other Segment (59.1) (47.8) (40.0) (34.7) (60.8)
----------- ----------- ----------- ----------- -----------
Total Segment Income (Loss), Before Income Taxes 103.1 79.1 (88.9) (120.1) 301.7
Applicable Income Taxes (Benefit) 22.5 21.8 (28.5) (45.4) 101.3
----------- ----------- ----------- ----------- -----------
TOTAL SEGMENT INCOME (LOSS) 80.6 57.3 (60.4) (74.7) 200.4
Net Realized Investment Gains (Losses),
after income taxes 5.7 3.2 (39.3) (43.0) 62.0
Realized losses - Investments Pledged as
Collateral Consolidated Under FIN 46-R (12.9) (2.4) (26.3) (12.5)
Unrealized Gains (Losses) on Equity
Investment in Aberdeen 55.9 (55.0)
Share of Aberdeen's Extraordinary Charge
for FSA Setttlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and Early Retirement Costs (21.9) (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 5.3 (.1)
----------- ----------- ----------- ----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 86.3 (4.1) (140.7) (196.1) 96.0
Income (Loss) From Discontinued Operations .1 (2.1) (1.3) (2.5) (12.7)
----------- ----------- ----------- ----------- -----------
Income (Loss) Before Cumulative Effect
of Accounting changes 86.4 (6.2) (142.0) (198.6) 83.3
Cumulative Effect of Accounting changes (130.3) (16.6)
----------- ----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 86.4 $ (6.2) $ (272.3) $ (215.2) $ 83.3
=========== =========== =========== =========== ===========
- --------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.7 94.2 97.9 104.6 104.6
----------- ------------ ----------- ----------- -----------
Total Segment Income (Loss) Per Share $ 0.85 $ 0.61 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.91 $ (0.07) $ (2.78) $ (2.06) $ 0.80
Diluted
Weighted-Average Shares Outstanding and dilutive
potential common shares (1) (2) 100.8 96.6 97.9 104.6 104.6
----------- ----------- ----------- ----------- -----------
Total Segment Income (Loss) Per Share $ 0.80 $ 0.59 $ (0.62) $ (0.71) $ 1.90
Net Income (Loss) Per Share $ 0.86 $ (0.07) $ (2.78) $ (2.06) $ 0.80
===========
(1) Weighted-average shares outstanding through 2001 are pro forma due to
Initial Public Offering (IPO) in 2001.
(2) For the twelve months ended December 31, 2003, the weighted average common
shares outstanding and dilutive potential common shares was 96.6 million.
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
Fourth Quarter 2004 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2003 2004
Quarters ended ---------------------------------------- ------------------------------------------
March June September December March June September December
--------- --------- --------- ---------- -------- --------- --------- ----------
SEGMENT INCOME
Life Insurance $ 23.3 $ 29.2 $ 24.7 $ 26.4 $ 23.0 $ 29.9 $ 37.9 $ 43.7
Annuity (5.3) (1.4) .3 2.2 2.8 3.9 3.0 (1.4)
--------- --------- --------- --------- --------- --------- --------- ---------
Life and Annuity Segment 18.0 27.8 25.0 28.6 25.8 33.8 40.9 42.3
Asset Management Segment (5.8) (5.7) (3.1) 5.9 .1 .1 (.1)
Venture Capital Segment 23.9 5.8 5.1 1.3 11.6 4.4 (3.9) 7.2
Corporate and Other Segment (11.4) (12.5) (10.5) (13.4) (12.7) (16.0) (15.9) (14.5)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Segment Income, Before Income Taxes 24.7 15.4 16.5 22.4 24.8 22.3 21.1 34.9
Applicable Income Taxes (Benefit) 7.5 3.5 4.6 6.1 7.3 5.7 .6 8.9
--------- --------- --------- --------- --------- --------- --------- ---------
TOTAL SEGMENT INCOME 17.2 11.9 11.9 16.3 17.5 16.6 20.5 26.0
Net Realized Investment Gains (Losses),
after income taxes (12.4) (4.2) 2.5 17.3 1.7 7.8 (.1) (3.7)
Realized gains (losses) - Investments Pledged
as Collateral Consolidated Under FIN 46-R (1.9) (.1) (.8) .4 (1.0) (3.6) (8.3)
Unrealized Gains (Losses) on Equity Investment
in Aberdeen (55.0) .8 55.1
Share of Aberdeen's Extraordinary Charge
for FSA Setttlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and Early
Retirement Costs (2.5) (1.8) (4.2) (1.9) (7.0) (5.0) (8.0)
Other Income 1.3
--------- --------- --------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1.7 (49.2) 13.6 29.8 16.3 14.6 7.1 48.3
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 $ 48.3
========= ========= ========= ========= ========= ========= ========= =========
- --------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding 94.0 94.2 94.3 94.4 94.5 94.6 94.7 94.8
--------- --------- --------- --------- --------- --------- --------- ---------
Total Segment Income Per Share $ 0.18 $ 0.13 $ 0.13 $ 0.17 $ 0.19 $ 0.18 $ 0.22 $ 0.27
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.14 $ 0.31 $ 0.18 $ 0.15 $ 0.07 $ 0.51
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares (1) 95.0 94.2 98.3 99.8 102.0 101.3 99.2 100.3
--------- --------- --------- --------- --------- --------- --------- ---------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.13 $ 0.12 $ 0.16 $ 0.17 $ 0.16 $ 0.21 $ 0.26
Net Income (Loss) Per Share $ 0.01 $ (0.53) $ 0.13 $ 0.29 $ 0.16 $ 0.14 $ 0.07 $ 0.48
=========
(1) For the three months ended June 30, 2003, the weighted averaged 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
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
------------------------------------------------------------------------
SEGMENT INCOME 2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
Variable Universal Life $ 35.7 $ 35.0 $ 35.9 $ 30.2 $ 20.1
Universal Life (1) 34.4 21.7 26.3 17.4 18.2
Term Life 3.4 3.8 4.7 1.3 (1.0)
Other Life and Annuity (2) 16.0 6.9 .8 1.7 4.6
------------ ------------ ------------ ------------ ------------
Total, Non-participating Life 89.5 67.4 67.7 50.6 41.9
Participating Life 45.0 36.1 33.3 21.4 (22.3)
------------ ------------ ------------ ------------ ------------
Total, Life Insurance 134.5 103.5 101.0 72.0 19.6
Annuities 8.3 (4.1) (20.7) 10.9 4.2
------------ ------------ ------------ ------------ ------------
Segment Income, before income taxes 142.8 99.4 80.3 82.9 23.8
Allocated Income Taxes (3) 36.4 31.1 28.0 28.8 9.4
------------ ------------ ------------ ------------ ------------
Segment Income $ 106.4 $ 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
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
SEGMENT INCOME ---------------------------------------- ------------------------------------------
Quarters Ended March June September December March June September December
--------- --------- --------- ---------- ---------- ---------- --------- ----------
Variable Universal Life $ 6.3 $ 9.3 $ 10.5 $ 9.0 $ 8.2 $ 8.5 $ 9.7 $ 9.5
Universal Life (1) 4.7 5.6 5.5 5.9 1.9 10.9 8.7 12.9
Term Life .4 (.8) .9 3.3 .3 (1.1) .9 3.2
Other Life and Annuity (2) 3.1 1.2 .8 1.8 3.7 3.4 2.6 6.1
--------- --------- --------- ---------- ---------- ---------- --------- ----------
Total, Non-participating Life 14.5 15.3 17.7 20.0 14.1 21.7 21.9 31.7
Participating Life 8.8 13.9 7.0 6.4 8.9 8.2 15.9 12.0
--------- --------- --------- ---------- ---------- ---------- --------- ----------
Total, Life Insurance 23.3 29.2 24.7 26.4 23.0 29.9 37.8 43.7
Annuities (5.3) (1.4) .3 2.2 2.8 3.9 3.0 (1.4)
--------- --------- --------- ---------- ---------- ---------- --------- ----------
Segment Income, before income taxes 18.0 27.8 25.0 28.6 25.8 33.8 40.8 42.3
Applicable Income Taxes 4.0 8.4 10.7 8.0 7.2 10.2 7.1 11.9
--------- --------- --------- ---------- ---------- ---------- --------- ----------
Segment Income $ 14.0 $ 19.4 $ 14.3 $ 20.6 $ 18.6 $ 23.7 $ 33.7 $ 30.4
========= ========= ========= ========== ========== ========== ========= ==========
(1) Universal Life includes interest sensitive whole life contracts.
(2) Other Life and Annuity includes WS Griffith.
5
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 29.6 $ 30.1 $ 31.4 $ 29.5 $ 24.9
Cost of Insurance 74.6 72.1 66.4 60.0 46.2
Interest Earned 5.9 5.6 7.0 4.5 5.7
Surrender Charges 6.9 6.9 4.4 3.3 3.5
------------ ------------ ------------ ------------ ------------
Total Revenues 117.0 114.7 109.2 97.3 80.3
------------ ------------ ------------ ------------ ------------
Net Death and Disability Benefits 30.5 23.3 22.9 15.3 15.5
Incurred Expenses 47.1 52.8 45.9 48.2 41.6
Interest Credited 3.7 3.6 3.7 3.6 3.1
Minority Interest .8
------------ ------------ ------------ ------------ ------------
Total Expenses 81.3 79.7 73.3 67.1 60.2
------------ ------------ ------------ ------------ ------------
Pre-tax Income 35.7 35.0 35.9 30.2 20.1
============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 16.3 21.4 36.6 29.5 34.2
Controllable Expenses and Other 34.0 44.6 60.8 60.1 57.3
------------ ------------ ------------ ------------ ------------
Total Current Expenses 50.3 66.0 97.4 89.6 91.5
Acquisition Costs Deferred (25.4) (33.9) (68.1) (65.4) (56.9)
Acquisition Costs Amortized 22.2 20.8 16.6 24.0 7.0
------------ ------------ ------------ ------------ ------------
Incurred Expenses 47.1 52.8 45.9 48.2 41.6
============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 245.4 353.4 465.7 336.1 258.1
Surrenders (75.3) (69.4) (37.6) (31.2) (34.0)
Deaths (2.2) (1.4) (1.8) (1.7) (1.4)
------------ ------------ ------------ ------------ ------------
Net Sales 167.9 282.6 426.3 303.2 222.7
Performance 179.3 252.1 (149.8) (194.0) (128.1)
Fees (30.6) (36.4) (35.8) (34.5) (33.0)
Cost of Insurance (72.4) (69.8) (66.4) (60.0) (46.2)
------------ ------------ ------------ ------------ ------------
Acquisitions
Change in Funds Under Management 244.2 428.5 174.3 14.7 15.4
Beginning Balance 1,698.9 1,270.3 1,096.0 1,081.3 1,065.9
------------ ------------ ------------ ------------ ------------
Ending Balance 1,943.1 1,698.8 1,270.3 1,096.0 1,081.3
============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 24,251.8 $ 24,603.0 $ 23,788.2 $ 20,436.1 $ 17,743.3
============ ============ ============ ============ ============
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
PRE-TAX INCOME
Fees $ 7.6 $ 7.5 $ 8.1 $ 7.0 $ 8.0 $ 7.3 $ 6.8 $ 7.5
Cost of Insurance 17.9 18.1 17.6 18.5 18.3 18.5 18.7 19.2
Interest Earned 1.6 1.5 1.3 1.2 1.2 1.7 1.2 1.8
Surrender Charges 1.2 1.6 1.8 2.3 1.7 1.4 1.8 2.1
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Revenues 28.3 28.7 28.7 29.0 29.2 28.9 28.5 30.6
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Death and Disability Benefits 5.0 6.0 5.0 7.3 8.3 7.5 6.1 8.6
Incurred Expenses 16.1 12.5 12.3 12.0 11.7 11.9 11.7 11.7
Interest Credited .9 1.0 1.0 .7 1.0 1.0 1.0 .8
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses 22.0 19.5 18.3 20.0 21.0 20.4 18.8 21.1
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Pre-tax Income 6.3 9.3 10.5 9.0 8.2 8.5 9.7 9.5
========== ========== ========== ========== ========== ========== ========== ==========
---------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 5.2 4.6 4.9 6.7 4.0 4.2 3.0 5.1
Controllable Expenses and Other 11.4 12.3 9.1 11.8 9.2 9.3 8.4 7.1
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Current Expenses 16.6 16.9 14.0 18.5 13.2 13.5 11.4 12.2
Acquisition Costs Deferred (8.0) (8.7) (7.0) (10.2) (6.6) (6.6) (5.5) (6.7)
Acquisition Costs Amortized 7.5 4.3 5.3 3.7 5.1 5.0 5.8 6.2
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Incurred Expenses 16.1 12.5 12.3 12.0 11.7 11.9 11.7 11.7
========== ========== ========== ========== ========== ========== ========== ==========
----------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 71.8 62.0 137.4 82.2 67.0 60.0 45.1 73.3
Surrenders (13.7) (11.5) (25.4) (18.8) (15.6) (15.0) (16.1) (28.6)
Deaths (.2) (.1) (.5) (.6) (.4) (.4) (.6) (.8)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Sales 57.9 50.4 111.5 62.8 51.0 44.6 28.4 43.9
Performance (8.5) 110.4 52.0 98.2 56.5 10.0 (2.0) 114.8
Fees (8.4) (7.9) (10.0) (10.1) (8.4) (7.4) (7.0) (7.8)
Cost of Insurance (17.9) (16.8) (17.2) (17.9) (17.7) (18.0) (18.0) (18.7)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Change in Funds Under Management 23.1 136.1 136.3 133.0 81.4 29.2 1.4 132.2
Beginning Balance 1,270.3 1,293.5 1,429.6 1,565.9 1,698.9 1,780.3 1,809.5 1,810.9
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Ending Balance 1,293.4 1,429.6 1,565.9 1,698.9 1,780.3 1,809.5 1,810.9 1,943.1
========== ========== ========== ========== ========== ========== ========== ==========
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 $24,251.8
========== ========== ========== ========== ========== ========== ========== ==========
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 19.2 $ 17.3 $ 11.9 $ 8.6 $ 8.4
Cost of Insurance 90.7 78.9 71.6 66.2 64.8
Interest Earned 100.3 98.3 108.4 111.9 108.7
Surrender Charges 3.2 2.5 3.9 4.0 5.5
------------ ------------ ------------ ------------ ------------
Total Revenues 213.4 196.9 195.8 190.7 187.4
------------ ------------ ------------ ------------ ------------
Net Death Benefits and Supplemental Benefits 58.2 51.2 39.5 48.3 45.4
Incurred Expenses 46.2 46.0 44.3 34.6 32.5
Interest Credited 74.6 78.0 85.7 90.4 91.3
------------ ------------ ------------ ------------ ------------
Total Expenses 179.0 175.2 169.5 173.3 169.2
------------ ------------ ------------ ------------ ------------
Pre-tax Income 34.4 21.7 26.3 17.4 18.2
============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 24.9 28.2 15.2 9.8 5.8
Controllable Expenses 64.4 75.0 52.6 32.1 23.7
------------ ------------ ------------ ------------ ------------
Total Current Expenses 89.3 103.2 67.8 41.9 29.5
Acquisition Cost Deferred (63.5) (74.9) (40.2) (20.0) (8.7)
Acquisition Cost Amortized 20.4 17.7 16.7 12.7 11.7
------------ ------------ ------------ ------------ ------------
Incurred Expenses 46.2 46.0 44.3 34.6 32.5
============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 229.4 217.8 149.3 104.6 90.9
Surrenders (126.2) (118.6) (107.4) (99.0) (108.2)
Deaths (16.9) (19.4) (25.0) (18.5) (20.9)
------------ ------------ ------------ ------------ ------------
Net Sales 86.3 79.8 16.9 (12.9) (38.2)
Interest Credited 74.6 78.0 85.8 90.4 91.3
Fees (23.5) (24.9) (16.7) (10.5) (6.2)
Cost of Insurance (90.7) (78.9) (71.6) (66.2) (64.8)
------------ ------------ ------------ ------------ ------------
Change in Funds Under Management 46.7 54.0 14.4 .8 (17.9)
Beginning Balance 1,564.0 1,510.0 1,495.6 1,494.8 1,512.7
------------ ------------ ------------ ------------ ------------
Ending Fund Balance 1,610.7 1,564.0 1,510.0 1,495.6 1,494.8
============ ============ ============ ============ ============
LIFE INSURANCE IN FORCE $ 14,103.7 $ 12,830.3 $ 10,476.7 $ 9,465.6 $ 9,644.2
============ ============ ============ ============ ============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
PRE-TAX INCOME ------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Fees $ 4.0 $ 2.9 $ 4.6 $ 5.8 $ 4.5 $ 4.8 $ 5.0 $ 5.0
Cost of Insurance 18.8 19.3 19.7 21.0 21.6 22.5 22.8 23.8
Interest Earned 24.7 24.6 24.5 24.4 24.0 25.9 24.4 26.0
Surrender Charges .7 .6 .6 .6 .7 1.1 .5 .9
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Revenues 48.2 47.4 49.4 51.8 50.8 54.3 52.7 55.7
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Death Benefits and Supplemental Benefits 12.3 9.2 14.0 15.7 19.3 12.3 13.1 13.4
Incurred Expenses 11.0 12.3 11.6 11.1 10.4 12.1 12.8 11.0
Interest Credited 20.2 20.3 18.4 19.1 19.2 19.0 18.1 18.4
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses 43.5 41.8 43.9 45.9 48.9 43.4 44.0 42.8
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Pre-tax Income 4.7 5.6 5.5 5.9 1.9 10.9 8.7 12.9
========== ========== ========== ========== ========== ========== ========== ==========
----------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 6.2 4.3 6.9 10.8 6.9 6.2 4.0 7.9
Controllable Expenses 16.0 18.6 17.9 22.5 17.1 15.5 14.4 17.4
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Current Expenses 22.2 22.8 24.8 33.4 24.0 21.7 18.4 25.3
Acquisition Cost Deferred (15.3) (15.0) (18.2) (26.4) (17.7) (14.5) (11.9) (19.4)
Acquisition Cost Amortized 4.1 4.5 5.0 4.1 4.1 4.9 6.3 5.1
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Incurred Expenses 11.0 12.3 11.6 11.1 10.4 12.1 12.8 11.0
========== ========== ========== ========== ========== ========== ========== ==========
----------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 45.6 41.2 56.3 74.7 54.7 55.7 56.2 62.8
Surrenders (30.9) (27.3) (27.6) (32.8) (31.9) (37.0) (27.7) (29.6)
Deaths (5.9) (3.1) (5.6) (4.8) (3.3) (3.7) (7.5) (2.4)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Sales 8.8 10.8 23.1 37.1 19.5 15.0 21.0 30.8
Interest Credited 20.2 20.3 18.4 19.1 19.1 19.0 18.1 18.4
Fees (5.5) (4.2) (6.1) (9.1) (5.4) (5.8) (5.3) (7.0)
Cost of Insurance (18.8) (19.3) (19.8) (21.0) (21.6) (22.5) (22.8) (23.8)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Change in Funds Under Management 4.7 7.6 15.6 26.1 11.6 5.7 11.0 18.4
Beginning Balance 1,510.0 1,514.7 1,522.3 1,537.9 1,564.0 1,575.6 1,581.3 1,592.3
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Ending Fund Balance 1,514.7 1,522.3 1,537.9 1,564.0 1,575.6 1,581.3 1,592.3 1,610.7
========== ========== ========== ========== ========== ========== ========== ==========
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 $14,103.7
========== ========== ========== ========== ========== ========== ========== ==========
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
LIFE INSURANCE SALES ------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
WHOLESALER CHANNEL
Variable Universal Life $ 18.2 $ 30.1 $ 62.5 $ 53.8 $ 61.1
Universal Life/Interest Sensitive 47.5 67.5 36.9 14.5 8.0
Term Life 15.3 19.2 15.1 11.4 14.6
Participating Whole Life .6 4.8 9.7 22.6
------------ ------------ ------------ ------------ ------------
Life Insurance Annualized Premium (1) 81.0 117.4 119.3 89.4 106.3
============ ============ ============ ============ ============
Variable Universal Life 10.8 20.1 25.1 49.7 46.2
Universal Life/Interest Sensitive 53.2 61.6 29.9 14.5 1.8
Participating Whole Life .8 2.4 5.4
------------ ------------ ------------ ------------ ------------
Life Insurance Single Premium 64.0 81.7 55.8 66.6 53.4
============ ============ ============ ============ ============
Variable Universal Life 29.0 50.1 87.6 103.5 107.3
Universal Life/Interest Sensitive 100.7 129.2 66.8 29.0 9.8
Term Life 15.3 19.2 15.1 11.4 14.6
Participating Whole Life .6 5.6 12.1 28.0
------------ ------------ ------------ ------------ ------------
Total Wholesaler Life Insurance Premium (2) 145.0 199.2 175.1 156.0 159.7
============ ============ ============ ============ ============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 60.0 149.5 222.5 83.7 34.9
Annuity 152.6 394.9 142.6 164.0 109.6
------------ ------------ ------------ ------------ ------------
Total Private Placement Life and Annuity Deposits 212.6 544.4 365.1 247.7 144.5
============ ============ ============ ============ ============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,898.5 $ 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
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
LIFE INSURANCE SALES ------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
WHOLESALER CHANNEL
Variable Universal Life $ 6.3 $ 7.0 $ 5.7 $ 11.1 $ 4.5 $ 5.0 $ 3.1 $ 5.6
Universal Life/Interest Sensitive 11.9 10.8 14.1 30.7 13.1 10.5 10.4 13.4
Term Life 4.5 4.8 4.8 5.2 3.9 4.0 3.3 4.2
Participating Whole Life .6
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Life Insurance Annualized Premium (1) 23.3 22.6 24.6 47.0 21.5 19.5 16.8 23.2
========== ========== ========== ========== ========== ========== ========== ==========
Variable Universal Life 4.1 7.1 3.2 5.6 2.5 2.6 2.0 3.7
Universal Life/Interest Sensitive 7.2 8.3 20.3 25.8 11.1 14.4 13.3 14.4
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Life Insurance Single Premium 11.3 15.4 23.5 31.4 13.6 17.0 15.3 18.1
========== ========== ========== ========== ========== ========== ========== ==========
Variable Universal Life 10.4 14.1 8.9 16.7 7.0 7.5 5.1 9.3
Universal Life/Interest Sensitive 19.1 19.1 34.4 56.5 24.2 25.0 23.7 27.8
Term Life 4.5 4.8 4.8 5.2 3.9 4.0 3.3 4.2
Participating Whole Life .6
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Wholesaler Life Insurance Premium (2) $ 34.6 $ 38.0 $ 48.1 $ 78.4 $ 35.1 $ 36.5 $ 32.1 $ 41.3
========== ========== ========== ========== ========== ========== ========== ==========
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 25.1
Annuity 24.5 119.9 227.8 22.8 28.8 70.9 41.0 12.0
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Private Placement Life and
Annuity Deposits $ 44.2 $ 133.7 $ 318.1 $ 48.5 $ 46.2 $ 85.4 $ 44.0 $ 37.1
========== ========== ========== ========== ========== ========== ========== ==========
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 $ 1,898.5
========== ========== ========== ========== ========== ========== ========== ==========
(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
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 63.4 $ 56.9 $ 57.1 $ 64.6 $ 78.2
Interest Earned 146.6 139.4 98.3 40.3 16.3
Surrender Charges 5.8 7.4 6.6 3.9 5.1
------------ ------------ ------------ ------------ ------------
Total Revenues 215.8 203.7 162.0 108.8 99.6
------------ ------------ ------------ ------------ ------------
Mortality Cost 8.9 4.3 10.9 4.3 3.0
Incurred Expenses 81.6 77.3 79.8 54.4 77.3
Interest Credited 117.0 126.2 92.0 39.2 15.1
------------ ------------ ------------ ------------ ------------
Total Expenses 207.5 207.8 182.7 97.9 95.4
------------ ------------ ------------ ------------ ------------
Pre-tax Income (Loss) 8.3 (4.1) (20.7) 10.9 4.2
============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 42.6 51.1 81.3 44.0 29.2
Controllable Expenses 47.6 65.3 66.5 75.2 54.1
------------ ------------ ------------ ------------ ------------
Total Current Expenses 90.2 116.4 147.8 119.2 83.2
Acquisition Cost Deferred (43.7) (65.5) (102.9) (83.8) (43.0)
Acquisition Cost Amortized 35.1 26.4 34.9 19.0 37.0
------------ ------------ ------------ ------------ ------------
Incurred Expenses $ 81.6 $ 77.3 $ 79.8 $ 54.4 $ 77.3
============ ============ ============ ============ ============
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
PRE-TAX INCOME ------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Fees $ 12.8 $ 13.3 $ 15.0 $ 15.7 $ 15.5 $ 15.7 $ 15.9 $ 16.3
Interest Earned 34.1 34.1 35.9 35.4 35.4 35.3 37.6 38.4
Surrender Charges 1.5 1.4 1.8 2.6 1.1 1.4 2.1 1.2
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Revenues 48.4 48.8 52.7 53.7 52.0 52.3 55.6 55.9
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Mortality Cost 2.8 1.8 (.3) .9 2.4 3.6 2.0
Incurred Expenses 19.4 20.0 17.9 19.9 20.6 15.8 19.8 25.5
Interest Credited 31.5 30.2 32.7 31.9 27.7 30.2 29.2 29.8
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses 53.7 50.2 52.4 51.5 49.2 48.4 52.6 57.3
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Pre-tax Income (Loss) (5.3) (1.4) .3 2.2 2.8 3.9 3.0 (1.4)
========== ========== ========== ========== ========== ========== ========== ==========
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 16.7 11.6 11.5 11.3 12.6 10.3 9.9 9.8
Controllable Expenses 18.0 16.3 14.8 16.2 15.9 12.5 9.9 9.3
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Current Expenses 34.7 27.9 26.3 27.5 28.5 22.8 19.8 19.1
Acquisition Cost Deferred (24.7) (14.0) (14.7) (12.2) (15.0) (12.7) (7.9) (8.0)
Acquisition Cost Amortized 9.4 6.1 6.3 4.6 7.1 5.7 7.9 14.4
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Incurred Expenses $ 19.4 $ 20.0 $ 17.9 $ 19.9 $ 20.6 $ 15.8 $ 19.8 $ 25.5
========== ========== ========== ========== ========== ========== ========== ==========
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
FUNDS UNDER MANAGEMENT ------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
Annuities
Deposits $ 670.9 $ 1,428.1 $ 2,258.4 $ 1,492.9 $ 687.0
Surrenders (774.4) (854.9) (736.7) (482.3) (608.5)
------------ ------------ ------------ ------------ -------------
Net Sales (103.5) 573.2 1,521.7 1,010.6 78.5
Performance and Interest Credited 664.5 865.3 (338.0) (563.1) (415.2)
Fees (59.8) (57.7) (58.8) (67.3) (78.2)
Deaths (81.6) (70.4) (40.6) (34.3) (24.9)
------------ ------------ ------------ ------------ -------------
Change in Funds Under Management 419.6 1,310.4 1,084.3 345.9 (439.8)
Beginning Balance 7,143.8 5,833.4 4,749.1 4,403.2 4,843.0
------------ ------------ ------------ ------------ -------------
Ending Balance $ 7,563.4 $ 7,143.8 $ 5,833.4 $ 4,749.1 $ 4,403.2
============ ============ ============ ============ =============
VA Funds in Guaranteed Interest Accounts (1) $ 1,939.1 $ 2,067.4 $ 2,159.3 $ 955.0 $ 333.5
============ ============ ============ ============ =============
Fixed Annuities (1)(2) $ 1,038.2 $ 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
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
FUNDS UNDER MANAGEMENT ------------------------------------------ -------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Annuities
Deposits $ 425.7 $ 377.4 $ 452.1 $ 172.9 $ 215.0 $ 208.9 $ 140.8 $ 106.2
Surrenders (231.6) (195.1) (214.6) (213.6) (195.4) (171.3) (210.5) (197.2)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Sales 194.1 182.3 237.5 (40.7) 19.6 37.6 (69.7) (91.0)
Performance and Interest Credited 20.2 351.4 140.1 353.6 211.2 18.0 5.0 430.3
Fees (11.5) (15.4) (14.4) (16.4) (15.3) (14.0) (15.1) (15.4)
Deaths (22.6) (13.0) (16.7) (18.1) (23.2) (21.8) (18.6) (18.0)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Change in Funds Under Management 180.2 505.3 346.5 278.4 192.3 19.8 (98.4) 305.9
Beginning Balance 5,833.4 6,013.6 6,518.9 6,865.4 7,143.8 7,336.1 7,355.9 7,257.5
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Ending Balance $ 6,013.6 $ 6,518.9 $ 6,865.4 $ 7,143.8 $ 7,336.1 $ 7,355.9 $ 7,257.5 $ 7,563.4
========== ========== ========== ========== ========== ========== ========== ==========
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 $ 1,939.1
========== ========== ========== ========== ========== ========== ========== ==========
Fixed Annuities(1) $ 921.4 $ 1,002.2 $ 1,055.7 $ 1,056.9 $ 1,055.0 $ 1,047.9 $ 1,048.0 $ 1,038.2
========== ========== ========== ========== ========== ========== ========== ==========
(1) Amounts are included in the annuities funds under management table above.
15
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
---------------------------------------------------------------------
2004 2003 2002 2001 2000
------------- ------------- ------------- ------------- -------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 332.5 $ 329.3 $ 310.4 $ 252.8 $ 211.4
Universal Life 262.0 219.2 163.1 134.7 127.4
Variable Annuities 296.7 289.0 264.9 211.4 147.0
Fixed Annuities 46.0 45.2 26.3 0.4
Participating 541.7 551.0 554.6 517.4 554.8
Other 37.5 28.1 21.2 17.5 17.4
Offset for Unrealized Investment Gains (86.5) (94.1) (106.4) (10.5) (39.0)
------------- ------------- ------------- ------------- -------------
Total $ 1,429.9 $ 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 $ 441.1 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 123.5 183.0 234.9
Statutory Reserve, Net of Reinsurance 15.0 17.3 15.8
GAAP Reserve, Net of Reinsurance 9.1 7.8 8.7
-------------
(1) Comparable data is not available for 2000 and 2001.
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------------- ---------------------------------------------------
Quarters ended March June September December March June September December
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 310.9 $ 315.4 $ 323.5 $ 329.3 $ 330.8 $ 332.4 $ 332.1 $ 332.5
Universal Life 172.6 183.4 196.7 219.2 232.3 241.9 247.5 262.0
Variable Annuities 271.2 277.5 288.9 289.0 296.3 302.4 302.7 296.7
Fixed Annuities 35.3 36.8 37.2 45.2 45.9 46.8 46.4 46.0
Participating 556.4 549.9 551.2 551.0 550.3 549.1 544.5 541.7
Other 22.6 24.4 26.4 28.1 30.6 33.1 35.6 37.5
Adjustment for Unrealized
Investment Gains
and Losses (99.0) (139.4) (88.2) (94.1) (127.7) (40.4) (80.1) (86.5)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total $ 1,270.0 $ 1,248.0 $ 1,335.7 $ 1,367.7 $ 1,358.5 $ 1,465.2 $ 1,428.7 $ 1,429.9
============ ============ ============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 441.1
Death Benefit in Excess of
Fund Value, Net of
Reinsurance 242.3 178.7 161.1 183.0 166.4 163.2 173.8 123.5
Statutory Reserve, Net of
Reinsurance 16.1 12.9 19.2 17.3 16.5 17.1 18.5 15.0
GAAP Reserve, Net of
Reinsurance 9.2 7.9 8.1 7.8 6.9 7.7 10.3 9.1
============ ============ ============ ============ ============ ============ ============ ============
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Fourth Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME December 31,
-------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
Investment Management Fees $ 219.0 $ 205.5 $ 219.2 $ 211.9 $ 270.5
Mutual Funds - Ancillary Fees (1) 38.3 35.5 38.7 47.1 64.3
Other Revenue 7.7 9.3 10.2 12.9 8.8
------------ ------------ ------------ ------------ ------------
Total Revenues 265.0 250.3 268.1 271.9 343.6
------------ ------------ ------------ ------------ ------------
Employment Expenses 132.6 129.6 134.9 123.3 129.4
Other Operating Expenses (1) 85.9 86.7 93.4 103.0 108.2
Amortization of Intangibles 33.8 33.2 32.5 49.0 31.8
Intangible Asset Impairments 66.3
------------ ------------ ------------ ------------ ------------
Total Operating Expenses 252.3 249.5 327.1 275.3 269.4
------------ ------------ ------------ ------------ ------------
Management Income (Loss) 12.7 .8 (59.0) (3.4) 74.2
Other Income - Net 1.7 2.5 1.0 1.6 3.7
Minority Interest (14.3) (12.0) (11.9) (6.9) (16.5)
------------ ------------ ------------ ------------ ------------
Segment Income (Loss), before income taxes .1 (8.7) (69.9) (8.7) 61.4
Applicable Income taxes (Benefit) 2.3 (3.3) (6.0) 2.6 32.0
------------ ------------ ------------ ------------ ------------
Segment Income (Loss) $ (2.2) $ (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
Fourth Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
Quarters ended --------------------------------------------------- ---------------------------------------------------
March June September December March June September December
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Investment Management Fees $ 46.6 $ 47.3 $ 51.5 $ 59.9 $ 57.3 $ 54.4 $ 52.6 $ 54.7
Mutual Funds - Ancillary
Fees (1) 8.2 8.6 9.2 9.5 9.7 9.5 9.4 9.8
Other Revenue 1.6 2.2 2.7 2.8 2.8 2.2 1.4 1.3
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 56.4 58.1 63.4 72.2 69.8 66.1 63.4 65.8
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Employment Expenses 29.3 33.2 33.5 33.6 34.8 32.6 31.3 33.8
Other Operating Expenses (1) 22.6 20.9 22.4 20.6 23.3 22.0 20.6 20.1
Amortization of Intangibles 8.4 8.2 8.3 8.3 8.3 8.3 8.5 8.7
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses 60.3 62.3 64.2 62.5 66.4 62.9 60.4 62.6
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Management Income (Loss) (3.9) (4.2) (.8) 9.7 3.4 3.2 3.0 3.2
Other Income - Net .9 .4 .6 .6 .4 .3 .3 .6
Minority Interest (2.8) (1.9) (2.9) (4.4) (3.7) (3.4) (3.3) (3.9)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss),
before income taxes (5.8) (5.7) (3.1) 5.9 .1 .1 (.1)
Applicable Income Taxes
(Benefit) (2.1) (2.3) (1.2) 2.3 .4 1.9
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) $ (3.7) $ (3.4) $ (1.9) $ 3.6 $ (.3) $ .1 $ (2.0)
============ ============ ============ ============ ============ ============ ============ ============
(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
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
-------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 2,109.9 $ 2,268.3 $ 4,421.1 $ 2,721.8 $ 3,869.4
Outflows (5,203.0) (2,656.6) (2,716.4) (2,546.4) (1,619.7)
------------ ------------ ------------ ------------ ------------
Net Flows (3,093.1) (388.3) 1,704.7 175.4 2,249.6
Performance 950.3 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 (2,142.8) 1,149.2 5,670.8 (2,621.8) 1,090.7
Beginning Balance 15,658.4 14,509.2 8,838.4 11,460.2 10,369.5
------------ ------------ ------------ ------------ ------------
Ending Balance 13,515.6 15,658.4 14,509.2 8,838.4 11,460.2
------------ ------------ ------------ ------------ ------------
MUTUAL FUNDS: (1)
Inflows 1,816.0 1,744.8 1,513.1 1,660.1 2,068.6
Outflows (2,301.9) (2,039.8) (2,379.2) (2,449.9) (3,079.9)
------------ ------------ ------------ ------------ ------------
Net Flows (485.9) (295.0) (866.1) (789.8) (1,011.3)
Performance 975.5 1,946.3 (2,406.0) (2,985.3) (1,629.9)
Other 273.5 (182.2) (153.7) (148.9) (412.2)
Acquisitions (Divestitures)
------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 763.1 1,469.1 (3,425.8) (3,924.0) (3,053.4)
Beginning Balance 13,735.6 12,266.5 15,692.3 19,616.3 22,669.7
------------ ------------ ------------ ------------ ------------
Ending Balance 14,498.7 13,735.6 12,266.5 15,692.3 19,616.3
------------ ------------ ------------ ------------ ------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 2,743.9 2,974.7 4,312.6 4,989.2 5,572.5
Outflows (5,750.9) (3,452.2) (4,480.0) (3,766.9) (7,023.7)
------------ ------------ ------------ ------------ ------------
Net Flows (3,007.0) (477.5) (167.4) 1,222.3 (1,451.2)
Performance 997.2 2,304.3 (2,178.9) (723.4) 631.8
Other 37.5 (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 (1,972.3) 1,806.9 (2,133.2) 877.4 (6,187.3)
Beginning Balance 16,866.5 15,059.6 17,192.8 16,315.4 22,502.7
------------ ------------ ------------ ------------ ------------
Ending Balance 14,894.2 16,866.5 15,059.6 17,192.8 16,315.4
------------ ------------ ------------ ------------ ------------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS: (1)
Inflows 6,669.8 6,987.8 10,246.8 9,371.1 11,510.4
Outflows (13,255.8) (8,148.6) (9,575.6) (8,763.2) (11,723.3)
------------ ------------ ------------ ------------ ------------
Net Flows (6,586.0) (1,160.8) 671.2 607.9 (212.9)
Performance 2,923.0 5,788.1 (7,863.1) (7,254.5) (3,857.0)
Other 311.0 (202.1) (118.3) 123.7 (744.1)
Acquisitions (Divestitures) 7,422.0 854.5 (3,336.0)
------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (3,352.0) 4,425.2 111.8 (5,668.4) (8,150.0)
Beginning Balance 46,260.5 41,835.3 41,723.5 47,391.9 55,541.9
------------ ------------ ------------ ------------ ------------
Ending Balance $ 42,908.5 $ 46,260.5 $ 41,835.3 $ 41,723.5 $ 47,391.9
============ ============ ============ ============ ============
Variable Product Change in Assets Under Management
included in Mutual Funds above $ 211.7 $ 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
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------------- ---------------------------------------------------
Quarters ended March June September December March June September December
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 568.7 $ 551.3 $ 525.8 $ 622.5 $ 649.8 $ 457.8 $ 646.2 $ 356.1
Outflows (688.4) (612.6) (559.4) 796.2 (927.3) (1,162.9) (1,175.1) (1,937.7)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Flows (119.7) (61.3) (33.6) (173.7) (277.5) (705.1) (528.9) (1,581.6)
Performance (895.1) 1,341.4 239.4 851.8 315.9 131.1 (708.6) 1,211.9
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under
Management (1,014.8) 1,280.1 205.8 678.1 38.4 (574.0) (1,237.4) (369.7)
Beginning Balance 14,509.2 13,494.4 14,774.5 14,980.3 15,658.4 15,696.8 15,122.8 13,885.3
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 13,494.4 14,774.5 14,980.3 15,658.4 15,696.8 15,122.8 13,885.3 13,515.6
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
MUTUAL FUNDS: (1)
Inflows 341.3 431.2 539.7 432.6 611.9 367.4 344.2 492.4
Outflows (452.5) (457.3) (563.7) (566.4) (573.1) (650.8) (469.5) (608.6)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Flows (111.2) (26.1) (24.0) (133.8) 38.8 (283.4) (125.3) (116.2)
Performance (219.3) 1,152.5 248.7 764.5 347.9 (276.8) (22.1) 926.6
Other (74.3) (67.7) 2.4 (42.6) (57.6) 27.9 25.6 277.6
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under
Management (404.8) 1,058.7 227.1 588.1 329.1 (532.3) (121.8) 1,088.0
Beginning Balance 12,266.5 11,861.7 12,920.4 13,147.5 13,735.6 14,064.7 13,532.4 13,410.6
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 11,861.7 12,920.4 13,147.5 13,735.6 14,064.7 13,532.4 13,410.6 14,498.6
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 793.8 918.2 576.8 685.9 597.4 932.9 818.9 394.8
Outflows (640.9) (1,075.1) (722.2) (1,014.0) (798.5) (2,735.6) (928.7) (1,288.1)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Flows 152.9 (156.9) (145.4) (328.1) (201.1) (1,802.7) (109.8) (893.3)
Performance (276.6) 1,274.0 457.0 849.9 235.4 (161.2) 157.7 765.2
Other (1.7) (15.5) (2.7) (6.3) 56.6 (9.9) (2.9)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under
Management (123.7) 1,115.4 296.1 519.1 28.0 (1,907.3) 38.0 (131.0)
Beginning Balance 15,059.6 14,935.9 16,051.3 16,347.4 16,866.5 16,894.5 14,987.2 15,025.2
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 14,935.9 16,051.3 16,347.4 16,866.5 16,894.5 14,987.2 15,025.2 14,894.2
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
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 1,243.3
Outflows (1,781.8) (2,145.0) (1,845.3) (2,376.6) (2,298.9) (4,549.3) (2,573.3) (3,834.3)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Flows (78.0) (244.3) (203.0) (635.6) (439.8) (2,791.2) (764.0) (2,591.0)
Performance (1,391.0) 3,767.9 945.1 2,466.2 899.2 (306.9) (573.0) 2,903.7
Other (74.3) (69.4) (13.1) (45.3) (63.9) 84.5 15.7 274.7
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under
Management (1,543.3) 3,454.2 729.0 1,785.3 395.5 (3,013.6) (1,321.3) 587.4
Beginning Balance 41,835.3 40,292.0 43,746.2 44,475.2 46,260.5 46,656.0 43,642.4 42,321.1
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Balance $ 40,292.0 $ 43,746.2 $ 44,475.2 $ 46,260.5 $ 46,656.0 $ 43,642.4 $ 42,321.1 $ 42,908.5
============ ============ ============ ============ ============ ============ ============ ============
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) $ 244.7
============ ============ ============ ============ ============ ============ ============ ============
(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
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
-------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
SEGMENT INCOME
Operating Loss $ (1.8) $ (5.8) $ (7.4) $ (7.3) $ (7.8)
Realized Gains (Losses) on Cash and
Stock Distributions 7.4 4.9 (4.7) 26.2 222.2
Change in Unrealized Gains on Investments
Held in Partnerships 13.7 37.1 (47.2) (178.5) 62.9
------------ ------------ ------------ ------------ ------------
Equity in Partnership Earnings, before income taxes 19.3 36.2 (59.3) (159.6) 277.3
Applicable Income Taxes (Benefit) 6.7 12.7 (20.7) (55.9) 97.1
------------ ------------ ------------ ------------ ------------
Segment Income (Loss) 12.6 23.5 (38.6) (103.7) 180.2
============ ============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 37.7 31.0 42.2 47.0 97.0
Equity In Earnings of Partnerships 19.3 36.2 (59.3) (159.6) 277.3
Distributions (50.4) (32.2) (41.8) (63.0) (245.1)
Sale of Partnership Interests and Transfer to Closed Block (52.2)
Realized Loss on Sale of Partnership Interests and
Transfer to Closed Block (14.3) (5.0)
------------ ------------ ------------ ------------ ------------
Change in Venture Capital Investments 6.6 (31.5) (63.9) (175.6) 129.2
Beginning Balance 196.3 227.8 291.7 467.3 338.1
------------ ------------ ------------ ------------ ------------
Ending Balance 202.9 196.3 227.8 291.7 467.3
============ ============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 26.9 36.8 25.0 41.3
Telecom 8.0 13.3 10.2 19.1
Biotech 8.6 16.3 11.1 14.1
Healthcare 6.6 8.2 9.2 10.7
Consumer and Business Products and Services 29.6 29.6 45.9 46.6
Financial Services 20.7 28.5 28.1 30.3
Other 57.4 44.9 50.6 57.8
------------ ------------ ------------ ------------
Total Private Holdings 157.8 177.6 180.1 219.9
Public Holdings 20.7 11.3 23.0 39.8
Cash and Cash Equivalents 8.8 5.5 21.6 22.5
Other 15.6 1.9 3.1 9.5
------------ ------------ ------------ ------------
Total $ 202.9 $ 196.3 $ 227.8 $ 291.7
============ ============ ============ ============
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------------- ---------------------------------------------------
Quarters ended March June September December March June September December
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
SEGMENT INCOME
Operating Loss $ (.9) $ (2.6) $ (1.8) $ (.5) $ (.7) $ (1.4) $ .2 $ .2
Realized Gains (Losses)
on Cash and Stock
Distributions (6.2) 1.0 6.2 3.7 (3.4) 2.4 5.4 3.0
Change in Unrealized Gains
on Investments Held in
Partnership 31.0 7.4 .7 (1.9) 15.7 3.4 (9.5) 4.0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Equity in Partnership
Earnings, before
income taxes 23.9 5.8 5.1 1.3 11.6 4.4 (3.9) 7.2
Applicable Income Taxes
(Benefit) 8.4 2.0 1.8 .5 4.1 1.6 (1.4) 2.5
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) 15.5 3.8 3.3 .8 7.5 2.9 (2.5) 4.7
============ ============ ============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars
Invested) 11.6 9.9 6.0 3.5 7.9 12.6 8.5 8.7
Equity In Earnings of
Partnerships 23.9 5.8 5.1 1.3 11.6 4.4 (3.9) 7.2
Distributions (3.0) (5.7) (12.4) (11.0) (13.6) (13.0) (12.9) (10.9)
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) 5.0
Beginning Balance 227.8 194.3 203.8 202.5 196.3 202.2 206.2 197.9
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 194.3 203.8 202.5 196.3 202.2 206.2 197.9 202.9
============ ============ ============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Technology 23.5 36.6 37.3 36.8 32.6 27.6 24.6 26.9
Telecom 7.4 12.6 12.2 13.3 13.2 7.0 6.8 8.0
Biotech 9.8 14.9 15.8 16.3 16.7 8.7 7.9 8.6
Healthcare 6.7 8.0 7.8 8.2 7.7 6.6 6.3 6.6
Consumer and Business
Products and Services 32.0 29.6 27.8 29.6 35.2 35.0 32.1 29.6
Financial Services 29.7 28.2 29.2 28.5 29.1 22.2 20.9 20.7
Other 57.7 34.3 42.1 44.9 53.3 57.6 59.1 57.4
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Private Holdings 166.8 164.2 172.2 177.6 187.8 164.7 157.7 157.8
Public Holdings 11.4 15.6 18.1 11.3 12.6 15.4 14.8 20.7
Cash and Cash Equivalents 9.2 9.2 10.8 5.5 1.4 11.5 8.6 8.8
Other 6.9 14.8 1.4 1.9 0.4 14.6 16.8 15.6
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total $ 194.3 $ 203.8 $ 202.5 $ 196.3 $ 202.2 $ 206.2 $ 197.9 $ 202.9
============ ============ ============ ============ ============ ============ ============ ============
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
-------------------------------------------------------------------------
SEGMENT INCOME 2004 2003 2002 2001 2000
------------ ------------ ------------ ------------ ------------
Corporate Investment Income $ .4 $ 4.3 $ 1.5 $ 7.2 $ 36.7
Interest Expense on Indebtedness (40.8) (39.6) (31.4) (27.3) (32.7)
Corporate Expenses (18.9) (11.0) (10.4) (19.9) (53.5)
International 3.7 (1.4) 4.2 7.7 12.1
Other (3.5) (.1) (3.9) (2.4) (23.4)
------------ ------------ ------------ ------------ ------------
Segment Loss, Before Income Taxes (59.1) (47.8) (40.0) (34.7) (60.8)
Applicable Income Tax Benefit (22.9) (18.8) (29.8) (20.9) (37.2)
------------ ------------ ------------ ------------ ------------
Segment Loss $ (36.2) $ (29.0) $ (10.2) $ (13.8) $ (23.6)
============ ============ ============ ============ ============
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Fourth Quarter 2004 (unaudited)
($ in millions)
SEGMENT INCOME 2003 2004
Quarters ended --------------------------------------------------- ---------------------------------------------------
March June September December March June September December
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
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) $ (11.0)
Corporate Expenses .1 (3.1) (4.8) (3.3) (3.9) (4.3) (5.1) (5.6)
International (1.3) 1.0 (1.1) .1 (.2) 3.8
Other (.9) (.4) 1.6 (.3) (1.2) (.7) (1.7)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Segment Loss, Before
Income Taxes (11.4) (12.5) (10.5) (13.4) (12.7) (16.0) (15.9) (14.5)
Applicable Income Tax
Benefit (3.2) (4.6) (6.7) (4.3) (4.4) (6.0) (5.2) (7.5)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Segment Loss $ (8.2) $ (7.9) $ (3.8) $ (9.1) $ (8.3) $ (10.0) $ (10.7) $ (7.0)
============ ============ ============ ============ ============ ============ ============ ============
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT(1)
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
-------------------------------------------------------------------------
2004 2003 2002 2001 2000
------------ ------------ ------------ ------------- ------------
REVENUES
Premiums $ 990.6 $ 1,042.2 $ 1,082.0 $ 1,112.7 $ 1,147.4
Insurance and Investment Product Fees 534.9 500.9 493.8 469.7 559.1
Broker-dealer commission and distribution
fee revenues 56.9 81.5 85.0 96.3 97.3
Net Investment Income 1,075.7 1,107.4 940.5 882.9 1,131.9
Unrealized Gain on Trading Equity Securities 85.9
Net Realized Investment Gains (Losses) (.8) (98.5) (133.9) (84.9) 89.2
------------ ------------ ------------ ------------- ------------
Total Revenues 2,743.2 2,633.5 2,467.4 2,476.7 3,024.9
------------ ------------ ------------ ------------- ------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 1,422.2 1,454.0 1,436.1 1,406.7 1,409.8
Policyholder Dividends 404.7 418.8 401.8 400.1 378.0
Policy Acquisition Cost Amortization 110.2 94.1 59.2 133.0 356.0
Intangible Asset Impairments 66.3
Intangible Asset Amortization 33.8 33.2 32.5 49.4 36.9
Interest Expense on Indebtedness 40.8 39.6 31.4 27.3 32.7
Interest Expense on Non-recourse
Collateralized Obligations 33.6 48.9 30.5 42.3
Demutualization Expenses 25.9 21.8
Other Operating Expenses 560.7 565.1 613.2 654.1 631.9
------------ ------------ ------------ ------------- ------------
Total Expenses 2,606.0 2,653.7 2,671.0 2,738.8 2,867.1
------------ ------------ ------------ ------------- ------------
Income (Loss) from Continuing Operations
before Income Taxes, Minority Interest
and equity in undistributed earnings
(losses) of affiliates 137.2 (20.2) (203.6) (262.1) 157.8
Applicable Income Taxes (Benefit) 40.5 (18.3) (58.8) (108.7) 59.4
----------- ------------ ------------ ------------- -----------
Income (Loss) from Continuing Operations
before Minority Interest and equity in
undistributed earnings (losses) of affiliates 96.7 (1.9) (144.8) (153.4) 98.4
Minority Interest in Net Income of Subsidiaries (.4) (.5) (.3) (8.5)
Equity in undistributed earnings (losses) of affiliates (10.4) (1.8) 4.6 6.4 6.1
------------ ------------ ------------ ------------- ------------
Income (Loss) from Continuing Operations 86.3 (4.1) (140.7) (147.3) 96.0
Discontinued Operations
Income (Loss) from Discontinued Operations .1 (2.1) (1.3) (2.5) 8.2
Loss on Disposal (20.9)
------------ ------------ ------------ ------------- ------------
Income (Loss) Before Cumulative Effect of
Accounting Changes 86.4 (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) $ 86.4 $ (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)
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
---------------------------------------------- --------------------------------------------
Quarters ended March June September December March June September December
---------- ---------- ---------- ---------- --------- ---------- --------- ----------
REVENUES
Premiums $ 246.1 $ 248.5 $ 286.9 $ 260.7 $ 232.7 $ 238.2 $ 268.8 $ 250.9
Insurance and Investment
Product Fees 118.3 117.6 126.9 138.1 136.1 134.0 130.1 134.7
Broker-dealer commission and
distribution fee revenues 17.8 19.4 21.0 23.3 24.3 20.2 5.7 6.7
Net Investment Income 291.1 277.7 267.2 271.4 275.4 260.1 266.4 273.8
Unrealized Gain on Trading
Equity Securities 85.9
Net Realized Investment
Gains (Losses) (12.0) (105.5) (3.4) 22.4 2.5 14.4 (9.1) (8.6)
---------- ---------- ---------- ---------- --------- ---------- --------- ----------
Total Revenues 661.3 557.7 698.6 715.9 671.0 666.9 661.9 743.4
---------- ---------- ---------- ---------- --------- ---------- --------- ----------
BENEFITS AND EXPENSES
Policy Benefits and Increase
in Policy Liabilities 350.8 348.4 389.0 365.8 345.6 341.3 373.3 362.0
Policyholder Dividends 116.5 94.2 99.5 108.6 105.9 105.3 98.6 94.9
Policy Acquisition Cost Amortization 28.0 25.9 22.7 17.5 22.6 23.1 30.6 33.9
Intangible Asset Amortization 8.4 8.2 8.3 8.3 8.3 8.3 8.5 8.7
Interest Expense on Indebtedness 9.8 9.9 9.8 10.1 9.8 9.9 10.1 11.0
Interest Expense on Non-recourse
Collateralized Obligations 13.3 12.6 11.9 11.1 8.9 7.5 9.1 8.1
Other Operating Expenses 133.1 142.3 138.0 151.7 149.1 150.2 123.9 137.5
---------- ---------- ---------- ---------- --------- ---------- --------- ----------
Total Expenses 659.9 641.5 679.2 673.1 650.2 645.6 654.1 656.1
---------- ---------- ---------- ---------- --------- ---------- --------- ----------
Income (Loss) from Continuing
Operations before Income
Taxes, Minority Interest and
equity in undistributed earnings
(losses) of affiliates 1.4 (83.8) 19.4 42.8 20.8 21.3 7.8 87.3
Applicable Income Taxes (Benefit) (2.2) (34.2) 5.8 12.3 6.3 6.6 (.1) 27.7
---------- ---------- ---------- ---------- --------- ---------- --------- ----------
Income (Loss) from Continuing
Operations before Minority
Interest and equity in
undistributed earnings (losses)
of affiliates 3.6 (49.6) 13.6 30.5 14.5 14.7 7.9 59.6
Equity in undistributed earnings
(loss) of affiliates (1.9) .8 (.7) 1.8 (.1) (.8) (11.3)
Minority Interest in Net
Income of Subsidiaries (.4)
---------- ---------- ---------- ---------- --------- ---------- --------- ----------
Income (Loss) from Continuing Operation 1.7 (49.2) 13.6 29.8 16.3 14.6 7.1 48.3
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 $ 48.3
========== ========== ========== ========== ========= ========== ========= ==========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING FOURTH QUARTER 2004 INCOME STATEMENT
Fourth Quarter 2004 (unaudited)
($ in millions)
Exclusions from
Year-to-Date December 31, 2004 Operating Segments Other Segments Segment Income
------------------------- ----------------------- ---------------------------------------
Life Corporate Realized
& Asset Venture & Investment Intra-Segment
Consolidated Annuity Management Capital Other Losses Other Eliminations
------------ ------------ ------------ ----------- ----------- ------------ ----------- --------------
REVENUES
Premiums $ 990.6 $ 990.6
Insurance and Investment
Product Fees 534.9 296.9 $ 237.7 $ 6.0 $ (5.7)
Broker-dealer commission and
distribution fee revenues 56.9 28.8 28.1
Net Investment Income 1,075.7 996.5 .9 $ 19.3 51.7 $ (4.2) 11.5
Unrealized Gain on Trading
Equity Securities 85.9 $ 85.9
Net Realized Investment Gains (.8) .4 (1.2)
---------- ---------- ----------- --------- -------- --------- -------- -----------
Total Revenues 2,743.2 2,312.8 266.7 19.3 57.7 86.3 (5.4) 5.8
---------- ---------- ----------- --------- -------- --------- -------- -----------
BENEFITS AND EXPENSES
Policy Benefits and Increase
in Policy Liabilities 1,422.2 1,413.8 8.4
Policyholder Dividends 404.7 401.0 3.7
Policy Acquisition Cost
Amortization 110.2 110.6 (.4)
Intangible Asset Amortization 33.8 33.8
Interest Expense on Indebtedness 40.8 40.8
Interest Expense on
Non-recourse Collateralized
Obligations 33.6 33.6
Other Operating Expenses 560.7 244.6 232.8 34.0 43.5 5.8
---------- ---------- ----------- --------- -------- --------- -------- -----------
Total Expenses 2,606.0 2,170.0 266.6 116.8 3.3 43.5 5.8
---------- ---------- ----------- --------- -------- --------- -------- -----------
Income (Loss) from Continuing
Operations before Income
Taxes and equity in
undistributed earnings
(losses) of affiliates 137.2 142.8 .1 19.3 (59.1) 83.0 (48.9)
Applicable Income Taxes
(Benefit) 40.5 36.4 2.3 6.7 (22.9) 34.3 (16.3)
---------- ---------- ----------- --------- -------- --------- -------- -----------
Income (Loss) from Continuing
Operations before equity in
undistributed earnings
(losses) of affiliates 96.7 106.4 (2.2) 12.6 (36.2) 48.7 (32.6)
Equity in undistributed
earnings (losses) of
affiliates (10.4) (10.4)
---------- ---------- ----------- --------- -------- --------- -------- -----------
Income (Loss) from Continuing
Operations $ 86.3 $ 106.4 $ (2.2) $ 12.6 $ (36.2) $ 48.7 $ (43.0)
========== ========== =========== ========= ======== ========= ======== ===========
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Fourth Quarter 2004 (unaudited)
($ in millions, except par value)
December 31,
----------------------------------------------------------------------------
2004 2003 2002 2001 2000
---------------- -------------- -------------- -------------- --------------
ASSETS:
Available-for-Sale Debt Securities, at fair value $ 13,476.3 $ 13,273.0 $ 11,889.5 $ 9,774.1 $ 6,022.3
Held-to-Maturity Debt Securities, at amortized cost 2,109.6
Available-for-Sale Equity Securities, at fair value 304.3 312.0 385.9 287.7 335.5
Trading Equity Securities, at fair value 87.3
Mortgage Loans, at unpaid principal balances 207.9 284.1 468.8 535.8 593.4
Policy Loans, at unpaid principal balances 2,196.7 2,241.4 2,195.9 2,172.2 2,105.2
Venture Capital Partnerships, at equity in net assets 255.3 234.9 228.6 291.7 467.3
Affiliate Equity and Debt Securities, at cost plus
equity in undistributed earnings 47.5 134.7 150.6 103.0
Other Investments 371.8 402.0 398.9 376.0 313.6
-------------- -------------- -------------- -------------- ---------------
16,899.6 16,794.9 15,702.3 13,588.1 12,049.9
Available-for-Sale Investments Pledged as
Collateral, at fair value 1,278.8 1,350.0 1,358.7 550.6
-------------- -------------- -------------- -------------- ---------------
Total Investments 18,178.4 18,144.9 17,061.0 14,138.7 12,049.9
Cash and Cash Equivalents 435.0 447.9 1,110.5 823.3 717.6
Deferred Policy Acquisition Costs 1,429.9 1,367.7 1,234.1 1,123.7 1,019.0
Goodwill and Other Intangible Assets 735.6 755.0 747.7 858.6 582.6
Other Assets 633.4 760.5 711.4 566.1 567.8
Separate Account Assets 6,950.3 6,083.2 4,371.2 5,025.2 5,376.6
-------------- -------------- -------------- -------------- ---------------
Total Assets 28,362.6 27,559.2 25,235.9 22,535.6 20,313.5
============== ============== ============== ============== ===============
LIABILITIES:
Policy Liabilities and Accruals 13,132.3 13,088.6 12,680.0 11,846.4 11,372.6
Policyholder Deposit Funds 3,492.4 3,642.7 3,395.7 1,515.2 678.4
Indebtedness 690.8 639.0 644.3 599.3 425.1
Stock Purchase Contracts 131.9 128.8 137.6
Other Liabilities 587.3 557.1 570.8 614.1 619.9
Non-recourse Collateralized Debt Obligation
Liabilities 1,355.2 1,472.0 1,609.5 632.7
Separate Account Liabilities 6,950.3 6,083.2 4,371.2 5,020.1 5,376.6
-------------- -------------- -------------- -------------- ---------------
Total Liabilities and minority interest 26,340.2 25,611.4 23,409.1 20,227.8 18,472.6
-------------- -------------- -------------- -------------- ---------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion shares
authorized; 94,878,000 shares outstanding
(December 31, 2004) 1.0 1.0 1.0 1.0
Additional paid in capital 2,435.2 2,431.4 2,424.4 2,413.3
Deferred Compensation on Restricted Stock Units (3.6) (3.6)
Accumulated Earnings (Deficit) (285.6) (355.3) (331.4) (43.3) 1,820.7
Treasury stock, at cost: 11,517,387 shares
(December 31, 2004) (182.6) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income (Loss) 58.0 63.7 (71.5) 2.8 20.2
-------------- -------------- -------------- -------------- ---------------
Total Stockholders' Equity 2,022.4 1,947.8 1,826.8 2,307.8 1,840.9
-------------- -------------- -------------- -------------- ---------------
Total Liabilities, Minority Interest
and Stockholders' Equity $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6 $ 20,313.5
============== ============== ============== ============== ===============
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY(1)
Fourth Quarter 2004 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
12/31/04 12/31/2003 12/31/04 12/31/2003 12/31/04 12/31/2003
-------------- -------------- -------------- -------------- -------------- --------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 8,668.9 $ 8,821.2 $ 7,123.2 $ 7,442.1 $ 1,545.7 $ 1,379.1
BBB 3,733.3 3,350.8 2,493.6 2,160.6 1,239.7 1,190.2
-------------- -------------- -------------- -------------- -------------- --------------
Total Investment Grade 12,402.2 12,172.0 9,616.8 9,602.7 2,785.4 2,569.3
BB 814.6 764.9 698.6 635.5 116.0 129.4
B 150.9 218.9 97.3 157.8 53.6 61.1
CCC and Lower 68.9 94.6 51.1 53.7 17.8 40.9
In or Near Default 39.7 22.6 36.1 19.0 3.6 3.6
-------------- -------------- -------------- -------------- -------------- --------------
Total Debt Securities $ 13,476.3 $ 13,273.0 $ 10,499.9 $ 10,468.7 $ 2,976.4 $ 2,804.3
============== ============== ============== ============== ============== ==============
% Below Investment Grade 8.0% 8.3% 8.4% 8.3% 6.4% 8.4%
- ------------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT
AND EQUITY SECURITIES
As of December 31, 2004 Total Outside Closed Block Closed Block
----------------------------- ----------------------------- -----------------------------
Gains Losses Gains Losses Gains Losses
-------------- -------------- -------------- -------------- -------------- --------------
Total Debt Securities $ 654.5 $ (69.9) $ 195.0 $ (44.8) $ 459.5 $ (25.1)
Equity Securities 108.3 (3.3) 94.0 (1.5) 14.3 (1.8)
-------------- -------------- -------------- -------------- -------------- --------------
Total Unrealized Gains (Losses) 762.8 (73.2) 289.0 (46.3) 473.8 (26.9)
-------------- -------------- -------------- -------------- -------------- --------------
Applicable Policyholder Dividend
Obligation 473.8 (26.9) 473.8 (26.9)
Applicable Deferred Acquisition
Cost (Credit) 100.3 (16.5) 100.3 (16.5)
Applicable Deferred Income Tax
(Benefit) 66.0 (10.4) 66.0 (10.4)
-------------- -------------- -------------- -------------- -------------- --------------
Total Offsets to Net Unrealized
Gains (Losses) 640.1 (53.8) 166.3 (26.9) 473.8 (26.9)
-------------- -------------- -------------- -------------- -------------- --------------
Net Unrealized Gains (Losses) $ 122.7 $ (19.4) $ 122.7 $ (19.4) $ - $ -
============== ============== ============== ============== ============== ==============
$ 103.3 $ 103.3 $ -
============== ============== ==============
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS(1)
Fourth Quarter 2004 (Quarters unaudited)
($ in millions)
2003 2004
--------------------------------------------------- ---------------------------------------------------
Quarters ended March June September December March June September December
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 187.1 $ 199.1 $ 184.0 $ 195.3 $ 191.7 $ 191.8 $ 192.4 $ 196.2
Equity Securities 3.6 .9 .9 1.5 .4 1.6 1.1 1.4
Mortgages 12.1 7.3 7.0 6.2 5.9 5.4 5.9 5.3
Policy Loans 42.6 42.6 42.2 44.3 42.2 41.7 42.3 40.9
Venture Capital 28.9 6.5 10.2 3.5 17.6 1.8 (3.7) 9.8
Cash & Cash Equivalents 3.1 1.4 1.4 1.1 .7 1.0 1.4 1.8
Other (2) 4.5 8.6 11.0 8.1 9.6 11.0 18.3 9.9
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cash and Invested
Assets 281.9 266.4 256.7 260.0 268.1 254.3 257.7 265.3
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Investment Expenses 3.0 2.7 2.6 2.0 2.8 1.9 2.4 2.7
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Net Investment Income $ 278.9 $ 263.7 $ 254.1 $ 258.0 $ 265.3 $ 252.4 $ 255.3 $ 262.6
============ ============ ============ ============ ============ ============ ============ ============
ANNUALIZED YIELDS
Debt Securities 6.2% 6.1% 5.8% 6.1% 5.9% 5.9% 6.0% 6.0%
Equity Securities 3.9% 1.0% 1.0% 1.8% 0.5% 2.0% 1.4% 1.6%
Mortgages 9.1% 8.0% 8.6% 8.4% 8.9% 8.5% 10.3% 10.3%
Policy Loans 8.1% 8.0% 7.9% 8.3% 7.9% 7.7% 7.9% 7.7%
Venture Capital 67.9% 11.9% 18.7% 6.1% 34.0% 2.9% -5.8% 17.0%
Cash & Cash Equivalents 1.5% 0.9% 0.9% 0.8% 0.7% 0.8% 1.0% 1.6%
Other (2) 3.4% 7.0% 10.3% 7.8% 10.7% 9.9% 18.2% 10.4%
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cash and Invested
Assets 6.8% 6.2% 6.1% 6.3% 6.4% 6.0% 6.2% 6.3%
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Investment Expenses 0.1% 0.1% 0.1% 0.0% 0.1% 0.1% 0.2% 0.2%
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Net Investment Income 6.7% 6.1% 6.0% 6.4% 6.3% 5.9% 6.0% 6.2%
============ ============ ============ ========================== ============ ============ ============
(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
Fourth Quarter 2004 (unaudited)
($ in millions)
December 31,
--------------------------------------------------------------------------
2004 2003 2002 2001 2000
-------------- -------------- -------------- -------------- --------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (15.5) $ (76.1) $ (114.3) $ (46.1) $ (7.5)
Equity Security Impairments (1.5) (4.3) (9.8)
Affiliated Equity Securities (12.6) (96.9)
Venture Capital Partnerships Impairments (4.6) (5.1)
Mortgage Loan Impairments (4.1) (.6) (6.1) (1.8)
Real Estate Impairments (6.6) (6.1)
Debt and Equity Securities Pledged as Collateral
Impairments (16.6) (8.3) (34.9) (39.0)
Other Invested Asset Impairments (3.3) (9.9) (22.0) (3.7)
-------------- -------------- -------------- -------------- --------------
Total Impairment Losses (49.5) (210.8) (186.7) (94.9) (15.4)
-------------- -------------- -------------- -------------- --------------
Debt Security Net Transaction Gains (Losses) 28.4 64.7 48.4 21.7 (46.9)
Equity Security Net Transaction Gains (Losses) 14.6 49.2 2.1 (8.8) 146.8
Venture Capital Net Investment Gains (Losses) (9.7)
Mortgage Loan Net Transaction Gains (Losses) .2 (1.3) .2 7.1 4.8
Real Estate Net Transaction Gains (Losses) (.8) (.2) 4.0 (2.5) 1.8
Other Invested Asset Net Transactions Gains (Losses) 6.3 9.6 (1.9) (7.5) (1.9)
-------------- -------------- -------------- -------------- --------------
Total Net Transactions Gains 48.7 112.3 52.8 10.0 104.6
-------------- -------------- -------------- -------------- --------------
Net Realized Investment Gains (Losses) (.8) (98.5) (133.9) (84.9) 89.2
============== ============== ============== ============== ==============
Closed Block Applicable PDO (Reduction) 3.7 (5.9) (40.3) (15.4)
Applicable Deferred Acquisition Costs (Credit) (.4) (4.1) (7.2) 10.5 (10.7)
Applicable Deferred Income Tax (Credit) 3.1 (35.6) (20.8) (24.5) 32.9
-------------- -------------- -------------- -------------- --------------
Net Realized Investment Gains (Losses) Included
in Net Income (1) $ (7.2) $ (52.9) $ (65.6) $ (55.5) $ 67.0
============== ============== ============== ============== ==============
(1) Includes realized losses on our equity interest in Aberdeen of $55.0 million
in 2003.
32
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Fourth Quarter 2004 (unaudited)
($ in millions)
2003 2004
--------------------------------------------------- -------------------------------------------------
Quarters ended March June September December March June September December
------------ ------------ ------------ ------------ ----------- ----------- ------------ ------------
REALIZED INVESTMENT GAINS
AND LOSSES
Debt Security Impairments $ (25.6) $ (19.8) $ (13.5) $ (20.3) $ (2.8) $ (1.2) $ (4.6) $ (6.9)
Equity Security Impairments (1.1) (3.2) (1.5)
Affiliated Equity Securities (96.9) (12.6)
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) (21.0)
------------ ------------ ------------ ------------ ----------- ----------- ------------ ------------
Debt Security Net
Transaction Gains 41.3 5.2 11.1 7.1 7.0 6.1 3.7 11.6
Equity Security Net
Transaction Gains (Losses) (.2) 7.4 4.9 37.1 2.2 9.5 .2 2.7
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) (.2)
Other Invested Asset Net
Transactions Gains (Losses) (2.9) 5.6 1.7 5.2 3.9 4.2 (.1) (1.7)
------------ ------------ ------------ ------------ ----------- ----------- ------------ ------------
Total Net Transactions Gains 28.8 17.2 17.1 49.2 13.3 19.2 3.8 12.4
------------ ------------ ------------ ------------ ----------- ----------- ------------ ------------
Net Realized Investment
Gains (Losses) (12.1) (104.8) (3.2) 21.7 2.5 14.4 (9.1) (8.6)
============ ============ ============ ============ =========== =========== ============ ============
Closed Block Applicable PDO
(Reduction) 8.5 (9.5) (3.5) (1.4) .1 7.2 (2.5) (1.1)
Applicable Deferred
Acquisition Costs (Credit) .4 1.3 (2.8) (3.0) .4 (1.2) (.1) .5
Applicable Deferred Income
Tax (Credit) (8.0) (37.2) 1.3 8.4 1.2 4.2 2.0 (4.3)
------------ ------------ ------------ ------------ ----------- ----------- ------------ ------------
Net Realized Investment
Gains (Losses) Included
in Net Income (1) $ (13.0) $ (59.4) $ 1.8 $ 17.7 $ .8 $ 4.2 $ (8.5) $ (3.7)
============ ============ ============ ============ =========== =========== ============ ============
(1) Includes realized losses on our equity interest in Aberdeen of $55.0
million in 2003.
33