EXHIBIT 99.1
FINANCIAL SUPPLEMENT
THE PHOENIX COMPANIES, INC.
SEPTEMBER 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
SEPTEMBER 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 THIRD 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
Third Quarter 2005 (unaudited)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
YTD September -------------------------------------------------------------
2005 2004 2003 2002 2001
------------- ------------- ------------- ------------- -------------
General Account Invested Assets $ 17,015.6 $ 17,334.6 $ 17,242.8 $ 16,812.8 $ 14,411.4
Separate Account Assets 7,358.8 6,950.3 6,083.2 4,371.2 5,025.2
Total Assets 27,666.2 28,362.6 27,559.2 25,235.9 22,535.6
Indebtedness 762.9 690.8 639.0 644.3 599.3
Total Stockholders' Equity 2,044.7 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 $ 2,068.9 $ 2,018.5 $ 1,925.3 $ 1,937.1 $ 2,317.5
Debt to Total Capitalization 27.2% 25.5% 24.7% 24.1% 20.0%
Debt (Excluding Equity Units)
to Total Capitalization 21.7% 19.8% 18.8% 18.3% N/A
Book Value Per Share $ 21.50 $ 21.32 $ 20.62 $ 19.43 $ 22.64
Book Value Per Share, excluding
SFAS 115 and other accumulated OCI 21.18 20.70 19.96 20.19 22.62
Book Value Per Share, excluding
SFAS 115, other accumulated OCI and FIN 46-R $ 21.75 $ 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 3.3 8.0 10.3 15.6 (0.8)
Bank Credit Facility 25.0 25.0 125.1
Other 76.7
------------- ------------- ------------- ------------- -------------
Total Indebtedness $ 762.9 $ 690.8 $ 639.0 $ 644.3 $ 599.3
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR
PHOENIX LIFE INSURANCE COMPANY (1)
Capital, Surplus and Surplus Notes $ 858.1 $ 814.6 $ 762.9 $ 861.0 $ 1,149.8
Asset Valuation Reserve (AVR) 190.1 213.6 198.6 147.0 221.5
------------- ------------- ------------- ------------- -------------
Capital, Surplus, Surplus Notes and AVR $ 1,048.3 1,028.2 961.5 1,008.0 1,371.3
============= ============= ============= ============= =============
Policyholder Dividend Liability $ 408.7 $ 403.3 $ 408.5 $ 403.0 $ 395.8
Interest Maintenance Reserve (30.7) (31.3) (30.2) (2.0) 11.6
Statutory Gain From Operations 63.6 35.1 69.7 44.5 119.9
Statutory Net Income (Loss) 35.0 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. September
2005 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Third Quarter 2005 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Life Insurance (1) $ 144.4 $ 89.0 $ 130.2 $ 100.5 $ 99.8 $ 71.2
Annuity (1) 3.3 11.5 12.6 (1.1) (19.5) 11.7
------------- ------------- ------------- ------------- ------------- -------------
Life and Annuity Segment 147.7 100.5 142.8 99.4 80.3 82.9
Asset Management Segment (11.7) .2 .1 (8.7) (69.9) (8.7)
Venture Capital Segment 13.2 12.1 19.3 36.2 (59.3) (159.6)
Corporate and Other Segment (51.4) (44.7) (59.1) (47.8) (40.0) (34.7)
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss),
Before Income Taxes 97.8 68.1 103.1 79.1 (88.9) (120.1)
Applicable Income Taxes (Benefit) 23.7 13.5 22.5 21.8 (28.5) (45.4)
------------- ------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME (LOSS) 74.1 54.6 80.6 57.3 (60.4) (74.7)
Net Realized Investment Gains (Losses) 1.6 9.4 5.7 3.2 (39.3) (43.0)
Realized (Losses) - Investments Pledged
as Collateral Consolidated Under FIN 46-R .1 (12.9) (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 Setttlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and
Early Retirement Costs (9.9) (13.9) (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 58.9 38.0 86.3 (4.1) (140.7) (196.1)
Income (Loss) From Discontinued Operations (.7) .1 .1 (2.1) (1.3) (2.5)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) Before Cumulative Effect of
Accounting changes 58.2 38.1 86.4 (6.2) (142.0) (198.6)
Cumulative Effect of Accounting changes (130.3) (16.6)
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME (LOSS) $ 58.2 $ 38.1 $ 86.4 $ (6.2) (272.3) $ (215.2)
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares Outstanding (2) 95.4 94.6 94.7 94.2 97.9 104.6
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ 0.78 $ 0.58 $ 0.85 $ 0.61 $ (0.62) $ (0.71)
Net Income (Loss) Per Share $ 0.61 $ 0.40 $ 0.91 $ (0.07) $ (2.78) $ (2.06)
Diluted
Weighted-Average Shares Outstanding and
dilutive potential common shares (2) (3) 102.5 100.9 100.8 96.6 97.9 104.6
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ 0.72 $ 0.54 $ 0.80 $ 0.59 $ (0.62) $ (0.71)
Net Income (Loss) Per Share $ 0.57 $ 0.38 $ 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
Third Quarter 2005 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Life Insurance (1) $ 22.8 $ 29.2 $ 36.9 $ 41.2 $ 38.0 $ 68.3 $ 38.1
Annuity (1) 3.0 4.6 3.9 1.1 6.0 (9.6) 6.9
------------- ------------- ------------- ------------- ------------- ------------- -------------
Life and Annuity Segment 25.8 33.8 40.8 42.3 44.0 58.7 45.0
Asset Management Segment .1 .1 (.1) (1.7) .1 (10.1)
Venture Capital Segment 11.6 4.4 (3.9) 7.2 (2.2) 2.7 12.7
Corporate and Other Segment (12.7) (16.0) (15.9) (14.5) (16.3) (16.4) (18.7)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income,
Before Income Taxes 24.8 22.3 21.0 34.9 23.8 45.1 28.9
Applicable Income Taxes 7.3 5.7 .5 8.9 7.0 14.2 2.5
------------- ------------- ------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME 17.5 16.6 20.5 26.0 16.8 30.9 26.4
Net Realized Investment
Gains (Losses) 1.8 7.7 (.2) (3.7) 1.1 (.6) 1.1
Realized Gains
(Losses) - Investments
Pledged as Collateral
Consolidated Under
FIN 46-R (1.0) (3.6) (8.3) .4 (1.2) .9
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) (6.9) (4.9) (8.0) (1.9) (6.7) (1.3)
------------- ------------- ------------- ------------- ------------- ------------- -------------
INCOME FROM CONTINUING
OPERATIONS 16.3 14.6 7.1 48.3 9.4 22.4 27.1
Income (Loss) From
Discontinued Operations .3 (.2) (.7)
------------- ------------- ------------- ------------- ------------- ------------- -------------
NET INCOME $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4 $ 22.4 $ 26.4
============= ============= ============= ============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic
Weighted-Average Shares
Outstanding 94.5 94.6 94.7 94.8 94.9 95.0 95.1
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income
Per Share $ 0.19 $ 0.18 $ 0.22 $ 0.27 $ 0.18 $ 0.32 $ 0.28
Net Income Per Share $ 0.18 $ 0.15 $ 0.07 $ 0.51 $ 0.10 $ 0.24 $ 0.28
Diluted
Weighted-Average Shares
Outstanding and dilutive
potential common shares 102.0 101.3 99.2 100.3 102.3 101.1 102.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income
Per Share $ 0.17 $ 0.16 $ 0.21 $ 0.26 $ 0.16 $ 0.31 $ 0.26
Net Income Per Share $ 0.16 $ 0.14 $ 0.07 $ 0.48 $ 0.09 $ 0.22 $ 0.26
=============
(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
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
Variable Universal Life $ 60.8 $ 26.4 $ 35.7 $ 35.0 $ 35.9 $ 30.2
Universal Life (1) 41.0 21.5 34.4 21.7 26.3 17.4
Other Life and Annuity (2) (3) .9 1.3 1.8 .2 (.7) (.9)
------------- ------------- ------------- ------------- ------------- -------------
Total, Non-participating Life 102.7 49.2 71.9 56.9 61.5 46.7
Traditional Life (3) 41.7 39.8 58.3 43.6 38.3 24.5
------------- ------------- ------------- ------------- ------------- -------------
Total, Life Insurance 144.4 89.0 130.2 100.5 99.8 71.2
Annuities (3) 3.3 11.5 12.6 (1.1) (19.5) 11.7
------------- ------------- ------------- ------------- ------------- -------------
Segment Income, before income taxes 147.7 100.5 142.8 99.4 80.3 82.9
Allocated Income Taxes (4) 41.7 24.5 36.4 31.1 28.0 28.8
------------- ------------- ------------- ------------- ------------- -------------
Segment Income $ 106.0 $ 76.0 $ 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
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
Variable Universal Life $ 8.2 $ 8.5 $ 9.7 $ 9.5 $ 9.1 $ 37.8 $ 13.9
Universal Life (1) 1.9 10.9 8.7 12.9 10.3 23.1 7.6
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 21.5
Traditional Life (3) 11.2 9.7 18.9 18.4 18.2 6.9 16.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total, Life Insurance 22.8 29.2 36.9 41.2 38.0 68.3 38.1
Annuities (3) 3.0 4.6 3.9 1.1 6.0 (9.6) 6.9
------------- ------------- ------------- ------------- ------------- ------------- -------------
Segment Income, before
income taxes 25.8 33.8 40.8 42.3 44.0 58.7 45.0
Allocated Income Taxes 7.2 10.2 7.1 11.9 14.0 19.1 8.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Segment Income $ 18.6 $ 23.6 $ 33.7 $ 30.4 $ 30.0 $ 39.6 $ 36.4
============= ============= ============= ============= ============= ============= =============
(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
Third Quarter 2005 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 24.6 $ 22.1 $ 29.6 $ 30.1 $ 31.4 $ 29.5
Cost of Insurance 57.3 55.5 74.6 72.1 66.4 60.0
Interest Earned 4.9 4.1 5.9 5.6 7.0 4.5
Surrender Charges 5.2 4.9 6.9 6.9 4.4 3.3
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 92.0 86.6 117.0 114.7 109.2 97.3
------------- ------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 21.1 21.9 30.5 23.3 22.9 15.3
Incurred Expenses 6.7 35.3 47.1 52.8 45.9 48.2
Interest Credited 3.4 3.0 3.7 3.6 3.7 3.6
Minority Interest .8
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 31.2 60.2 81.3 79.7 73.3 67.1
------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income $ 60.8 $ 26.4 $ 35.7 $ 35.0 $ 35.9 $ 30.2
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions $ 10.3 $ 11.2 $ 16.3 $ 21.4 $ 36.6 $ 29.5
Controllable Expenses and Other 21.1 26.9 34.0 44.6 60.8 60.1
------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 31.4 38.1 50.3 66.0 97.4 89.6
Acquisition Costs Deferred (12.3) (18.7) (25.4) (33.9) (68.1) (65.4)
Acquisition Costs Amortized (12.4) 15.9 22.2 20.8 16.6 24.0
------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses $ 6.7 $ 35.3 $ 47.1 $ 52.9 $ 45.9 $ 48.2
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 155.4 $ 172.1 $ 245.4 $ 353.4 $ 465.7 $ 336.1
Surrenders (71.1) (46.7) (75.3) (69.4) (37.6) (31.2)
Deaths (1.8) (1.4) (2.2) (1.4) (1.8) (1.7)
------------- ------------- ------------- ------------- ------------- -------------
Net Sales 82.5 124.0 167.9 282.6 426.3 303.2
Performance 91.8 64.5 179.3 252.1 (149.8) (194.0)
Fees (22.5) (22.8) (30.6) (36.4) (35.8) (34.5)
Cost of Insurance (55.8) (53.7) (72.4) (69.8) (66.4) (60.0)
------------- ------------- ------------- ------------- ------------- -------------
Acquisitions
Change in Funds Under Management 96.0 112.0 244.2 428.5 174.3 14.7
Beginning Balance 1,943.1 1,698.9 1,698.9 1,270.3 1,096.0 1,081.3
------------- ------------- ------------- ------------- ------------- -------------
Ending Balance $ 2,039.1 $ 1,810.9 $ 1,943.1 $ 1,698.8 $ 1,270.3 $ 1,096.0
============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE (1) $ 24,930.2 $ 25,373.0 $ 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
Third Quarter 2005 (unaudited)
($ in millions)
2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 8.0 $ 7.3 $ 6.8 $ 7.5 $ 7.4 $ 10.3 $ 6.9
Cost of Insurance 18.3 18.5 18.7 19.2 19.0 19.1 19.2
Interest Earned 1.2 1.7 1.2 1.8 1.5 1.4 2.0
Surrender Charges 1.7 1.4 1.8 2.1 1.9 1.7 1.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 29.2 28.9 28.5 30.6 29.8 32.5 29.7
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Death and Disability
Benefits 8.3 7.5 6.1 8.6 8.9 8.3 3.9
Incurred Expenses 11.7 11.9 11.7 11.7 10.6 (14.7) 10.8
Interest Credited 1.0 1.0 1.0 .8 1.2 1.1 1.1
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 21.0 20.4 18.8 21.1 20.7 (5.3) 15.8
------------- ------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income $ 8.2 $ 8.5 $ 9.7 $ 9.5 $ 9.1 $ 37.8 $ 13.9
============= ============= ============= ============= ============= ============= =============
-------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions and Concessions $ 4.0 $ 4.2 $ 3.0 $ 5.1 $ 3.6 $ 3.4 $ 3.3
Controllable Expenses
and Other 9.2 9.3 8.4 7.1 6.8 7.4 6.9
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 13.2 13.5 11.4 12.2 10.4 10.8 10.2
Acquisition Costs Deferred (6.6) (6.6) (5.5) (6.7) (4.1) (4.4) (3.8)
Acquisition Costs Amortized 5.1 5.0 5.8 6.2 4.3 (21.1) 4.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses $ 11.7 $ 11.9 $ 11.7 $ 11.7 $ 10.6 (14.7) $ 10.8
============= ============= ============= ============= ============= ============= =============
-------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 67.0 $ 60.0 $ 45.1 $ 73.3 $ 63.3 $ 49.0 $ 43.1
Surrenders (15.6) (15.0) (16.1) (28.6) (27.4) (19.6) (24.1)
Deaths (.4) (.4) (.6) (.8) (.9) (.7) (.2)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Sales 51.0 44.6 28.4 43.9 35.0 28.7 18.8
Performance 56.5 10.0 (2.0) 114.8 (9.3) 22.0 79.1
Fees (8.4) (7.4) (7.0) (7.8) (7.5) (7.7) (7.3)
Cost of Insurance (17.7) (18.0) (18.0) (18.7) (18.4) (18.6) (18.7)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Funds Under
Management 81.4 29.2 1.4 132.2 (.2) 24.4 71.9
Beginning Balance 1,698.9 1,780.3 1,809.5 1,810.9 1,943.1 1,942.8 1,967.2
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Balance $ 1,780.3 $ 1,809.5 $ 1,810.9 $ 1,943.1 $ 1,942.9 $ 1,967.2 $ 2,039.1
============= ============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE (1) $ 25,666.8 $ 25,596.7 $ 25,373.0 $ 25,382.0 $ 25,189.9 $ 25,041.0 $ 24,930.2
============= ============= ============= ============= ============= ============= =============
(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
Third Quarter 2005 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 10.8 $ 14.3 $ 19.2 $ 17.3 $ 11.9 $ 8.6
Cost of Insurance 76.5 66.9 90.7 78.9 71.6 66.2
Interest Earned 80.2 74.3 100.3 98.3 108.4 111.9
Surrender Charges 2.1 2.3 3.2 2.5 3.9 4.0
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 169.6 157.8 213.4 196.9 195.8 190.7
------------- ------------- ------------- ------------- ------------- -------------
Net Death Benefits and
Supplemental Benefits 43.4 44.7 58.2 51.2 39.5 48.3
Incurred Expenses 29.6 35.3 46.2 46.0 44.3 34.6
Interest Credited 55.6 56.3 74.6 78.0 85.7 90.4
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 128.6 136.3 179.0 175.2 169.5 173.3
------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income $ 41.0 $ 21.5 $ 34.4 $ 21.7 $ 26.3 $ 17.4
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions $ 25.2 $ 17.0 $ 24.9 $ 28.2 $ 15.2 $ 9.8
Controllable Expenses 53.5 47.1 64.4 75.0 52.6 32.1
------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 78.7 64.1 89.3 103.2 67.8 41.9
Acquisition Cost Deferred (54.1) (44.1) (63.5) (74.9) (40.2) (20.0)
Acquisition Cost Amortized 5.0 15.3 20.4 17.7 16.7 12.7
------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses $ 29.6 $ 35.3 $ 46.2 $ 46.0 $ 44.3 $ 34.6
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 186.5 $ 166.6 $ 229.4 $ 217.8 $ 149.3 $ 104.6
Surrenders (75.4) (96.6) (126.2) (118.6) (107.4) (99.0)
Deaths (17.4) (14.5) (16.9) (19.4) (25.0) (18.5)
------------- ------------- ------------- ------------- ------------- -------------
Net Sales 93.7 55.5 86.3 79.8 16.9 (12.9)
Interest Credited 55.7 56.2 74.6 78.0 85.8 90.4
Fees (17.2) (16.5) (23.5) (24.9) (16.7) (10.5)
Cost of Insurance (76.5) (66.9) (90.7) (78.9) (71.6) (66.2)
------------- ------------- ------------- ------------- ------------- -------------
Change in Funds Under Management 55.7 28.3 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 $ 1,666.4 $ 1,592.3 $ 1,610.7 $ 1,564.0 $ 1,510.0 $ 1,495.6
============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE $ 15,126.3 $ 13,725.6 $ 14,103.7 $ 12,830.3 $ 10,476.7 $ 9,465.6
============= ============= ============= ============= ============= =============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Third Quarter 2005 (unaudited)
($ in millions)
PRE-TAX INCOME 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarter ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
Fees $ 4.5 $ 4.8 $ 5.0 $ 5.0 $ 4.7 $ 1.2 $ 4.9
Cost of Insurance 21.6 22.5 22.8 23.8 24.0 24.9 27.6
Interest Earned 24.0 25.9 24.4 26.0 25.4 26.2 28.6
Surrender Charges .7 1.1 .5 .9 .5 .7 .9
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 50.8 54.3 52.7 55.7 54.6 53.0 62.0
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Death Benefits and
Supplemental Benefits 19.3 12.3 13.1 13.4 13.9 13.5 16.0
Incurred Expenses 10.4 12.1 12.8 11.0 12.0 (2.0) 19.6
Interest Credited 19.2 19.0 18.1 18.4 18.4 18.4 18.8
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 48.9 43.4 44.0 42.8 44.3 29.9 54.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income $ 1.9 $ 10.9 $ 8.7 $ 12.9 $ 10.3 $ 23.1 $ 7.6
============= ============= ============= ============= ============= ============= =============
-------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions $ 6.9 $ 6.2 $ 4.0 $ 7.9 $ 5.4 $ 7.1 $ 12.7
Controllable Expenses 17.1 15.5 14.4 17.4 13.9 16.2 23.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 24.0 21.7 18.4 25.3 19.3 23.3 36.1
Acquisition Cost Deferred (17.7) (14.5) (11.9) (19.4) (13.5) (15.1) (25.5)
Acquisition Cost Amortized 4.1 4.9 6.3 5.1 6.2 (10.2) 9.0
------------- ------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses $ 10.4 $ 12.1 $ 12.8 $ 11.0 $ 12.0 $ (2.0) $ 19.6
============= ============= ============= ============= ============= ============= =============
-------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 54.7 $ 55.7 $ 56.2 $ 62.8 $ 54.9 $ 57.7 $ 73.9
Surrenders (31.9) (37.0) (27.7) (29.6) (23.3) (24.7) (27.4)
Deaths (3.3) (3.7) (7.5) (2.4) (4.6) (7.0) (5.8)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Sales 19.5 15.0 21.0 30.8 27.0 26.0 40.7
Interest Credited 19.1 19.0 18.1 18.4 18.5 18.4 18.8
Fees (5.4) (5.8) (5.3) (7.0) (4.9) (5.2) (7.1)
Cost of Insurance (21.6) (22.5) (22.8) (23.8) (24.0) (24.9) (27.6)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Funds Under
Management 11.6 5.7 11.0 18.4 16.6 14.3 24.8
Beginning Balance 1,564.0 1,575.6 1,581.3 1,592.3 1,610.7 1,627.3 1,641.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Fund Balance $ 1,575.6 $ 1,581.3 $ 1,592.3 $ 1,610.7 $ 1,627.3 $ 1,641.6 $ 1,666.4
============= ============= ============= ============= ============= ============= =============
LIFE INSURANCE IN FORCE $ 13,195.6 $ 13,431.3 $ 13,725.6 $ 14,103.7 $ 14,328.7 $ 14,583.3 $ 15,126.3
============= ============= ============= ============= ============= ============= =============
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Third Quarter 2005 (unaudited)
($ in millions)
LIFE INSURANCE SALES YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
WHOLESALER CHANNEL
Variable Universal Life $ 12.9 $ 12.6 $ 18.2 $ 30.1 $ 62.5 $ 53.8
Universal Life/Interest Sensitive 47.5 34.0 47.4 67.5 36.9 14.5
Term Life 11.5 11.2 15.3 19.2 15.1 11.4
Participating Whole Life 0.6 4.8 9.7
------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Annualized Premium (1) 71.9 57.8 80.9 117.4 119.3 89.4
============= ============= ============= ============= ============= =============
Variable Universal Life 4.1 7.0 10.8 20.1 25.1 49.7
Universal Life/Interest Sensitive 31.5 38.8 53.2 61.6 29.9 14.5
Participating Whole Life 0.8 2.4
------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Single Premium 35.6 45.8 64.0 81.7 55.8 66.6
============= ============= ============= ============= ============= =============
Variable Universal Life 17.0 19.6 29.0 50.1 87.6 103.5
Universal Life/Interest Sensitive 79.0 72.9 100.7 129.2 66.8 29.0
Term Life 11.5 11.2 15.3 19.2 15.1 11.4
Participating Whole Life 0.6 5.6 12.1
------------- ------------- ------------- ------------- ------------- -------------
Total Wholesaler Life Insurance Premium (2) 107.5 103.7 145.0 199.1 175.1 156.0
============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized
and single) 27.9 34.9 60.0 149.5 222.5 83.7
Annuity 510.5 140.7 152.6 394.9 142.6 164.0
------------- ------------- ------------- ------------- ------------- -------------
Total Private Placement Life and
Annuity Deposits 538.4 175.6 212.6 544.4 365.1 247.7
============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 2,374.1 $ 1,788.6 $ 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
Third Quarter 2005 (unaudited)
($ in millions)
LIFE INSURANCE SALES 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
WHOLESALER CHANNEL
Variable Universal Life $ 4.5 $ 5.0 $ 3.1 $ 5.6 $ 6.2 $ 3.5 $ 3.1
Universal Life/Interest
Sensitive 13.1 10.5 10.4 13.4 10.8 14.1 22.6
Term Life 3.9 4.0 3.3 4.2 3.8 3.8 3.8
------------- ------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Annualized
Premium (1) 21.5 19.5 16.8 23.2 20.8 21.4 29.5
============= ============= ============= ============= ============= ============= =============
Variable Universal Life 2.5 2.6 2.0 3.7 .8 1.6 1.8
Universal Life/Interest
Sensitive 11.1 14.4 13.3 14.4 8.5 11.4 11.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Single
Premium 13.6 17.0 15.3 18.1 9.3 13.0 13.4
============= ============= ============= ============= ============= ============= =============
Variable Universal Life 7.0 7.5 5.1 9.3 7.0 5.1 4.9
Universal Life/Interest
Sensitive 24.2 25.0 23.7 27.8 19.3 25.5 34.2
Term Life 3.9 4.0 3.3 4.2 3.8 3.8 3.8
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Wholesaler Life
Insurance Premium (2) $ 35.1 $ 36.5 $ 32.1 $ 41.3 $ 30.1 $ 34.4 $ 42.9
============= ============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT LIFE AND
ANNUITY DEPOSITS
Variable Universal Life
(annualized and single) 17.4 14.5 3.0 25.1 14.3 11.3 2.3
Annuity 28.8 70.9 41.0 12.0 487.6 11.9 11.0
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Private Placement Life
and Annuity Deposits $ 46.2 $ 85.4 $ 44.0 $ 37.1 $ 501.9 $ 23.2 $ 13.3
============= ============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT FUNDS
UNDER MANAGEMENT $ 1,642.8 $ 1,720.2 $ 1,788.6 $ 1,898.5 $ 2,414.5 $ 2,343.1 $ 2,374.1
============= ============= ============= ============= ============= ============= =============
(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
Third Quarter 2005 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 48.9 $ 47.4 $ 63.8 $ 57.2 $ 57.4 $ 65.0
Interest Earned 122.5 114.9 158.0 150.1 109.1 51.8
Surrender Charges 5.2 4.6 5.8 7.4 6.6 3.9
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 176.6 166.9 227.6 214.7 173.1 120.7
------------- ------------- ------------- ------------- ------------- -------------
Mortality Cost 4.0 6.3 8.7 4.4 12.2 5.8
Incurred Expenses 83.9 57.3 83.0 78.3 81.0 55.9
Interest Credited 85.4 91.8 123.3 133.0 99.4 47.3
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 173.3 155.4 215.0 215.7 192.6 109.0
------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income (Loss) $ 3.3 $ 11.5 $ 12.6 $ (1.1) $ (19.5) $ 11.7
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions $ 28.6 $ 32.8 $ 42.7 $ 51.1 $ 81.3 $ 44.1
Controllable Expenses 28.1 39.1 48.4 66.2 67.5 76.3
------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 56.7 71.9 91.1 117.3 148.8 120.4
Acquisition Cost Deferred (23.3) (35.6) (43.7) (65.5) (102.9) (83.5)
Acquisition Cost Amortized 50.5 21.0 35.6 26.5 35.1 19.0
------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses $ 83.9 $ 57.3 $ 83.0 $ 78.3 $ 81.0 $ 55.9
============= ============= ============= ============= ============= =============
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
Third Quarter 2005 (unaudited)
($ in millions)
PRE-TAX INCOME
Quarters ended 2004 2005
---------------------------------------------------------- -------------------------------------------
March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
Fees $ 15.7 $ 15.8 $ 15.9 $ 16.3 $ 16.5 $ 16.1 $ 16.3
Interest Earned 37.3 37.9 39.7 43.2 41.6 39.9 40.9
Surrender Charges 1.1 1.4 2.1 1.2 1.9 2.0 1.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 54.1 55.1 57.7 60.7 60.0 58.0 58.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Mortality Cost .8 2.6 2.9 2.4 1.2 2.2 .6
Incurred Expenses 20.9 16.2 20.1 25.9 23.6 36.9 23.4
Interest Credited 29.3 31.7 30.8 31.3 29.2 28.5 27.7
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 51.1 50.5 53.8 59.6 54.0 67.6 51.7
------------- ------------- ------------- ------------- ------------- ------------- -------------
Pre-tax Income (Loss) $ 3.0 $ 4.6 $ 3.9 $ 1.1 $ 6.0 $ (9.6) $ 6.9
============= ============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INCURRED EXPENSES
Commissions/Concessions $ 12.6 $ 10.3 $ 9.9 $ 9.8 $ 9.8 $ 9.1 $ 9.7
Controllable Expenses 16.1 12.8 10.1 9.5 8.5 9.8 9.8
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 28.7 23.1 20.0 19.3 18.3 18.9 19.5
Acquisition Cost Deferred (15.0) (12.7) (7.9) (8.0) (8.2) (6.8) (8.3)
Acquisition Cost Amortized 7.2 5.8 8.0 14.6 13.5 24.8 12.2
------------- ------------- ------------- ------------- ------------- ------------- -------------
Incurred Expenses $ 20.9 $ 16.2 $ 20.1 $ 25.9 $ 23.6 $ 36.9 $ 23.4
============= ============= ============= ============= ============= ============= =============
13
THE PHOENIX COMPANIES, INC.
ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT
Third Quarter 2005 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT (1) YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
Annuities
Deposits $ 766.6 $ 564.7 $ 670.9 $ 1,428.1 $ 2,258.4 $ 1,492.9
Surrenders (862.6) (587.5) (802.8) (867.2) (754.4) (510.6)
------------- ------------- ------------- ------------- ------------- -------------
Net Sales (96.0) (22.8) (131.9) 560.9 1,504.0 982.3
Performance and Interest Credited 304.4 238.8 670.7 872.1 (330.6) (554.9)
Fees (47.3) (44.4) (59.8) (57.7) (58.8) (67.3)
Deaths (58.5) (63.6) (81.6) (70.4) (40.6) (34.3)
------------- ------------- ------------- ------------- ------------- -------------
Change in Funds Under Management 102.6 108.0 397.4 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 $ 7,803.2 $ 7,411.2 $ 7,700.6 $ 7,303.2 $ 5,998.3 $ 4,924.3
============= ============= ============= ============= ============= =============
VA Funds in Guaranteed Interest
Accounts (2) $ 1,706.1 $ 1,960.5 $ 1,939.1 $ 2,067.4 $ 2,159.3 $ 955.0
============= ============= ============= ============= ============= =============
Fixed Annuities (2) $ 1,023.2 $ 1,201.8 $ 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
Third Quarter 2005 (unaudited)
($ in millions)
FUNDS UNDER MANAGEMENT (1) 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
Annuities
Deposits $ 215.0 $ 208.9 $ 140.8 $ 106.2 $ 580.9 $ 93.5 $ 92.2
Surrenders (198.8) (175.0) (213.7) (215.3) (231.7) (336.6) (294.3)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Sales 16.2 33.9 (72.9) (109.1) 349.2 (243.1) (202.1)
Performance and Interest
Credited 212.8 19.5 6.5 431.9 (0.6) 86.3 218.7
Fees (15.3) (14.0) (15.1) (15.4) (16.2) (15.7) (15.4)
Deaths (23.2) (21.8) (18.6) (18.0) (22.3) (17.6) (18.6)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Funds Under
Management 190.5 17.6 (100.1) 289.4 310.1 (190.1) (17.4)
Beginning Balance 7,303.2 7,493.7 7,511.3 7,411.2 7,700.6 8,010.7 7,822.7
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Balance $ 7,493.7 $ 7,511.3 $ 7,411.2 $ 7,700.6 $ 8,010.7 $ 7,820.6 $ 7,805.3
============= ============= ============= ============= ============= ============= =============
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 $ 1,706.1
============= ============= ============= ============= ============= ============= =============
Fixed Annuities (2) $ 1,212.7 $ 1,203.4 $ 1,201.8 $ 1,175.5 $ 1,165.9 $ 1,153.2 $ 1,023.2
============= ============= ============= ============= ============= ============= =============
(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
Third Quarter 2005 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 357.2 $ 332.1 $ 332.5 $ 329.3 $ 310.4 $ 252.8
Universal Life 311.0 247.5 262.0 219.2 163.1 134.7
Variable Annuities 280.6 302.7 296.7 289.0 264.9 211.4
Fixed Annuities 39.0 48.9 48.3 48.0 29.2 3.5
Participating 573.3 577.6 576.9 576.3 572.9 531.8
Other
Offset for Unrealized Investment
Gains and Losses (29.0) (80.1) (86.5) (94.1) (106.4) (10.5)
------------- ------------- ------------- ------------- ------------- -------------
Total $ 1,532.1 $ 1,428.7 $ 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 $ 371.1 $ 576.4 $ 441.1 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 93.1 173.8 123.5 183.0 234.9
Statutory Reserve, Net of Reinsurance 14.1 18.5 15.0 17.3 15.8
GAAP Reserve, Net of Reinsurance 9.8 10.3 9.1 7.8 8.7
-------------
(1) Comparable data is not available for 2001.
16
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Third Quarter 2005 (unaudited)
($ in millions)
2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 330.8 $ 332.4 $ 332.1 $ 332.5 $ 332.3 $ 357.8 $ 357.2
Universal Life 232.3 241.9 247.5 262.0 269.2 294.6 311.0
Variable Annuities 296.3 302.4 302.7 296.7 292.8 279.2 280.6
Fixed Annuities 48.5 49.5 48.9 48.3 46.8 42.5 39.0
Participating 578.3 579.4 577.6 576.9 579.9 570.2 573.3
Other
Offset for Unrealized
Investment Gains and
Losses (127.7) (40.4) (80.1) (86.5) (26.7) (83.6) (29.0)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total $ 1,358.5 $ 1,465.2 $ 1,428.7 $ 1,429.9 $ 1,494.3 $ 1,460.7 $ 1,532.1
============= ============= ============= ============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------------------
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 $ 371.1
Death Benefit in Excess of
Fund Value, Net of
Reinsurance 166.4 163.2 173.8 123.5 130.1 114.0 93.1
Statutory Reserve, Net of
Reinsurance 16.5 17.1 18.5 15.0 15.8 15.0 14.1
GAAP Reserve, Net of
Reinsurance 6.9 7.7 10.3 9.1 9.3 9.6 9.8
-------------
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
Investment Management Fees $ 142.8 $ 164.3 $ 219.0 $ 205.5 $ 219.2 $ 211.9
Mutual Funds - Ancillary Fees (1) 30.2 28.6 38.3 35.5 38.7 47.1
Other Revenue 4.4 6.4 7.7 9.3 10.2 12.9
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 177.4 199.3 265.0 250.3 268.1 271.9
------------- ------------- ------------- ------------- ------------- -------------
Employment Expenses 83.4 98.7 132.6 129.6 134.9 123.3
Other Operating Expenses (1) 64.8 65.9 85.9 86.7 93.4 103.0
Amortization of Intangibles 25.0 25.1 33.8 33.2 32.5 49.0
Intangible Asset Impairments 10.6 66.3
------------- ------------- ------------- ------------- ------------- -------------
Total Operating Expenses 183.8 189.7 252.3 249.5 327.1 275.3
------------- ------------- ------------- ------------- ------------- -------------
Management Income (Loss) (6.4) 9.6 12.7 .8 (59.0) (3.4)
Other Income - Net 1.4 1.0 1.7 2.5 1.0 1.6
Minority Interest (6.7) (10.4) (14.3) (12.0) (11.9) (6.9)
------------- ------------- ------------- ------------- ------------- -------------
Segment Income (Loss), before income taxes (11.7) .2 .1 (8.7) (69.9) (8.7)
Applicable Income taxes (Benefit) (4.9) .4 2.3 (3.3) (6.0) 2.6
------------- ------------- ------------- ------------- ------------- -------------
Segment Income (Loss) $ (6.8) $ (.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
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
Investment Management Fees $ 57.3 $ 54.4 $ 52.6 $ 54.7 $ 49.5 $ 46.6 $ 46.8
Mutual Funds - Ancillary
Fees (1) 9.7 9.5 9.4 9.8 9.8 10.1 10.3
Other Revenue 2.8 2.2 1.4 1.3 1.3 1.7 1.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 69.8 66.1 63.4 65.8 60.6 58.4 58.5
------------- ------------- ------------- ------------- ------------- ------------- -------------
Employment Expenses 34.8 32.6 31.3 33.8 29.2 27.3 26.9
Other Operating Expenses(1) 23.3 22.0 20.6 20.1 21.9 21.3 21.6
Amortization of Intangibles 8.3 8.3 8.5 8.7 8.4 8.3 8.3
Intangible Asset Impairments 10.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Operating Expenses 66.4 62.9 60.4 62.6 59.5 56.9 67.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Management Income (Loss) 3.4 3.2 3.0 3.2 1.1 1.5 (8.9)
Other Income - Net .4 .3 .3 .6 .4 .6 .4
Minority Interest (3.7) (3.4) (3.3) (3.9) (3.2) (2.0) (1.6)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Segment Income (Loss),
before income taxes .1 .1 .0 (.1) (1.7) .1 (10.1)
Applicable Income Taxes
(Benefit) .4 .0 .0 1.9 (.5) .1 (4.5)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Segment Income (Loss) $ (0.3) $ 0.1 $ .0 $ (2.0) $ (1.2) $ (0.0) $ (5.6)
============= ============= ============= ============= ============= ============= =============
(1) Prior to 2004, mutual funds - ancillary fees were presented net of trail
commissions. Effective for 2004, trail commissions are presented as other
operating expenses. All prior periods have been conformed to the current
presentation.
19
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 1,442.6 $ 1,753.7 $ 2,109.9 $ 2,268.3 $ 4,421.1 $ 2,721.8
Outflows (4,098.6) (3,265.3) (5,203.0) (2,656.6) (2,716.4) (2,546.4)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (2,656.0) (1,511.6) (3,093.1) (388.3) 1,704.7 175.4
Performance (346.5) (261.5) 950.3 1,537.5 (3,278.2) (3,545.8)
Other (158.1) 0.0 1,330.0
Acquisitions (Divestitures) 5,914.3 748.6
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (3,160.5) (1,773.1) (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 10,355.1 13,885.3 13,515.6 15,658.4 14,509.2 8,838.4
------------ ------------ ------------ ------------ ------------ ------------
MUTUAL FUNDS: (1)
Inflows 1,702.3 1,323.6 1,816.0 1,744.8 1,513.1 1,660.1
Outflows (2,045.2) (1,693.4) (2,301.9) (2,039.8) (2,379.2) (2,449.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (343.0) (369.8) (485.9) (295.0) (866.1) (789.8)
Performance 205.9 48.9 975.5 1,946.3 (2,406.0) (2,985.3)
Other (46.1) (4.1) 273.5 (182.2) (153.7) (148.9)
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (183.2) (325.0) 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 14,315.5 13,410.6 14,498.7 13,735.6 12,266.5 15,692.3
------------ ------------ ------------ ------------ ------------ ------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 4,801.8 2,349.2 2,743.9 2,974.7 4,312.6 4,989.2
Outflows (5,609.5) (4,462.8) (5,750.9) (3,452.2) (4,480.0) (3,766.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (807.7) (2,113.6) (3,007.0) (477.5) (167.4) 1,222.3
Performance (61.9) 231.9 997.2 2,304.3 (2,178.9) (723.4)
Other 144.8 40.4 37.5 (19.9) (1,294.6) 272.6
Acquisitions (Divestitures) 1,507.7 105.9
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (724.8) (1,841.3) (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 14,169.4 15,025.2 14,894.2 16,866.5 15,059.6 17,192.8
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRIVATE CLIENT AND INSTITUTIONAL
PRODUCTS: (1)
Inflows 7,946.7 5,426.5 6,669.8 6,987.8 10,246.8 9,371.1
Outflows (11,753.3) (9,421.5) ( 13,255.8) (8,148.6) (9,575.6) (8,763.2)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (3,806.6) (3,995.0) (6,586.0) (1,160.8) 671.2 607.9
Performance (202.5) 19.3 2,923.0 5,788.1 (7,863.1) (7,254.5)
Other (59.4) 36.3 311.0 (202.1) (118.3) 123.7
Acquisitions (Divestitures) 7,422.0 854.5
------------ ------------ ------------ ------------ ------------ ------------
Change in Assets Under Management (4,068.5) (3,939.4) (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 $ 38,840.0 $ 42,321.1 $ 42,908.5 $ 46,260.5 $ 41,835.3 $ 41,723.5
============ ============ ============ ============ ============ ============
Variable Product Change in Assets Under
Management included in Mutual Funds above $ (297.0) $ (33.0) $ 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
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
PRIVATE CLIENT PRODUCTS:
MANAGED ACCOUNTS:
Inflows $ 649.8 $ 457.8 $ 646.2 $ 356.1 $ 508.1 $ 446.0 $ 488.6
Outflows (927.3) (1,162.9) (1,175.1) (1,937.7) (1,499.8) (1,192.8) (1,406.0)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Flows (277.5) (705.1) (528.9) (1,581.6) (991.7) (746.8) (917.4)
Performance 315.9 131.1 (708.6) 1,211.9 (527.9) 55.2 126.2
Other (421.4) 263.3
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Assets Under
Management 38.4 (574.0) (1,237.5) (369.7) (1,519.6) (1,113.0) (527.9)
Beginning Balance 15,658.4 15,696.8 15,122.8 13,885.3 13,515.6 11,996.0 10,883.0
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Balance 15,696.8 15,122.8 13,885.3 13,515.6 11,996.0 10,883.0 10,355.1
------------- ------------- ------------- ------------- ------------- ------------- -------------
MUTUAL FUNDS: (1)
Inflows 611.9 367.4 344.2 492.4 549.2 565.6 587.4
Outflows (573.1) (650.8) (469.5) (608.5) (793.3) (605.4) (646.5)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Flows 38.8 (283.4) (125.3) (116.1) (244.1) (39.8) (59.1)
Performance 347.9 (276.8) (22.1) 926.6 (372.4) 384.5 193.8
Other (57.6) 27.9 25.6 277.6 (5.7) 90.4 (130.8)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Assets Under
Management 329.1 (532.3) (121.8) 1,088.1 (622.2) 435.1 3.9
Beginning Balance 13,735.6 14,064.7 13,532.4 13,410.6 14,498.7 13,876.5 14,311.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Balance 14,064.7 13,532.4 13,410.6 14,498.7 13,876.5 14,311.6 14,315.5
------------- ------------- ------------- ------------- ------------- ------------- -------------
INSTITUTIONAL PRODUCTS: (1)
Inflows 597.4 932.9 818.9 394.8 4,003.8 440.1 357.9
Outflows (798.5) (2,735.6) (928.7) (1,288.1) (1,313.3) (1,449.2) (2,847.0)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Flows (201.1) (1,802.7) (109.8) (893.3) 2,690.5 (1,009.1) (2,489.0)
Performance 235.4 (161.2) 157.7 765.2 (229.3) 357.6 (190.2)
Other (6.3) 56.6 (9.9) (2.9) (3.0) 413.7 (265.9)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Assets Under
Management 28.0 (1,907.3) 38.0 (131.0) 2,458.2 (237.8) (2,945.1)
Beginning Balance 16,866.5 16,894.5 14,987.2 15,025.2 14,894.2 17,352.4 17,114.6
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Balance 16,894.5 14,987.2 15,025.2 14,894.2 17,352.4 17,114.6 14,169.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
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 1,433.9
Outflows (2,298.9) (4,549.3) (2,573.3) (3,834.3) (3,606.4) (3,247.4) (4,899.5)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Flows (439.8) (2,791.2) (764.0) (2,591.0) 1,454.7 (1,795.7) (3,465.6)
Performance 899.2 (306.9) (573.0) 2,903.7 (1,129.6) 797.3 129.8
Other (63.9) 84.5 15.7 274.7 (8.7) 82.7 (133.4)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Assets Under
Management 395.5 (3,013.6) (1,321.3) 587.4 316.4 (915.7) (3,469.2)
Beginning Balance 46,260.5 46,656.0 43,642.4 42,321.1 42,908.5 43,224.9 42,309.2
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Balance $ 46,656.0 $ 43,642.4 $ 42,321.1 $ 42,908.5 $ 43,224.9 $ 42,309.2 $ 38,840.0
============= ============= ============= ============= ============= ============= =============
Variable Product Change in
Assets Under Management
included in Mutual
Funds above $ 10.8 $ (4.9) $ (39.0) $ 244.7 $ (132.1) $ (45.7) $ (119.2)
============= ============= ============= ============= ============= ============= =============
(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
Third Quarter 2005 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Operating Gain (Loss) $ 4.3 $ (1.9) $ (1.8) $ (5.8) $ (7.4) $ (7.3)
Realized Gains (Losses) on Cash and
Stock Distributions 19.2 4.4 7.4 4.9 (4.7) 26.2
Change in Unrealized Gains on
Investments Held in Partnerships (10.3) 9.6 13.7 37.1 (47.2) (178.5)
------------- ------------- ------------- ------------- ------------- -------------
Equity in Partnership Earnings,
before income taxes 13.2 12.1 19.3 36.2 (59.3) (159.6)
Applicable Income Taxes (Benefit) 4.6 4.2 6.7 12.7 (20.7) (55.9)
------------- ------------- ------------- ------------- ------------- -------------
Segment Income (Loss) $ 8.6 $ 7.9 $ 12.6 $ 23.5 $ (38.6) $ (103.7)
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) $ 20.0 $ 29.0 $ 37.7 $ 31.0 $ 42.2 $ 47.0
Equity In Earnings (Losses) of Partnerships 13.2 12.1 19.3 36.2 (59.3) (159.6)
Distributions (51.8) (39.5) (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 (18.6) 1.6 6.6 (31.5) (63.9) (175.6)
Beginning Balance 202.9 196.3 196.3 227.8 291.7 467.3
------------- ------------- ------------- ------------- ------------- -------------
Ending Balance $ 184.3 $ 197.9 $ 202.9 $ 196.3 $ 227.8 $ 291.7
============= ============= ============= ============= ============= =============
22
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT
Third Quarter 2005 (unaudited)
($ in millions)
2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Operating Gain (Loss) $ (0.7) $ (1.4) $ 0.2 $ 0.2 $ 10.9 $ (3.7) $ (2.9)
Realized Gains (Losses)
on Cash and Stock
Distributions (3.4) 2.4 5.4 3.0 .2 7.7 11.3
Change in Unrealized Gains
on Investments Held in
Partnerships 15.7 3.4 (9.5) 4.0 (13.3) (1.3) 4.3
------------- ------------- ------------- ------------- ------------- ------------- -------------
Equity in Partnership
Earnings, before income
taxes 11.6 4.4 (3.9) 7.2 (2.2) 2.7 12.7
Applicable Income Taxes
(Benefit) 4.1 1.6 (1.4) 2.5 (.8) 1.0 4.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
Segment Income (Loss) $ 7.5 $ 2.9 $ (2.5) $ 4.7 $ (1.4) $ 1.7 $ 8.3
============= ============= ============= ============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions
(Dollars Invested) $ 7.9 $ 12.6 $ 8.5 $ 8.7 $ 9.5 $ 4.2 $ 6.3
Equity In Earnings
(Losses) of Partnerships 11.6 4.4 (3.9) 7.2 (2.2) 2.7 12.7
Distributions (13.6) (13.0) (12.9) (10.9) (13.0) (14.6) (24.2)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Change in Venture Capital
Investments 5.9 4.0 (8.3) 5.0 (5.7) (7.7) (5.2)
Beginning Balance 196.3 202.2 206.2 197.9 202.9 197.2 189.5
------------- ------------- ------------- ------------- ------------- ------------- -------------
Ending Balance $ 202.2 $ 206.2 $ 197.9 $ 202.9 $ 197.2 $ 189.5 $ 184.3
============= ============= ============= ============= ============= ============= =============
23
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
Corporate Investment Income $ .2 $ .4 $ .4 $ 4.3 $ 1.5 $ 7.2
Interest Expense on Indebtedness (34.2) (29.8) (40.8) (39.6) (31.4) (27.3)
Corporate Expenses (17.8) (13.3) (18.9) (11.0) (10.4) (19.9)
Other .4 (2.0) .2 (1.5) .3 5.3
------------- ------------- ------------- ------------- ------------- -------------
Segment Loss, Before Income Taxes (51.4) (44.7) (59.1) (47.8) (40.0) (34.7)
Applicable Income Tax Benefit (17.7) (15.6) (22.9) (18.8) (29.8) (20.9)
------------- ------------- ------------- ------------- ------------- -------------
Segment Loss $ (33.7) $ (29.1) $ (36.2) $ (29.0) $ (10.2) $ (13.8)
============= ============= ============= ============= ============= =============
24
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Third Quarter 2005 (unaudited)
($ in millions)
SEGMENT INCOME 2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
Corporate Investment
Income (Loss) $ .9 $ (.4) $ .1 $ .1
Interest Expense on
Indebtedness (9.8) (9.9) $ (10.1) $ (11.0) (11.1) (11.4) $ (11.7)
Corporate Expenses (3.9) (4.3) (5.1) (5.6) (5.8) (5.2) (6.8)
Other .1 (1.4) (.7) 2.1 .5 .1 (.2)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Segment Loss, Before
Income Taxes (12.7) (16.0) (15.9) (14.5) (16.3) (16.4) (18.7)
Applicable Income Tax
Benefit (4.4) (6.0) (5.2) (7.4) (5.7) (5.9) (6.1)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Segment Loss $ (8.3) $ (10.0) $ (10.7) $ (7.1) $ (10.6) $ (10.5) $ (12.6)
============= ============= ============= ============= ============= ============= =============
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
Third Quarter 2005 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
REVENUES
Premiums 692.5 $ 739.7 $ 990.6 $ 1,042.2 $ 1,082.0 $ 1,112.7
Insurance and Investment Product Fees 383.4 400.2 534.9 500.9 493.8 469.7
Broker-dealer commission and
distribution fee revenues 21.4 50.2 56.9 81.5 85.0 96.3
Net Investment Income 820.9 802.0 1,075.7 1,107.4 940.5 882.9
Unrealized Gain on Trading Equity
Securities 85.9
Net Realized Investment Gains (Losses) (23.5) 7.8 (.8) (98.5) (133.9) (84.9)
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 1,894.7 1,999.9 2,743.2 2,633.5 2,467.4 2,476.7
------------- ------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 1,027.7 1,060.2 1,422.2 1,454.0 1,436.1 1,406.7
Policyholder Dividends 265.8 309.8 404.7 418.8 401.8 400.1
Policy Acquisition Cost Amortization 67.1 76.3 110.2 94.1 59.2 133.0
Intangible Asset Impairments 10.6 66.3
Intangible Asset Amortization 25.6 25.1 33.8 33.2 32.5 49.4
Interest Expense on Indebtedness 34.2 29.8 40.8 39.6 31.4 27.3
Interest Expense on Non-recourse
Collateralized Obligations 24.7 25.5 33.6 48.9 30.5 42.3
Demutualization Expenses 25.9
Other Operating Expenses 364.3 423.2 560.7 565.1 613.2 654.1
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 1,820.0 1,949.9 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 74.7 50.0 137.2 (20.2) (203.6) (262.1)
Applicable Income Taxes (Benefit) 15.2 12.7 40.5 (18.3) (58.8) (108.7)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations
before Minority Interest 59.5 37.3
and equity in undistributed earnings
(losses) of affiliates 96.7 (1.9) (144.8) (153.4)
Minority Interest in Net Income of
Subsidiaries (.6) (.4) (.5) (.3)
Equity in undistributed earnings (losses)
of affiliates .7 (10.4) (1.8) 4.6 6.4
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations 58.9 38.0 86.3 (4.1) (140.7) (147.3)
Discontinued Operations
Income (Loss) from Discontinued
Operations (.7) .1 .1 (2.1) (1.3) (2.5)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) Before Cumulative Effect of
Accounting Changes 58.2 38.1 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) $ 58.2 $ 38.1 $ 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)
Third Quarter 2005 (unaudited)
($ in millions)
2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
REVENUES
Premiums $ 232.7 $ 238.2 $ 268.8 $ 250.9 $ 226.8 $ 229.1 $ 236.6
Insurance and Investment
Product Fees 136.1 134.0 130.1 134.7 129.0 127.4 127.0
Broker-dealer commission
and distribution fee
revenues 24.3 20.2 5.7 6.7 6.8 7.1 7.5
Net Investment Income 277.7 259.3 265.0 273.7 268.7 268.1 284.1
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) 2.2
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 673.3 666.1 660.5 743.3 613.4 623.9 657.4
------------- ------------- ------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and
Increase in Policy
Liabilities 345.6 341.3 373.3 362.0 343.3 340.0 344.4
Policyholder Dividends 105.9 105.3 98.6 94.9 83.8 83.4 98.6
Policy Acquisition Cost
Amortization 22.6 23.1 30.6 33.9 28.2 9.9 29.0
Intangible Asset Impairments 10.6
Intangible Asset Amortization 8.3 8.3 8.5 8.7 8.4 8.8 8.4
Interest Expense on
Indebtedness 9.8 9.9 10.1 11.0 11.1 11.4 11.7
Interest Expense on
Non-recourse
Collateralized Obligations 8.9 7.5 9.1 8.1 8.9 10.3 5.5
Other Operating Expenses 149.1 150.2 123.9 137.5 117.3 127.3 119.8
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 650.2 645.6 654.1 656.1 600.9 591.1 628.0
------------- ------------- ------------- ------------- ------------- ------------- -------------
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 29.4
Applicable Income Taxes
(Benefit) 7.1 6.2 (.6) 27.8 2.8 10.2 2.2
------------- ------------- ------------- ------------- ------------- ------------- -------------
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 27.2
Minority Interest in Net
Income of Subsidiaries (.3) (.2) (.1)
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 27.1
Income (Loss) from
Discontinued Operations .3 (.2) (0.7)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Income $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4 $ 22.4 $ 26.4
============= ============= ============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
27
THE PHOENIX COMPANIES, INC.
CONSOLIDATING THIRD QUARTER 2005 INCOME STATEMENT
Third Quarter 2005 (unaudited)
($ in millions)
Year-to-Date September 30, 2005
Exclusions from
Operating Segments Other Segments Segment Income
------------------------ ----------------------- -----------------------------------
Realized Intra-
Life & Asset Venture Corporate & Investment Segment
Consolidated Annuity Management Capital Other Loss Other Eliminations
------------- ----------- ----------- ---------- ---------- --------- ---------- ----------
REVENUES
Premiums $ 692.5 $ 692.5
Insurance and Investment
Product Fees 383.4 230.9 $ 157.3 $ (4.8)
Broker-dealer commission
and distribution fee
revenues 21.4 21.4
Net Investment Income 820.9 759.7 $ 13.2 $ 37.0 11.0
Net Realized Investment
Gains (23.5) $ (23.5)
------------- ----------- ----------- ---------- ---------- --------- ---------- ----------
Total Revenues 1,894.7 1,683.1 178.7 13.2 37.0 (23.5) 6.2
------------- ----------- ----------- ---------- ---------- --------- ---------- ----------
BENEFITS AND EXPENSES
Policy Benefits and
Increase in Policy
Liabilities 1,027.7 1,021.2 6.5
Policyholder Dividends 265.8 272.7 (6.9)
Policy Acquisition Cost
Amortization 67.1 75.4 (8.3)
Intangible Asset
Impairments 10.6 10.6
Intangible Asset
Amortization 25.6 25.0 $ .6
Interest Expense on
Indebtedness 34.2 34.2
Interest Expense on
Non-recourse
Collateralized
Obligations 24.7 24.7
Other Operating Expenses 364.3 166.1 154.8 23.0 14.2 6.2
------------- ----------- ----------- ---------- ---------- --------- ---------- ----------
Total Expenses 1,820.0 1,535.4 190.4 88.4 (15.2) 14.8 6.2
------------- ----------- ----------- ---------- ---------- --------- ---------- ----------
Income (Loss) from
Continuing Operations
before Income Taxes,
Minority Interest and
equity in undistributed
earnings (losses) of
affiliates 74.7 147.7 (11.7) 13.2 (51.4) (8.3) (14.8)
Applicable Income Taxes
(Benefit) 15.2 41.7 (4.9) 4.6 (17.7) (3.0) (5.5)
------------- ----------- ----------- ---------- ---------- --------- ---------- ----------
Income (Loss) from
Continuing Operations
before Minority Interest
and equity in
undistributed earnings
(losses) of affiliates 59.5 106.0 (6.8) 8.6 (33.7) (5.3) (9.3)
Minority Interest in Net
Income of Subsidiaries (.6) (.6)
------------- ----------- ----------- ---------- ---------- --------- ---------- ----------
Income (Loss) from
Continuing Operations $ 58.9 $ 106.0 $ (6.8) $ 8.6 $ (33.7) $ (5.3) $ (9.9) $ .0
============= =========== =========== ========== ========== ========= ========== ==========
28
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Third Quarter 2005 (unaudited)
($ in millions, except par value)
December 31,
September ----------------------------------------------------------
2005 2004 2003 2002 2001
-------------- ------------- ------------- ------------- -------------
ASSETS:
Available-for-Sale Debt Securities,
at fair value $ 13,510.8 $ 13,476.3 $ 13,273.0 $ 11,889.5 $ 9,774.1
Available-for-Sale Equity Securities,
at fair value 318.4 304.3 312.0 385.9 287.7
Trading Equity Securities, at fair value 87.3
Mortgage Loans, at unpaid principal balances 154.8 207.9 284.1 468.8 535.8
Policy Loans, at unpaid principal balances 2,214.1 2,196.7 2,241.4 2,195.9 2,172.2
Venture Capital Partnerships, at equity in
net assets 251.9 255.3 234.9 228.6 291.7
Affiliate Equity and Debt Securities,
at cost plus equity in undistributed
earnings 47.5 134.7 150.6
Other Investments 321.0 371.8 402.0 398.9 376.0
-------------- ------------- ------------- ------------- -------------
16,771.0 16,899.6 16,794.9 15,702.3 13,588.1
Available-for-Sale Investments Pledged as
Collateral, at fair value 319.6 1,278.8 1,350.0 1,358.7 550.6
-------------- ------------- ------------- ------------- -------------
Total Investments 17,090.6 18,178.4 18,144.9 17,061.0 14,138.7
Cash and Cash Equivalents 244.6 435.0 447.9 1,110.5 823.3
Deferred Policy Acquisition Costs 1,532.1 1,429.9 1,367.7 1,234.1 1,123.7
Goodwill and Other Intangible Assets 770.6 735.6 755.0 747.7 858.6
Other Assets 669.5 633.4 760.5 711.4 566.1
Separate Account Assets 7,358.8 6,950.3 6,083.2 4,371.2 5,025.2
-------------- ------------- ------------- ------------- -------------
Total Assets $ 27,666.2 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6
============== ============= ============= ============= ==============
LIABILITIES:
Policy Liabilities and Accruals 13,179.2 $ 13,132.3 $ 13,088.6 $ 12,680.0 $ 11,846.4
Policyholder Deposit Funds 3,219.4 3,492.4 3,642.7 3,395.7 1,515.2
Indebtedness 762.9 690.8 639.0 644.3 599.3
Stock Purchase Contracts 126.2 131.9 128.8 137.6
Other Liabilities 584.6 587.3 557.1 570.8 614.1
Non-recourse Collateralized Debt
Obligation Liabilities 390.4 1,355.2 1,472.0 1,609.5 632.7
Separate Account Liabilities 7,358.8 6,950.3 6,083.2 4,371.2 5,020.1
-------------- ------------- ------------- ------------- -------------
Total Liabilities and minority interest 25,621.5 26,340.2 25,611.4 23,409.1 20,227.8
-------------- ------------- ------------- ------------- -------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion
shares authorized; 95,104,299 shares
outstanding (September 30, 2005) 1.0 1.0 1.0 1.0 1.0
Additional paid in capital 2,438.5 2,435.2 2,431.4 2,424.4 2,413.3
Deferred Compensation on Restricted
Stock Units (3.1) (3.6) (3.6)
Accumulated Earnings (Deficit) (243.4) (285.6) (355.3) (331.4) (43.3)
Treasury stock, at cost: 11,313,564 shares
(September 30, 2005) (179.0) (182.6) (189.4) (195.7) (66.0)
Accumulated Other Comprehensive Income (Loss) 30.7 58.0 63.7 (71.5) 2.8
-------------- ------------- ------------- ------------- -------------
Total Stockholders' Equity 2,044.7 2,022.4 1,947.8 1,826.8 2,307.8
-------------- ------------- ------------- ------------- -------------
Total Liabilities, Minority Interest
and Stockholders' Equity $ 27,666.2 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6
============== ============= ============= ============= =============
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
Third Quarter 2005 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
9/30/2005 12/31/04 9/30/2005 12/31/04 9/30/2005 12/31/04
------------- ------------- ------------- ------------- ------------- -------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 8,795.5 $ 8,668.9 $ 7,233.8 $ 7,123.2 $ 1,631.4 $ 1,545.7
BBB 3,683.5 3,733.3 2,392.1 2,493.6 1,280.0 1,239.7
------------- ------------- ------------- ------------- ------------- -------------
Total Investment Grade 12,479.0 12,402.2 9,625.9 9,616.8 2,911.4 2,785.4
BB 798.9 814.6 705.3 698.6 95.5 116.0
B 165.7 150.9 113.3 97.3 46.1 53.6
CCC and Lower 45.8 68.9 36.2 51.1 9.9 17.8
In or Near Default 21.4 39.7 19.8 36.1 3.6 3.6
------------- ------------- ------------- ------------- ------------- -------------
Total Debt Securities $ 13,510.8 $ 13,476.3 $ 10,500.5 $ 10,499.9 $ 3,066.5 $ 2,976.4
============= ============= ============= ============= ============= =============
% Below Investment Grade 7.6% 8.0% 8.3% 8.4% 5.1% 6.4%
- ------------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT AND
EQUITY SECURITIES
As of September 30, 2005 Total Outside Closed Block Closed Block
---------------------------- ---------------------------- ----------------------------
Gains Losses Gains Losses Gains Losses
------------- ------------- ------------- ------------- ------------- -------------
Total Debt Securities $ 475.7 $ (116.8) $ 130.6 $ (72.4) $ 345.1 $ (44.4)
Equity Securities 104.0 (3.6) 90.2 (0.9) 13.8 (2.7)
------------- ------------- ------------- ------------- ------------- -------------
Total Unrealized Gains (Losses) 579.7 (120.4) 220.8 (73.3) 358.9 (47.1)
------------- ------------- ------------- ------------- ------------- -------------
Applicable Policyholder Dividend Obligation 358.9 (47.1) 0.0 0.0 358.9 (47.1)
Applicable Deferred Acquisition Cost (Credit) 73.1 (46.7) 73.1 (46.7) 0.0 0.0
Applicable Deferred Income Tax (Benefit) 51.7 (9.3) 51.7 (9.3) 0.0 0.0
------------- ------------- ------------- ------------- ------------- -------------
Total Offsets to Net Unrealized Gains
(Losses) 483.7 (103.1) 124.8 (56.0) 358.9 (47.1)
------------- ------------- ------------- ------------- ------------- -------------
Net Unrealized Gains (Losses) $ 96.0 $ (17.3) $ 96.0 $ (17.3) $ 0.0 $ 0.0
============= ============= ============= ============= ============= =============
$ 78.7 $ 78.7 $ 0.0
============= ============= =============
(1) Excludes debt and equity securities pledged as collateral.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
Third Quarter 2005 (Quarters unaudited)
($ in millions)
YTD September December 31,
---------------------------- -------------------------------------------
Quarters ended 2005 2004 2004 2003 2002
------------- ------------- ------------- ------------- -------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 597.7 $ 575.9 $ 772.1 $ 765.5 $ 730.8
Equity Securities 6.7 3.1 4.5 4.6 4.2
Mortgages 14.5 17.2 22.5 32.6 40.4
Policy Loans 123.5 126.2 167.1 171.7 171.8
Venture Capital 17.0 15.7 25.5 49.1 (59.3)
Cash & Cash Equivalents 5.1 3.1 4.9 7.0 11.9
Other (2) 33.8 37.9 48.8 35.0 18.9
------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 798.3 779.1 1,045.4 1,065.5 918.7
------------- ------------- ------------- ------------- -------------
Investment Expenses 6.4 7.1 9.8 10.0 9.2
------------- ------------- ------------- ------------- -------------
Total Net Investment Income $ 791.9 $ 772.0 $ 1,035.6 $ 1,055.5 $ 909.5
============= ============= ============= ============= =============
ANNUALIZED YIELDS
Debt Securities 6.0% 6.0% 5.9% 6.0% 6.3%
Equity Securities 4.0% 1.3% 1.3% 1.4% 1.3%
Mortgages 10.2% 10.0% 11.0% 11.2% 8.8%
Policy Loans 7.7% 7.8% 7.9% 8.0% 8.2%
Venture Capital 5.4% 8.9% 10.8% 23.0% -22.8%
Cash & Cash Equivalents 1.7% 0.8% 1.1% 1.3% 1.4%
Other (2) 6.4% 12.4% 13.0% 10.5% 3.6%
------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 6.1% 6.2% 6.2% 6.4% 5.7%
------------- ------------- ------------- ------------- -------------
Investment Expenses 0.0% 0.1% 0.2% 0.1% 0.1%
------------- ------------- ------------- ------------- -------------
Total Net Investment Income 6.1% 6.2% 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)
Third Quarter 2005 (Quarters unaudited)
($ in millions)
2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 191.7 $ 191.8 $ 192.4 $ 196.2 $ 197.3 $ 199.4 $ 201.0
Equity Securities .4 1.6 1.1 1.4 2.1 3.0 1.6
Mortgages 5.9 5.4 5.9 5.3 6.4 4.2 3.9
Policy Loans 42.2 41.7 42.3 40.9 40.7 40.6 42.2
Venture Capital 17.6 1.8 (3.7) 9.8 (2.8) 3.3 16.5
Cash & Cash Equivalents .7 1.0 1.4 1.8 1.7 1.8 1.6
Other (2) 9.6 11.0 17.3 9.9 15.5 5.3 13.0
------------ ------------ ------------ ------------- ------------ ------------ ------------
Total Cash and Invested
Assets 268.1 254.3 256.7 265.3 260.9 257.6 279.8
------------ ------------ ------------ ------------- ------------ ------------ ------------
Investment Expenses 2.8 1.9 2.4 2.7 3.1 2.0 1.3
------------ ------------ ------------ ------------- ------------ ------------ ------------
Total Net Investment
Income $ 265.3 $ 252.4 $ 254.3 $ 262.6 $ 257.8 $ 255.6 $ 278.5
============ ============ ============ ============= ============ ============ ============
ANNUALIZED YIELDS
Debt Securities 5.9% 5.9% 6.0% 6.0% 6.0% 6.0% 6.1%
Equity Securities 0.5% 2.0% 1.4% 1.6% 2.3% 3.4% 2.2%
Mortgages 8.9% 8.5% 10.3% 10.3% 14.1% 13.1% 10.3%
Policy Loans 7.9% 7.7% 7.9% 7.7% 7.8% 7.7% 7.9%
Venture Capital 34.0% 2.9% -5.8% 17.0% -4.3% 0.4% 30.0%
Cash & Cash Equivalents 0.7% 0.8% 1.0% 1.6% 1.7% 1.6% 2.8%
Other (2) 10.7% 9.9% 17.1% 10.4% 19.7% 13.0% 16.6%
------------ ------------ ------------ ------------- ------------ ------------ ------------
Total Cash and Invested
Assets 6.4% 6.0% 6.2% 6.3% 6.3% 6.2% 6.8%
------------ ------------ ------------ ------------- ------------ ------------ ------------
Investment Expenses 0.1% 0.1% 0.2% 0.2% 0.1% 0.1% 0.0%
------------ ------------ ------------ ------------- ------------ ------------ ------------
Total Net Investment
Income 6.3% 5.9% 6.0% 6.2% 6.2% 6.1% 6.7%
============ ============ ============ ============= ============ ============ ============
(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
Third Quarter 2005 (unaudited)
($ in millions)
YTD September December 31,
---------------------------- ----------------------------------------------------------
2005 2004 2004 2003 2002 2001
------------- ------------- ------------- ------------- ------------- -------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (25.0) $ (8.6) $ (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)
Real Estate Impairments (6.6)
Debt and Equity Securities Pledged as
Collateral Impairments (1.0) (16.6) (16.6) (8.3) (34.9) (39.0)
Mortgage Loan Impairments (.8) (4.1) (.6) (6.1)
Other Invested Asset Impairments (3.3) (3.3) (9.9) (22.0) (3.7)
------------- ------------- ------------- ------------- ------------- -------------
Total Impairment Losses (26.8) (28.5) (49.5) (210.8) (186.7) (94.9)
------------- ------------- ------------- ------------- ------------- -------------
Debt Security Net Transaction
Gains (Losses) (9.5) 16.8 28.4 64.7 48.4 21.7
Equity Security Net Transaction
Gains (Losses) 1.8 11.9 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) (.8) (.6) (.8) (.2) 4.0 (2.5)
Other Invested Asset Net Transactions
Gains (Losses) 7.1 (.6) 6.3 9.6 (1.9) (7.5)
Debt and Equity Securities Pledged as
Collateral .2
------------- ------------- ------------- ------------- ------------- -------------
Total Net Transactions Gains (Losses) 2.5 27.7 48.7 112.3 52.8 10.0
------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses) (24.3) (.8) (.8) (98.5) (133.9) (84.9)
============= ============= ============= ============= ============= =============
Closed Block Applicable PDO (Reduction) (6.9) 4.8 3.7 (5.9) (40.3) (15.4)
Applicable Deferred Acquisition
Costs (Credit) (8.3) (.9) (.4) (4.1) (7.2) 10.5
Applicable Deferred Income Tax (Credit) (3.0) 7.4 3.1 (35.6) (20.8) (24.5)
------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment (Losses) Included
in Net Income (1) $ (6.1) $ (12.1) $ (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 $55.0 million in 2003, respectively.
33
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Third Quarter 2005 (unaudited)
($ in millions)
2004 2005
---------------------------------------------------------- -------------------------------------------
Quarters ended March June September December March June September
------------- ------------- ------------- ------------- ------------- ------------- -------------
REALIZED INVESTMENT GAINS
AND LOSSES
Debt Security Impairments $ (2.8) $ (1.2) $ (4.6) $ (6.9) $ (12.2) $ (8.5) $ (4.3)
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 Loan Impairments (.8)
Other Invested Asset
Impairments (3.3)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Impairment Losses (10.8) (4.8) (12.9) (21.0) (12.5) (10.0) (4.3)
------------- ------------- ------------- ------------- ------------- ------------- -------------
Debt Security Net
Transaction Gains (Losses) 7.0 6.1 3.7 11.6 (7.2) .1 (2.4)
Equity Security Net
Transaction Gains (Losses) 2.2 9.5 .2 2.7 (1.0) .4 2.4
Mortgage Loan Net
Transaction Gains (Losses) .2 3.7
Real Estate Net Transaction
Gains (Losses) (.6) (.2) (.3) (.3) (.2)
Other Invested Asset Net
Transactions Gains (Losses) 3.9 4.2 (.1) (1.7) (1.3) 2.5 5.9
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 5.7
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment
Gains (Losses) 2.5 14.4 (9.1) (8.6) (17.9) (7.8) 1.4
============= ============= ============= ============= ============= ============= =============
Closed Block Applicable
PDO (Reduction) .1 7.2 (2.5) (1.1) (4.4) (6.7) 4.2
Applicable Deferred
Acquisition Costs (Credit) .4 (1.2) (.1) .5 (4.8) 1.0 (4.5)
Applicable Deferred Income
Tax (Credit) 1.2 4.2 2.0 (4.3) (3.2) (.3) .5
------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment
Gains (Losses) Included
in Net Income (1) $ .8 $ 4.2 $ (8.5) $ (3.7) $ (5.5) $ (1.8) $ 1.2
============= ============= ============= ============= ============= ============= =============
(1) Includes realized losses of $7.0 million for March 2005 related to our
equity interest in Aberdeen.
34