Exhibit 99.1
FINANCIAL SUPPLEMENT
THE PHOENIX COMPANIES, INC.
March 31, 2005
[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
Fox-Pitt, Kelton John Nadel
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
MARCH 2005 (UNAUDITED)
TABLE OF CONTENTS
-----------------
FINANCIAL HIGHLIGHTS......................................................... 1
INCOME STATEMENT............................................................. 2
LIFE AND ANNUITY EARNINGS SUMMARY............................................ 4
VARIABLE UNIVERSAL LIFE................................................... 6
UNIVERSAL LIFE / INTEREST SENSITIVE....................................... 8
LIFE AND PRIVATE PLACEMENT SALES..........................................10
ANNUITIES.................................................................12
ANNUITIES - NET FLOWS AND FUNDS UNDER MANAGEMENT..........................14
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION................................16
ASSET MANAGEMENT.............................................................18
ASSET MANAGEMENT - NET FLOWS AND ASSETS UNDER MANAGEMENT.....................20
VENTURE CAPITAL SEGMENT......................................................22
CORPORATE AND OTHER..........................................................24
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT...............................26
CONSOLIDATING FIRST QUARTER 2005 INCOME STATEMENT............................28
CONDENSED CONSOLIDATED BALANCE SHEET.........................................29
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY.................................30
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS............................31
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES.........................32
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2005 (unaudited)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
YTD March --------------------------------------------------------
2005 2004 2003 2002 2001
----------- ----------- ----------- ----------- -----------
General Account Invested Assets $ 17,143.7 $ 17,334.6 $ 17,242.8 $ 16,812.8 $ 14,411.4
Separate Account Assets 7,073.2 6,950.3 6,083.2 4,371.2 5,025.2
Total Assets 28,365.9 28,362.6 27,559.2 25,235.9 22,535.6
Indebtedness 688.2 690.8 639.0 644.3 599.3
Total Stockholders' Equity 2,003.9 2,022.4 1,947.8 1,826.8 2,307.8
Total Stockholders' Equity excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 2,029.8 $ 2,018.5 $ 1,925.3 $ 1,937.1 $ 2,317.5
Debt to Total Capitalization 25.6% 25.5% 24.7% 24.1% 20.0%
Debt (Excluding Equity Units) to Total Capitalization 19.9% 19.8% 18.8% 18.3%
Book Value Per Share (1) $ 21.10 $ 21.31 $ 20.62 $ 19.43 $ 22.64
Book Value Per Share, excluding SFAS 115
and other accumulated OCI 20.81 20.70 19.96 20.19 22.62
Book Value Per Share, excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 21.37 $ 21.27 $ 20.39 $ 20.60 $ 22.74
Period-end Common Shares Outstanding (2) 95.0 94.9 94.4 94.0 101.9
=========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
Indebtedness:
Surplus Notes $ 204.1 $ 204.1 $ 175.0 $ 175.0 $ 175.0
Equity Units 153.7 153.7 153.7 153.7
Senior Unsecured Bonds 300.0 300.0 300.0 300.0 300.0
Interest Rate Swap 5.4 8.0 10.3 15.6 (0.8)
Bank Credit Facility 25.0 25.0 125.1
----------- ----------- ----------- ----------- -----------
Total Indebtedness $ 688.2 $ 690.8 $ 639.0 $ 644.3 $ 599.3
=========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE
INSURANCE COMPANY (3)
Capital, Surplus and Surplus Notes $ 866.4 $ 814.6 $ 762.9 $ 861.0 $ 1,149.8
Asset Valuation Reserve (AVR) 185.9 213.6 198.6 147.0 221.5
----------- ----------- ----------- ----------- -----------
Capital, Surplus, Surplus Notes and AVR 1,052.3 1,028.2 961.5 1,008.0 1,371.3
=========== =========== =========== =========== ===========
Policyholder Dividend Liability 406.7 403.3 408.5 403.0 395.8
Interest Maintenance Reserve (29.0) (31.3) (30.2) (2.0) 11.6
Statutory Gain From Operations 16.3 35.1 69.7 44.5 119.9
Statutory Net Income (Loss) $ 3.8 $ 47.1 $ 21.5 $ 7.5 $ (13.9)
===========
(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. March 2005
amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2005 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
SEGMENT INCOME
Life Insurance $ 40.4 $ 23.0 $ 134.5 $ 103.5 $ 101.0 $ 72.0
Annuity 3.6 2.8 8.3 (4.1) (20.7) 10.9
----------- ----------- ----------- ----------- ----------- -----------
Life and Annuity Segment 44.0 25.8 142.8 99.4 80.3 82.9
Asset Management Segment (1.7) .1 .1 (8.7) (69.9) (8.7)
Venture Capital Segment (2.2) 11.6 19.3 36.2 (59.3) (159.6)
Corporate and Other Segment (16.3) (12.7) (59.1) (47.8) (40.0) (34.7)
----------- ----------- ----------- ----------- ----------- -----------
Total Segment Income (Loss), Before Income Taxes 23.8 24.8 103.1 79.1 (88.9) (120.1)
Applicable Income Taxes (Benefit) 7.0 7.3 22.5 21.8 (28.5) (45.4)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL SEGMENT INCOME (LOSS) 16.8 17.5 80.6 57.3 (60.4) (74.7)
Net Realized Investment Gains (Losses) 1.1 1.8 5.7 3.2 (39.3) (43.0)
Realized Gains (Losses) - Investments Pledged as
Collateral Consolidated Under FIN 46-R .4 (1.0) (12.9) (2.4) (26.3) (12.5)
Realized and Unrealized Gains (Losses) on Equity
Investment in Aberdeen (7.0) 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 (1.9) (2.0) (21.9) (8.5) (28.5) (15.5)
Deferred Policy Acquisition Cost Adjustments 15.1
Expenses of Purchase of PXP Minority Interest (52.8)
Demutualization Related Items, Net (1.3) (2.9)
Other Income (Expense) 1.3 5.3
----------- ----------- ----------- ----------- ----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 9.4 16.3 86.3 (4.1) (140.7) (196.1)
Income (Loss) From Discontinued Operations .3 .1 (2.1) (1.3) (2.5)
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) Before Cumulative Effect
of Accounting changes 9.4 16.6 86.4 (6.2) (142.0) (198.6)
Cumulative Effect of Accounting changes (130.3) (16.6)
----------- ----------- ----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 9.4 $ 16.6 $ 86.4 $ (6.2) (272.3) $ (215.2)
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (1) 94.9 94.5 94.7 94.2 97.9 104.6
----------- ----------- ----------- ----------- ----------- -----------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.19 $ 0.85 $ 0.61 $ (0.62) $ (0.71)
Net Income (Loss) Per Share $ 0.10 $ 0.18 $ 0.91 $ (0.07) $ (2.78) $ (2.06)
Diluted
Weighted-Average Shares Outstanding and dilutive
potential common shares (1) (2) 102.3 102.0 100.8 96.6 97.9 104.6
----------- ----------- ----------- ----------- ----------- -----------
Total Segment Income (Loss) Per Share $ 0.16 $ 0.17 $ 0.80 $ 0.59 $ (0.62) $ (0.71)
Net Income (Loss) Per Share $ 0.09 $ 0.16 $ 0.86 $ (0.07) $ (2.78) $ (2.06)
===========
(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
First Quarter 2005 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
SEGMENT INCOME
Life Insurance $ 23.0 $ 29.9 $ 37.8 $ 43.7 $ 40.4
Annuity 2.8 3.9 3.0 (1.4) 3.6
----------- ----------- ----------- ----------- -----------
Life and Annuity Segment 25.8 33.8 40.8 42.3 44.0
Asset Management Segment .1 .1 .0 (.1) (1.7)
Venture Capital Segment 11.6 4.4 (3.9) 7.2 (2.2)
Corporate and Other Segment (12.7) (16.0) (15.9) (14.5) (16.3)
----------- ----------- ----------- ----------- -----------
Total Segment Income, Before Income Taxes 24.8 22.3 21.0 34.9 23.8
Applicable Income Taxes (Benefit) 7.3 5.7 .5 8.9 7.0
----------- ----------- ----------- ----------- -----------
TOTAL SEGMENT INCOME 17.5 16.6 20.5 26.0 16.8
Net Realized Investment Gains (Losses) 1.8 7.8 (.2) (3.7) 1.1
Realized Gains (Losses) - Investments Pledged
as Collateral Consolidated Under FIN 46-R (1.0) (3.6) (8.3) .4
Realized and Unrealized Gains (Losses) on
Equity Investment in Aberdeen .8 55.1 (7.0)
Share of Aberdeen's Extraordinary Charge for
FSA Setttlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and Early Retirement Costs (2.0) (7.0) (4.9) (8.0) (1.9)
----------- ----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 16.3 14.6 7.1 48.3 9.4
Income (Loss) From Discontinued Operations .3 (.2)
----------- ----------- ----------- ----------- -----------
NET INCOME $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4
=========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding 94.5 94.6 94.7 94.8 94.9
----------- ----------- ----------- ----------- -----------
Total Segment Income Per Share $ 0.19 $ 0.18 $ 0.22 $ 0.27 $ 0.18
Net Income Per Share $ 0.18 $ 0.15 $ 0.07 $ 0.51 $ 0.10
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares 102.0 101.3 99.2 100.3 102.3
----------- ----------- ----------- ----------- -----------
Total Segment Income Per Share $ 0.17 $ 0.16 $ 0.21 $ 0.26 $ 0.16
Net Income Per Share $ 0.16 $ 0.14 $ 0.07 $ 0.48 $ 0.09
===========
3
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
First Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
Variable Universal Life $ 9.1 $ 8.2 $ 35.7 $ 35.0 $ 35.9 $ 30.2
Universal Life (1) 10.3 1.9 34.4 21.7 26.3 17.4
Term Life .1 .3 3.4 3.8 4.7 1.3
Other Life and Annuity (2) 3.4 3.7 16.0 6.9 .8 1.7
----------- ----------- ----------- ----------- ----------- -----------
Total, Non-participating Life 22.9 14.1 89.5 67.4 67.7 50.6
Participating Life 17.5 8.9 45.0 36.1 33.3 21.4
----------- ----------- ----------- ----------- ----------- -----------
Total, Life Insurance 40.4 23.0 134.5 103.5 101.0 72.0
Annuities 3.6 2.8 8.3 (4.1) (20.7) 10.9
----------- ----------- ----------- ----------- ----------- -----------
Segment Income, before income taxes 44.0 25.8 142.8 99.4 80.3 82.9
Allocated Income Taxes (3) 14.0 7.2 36.4 31.1 28.0 28.8
----------- ----------- ----------- ----------- ----------- -----------
Segment Income $ 30.0 $ 18.6 $ 106.4 $ 68.3 $ 52.3 $ 54.1
=========== =========== =========== =========== =========== ===========
(1) Universal Life includes interest sensitive whole life contracts.
(2) Other Life and Annuity includes WS Griffith prior to 2005.
(3) Tax benefits related to tax advantaged investments have been allocated to
the Life and Annuity Segment beginning in the quarter ended March 2003.
4
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
First Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
Variable Universal Life $ 8.2 $ 8.5 $ 9.7 $ 9.5 $ 9.1
Universal Life (1) 1.9 10.9 8.7 12.9 10.3
Term Life .3 (1.1) .9 3.2 .1
Other Life and Annuity (2) 3.7 3.4 2.6 6.1 3.4
----------- ----------- ----------- ----------- -----------
Total, Non-participating Life 14.1 21.7 21.9 31.7 22.9
Participating Life 8.9 8.2 15.9 12.0 17.5
----------- ----------- ----------- ----------- -----------
Total, Life Insurance 23.0 29.9 37.8 43.7 40.4
Annuities 2.8 3.9 3.0 (1.4) 3.6
----------- ----------- ----------- ----------- -----------
Segment Income, before income taxes 25.8 33.8 40.8 42.3 44.0
Applicable Income Taxes 7.2 10.2 7.1 11.9 14.0
----------- ----------- ----------- ----------- -----------
Segment Income $ 18.6 $ 23.7 $ 33.7 $ 30.4 $ 30.0
=========== =========== =========== =========== ===========
(1) Universal Life includes interest sensitive whole life contracts.
(2) Other Life and Annuity includes WS Griffith prior to 2005.
5
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
PRE-TAX INCOME
Fees $ 7.4 $ 8.0 $ 29.6 $ 30.1 $ 31.4 $ 29.5
Cost of Insurance 19.0 18.3 74.6 72.1 66.4 60.0
Interest Earned 1.5 1.2 5.9 5.6 7.0 4.5
Surrender Charges 1.9 1.7 6.9 6.9 4.4 3.3
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 29.8 29.2 117.0 114.7 109.2 97.3
----------- ----------- ----------- ----------- ----------- -----------
Net Death and Disability Benefits 8.9 8.3 30.5 23.3 22.9 15.3
Incurred Expenses 10.6 11.7 47.1 52.8 45.9 48.2
Interest Credited 1.2 1.0 3.7 3.6 3.7 3.6
Minority Interest .8
----------- ----------- ----------- ----------- ----------- -----------
Total Expenses 20.7 21.0 81.3 79.7 73.3 67.1
----------- ----------- ----------- ----------- ----------- -----------
Pre-tax Income 9.1 8.2 35.7 35.0 35.9 30.2
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 3.6 4.0 16.3 21.4 36.6 29.5
Controllable Expenses and Other 6.8 9.2 34.0 44.6 60.8 60.1
----------- ----------- ----------- ----------- ----------- -----------
Total Current Expenses 10.4 13.2 50.3 66.0 97.4 89.6
Acquisition Costs Deferred (4.1) (6.6) (25.4) (33.9) (68.1) (65.4)
Acquisition Costs Amortized 4.3 5.1 22.2 20.8 16.6 24.0
----------- ----------- ----------- ----------- ----------- -----------
Incurred Expenses 10.6 11.7 47.1 52.8 45.9 48.2
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 63.3 67.0 245.4 353.4 465.7 336.1
Surrenders (27.4) (15.6) (75.3) (69.4) (37.6) (31.2)
Deaths (.9) (.4) (2.2) (1.4) (1.8) (1.7)
----------- ----------- ----------- ----------- ----------- -----------
Net Sales 35.0 51.0 167.9 282.6 426.3 303.2
Performance (9.3) 56.5 179.3 252.1 (149.8) (194.0)
Fees (7.5) (8.4) (30.6) (36.4) (35.8) (34.5)
Cost of Insurance (18.4) (17.7) (72.4) (69.8) (66.4) (60.0)
----------- ----------- ----------- ----------- ----------- -----------
Acquisitions
Change in Funds Under Management (0.2) 81.4 244.2 428.5 174.3 14.7
Beginning Balance 1,943.1 1,698.9 1,698.9 1,270.3 1,096.0 1,081.3
----------- ----------- ----------- ----------- ----------- -----------
Ending Balance 1,942.9 1,780.3 1,943.1 1,698.8 1,270.3 1,096.0
=========== =========== =========== =========== =========== ===========
LIFE INSURANCE IN FORCE $ 24,104.0 $ 24,388.2 $ 24,251.8 $ 24,603.0 $ 23,788.2 $ 20,436.1
=========== =========== =========== =========== =========== ===========
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
PRE-TAX INCOME
Fees $ 8.0 $ 7.3 $ 6.8 $ 7.5 $ 7.4
Cost of Insurance 18.3 18.5 18.7 19.2 19.0
Interest Earned 1.2 1.7 1.2 1.8 1.5
Surrender Charges 1.7 1.4 1.8 2.1 1.9
----------- ----------- ----------- ----------- -----------
Total Revenues 29.2 28.9 28.5 30.6 29.8
----------- ----------- ----------- ----------- -----------
Net Death and Disability Benefits 8.3 7.5 6.1 8.6 8.9
Incurred Expenses 11.7 11.9 11.7 11.7 10.6
Interest Credited 1.0 1.0 1.0 .8 1.2
----------- ----------- ----------- ----------- -----------
Total Expenses 21.0 20.4 18.8 21.1 20.7
----------- ----------- ----------- ----------- -----------
Pre-tax Income 8.2 8.5 9.7 9.5 9.1
=========== =========== =========== =========== ===========
-------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 4.0 4.2 3.0 5.1 3.6
Controllable Expenses and Other 9.2 9.3 8.4 7.1 6.8
----------- ----------- ----------- ----------- -----------
Total Current Expenses 13.2 13.5 11.4 12.2 10.4
Acquisition Costs Deferred (6.6) (6.6) (5.5) (6.7) (4.1)
Acquisition Costs Amortized 5.1 5.0 5.8 6.2 4.3
----------- ----------- ----------- ----------- -----------
Incurred Expenses 11.7 11.9 11.7 11.7 10.6
=========== =========== =========== =========== ===========
-------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 67.0 60.0 45.1 73.3 63.3
Surrenders (15.6) (15.0) (16.1) (28.6) (27.4)
Deaths (.4) (.4) (.6) (.8) (.9)
----------- ----------- ----------- ----------- -----------
Net Sales 51.0 44.6 28.4 43.9 35.0
Performance 56.5 10.0 (2.0) 114.8 (9.3)
Fees (8.4) (7.4) (7.0) (7.8) (7.5)
Cost of Insurance (17.7) (18.0) (18.0) (18.7) (18.4)
----------- ----------- ----------- ----------- -----------
Change in Funds Under Management 81.4 29.2 1.4 132.2 (.2)
Beginning Balance 1,698.9 1,780.3 1,809.5 1,810.9 1,943.1
----------- ----------- ----------- ----------- -----------
Ending Balance 1,780.3 1,809.5 1,810.9 1,943.1 1,942.9
=========== =========== =========== =========== ===========
LIFE INSURANCE IN FORCE $ 24,388.2 $ 24,355.6 $ 24,206.6 $ 24,251.8 $ 24,104.0
=========== =========== =========== =========== ===========
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
PRE-TAX INCOME
Fees $ 4.7 $ 4.5 $ 19.2 $ 17.3 $ 11.9 $ 8.6
Cost of Insurance 24.0 21.6 90.7 78.9 71.6 66.2
Interest Earned 25.4 24.0 100.3 98.3 108.4 111.9
Surrender Charges .5 .7 3.2 2.5 3.9 4.0
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 54.6 50.8 213.4 196.9 195.8 190.7
----------- ----------- ----------- ----------- ----------- -----------
Net Death Benefits and Supplemental Benefits 13.9 19.3 58.2 51.2 39.5 48.3
Incurred Expenses 12.0 10.4 46.2 46.0 44.3 34.6
Interest Credited 18.4 19.2 74.6 78.0 85.7 90.4
----------- ----------- ----------- ----------- ----------- -----------
Total Expenses 44.3 48.9 179.0 175.2 169.5 173.3
----------- ----------- ----------- ----------- ----------- -----------
Pre-tax Income 10.3 1.9 34.4 21.7 26.3 17.4
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 5.4 6.9 24.9 28.2 15.2 9.8
Controllable Expenses 13.9 17.1 64.4 75.0 52.6 32.1
----------- ----------- ----------- ----------- ----------- -----------
Total Current Expenses 19.3 24.0 89.3 103.2 67.8 41.9
Acquisition Cost Deferred (13.5) (17.7) (63.5) (74.9) (40.2) (20.0)
Acquisition Cost Amortized 6.2 4.1 20.4 17.7 16.7 12.7
----------- ----------- ----------- ----------- ----------- -----------
Incurred Expenses 12.0 10.4 46.2 46.0 44.3 34.6
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 54.9 54.7 229.4 217.8 149.3 104.6
Surrenders (23.3) (31.9) (126.2) (118.6) (107.4) (99.0)
Deaths (4.6) (3.3) (16.9) (19.4) (25.0) (18.5)
----------- ----------- ----------- ----------- ----------- -----------
Net Sales 27.0 19.5 86.3 79.8 16.9 (12.9)
Interest Credited 18.5 19.1 74.6 78.0 85.8 90.4
Fees (4.9) (5.4) (23.5) (24.9) (16.7) (10.5)
Cost of Insurance (24.0) (21.6) (90.7) (78.9) (71.6) (66.2)
----------- ----------- ----------- ----------- ----------- -----------
Change in Funds Under Management 16.6 11.6 46.7 54.0 14.4 .8
Beginning Balance 1,610.7 1,564.0 1,564.0 1,510.0 1,495.6 1,494.8
----------- ----------- ----------- ----------- ----------- -----------
Ending Fund Balance 1,627.3 1,575.6 1,610.7 1,564.0 1,510.0 1,495.6
=========== =========== =========== =========== =========== ===========
LIFE INSURANCE IN FORCE $ 14,328.7 $ 13,195.6 $ 14,103.7 $ 12,830.3 $ 10,476.7 $ 9,465.6
=========== =========== =========== =========== =========== ===========
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
First Quarter 2005 (unaudited)
($ in millions)
PRE-TAX INCOME 2004 2005
-------------------------------------------------------- -----------
Quarter ended March June September December March
----------- ----------- ----------- ----------- -----------
Fees $ 4.5 $ 4.8 $ 5.0 $ 5.0 $ 4.7
Cost of Insurance 21.6 22.5 22.8 23.8 24.0
Interest Earned 24.0 25.9 24.4 26.0 25.4
Surrender Charges .7 1.1 .5 .9 .5
----------- ----------- ----------- ----------- -----------
Total Revenues 50.8 54.3 52.7 55.7 54.6
----------- ----------- ----------- ----------- -----------
Net Death Benefits and Supplemental Benefits 19.3 12.3 13.1 13.4 13.9
Incurred Expenses 10.4 12.1 12.8 11.0 12.0
Interest Credited 19.2 19.0 18.1 18.4 18.4
----------- ----------- ----------- ----------- -----------
Total Expenses 48.9 43.4 44.0 42.8 44.3
----------- ----------- ----------- ----------- -----------
Pre-tax Income 1.9 10.9 8.7 12.9 10.3
=========== =========== =========== =========== ===========
-------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 6.9 6.2 4.0 7.9 5.4
Controllable Expenses 17.1 15.5 14.4 17.4 13.9
----------- ----------- ----------- ----------- -----------
Total Current Expenses 24.0 21.7 18.4 25.3 19.3
Acquisition Cost Deferred (17.7) (14.5) (11.9) (19.4) (13.5)
Acquisition Cost Amortized 4.1 4.9 6.3 5.1 6.2
----------- ----------- ----------- ----------- -----------
Incurred Expenses 10.4 12.1 12.8 11.0 12.0
=========== =========== =========== =========== ===========
-------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 54.7 55.7 56.2 62.8 54.9
Surrenders (31.9) (37.0) (27.7) (29.6) (23.3)
Deaths (3.3) (3.7) (7.5) (2.4) (4.6)
----------- ----------- ----------- ----------- -----------
Net Sales 19.5 15.0 21.0 30.8 27.0
Interest Credited 19.1 19.0 18.1 18.4 18.5
Fees (5.4) (5.8) (5.3) (7.0) (4.9)
Cost of Insurance (21.6) (22.5) (22.8) (23.8) (24.0)
----------- ----------- ----------- ----------- -----------
Change in Funds Under Management 11.6 5.7 11.0 18.4 16.6
Beginning Balance 1,564.0 1,575.6 1,581.3 1,592.3 1,610.7
----------- ----------- ----------- ----------- -----------
Ending Fund Balance 1,575.6 1,581.3 1,592.3 1,610.7 1,627.3
=========== =========== =========== =========== ===========
LIFE INSURANCE IN FORCE $ 13,195.6 $ 13,431.3 $ 13,725.6 $ 14,103.7 $ 14,328.7
=========== =========== =========== =========== ===========
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
First Quarter 2005 (unaudited)
($ in millions)
LIFE INSURANCE SALES YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
WHOLESALER CHANNEL
Variable Universal Life $ 6.2 $ 4.5 $ 18.2 $ 30.1 $ 62.5 $ 53.8
Universal Life/Interest Sensitive 10.8 13.1 47.4 67.5 36.9 14.5
Term Life 3.8 3.9 15.3 19.2 15.1 11.4
Participating Whole Life 0.6 4.8 9.7
----------- ----------- ----------- ----------- ----------- -----------
Life Insurance Annualized Premium (1) 20.8 21.5 81.0 117.4 119.3 89.4
=========== =========== =========== =========== =========== ===========
Variable Universal Life .8 2.5 10.8 20.1 25.1 49.7
Universal Life/Interest Sensitive 8.5 11.1 53.2 61.6 29.9 14.5
Participating Whole Life 0.8 2.4
----------- ----------- ----------- ----------- ----------- -----------
Life Insurance Single Premium 9.3 13.6 64.0 81.7 55.8 66.6
=========== =========== =========== =========== =========== ===========
Variable Universal Life 7.0 7.0 29.0 50.1 87.6 103.5
Universal Life/Interest Sensitive 19.3 24.2 100.7 129.2 66.8 29.0
Term Life 3.8 3.9 15.3 19.2 15.1 11.4
Participating Whole Life 0.6 5.6 12.1
----------- ----------- ----------- ----------- ----------- -----------
Total Wholesaler Life Insurance Premium (2) 30.1 35.1 145.0 199.2 175.1 156.0
=========== =========== =========== =========== =========== ===========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 14.3 17.4 60.0 149.5 222.5 83.7
Annuity 487.6 28.8 152.6 394.9 142.6 164.0
----------- ----------- ----------- ----------- ----------- -----------
Total Private Placement Life and Annuity Deposits 501.9 46.2 212.6 544.4 365.1 247.7
=========== =========== =========== =========== =========== ===========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 2,414.5 $ 1,642.8 $ 1,898.5 $ 1,535.5 $ 864.7 $ 494.1
=========== =========== =========== =========== =========== ===========
(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
First Quarter 2005 (unaudited)
($ in millions)
LIFE INSURANCE SALES
Quarters ended 2004 2005
-------------------------------------------------------- -----------
March June September December March
----------- ----------- ----------- ----------- -----------
WHOLESALER CHANNEL
Variable Universal Life $ 4.5 $ 5.0 $ 3.1 $ 5.6 $ 6.2
Universal Life/Interest Sensitive 13.1 10.5 10.4 13.4 10.8
Term Life 3.9 4.0 3.3 4.2 3.8
----------- ----------- ----------- ----------- -----------
Life Insurance Annualized Premium (1) 21.5 19.5 16.8 23.2 20.8
=========== =========== =========== =========== ===========
Variable Universal Life 2.5 2.6 2.0 3.7 .8
Universal Life/Interest Sensitive 11.1 14.4 13.3 14.4 8.5
----------- ----------- ----------- ----------- -----------
Life Insurance Single Premium 13.6 17.0 15.3 18.1 9.3
=========== =========== =========== =========== ===========
Variable Universal Life 7.0 7.5 5.1 9.3 7.0
Universal Life/Interest Sensitive 24.2 25.0 23.7 27.8 19.3
Term Life 3.9 4.0 3.3 4.2 3.8
----------- ----------- ----------- ----------- -----------
Total Wholesaler Life Insurance Premium (2) $ 35.1 $ 36.5 $ 32.1 $ 41.3 $ 30.1
=========== =========== =========== =========== ===========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 17.4 14.5 3.0 25.1 14.3
Annuity 28.8 70.9 41.0 12.0 487.6
----------- ----------- ----------- ----------- -----------
Total Private Placement Life and Annuity Deposits $ 46.2 $ 85.4 $ 44.0 $ 37.1 $ 501.9
=========== =========== =========== =========== ===========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,642.8 $ 1,720.2 $ 1,788.6 $ 1,898.5 $ 2,414.5
=========== =========== =========== =========== ===========
(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
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
PRE-TAX INCOME
Fees $ 16.2 $ 15.5 $ 63.4 $ 56.9 $ 57.1 $ 64.6
Interest Earned 38.2 35.4 146.6 139.4 98.3 40.3
Surrender Charges 1.9 1.1 5.8 7.4 6.6 3.9
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 56.3 52.0 215.8 203.7 162.0 108.8
----------- ----------- ----------- ----------- ----------- -----------
Mortality Cost 1.5 .9 8.9 4.3 10.9 4.3
Incurred Expenses 23.3 20.6 81.6 77.3 79.8 54.4
Interest Credited 27.9 27.7 117.0 126.2 92.0 39.2
----------- ----------- ----------- ----------- ----------- -----------
Total Expenses 52.7 49.2 207.5 207.8 182.7 97.9
----------- ----------- ----------- ----------- ----------- -----------
Pre-tax Income (Loss) 3.6 2.8 8.3 (4.1) (20.7) 10.9
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 9.8 12.6 42.6 51.1 81.3 44.0
Controllable Expenses 8.3 15.9 47.6 65.3 66.5 75.2
----------- ----------- ----------- ----------- ----------- -----------
Total Current Expenses 18.1 28.5 90.2 116.4 147.8 119.2
Acquisition Cost Deferred (8.2) (15.0) (43.7) (65.5) (102.9) (83.8)
Acquisition Cost Amortized 13.4 7.1 35.1 26.4 34.9 19.0
----------- ----------- ----------- ----------- ----------- -----------
Incurred Expenses $ 23.3 $ 20.6 $ 81.6 $ 77.3 $ 79.8 $ 54.4
=========== =========== =========== =========== =========== ===========
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
First Quarter 2005 (unaudited)
($ in millions)
PRE-TAX INCOME
Quarters ended 2004 2005
-------------------------------------------------------- -----------
March June September December March
----------- ----------- ----------- ----------- -----------
Fees $ 15.5 $ 15.7 $ 15.9 $ 16.3 $ 16.2
Interest Earned 35.4 35.3 37.6 38.4 38.2
Surrender Charges 1.1 1.4 2.1 1.2 1.9
----------- ----------- ----------- ----------- -----------
Total Revenues 52.0 52.3 55.6 55.9 56.3
----------- ----------- ----------- ----------- -----------
Mortality Cost .9 2.4 3.6 2.0 1.5
Incurred Expenses 20.6 15.8 19.8 25.5 23.3
Interest Credited 27.7 30.2 29.2 29.8 27.9
----------- ----------- ----------- ----------- -----------
Total Expenses 49.2 48.4 52.6 57.3 52.7
----------- ----------- ----------- ----------- -----------
Pre-tax Income (Loss) 2.8 3.9 3.0 (1.4) 3.6
=========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 12.6 10.3 9.9 9.8 9.8
Controllable Expenses 15.9 12.5 9.9 9.3 8.3
----------- ----------- ----------- ----------- -----------
Total Current Expenses 28.5 22.8 19.8 19.1 18.1
Acquisition Cost Deferred (15.0) (12.7) (7.9) (8.0) (8.2)
Acquisition Cost Amortized 7.1 5.7 7.9 14.4 13.4
----------- ----------- ----------- ----------- -----------
Incurred Expenses $ 20.6 $ 15.8 $ 19.8 $ 25.5 $ 23.3
=========== =========== =========== =========== ===========
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
First Quarter 2005 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
Annuities
Deposits $ 580.9 $ 215.0 $ 670.9 $ 1,428.1 $ 2,258.4 $ 1,492.9
Surrenders (220.9) (195.4) (774.4) (854.9) (736.7) (482.3)
----------- ----------- ----------- ----------- ----------- -----------
Net Sales 360.0 19.6 (103.5) 573.2 1,521.7 1,010.6
Performance and Interest Credited (1.9) 211.2 664.5 865.3 (338.0) (563.1)
Fees (16.2) (15.3) (59.8) (57.7) (58.8) (67.3)
Deaths (22.3) (23.2) (81.6) (70.4) (40.6) (34.3)
----------- ----------- ----------- ----------- ----------- -----------
Change in Funds Under Management 319.6 192.3 419.6 1,310.4 1,084.3 345.9
Beginning Balance 7,563.5 7,143.8 7,143.8 5,833.4 4,749.1 4,403.2
----------- ----------- ----------- ----------- ----------- -----------
Ending Balance $ 7,883.1 $ 7,336.1 $ 7,563.4 $ 7,143.8 $ 5,833.4 $ 4,749.1
=========== =========== =========== =========== =========== ===========
VA Funds in Guaranteed Interest Accounts (1) $ 1,873.8 $ 2,000.4 $ 1,939.1 $ 2,067.4 $ 2,159.3 $ 955.0
=========== =========== =========== =========== =========== ===========
Fixed Annuities (1) $ 1,038.0 $ 1,055.0 $ 1,038.2 $ 1,056.9 $ 737.2 $ 267.3
=========== =========== =========== =========== =========== ===========
(1) Amounts are included in the annuities funds under management table above.
14
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
FUNDS UNDER MANAGEMENT -------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
Annuities
Deposits $ 215.0 $ 208.9 $ 140.8 $ 106.2 $ 580.9
Surrenders (195.4) (171.3) (210.5) (197.2) (220.9)
----------- ----------- ----------- ----------- -----------
Net Sales 19.6 37.6 (69.7) (91.0) 360.0
Performance and Interest Credited 211.2 18.0 5.0 430.3 (1.9)
Fees (15.3) (14.0) (15.1) (15.4) (16.2)
Deaths (23.2) (21.8) (18.6) (18.0) (22.3)
----------- ----------- ----------- ----------- -----------
Change in Funds Under Management 192.3 19.8 (98.4) 305.9 319.6
Beginning Balance 7,143.8 7,336.1 7,355.9 7,257.5 7,563.5
----------- ----------- ----------- ----------- -----------
Ending Balance $ 7,336.1 $ 7,355.9 $ 7,257.5 $ 7,563.4 $ 7,883.1
=========== =========== =========== =========== ===========
VA Funds in Guaranteed Interest Accounts (1) $ 2,000.4 $ 1,974.2 $ 1,960.5 $ 1,939.1 $ 1,873.8
=========== =========== =========== =========== ===========
Fixed Annuities (1) $ 1,055.0 $ 1,047.9 $ 1,048.0 $ 1,038.2 $ 1,038.0
=========== =========== =========== =========== ===========
(1) Amounts are included in the annuities funds under management table above.
15
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 332.3 $ 330.8 $ 332.5 $ 329.3 $ 310.4 $ 252.8
Universal Life 269.2 232.3 262.0 219.2 163.1 134.7
Variable Annuities 292.8 296.3 296.7 289.0 264.9 211.4
Fixed Annuities 44.7 45.9 46.0 45.2 26.3 .4
Participating 542.1 550.3 541.7 551.0 554.6 517.4
Other 39.9 30.6 37.5 28.1 21.2 17.5
Offset for Unrealized Investment Gains (26.7) (127.7) (86.5) (94.1) (106.4) (10.5)
----------- ----------- ----------- ----------- ----------- -----------
Total $ 1,494.3 $ 1,358.5 $ 1,429.9 $ 1,367.7 $ 1,234.1 $ 1,123.7
=========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS (1)
Death Benefit in Excess of Fund Value $ 459.3 $ 564.4 $ 441.1 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value, Net of Reinsurance 130.1 166.4 123.5 183.0 234.9
Statutory Reserve, Net of Reinsurance 15.8 16.5 15.0 17.3 15.8
GAAP Reserve, Net of Reinsurance $ 9.3 $ 6.9 $ 9.1 $ 7.8 $ 8.7
-----------
(1) Comparable data is not available for 2001.
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 330.8 $ 332.4 $ 332.1 $ 332.5 $ 332.3
Universal Life 232.3 241.9 247.5 262.0 269.2
Variable Annuities 296.3 302.4 302.7 296.7 292.8
Fixed Annuities 45.9 46.8 46.4 46.0 44.7
Participating 550.3 549.1 544.5 541.7 542.1
Other 30.6 33.1 35.6 37.5 39.9
Adjustment for Unrealized Investment Gains and Losses (127.7) (40.4) (80.1) (86.5) (26.7)
----------- ----------- ----------- ----------- -----------
Total $ 1,358.5 $ 1,465.2 $ 1,428.7 $ 1,429.9 $ 1,494.3
=========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 564.4 $ 552.0 $ 576.4 $ 441.1 $ 459.3
Death Benefit in Excess of Fund Value, Net of Reinsurance 166.4 163.2 173.8 123.5 130.1
Statutory Reserve, Net of Reinsurance 16.5 17.1 18.5 15.0 15.8
GAAP Reserve, Net of Reinsurance $ 6.9 $ 7.7 $ 10.3 $ 9.1 $ 9.3
-----------
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
Investment Management Fees $ 49.5 $ 57.3 $ 219.0 $ 205.5 $ 219.2 $ 211.9
Mutual Funds - Ancillary Fees (1) 9.8 9.7 38.3 35.5 38.7 47.1
Other Revenue 1.3 2.8 7.7 9.3 10.2 12.9
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 60.6 69.8 265.0 250.3 268.1 271.9
----------- ----------- ----------- ----------- ----------- -----------
Employment Expenses 29.2 34.8 132.6 129.6 134.9 123.3
Other Operating Expenses (1) 21.9 23.3 85.9 86.7 93.4 103.0
Amortization of Intangibles 8.4 8.3 33.8 33.2 32.5 49.0
Intangible Asset Impairments 66.3
----------- ----------- ----------- ----------- ----------- -----------
Total Operating Expenses 59.5 66.4 252.3 249.5 327.1 275.3
----------- ----------- ----------- ----------- ----------- -----------
Management Income (Loss) 1.1 3.4 12.7 .8 (59.0) (3.4)
Other Income - Net .4 .4 1.7 2.5 1.0 1.6
Minority Interest (3.2) (3.7) (14.3) (12.0) (11.9) (6.9)
----------- ----------- ----------- ----------- ----------- -----------
Segment Income (Loss), before income taxes (1.7) .1 .1 (8.7) (69.9) (8.7)
Applicable Income taxes (Benefit) (.5) .4 2.3 (3.3) (6.0) 2.6
----------- ----------- ----------- ----------- ----------- -----------
Segment Income (Loss) $ (1.2) $ (.3) $ (2.2) $ (5.4) $ (63.9) $ (11.3)
=========== =========== =========== =========== =========== ===========
18
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
SEGMENT INCOME -------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
Investment Management Fees $ 57.3 $ 54.4 $ 52.6 $ 54.7 $ 49.5
Mutual Funds - Ancillary Fees (1) 9.7 9.5 9.4 9.8 9.8
Other Revenue 2.8 2.2 1.4 1.3 1.3
----------- ----------- ----------- ----------- -----------
Total Revenues 69.8 66.1 63.4 65.8 60.6
----------- ----------- ----------- ----------- -----------
Employment Expenses 34.8 32.6 31.3 33.8 29.2
Other Operating Expenses (1) 23.3 22.0 20.6 20.1 21.9
Amortization of Intangibles 8.3 8.3 8.5 8.7 8.4
----------- ----------- ----------- ----------- -----------
Total Operating Expenses 66.4 62.9 60.4 62.6 59.5
----------- ----------- ----------- ----------- -----------
Management Income (Loss) 3.4 3.2 3.0 3.2 1.1
Other Income - Net .4 .3 .3 .6 .4
Minority Interest (3.7) (3.4) (3.3) (3.9) (3.2)
----------- ----------- ----------- ----------- -----------
Segment Income (Loss), before income taxes .1 .1 .0 (.1) (1.7)
Applicable Income Taxes (Benefit) .4 1.9 (.5)
----------- ----------- ----------- ----------- -----------
Segment Income (Loss) $ (.3) $ .1 $ .0 $ (2.0) $ (1.2)
=========== =========== =========== =========== ===========
19
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 508.1 $ 649.8 $ 2,109.9 $ 2,268.3 $ 4,421.1 $ 2,721.8
Outflows (1,499.8) (927.3) (5,203.0) (2,656.6) (2,716.4) (2,546.4)
----------- ----------- ----------- ----------- ----------- -----------
Net Flows (991.7) (277.5) (3,093.1) (388.3) 1,704.7 175.4
Performance (527.9) 315.9 950.3 1,537.5 (3,278.2) (3,545.8)
Other 1,330.0
Acquisitions (Divestitures) 5,914.3 748.6
----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management (1,519.6) 38.4 (2,142.8) 1,149.2 5,670.8 (2,621.8)
Beginning Balance 13,515.6 15,658.4 15,658.4 14,509.2 8,838.4 11,460.2
----------- ----------- ----------- ----------- ----------- -----------
Ending Balance 11,996.0 15,696.8 13,515.6 15,658.4 14,509.2 8,838.4
----------- ----------- ----------- ----------- ----------- -----------
MUTUAL FUNDS: (1)
Inflows 549.2 611.9 1,816.0 1,744.8 1,513.1 1,660.1
Outflows (793.3) (573.1) (2,301.9) (2,039.8) (2,379.2) (2,449.9)
----------- ----------- ----------- ----------- ----------- -----------
Net Flows (244.1) 38.8 (485.9) (295.0) (866.1) (789.8)
Performance (372.4) 347.9 975.5 1,946.3 (2,406.0) (2,985.3)
Other (5.7) (57.6) 273.5 (182.2) (153.7) (148.9)
----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management (622.2) 329.1 763.1 1,469.1 (3,425.8) (3,924.0)
Beginning Balance 14,498.7 13,735.6 13,735.6 12,266.5 15,692.3 19,616.3
----------- ----------- ----------- ----------- ----------- -----------
Ending Balance 13,876.5 14,064.7 14,498.7 13,735.6 12,266.5 15,692.3
----------- ----------- ----------- ----------- ----------- -----------
INSTITUTIONAL PRODUCTS: (1)
Inflows 4,003.8 597.4 2,743.9 2,974.7 4,312.6 4,989.2
Outflows (1,313.3) (798.5) (5,750.9) (3,452.2) (4,480.0) (3,766.9)
----------- ----------- ----------- ----------- ----------- -----------
Net Flows 2,690.5 (201.1) (3,007.0) (477.5) (167.4) 1,222.3
Performance (229.3) 235.4 997.2 2,304.3 (2,178.9) (723.4)
Other (3.0) (6.3) 37.5 (19.9) (1,294.6) 272.6
Acquisitions (Divestitures) 1,507.7 105.9
----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 2,458.2 28.0 (1,972.3) 1,806.9 (2,133.2) 877.4
Beginning Balance 14,894.2 16,866.5 16,866.5 15,059.6 17,192.8 16,315.4
----------- ----------- ----------- ----------- ----------- -----------
Ending Balance 17,352.4 16,894.5 14,894.2 16,866.5 15,059.6 17,192.8
----------- ----------- ----------- ----------- ----------- -----------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS: (1)
Inflows 5,061.1 1,859.1 6,669.8 6,987.8 10,246.8 9,371.1
Outflows (3,606.4) (2,298.9) (13,255.8) (8,148.6) (9,575.6) (8,763.2)
----------- ----------- ----------- ----------- ----------- -----------
Net Flows 1,454.7 (439.8) (6,586.0) (1,160.8) 671.2 607.9
Performance (1,129.6) 899.2 2,923.0 5,788.1 (7,863.1) (7,254.5)
Other (8.7) (63.9) 311.0 (202.1) (118.3) 123.7
Acquisitions (Divestitures) 7,422.0 854.5
----------- ----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 316.4 395.5 (3,352.0) 4,425.2 111.8 (5,668.4)
Beginning Balance 42,908.5 46,260.5 46,260.5 41,835.3 41,723.5 47,391.9
----------- ----------- ----------- ----------- ----------- -----------
Ending Balance $ 43,224.9 $ 46,656.0 $ 42,908.5 $ 46,260.5 $ 41,835.3 $ 41,723.5
=========== =========== =========== =========== =========== ===========
Variable Product Change in Assets Under Management
included in Mutual Funds above $ (132.1) $ 10.8 $ 211.7 $ 200.4 $ (686.5) $ (734.7)
=========== =========== =========== =========== =========== ===========
(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.
20
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 649.8 $ 457.8 $ 646.2 $ 356.1 $ 508.1
Outflows (927.3) (1,162.9) (1,175.1) (1,937.7) (1,499.8)
----------- ----------- ----------- ----------- -----------
Net Flows (277.5) (705.1) (528.9) (1,581.6) (991.7)
Performance 315.9 131.1 (708.6) 1,211.9 (527.9)
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 38.4 (574.0) (1,237.4) (369.7) (1,519.6)
Beginning Balance 15,658.4 15,696.8 15,122.8 13,885.3 13,515.6
----------- ----------- ----------- ----------- -----------
Ending Balance 15,696.8 15,122.8 13,885.3 13,515.6 11,996.0
----------- ----------- ----------- ----------- -----------
MUTUAL FUNDS: (1)
Inflows 611.9 367.4 344.2 492.4 549.2
Outflows (573.1) (650.8) (469.5) (608.6) (793.3)
----------- ----------- ----------- ----------- -----------
Net Flows 38.8 (283.4) (125.3) (116.2) (244.1)
Performance 347.9 (276.8) (22.1) 926.6 (372.4)
Other (57.6) 27.9 25.6 277.6 (5.7)
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 329.1 (532.3) (121.8) 1,088.0 (622.2)
Beginning Balance 13,735.6 14,064.7 13,532.4 13,410.6 14,498.7
----------- ----------- ----------- ----------- -----------
Ending Balance 14,064.7 13,532.4 13,410.6 14,498.7 13,876.5
----------- ----------- ----------- ----------- -----------
INSTITUTIONAL PRODUCTS: (1)
Inflows 597.4 932.9 818.9 394.8 4,003.8
Outflows (798.5) (2,735.6) (928.7) (1,288.1) (1,313.3)
----------- ----------- ----------- ----------- -----------
Net Flows (201.1) (1,802.7) (109.8) (893.3) 2,690.5
Performance 235.4 (161.2) 157.7 765.2 (229.3)
Other (6.3) 56.6 (9.9) (2.9) (3.0)
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 28.0 (1,907.3) 38.0 (131.0) 2,458.2
Beginning Balance 16,866.5 16,894.5 14,987.2 15,025.2 14,894.2
----------- ----------- ----------- ----------- -----------
Ending Balance 16,894.5 14,987.2 15,025.2 14,894.2 17,352.4
----------- ----------- ----------- ----------- -----------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS: (1)
Inflows 1,859.1 1,758.1 1,809.3 1,243.3 5,061.1
Outflows (2,298.9) (4,549.3) (2,573.3) (3,834.3) (3,606.4)
----------- ----------- ----------- ----------- -----------
Net Flows (439.8) (2,791.2) (764.0) (2,591.0) 1,454.7
Performance 899.2 (306.9) (573.0) 2,903.7 (1,129.6)
Other (63.9) 84.5 15.7 274.7 (8.7)
----------- ----------- ----------- ----------- -----------
Change in Assets Under Management 395.5 (3,013.6) (1,321.3) 587.4 316.4
Beginning Balance 46,260.5 46,656.0 43,642.4 42,321.1 42,908.5
----------- ----------- ----------- ----------- -----------
Ending Balance $ 46,656.0 $ 43,642.4 $ 42,321.1 $ 42,908.5 $ 43,224.9
=========== =========== =========== =========== ===========
Variable Product Change in Assets Under Management
included in Mutual Funds above $ 10.8 $ (4.9) $ (39.0) $ 244.7 $ (132.1)
=========== =========== =========== =========== ===========
(1) Effective in 2004 closed-end mutual funds have been reclassified from
institutional products to mutual funds, and the general account assets of
our life companies have been removed. All prior periods have been revised
to conform with the current presentation.
21
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
SEGMENT INCOME
Operating Loss $ 1.3 $ (0.7) $ (1.8) $ (5.8) $ (7.4) $ (7.3)
Realized Gains (Losses) on Cash and Stock Distributions .2 (3.4) 7.4 4.9 (4.7) 26.2
Change in Unrealized Gains on Investments Held in
Partnerships (3.7) 15.7 13.7 37.1 (47.2) (178.5)
----------- ----------- ----------- ----------- ----------- -----------
Equity in Partnership Earnings, before income taxes (2.2) 11.6 19.3 36.2 (59.3) (159.6)
Applicable Income Taxes (Benefit) (.8) 4.1 6.7 12.7 (20.7) (55.9)
----------- ----------- ----------- ----------- ----------- -----------
Segment Income (Loss) (1.4) 7.5 12.6 23.5 (38.6) (103.7)
=========== =========== =========== =========== =========== ===========
- -----------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 9.5 7.9 37.7 31.0 42.2 47.0
Equity In Earnings of Partnerships (2.2) 11.6 19.3 36.2 (59.3) (159.6)
Distributions (13.0) (13.6) (50.4) (32.2) (41.8) (63.0)
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 (5.7) 5.9 6.6 (31.5) (63.9) (175.6)
Beginning Balance 202.9 196.3 196.3 227.8 291.7 467.3
----------- ----------- ----------- ----------- ----------- -----------
Ending Balance $ 197.2 $ 202.2 $ 202.9 $ 196.3 $ 227.8 $ 291.7
=========== =========== =========== =========== =========== ===========
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
SEGMENT INCOME
Operating Loss $ (0.7) $ (1.4) $ 0.2 $ 0.2 $ 1.3
Realized Gains (Losses) on Cash and Stock Distributions (3.4) 2.4 5.4 3.0 .2
Change in Unrealized Gains on Investments Held
in Partnerships 15.7 3.4 (9.5) 4.0 (3.7)
----------- ----------- ----------- ----------- -----------
Equity in Partnership Earnings, before income taxes 11.6 4.4 (3.9) 7.2 (2.2)
Applicable Income Taxes (Benefit) 4.1 1.6 (1.4) 2.5 (.8)
----------- ----------- ----------- ----------- -----------
Segment Income (Loss) 7.5 2.9 (2.5) 4.7 (1.4)
=========== =========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 7.9 12.6 8.5 8.7 9.5
Equity In Earnings of Partnerships 11.6 4.4 (3.9) 7.2 (2.2)
Distributions (13.6) (13.0) (12.9) (10.9) (13.0)
----------- ----------- ----------- ----------- -----------
Change in Venture Capital Investments 5.9 4.0 (8.3) 5.0 (5.7)
Beginning Balance 196.3 202.2 206.2 197.9 202.9
----------- ----------- ----------- ----------- -----------
Ending Balance $ 202.2 $ 206.2 $ 197.9 $ 202.9 $ 197.2
=========== =========== =========== =========== ===========
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
First Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
Corporate Investment Income $ .1 $ .9 $ .4 $ 4.3 $ 1.5 $ 7.2
Interest Expense on Indebtedness (11.1) (9.8) (40.8) (39.6) (31.4) (27.3)
Corporate Expenses (5.8) (3.9) (18.9) (11.0) (10.4) (19.9)
Other .5 .1 .2 (1.5) .3 5.3
----------- ----------- ----------- ----------- ----------- -----------
Segment Loss, Before Income Taxes (16.3) (12.7) (59.1) (47.8) (40.0) (34.7)
Applicable Income Tax Benefit (5.7) (4.4) (22.9) (18.8) (29.8) (20.9)
----------- ----------- ----------- ----------- ----------- -----------
Segment Loss $ (10.6) $ (8.3) $ (36.2) $ (29.0) $ (10.2) $ (13.8)
=========== =========== =========== =========== =========== ===========
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
SEGMENT INCOME -------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
Corporate Investment Income (Loss) $ .9 $ (.4) $ .1
Interest Expense on Indebtedness (9.8) (9.9) $ (10.1) $ (11.0) (11.1)
Corporate Expenses (3.9) (4.3) (5.1) (5.6) (5.8)
Other .1 (1.4) (.7) 2.1 .5
----------- ----------- ----------- ----------- -----------
Segment Loss, Before Income Taxes (12.7) (16.0) (15.9) (14.5) (16.3)
Applicable Income Tax Benefit (4.4) (6.0) (5.2) (7.4) (5.7)
----------- ----------- ----------- ----------- -----------
Segment Loss $ (8.3) $ (10.0) $ (10.7) $ (7.1) $ (10.6)
=========== =========== =========== =========== ===========
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
REVENUES
Premiums $ 226.8 $ 232.7 $ 990.6 $ 1,042.2 $ 1,082.0 $ 1,112.7
Insurance and Investment Product Fees 129.0 136.1 534.9 500.9 493.8 469.7
Broker-dealer commission and distribution fee revenues 6.8 24.3 56.9 81.5 85.0 96.3
Net Investment Income 268.7 275.4 1,075.7 1,107.4 940.5 882.9
Unrealized Gain on Trading Equity Securities 85.9
Net Realized Investment Gains (Losses) (17.9) 2.5 (.8) (98.5) (133.9) (84.9)
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 613.4 671.0 2,743.2 2,633.5 2,467.4 2,476.7
----------- ----------- ----------- ----------- ----------- -----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 343.3 345.6 1,422.2 1,454.0 1,436.1 1,406.7
Policyholder Dividends 83.8 105.9 404.7 418.8 401.8 400.1
Policy Acquisition Cost Amortization 28.2 22.6 110.2 94.1 59.2 133.0
Intangible Asset Impairments 66.3
Intangible Asset Amortization 8.4 8.3 33.8 33.2 32.5 49.4
Interest Expense on Indebtedness 11.1 9.8 40.8 39.6 31.4 27.3
Interest Expense on Non-recourse Collateralized Obligations 8.9 8.9 33.6 48.9 30.5 42.3
Demutualization Expenses 25.9
Other Operating Expenses 117.2 149.1 560.7 565.1 613.2 654.1
----------- ----------- ----------- ----------- ----------- -----------
Total Expenses 600.9 650.2 2,606.0 2,653.7 2,671.0 2,738.8
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations before Income
Taxes, Minority Interest and equity in undistributed
earnings (losses) of affiliates 12.5 20.8 137.2 (20.2) (203.6) (262.1)
Applicable Income Taxes (Benefit) 2.8 6.3 40.5 (18.3) (58.8) (108.7)
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations before
Minority Interest and equity in undistributed
earnings (losses) of affiliates 9.7 14.5 96.7 (1.9) (144.8) (153.4)
Minority Interest in Net Income of Subsidiaries (.3) (.4) (.5) (.3)
Equity in undistributed earnings (losses) of affiliates 1.8 (10.4) (1.8) 4.6 6.4
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations 9.4 16.3 86.3 (4.1) (140.7) (147.3)
Discontinued Operations
Income (Loss) from Discontinued Operations .3 .1 (2.1) (1.3) (2.5)
----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) Before Cumulative Effect of Accounting
Changes 9.4 16.6 86.4 (6.2) (142.0) (149.8)
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) $ 9.4 $ 16.6 $ 86.4 $ (6.2) $ (272.3) $ (215.2)
=========== =========== =========== =========== =========== ===========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
26
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
REVENUES
Premiums $ 232.7 $ 238.2 $ 268.8 $ 250.9 $ 226.8
Insurance and Investment Product Fees 136.1 134.0 130.1 134.7 129.0
Broker-dealer commission and distribution fee revenues 24.3 20.2 5.7 6.7 6.8
Net Investment Income 275.4 260.1 266.4 273.8 268.7
Unrealized Gain on Trading Equity Securities 85.9
Net Realized Investment Gains (Losses) 2.5 14.4 (9.1) (8.6) (17.9)
----------- ----------- ----------- ----------- -----------
Total Revenues 671.0 666.9 661.9 743.4 613.4
----------- ----------- ----------- ----------- -----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 345.6 341.3 373.3 362.0 343.3
Policyholder Dividends 105.9 105.3 98.6 94.9 83.8
Policy Acquisition Cost Amortization 22.6 23.1 30.6 33.9 28.2
Intangible Asset Amortization 8.3 8.3 8.5 8.7 8.4
Interest Expense on Indebtedness 9.8 9.9 10.1 11.0 11.1
Interest Expense on Non-recourse Collateralized Obligations 8.9 7.5 9.1 8.1 8.9
Other Operating Expenses 149.1 150.2 123.9 137.5 117.2
----------- ----------- ----------- ----------- -----------
Total Expenses 650.2 645.6 654.1 656.1 600.9
----------- ----------- ----------- ----------- -----------
Income from Continuing Operations before Income Taxes,
Minority Interest and equity in undistributed
earnings (losses) of affiliates 20.8 21.3 7.8 87.3 12.5
Applicable Income Taxes (Benefit) 6.3 6.6 (.1) 27.7 2.8
----------- ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations before Minority
Interest and equity in undistributed earnings
(losses) of affiliates 14.5 14.7 7.9 59.6 9.7
Minority Interest in Net Income of Subsidiaries (.3)
Equity in undistributed earnings (loss) of affiliates 1.8 (.1) (.8) (11.3)
----------- ----------- ----------- ----------- -----------
Income from Continuing Operations 16.3 14.6 7.1 48.3 9.4
Income (Loss) from Discontinued Operations .3 (.2)
----------- ----------- ----------- ----------- -----------
Net Income $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4
=========== =========== =========== =========== ===========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING FIRST QUARTER 2005 INCOME STATEMENT
First Quarter 2005 (unaudited)
($ in millions)
Year-to-Date March 31, 2005 Operating Segments Other Segments
------------------------- -----------------------
Life Corporate
$ Asset Venture &
Consolidated Annuity Management Capital Other
------------ ----------- ----------- ----------- -----------
REVENUES
Premiums $ 226.8 $ 226.8
Insurance and Investment Product Fees 129.0 75.6 $ 54.2
Broker-dealer commission and distribution fee revenues 6.8 6.8
Net Investment Income 268.7 253.7 $ (2.2) $ 14.3
Net Realized Investment Gains (17.9)
------------ ----------- ----------- ----------- -----------
Total Revenues 613.4 556.1 61.0 (2.2) 14.3
------------ ----------- ----------- ----------- -----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 343.3 340.8 2.5
Policyholder Dividends 83.8 88.2
Policy Acquisition Cost Amortization 28.2 33.0
Intangible Asset Amortization 8.4 8.4
Interest Expense on Indebtedness 11.1 11.1
Interest Expense on Non-recourse Collateralized Obligations 8.9 8.9
Other Operating Expenses 117.2 50.1 54.3 8.1
------------ ----------- ----------- ----------- -----------
Total Expenses 600.9 512.1 62.7 30.6
------------ ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations before Income
Taxes, Minority Interest and equity in undistributed
earnings (losses) of affiliates 12.5 44.0 (1.7) (2.2) (16.3)
Applicable Income Taxes (Benefit) 2.8 14.0 (.5) (.8) (5.7)
------------ ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations before Minority
Interest and equity in undistributed earnings
(losses) of affiliates 9.7 30.0 (1.2) (1.4) (10.6)
Minority Interest in Net Income of Subsidiaries (.3)
------------ ----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations $ 9.4 $ 30.0 $ (1.2) $ (1.4) $ (10.6)
============ =========== =========== =========== ===========
Exclusions from
Year-to-Date March 31, 2005 Segment Income
-------------------------------------
Realized
Investment Intra-Segment
Losses Other Eliminations
------------ ----------- -------------
REVENUES
Premiums
Insurance and Investment Product Fees $ (.8)
Broker-dealer commission and distribution fee revenues
Net Investment Income 2.9
Net Realized Investment Gains $ (17.9)
------------ ----------- -------------
Total Revenues (17.9) 2.1
------------ ----------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities
Policyholder Dividends (4.4)
Policy Acquisition Cost Amortization (4.8)
Intangible Asset Amortization
Interest Expense on Indebtedness
Interest Expense on Non-recourse Collateralized Obligations
Other Operating Expenses $ 2.6 2.1
------------ ----------- -------------
Total Expenses (9.2) 2.6 2.1
------------ ----------- -------------
Income (Loss) from Continuing Operations before Income
Taxes, Minority Interest and equity in undistributed
earnings (losses) of affiliates (8.7) (2.6)
Applicable Income Taxes (Benefit) (3.2) (1.0)
------------ ----------- -------------
Income (Loss) from Continuing Operations before Minority
Interest and equity in undistributed earnings
(losses) of affiliates (5.5) (1.6)
Minority Interest in Net Income of Subsidiaries (.3)
------------ ----------- -------------
Income (Loss) from Continuing Operations $ (5.5) $ (1.9)
============ =========== =============
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
First Quarter 2005 (unaudited)
($ in millions, except par value)
December 31,
March -----------------------------------------------
2005 2004 2003 2002 2001
----------- ----------- ----------- ----------- -----------
ASSETS:
Available-for-Sale Debt Securities, at fair value $ 13,454.4 $ 13,476.3 $ 13,273.0 $ 11,889.5 $ 9,774.1
Available-for-Sale Equity Securities, at fair value 277.6 304.3 312.0 385.9 287.7
Trading Equity Securities, at fair value 65.9 87.3
Mortgage Loans, at unpaid principal balances 181.1 207.9 284.1 468.8 535.8
Policy Loans, at unpaid principal balances 2,207.6 2,196.7 2,241.4 2,195.9 2,172.2
Venture Capital Partnerships, at equity in net assets 250.5 255.3 234.9 228.6 291.7
Affiliate Equity and Debt Securities, at cost plus equity
in undistributed earnings 47.5 134.7 150.6
Other Investments 334.5 371.8 402.0 398.9 376.0
----------- ----------- ----------- ----------- -----------
16,771.6 16,899.6 16,794.9 15,702.3 13,588.1
Available-for-Sale Investments Pledged as Collateral, at
fair value 1,235.1 1,278.8 1,350.0 1,358.7 550.6
----------- ----------- ----------- ----------- -----------
Total Investments 18,006.7 18,178.4 18,144.9 17,061.0 14,138.7
Cash and Cash Equivalents 372.1 435.0 447.9 1,110.5 823.3
Deferred Policy Acquisition Costs 1,494.3 1,429.9 1,367.7 1,234.1 1,123.7
Goodwill and Other Intangible Assets 727.4 735.6 755.0 747.7 858.6
Other Assets 692.2 633.4 760.5 711.4 566.1
Separate Account Assets 7,073.2 6,950.3 6,083.2 4,371.2 5,025.2
----------- ----------- ----------- ----------- -----------
Total Assets $ 28,365.9 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6
=========== =========== =========== =========== ===========
LIABILITIES:
Policy Liabilities and Accruals $ 13,082.2 $ 13,132.3 $ 13,088.6 $ 12,680.0 $ 11,846.4
Policyholder Deposit Funds 3,425.8 3,492.4 3,642.7 3,395.7 1,515.2
Indebtedness 688.2 690.8 639.0 644.3 599.3
Stock Purchase Contracts 129.8 131.9 128.8 137.6
Other Liabilities 661.4 587.3 557.1 570.8 614.1
Non-recourse Collateralized Debt Obligation Liabilities 1,301.4 1,355.2 1,472.0 1,609.5 632.7
Separate Account Liabilities 7,073.2 6,950.3 6,083.2 4,371.2 5,020.1
----------- ----------- ----------- ----------- -----------
Total Liabilities and minority interest 26,362.0 26,340.2 25,611.4 23,409.1 20,227.8
----------- ----------- ----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion shares authorized;
94,975,000 shares outstanding (March 31, 2005) 1.0 1.0 1.0 1.0 1.0
Additional paid in capital 2,436.2 2,435.2 2,431.4 2,424.4 2,413.3
Deferred Compensation on Restricted Stock Units (4.0) (3.6) (3.6)
Accumulated Earnings (Deficit) (276.2) (285.6) (355.3) (331.4) (43.3)
Treasury stock, at cost: 11,425,972 shares (March 31, 2005) (180.9) (182.6) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income (Loss) 27.8 58.0 63.7 (71.5) 2.8
----------- ----------- ----------- ----------- -----------
Total Stockholders' Equity 2,003.9 2,022.4 1,947.8 1,826.8 2,307.8
----------- ----------- ----------- ----------- -----------
Total Liabilities, Minority Interest and
Stockholders' Equity $ 28,365.9 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6
=========== =========== =========== =========== ===========
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
First Quarter 2005 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
------------------------ ----------------------- -----------------------
3/31/2005 12/31/04 3/31/2005 12/31/04 3/31/2005 12/31/04
------------ ----------- ----------- ----------- ----------- -----------
DEBT SECURITIES BY CREDIT QUALITY (CARRYING VALUE)
AAA/AA/A $ 8,757.9 $ 8,668.9 $ 7,231.5 $ 7,123.2 $ 1,526.4 $ 1,545.7
BBB 3,600.9 3,733.3 2,368.3 2,493.6 1,232.6 1,239.7
------------ ----------- ----------- ----------- ----------- -----------
Total Investment Grade 12,358.8 12,402.2 9,599.8 9,616.8 2,759.0 2,785.4
BB 838.2 814.6 724.7 698.6 113.5 116.0
B 157.6 150.9 107.2 97.3 50.4 53.6
CCC and Lower 59.2 68.9 49.7 51.1 9.5 17.8
In or Near Default 40.6 39.7 37.9 36.1 2.7 3.6
------------ ----------- ----------- ----------- ----------- -----------
Total Debt Securities $ 13,454.4 $ 13,476.3 $ 10,519.3 $ 10,499.9 $ 2,935.1 $ 2,976.4
============ =========== =========== =========== =========== ===========
% Below Investment Grade 8.1% 8.0% 8.7% 8.4% 6.0% 6.4%
- ------------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT AND EQUITY SECURITIES
As of March 31, 2005 Total Outside Closed Block Closed Block
------------------------ ----------------------- -----------------------
Gains Gains Gains Gains Gains Gains
------------ ----------- ----------- ----------- ----------- -----------
Total Debt Securities $ 495.2 $ 654.5 $ 134.3 $ 195.0 $ 360.9 $ 459.5
Equity Securities 111.5 108.3 97.8 94.0 13.7 14.3
------------ ----------- ----------- ----------- ----------- -----------
Total Unrealized Gains (Losses) 606.7 762.8 232.1 289.0 374.6 473.8
------------ ----------- ----------- ----------- ----------- -----------
Applicable Policyholder Dividend Obligation 374.6 473.8 374.6 473.8
Applicable Deferred Acquisition Cost (Credit) 52.0 100.3 52.0 100.3
Applicable Deferred Income Tax (Benefit) 63.0 66.0 63.0 66.0
------------ ----------- ----------- ----------- ----------- -----------
Total Offsets to Net Unrealized Gains (Losses) 489.6 640.1 115.0 166.3 374.6 473.8
------------ ----------- ----------- ----------- ----------- -----------
Net Unrealized Gains (Losses) $ 117.1 $ 122.7 $ 117.1 $ 122.7 $ - $ -
============ =========== =========== =========== =========== ===========
$ 82.1 $ 103.3 $ 82.1 $ 103.3 $ -
============ =========== =========== =========== ===========
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
First Quarter 2005 (Quarters unaudited)
($ in millions)
Quarters ended 2004 2005
-------------------------------------------------------- -----------
March June September December March
----------- ----------- ----------- ----------- -----------
GAAP NET INVESTMENT INCOME
Debt Securities $ 191.7 $ 191.8 $ 192.4 $ 196.2 $ 197.3
Equity Securities .4 1.6 1.1 1.4 2.1
Mortgages 5.9 5.4 5.9 5.3 6.4
Policy Loans 42.2 41.7 42.3 40.9 40.7
Venture Capital 17.6 1.8 (3.7) 9.8 (2.8)
Cash & Cash Equivalents .7 1.0 1.4 1.8 1.7
Other (2) 9.6 11.0 18.3 9.9 15.5
----------- ----------- ----------- ----------- -----------
Total Cash and Invested Assets 268.1 254.3 257.7 265.3 260.9
----------- ----------- ----------- ----------- -----------
Investment Expenses 2.8 1.9 2.4 2.7 3.1
----------- ----------- ----------- ----------- -----------
Total Net Investment Income $ 265.3 $ 252.4 $ 255.3 $ 262.6 $ 257.8
=========== =========== =========== =========== ===========
ANNUALIZED YIELDS
Debt Securities 5.9% 5.9% 6.0% 6.0% 6.0%
Equity Securities 0.5% 2.0% 1.4% 1.6% 2.3%
Mortgages 8.9% 8.5% 10.3% 10.3% 14.1%
Policy Loans 7.9% 7.7% 7.9% 7.7% 7.8%
Venture Capital 34.0% 2.9% -5.8% 17.0% -4.3%
Cash & Cash Equivalents 0.7% 0.8% 1.0% 1.6% 1.7%
Other (2) 10.7% 9.9% 18.2% 10.4% 19.7%
----------- ----------- ----------- ----------- -----------
Total Cash and Invested Assets 6.4% 6.0% 6.2% 6.3% 6.3%
----------- ----------- ----------- ----------- -----------
Investment Expenses 0.1% 0.1% 0.2% 0.2% 0.1%
----------- ----------- ----------- ----------- -----------
Total Net Investment Income 6.3% 5.9% 6.0% 6.2% 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
First Quarter 2005 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -----------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ----------- ----------- ----------- ----------- -----------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (12.2) $ (2.8) $ (15.5) $ (76.1) $ (114.3) $ (46.1)
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)
Real Estate Impairments (6.6)
Debt and Equity Securities Pledged as Collateral Impairments (.3) (4.7) (16.6) (8.3) (34.9) (39.0)
Other Invested Asset Impairments (3.3) (3.3) (9.9) (22.0) (3.7)
----------- ----------- ----------- ----------- ----------- -----------
Total Impairment Losses (12.5) (10.8) (49.5) (210.8) (186.7) (94.9)
----------- ----------- ----------- ----------- ----------- -----------
Debt Security Net Transaction Gains (Losses) (7.2) 7.0 28.4 64.7 48.4 21.7
Equity Security Net Transaction Gains (Losses) (1.0) 2.2 14.6 49.2 2.1 (8.8)
Venture Capital Net Investment Gains (Losses) (9.7)
Mortgage Loan Net Transaction Gains (Losses) 3.7 .2 .2 (1.3) .2 7.1
Real Estate Net Transaction Gains (Losses) (.3) (.8) (.2) 4.0 (2.5)
Other Invested Asset Net Transactions Gains (Losses) (1.3) 3.9 6.3 9.6 (1.9) (7.5)
Debt and Equity Securities Pledged as Collateral .7
----------- ----------- ----------- ----------- ----------- -----------
Total Net Transactions Gains (Losses) (5.4) 13.3 48.7 112.3 52.8 10.0
----------- ----------- ----------- ----------- ----------- -----------
Net Realized Investment Gains (Losses) (17.9) 2.5 (.8) (98.5) (133.9) (84.9)
=========== =========== =========== =========== =========== ===========
Closed Block Applicable PDO (Reduction) (4.4) .1 3.7 (5.9) (40.3) (15.4)
Applicable Deferred Acquisition Costs (Credit) (4.8) .4 (.4) (4.1) (7.2) 10.5
Applicable Deferred Income Tax (Credit) (3.2) 1.2 3.1 (35.6) (20.8) (24.5)
----------- ----------- ----------- ----------- ----------- -----------
Net Realized Investment Gains (Losses) Included in
Net Income (1) $ (5.5) $ .8 $ (7.2) $ (52.9) $ (65.6) $ (55.5)
=========== =========== =========== =========== =========== ===========
(1) Includes realized losses on our equity interest in Aberdeen of $7.0 million
in 2005 and $55.0 million in 2003, respectively.
32
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
First Quarter 2005 (unaudited)
($ in millions)
2004 2005
-------------------------------------------------------- -----------
Quarters ended March June September December March
----------- ----------- ----------- ----------- -----------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (2.8) $ (1.2) $ (4.6) $ (6.9) $ (12.2)
Equity Security Impairments (1.5)
Affiliated Equity Securities (12.6)
Venture Capital Partnerships Impairments
Mortgage Loan Impairments
Real Estate Impairments
Debt and Equity Securities Pledged as Collateral Impairments (4.7) (3.6) (8.3) (.3)
Other Invested Asset Impairments (3.3)
----------- ----------- ----------- ----------- -----------
Total Impairment Losses (10.8) (4.8) (12.9) (21.0) (12.5)
----------- ----------- ----------- ----------- -----------
Debt Security Net Transaction Gains (Losses) 7.0 6.1 3.7 11.6 (7.2)
Equity Security Net Transaction Gains (Losses) 2.2 9.5 .2 2.7 (1.0)
Mortgage Loan Net Transaction Gains (Losses) .2 3.7
Real Estate Net Transaction Gains (Losses) (.6) (.2) (.3)
Other Invested Asset Net Transactions Gains (Losses) 3.9 4.2 (.1) (1.7) (1.3)
Debt and Equity Securities Pledged as Collateral .7
----------- ----------- ----------- ----------- -----------
Total Net Transactions Gains (Losses) 13.3 19.2 3.8 12.4 (5.4)
----------- ----------- ----------- ----------- -----------
Net Realized Investment Gains (Losses) 2.5 14.4 (9.1) (8.6) (17.9)
=========== =========== =========== =========== ===========
Closed Block Applicable PDO (Reduction) .1 7.2 (2.5) (1.1) (4.4)
Applicable Deferred Acquisition Costs (Credit) .4 (1.2) (.1) .5 (4.8)
Applicable Deferred Income Tax (Credit) 1.2 4.2 2.0 (4.3) (3.2)
----------- ----------- ----------- ----------- -----------
Net Realized Investment Gains (Losses) Included in
Net Income (1) $ .8 $ 4.2 $ (8.5) $ (3.7) $ (5.5)
=========== =========== =========== =========== ===========
(1) Includes realized losses of $7.0 million in our equity interest in Aberdeen
for March 2005.
33