EXHIBIT 99.1
FINANCIAL SUPPLEMENT
THE PHOENIX COMPANIES, INC.
MARCH 31, 2006
[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:
Citigroup Keith Walsh The Phoenix Companies, Inc. C/O The Bank of New York,
Credit Suisse First Boston (CSFB) Tom Gallagher Shareholder Relations,
Deutsche Bank North America Vanessa Wilson PO Box 11258, New York, NY 10286-1258
Fox-Pitt, Kelton John Nadel Toll-free: 1-800-490-4258 TTY 1-888-269-5221
Friedman, Billings, Ramsey & Co. Stewart Johnson Fax: 1-212-815-2777, e-mail: pnxshareholders@bankofny.com
JP Morgan Jimmy Bhullar Web: www.stockbny.com
Keefe Bruyette & Woods, Inc. Jukka Lipponen
Langen McAlenney Robert Glasspiegel
Lehman Brothers Eric Berg
Merrill Lynch Edward A. Spehar FOR MORE INFORMATION
Morgan Stanley Ken Zerbe To receive additional information, including financial
UBS Andrew Kligerman 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.
SECURITY LISTINGS Investor Relations
The common stock of The Phoenix Companies, Inc. is traded on One American Row
the New York Stock Exchange (NYSE) under the symbol "PNX." P.O. Box 5056, Hartford, CT 06102-5056
Our 7.45 percent bond is traded on the NYSE under the Phone: 1-860-403-7100
symbol "PFX." Fax: 1-860-403-7880
e-mail: pnx.ir@phoenixwm.com
For more information on our products and services, call your Phoenix
representative or visit our Web site at PhoenixWealthManagement.com.
In addition to net income presented in accordance with Generally Accepted
Accounting Principles ("GAAP"), Phoenix considers total segment income in
evaluating its financial performance. See page 2, Income Statement, for a
reconciliation of these measures. Total segment income is an internal
performance measure considered by Phoenix in the management of its operations,
including its compensation plans and budgeting and planning processes. In
addition, management believes that total segment income provides additional
insight into the underlying trends in Phoenix's operations.
Total segment income represents net income from continuing operations (which is
a GAAP measure) before realized investment gains and losses, and certain other
items.
* Net realized investment gains and losses are excluded from segment income
because their size and timing are frequently subject to our discretion.
* Certain other items are excluded from segment income because we believe they
are not indicative of overall operating trends and are items that management
believes are infrequent and material and which result from a business
restructuring, a change in regulatory environment, or other unusual
circumstances.
Because certain of these items are excluded based on our discretion and involve
judgments by management, inconsistencies in their determination may exist and
total segment income may differ from similarly titled measures of other
companies.
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
MARCH 2006 (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
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION............................... 14
ASSET MANAGEMENT............................................................ 16
ASSET MANAGEMENT - NET FLOWS AND ASSETS UNDER MANAGEMENT.................... 18
VENTURE CAPITAL SEGMENT..................................................... 20
CORPORATE AND OTHER......................................................... 22
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT.............................. 24
CONSOLIDATING FIRST QUARTER 2006 INCOME STATEMENT........................... 26
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY......................... 27
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY................................ 28
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS........................... 29
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES........................ 31
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2006 (unaudited)
(amounts in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
YTD March -------------------------------------------------------------
2006 2005 2004 2003 2002
------------- ------------- ------------- ------------- -------------
General Account Invested Assets $ 16,525.4 $ 16,717.2 $ 17,334.6 $ 17,242.8 $ 16,812.8
Separate Account Assets 7,940.4 7,722.2 6,950.3 6,083.2 4,371.2
Total Assets 27,902.8 27,716.2 28,362.6 27,559.2 25,235.9
Indebtedness 740.1 751.9 690.8 639.0 644.3
Total Stockholders' Equity 2,157.5 2,007.1 2,022.4 1,947.8 1,826.8
Total Stockholders' Equity, excluding SFAS 115,
other accumulated OCI and FIN 46-R 2,281.6 2,118.9 $ 2,018.5 $ 1,925.3 $ 1,937.1
Average Equity, excluding other accumulated OCI,
FIN 46-R and Discontinued Operations (1) $ 2,178.5 $ 2,028.6
Debt to Total Capitalization 25.5% 27.3% 25.5% 24.7% 26.1%
Book Value Per Share $ 19.17 $ 21.10 $ 21.32 $ 20.62 $ 19.44
Book Value Per Share, excluding SFAS 115 and
other accumulated OCI $ 19.79 $ 21.72 $ 20.70 $ 19.95 $ 20.20
Book Value Per Share, excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 20.27 $ 22.28 $ 21.27 $ 20.39 $ 20.61
Period-end Common Shares Outstanding 112.6 95.1 94.9 94.4 94.0
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
INDEBTEDNESS:
Surplus Notes $ 204.2 $ 204.2 $ 204.2 $ 175.0 $ 175.0
Senior Unsecured Bonds - due 2008 153.7 153.7 153.7 153.7 153.7
Senior Unsecured Bonds - due 2032 300.0 300.0 300.0 300.0 300.0
Interest Rate Swap 2.0 7.9 10.3 15.6
Bank Credit Facility 25.0 25.0 25.0
Other 57.2 67.0
------------- ------------- ------------- ------------- -------------
Total Indebtedness $ 740.1 $ 751.9 $ 690.8 $ 639.0 $ 644.3
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR
PHOENIX LIFE INSURANCE COMPANY (2)
Capital, Surplus and Surplus Notes $ 953.0 $ 866.5 $ 812.9 $ 831.3 $ 861.0
Asset Valuation Reserve (AVR) 198.4 185.9 188.7 181.5 147.0
------------- ------------- ------------- ------------- -------------
Capital, Surplus, Surplus Notes and AVR $ 1,151.4 $ 1,052.4 $ 1,001.6 $ 1,012.8 $ 1,008.0
============= ============= ============= ============= =============
Policyholder Dividend Liability $ 365.3 $ 356.1 $ 403.3 $ 408.5 $ 403.0
Interest Maintenance Reserve $ (23.8) $ (23.1) $ (31.3) $ (30.2) $ (2.0)
Statutory Gain From Operations $ 16.9 $ 106.2 $ 35.1 $ 69.7 $ 44.5
Statutory Net Income $ 44.1 $ 61.0 $ 47.1 $ 21.5 $ 7.5
-------------
(1) This average equity is used for the calculation of segment return on
equity and represents the average of the monthly average of equity,
excluding other accumulated OCI, the effects of FIN 46-R and the equity of
discontinued operations.
(2) Phoenix Life Insurance Company is required to file financial statements
with state regulatory authorities prepared on an accounting basis
prescribed or permitted by the Insurance Department of the State of New
York. March 2006 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2006 (unaudited)
(amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Life Insurance (1) $ 32.6 $ 38.0 $ 180.5 $ 130.1 $ 100.5 $ 99.8
Annuities (1) 5.7 6.0 12.0 12.7 (1.1) (19.5)
------------- ------------- ------------- ------------- ------------- -------------
Life and Annuity Segment 38.3 44.0 192.5 142.8 99.4 80.3
Asset Management Segment (34.6) (1.7) (10.5) 0.1 (8.7) (69.9)
Venture Capital Segment (2) (2.2) 14.8 19.3 36.2 (59.3)
Corporate and Other Segment (17.4) (16.3) (69.6) (59.1) (47.8) (40.0)
------------- ------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME (LOSS),
BEFORE INCOME TAXES (13.7) 23.8 127.2 103.1 79.1 (88.9)
Applicable Income Taxes (Benefit) (7.5) 7.0 25.5 22.5 21.8 (28.5)
------------- ------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME (LOSS) (6.2) 16.8 101.7 80.6 57.3 (60.4)
Net Realized Investment Gains (Losses) 11.4 1.1 25.5 5.7 3.2 (39.3)
Realized (losses)-Investments Pledged as
Collateral Consolidated Under FIN 46-R (1.0) 0.4 1.3 (12.9) (2.4) (26.3)
Realized and Unrealized Gains (Losses)
on Equity Investment in Aberdeen (7.0) (7.0) 55.9 (55.0)
Share of Aberdeen's Extraordinary Charge
for FSA Settlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and Early
Retirement Costs (2.5) (1.9) (12.4) (21.9) (8.5) (28.5)
Deferred Policy Acquisition
Cost Adjustments 15.1
Demutualization Related Items, Net (1.3)
Other income 1.3
------------- ------------- ------------- ------------- ------------- -------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1.7 9.4 109.1 86.3 (4.1) (140.7)
Income (Loss) from Discontinued Operations (0.7) 0.1 (2.1) (1.3)
------------- ------------- ------------- ------------- ------------- -------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGES 1.7 9.4 108.4 86.4 (6.2) (142.0)
Cumulative Effect of Accounting changes (130.3)
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME (LOSS) $ 1.7 $ 9.4 $ 108.4 $ 86.4 $ (6.2) $ (272.3)
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
BASIC
Weighted-Average Shares Outstanding 103.6 94.9 95.0 94.7 94.2 97.9
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ (0.06) $ 0.18 $ 1.07 $ 0.85 $ 0.61 $ (0.62)
Net Income (Loss) Per Share $ 0.02 $ 0.10 $ 1.14 $ 0.91 $ (0.07) $ (2.78)
DILUTED
Weighted-Average Shares Outstanding
and dilutive potential common shares (3) 106.2 102.3 102.4 100.8 96.6 97.9
------------- ------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ (0.06) $ 0.16 $ 0.99 $ 0.80 $ 0.59 $ (0.62)
Net Income (Loss) Per Share $ 0.02 $ 0.09 $ 1.06 $ 0.86 $ (0.07) $ (2.78)
=============
(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) In the fourth quarter of 2005, the company secured an agreement to sell
approximately three-quarters of the assets in the Venture Capital segment,
and as a result eliminated the segment effective January 1, 2006.
(3) For the twelve months ended December 31, 2003, the weighted
average common shares outstanding and dilutive potential common shares
were 100.8 million. For the calculation of net loss per share, dilutive
potential shares were not included because their effect would have been
anti-dilutive.
2
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2006 (unaudited)
(amounts in millions, except per share data)
SEGMENT INCOME 2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
Life Insurance (1) $ 38.0 $ 68.3 $ 38.1 $ 36.1 $ 32.6
Annuities (1) 6.0 (9.6) 6.9 8.7 5.7
------------- ------------- ------------- ------------- -------------
Life and Annuity Segment 44.0 58.7 45.0 44.8 38.3
Asset Management Segment (1.7) 0.1 (10.1) 1.2 (34.6)
Venture Capital Segment (2) (2.2) 2.7 12.7 1.6
Corporate and Other Segment (16.3) (16.4) (18.7) (18.2) (17.4)
------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME (LOSS), BEFORE INCOME TAXES 23.8 45.1 28.9 29.4 (13.7)
Applicable Income Taxes (Benefit) 7.0 14.2 2.5 1.8 (7.5)
------------- ------------- ------------- ------------- -------------
TOTAL SEGMENT INCOME (LOSS) 16.8 30.9 26.4 27.6 (6.2)
Net Realized Investment Gains (Losses) 1.1 (0.6) 1.1 23.9 11.4
Realized Gains (Losses) - Investments Pledged as
Collateral Consolidated Under FIN 46-R 0.4 (1.2) 0.9 1.2 (1.0)
Realized and Unrealized Losses on Equity Investment in
Aberdeen (7.0)
Management Restructuring and Early Retirement Costs (1.9) (6.7) (1.3) (2.5) (2.5)
------------- ------------- ------------- ------------- -------------
INCOME FROM CONTINUING OPERATIONS 9.4 22.4 27.1 50.2 1.7
Loss from Discontinued Operations (0.7)
------------- ------------- ------------- ------------- -------------
NET INCOME $ 9.4 $ 22.4 $ 26.4 $ 50.2 $ 1.7
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
BASIC
Weighted-Average Shares Outstanding 94.9 95.0 95.1 95.1 103.6
------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ 0.18 $ 0.32 $ 0.28 $ 0.29 $ (0.06)
Net Income Per Share $ 0.10 $ 0.24 $ 0.28 $ 0.53 $ 0.02
DILUTED
Weighted-Average Shares Outstanding and
dilutive potential common shares 102.3 101.1 102.4 103.5 106.2
------------- ------------- ------------- ------------- -------------
Total Segment Income (Loss) Per Share $ 0.16 $ 0.30 $ 0.26 $ 0.27 $ (0.06)
Net Income Per Share $ 0.09 $ 0.22 $ 0.26 $ 0.48 $ 0.02
-------------
(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) In the fourth quarter of 2005, the company secured an agreement to sell
approximately three-quarters of the assets in the Venture Capital segment,
and as a result eliminated the segment effective January 1, 2006.
3
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
First Quarter 2006 (unaudited)
($ in millions)
SEGMENT INCOME YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
Variable Universal Life $ 8.5 $ 9.1 $ 69.6 $ 35.7 $ 35.0 $ 35.9
Universal Life (1) 7.9 10.3 47.9 34.4 21.7 26.3
Other Life and Annuity (2) (3) 0.4 0.4 1.5 1.6 0.2 (0.7)
------------- ------------- ------------- ------------- ------------- -------------
TOTAL, NON-TRADITIONAL LIFE 16.8 19.8 119.0 71.7 56.9 61.5
Traditional Life (3) 15.8 18.2 61.5 58.4 43.6 38.3
------------- ------------- ------------- ------------- ------------- -------------
TOTAL, LIFE INSURANCE 32.6 38.0 180.5 130.1 100.5 99.8
Annuities (3) 5.7 6.0 12.0 12.7 (1.1) (19.5)
------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME, BEFORE INCOME TAXES 38.3 44.0 192.5 142.8 99.4 80.3
Allocated Income Taxes (4) 12.0 14.0 51.3 36.4 31.1 28.0
------------- ------------- ------------- ------------- ------------- -------------
SEGMENT INCOME $ 26.3 $ 30.0 $ 141.2 $ 106.4 $ 68.3 $ 52.3
============= ============= ============= ============= ============= =============
(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.
FINANCIAL HIGHLIGHTS
First Quarter 2006 (unaudited)
($ in millions)
SEGMENT INCOME 2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
Variable Universal Life $ 9.1 $ 37.8 $ 13.9 $ 8.8 $ 8.5
Universal Life (1) 10.3 23.0 7.6 7.0 7.9
Other Life and Annuity (2) (3) 0.4 0.6 (0.0) 0.5 0.4
------------- ------------- ------------- ------------- -------------
TOTAL, NON-TRADITIONAL LIFE 19.8 61.4 21.5 16.3 16.8
Traditional Life (3) 18.2 6.9 16.6 19.8 15.8
------------- ------------- ------------- ------------- -------------
TOTAL, LIFE INSURANCE 38.0 68.3 38.1 36.1 32.6
Annuities (3) 6.0 (9.6) 6.9 8.7 5.7
------------- ------------- ------------- ------------- -------------
SEGMENT INCOME, BEFORE INCOME TAXES 44.0 58.7 45.0 44.8 38.3
Allocated Income Taxes 14.0 19.1 8.6 9.6 12.0
------------- ------------- ------------- ------------- -------------
SEGMENT INCOME $ 30.0 $ 39.6 $ 36.4 $ 35.2 $ 26.3
============= ============= ============= ============= =============
(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
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 7.2 $ 7.4 $ 32.5 $ 29.7 $ 30.1 $ 31.4
Cost of Insurance (COI) 19.6 19.0 76.7 74.6 72.2 66.4
Interest Earned 1.6 1.5 6.3 5.9 5.5 7.0
Surrender Charges 2.1 1.9 7.1 6.9 7.0 4.4
------------- ------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 30.5 29.8 122.6 117.1 114.8 109.2
------------- ------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 8.3 9.0 28.5 30.8 23.4 22.9
Interest Credited 1.0 1.3 4.6 0.9 1.0
DAC Amortized 6.8 4.3 (4.4) 4.6 7.4
Operating Expenses 5.9 6.1 24.3 45.1 48.0 50.4
------------- ------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 22.0 20.7 53.0 81.4 79.8 73.3
------------- ------------- ------------- ------------- ------------- -------------
OPERATING INCOME BEFORE TAX $ 8.5 $ 9.1 $ 69.6 $ 35.7 $ 35.0 $ 35.9
============= ============= ============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 2.9 $ 3.6 $ 13.6 $ 4.0 $ 5.2
Controllable Expenses and Other 6.8 6.7 26.8 66.5 76.7 $ 118.5
------------- ------------- ------------- ------------- ------------- -------------
TOTAL CURRENT EXPENSES 9.7 10.3 40.4 70.5 81.9 118.5
Deferred Acquisition Costs (3.8) (4.2) (16.1) (25.4) (33.9) (68.1)
------------- ------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 5.9 $ 6.1 $ 24.3 $ 45.1 $ 48.0 $ 50.4
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 46.0 $ 63.3 $ 217.9 $ 245.5 $ 353.4 $ 465.7
Surrenders (19.2) (27.4) (94.2) (75.4) (69.4) (37.6)
------------- ------------- ------------- ------------- ------------- -------------
NET SALES 26.8 35.9 123.7 170.1 284.0 428.1
Deaths (2.7) (0.9) (3.6) (2.2) (1.4) (1.8)
Interest Credited 101.0 (9.3) 141.5 170.0 262.7 (150.6)
Fees (7.1) (7.5) (30.3) (31.0) (36.4) (35.8)
Cost of Insurance (18.9) (18.4) (74.6) (72.4) (69.8) (66.4)
------------- ------------- ------------- ------------- ------------- -------------
CHANGE IN FUM 99.1 (0.2) 156.7 234.5 439.1 173.5
Beginning Balance 2,099.8 1,943.1 1,943.1 1,708.6 1,269.5 1,096.0
------------- ------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 2,198.9 $ 1,942.9 $ 2,099.8 $ 1,943.1 $ 1,708.6 $ 1,269.5
============= ============= ============= ============= ============= =============
Life Insurance In Force (1) $ 24,652.2 $ 25,189.9 $ 24,767.7 $ 25,382.0 $ 24,603.0 $ 23,788.2
============= ============= ============= ============= ============= =============
(1) 2006, 2005 and 2004 face amounts updated to include the term rider face
amounts for all variable universal life products.
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 7.4 $ 10.3 $ 6.8 $ 8.0 $ 7.2
Cost of Insurance (COI) 19.0 19.1 19.2 19.4 19.6
Interest Earned 1.5 1.5 2.0 1.3 1.6
Surrender Charges 1.9 1.7 1.7 1.8 2.1
------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 29.8 32.6 29.7 30.5 30.5
------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 9.0 8.2 4.0 7.3 8.3
Interest Credited 1.3 1.1 1.1 1.1 1.0
DAC Amortized 4.3 (21.1) 4.4 8.0 6.8
Operating Expenses 6.1 6.6 6.3 5.3 5.9
------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 20.7 (5.2) 15.8 21.7 22.0
------------- ------------- ------------- ------------- -------------
OPERATING INCOME BEFORE TAX $ 9.1 $ 37.8 $ 13.9 $ 8.8 $ 8.5
-============= ============= ============= ============= ============
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 3.6 $ 3.3 $ 3.3 $ 3.4 $ 2.9
Controllable Expenses and Other 6.7 7.6 6.9 5.6 6.8
------------- ------------- ------------- ------------- -------------
TOTAL CURRENT EXPENSES 10.3 10.9 10.2 9.0 9.7
Deferred Acquisition Costs (4.2) (4.3) (3.9) (3.7) (3.8)
------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 6.1 $ 6.6 $ 6.3 $ 5.3 $ 5.9
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 63.3 $ 49.0 $ 43.1 $ 62.5 $ 46.0
Surrenders (27.4) (19.6) (24.1) (23.1) (19.2)
------------- ------------- ------------- ------------- -------------
NET SALES 35.9 29.4 19.0 39.4 26.8
Deaths (0.9) (0.7) (0.2) (1.8) (2.7)
Interest Credited (9.3) 22.0 79.0 49.8 101.0
Fees (7.5) (7.7) (7.3) (7.8) (7.1)
Cost of Insurance (18.4) (18.6) (18.7) (18.9) (18.9)
------------- ------------- ------------- ------------- -------------
CHANGE IN FUM (0.2) 24.4 71.8 60.7 99.1
Beginning Balance 1,943.1 1,942.9 1,967.3 2,039.1 2,099.8
------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 1,942.9 $ 1,967.3 $ 2,039.1 $ 2,099.8 $ 2,198.9
============= ============= ============= ============= =============
Life Insurance In Force (1) $ 25,189.9 $ 25,041.0 $ 24,930.2 $ 24,767.7 $ 24,652.2
============= ============= ============= ============= =============
(1) 2006 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
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 8.0 $ 4.7 $ 17.9 $ 19.1 $ 17.3 $ 11.9
Cost of Insurance (COI) 42.0 24.0 109.9 90.7 78.9 71.6
Interest Earned 27.0 25.4 108.7 100.4 98.2 108.4
Surrender Charges 1.0 0.5 3.2 3.2 2.5 3.9
------------- ------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 78.0 54.6 239.7 213.4 196.9 195.8
------------- ------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 27.6 13.9 61.8 58.4 51.4 40.4
Interest Credited 19.4 18.5 74.5 19.1 20.2
DAC Amortized 9.6 6.3 17.9 4.1 4.1
Operating Expenses 13.5 5.6 37.6 97.4 99.5 129.1
------------- ------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 70.1 44.3 191.8 179.0 175.2 169.5
------------- ------------- ------------- ------------- ------------- -------------
OPERATING INCOME BEFORE TAX $ 7.9 $ 10.3 $ 47.9 $ 34.4 $ 21.7 $ 26.3
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 34.7 $ 5.4 $ 51.1 $ 6.9 $ 6.2
Controllable Expenses and Other 51.6 13.8 96.5 154.0 168.2 $ 169.3
------------- ------------- ------------- ------------- ------------- -------------
TOTAL CURRENT EXPENSES 86.3 19.2 147.6 160.9 174.4 169.3
Deferred Acquisition Costs (72.8) (13.6) (110.0) (63.5) (74.9) (40.2)
------------- ------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 13.5 $ 5.6 $ 37.6 $ 97.4 $ 99.5 $ 129.1
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 135.5 $ 54.9 $ 297.8 $ 229.4 $ 217.8 $ 149.3
Surrenders (22.5) (23.3) (94.1) (126.2) (118.6) (107.4)
------------- ------------- ------------- ------------- ------------- -------------
NET SALES 113.0 31.6 203.7 103.2 99.2 41.9
Deaths (6.8) (4.6) (22.3) (16.9) (19.4) (25.0)
Interest Credited 19.4 18.5 78.7 74.6 78.0 85.8
Fees (11.4) (4.9) (26.8) (23.5) (24.9) (16.7)
Cost of Insurance (42.0) (24.0) (109.9) (90.7) (78.9) (71.6)
------------- ------------- ------------- ------------- ------------- -------------
CHANGE IN FUM 72.2 16.6 123.4 46.7 54.0 14.4
Beginning Balance 1,734.1 1,610.7 1,610.7 1,564.0 1,510.0 1,495.6
------------- ------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 1,806.3 $ 1,627.3 $ 1,734.1 $ 1,610.7 $ 1,564.0 $ 1,510.0
============= ============= ============= ============= ============= =============
Life Insurance In Force $ 17,667.4 $ 14,328.7 $ 16,303.0 $ 14,103.7 $ 12,830.3 $ 10,476.7
============= ============= ============= ============= ============= =============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 4.7 $ 1.2 $ 4.9 $ 7.1 $ 8.0
Cost of Insurance (COI) 24.0 24.9 27.6 33.4 42.0
Interest Earned 25.4 26.2 28.6 28.5 27.0
Surrender Charges 0.5 0.7 0.9 1.1 1.0
------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 54.6 53.0 62.0 70.1 78.0
------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 13.9 13.7 16.1 18.1 27.6
Interest Credited 18.5 18.3 18.9 18.8 19.4
DAC Amortized 6.3 (10.3) 9.1 12.8 9.6
Operating Expenses 5.6 8.3 10.3 13.4 13.5
------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 44.3 30.0 54.4 63.1 70.1
------------- ------------- ------------- ------------- -------------
OPERATING INCOME BEFORE TAX $ 10.3 $ 23.0 $ 7.6 $ 7.0 $ 7.9
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 5.4 $ 7.1 $ 12.6 $ 26.0 $ 34.7
Controllable Expenses and Other 13.8 16.3 23.1 43.3 51.6
------------- ------------- ------------- ------------- -------------
TOTAL CURRENT EXPENSES 19.2 23.4 35.7 69.3 86.3
Deferred Acquisition Costs (13.6) (15.1) (25.4) (55.9) (72.8)
------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 5.6 $ 8.3 $ 10.3 $ 13.4 $ 13.5
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 54.9 $ 57.7 $ 73.9 $ 111.3 $ 135.5
Surrenders (23.3) (24.7) (27.4) (18.7) (22.5)
------------- ------------- ------------- ------------- -------------
NET SALES 31.6 33.0 46.5 92.6 113.0
Deaths (4.6) (7.0) (5.8) (4.9) (6.8)
Interest Credited 18.5 18.4 18.8 23.0 19.4
Fees (4.9) (5.2) (7.1) (9.6) (11.4)
Cost of Insurance (24.0) (24.9) (27.6) (33.4) (42.0)
------------- ------------- ------------- ------------- -------------
CHANGE IN FUM 16.6 14.3 24.8 67.7 72.2
Beginning Balance 1,610.7 1,627.4 1,641.6 1,666.4 1,734.1
------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 1,627.3 $ 1,641.7 $ 1,666.4 $ 1,734.1 $ 1,806.3
============= ============= ============= ============= =============
Life Insurance In Force $ 14,328.7 $ 14,583.3 $ 15,126.3 $ 16,303.0 $ 17,667.4
============= ============= ============= ============= =============
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
LIFE INSURANCE SALES 2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
WHOLESALER CHANNEL
Variable Universal Life $ 2.8 $ 6.2 $ 16.1 $ 18.2 $ 30.1 $ 62.5
Universal Life/Interest Sensitive 83.5 10.8 104.4 47.5 67.6 36.9
Term Life 5.5 3.8 16.4 15.3 19.2 15.1
Participating Whole Life 0.6 4.8
------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Annualized Premium (1) 91.8 20.8 136.9 81.0 117.5 119.3
============= ============= ============= ============= ============= =============
Variable Universal Life 1.1 0.8 6.4 10.8 20.1 25.1
Universal Life/Interest Sensitive 18.0 8.5 49.2 53.2 61.6 29.9
Participating Whole Life 0.8
------------- ------------- ------------- ------------- ------------- -------------
Life Insurance Single Premium 19.1 9.3 55.6 64.0 81.7 55.8
============= ============= ============= ============= ============= =============
Variable Universal Life 3.9 7.0 22.5 29.0 50.2 87.6
Universal Life/Interest Sensitive 101.5 19.3 153.6 100.7 129.2 66.8
Term Life 5.5 3.8 16.4 15.3 19.2 15.1
Participating Whole Life 0.6 5.6
------------- ------------- ------------- ------------- ------------- -------------
Total Wholesaler Life Insurance Premium (2) $ 110.9 $ 30.1 $ 192.5 $ 145.0 $ 199.2 $ 175.1
============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized
and single) $ 8.5 $ 14.3 $ 46.5 $ 60.1 $ 149.5 $ 222.5
Annuity 3.4 487.6 773.8 152.6 394.9 142.6
------------- ------------- ------------- ------------- ------------- -------------
Total Private Placement Life and
Annuity Deposits $ 11.9 $ 501.9 $ 820.3 $ 212.7 $ 544.4 $ 365.1
============= ============= ============= ============= ============= =============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 2,783.9 $ 2,414.1 $ 2,776.4 $ 1,898.5 $ 1,535.5 $ 864.7
============= ============= ============= ============= ============= =============
(1) Annualized Premium represents first year premiums on an annual basis.
(2) Total Premium represents Annualized and Single premiums.
10
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
LIFE INSURANCE SALES ---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
WHOLESALER CHANNEL
Variable Universal Life $ 6.2 $ 3.6 $ 3.1 $ 3.2 $ 2.8
Universal Life/Interest Sensitive 10.8 14.2 22.5 56.9 83.5
Term Life 3.8 3.8 3.9 4.9 5.5
------------- ------------- ------------- ------------- -------------
Life Insurance Annualized Premium (1) 20.8 21.6 29.5 65.0 91.8
============= ============= ============= ============= =============
Variable Universal Life 0.8 1.6 1.7 2.3 1.1
Universal Life/Interest Sensitive 8.5 11.3 11.6 17.8 18.0
------------- ------------- ------------- ------------- -------------
Life Insurance Single Premium 9.3 12.9 13.3 20.1 19.1
============= ============= ============= ============= ============
Variable Universal Life 7.0 5.2 4.8 5.5 3.9
Universal Life/Interest Sensitive 19.3 25.5 34.1 74.7 101.5
Term Life 3.8 3.8 3.9 4.9 5.5
------------- ------------- ------------- ------------- -------------
Total Wholesaler Life Insurance Premium (2) $ 30.1 $ 34.5 $ 42.8 $ 85.1 $ 110.9
============= ============= ============= ============= =============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) $ 14.3 $ 11.3 $ 2.3 $ 18.6 $ 8.5
Annuity 487.6 11.9 11.0 263.3 3.4
------------- ------------- ------------- ------------- -------------
Total Private Placement Life and Annuity Deposits $ 501.9 $ 23.2 $ 13.3 $ 281.9 $ 11.9
============= ============= ============= ============= =============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 2,414.1 $ 2,343.1 $ 2,431.6 $ 2,776.4 $ 2,783.9
============= ============= ============= ============= =============
(1) Annualized Premium represents first year premiums on an annual basis.
(2) Total Premium represents Annualized and Single premiums.
11
THE PHOENIX COMPANIES, INC.
ANNUITIES
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 16.6 $ 16.5 $ 65.4 $ 63.8 $ 57.1 $ 57.5
Surrender Charges 1.5 1.9 7.0 5.8 7.4 6.6
Interest earned on GIA and Required Interest 35.5 41.6 165.1 158.0 150.0 109.1
------------- ------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 53.6 60.0 237.5 227.6 214.5 173.2
------------- ------------- ------------- ------------- ------------- -------------
Mortality Cost 0.3 1.1 6.6 8.9 5.3 12.0
DAC Amortized 11.2 13.6 62.6 6.9 9.5
Interest Credited 25.1 29.2 112.1 29.3 33.3
Operating Expenses 11.3 10.1 44.2 169.8 167.5 180.7
------------- ------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 47.9 54.0 225.5 214.9 215.6 192.7
------------- ------------- ------------- ------------- ------------- -------------
OPERATING INCOME (LOSS) BEFORE TAX $ 5.7 $ 6.0 $ 12.0 $ 12.7 $ (1.1) $ (19.5)
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 9.9 $ 9.8 $ 38.2 $ 12.6 $ 16.7
Controllable Expenses and Other 10.1 8.5 37.9 200.9 216.3 $ 283.3
------------- ------------- ------------- ------------- ------------- -------------
Total Current Expenses 20.0 18.3 76.1 213.5 233.0 283.3
Deferred Acquisition Costs (8.7) (8.2) (31.9) (43.7) (65.5) (102.6)
------------- ------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 11.3 $ 10.1 $ 44.2 $ 169.8 $ 167.5 $ 180.7
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 96.3 $ 580.9 $ 1,113.5 $ 671.2 $ 1,428.3 $ 2,258.4
Surrenders (490.7) (227.5) (1,180.9) (803.1) (865.6) (754.4)
------------- ------------- ------------- ------------- ------------- -------------
NET SALES (394.4) 353.4 (67.4) (131.9) 562.7 1,504.0
Deaths (22.6) (22.3) (80.2) (81.6) (71.4) (40.6)
Interest Credited 319.2 (1.0) 545.8 628.2 895.2 (330.6)
Fees (15.8) (16.3) (63.0) (59.8) (57.7) (58.8)
------------- ------------- ------------- ------------- ------------- -------------
CHANGE IN FUM (113.6) 313.8 335.2 354.9 1,328.8 1,074.0
Beginning Balance 8,038.1 7,702.9 7,702.9 7,348.0 6,019.2 4,945.2
------------- ------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 7,924.5 $ 8,016.7 $ 8,038.1 $ 7,702.9 $ 7,348.0 $ 6,019.2
============= ============= ============= ============= ============= =============
VA Funds in Guaranteed Interest Accounts (1) $ 1,355.0 $ 1,873.8 $ 1,553.8 $ 1,939.1 $ 2,067.4 $ 2,159.3
============= ============= ============= ============= ============= =============
Fixed Annuities (1) $ 1,005.2 $ 1,165.9 $ 1,011.4 $ 1,175.5 $ 1,216.3 $ 902.1
============= ============= ============= ============= ============= =============
(1) Amounts are included in the annuities funds under management table above.
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 16.5 $ 16.1 $ 16.3 $ 16.5 $ 16.6
Surrender Charges 1.9 2.0 1.3 1.8 1.5
Interest earned on GIA and Required Interest 41.6 39.9 41.0 42.6 35.5
------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 60.0 58.0 58.6 60.9 53.6
------------- ------------- ------------- ------------- -------------
Mortality Cost 1.1 2.2 0.6 2.7 0.3
DAC Amortized 13.6 24.7 12.3 12.0 11.2
Interest Credited 29.2 28.5 27.7 26.7 25.1
Operating Expenses 10.1 12.2 11.1 10.8 11.3
------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 54.0 67.6 51.7 52.2 47.9
------------- ------------- ------------- ------------- -------------
OPERATING INCOME (LOSS) BEFORE TAX $ 6.0 $ (9.6) $ 6.9 $ 8.7 $ 5.7
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 9.8 $ 9.2 $ 9.7 $ 9.5 $ 9.9
Controllable Expenses and Other 8.5 9.9 9.7 9.8 10.1
------------- ------------- ------------- ------------- -------------
Total Current Expenses 18.3 19.1 19.4 19.3 20.0
Deferred Acquisition Costs (8.2) (6.9) (8.3) (8.5) (8.7)
------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 10.1 $ 12.2 $ 11.1 $ 10.8 $ 11.3
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 580.9 $ 93.5 $ 92.5 $ 346.6 $ 96.3
Surrenders (227.5) (337.4) (294.3) (321.7) (490.7)
------------- ------------- ------------- ------------- -------------
NET SALES 353.4 (243.9) (201.8) 24.9 (394.4)
Deaths (22.3) (18.0) (18.2) (21.7) (22.6)
Interest Credited (1.0) 85.6 278.9 182.3 319.2
Fees (16.3) (15.6) (15.4) (15.7) (15.8)
------------- ------------- ------------- ------------- -------------
CHANGE IN FUM 313.8 (191.9) 43.5 169.8 (113.6)
Beginning Balance 7,702.9 8,016.7 7,824.8 7,868.3 8,038.1
------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 8,016.7 $ 7,824.8 $ 7,868.3 $ 8,038.1 $ 7,924.5
============= ============= ============= ============= =============
VA Funds in Guaranteed Interest Accounts (1) $ 1,873.8 $ 1,796.4 $ 1,706.1 $ 1,553.8 $ 1,355.0
============= ============= ============= ============= =============
Fixed Annuities (1) $ 1,165.9 $ 1,153.2 $ 1,203.2 $ 1,011.4 $ 1,005.2
============= ============= ============= ============= =============
(1) Amounts are included in the annuities funds under management table above.
13
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 349.9 $ 332.3 $ 353.0 $ 332.5 $ 329.3 $ 310.3
Universal Life 417.7 269.2 354.7 262.0 219.2 163.1
Variable Annuities 281.7 294.9 281.3 299.0 291.8 267.9
Fixed Annuities 38.2 44.7 38.8 46.0 45.2 26.3
Participating 548.1 579.9 544.2 577.0 576.3 573.1
Offset for Unrealized Investment
Gains and Losses 22.5 (26.7) (16.0) (86.6) (94.1) (106.6)
------------- ------------- ------------- ------------- ------------- -------------
Total $ 1,658.1 $ 1,494.3 $ 1,556.0 $ 1,429.9 $ 1,367.7 $ 1,234.1
============= ============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM
DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 291.6 $ 459.3 $ 335.5 $ 441.1 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 66.5 130.1 82.1 123.5 183.0 234.9
Statutory Reserve, Net of Reinsurance 13.2 15.8 13.8 15.0 17.3 15.8
GAAP Reserve, Net of Reinsurance $ 9.3 $ 9.3 $ 10.7 $ 9.1 $ 7.8 $ 6.7
------------
14
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 332.3 $ 357.8 $ 357.2 $ 353.0 $ 349.9
Universal Life 269.2 294.6 311.0 354.7 417.7
Variable Annuities 294.9 281.3 280.6 281.3 281.7
Fixed Annuities 44.7 40.4 39.0 38.8 38.2
Participating 579.9 570.2 573.3 544.2 548.1
Offset for Unrealized Investment Gains and Losses (26.7) (83.6) (29.0) (16.0) 22.5
------------- ------------- ------------- ------------- -------------
Total $ 1,494.3 $ 1,460.7 $ 1,532.1 $ 1,556.0 $ 1,658.1
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 459.3 $ 425.0 $ 371.1 $ 335.5 $ 291.6
Death Benefit in Excess of Fund Value, Net of Reinsurance 130.1 114.0 93.1 82.1 66.5
Statutory Reserve, Net of Reinsurance 15.8 15.0 14.1 13.8 13.2
GAAP Reserve, Net of Reinsurance $ 9.3 $ 9.6 $ 9.8 $ 10.7 $ 9.3
-------------
15
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
SEGMENT INCOME 2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
Investment Management Fees $ 36.5 $ 49.5 $ 182.1 $ 219.0 $ 205.5 $ 219.2
Mutual Funds - Ancillary Fees (1) 10.6 9.8 40.5 38.3 35.5 38.7
Other Revenue 1.4 1.3 5.5 7.7 9.3 10.2
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 48.5 60.6 228.1 265.0 250.3 268.1
------------- ------------- ------------- ------------- ------------- -------------
Employment Expenses 22.5 29.2 103.9 132.6 129.6 134.9
Other Operating Expenses (1) 20.4 21.8 86.4 85.9 86.7 93.4
Amortization of Intangibles 8.0 8.4 33.2 33.8 33.2 32.5
Intangible Asset Impairments 32.5 10.6 66.3
------------- ------------- ------------- ------------- ------------- -------------
Total Operating Expenses 83.4 59.4 234.1 252.3 249.5 327.1
------------- ------------- ------------- ------------- ------------- -------------
Management Income (Loss) (34.9) 1.2 (6.0) 12.7 0.8 (59.0)
Other Income - Net 0.3 0.4 2.2 1.7 2.5 1.0
Minority Interest (3.2) (6.7) (14.3) (12.0) (11.9)
------------- ------------- ------------- ------------- ------------- -------------
Segment Income (Loss), before income taxes (34.6) (1.7) (10.5) 0.1 (8.7) (69.9)
Applicable Income Taxes (Benefit) (13.4) (0.5) (4.7) 2.3 (3.3) (6.0)
------------- ------------- ------------- ------------- ------------- -------------
Segment Loss $ (21.2) $ (1.2) $ (5.8) $ (2.2) $ (5.4) $ (63.9)
============= ============= ============= ============= ============= =============
(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.
16
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
SEGMENT INCOME March June September December March
------------- ------------- ------------- ------------- -------------
Investment Management Fees $ 49.5 $ 46.6 $ 46.8 $ 39.3 $ 36.5
Mutual Funds - Ancillary Fees 9.8 10.1 10.3 10.4 10.6
Other Revenue 1.3 1.6 1.4 1.1 1.4
------------- ------------- ------------- ------------- -------------
Total Revenues 60.6 58.3 58.5 50.8 48.5
------------- ------------- ------------- ------------- -------------
Employment Expenses 29.2 27.3 26.9 20.5 22.5
Other Operating Expenses 21.9 21.3 21.6 21.8 20.4
Amortization of Intangibles 8.4 8.3 8.3 8.1 8.0
Intangible Asset Impairments 10.6 32.5
------------- ------------- ------------- ------------- -------------
Total Operating Expenses 59.5 56.9 67.4 50.4 83.4
------------- ------------- ------------- ------------- -------------
Management Income (Loss) 1.1 1.2 (8.9) 0.4 (34.9)
Other Income - Net 0.4 0.7 0.4 0.8 0.3
Minority Interest (3.2) (1.9) (1.6)
------------- ------------- ------------- ------------- -------------
Segment Income (Loss), before income taxes (1.7) 0.1 (10.1) 1.2 (34.6)
Applicable Income Taxes (Benefit) (0.5) 0.1 (4.5) 0.2 (13.4)
------------- ------------- ------------- ------------- -------------
Segment Income (Loss) $ (1.2) $ 0.0 $ (5.6) $ 1.0 $ (21.2)
============= ============= ============= ============= =============
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
--------------------------- ---------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- --------------
RETAIL PRODUCTS:
Managed Accounts
- ----------------
Deposits and reinvestments $ 329.1 $ 508.1 $ 1,760.3 $ 2,109.9 $ 2,268.3 $ 4,421.1
Redemptions and withdrawals (1,465.9) (1,499.8) (5,722.8) (5,203.0) (2,656.6) (2,716.3)
------------- ------------- ------------- ------------- ------------- --------------
Net Flows (1,136.8) (991.7) (3,962.5) (3,093.1) (388.3) 1,704.8
Performance 461.5 (527.9) (62.6) 950.3 1,537.5 (3,278.2)
Acquisitions (dispositions) / Other 71.0 (158.0) 7,244.3
------------- ------------- ------------- ------------- ------------- --------------
Net Change in AUM (604.3) (1,519.6) (4,183.1) (2,142.8) 1,149.2 5,670.9
Assets under management, beginning of period 9,332.5 13,515.6 13,515.6 15,658.4 14,509.2 8,838.3
------------- ------------- ------------- ------------- ------------- --------------
Assets under management, end of period $ 8,728.2 $ 11,996.0 $ 9,332.5 $ 13,515.6 $ 15,658.4 $ 14,509.2
============= ============= ============= ============= ============= ==============
Mutual Funds
- ------------
Deposits and reinvestments $ 640.4 $ 515.3 $ 2,030.4 $ 1,673.2 $ 1,489.2 $ 1,213.2
Redemptions and withdrawals (620.8) (702.0) (2,444.0) (2,004.5) (1,683.6) (1,983.9)
------------- ------------- ------------- ------------- ------------- --------------
Net Flows 19.6 (186.7) (413.6) (331.3) (194.4) (770.7)
Performance 349.4 (310.3) 184.1 805.9 1,588.8 (2,018.9)
Money market funds net change in AUM (0.1) 5.5 (28.4) (28.9) (45.2) (4.4)
Acquisitions (dispositions) / Other 185.0 1.4 120.1 105.7 (80.6) 54.6
------------- ------------- ------------- ------------- ------------- --------------
Net Change in AUM 553.9 (490.1) (137.8) 551.4 1,268.6 (2,739.4)
Assets under management, beginning of period 12,147.2 12,285.0 12,285.0 11,733.6 10,465.0 13,204.4
------------- ------------- ------------- ------------- ------------- --------------
Assets under management, end of period $ 12,701.1 $ 11,794.9 $ 12,147.2 $ 12,285.0 $ 11,733.6 $ 10,465.0
============= ============= ============= ============= ============= ==============
INSTITUTIONAL PRODUCTS:
Deposits and reinvestments $ 574.6 $ 4,037.2 $ 5,545.1 $ 2,885.2 $ 3,230.7 $ 3,419.3
Redemptions and withdrawals (940.6) (1,341.7) (6,599.1) (5,389.2) (3,505.3) (4,630.8)
------------- ------------- ------------- ------------- ------------- --------------
Net Flows (366.0) 2,695.5 (1,054.0) (2,504.0) (274.6) (1,211.5)
Performance 283.7 (242.7) 367.2 1,140.5 2,333.0 (2,539.6)
Acquisitions (dispositions) / Other (14.2) (15.5) (63.3) 234.3 (76.0) 11.5
------------- ------------- ------------- ------------- ------------- --------------
Net Change in AUM (96.5) 2,437.3 (750.1) (1,129.2) 1,982.4 (3,739.6)
Assets under management, beginning of period 13,433.4 14,183.5 14,183.5 15,312.7 13,330.3 17,069.9
------------- ------------- ------------- ------------- ------------- --------------
Assets under management, end of period $ 13,336.9 $ 16,620.8 $ 13,433.4 $ 14,183.5 $ 15,312.7 $ 13,330.3
============= ============= ============= ============= ============= ==============
STRUCTURED FINANCE PRODUCTS:
Deposits and reinvestments $ 13.8 $ 0.5 $ 1,002.3 $ 1.7 $ 1.1 $ 1,193.3
Redemptions and withdrawals (196.9) (63.0) (1,157.9) (659.2) (303.1) (244.6)
------------- ------------- ------------- ------------- ------------- --------------
Net Flows (183.1) (62.5) (155.6) (657.5) (302.0) 948.7
Performance 37.4 (48.7) (258.9) 26.0 327.0 (28.8)
------------- ------------- ------------- ------------- ------------- --------------
Net Change in AUM (145.7) (111.2) (414.5) (631.5) 25.0 919.8
Assets under management, beginning of period 2,509.8 2,924.3 2,924.3 3,555.8 3,530.8 2,610.9
------------- ------------- ------------- ------------- ------------- --------------
Assets under management, end of period $ 2,364.1 $ 2,813.1 $ 2,509.8 $ 2,924.3 $ 3,555.8 $ 3,530.8
============= ============= ============= ============= ============= ==============
TOTAL:
Deposits and reinvestments $ 1,557.9 $ 5,061.1 $ 10,338.1 $ 6,670.0 $ 6,989.3 $ 10,246.9
Redemptions and withdrawals (3,224.2) (3,606.5) (15,923.8) (13,255.9) (8,148.6) (9,575.6)
------------- ------------- ------------- ------------- ------------- --------------
Net Flows (1,666.3) 1,454.6 (5,585.7) (6,585.9) (1,159.3) 671.3
Performance 1,132.0 (1,129.6) 229.8 2,922.7 5,786.3 (7,865.5)
Money market funds net change in AUM (0.1) 5.5 (28.4) (28.9) (45.2) (4.4)
Acquisitions (dispositions) / Other 241.8 (14.1) (101.2) 340.0 (156.6) 7,310.4
------------- ------------- ------------- ------------- ------------- --------------
Net Change in AUM (292.6) 316.4 (5,485.5) (3,352.1) 4,425.2 111.8
Assets under management, beginning of period 37,422.9 42,908.4 42,908.4 46,260.5 41,835.3 41,723.5
------------- ------------- ------------- ------------- ------------- --------------
Assets under management, end of period $ 37,130.3 $ 43,224.8 $ 37,422.9 $ 42,908.4 $ 46,260.5 $ 41,835.3
============= ============= ============= ============= ============= ==============
* Variable Products Change in AUM (included
in Institutional Products) $ 27.7 $ (132.1) $ (342.3) $ 211.6 $ 200.4 $ (686.5)
============= ============= ============= ============= ============= ==============
18
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
March June September December March
------------- ------------- ------------- ------------- -------------
RETAIL PRODUCTS:
Managed Accounts:
- -----------------
Deposits and reinvestments $ 508.1 $ 446.0 $ 488.6 $ 317.6 $ 329.1
Redemptions and withdrawals (1,499.8) (1,192.8) (1,406.0) (1,624.2) (1,465.9)
------------- ------------- ------------- ------------- -------------
Net Flows (991.7) (746.8) (917.4) (1,306.6) (1,136.8)
Performance (527.9) 55.2 126.1 284.0 461.5
Acquistions (dispositions) / Other (421.4) 263.4 71.0
------------- ------------- ------------- ------------- -------------
Net Change in AUM (1,519.6) (1,113.0) (527.9) (1,022.6) (604.3)
Assets under management, beginning of period 13,515.6 11,996.0 10,883.0 10,355.1 9,332.5
------------- ------------- ------------- ------------- -------------
Assets under management, end of period $ 11,996.0 $ 10,883.0 $ 10,355.1 $ 9,332.5 $ 8,728.2
============= ============= ============= ============= =============
Mutual Funds:
- -------------
Deposits and reinvestments $ 515.3 $ 535.2 $ 559.2 $ 420.7 $ 640.4
Redemptions and withdrawals (702.0) (527.7) (568.0) (646.3) (620.8)
------------- ------------- ------------- ------------- -------------
Net Flows (186.7) 7.5 (8.8) (225.6) 19.6
Performance (310.3) 340.2 134.1 20.1 349.4
Money market funds net change in AUM 5.5 (7.5) (11.4) (15.0) (0.1)
Acquistions (dispositions) / Other 1.4 140.5 9.4 (31.2) 185.0
------------- ------------- ------------- ------------- -------------
Net Change in AUM (490.1) 480.7 123.3 (251.7) 553.9
Assets under management, beginning of period 12,285.0 11,794.9 12,275.6 12,398.9 12,147.2
------------- ------------- ------------- ------------- -------------
Assets under management, end of period $ 11,794.9 $ 12,275.6 $ 12,398.9 $ 12,147.2 $ 12,701.1
============= ============= ============= ============= =============
INSTITUTIONAL PRODUCTS:
Deposits and reinvestments $ 4,037.2 $ 470.3 $ 385.1 $ 652.5 $ 574.6
Redemptions and withdrawals (1,341.7) (1,495.2) (1,912.9) (1,849.3) (940.6)
------------- ------------- ------------- ------------- -------------
Net Flows 2,695.5 (1,024.9) (1,527.8) (1,196.8) (366.0)
Performance (242.7) 388.2 90.9 130.8 283.7
Acquistions (dispositions) / Other (15.5) 371.1 (394.6) (24.3) (14.2)
------------- ------------- ------------- ------------- -------------
Net Change in AUM 2,437.3 (265.6) (1,831.5) (1,090.3) (96.5)
Assets under management, beginning of period 14,183.5 16,620.8 16,355.2 14,523.7 13,433.4
------------- ------------- ------------- ------------- -------------
Assets under management, end of period $ 16,620.8 $ 16,355.2 $ 14,523.7 $ 13,433.4 $ 13,336.9
============= ============= ============= ============= =============
STRUCTURED FINANCE PRODUCTS:
Deposits and reinvestments $ 0.5 $ 0.2 $ 1.0 $ 1,000.6 $ 13.8
Redemptions and withdrawals (63.0) (31.7) (1,012.6) (50.6) (196.9)
------------- ------------- ------------- ------------- -------------
Net Flows (62.5) (31.5) (1,011.6) 950.0 (183.1)
Performance (48.7) 13.7 (221.4) (2.5) 37.4
------------- ------------- ------------- ------------- -------------
Net Change in AUM (111.2) (17.8) (1,233.0) 947.5 (145.7)
Assets under management, beginning of period 2,924.3 2,813.1 2,795.2 1,562.3 2,509.8
------------- ------------- ------------- ------------- -------------
Assets under management, end of period $ 2,813.1 $ 2,795.3 $ 1,562.2 $ 2,509.8 $ 2,364.1
============= ============= ============= ============= =============
TOTAL:
Deposits and reinvestments $ 5,061.1 $ 1,451.7 $ 1,433.9 $ 2,391.4 $ 1,557.9
Redemptions and withdrawals (3,606.5) (3,247.4) (4,899.5) (4,170.4) (3,224.2)
------------- ------------- ------------- ------------- -------------
Net Flows 1,454.6 (1,795.7) (3,465.6) (1,779.0) (1,666.3)
Performance (1,129.6) 797.3 129.7 432.4 1,132.0
Money market funds net change in AUM 5.5 (7.5) (11.4) (15.0) (0.1)
Acquistions (dispositions) / Other (14.1) 90.2 (121.8) (55.5) 241.8
------------- ------------- ------------- ------------- -------------
Net Change in AUM 316.4 (915.7) (3,469.1) (1,417.1) (292.6)
Assets under management, beginning of period 42,908.4 43,224.8 42,309.1 38,840.0 37,422.9
------------- ------------- ------------- ------------- -------------
Assets under management, end of period $ 43,224.8 $ 42,309.1 $ 38,840.0 $ 37,422.9 $ 37,130.3
------------- ------------- ------------- ------------- -------------
* Variable Products Change in AUM (included
in Institutional Products) $ (132.1) $ (45.7) $ (119.2) $ (45.3) $ 27.7
============= ============= ============= ============= =============
19
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT (1)
First Quarter 2006 (unaudited)
($ in millions)
December 31,
YTD March ----------------------------------------------------------
2006 2005 2004 2003 2002
------------- ------------- ------------- ------------- -------------
SEGMENT INCOME
Operating Gain (Loss) $ 10.9 $ 3.5 $ (1.7) $ (5.8) $ (7.4)
Realized Gains (Losses) on Cash and Stock Distributions 0.2 21.9 7.4 4.9 (4.7)
Change in Unrealized Gains (Losses) on Investments Held
in Partnerships (13.3) (10.6) 13.6 37.1 (47.2)
------------- ------------- ------------- ------------- -------------
Equity in Partnership Earnings (Losses),
before income taxes (2.2) 14.8 19.3 36.2 (59.3)
Applicable Income Taxes (Benefit) (0.8) 5.2 6.8 12.7 (20.7)
------------- ------------- ------------- ------------- -------------
Segment Income (Loss) $ (1.4) $ 9.6 $ 12.5 $ 23.5 $ (38.6)
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) $ 9.5 $ 27.6 $ $ 37.7 $ 31.0 $ 42.2
Equity In Earnings (Losses) of Partnerships (2.2) 14.8 19.3 36.2 (59.3)
Distributions (13.0) (68.2) (50.4) (32.2) (41.8)
Sale of Partnership Interests and Transfer to Closed Block (91.5) (52.2)
Realized Loss on Sale of Partnership Interests and
Transfer to Closed Block (13.9) (14.3) (5.0)
------------- ------------- ------------- ------------- -------------
Change in Venture Capital Investments (5.7) (131.2) 6.6 (31.5) (63.9)
Beginning Balance 202.9 202.9 196.3 227.8 291.7
------------- ------------- ------------- ------------- -------------
Ending Balance $ 197.2 $ 71.7 $ 202.9 $ 196.3 $ 227.8
============= ============= ============= ============= =============
(1) In the fourth quarter of 2005, the company secured an agreement to sell
approximately three-quarters of the assets in the Venture Capital segment,
and as a result eliminated the segment effective January 1, 2006.
20
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT (1)
First Quarter 2006 (unaudited)
($ in millions)
2005
----------------------------------------------------------
Quarters ended March June September December
------------- ------------- ------------- -------------
SEGMENT INCOME
Operating Gain (Loss) $ 10.9 $ (3.7) $ (2.9) $ (0.8)
Realized Gains on Cash and Stock Distributions 0.2 7.7 11.3 2.7
Change in Unrealized Gains (Losses) on Investments Held in Partnerships (13.3) (1.3) 4.3 (0.3)
------------- ------------- ------------- -------------
Equity in Partnership Earnings (Losses), before income taxes (2.2) 2.7 12.7 1.6
Applicable Income Taxes (Benefit) (0.8) 1.0 4.4 0.6
------------- ------------- ------------- -------------
Segment Income (Loss) $ (1.4) $ 1.7 $ 8.3 $ 1.0
============= ============= ============ =============
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) $ 9.5 $ 4.2 $ 6.3 $ 7.6
Equity In Earnings (Losses) of Partnerships (2.2) 2.7 12.7 1.6
Distributions (13.0) (14.6) (24.2) (16.4)
Sale of Partnership Interests (91.5)
Realized Loss on Sale of Partnership Interests (13.9)
------------- ------------- ------------- -------------
Change in Venture Capital Investments (5.7) (7.7) (5.2) (112.6)
Beginning Balance 202.9 197.2 189.5 184.3
------------- ------------- ------------- -------------
Ending Balance $ 197.2 $ 189.5 $ 184.3 $ 71.7
============= ============= ============ =============
(1) In the fourth quarter of 2005, the company secured an agreement to sell
approximately three-quarters of the assets in the Venture Capital segment,
and as a result eliminated the segment effective January 1, 2006.
21
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
SEGMENT INCOME 2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
Corporate Investment Income $ 0.6 $ 0.1 $ 0.6 $ 0.4 $ 4.3 $ 1.5
Interest Expense on Indebtedness (12.4) (11.1) (46.6) (40.8) (39.6) (31.4)
Corporate Expenses (5.5) (5.8) (24.3) (18.9) (11.0) (10.4)
Other (0.1) 0.5 0.7 0.2 (1.5) 0.3
------------- ------------- ------------- ------------- ------------- -------------
Segment Loss, before income taxes (17.4) (16.3) (69.6) (59.1) (47.8) (40.0)
Applicable Income Tax Benefit (6.1) (5.7) (26.3) (22.9) (18.8) (29.8)
------------- ------------- ------------- ------------- ------------- -------------
Segment Loss $ (11.3) $ (10.6) $ (43.3) $ (36.2) $ (29.0) $ (10.2)
============= ============= ============= ============= ============= =============
22
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
Corporate Investment Income $ 0.1 $ 0.1 $ 0.4 $ 0.6
Interest Expense on Indebtedness (11.1) (11.4) $ (11.7) (12.4) (12.4)
Corporate Expenses (5.8) (5.2) (6.8) (6.5) (5.5)
Other 0.5 0.1 (0.2) 0.3 (0.1)
------------- ------------- ------------- ------------- -------------
Segment Loss, before income taxes (16.3) (16.4) (18.7) (18.2) (17.4)
Applicable Income Tax Benefit (5.7) (5.9) (6.1) (8.6) (6.1)
------------- ------------- ------------- ------------- -------------
Segment Loss $ (10.6) $ (10.5) $ (12.6) $ (9.6) $ (11.3)
============= ============= ============= ============= =============
23
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
REVENUES
Premiums $ 207.5 $ 226.8 $ 928.7 $ 990.6 $ 1,042.2 $ 1,082.0
Insurance and Investment Product Fees 139.1 129.0 514.7 535.0 500.9 493.8
Broker-dealer Commission and
Distribution Fee Revenues 7.3 6.8 28.7 56.9 81.5 85.0
Net Investment Income 251.2 268.7 1,102.6 1,075.7 1,107.4 940.5
Unrealized Gain on Trading Equity
Securities 85.9
Net Realized Investment Gains (Losses) 33.2 (17.9) 34.2 (0.8) (98.5) (133.9)
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 638.3 613.4 2,608.9 2,743.3 2,633.5 2,467.4
------------- ------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy
Liabilities 333.9 343.3 1,376.7 1,422.2 1,454.0 1,436.1
Policyholder Dividends 106.8 83.8 364.4 404.7 418.8 401.8
Policy Acquisition Cost Amortization 30.0 28.2 132.1 110.2 94.1 59.2
Intangible Asset Impairments 32.5 10.6 66.3
Intangible Asset Amortization 8.0 8.4 33.8 33.8 33.2 32.5
Interest Expense on Indebtedness 12.4 11.1 46.6 40.8 39.6 31.4
Interest Expense on Non-recourse
Collateralized Obligations 4.4 8.9 29.4 33.6 48.9 30.5
Other Operating Expenses 111.4 117.2 477.9 560.8 565.1 613.2
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 639.4 600.9 2,471.5 2,606.1 2,653.7 2,671.0
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations
before Income Taxes, Minority Interest
and equity in undistributed earnings
(losses) of affiliates (1.1) 12.5 137.4 137.2 (20.2) (203.6)
Applicable Income Taxes (Benefit) (2.8) 2.8 27.7 40.5 (18.3) (58.8)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations
before Minority Interest and equity in
undistributed earnings (losses) of
affiliates 1.7 9.7 109.7 96.7 (1.9) (144.8)
Minority Interest in Net Income of
Subsidiaries (0.3) (0.6) (0.4) (0.5)
Equity in undistributed earnings (losses)
of affiliates (10.4) (1.8) 4.6
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations 1.7 9.4 109.1 86.3 (4.1) (140.7)
Discontinued Operations
Income (Loss) from Discontinued Operations 0.7) 0.1 (2.1) (1.3)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) Before Cumulative Effect of
Accounting Changes 1.7 9.4 108.4 86.4 (6.2) (142.0)
Cumulative Effect of Accounting Changes:
Goodwill and Other Intangible Assets (130.3)
------------- ------------- ------------- ------------- ------------- -------------
Net Income (Loss) $ 1.7 $ 9.4 $ 108.4 $ 86.4 $ (6.2) $ (272.3)
============= ============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
24
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
REVENUES
Premiums $ 226.8 $ 229.1 $ 236.6 $ 236.2 $ 207.5
Insurance and Investment Product Fees 129.0 127.4 127.0 131.3 139.1
Broker-dealer Commission and Distribution Fee Revenues 6.8 7.1 7.5 7.3 7.3
Net Investment Income 268.7 268.1 284.1 281.7 251.2
Net Realized Investment Gains (Losses) (17.9) (7.8) 2.2 57.7 33.2
------------- ------------- ------------- ------------- -------------
Total Revenues 613.4 623.9 657.4 714.2 638.3
------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 343.3 340.0 344.4 349.0 333.9
Policyholder Dividends 83.8 83.4 98.6 98.6 106.8
Policy Acquisition Cost Amortization 28.2 9.9 29.0 65.0 30.0
Intangible Asset Impairments 10.6 32.5
Intangible Asset Amortization 8.4 8.8 8.4 8.2 8.0
Interest Expense on Indebtedness 11.1 11.4 11.7 12.4 12.4
Interest Expense on Non-recourse Collateralized Obligations 8.9 10.3 5.5 4.7 4.4
Other Operating Expenses 117.2 127.3 119.8 113.6 111.4
------------- ------------- ------------- ------------- -------------
Total Expenses 600.9 591.1 628.0 651.5 639.4
------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations before Income
Taxes, Minority Interest and equity in undistributed
earnings (losses) of affiliates 12.5 32.8 29.4 62.7 (1.1)
Applicable Income Taxes (Benefit) 2.8 10.2 2.2 12.5 (2.8)
------------- ------------- ------------- ------------- -------------
Income from Continuing Operations before Minority
Interest and equity in undistributed earnings
of affiliates 9.7 22.6 27.2 50.2 1.7
Minority Interest in Net Income of Subsidiaries (0.3) (0.2) (0.1)
------------- ------------- ------------- ------------- -------------
Income from Continuing Operations 9.4 22.4 27.1 50.2 1.7
Discontinued Operations
Loss from Discontinued Operations (0.7)
------------- ------------- ------------- ------------- -------------
Net Income $ 9.4 $ 22.4 $ 26.4 $ 50.2 $ 1.7
============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATING FIRST QUARTER 2006 INCOME STATEMENT
Third Quarter 2005 (unaudited)
($ in millions)
Year-to-Date September 30, 2005
Other Exclusions from
Operating Segments Segments Segment Income
------------------------ ----------- -------------------------------------
Life Corporate Realized
& Asset & Investment Intra-Segment
Consolidated Annuity Management Other Loss Other Eliminations
------------- ----------- ----------- ---------- --------- ---------- -------------
REVENUES
Premiums $ 207.5 $ 207.5
Insurance and Investment Product Fees 139.1 98.1 $ 41.2 $ (0.2)
Broker-dealer commission and
distribution fee revenues 7.3 7.3
Net Investment Income 251.2 241.4 0.3 $ 6.7 2.8
Net Realized Investment Gains 33.2 $ 33.2
------------- ----------- ----------- ---------- --------- ---------- ----------
Total Revenues 638.3 547.0 48.8 6.7 33.2 2.6
------------- ----------- ----------- ---------- --------- ---------- ----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy
Liabilities 333.9 332.0 1.9
Policyholder Dividends 106.8 87.6 19.2
Policy Acquisition Cost Amortization 30.0 32.6 (2.6)
Intangible Asset Impairments 8.0 8.0
Intangible Asset Amortization 32.5 32.5
Interest Expense on Indebtedness 12.4 12.4
Interest Expense on Non-recourse
Collateralized Obligations 4.4 4.4
Other Operating Expenses 111.4 56.5 42.9 5.4 0.1 $ 3.9 2.6
------------- ----------- ----------- ---------- --------- ---------- ----------
Total Expenses 639.4 508.7 83.4 24.1 16.7 3.9 2.6
------------- ----------- ----------- ---------- --------- ---------- ----------
Income (Loss) from
Continuing Operations before Income
Taxes Minority Interest and equity
in undistributed earnings (losses)
of affiliates (1.1) 38.3 (34.6) (17.4) 16.5 (3.9) 0.0
Applicable Income Taxes (Benefit) (2.8) 12.0 (13.4) (6.1) 6.1 (1.4)
------------- ----------- ----------- ---------- --------- ---------- ----------
Income (Loss) from Continuing
Operations before Minority Interest
and equity undistributed earnings
(losses) of affiliates 1.7 26.3 (21.2) (11.3) 10.4 (2.5) 0.0
------------- ----------- ----------- ---------- --------- ---------- ----------
Income (Loss) from Continuing
Operations $ 1.7 $ 26.3 $ (21.2) $ (11.3) $ 10.4 $ (2.5) $ 0.0
============= =========== =========== =========== ========= =========== ==========
26
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Third Quarter 2006 (unaudited)
($ in millions, except par value)
March December 31,
-------------- ----------------------------------------------------------
2006 2005 2004 2003 2002
-------------- ------------- ------------- ------------- -------------
ASSETS:
Available-for-Sale Debt Securities, at fair value $ 13,153.2 $ 13,404.6 $ 13,476.3 $ 13,273.0 $ 11,889.5
Available-for-Sale Equity Securities, at fair value 185.2 181.8 304.3 312.0 385.9
Trading Equity Securities, at fair value 87.3
Mortgage Loans, at unpaid principal balances 114.0 128.6 207.9 284.1 468.8
Policy Loans, at unpaid principal balances 2,273.3 2,245.0 2,196.7 2,241.4 2,195.9
Venture Capital Partnerships, at equity in net assets 117.2 145.1 255.3 234.9 228.6
Affiliate Equity and Debt Securities, at cost plus
equity in undistributed earnings 47.5 134.7
Other Investments 333.6 310.6 371.8 402.0 398.9
-------------- ------------- ------------- ------------- -------------
16,176.5 16,415.7 16,899.6 16,794.9 15,702.3
Available-for-Sale Investments Pledged as Collateral,
at fair value 301.1 304.4 1,278.8 1,350.0 1,358.7
-------------- ------------- ------------- ------------- -------------
Total Investments 16,477.6 16,720.1 18,178.4 18,144.9 17,061.0
Cash and Cash Equivalents 348.9 301.5 435.0 447.9 1,110.5
Deferred Policy Acquisition Costs 1,658.1 1,556.0 1,429.9 1,367.7 1,234.1
Goodwill and Other Intangible Assets 723.0 763.5 735.6 755.0 747.7
Other Assets 754.8 652.9 633.4 760.5 711.4
Separate Account Assets 7,940.4 7,722.2 6,950.3 6,083.2 4,371.2
-------------- ------------- ------------- ------------- -------------
Total Assets $ 27,902.8 $ 27,716.2 $ 28,362.6 $ 27,559.2 $ 25,235.9
============== ============= ============= ============= =============
LIABILITIES:
Policy Liabilities and Accruals $ 13,246.4 $ 13,246.2 $ 13,132.4 $ 13,088.6 $ 12,680.0
Policyholder Deposit Funds 2,863.0 3,060.7 3,492.4 3,642.7 3,395.7
Indebtedness 740.1 751.9 690.8 639.0 644.3
Stock Purchase Contracts 131.9 128.8 137.6
Other Liabilities 575.9 538.2 587.2 557.1 570.8
Non-recourse Collateralized Debt Obligation Liabilities 379.5 389.9 1,355.2 1,472.0 1,609.5
Separate Account Liabilities 7,940.4 7,722.2 6,950.3 6,083.2 4,371.2
-------------- ------------- ------------- ------------- -------------
Total Liabilities and minority interest 25,745.3 25,709.1 26,340.2 25,611.4 23,409.1
-------------- ------------- ------------- ------------- -------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion shares
authorized; 112,560,980 shares outstanding
(March 31, 2006) 1.2 1.1 1.0 1.0 1.0
Additional paid in capital 2,601.5 2,440.3 2,435.2 2,431.4 2,424.4
Deferred Compensation on Restricted Stock Units (4.0) (2.7) (3.6) (3.6)
Accumulated Earnings (Deficit) (191.4) (193.1) (285.7) (355.3) (331.4)
Treasury stock, at cost: 11,313,563 shares
(March 31, 2006) (179.5) (179.5) (182.6) (189.4) (195.7)
Accumulated Other Comprehensive Income (Loss) (70.3) (59.0) 58.1 63.7 (71.5)
-------------- ------------- ------------- ------------- -------------
Total Stockholders' Equity 2,157.5 2,007.1 2,022.4 1,947.8 1,826.8
-------------- ------------- ------------- ------------- -------------
Total Liabilities, Minority Interest and
Stockholders' Equity $ 27,902.8 $ 27,716.2 $ 28,362.6 $ 27,559.2 $ 25,235.9
============== ============= ============= ============= =============
27
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
---------------------------- ---------------------------- ----------------------------
03/31/06 12/31/05 03/31/06 12/31/05 03/31/06 12/31/05
------------- ------------- ------------- ------------- ------------- -------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 8,533.8 $ 8,625.0 $ 6,928.5 $ 7,089.4 $ 1,605.3 $ 1,535.6
BBB 3,580.4 3,795.3 2,329.9 2,487.4 1,250.5 1,307.9
------------- -------------- ------------- ------------ ------------ -----------
Total Investment Grade 12,114.2 12,420.3 9,258.4 9,576.8 2,855.8 2,843.5
BB 765.7 753.0 646.7 647.5 119.0 105.5
B 207.8 168.3 157.7 120.8 50.1 47.5
CCC and Lower 47.0 43.6 27.3 28.0 19.7 15.6
In or Near Default 18.5 19.4 11.3 14.6 7.2 4.8
------------- -------------- ------------- ------------ ------------ -----------
Total Debt Securities $ 13,153.2 $ 13,404.6 $ 10,101.4 $ 10,387.7 $ 3,051.8 $ 3,016.9
============= ============== ============= ============ ============ ===========
% Below Investment Grade 7.9% 7.3% 8.3% 7.8% 6.4% 5.7%
- ------------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT AND
EQUITY SECURITIES
As of 03/31/06 Total Outside Closed Block Closed Block
---------------------------- ---------------------------- ---------------------------
Gains Losses Gains Losses Gains Losses
------------- -------------- ------------- ------------ ------------ -----------
Total Debt Securities $ 309.0 $ (253.9) $ 94.9 $ (131.1) $ 214.1 $ (122.8)
Equity Securities 21.1 (2.6) 6.2 (1.0) 14.9 (1.6)
------------- -------------- ------------- ------------ ------------ -----------
Total Unrealized Gains (Losses) 330.1 (256.5) 101.1 (132.1) 229.0 (124.4)
------------- -------------- ------------- ------------ ------------ -----------
Applicable PDO 229.0 (124.4) 229.0 (124.4)
Applicable DAC (Credit) 47.1 (69.5) 47.1 (69.5)
Applicable Deferred Income Tax (Benefit) 18.9 (21.9) 18.9 (21.9)
------------- -------------- ------------- ------------ ------------ -----------
Total Offsets to Net Unrealized Gains
(Losses) 295.0 (215.8) 66.0 (91.4) 229.0 (124.4)
------------- -------------- ------------- ------------ ------------ -----------
Net Unrealized Gains (Losses) $ 35.1 $ (40.7) $ 35.1 $ (40.7) $ 0.0 $ 0.0
============= ============== ============= ============ ============ ===========
$ (5.6) $ (5.6) $ 0.0
============= ============= ==============
(1) Excludes debt and equity securities pledged as collateral.
28
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1)
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
Quarters ended 2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 195.1 $ 197.3 $ 804.6 $ 772.1 $ 765.5 $ 730.8
Equity Securities 0.5 2.1 7.5 4.5 4.6 4.2
Mortgages 0.9 6.4 20.2 22.5 32.6 40.4
Policy Loans 41.1 40.7 165.8 167.1 171.7 171.8
Venture Capital (2.4) (2.8) 23.8 25.5 49.1 (59.3)
Cash & Cash Equivalents 3.3 1.7 7.6 4.9 7.0 11.9
Other (2) 10.3 15.5 47.8 47.8 35.0 18.9
------------- ------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 248.8 260.9 1,077.3 1,044.4 1,065.5 918.7
------------- ------------- ------------- ------------- ------------- -------------
Investment Expenses 2.1 3.1 8.6 9.8 10.0 9.2
------------- ------------- ------------- ------------- ------------- -------------
Total Net Investment Income $ 246.7 $ 257.8 $ 1,068.7 $ 1,034.6 $ 1,055.5 $ 909.5
============= ============= ============= ============= ============= =============
ANNUALIZED YIELDS
Debt Securities 6.1% 6.0% 6.2% 5.9% 6.0% 6.3%
Equity Securities 1.1% 2.3% 3.0% 1.3% 1.4% 1.3%
Mortgages 3.0% 14.1% 15.3% 11.0% 11.2% 8.8%
Policy Loans 7.6% 7.8% 7.7% 7.9% 8.0% 8.2%
Venture Capital -8.2% -4.3% 12.8% 10.9% 23.0% -22.8%
Cash & Cash Equivalents 4.1% 1.7% 5.2% 1.1% 1.3% 1.4%
Other (2) 12.8% 19.7% 16.4% 7.5% 10.5% 3.6%
------------- ------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 6.2% 6.3% 6.6% 6.1% 6.4% 5.7%
------------- ------------- ------------- ------------- ------------- -------------
Investment Expenses 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
------------- ------------- ------------- ------------- ------------- -------------
Total Net Investment Income 6.1% 6.2% 6.6% 6.1% 6.6% 5.6%
============= ============= ============= ============= ============= =============
(1) Excludes debt and equity securities pledged as collateral.
(2) Includes real estate, affiliates and other invested assets.
29
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 197.3 $ 199.4 $ 201.0 $ 206.9 $ 195.1
Equity Securities 2.1 3.0 1.6 0.8 0.5
Mortgages 6.4 4.2 3.9 5.7 0.9
Policy Loans 40.7 40.6 42.2 42.3 41.1
Venture Capital (2.8) 3.3 16.5 6.8 (2.4)
Cash & Cash Equivalents 1.7 1.8 1.6 2.5 3.3
Other (2) 15.5 5.3 13.0 14.0 10.3
------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 260.9 257.6 279.8 279.0 248.8
------------- ------------- ------------- ------------- -------------
Investment Expenses 3.1 2.0 1.3 2.2 2.1
------------- ------------- ------------- ------------- -------------
Total Net Investment Income $ 257.8 $ 255.6 $ 278.5 $ 276.8 $ 246.7
============= ============= ============= ============= =============
ANNUALIZED YIELDS
Debt Securities 6.0% 6.0% 6.1% 6.3% 6.1%
Equity Securities 2.3% 4.0% 2.2% 1.3% 1.1%
Mortgages 14.1% 10.2% 10.3% 17.5% 3.0%
Policy Loans 7.8% 7.7% 7.9% 7.9% 7.6%
Venture Capital -4.3% 5.4% 30.0% 14.7% -8.2%
Cash & Cash Equivalents 1.7% 1.7% 2.8% 6.9% 4.1%
Other (2) 19.7% 6.4% 16.6% 19.5% 12.8%
------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 6.3% 6.1% 6.8% 6.9% 6.2%
------------- ------------- ------------- ------------- -------------
Investment Expenses 0.1% 0.0% 0.0% 0.1% 0.1%
------------- ------------- ------------- ------------- -------------
Total Net Investment Income 6.2% 6.1% 6.7% 6.8% 6.1%
============= ============= ============= ============= =============
(1) Excludes debt and equity securities pledged as collateral.
(2) Includes real estate, affiliates and other invested assets.
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
First Quarter 2006 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2006 2005 2005 2004 2003 2002
------------- ------------- ------------- ------------- ------------- -------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (0.9) $ (12.2) $ (31.2) $ (15.5) $ (76.1) $ (114.3)
Equity Security Impairments (2.1) (1.5) (4.3) (9.8)
Mortgage Loan Impairments (0.8) (12.6) (4.1) (0.6)
Affiliated Equity Securities (96.9)
Venture Capital Partnerships Impairments (4.6) (5.1)
Real Estate Impairments (6.6)
Debt and Equity Securities Pledged as
Collateral Impairments (0.3) (1.2) (16.6) (8.3) (34.9)
Other Invested Asset Impairments (3.3) (9.9) (22.0)
------------- ------------- ------------- ------------- ------------- -------------
Total Impairment Losses (0.9) (12.5) (35.3) (49.5) (210.8) (186.7)
------------- ------------- ------------- ------------- ------------- -------------
Debt Security Net Transaction
Gains (Losses) 16.1 (7.2) (18.0) 28.4 64.7 48.4
Equity Security Net Transaction
Gains (Losses) 3.5 (1.0) 2.9 14.6 49.2 2.1
Venture Capital Net Investment
Gains (Losses) (13.9) (9.7)
Mortgage Loan Net Transaction
Gains (Losses) 3.2 0.2 (1.3) 0.2
Affiliate Equity Security Transaction GL 10.0 3.7 3.7
Real Estate Net Transaction Gains (Losses) 0.1 (0.3) (0.6) (0.8) (0.2) 4.0
Settlement of HRH Stock Purchase Contracts 86.3
Other Invested Asset Net Transactions
Gains (Losses) 2.2 (1.3) 6.6 6.3 9.6 (1.9)
Debt and Equity Securities Pledged as
Collateral (1.0) 0.7 2.5
------------- ------------- ------------- ------------- ------------- -------------
Total Net Transactions Gains 34.1 (5.4) 69.5 48.7 112.3 52.8
------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses) 33.1 (17.9) 34.2 (0.8) (98.5) (133.9)
------------- ------------- ------------- ------------- ------------- -------------
Closed Block Applicable PDO (Reduction) 19.2 (4.4) (12.4) 3.7 (5.9) (40.3)
Applicable Deferred Acquisition
Costs (Credit) (2.6) (4.8) 17.6 (0.4) (4.1) (7.2)
Applicable Deferred Income Tax (Credit) 6.2 (3.2) 9.2 3.1 (35.6) (20.8)
------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses)
Included in Net Income $ 10.4 $ (5.5) $ 19.8 $ (7.2) $ (52.9) $ (65.6)
============= ============= ============= ============= ============= =============
31
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
First Quarter 2006 (unaudited)
($ in millions)
2005 2006
---------------------------------------------------------- -------------
Quarters ended March June September December March
------------- ------------- ------------- ------------- -------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (12.2) $ (8.5) $ (4.3) $ (6.2) $ (0.9)
Equity Security Impairments (2.1)
Mortgage Loan Impairments (0.8)
Affiliated Equity Securities
Debt and Equity Securities Pledged as Collateral
Impairments (0.3) (0.7) (0.2)
Other Invested Asset Impairments
------------- ------------- ------------- ------------- -------------
Total Impairment Losses (12.5) (10.0) (4.5) (8.3) (0.9)
------------- ------------- ------------- ------------- -------------
Debt Security Net Transaction Gains (Losses) (7.2) 0.1 (2.6) (8.3) 16.1
Equity Security Net Transaction Gains (Losses) (1.0) 0.4 2.4 1.1 3.5
Venture Capital Net Investment Gains (Losses) (13.9)
Mortgage Loan Net Transaction Gains (Losses) 3.2
Affiliate Equity Security Transactions Gains (Losses) 3.7 10.0
Real Estate Net Transaction Gains (Losses) (0.3) (0.3) (0.2) 0.2 0.1
Settlement of HRH Stock Purchase Contracts 86.3
Other Invested Asset Net Transactions Gains (Losses) (1.3) 2.5 6.0 (0.6) 2.2
Debt and Equity Securities Pledged as Collateral 0.7 (0.5) 1.1 1.2 (1.0)
------------- ------------- ------------- ------------- -------------
Total Net Transactions Gains (5.4) 2.1 6.7 66.0 34.1
------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses) (17.9) (7.9) 2.3 57.7 33.1
============= ============= ============= ============= =============
Closed Block Applicable PDO (Reduction) (4.4) (6.7) 4.2 (5.5) 19.2
Applicable Deferred Acquisition Costs (Credit) (4.8) 1.0 (4.5) 25.9 (2.6)
Applicable Deferred Income Tax (Credit) (3.2) (0.3) 0.5 12.2 6.2
------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses) Included in
Net Income $ (5.5) $ (1.9) $ 2.1 $ 25.1 $ 10.4
============= ============= ============= ============= =============
32