Exhibit 99.1
FINANCIAL SUPPLEMENT
THE PHOENIX COMPANIES, INC.
JUNE 30, 2005
[LOGO] PHOENIX
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
WALL STREET COVERAGE TRANSFER AGENT AND REGISTRAR
FIRM ANALYST For information or assistance regarding your account,
A.G. Edwards & Sons, Inc. J. Jeffrey Hopson please contact our transfer agent and registrar:
Credit Suisse First Boston (CSFB) Tom Gallagher The Phoenix Companies, Inc. C/O The Bank of New York,
Deutsche Bank North America Vanessa Wilson Shareholder Relations,
Fox-Pitt, Kelton John Nadel PO Box 11258, New York, NY 10286-1258
Friedman, Billings, Ramsey & Co. Stewart Johnson Toll-free: 1-800-490-4258 TTY 1-888-269-5221
JP Morgan Jimmy Bhullar Fax: 1-212-815-2777, e-mail: pnxshareholders@bankofny.com
Keefe Bruyette & Woods, Inc. Jukka Lipponen Web: www.stockbny.com
Langen McAlenney Robert Glasspiegel
Lehman Brothers Eric Berg
Merrill Lynch Edward A. Spehar
Morgan Stanley Nigel Dally FOR MORE INFORMATION
UBS Andrew Kligerman 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:
SHAREHOLDER INFORMATION The Phoenix Companies, Inc.
Investor Relations
SECURITY LISTINGS One American Row
The common stock of The Phoenix Companies, Inc. is traded on P.O. Box 5056, Hartford, CT 06102-5056
the New York Stock Exchange (NYSE) under the symbol "PNX." Phone: 1-860-403-7100
Our 7.25 percent equity units are traded on the NYSE under the Fax: 1-860-403-7880
symbol "PNX PrA." Our 7.45 percent bond is traded on the NYSE e-mail: pnx.ir@phoenixwm.com
under the symbol "PFX."
For more information on our products and services, call your Phoenix
representative or visit our Web site at PhoenixWealthManagement.com.
In addition to net income presented in accordance with Generally Accepted
Accounting Principles ("GAAP"), Phoenix considers total segment income in
evaluating its financial performance. See page 2, Income Statement, for a
reconciliation of these measures. Total segment income is an internal
performance measure considered by Phoenix in the management of its operations,
including its compensation plans and budgeting and planning processes. In
addition, management believes that total segment income provides additional
insight into the underlying trends in Phoenix's operations.
Total segment income represents net income from continuing operations (which is
a GAAP measure) before realized investment gains and losses, and certain other
items.
* Net realized investment gains and losses are excluded from segment income
because their size and timing are frequently subject to our discretion.
* Certain other items are excluded from segment income because we believe they
are not indicative of overall operating trends and are items that management
believes are infrequent and material and which result from a business
restructuring, a change in regulatory environment, or other unusual
circumstances.
Because certain of these items are excluded based on our discretion and involve
judgments by management, inconsistencies in their determination may exist and
total segment income may differ from similarly titled measures of other
companies.
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
JUNE 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 SECOND 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........................ 33
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Second Quarter 2005 (unaudited)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION December 31,
For the Period Ended: YTD June -------------------------------------------------------------
2005 2004 2003 2002 2001
------------- ------------- ------------- ------------- -------------
General Account Invested Assets $ 17,392.9 $ 17,334.6 $ 17,242.8 $ 16,812.8 $ 14,411.4
Separate Account Assets 7,216.9 6,950.3 6,083.2 4,371.2 5,025.2
Total Assets 28,650.7 28,362.6 27,559.2 25,235.9 22,535.6
Indebtedness 689.1 690.8 639.0 644.3 599.3
Total Stockholders' Equity 2,038.5 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 2,040.5 $ 2,018.5 $ 1,925.3 $ 1,937.1 $ 2,317.5
Debt to Total Capitalization 25.3% 25.5% 24.7% 24.1% 20.0%
Debt (Excluding Equity Units) to
Total Capitalization 19.6% 19.8% 18.8% 18.3% N/A
Book Value Per Share $ 21.44 $ 21.31 $ 20.62 $ 19.43 $ 22.64
Book Value Per Share, excluding SFAS 115
and other accumulated OCI 20.88 20.70 19.96 20.19 22.62
Book Value Per Share, excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 21.46 $ 21.27 $ 20.39 $ 20.60 $ 22.74
Period-end Common Shares Outstanding 95.1 94.9 94.4 94.0 101.9
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
Indebtedness:
Surplus Notes $ 204.2 $ 204.1 $ 175.0 $ 175.0 $ 175.0
Equity Units 153.7 153.7 153.7 153.7 N/A
Senior Unsecured Bonds 300.0 300.0 300.0 300.0 300.0
Interest Rate Swap 6.2 8.0 10.3 15.6 (0.8)
Bank Credit Facility 25.0 25.0 .0 .0 125.1
------------- ------------- ------------- ------------- -------------
Total Indebtedness $ 689.1 $ 690.8 $ 639.0 $ 644.3 $ 599.3
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR
PHOENIX LIFE INSURANCE COMPANY (1)
Capital, Surplus and Surplus Notes $ 837.8 $ 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 1,023.7 1,028.2 961.5 1,008.0 1,371.3
============= ============= ============= ============= =============
Policyholder Dividend Liability 410.0 403.3 408.5 403.0 395.8
Interest Maintenance Reserve (32.3) (31.3) (30.2) (2.0) 11.6
Statutory Gain From Operations 33.2 35.1 69.7 44.5 119.9
Statutory Net Income (Loss) $ 6.8 $ 47.1 $ 21.5 $ 7.5 $ (13.9)
-------------
(1) 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. June 2005 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Second Quarter 2005 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD June December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Life Insurance (1) $ 106.3 $ 52.0 $ 130.2 $ 100.5 $ 99.8 $ 71.2
Annuity (1) (3.6) 7.6 12.6 (1.1) (19.5) 11.7
------------- ------------- ------------- ------------- ------------- -------------
Life and Annuity Segment 102.7 59.6 142.8 99.4 80.3 82.9
Asset Management Segment (1.6) .2 .1 (8.7) (69.9) (8.7)
Venture Capital Segment .5 16.0 19.3 36.2 (59.3) (159.6)
Corporate and Other Segment (32.7) (28.7) (59.1) (47.8) (40.0) (34.7)
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss),
Before Income Taxes 68.9 47.1 103.1 79.1 (88.9) (120.1)
Applicable Income Taxes (Benefit) 21.2 13.0 22.5 21.8 (28.5) (45.4)
------------- ------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME (LOSS) 47.7 34.1 80.6 57.3 (60.4) (74.7)
Net Realized Investment Gains (Losses) .5 9.5 5.7 3.2 (39.3) (43.0)
Realized (Losses) - Investments Pledged
as Collateral Consolidated Under FIN 46-R (.8) (4.6) (12.9) (2.4) (26.3) (12.5)
Realized and Unrealized Gains (Losses) on
Equity Investment in Aberdeen (7.0) .8 55.9 (55.0)
Share of Aberdeen's Extraordinary Charge
for FSA Settlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and
Early Retirement Costs (8.6) (8.9) (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 1.3 5.3
------------- ------------- ------------- ------------- ------------- -------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 31.8 30.9 86.3 (4.1) (140.7) (196.1)
Income (Loss) From Discontinued Operations .1 .1 (2.1) (1.3) (2.5)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) Before Cumulative Effect of
Accounting changes 31.8 31.0 86.4 (6.2) (142.0) (198.6)
Cumulative Effect of Accounting (130.3) (16.6)
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME (LOSS) $ 31.8 $ 31.0 $ 86.4 $ (6.2) $ (272.3) $ (215.2)
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (2) 95.0 94.6 94.7 94.2 97.9 104.6
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ 0.50 $ 0.36 $ 0.85 $ 0.61 $ (0.62) $ (0.71)
Net Income (Loss) Per Share $ 0.33 $ 0.33 $ 0.91 $ (0.07) $ (2.78) $ (2.06)
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares (2)(3) 101.7 101.6 100.8 96.6 97.9 104.6
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ 0.47 $ 0.34 $ 0.80 $ 0.59 $ (0.62) $ (0.71)
Net Income (Loss) Per Share $ 0.31 $ 0.30 $ 0.86 $ (0.07) $ (2.78) $ (2.06)
-------------
(1) Within the Life and Annuity segment, certain product lines have been
reclassified from Other Life and Annuity and combined with the appropriate
major product line. See additional information on page 4 of this
supplement. This reclassification has been made for all periods presented.
(2) Weighted-average shares outstanding in 2001 are pro forma due to Initial
Public Offering (IPO) in 2001.
(3) For the twelve months ended December 31, 2003, the weighted average common
shares outstanding and dilutive potential common shares were 96.6 million.
For the calculation of net loss per share, dilutive potential shares were
not included because their effect would have been anti-dilutive.
2
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Second Quarter 2005 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2004 2005
---------------------------------------------------------- ----------------------------
Quarters ended March June September December March June
------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Life Insurance (1) $ 22.8 $ 29.2 $ 36.9 $ 41.2 $ 38.0 $ 68.3
Annuity (1) 3.0 4.6 3.9 1.1 6.0 (9.6)
------------- ------------- ------------- ------------- ------------- -------------
Life and Annuity Segment 25.8 33.8 40.8 42.3 44.0 58.7
Asset Management Segment .1 .1 .0 (.1) (1.7) .1
Venture Capital Segment 11.6 4.4 (3.9) 7.2 (2.2) 2.7
Corporate and Other Segment (12.7) (16.0) (15.9) (14.5) (16.3) (16.4)
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income, Before Income Taxes 24.8 22.3 21.0 34.9 23.8 45.1
Applicable Income Taxes 7.3 5.7 .5 8.9 7.0 14.2
------------- ------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME 17.5 16.6 20.5 26.0 16.8 30.9
Net Realized Investment Gains (Losses) 1.8 7.7 (.2) (3.7) 1.1 (.6)
Realized Gains (Losses) - Investments
Pledged as Collateral Consolidated
Under FIN 46-R (1.0) (3.6) (8.3) .4 (1.2)
Realized and Unrealized Gains (Losses)
on Equity Investment in Aberdeen .8 55.1 (7.0)
Share of Aberdeen's Extraordinary Charge
for FSA Settlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and
Early Retirement Costs (2.0) (6.9) (4.9) (8.0) (1.9) (6.7)
------------- ------------- ------------- ------------- ------------- -------------
INCOME FROM CONTINUING OPERATIONS 16.3 14.6 7.1 48.3 9.4 22.4
Income (Loss) From Discontinued Operations .3 (.2)
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4 $ 22.4
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding 94.5 94.6 94.7 94.8 94.9 95.0
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income Per Share $ 0.19 $ 0.18 $ 0.22 $ 0.27 $ 0.18 $ 0.32
Net Income Per Share $ 0.18 $ 0.15 $ 0.07 $ 0.51 $ 0.10 $ 0.24
Diluted
Weighted-Average Shares Outstanding
and dilutive potential common shares 102.0 101.3 99.2 100.3 102.3 101.1
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income Per Share $ 0.17 $ 0.16 $ 0.21 $ 0.26 $ 0.16 $ 0.31
Net Income Per Share $ 0.16 $ 0.14 $ 0.07 $ 0.48 $ 0.09 $ 0.22
=============
(1) Within the Life and Annuity segment, certain product lines have been
reclassified from Other Life and Annuity and combined with the appropriate
major product line. See additional information on page 4 of this
supplement. This reclassification has been made for all periods presented.
3
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
Second Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD June December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
Variable Universal Life $ 46.9 $ 16.6 $ 35.7 $ 35.0 $ 35.9 $ 30.2
Universal Life (1) 33.4 12.8 34.4 21.7 26.3 17.4
Other Life and Annuity (2) (3) .9 1.7 1.8 .2 (.7) (.9)
------------- ------------- ------------- ------------- ------------- -------------
Total, Non-participating Life 81.2 31.1 71.9 56.9 61.5 46.7
Traditional Life (3) 25.1 20.9 58.3 43.6 38.3 24.5
------------- ------------- ------------- ------------- ------------- -------------
Total, Life Insurance 106.3 52.0 130.2 100.5 99.8 71.2
Annuities (3) (3.6) 7.6 12.6 (1.1) (19.5) 11.7
------------- ------------- ------------- ------------- ------------- -------------
Segment Income, before income taxes 102.7 59.6 142.8 99.4 80.3 82.9
Allocated Income Taxes (4) 33.1 17.4 36.4 31.1 28.0 28.8
------------- ------------- ------------- ------------- ------------- -------------
Segment Income $ 69.6 $ 42.2 $ 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) Certain product lines have been reclassified from Other Life and Annuity
to the appropriate major product line. Specifically, term life and an old
block of corporate owned life insurance were combined with participating
life insurance and renamed Traditional Life. Also, single premium deposit
annuities, single premium immediate annuities, flexible annuities and
certain other annuity product lines were combined with Annuities. These
reclassifications have been made for all periods presented.
(4) Tax benefits related to tax advantaged investments have been allocated to
the Life and Annuity Segment beginning in the quarter ended March 2003.
4
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
Second Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
---------------------------------------------------------- ---------------------------
Quarters ended March June September December March June
------------- ------------- ------------- ------------- ------------- ------------
Variable Universal Life $ 8.2 $ 8.5 $ 9.7 $ 9.5 $ 9.1 $ 37.8
Universal Life (1) 1.9 10.9 8.7 12.9 10.3 23.1
Other Life and Annuity (2) (3) 1.5 .1 (.4) .4 .4 .5
------------- ------------- ------------- ------------- ------------- ------------
Total, Non-participating Life 11.6 19.5 18.0 22.8 19.8 61.4
Traditional Life (3) 11.2 9.7 18.9 18.4 18.2 6.9
------------- ------------- ------------- ------------- ------------- ------------
Total, Life Insurance 22.8 29.2 36.9 41.2 38.0 68.3
Annuities (3) 3.0 4.6 3.9 1.1 6.0 (9.6)
------------- ------------- ------------- ------------- ------------- ------------
Segment Income, before income taxes 25.8 33.8 40.8 42.3 44.0 58.7
Allocated Income Taxes 7.2 10.2 7.1 11.9 14.0 19.1
------------- ------------- ------------- ------------- ------------- ------------
Segment Income $ 18.6 $ 23.6 $ 33.7 $ 30.4 $ 30.0 $ 39.6
============== ============ ============= ============= ============= =============
(1) Universal Life includes interest sensitive whole life contracts.
(2) Other Life and Annuity includes WS Griffith prior to 2005.
(3) Certain product lines have been reclassified from Other Life and Annuity
to the appropriate major product line. Specifically, term life and an old
block of corporate owned life insurance were combined with participating
life insurance and renamed Traditional Life. Also, single premium deposit
annuities, single premium immediate annuities, flexible annuities and
certain other annuity product lines were combined with annuities. These
reclassifications have been made for all periods presented.
5
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 17.7 $ 15.3 $ 29.6 $ 30.1 $ 31.4 $ 29.5
Cost of Insurance 38.1 36.8 74.6 72.1 66.4 60.0
Interest Earned 3.0 3.0 5.9 5.6 7.0 4.5
Surrender Charges 3.6 2.9 6.9 6.9 4.4 3.3
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 62.4 58.0 117.0 114.7 109.2 97.3
------------- ------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 17.2 15.8 30.5 23.3 22.9 15.3
Incurred Expenses (4.1) 23.6 47.1 52.8 45.9 48.2
Interest Credited 2.4 2.0 3.7 3.6 3.7 3.6
Minority Interest .8
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 15.5 41.4 81.3 79.7 73.3 67.1
------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income 46.9 16.6 35.7 35.0 35.9 30.2
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 6.9 8.2 16.3 21.4 36.6 29.5
Controllable Expenses and Other 14.3 18.5 34.0 44.6 60.8 60.1
------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 21.2 26.7 50.3 66.0 97.4 89.6
Acquisition Costs Deferred (8.5) (13.2) (25.4) (33.9) (68.1) (65.4)
Acquisition Costs Amortized (16.8) 10.1 22.2 20.8 16.6 24.0
------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses (4.1) 23.6 47.1 52.9 45.9 48.2
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 112.3 127.0 245.4 353.4 465.7 336.1
Surrenders (47.0) (30.6) (75.3) (69.4) (37.6) (31.2)
Deaths (1.6) (.8) (2.2) (1.4) (1.8) (1.7)
------------- ------------- ------------- ------------- ------------- -------------
Net Sales 63.7 95.6 167.9 282.6 426.3 303.2
Performance 12.7 66.5 179.3 252.1 (149.8) (194.0)
Fees (15.2) (15.8) (30.6) (36.4) (35.8) (34.5)
Cost of Insurance (37.1) (35.7) (72.4) (69.8) (66.4) (60.0)
------------- ------------- ------------- ------------- ------------- -------------
Acquisitions
Change in Funds Under Management 24.1 110.6 244.2 428.5 174.3 14.7
Beginning Balance 1,943.1 1,698.9 1,698.9 1,270.3 1,096.0 1,081.3
------------- ------------- ------------- ------------- ------------- -------------
Ending Balance 1,967.2 1,809.5 1,943.1 1,698.8 1,270.3 1,096.0
============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE (1) $ 25,041.0 $ 25,596.7 $ 25,382.0 $ 24,603.0 $ 23,788.2 $ 20,436.1
============= ============= ============= ============= ============= =============
(1) 2004 and 2005 face amounts updated to include the term rider face amounts
for all variable universal life products.
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
Second Quarter 2005 (unaudited)
($ in millions)
Quarters ended 2004 2005
---------------------------------------------------------- ---------------------------
March June September December March June
------------- ------------- ------------- ------------- ------------- ------------
PRE-TAX INCOME
Fees $ 8.0 $ 7.3 $ 6.8 $ 7.5 $ 7.4 $ 10.3
Cost of Insurance 18.3 18.5 18.7 19.2 19.0 19.1
Interest Earned 1.2 1.7 1.2 1.8 1.5 1.4
Surrender Charges 1.7 1.4 1.8 2.1 1.9 1.7
------------- ------------- ------------- ------------- ------------- ------------
Total Revenues 29.2 28.9 28.5 30.6 29.8 32.5
------------- ------------- ------------- ------------- ------------- ------------
Net Death and Disability Benefits 8.3 7.5 6.1 8.6 8.9 8.3
Incurred Expenses 11.7 11.9 11.7 11.7 10.6 (14.7)
Interest Credited 1.0 1.0 1.0 .8 1.2 1.1
------------- ------------- ------------- ------------- ------------- ------------
Total Expenses 21.0 20.4 18.8 21.1 20.7 (5.3)
------------- ------------- ------------- ------------- ------------- ------------
Pre-tax Income 8.2 8.5 9.7 9.5 9.1 37.8
============= ============= ============= ============= ============= =============
---------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions 4.0 4.2 3.0 5.1 3.6 3.4
Controllable Expenses and Other 9.2 9.3 8.4 7.1 6.8 7.4
------------- ------------- ------------- ------------- ------------- ------------
Total Current Expenses 13.2 13.5 11.4 12.2 10.4 10.8
Acquisition Costs Deferred (6.6) (6.6) (5.5) (6.7) (4.1) (4.4)
Acquisition Costs Amortized 5.1 5.0 5.8 6.2 4.3 (21.1)
------------- ------------- ------------- ------------- ------------- ------------
Incurred Expenses 11.7 11.9 11.7 11.7 10.6 (14.7)
============= ============= ============= ============= ============= =============
----------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 67.0 60.0 45.1 73.3 63.3 49.0
Surrenders (15.6) (15.0) (16.1) (28.6) (27.4) (19.6)
Deaths (.4) (.4) (.6) (.8) (.9) (.7)
------------- ------------- ------------- ------------- ------------- ------------
Net Sales 51.0 44.6 28.4 43.9 35.0 28.7
Performance 56.5 10.0 (2.0) 114.8 (9.3) 22.0
Fees (8.4) (7.4) (7.0) (7.8) (7.5) (7.7)
Cost of Insurance (17.7) (18.0) (18.0) (18.7) (18.4) (18.6)
------------- ------------- ------------- ------------- ------------- ------------
Change in Funds Under Management 81.4 29.2 1.4 132.2 (.2) 24.4
Beginning Balance 1,698.9 1,780.3 1,809.5 1,810.9 1,943.1 1,942.8
------------- ------------- ------------- ------------- ------------- ------------
Ending Balance 1,780.3 1,809.5 1,810.9 1,943.1 1,942.9 1,967.2
============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE (1) $ 25,666.8 $ 25,596.7 $ 25,373.0 $ 25,382.0 $ 25,189.9 $ 25,041.0
============= ============= ============= ============= ============= =============
(1) 2004 and 2005 face amounts updated to include the term rider face amounts
for all variable universal life products.
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 5.9 $ 9.3 $ 19.2 $ 17.3 $ 11.9 $ 8.6
Cost of Insurance 48.9 44.1 90.7 78.9 71.6 66.2
Interest Earned 51.6 49.9 100.3 98.3 108.4 111.9
Surrender Charges 1.2 1.8 3.2 2.5 3.9 4.0
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 107.6 105.1 213.4 196.9 195.8 190.7
------------- ------------- ------------- ------------- ------------- -------------
Net Death Benefits and Supplemental Benefits 27.4 31.7 58.2 51.2 39.5 48.3
Incurred Expenses 10.0 22.5 46.2 46.0 44.3 34.6
Interest Credited 36.8 38.1 74.6 78.0 85.7 90.4
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 74.2 92.3 179.0 175.2 169.5 173.3
------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income 33.4 12.8 34.4 21.7 26.3 17.4
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 12.4 13.0 24.9 28.2 15.2 9.8
Controllable Expenses 30.2 32.7 64.4 75.0 52.6 32.1
------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 42.6 45.7 89.3 103.2 67.8 41.9
Acquisition Cost Deferred (28.6) (32.2) (63.5) (74.9) (40.2) (20.0)
Acquisition Cost Amortized (4.0) 9.0 20.4 17.7 16.7 12.7
------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses 10.0 22.5 46.2 46.0 44.3 34.6
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 112.6 110.4 229.4 217.8 149.3 104.6
Surrenders (48.0) (68.9) (126.2) (118.6) (107.4) (99.0)
Deaths (11.6) (7.0) (16.9) (19.4) (25.0) (18.5)
------------- ------------- ------------- ------------- ------------- -------------
Net Sales 53.0 34.5 86.3 79.8 16.9 (12.9)
Interest Credited 36.9 38.1 74.6 78.0 85.8 90.4
Fees (10.1) (11.2) (23.5) (24.9) (16.7) (10.5)
Cost of Insurance (48.9) (44.1) (90.7) (78.9) (71.6) (66.2)
------------- ------------- ------------- ------------- ------------- -------------
Change in Funds Under Management 30.9 17.3 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 1,641.6 1,581.3 1,610.7 1,564.0 1,510.0 1,495.6
============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE $ 14,583.3 $ 13,431.3 $ 14,103.7 $ 12,830.3 $ 10,476.7 $ 9,465.6
============= ============= ============= ============= ============= =============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Second Quarter 2005 (unaudited)
($ in millions)
PRE-TAX INCOME 2004 2005
Quarters ended ---------------------------------------------------------- ---------------------------
March June September December March June
------------- ------------- ------------- ------------- ------------- ------------
Fees $ 4.5 $ 4.8 $ 5.0 $ 5.0 $ 4.7 $ 1.2
Cost of Insurance 21.6 22.5 22.8 23.8 24.0 24.9
Interest Earned 24.0 25.9 24.4 26.0 25.4 26.2
Surrender Charges .7 1.1 .5 .9 .5 .7
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 50.8 54.3 52.7 55.7 54.6 53.0
------------- ------------- ------------- ------------- ------------- -------------
Net Death Benefits and Supplemental Benefits 19.3 12.3 13.1 13.4 13.9 13.5
Incurred Expenses 10.4 12.1 12.8 11.0 12.0 (2.0)
Interest Credited 19.2 19.0 18.1 18.4 18.4 18.4
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 48.9 43.4 44.0 42.8 44.3 29.9
------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income 1.9 10.9 8.7 12.9 10.3 23.1
============= ============= ============= ============= ============= =============
----------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions 6.9 6.2 4.0 7.9 5.4 7.1
Controllable Expenses 17.1 15.5 14.4 17.4 13.9 16.2
------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 24.0 21.7 18.4 25.3 19.3 23.3
Acquisition Cost Deferred (17.7) (14.5) (11.9) (19.4) (13.5) (15.1)
Acquisition Cost Amortized 4.1 4.9 6.3 5.1 6.2 (10.2)
------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses 10.4 12.1 12.8 11.0 12.0 (2.0)
============= ============= ============= ============= ============= =============
----------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits 54.7 55.7 56.2 62.8 54.9 57.7
Surrenders (31.9) (37.0) (27.7) (29.6) (23.3) (24.7)
Deaths (3.3) (3.7) (7.5) (2.4) (4.6) (7.0)
------------- ------------- ------------- ------------- ------------- -------------
Net Sales 19.5 15.0 21.0 30.8 27.0 26.0
Interest Credited 19.1 19.0 18.1 18.4 18.5 18.4
Fees (5.4) (5.8) (5.3) (7.0) (4.9) (5.2)
Cost of Insurance (21.6) (22.5) (22.8) (23.8) (24.0) (24.9)
------------- ------------- ------------- ------------- ------------- -------------
Change in Funds Under Management 11.6 5.7 11.0 18.4 16.6 14.3
Beginning Balance 1,564.0 1,575.6 1,581.3 1,592.3 1,610.7 1,627.3
------------- ------------- ------------- ------------- ------------- -------------
Ending Fund Balance 1,575.6 1,581.3 1,592.3 1,610.7 1,627.3 1,641.6
============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE $ 13,195.6 $ 13,431.3 $ 13,725.6 $ 14,103.7 $ 14,328.7 $ 14,583.3
============= ============= ============= ============= ============= =============
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Second Quarter 2005 (unaudited)
($ in millions)
LIFE INSURANCE SALE YTD June December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
WHOLESALER CHANNEL
Variable Universal Life $ 9.8 $ 9.5 $ 18.2 $ 30.1 $ 62.5 $ 53.8
Universal Life/Interest Sensitive 25.0 23.6 47.4 67.5 36.9 14.5
Term Life 7.6 7.9 15.3 19.2 15.1 11.4
Participating Whole Life 0.6 4.8 9.7
------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Annualized Premium (1) 42.4 41.0 80.9 117.4 119.3 89.4
============= ============= ============= ============= ============= =============
Variable Universal Life 2.4 5.1 10.8 20.1 25.1 49.7
Universal Life/Interest Sensitive 19.8 25.5 53.2 61.6 29.9 14.5
Participating Whole Life 0.8 2.4
------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Single Premium 22.2 30.6 64.0 81.7 55.8 66.6
============= ============= ============= ============= ============= =============
Variable Universal Life 12.1 14.6 29.0 50.1 87.6 103.5
Universal Life/Interest Sensitive 44.8 49.1 100.7 129.2 66.8 29.0
Term Life 7.6 7.9 15.3 19.2 15.1 11.4
Participating Whole Life 0.6 5.6 12.1
------------- ------------- ------------- ------------- ------------- -------------
Total Wholesaler Life Insurance Premium (2) 64.5 71.6 145.0 199.1 175.1 156.0
============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and
single) 25.6 31.9 60.0 149.5 222.5 83.7
Annuity 499.5 99.7 152.6 394.9 142.6 164.0
------------- ------------- ------------- ------------- ------------- -------------
Total Private Placement Life and
Annuity Deposits 525.1 131.6 212.6 544.4 365.1 247.7
============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 2,343.1 $ 1,720.2 $ 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
Second Quarter 2005 (unaudited)
($ in millions)
LIFE INSURANCE SALES
Quarters ended 2004 2005
--------------------------------------------------- -----------------------
March June September December March June
----------- ----------- ----------- ------------ ----------- ----------
WHOLESALER CHANNEL
Variable Universal Life $ 4.5 $ 5.0 $ 3.1 $ 5.6 $ 6.2 $ 3.5
Universal Life/Interest Sensitive 13.1 10.5 10.4 13.4 10.8 14.1
Term Life 3.9 4.0 3.3 4.2 3.8 3.8
----------- ----------- ----------- ------------ ----------- -----------
Life Insurance Annualized Premium (1) 21.5 19.5 16.8 23.2 20.8 21.4
=========== =========== =========== ============ =========== ===========
Variable Universal Life 2.5 2.6 2.0 3.7 .8 1.6
Universal Life/Interest Sensitive 11.1 14.4 13.3 14.4 8.5 11.4
----------- ----------- ----------- ------------ ----------- -----------
Life Insurance Single Premium 13.6 17.0 15.3 18.1 9.3 13.0
=========== =========== =========== ============ =========== ===========
Variable Universal Life 7.0 7.5 5.1 9.3 7.0 5.1
Universal Life/Interest Sensitive 24.2 25.0 23.7 27.8 19.3 25.5
Term Life 3.9 4.0 3.3 4.2 3.8 3.8
----------- ----------- ----------- ------------ ----------- -----------
Total Wholesaler Life Insurance Premium (2) $ 35.1 $ 36.5 $ 32.1 $ 41.3 $ 30.1 $ 34.4
=========== =========== =========== ============ =========== ===========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) 17.4 14.5 3.0 25.1 14.3 11.3
Annuity 28.8 70.9 41.0 12.0 487.6 11.9
----------- ----------- ----------- ------------ ----------- -----------
Total Private Placement Life and Annuity Deposits $ 46.2 $ 85.4 $ 44.0 $ 37.1 $ 501.9 $ 23.2
=========== =========== =========== ============ =========== ===========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,642.8 $ 1,720.2 $ 1,788.6 $ 1,898.5 $ 2,414.5 $ 2,343.1
=========== =========== =========== ============ =========== ===========
(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
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
-------------------------- ------------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------ ------------ ------------- ------------ -------------- ---------------
PRE-TAX INCOME
Fees $ 32.6 $ 31.5 $ 63.8 $ 57.2 $ 57.4 $ 65.0
Interest Earned 81.6 75.2 158.0 150.1 109.1 51.8
Surrender Charges 3.8 2.5 5.8 7.4 6.6 3.9
------------ ------------ ------------- ------------ -------------- ---------------
Total Revenues 118.0 109.2 227.6 214.7 173.1 120.7
------------ ------------ ------------- ------------ -------------- ---------------
Mortality Cost 3.4 3.4 8.7 4.4 12.2 5.8
Incurred Expenses 60.5 37.1 83.0 78.3 81.0 55.9
Interest Credited 57.7 61.1 123.3 133.0 99.4 47.3
------------ ------------ ------------- ------------ -------------- ---------------
Total Expenses 121.6 101.6 215.0 215.7 192.6 109.0
------------ ------------ ------------- ------------ -------------- ---------------
Pre-tax Income (Loss) (3.6) 7.6 12.6 (1.1) (19.5) 11.7
============ ============ ============= ============ ============== ===============
- -------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 19.0 22.9 42.7 51.1 81.3 44.1
Controllable Expenses 18.3 28.9 48.4 66.2 67.5 76.3
------------ ------------ ------------- ------------ -------------- ---------------
Total Current Expenses 37.3 51.8 91.1 117.3 148.8 120.4
Acquisition Cost Deferred (15.0) (27.7) (43.7) (65.5) (102.9) (83.5)
Acquisition Cost Amortized 38.2 13.0 35.6 26.5 35.1 19.0
------------ ------------ ------------- ------------ -------------- ---------------
Incurred Expenses $ 60.5 $ 37.1 $ 83.0 $ 78.3 $ 81.0 $ 55.9
============ ============ ============= ============ ============== ===============
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
Second Quarter 2005 (unaudited)
($ in millions)
PRE-TAX INCOME
Quarters ended 2004 2005
------------------------------------------------------------ ------------------------
March June September December March June
------------- ------------ -------------- ------------- ------------ ----------
Fees $ 15.7 $ 15.8 $ 15.9 $ 16.3 $ 16.5 $ 16.1
Interest Earned 37.3 37.9 39.7 43.2 41.6 39.9
Surrender Charges 1.1 1.4 2.1 1.2 1.9 2.0
------------- ------------ -------------- ------------- ------------ -----------
Total Revenues 54.1 55.1 57.7 60.7 60.0 58.0
------------- ------------ -------------- ------------- ------------ -----------
Mortality Cost .8 2.6 2.9 2.4 1.2 2.2
Incurred Expenses 20.9 16.2 20.1 25.9 23.6 36.9
Interest Credited 29.3 31.7 30.8 31.3 29.2 28.5
------------- ------------ -------------- ------------- ------------ -----------
Total Expenses 51.1 50.5 53.8 59.6 54.0 67.6
------------- ------------ -------------- ------------- ------------ -----------
Pre-tax Income (Loss) 3.0 4.6 3.9 1.1 6.0 (9.6)
============= ============ ============== ============= ============ ===========
- -----------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions 12.6 10.3 9.9 9.8 9.8 9.1
Controllable Expenses 16.1 12.8 10.1 9.5 8.5 9.8
------------- ------------ -------------- ------------- ------------ -----------
Total Current Expenses 28.7 23.1 20.0 19.3 18.3 18.9
Acquisition Cost Deferred (15.0) (12.7) (7.9) (8.0) (8.2) (6.8)
Acquisition Cost Amortized 7.2 5.8 8.0 14.6 13.5 24.8
------------- ------------ -------------- ------------- ------------ -----------
Incurred Expenses $ 20.9 $ 16.2 $ 20.1 $ 25.9 $ 23.6 $ 36.9
============= ============ ============== ============= ============ ===========
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Second Quarter 2005 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT (1) YTD June December 31,
------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------ ----------- ------------ ------------ ------------- -------------
Annuities
Deposits $ 674.4 $ 423.9 $ 670.9 $ 1,428.1 $ 2,258.4 $ 1,492.9
Surrenders (568.3) (373.8) (802.8) (867.2) (754.4) (510.6)
------------ ----------- ------------ ------------- ------------- -------------
Net Sales 106.1 50.1 (131.9) 560.9 1,504.0 982.3
Performance and Interest Credited 85.7 232.3 670.7 872.1 (330.6) (554.9)
Fees (31.9) (29.3) (59.8) (57.7) (58.8) (67.3)
Deaths (39.9) (44.8) (81.6) (70.4) (40.6) (34.3)
------------ ----------- ------------ ------------- ------------- -------------
Change in Funds Under Management 120.0 208.3 397.4 1,304.9 1,074.0 325.8
Beginning Balance 7,700.6 7,303.2 7,303.2 5,998.3 4,924.3 4,598.5
------------ ----------- ------------ ------------- ------------- -------------
Ending Balance $ 7,820.6 $ 7,511.5 $ 7,700.6 $ 7,303.2 $ 5,998.3 $ 4,924.3
============ =========== ============ ============= ============= =============
VA Funds in Guaranteed Interest Accounts (2) $ 1,796.4 $ 1,974.2 $ 1,939.1 $ 2,067.4 $ 2,159.3 $ 955.0
============ =========== ============ ============= ============= =============
Fixed Annuities (2) $ 1,153.2 $ 1,203.4 $ 1,175.5 $ 1,216.3 $ 902.1 $ 442.5
============ =========== ============ ============= ============= =============
(1) Funds restated for all periods presented due to Other Life and Annuity
reclassifications. See additional information on page 4 of this supplement.
(2) Amounts are included in the annuities funds under management table above.
14
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Second Quarter 2005 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT (1) 2004 2005
--------------------------------------------------------- --------------------------
Quarters ended March June September December March June
------------- ------------ ------------- ------------ ------------- -----------
Annuities
Deposits $ 215.0 $ 208.9 $ 140.8 $ 106.2 $ 580.9 $ 93.5
Surrenders (198.8) (175.0) (213.7) (215.3) (231.7) (336.6)
------------- ------------ ------------- ------------ ------------- ------------
Net Sales 16.2 33.9 (72.9) (109.1) 349.2 (243.1)
Performance and Interest Credited 212.8 19.5 6.5 431.9 (0.6) 86.3
Fees (15.3) (14.0) (15.1) (15.4) (16.2) (15.7)
Deaths (23.2) (21.8) (18.6) (18.0) (22.3) (17.6)
------------- ------------ ------------- ------------ ------------- ------------
Change in Funds Under Management 190.5 17.6 (100.1) 289.4 310.1 (190.1)
Beginning Balance 7,303.2 7,493.7 7,511.3 7,411.2 7,700.6 8,010.7
------------- ------------ ------------- ------------ ------------- ------------
Ending Balance $ 7,493.7 $ 7,511.3 $ 7,411.2 $ 7,700.6 $ 8,010.7 $ 7,820.6
============= ============ ============= ============ ============= ============
VA Funds in Guaranteed Interest Accounts (2) $ 2,000.4 $ 1,974.2 $ 1,960.5 $ 1,939.1 $ 1,873.8 $ 1,796.4
============= ============ ============= ============ ============= ============
Fixed Annuities (2) $ 1,212.7 $ 1,203.4 $ 1,201.8 $ 1,175.5 $ 1,165.9 $ 1,153.2
============= ============ ============= ============ ============= ============
(1) Funds restated for all periods presented due to Other Life and Annuity
reclassifications. See additional information on page 4 of this supplement.
(2) Amounts are included in the annuities funds under management table above.
15
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
---------------------------- --------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 357.8 $ 332.4 $ 332.5 $ 329.3 $ 310.4 $ 252.8
Universal Life 294.6 241.9 262.0 219.2 163.1 134.7
Variable Annuities 279.2 302.4 296.7 289.0 264.9 211.4
Fixed Annuities 42.5 49.5 48.3 48.0 29.2 3.5
Participating 570.2 579.4 576.9 576.3 572.9 531.8
Other
Offset for Unrealized Investment Gains and Losses (83.6) (40.4) (86.5) (94.1) (106.4) (10.5)
------------- ------------- ----------- ----------- ----------- -----------
Total $ 1,460.7 $ 1,465.2 $ 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 $ 425.0 $ 552.0 $ 441.1 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 114.0 163.2 123.5 183.0 234.9
Statutory Reserve, Net of Reinsurance 15.0 17.1 15.0 17.3 15.8
GAAP Reserve, Net of Reinsurance $ 9.6 $ 7.7 $ 9.1 $ 7.8 $ 8.7
=============
(1) Comparable data is not available for 2001.
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Second Quarter 2005 (unaudited)
($ in millions)
2004 2005
---------------------------------------------------- ------------------------
Quarters ended March June September December March June
----------- ----------- ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 330.8 $ 332.4 $ 332.1 $ 332.5 $ 332.3 $ 357.8
Universal Life 232.3 241.9 247.5 262.0 269.2 294.6
Variable Annuities 296.3 302.4 302.7 296.7 292.8 279.2
Fixed Annuities 48.5 49.5 48.9 48.3 46.8 42.5
Participating 578.3 579.4 577.6 576.9 579.9 570.2
Other
Offset for Unrealized Investment Gains and Losses (127.7) (40.4) (80.1) (86.5) (26.7) (83.6)
----------- ----------- ----------- ----------- ----------- -----------
Total $ 1,358.5 $ 1,465.2 $ 1,428.7 $ 1,429.9 $ 1,494.3 $ 1,460.7
=========== =========== =========== =========== =========== ===========
- ---------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 564.4 $ 552.0 $ 576.4 $ 441.1 $ 459.3 $ 425.0
Death Benefit in Excess of Fund Value,
Net of Reinsurance 166.4 163.2 173.8 123.5 130.1 114.0
Statutory Reserve, Net of Reinsurance 16.5 17.1 18.5 15.0 15.8 15.0
GAAP Reserve, Net of Reinsurance $ 6.9 $ 7.7 $ 10.3 $ 9.1 $ 9.3 $ 9.6
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Second Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD June December 31,
-------------------------- ------------------------------------------------------
2005 2004 2004 2003 2002 2001
----------- ------------ ----------- ----------- ------------ ------------
Investment Management Fees $ 96.1 $ 111.7 $ 219.0 $ 205.5 $ 219.2 $ 211.9
Mutual Funds - Ancillary Fees (1) 19.9 19.2 38.3 35.5 38.7 47.1
Other Revenue 2.9 5.0 7.7 9.3 10.2 12.9
----------- ------------ ----------- ----------- ------------ ------------
Total Revenues 118.9 135.9 265.0 250.3 268.1 271.9
----------- ------------ ----------- ----------- ------------ ------------
Employment Expenses 56.5 67.4 132.6 129.6 134.9 123.3
Other Operating Expenses (1) 43.2 45.3 85.9 86.7 93.4 103.0
Amortization of Intangibles 16.7 16.6 33.8 33.2 32.5 49.0
Intangible Asset Impairments 66.3
----------- ------------ ----------- ----------- ------------ ------------
Total Operating Expenses 116.4 129.3 252.3 249.5 327.1 275.3
----------- ------------ ----------- ----------- ------------ ------------
Management Income (Loss) 2.5 6.6 12.7 .8 (59.0) (3.4)
Other Income - Net 1.0 .8 1.7 2.5 1.0 1.6
Minority Interest (5.1) (7.2) (14.3) (12.0) (11.9) (6.9)
----------- ------------ ----------- ----------- ------------ ------------
Segment Income (Loss), before income taxes (1.6) .2 .1 (8.7) (69.9) (8.7)
Applicable Income taxes (Benefit) (.4) .4 2.3 (3.3) (6.0) 2.6
----------- ------------ ----------- ----------- ------------ ------------
Segment Income (Loss) $ (1.2) $ (0.2) $ (2.2) $ (5.4) $ (63.9) $ (11.3)
=========== ============ =========== =========== ============ ============
(1) Prior to 2004, mutual funds - ancillary fees were presented net of trail
commissions. Effective for 2004, trail commissions are presented as other
operating expenses. All prior periods have been conformed to the current
presentation.
18
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Second Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
------------------------------------------------------ -----------------------------
Quarters ended March June September December March June
----------- ---------- -------------- ------------- -------------- -------------
Investment Management Fees $ 57.3 $ 54.4 $ 52.6 $ 54.7 $ 49.5 $ 46.6
Mutual Funds - Ancillary Fees (1) 9.7 9.5 9.4 9.8 9.8 10.1
Other Revenue 2.8 2.2 1.4 1.3 1.3 1.7
----------- ---------- ------------ ------------- -------------- -------------
Total Revenues 69.8 66.1 63.4 65.8 60.6 58.4
----------- ---------- ------------ ------------- -------------- -------------
Employment Expenses 34.8 32.6 31.3 33.8 29.2 27.3
Other Operating Expenses (1) 23.3 22.0 20.6 20.1 21.9 21.3
Amortization of Intangibles 8.3 8.3 8.5 8.7 8.4 8.3
----------- ---------- ------------- ------------- -------------- ------------
Total Operating Expenses 66.4 62.9 60.4 62.6 59.5 56.9
----------- ---------- ------------- ------------- -------------- -------------
Management Income (Loss) 3.4 3.2 3.0 3.2 1.1 1.5
Other Income - Net .4 .3 .3 .6 .4 .6
Minority Interest (3.7) (3.4) (3.3) (3.9) (3.2) (2.0)
----------- ---------- ------------- ------------- -------------- -------------
Segment Income (Loss), before income taxes .1 .1 .0 (.1) (1.7) .1
Applicable Income Taxes (Benefit) .4 .0 .0 1.9 (.5) .1
----------- ---------- ------------- ------------- -------------- -------------
Segment Income (Loss) $ (0.3) $ 0.1 $ .0 $ (2.0) $ (1.2) $ (0.0)
=========== ========== ============= ============= ============== =============
19
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
-------------------------- -----------------------------------------------------
2005 2004 2004 2003 2002 2001
------------ ------------ ------------ ------------ ------------ -------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 954.1 $ 1,107.6 $ 2,109.9 $ 2,268.3 $ 4,421.1 $ 2,721.8
Outflows (2,692.6) (2,090.2) (5,203.0) (2,656.6) (2,716.4) (2,546.4)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (1,738.5) (982.6) (3,093.1) (388.3) 1,704.7 175.4
Performance (472.7) 447.0 950.3 1,537.5 (3,278.2) (3,545.8)
Other (421.4) 1,330.0
Acquisitions (Divestitures) 5,914.3 748.6
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (2,632.6) (535.6) (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 10,883.0 15,122.8 13,515.6 15,658.4 14,509.2 8,838.4
------------ ------------ ------------ ------------ ------------ ------------
MUTUAL FUNDS:(1)
Inflows 1,114.8 979.3 1,816.0 1,744.8 1,513.1 1,660.1
Outflows (1,398.6) (1,223.9) (2,301.9) (2,039.8) (2,379.2) (2,449.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (283.8) (244.6) (485.9) (295.0) (866.1) (789.8)
Performance 12.0 71.0 975.5 1,946.3 (2,406.0) (2,985.3)
Other 84.7 (29.7) 273.5 (182.2) (153.7) (148.9)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (187.1) (203.3) 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 14,311.6 13,532.3 14,498.7 13,735.6 12,266.5 15,692.3
------------ ------------ ------------ ------------ ------------ ------------
INSTITUTIONAL PRODUCTS:(1)
Inflows 4,443.9 1,530.3 2,743.9 2,974.7 4,312.6 4,989.2
Outflows (2,762.6) (3,534.1) (5,750.9) (3,452.2) (4,480.0) (3,766.9)
------------ ------------ ------------ ------------ ------------ -------------
Net Flows 1,681.3 (2,003.8) (3,007.0) (477.5) (167.4) 1,222.3
Performance 128.4 74.3 997.2 2,304.3 (2,178.9) (723.4)
Other 410.7 50.3 37.5 (19.9) (1,294.6) 272.6
Acquisitions (Divestitures) 1,507.7 105.9
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 2,220.5 (1,879.2) (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 17,114.6 14,987.3 14,894.2 16,866.5 15,059.6 17,192.8
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS:(1)
Inflows 6,512.8 3,617.2 6,669.8 6,987.8 10,246.8 9,371.1
Outflows (6,853.8) (6,848.2) (13,255.8) (8,148.6) (9,575.6) (8,763.2)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (341.0) (3,231.0) (6,586.0) (1,160.8) 671.2 607.9
Performance (332.3) 592.3 2,923.0 5,788.1 (7,863.1) (7,254.5)
Other 74.0 20.6 311.0 (202.1) (118.3) 123.7
Acquisitions (Divestitures) 7,422.0 854.5
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (599.3) (2,618.1) (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 $ 42,309.2 $ 43,642.4 $ 42,908.5 $ 46,260.5 $ 41,835.3 $ 41,723.5
============ ============ ============ ============ ============ =============
Variable Product Change in Assets Under
Management included in Mutual Funds above $ (177.7) $ 5.9 $ 211.7 $ 200.4 $ (686.5) $ (734.7)
============ ============ ============ ============ ============ =============
(1) Effective in 2004, closed-end mutual funds were reclassified from
institutional products to mutual funds, and the general account assets of
our life companies were removed. All prior periods have been revised to
conform with the current presentation.
20
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
Second Quarter 2005 (unaudited)
($ in millions)
2004 2005
--------------------------------------------------------- ---------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ ------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 649.8 $ 457.8 $ 646.2 $ 356.1 $ 508.1 $ 446.0
Outflows (927.3) (1,162.9) (1,175.1) (1,937.7) (1,499.8) (1,192.8)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (277.5) (705.1) (528.9) (1,581.6) (991.7) (746.8)
Performance 315.9 131.1 (708.6) 1,211.9 (527.9) 55.2
Other (421.4)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 38.4 (574.0) (1,237.5) (369.7) (1,519.6) (1,113.0)
Beginning Balance 15,658.4 15,696.8 15,122.8 13,885.3 13,515.6 11,996.0
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 15,696.8 15,122.8 13,885.3 13,515.6 11,996.0 10,883.0
------------ ------------ ------------ ------------ ------------ ------------
MUTUAL FUNDS: (1)
Inflows 611.9 367.4 344.2 492.4 549.2 565.6
Outflows (573.1) (650.8) (469.5) (608.5) (793.3) (605.4)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows 38.8 (283.4) (125.3) (116.1) (244.1) (39.8)
Performance 347.9 (276.8) (22.1) 926.6 (372.4) 384.5
Other (57.6) 27.9 25.6 277.6 (5.7) 90.4
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 329.1 (532.3) (121.8) 1,088.1 (622.2) 435.1
Beginning Balance 13,735.6 14,064.7 13,532.4 13,410.6 14,498.7 13,876.5
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 14,064.7 13,532.4 13,410.6 14,498.7 13,876.5 14,311.6
------------ ------------ ------------ ------------ ------------ ------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 597.4 932.9 818.9 394.8 4,003.8 440.1
Outflows (798.5) (2,735.6) (928.7) (1,288.1) (1,313.3) (1,449.2)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (201.1) (1,802.7) (109.8) (893.3) 2,690.5 (1,009.1)
Performance 235.4 (161.2) 157.7 765.2 (229.3) 357.6
Other (6.3) 56.6 (9.9) (2.9) (3.0) 413.7
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 28.0 (1,907.3) 38.0 (131.0) 2,458.2 (237.8)
Beginning Balance 16,866.5 16,894.5 14,987.2 15,025.2 14,894.2 17,352.4
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance 16,894.5 14,987.2 15,025.2 14,894.2 17,352.4 17,114.6
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRIVATE CLIENT AND
INSTITUTIONAL PRODUCTS: (1)
Inflows 1,859.1 1,758.1 1,809.3 1,243.3 5,061.1 1,451.7
Outflows (2,298.9) (4,549.3) (2,573.3) (3,834.3) (3,606.4) (3,247.4)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (439.8) (2,791.2) (764.0) (2,591.0) 1,454.7 (1,795.7)
Performance 899.2 (306.9) (573.0) 2,903.7 (1,129.6) 797.3
Other (63.9) 84.5 15.7 274.7 (8.7) 82.7
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management 395.5 (3,013.6) (1,321.3) 587.4 316.4 (915.7)
Beginning Balance 46,260.5 46,656.0 43,642.4 42,321.1 42,908.5 43,224.9
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance $ 46,656.0 $ 43,642.4 $ 42,321.1 $ 42,908.5 $ 43,224.9 $ 42,309.2
============ ============ ============ ============ ============ ============
Variable Product Change in Assets
Under Management included in
Mutual Funds above $ 10.8 $ (4.9) $ (39.0) $ 244.7 $ (132.1) $ (45.7)
============ ============ ============ ============ ============ ============
(1) Effective in 2004, closed-end mutual funds were reclassified from
institutional products to mutual funds, and the general account assets of
our life companies were removed. All prior periods have been revised to
conform with the current presentation.
21
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
--------------------------- ---------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------ ------------ ------------ ------------ ------------ ------------
SEGMENT INCOME
Operating Gain (Loss) $ 7.2 $ (2.1) $ (1.8) $ (5.8) $ (7.4) $ (7.3)
Realized Gains (Losses) on Cash and
Stock Distributions 7.9 (1.0) 7.4 4.9 (4.7) 26.2
Change in Unrealized Gains on
Investments Held in Partnerships (14.6) 19.1 13.7 37.1 (47.2) (178.5)
------------ ------------ ------------ ------------ ------------ ------------
Equity in Partnership Earnings,
before income taxes .5 16.0 19.3 36.2 (59.3) (159.6)
Applicable Income Taxes (Benefit) .2 5.6 6.7 12.7 (20.7) (55.9)
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) .3 10.4 12.6 23.5 (38.6) (103.7)
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 13.7 20.5 37.7 31.0 42.2 47.0
Equity In Earnings (Losses)
of Partnerships .5 16.0 19.3 36.2 (59.3) (159.6)
Distributions (27.6) (26.6) (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 (13.4) 9.9 6.6 (31.5) (63.9) (175.6)
Beginning Balance 202.9 196.3 196.3 227.8 291.7 467.3
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance $ 189.6 $ 206.2 $ 202.9 $ 196.3 $ 227.8 $ 291.7
============ ============ ============ ============ ============ ============
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Second Quarter 2005 (unaudited)
($ in millions)
2004 2005
--------------------------------------------------------- ---------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ ------------
SEGMENT INCOME
Operating Gain (Loss) $ (0.7) $ (1.4) $ 0.2 $ 0.2 $ 10.9 $ (3.7)
Realized Gains (Losses) on Cash and
Stock Distributions (3.4) 2.4 5.4 3.0 .2 7.7
Change in Unrealized Gains on Investments
Held in Partnerships 15.7 3.4 (9.5) 4.0 (13.3) (1.3)
------------ ------------ ------------ ------------ ------------ ------------
Equity in Partnership Earnings,
before income taxes 11.6 4.4 (3.9) 7.2 (2.2) 2.7
Applicable Income Taxes (Benefit) 4.1 1.6 (1.4) 2.5 (.8) 1.0
------------ ------------ ------------ ------------ ------------ ------------
Segment Income (Loss) 7.5 2.9 (2.5) 4.7 (1.4) 1.7
============ ============ ============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) 7.9 12.6 8.5 8.7 9.5 4.2
Equity In Earnings (Losses) of Partnerships 11.6 4.4 (3.9) 7.2 (2.2) 2.7
Distributions (13.6) (13.0) (12.9) (10.9) (13.0) (14.6)
------------ ------------ ------------ ------------ ------------ ------------
Change in Venture Capital Investments 5.9 4.0 (8.3) 5.0 (5.7) (7.7)
Beginning Balance 196.3 202.2 206.2 197.9 202.9 197.2
------------ ------------ ------------ ------------ ------------ ------------
Ending Balance $ 202.2 $ 206.2 $ 197.9 $ 202.9 $ 197.2 $ 189.5
============ ============ ============ ============ ============ ============
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Second Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD June December 31,
--------------------------- ---------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------ ------------ ------------ ------------ ------------ ------------
Corporate Investment Income $ .2 $ .4 $ .4 $ 4.3 $ 1.5 $ 7.2
Interest Expense on Indebtedness (22.5) (19.7) (40.8) (39.6) (31.4) (27.3)
Corporate Expenses (11.0) (8.2) (18.9) (11.0) (10.4) (19.9)
Other .6 (1.2) .2 (1.5) .3 5.3
------------ ------------ ------------ ------------ ------------ ------------
Segment Loss, Before Income Taxes (32.7) (28.7) (59.1) (47.8) (40.0) (34.7)
Applicable Income Tax Benefit (11.7) (10.4) (22.9) (18.8) (29.8) (20.9)
------------ ------------ ------------ ------------ ------------ ------------
Segment Loss $ (21.0) $ (18.3) $ (36.2) $ (29.0) $ (10.2) $ (13.8)
============ ============ ============ ============ ============ ============
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Second Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
--------------------------------------------------------- ---------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------ ------------
Corporate Investment Income (Loss) $ .9 $ (.4) $ .1 $ .1
Interest Expense on Indebtedness (9.8) (9.9) $ (10.1) $ (11.0) (11.1) (11.4)
Corporate Expenses (3.9) (4.3) (5.1) (5.6) (5.8) (5.2)
Other .1 (1.4) (.7) 2.1 .5 .1
------------ ------------ ------------ ------------ ------------ ------------
Segment Loss, Before Income Taxes (12.7) (16.0) (15.9) (14.5) (16.3) (16.4)
Applicable Income Tax Benefit (4.4) (6.0) (5.2) (7.4) (5.7) (5.9)
------------ ------------ ------------ ------------ ------------ ------------
Segment Loss $ (8.3) $ (10.0) $ (10.7) $ (7.1) $ (10.6) $ (10.5)
============ ============ ============ ============ ============ ============
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
--------------------------- ---------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------ ------------ ------------ ------------ ------------ ------------
REVENUES
Premiums $ 455.9 $ 470.9 $ 990.6 $ 1,042.2 $ 1,082.0 $ 1,112.7
Insurance and Investment Product Fees 256.4 270.1 534.9 500.9 493.8 469.7
Broker-dealer commission and
distribution fee revenues 13.9 44.5 56.9 81.5 85.0 96.3
Net Investment Income 536.8 537.0 1,075.7 1,107.4 940.5 882.9
Unrealized Gain on Trading Equity Securities .0 .0 85.9
Net Realized Investment Gains (Losses) (25.7) 16.9 (.8) (98.5) (133.9) (84.9)
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 1,237.3 1,339.4 2,743.2 2,633.5 2,467.4 2,476.7
------------ ------------ ------------ ------------ ------------ ------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 683.3 686.9 1,422.2 1,454.0 1,436.1 1,406.7
Policyholder Dividends 167.2 211.2 404.7 418.8 401.8 400.1
Policy Acquisition Cost Amortization 38.1 45.7 110.2 94.1 59.2 133.0
Intangible Asset Impairments 66.3
Intangible Asset Amortization 17.2 16.6 33.8 33.2 32.5 49.4
Interest Expense on Indebtedness 22.5 19.7 40.8 39.6 31.4 27.3
Interest Expense on Non-recourse
Collateralized Obligations 19.2 16.4 33.6 48.9 30.5 42.3
Demutualization Expenses .0 .0 25.9
Other Operating Expenses 244.5 299.3 560.7 565.1 613.2 654.1
------------ ------------ ------------ ------------ ------------ ------------
Total Expenses 1,192.0 1,295.8 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 45.3 43.6 137.2 (20.2) (203.6) (262.1)
Applicable Income Taxes (Benefit) 13.0 13.3 40.5 (18.3) (58.8) (108.7)
------------ ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing Operations
before Minority Interest 32.3 30.3
and equity in undistributed earnings
(losses) of affiliates 96.7 (1.9) (144.8) (153.4)
Minority Interest in Net Income of
Subsidiaries (.5) (.4) (.5) (.3)
Equity in undistributed earnings
(losses) of affiliates .6 (10.4) (1.8) 4.6 6.4
------------ ------------ ------------ ------------ ------------ ------------
Income (Loss) from Continuing Operations 31.8 30.9 86.3 (4.1) (140.7) (147.3)
Discontinued Operations
Income (Loss) from Discontinued Operations .1 .1 (2.1) (1.3) (2.5)
------------ ------------ ------------ ------------ ------------ ------------
Income (Loss) Before Cumulative Effect
of Accounting Changes 31.8 31.0 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) $ 31.8 $ 31.0 $ 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)
Second Quarter 2005 (unaudited)
($ in millions)
2004 2005
------------------------------------------------ ----------------------
Quarters ended March June September December March June
----------- ---------- ----------- ---------- ---------- ----------
REVENUES
Premiums $ 232.7 $ 238.2 $ 268.8 $ 250.9 $ 226.8 $ 229.1
Insurance and Investment Product Fees 136.1 134.0 130.1 134.7 129.0 127.4
Broker-dealer commission and distribution fee revenues 24.3 20.2 5.7 6.7 6.8 7.1
Net Investment Income 277.7 259.3 265.0 273.7 268.7 268.1
Unrealized Gain on Trading Equity Securities 85.9
Net Realized Investment Gains (Losses) 2.5 14.4 (9.1) (8.6) (17.9) (7.8)
----------- ---------- ----------- ---------- ---------- ----------
Total Revenues 673.3 666.1 660.5 743.3 613.4 623.9
----------- ---------- ----------- ---------- ---------- ----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 345.6 341.3 373.3 362.0 343.3 340.0
Policyholder Dividends 105.9 105.3 98.6 94.9 83.8 83.4
Policy Acquisition Cost Amortization 22.6 23.1 30.6 33.9 28.2 9.9
Intangible Asset Amortization 8.3 8.3 8.5 8.7 8.4 8.8
Interest Expense on Indebtedness 9.8 9.9 10.1 11.0 11.1 11.4
Interest Expense on Non-recourse Collateralized Obligations 8.9 7.5 9.1 8.1 8.9 10.3
Other Operating Expenses 149.1 150.2 123.9 137.5 117.3 127.3
----------- ---------- ----------- ---------- ---------- ----------
Total Expenses 650.2 645.6 654.1 656.1 600.9 591.1
----------- ---------- ----------- ---------- ---------- ----------
Income from Continuing Operations before Income Taxes,
Minority Interest and equity in undistributed earnings
(losses) of affiliates 23.1 20.5 6.4 87.2 12.5 32.8
Applicable Income Taxes (Benefit) 7.1 6.2 (.6) 27.8 2.8 10.2
----------- ---------- ----------- ---------- ---------- ----------
Income (Loss) from Continuing Operations
before Minority Interest and equity in undistributed
earnings (losses) of affiliates 16.0 14.3 7.0 59.4 9.7 22.6
Minority Interest in Net Income of Subsidiaries (.3) (.2)
Equity in undistributed earnings (loss) of affiliates .3 .3 .1 (11.1)
----------- ---------- ----------- ---------- ---------- ----------
Income from Continuing Operations 16.3 14.6 7.1 48.3 9.4 22.4
Income (Loss) from Discontinued Operations .3 (.2)
----------- ---------- ----------- ---------- ---------- ----------
Net Income $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4 $ 22.4
=========== ========== =========== ========== ========== ==========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING SECOND QUARTER 2005 INCOME STATEMENT
Second Quarter 2005 (unaudited)
($ in millions)
Exclusions from
Year-to-Date June 30, 2005 Operating Segments Other Segments Segment Income
----------------------- --------------------- ---------------------------------
Life Corporate Realized
& Asset Venture & Investment Intra-Segment
Consolidated Annuity Management Capital Other Losses Other Eliminations
------------ ---------- ------------ ---------- ---------- ----------- -------- ------------
REVENUES
Premiums $ 455.9 $ 455.9
Insurance and Investment Product Fees 256.4 152.0 $ 106.0 $ (1.6)
Broker-dealer commission and
distribution fee revenues 13.9 13.9
Net Investment Income 536.8 501.1 $ .5 $ 29.4 5.8
Net Realized Investment Gains (25.7) $ (25.7)
------------ ---------- ------------ ---------- ---------- ----------- -------- ------------
Total Revenues 1,237.3 1,109.0 119.9 .5 29.4 (25.7) 4.2
------------ ---------- ------------ ---------- ---------- ----------- -------- ------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 683.3 678.8 4.5
Policyholder Dividends 167.2 178.3 (11.1)
Policy Acquisition Cost Amortization 38.1 41.9 (3.8)
Intangible Asset Amortization 17.2 16.7 $ .5
Interest Expense on Indebtedness 22.5 22.5
Interest Expense on Non-recourse
Collateralized Obligations 19.2 19.2
Other Operating Expenses 244.5 107.3 104.8 15.9 12.3 4.2
------------ ---------- ------------ ---------- ---------- ----------- -------- ------------
Total Expenses 1,192.0 1,006.3 121.5 62.1 (14.9) 12.8 4.2
------------ ---------- ------------ ---------- ---------- ----------- -------- ------------
Income (Loss) from Continuing
Operations before Income Taxes,
Taxes, Minority Interest and
equity in undistributed earnings
(losses) of affiliates 45.3 102.7 (1.6) .5 (32.7) (10.8) (12.8)
Applicable Income Taxes (Benefit) 13.0 33.1 (.4) .2 (11.7) (3.5) (4.7)
------------ ---------- ------------ ---------- ---------- ----------- -------- ------------
Income (Loss) from Continuing
Operations before Minority Interest
and equity in undistributed earnings
(losses) of affiliates 32.3 69.6 (1.2) .3 (21.0) (7.3) (8.1)
Minority Interest in Net Income of
Subsidiaries (.5) (.5)
------------ ---------- ------------ ---------- ---------- ----------- -------- ------------
Income (Loss) from Continuing
Operations $ 31.8 $ 69.6 $ (1.2) $ .3 $ (21.0) $ (7.3) $ (8.6) $ 0.0
============ ========== ============ ========== ========== =========== ======== ============
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Second Quarter 2005 (unaudited)
($ in millions, except par value)
December 31,
June ------------------------------------------------------------------
2005 2004 2003 2002 2001
--------------- --------------- --------------- --------------- ---------------
ASSETS:
Available-for-Sale Debt Securities,
at fair value $ 13,767.0 $ 13,476.3 $ 13,273.0 $ 11,889.5 $ 9,774.1
Available-for-Sale Equity Securities,
at fair value 275.0 304.3 312.0 385.9 287.7
Trading Equity Securities, at fair value 87.3
Mortgage Loans, at unpaid principal balances 164.9 207.9 284.1 468.8 535.8
Policy Loans, at unpaid principal balances 2,212.0 2,196.7 2,241.4 2,195.9 2,172.2
Venture Capital Partnerships, at equity in
net assets 254.5 255.3 234.9 228.6 291.7
Affiliate Equity and Debt Securities, at
cost plus equity in undistributed earnings 47.5 134.7 150.6
Other Investments 358.1 371.8 402.0 398.9 376.0
--------------- --------------- --------------- --------------- ---------------
17,031.5 16,899.6 16,794.9 15,702.3 13,588.1
Available-for-Sale Investments Pledged as
Collateral, at fair value 1,222.4 1,278.8 1,350.0 1,358.7 550.6
--------------- --------------- --------------- --------------- ---------------
Total Investments 18,253.9 18,178.4 18,144.9 17,061.0 14,138.7
Cash and Cash Equivalents 361.4 435.0 447.9 1,110.5 823.3
Deferred Policy Acquisition Costs 1,460.7 1,429.9 1,367.7 1,234.1 1,123.7
Goodwill and Other Intangible Assets 720.2 735.6 755.0 747.7 858.6
Other Assets 637.6 633.4 760.5 711.4 566.1
Separate Account Assets 7,216.9 6,950.3 6,083.2 4,371.2 5,025.2
--------------- --------------- --------------- --------------- ---------------
Total Assets $ 28,650.7 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6
=============== =============== =============== =============== ===============
LIABILITIES:
Policy Liabilities and Accruals $ 13,328.7 $ 13,132.3 $ 13,088.6 $ 12,680.0 $ 11,846.4
Policyholder Deposit Funds 3,321.8 3,492.4 3,642.7 3,395.7 1,515.2
Indebtedness 689.1 690.8 639.0 644.3 599.3
Stock Purchase Contracts 124.6 131.9 128.8 137.6
Other Liabilities 608.1 587.3 557.1 570.8 614.1
Non-recourse Collateralized Debt
Obligation Liabilities 1,323.0 1,355.2 1,472.0 1,609.5 632.7
Separate Account Liabilities 7,216.9 6,950.3 6,083.2 4,371.2 5,020.1
--------------- --------------- --------------- --------------- ---------------
Total Liabilities and minority interest 26,612.2 26,340.2 25,611.4 23,409.1 20,227.8
--------------- --------------- --------------- --------------- ---------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion
shares authorized; 94,079,400 shares
outstanding (June 30, 2005) 1.0 1.0 1.0 1.0 1.0
Additional paid in capital 2,438.1 2,435.2 2,431.4 2,424.4 2,413.3
Deferred Compensation on Restricted Stock
Units (4.2) (3.6) (3.6)
Accumulated Earnings (Deficit) (269.8) (285.6) (355.3) (331.4) (43.3)
Treasury stock, at cost: 11,328,018 shares
(June 30, 2005) (179.5) (182.6) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income (Loss) 52.9 58.0 63.7 (71.5) 2.8
--------------- --------------- --------------- --------------- ---------------
Total Stockholders' Equity 2,038.5 2,022.4 1,947.8 1,826.8 2,307.8
--------------- --------------- --------------- --------------- ---------------
Total Liabilities, Minority Interest
and Stockholders' Equity $ 28,650.7 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6
=============== =============== =============== =============== ===============
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
Second Quarter 2005 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
6/30/2005 12/31/04 6/30/2005 12/31/04 6/30/2005 12/31/04
------------ ------------ ------------ ------------ ------------- ------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 8,901.4 $ 8,668.9 $ 7,270.0 $ 7,123.2 $ 1,631.4 $ 1,545.7
BBB 3,770.7 3,733.3 2,490.7 2,493.6 1,280.0 1,239.7
------------ ------------ ------------ ------------ ------------- ------------
Total Investment Grade 12,672.1 12,402.2 9,760.7 9,616.8 2,911.4 2,785.4
BB 838.6 814.6 743.1 698.6 95.5 116.0
B 165.2 150.9 119.1 97.3 46.1 53.6
CCC and Lower 65.3 68.9 55.4 51.1 9.9 17.8
In or Near Default 25.8 39.7 22.2 36.1 3.6 3.6
------------ ------------ ------------ ------------ ------------- ------------
Total Debt Securities $ 13,767.0 $ 13,476.3 $ 10,700.5 $ 10,499.9 $ 3,066.5 $ 2,976.4
============ ============ ============ ============ ============= ============
% Below Investment Grade 8.0% 8.0% 8.8% 8.4% 5.1% 6.4%
- -----------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON
DEBT AND EQUITY SECURITIES
As of March 31, 2005 Total Outside Closed Block Closed Block
-------------------------- --------------------------- ----------------------------
Gains Losses Gains Losses Gains Losses
------------ ------------ ------------ ------------ ------------ ------------
Total Debt Securities $ 679.4 $ (64.6) $ 192.1 $ (45.6) $ 487.3 $ (19.0)
Equity Securities 103.7 (2.8) 89.6 (0.7) 14.1 (2.1)
------------ ------------ ------------ ------------ ------------ ------------
Total Unrealized Gains (Losses) 783.1 (67.4) 281.7 (46.3) 501.4 (21.1)
------------ ------------ ------------ ------------ ------------ ------------
Applicable Policyholder Dividend
Obligation 501.4 (21.1) 0.0 0.0 501.4 (21.1)
Applicable Deferred Acquisition
Cost (Credit) 96.4 (15.5) 96.4 (15.5) 0.0 0.0
Applicable Deferred Income Tax
(Benefit) 64.9 (10.8) 64.9 (10.8) 0.0 0.0
------------ ------------ ------------ ------------ ------------ ------------
Total Offsets to Net Unrealized
Gains (Losses) 662.7 (47.4) 161.3 (26.3) 501.4 (21.1)
------------ ------------ ------------ ------------ ------------ ------------
Net Unrealized Gains (Losses) $ 120.4 $ (20.0) $ 120.4 $ (20.0) $ 0.0 $ 0.0
============ ============ ============ ============ ============ ============
$ 100.4 $ 100.4 $ 0.0
============ ============ ============
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
Second Quarter 2005 (Quarters unaudited)
($ in millions)
Quarters ended YTD June December 31,
--------------------------- -------------------------------------------
2005 2004 2004 2003 2002
------------ ------------ ------------ ------------- ------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 396.7 $ 383.5 $ 772.1 $ 765.5 $ 730.8
Equity Securities 5.1 2.0 4.5 4.6 4.2
Mortgages 10.6 11.3 22.5 32.6 40.4
Policy Loans 81.3 83.9 167.1 171.7 171.8
Venture Capital .5 19.4 25.5 49.1 (59.3)
Cash & Cash Equivalents 3.5 1.7 4.9 7.0 11.9
Other (2) 20.8 20.6 48.8 35.0 18.9
------------ ------------ ------------ ------------- ------------
Total Cash and Invested Assets 518.5 522.4 1,045.4 1,065.5 918.7
------------ ------------ ------------ ------------- ------------
Investment Expenses 5.1 4.7 9.8 10.0 9.2
------------ ------------ ------------ ------------- ------------
Total Net Investment Income $ 513.4 $ 517.7 $ 1,035.6 $ 1,055.5 $ 909.5
============ ============ ============ ============= ============
ANNUALIZED YIELDS
Debt Securities 6.0% 5.9% 5.9% 6.0% 6.3%
Equity Securities 3.4% 2.0% 1.3% 1.4% 1.3%
Mortgages 13.1% 8.5% 11.0% 11.2% 8.8%
Policy Loans 7.7% 7.7% 7.9% 8.0% 8.2%
Venture Capital 0.4% 2.9% 10.8% 23.0% -22.8%
Cash & Cash Equivalents 1.6% 0.8% 1.1% 1.3% 1.4%
Other (2) 13.0% 9.9% 13.0% 10.5% 3.6%
------------ ------------ ------------ ------------- ------------
Total Cash and Invested Assets 6.2% 6.0% 6.2% 6.4% 5.7%
------------ ------------ ------------ ------------- ------------
Investment Expenses 0.1% 0.1% 0.2% 0.1% 0.1%
------------ ------------ ------------ ------------- ------------
Total Net Investment Income 6.1% 5.9% 6.1% 6.6% 5.6%
============ ============ ============ ============= ============
(1) Excludes debt and equity securities pledged as collateral.
(2) Includes real estate, affiliates and other invested assets.
31
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
Second Quarter 2005 (Quarters unaudited)
($ in millions)
Quarters ended 2004 2005
--------------------------------------------------------- ----------------------------
March June September December March June
------------ ------------ ------------ ------------ ------------- ------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 191.7 $ 191.8 $ 192.4 $ 196.2 $ 197.3 $ 199.4
Equity Securities .4 1.6 1.1 1.4 2.1 3.0
Mortgages 5.9 5.4 5.9 5.3 6.4 4.2
Policy Loans 42.2 41.7 42.3 40.9 40.7 40.6
Venture Capital 17.6 1.8 (3.7) 9.8 (2.8) 3.3
Cash & Cash Equivalents .7 1.0 1.4 1.8 1.7 1.8
Other (2) 9.6 11.0 18.3 9.9 15.5 5.3
------------ ------------ ------------ ------------ ------------- ------------
Total Cash and Invested Assets 268.1 254.3 257.7 265.3 260.9 257.6
------------ ------------ ------------ ------------ ------------- ------------
Investment Expenses 2.8 1.9 2.4 2.7 3.1 2.0
------------ ------------ ------------ ------------ ------------- ------------
Total Net Investment Income $ 265.3 $ 252.4 $ 255.3 $ 262.6 $ 257.8 $ 255.6
============ ============ ============ ============ ============= ============
ANNUALIZED YIELDS
Debt Securities 5.9% 5.9% 6.0% 6.0% 6.0% 6.0%
Equity Securities 0.5% 2.0% 1.4% 1.6% 2.3% 3.4%
Mortgages 8.9% 8.5% 10.3% 10.3% 14.1% 13.1%
Policy Loans 7.9% 7.7% 7.9% 7.7% 7.8% 7.7%
Venture Capital 34.0% 2.9% -5.8% 17.0% -4.3% 0.4%
Cash & Cash Equivalents 0.7% 0.8% 1.0% 1.6% 1.7% 1.6%
Other (2) 10.7% 9.9% 18.2% 10.4% 19.7% 13.0%
------------ ------------ ------------ ------------ ------------- ------------
Total Cash and Invested Assets 6.4% 6.0% 6.2% 6.3% 6.3% 6.2%
------------ ------------ ------------ ------------ ------------- ------------
Investment Expenses 0.1% 0.1% 0.2% 0.2% 0.1% 0.1%
------------ ------------ ------------ ------------ ------------- ------------
Total Net Investment Income 6.3% 5.9% 6.0% 6.2% 6.2% 6.1%
============ ============ ============ ============ ============= ============
(1) Excludes debt and equity securities pledged as collateral.
(2) Includes real estate, affiliates and other invested assets.
32
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Second Quarter 2005 (unaudited)
($ in millions)
YTD June December 31,
--------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------ ------------ ------------ ------------ ------------- ------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (20.7) $ (4.0) $ (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 (4.6)
Impairments (5.1)
Mortgage Loan Impairments (4.1) (.6) (6.1)
Real Estate Impairments (6.6)
Debt and Equity Securities
Pledged as Collateral Impairments (1.0) (8.3) (16.6) (8.3) (34.9) (39.0)
Mortgage Impairments (.8)
Other Invested Asset Impairments (3.3) (3.3) (9.9) (22.0) (3.7)
------------ ------------ ------------ ------------ ------------- ------------
Total Impairment Losses (22.5) (15.6) (49.5) (210.8) (186.7) (94.9)
------------ ------------ ------------ ------------ ------------- ------------
Debt Security Net Transaction
Gains (Losses) (7.1) 13.1 28.4 64.7 48.4 21.7
Equity Security Net Transaction
Gains (Losses) (.6) 11.7 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) (.6) (.6) (.8) (.2) 4.0 (2.5)
Other Invested Asset Net Transactions
Gains (Losses) 1.2 (.6) 6.3 9.6 (1.9) (7.5)
Debt and Equity Securities Pledged
as Collateral .2
------------ ------------ ------------ ------------ ------------- ------------
Total Net Transactions Gains (Losses) (3.2) 23.8 48.7 112.3 52.8 10.0
------------ ------------ ------------ ------------ ------------- ------------
Net Realized Investment Gains (Losses) (25.7) 8.2 (.8) (98.5) (133.9) (84.9)
============ ============ ============ ============ ============= ============
Closed Block Applicable PDO (Reduction) (11.1) 7.3 3.7 (5.9) (40.3) (15.4)
Applicable Deferred Acquisition Costs
(Credit) (3.8) (.8) (.4) (4.1) (7.2) 10.5
Applicable Deferred Income Tax (Credit) (3.5) 5.4 3.1 (35.6) (20.8) (24.5)
------------ ------------ ------------ ------------ ------------- ------------
Net Realized Investment (Losses)
Included in Net Income (1) $ (7.3) $ (3.7) $ (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 $55.0 million in 2003, respectively.
33
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Second Quarter 2005 (unaudited)
($ in millions)
2004 2005
--------------------------------------------------------- ----------------------------
Quarters ended March June September December March June
------------ ------------ ------------ ------------ ------------- ------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (2.8) $ (1.2) $ (4.6) $ (6.9) $ (12.2) $ (8.5)
Equity Security Impairments (1.5)
Affiliated Equity Securities (12.6)
Debt and Equity Securities
Pledged as Collateral Impairments (4.7) (3.6) (8.3) (.3) (.7)
Mortgage Impairments (.8)
Other Invested Asset Impairments (3.3)
------------ ------------ ------------ ------------ ------------- ------------
Total Impairment Losses (10.8) (4.8) (12.9) (21.0) (12.5) (10.0)
------------ ------------ ------------ ------------ ------------- ------------
Debt Security Net Transaction
Gains (Losses) 7.0 6.1 3.7 11.6 (7.2) .1
Equity Security Net Transaction
Gains (Losses) 2.2 9.5 .2 2.7 (1.0) .4
Mortgage Loan Net Transaction
Gains (Losses) .2 3.7
Real Estate Net Transaction Gains
(Losses) (.6) (.2) (.3) (.3)
Other Invested Asset Net Transactions
Gains (Losses) 3.9 4.2 (.1) (1.7) (1.3) 2.5
Debt and Equity Securities
Pledged as Collateral .7 (.5)
------------ ------------ ------------ ------------ ------------- ------------
Total Net Transactions Gains (Losses) 13.3 19.2 3.8 12.4 (5.4) 2.2
------------ ------------ ------------ ------------
Net Realized Investment Gains (Losses) 2.5 14.4 (9.1) (8.6) (17.9) (7.8)
============ ============ ============ ============ ============= ============
Closed Block Applicable PDO (Reduction) .1 7.2 (2.5) (1.1) (4.4) (6.7)
Applicable Deferred Acquisition
Costs (Credit) .4 (1.2) (.1) .5 (4.8) 1.0
Applicable Deferred Income Tax (Credit) 1.2 4.2 2.0 (4.3) (3.2) (.3)
------------ ------------ ------------ ------------ ------------- ------------
Net Realized Investment Gains (Losses)
Included in Net Income (1) $ .8 $ 4.2 $ (8.5) $ (3.7) $ (5.5) $ (1.8)
============ ============ ============ ============ ============= ============
(1) Includes realized losses of $7.0 million for March 2005 related to our
equity interest in Aberdeen.
34