EXHIBIT 99.1
[LOGO]PHOENIX(R)
Financial Supplement
The Phoenix Companies, Inc.
December 31, 2006
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
WALL STREET COVERAGE TRANSFER AGENT AND REGISTRAR
FIRM ANALYST For information or assistance regarding your
A.G. Edwards & Sons, Inc. J. Jeffrey Hopson account, please contact our transfer agent and
Citigroup Keith Walsh registrar:
Credit Suisse First Boston (CSFB) Tom Gallagher The Phoenix Companies, Inc. C/O The Bank of
Fox-Pitt, Kelton John Nadel New York, Shareholder Relations,
Friedman, Billings, Ramsey & Co. Stewart Johnson P.O. Box 11258, New York, NY 10286-1258
JP Morgan Jimmy Bhullar Toll-free: 1-800-490-4258 TTY 1-888-269-5221
Keefe Bruyette & Woods, Inc. Jukka Lipponen Fax: 1-212-815-2777,
Langen McAlenney Robert Glasspiegel e-mail: pnxshareholders@bankofny.com
Lehman Brothers Eric Berg Web: www.stockbny.com
Merrill Lynch Edward A. Spehar
Morgan Stanley Ken Zerbe
UBS Andrew Kligerman
FOR MORE INFORMATION
To receive additional information, including financial
supplements and Securities and Exchange Commission filings
along with access to other shareholder services, visit the
Investor Relations Section on our Web site at
PhoenixWealthManagement.com or contact our Investor Relations
Department at:
SHAREHOLDER INFORMATION
SECURITY LISTINGS
The common stock of The Phoenix Companies, Inc. is The Phoenix Companies, Inc.
traded on the New York Stock Exchange (NYSE) under the Investor Relations
symbol "PNX." Our 7.45 percent bond is traded on the NYSE One American Row
under the symbol "PFX." P.O. Box 5056, Hartford, CT 06102-5056
Phone: 1-860-403-7100
Fax: 1-860-403-7880
e-mail: pnx.ir@phoenixwm.com
For more information on our products and services, call your Phoenix
representative or visit our Web site at PhoenixWealthManagement.com.
In addition to financial measures presented in accordance with Generally
Accepted Accounting Principles ("GAAP"), Phoenix uses non-GAAP financial
measures such as total segment income, total segment income per share, segment
income, pre-tax segment income and EBITDA in evaluating its financial
performance. Net income and net income per share are the most directly
comparable GAAP measures. Phoenix's non-GAAP financial measures should not be
considered as substitutes for net income and net income per share. Therefore,
investors should evaluate both GAAP and non-GAAP financial measures when
reviewing Phoenix's performance. A reconciliation of the net income to Phoenix's
non-GAAP financial measures is set forth on Pages 2-3 of this document.
Investors should note that Phoenix's calculation of these measures may differ
from similar measures used by other companies.
Total segment income, and components of and measures derived from total segment
income, are internal performance measures used by Phoenix in the management of
its operations, including its compensation plans and planning processes. In
addition, management believes that these measures provide investors with
additional insight into the underlying trends in Phoenix's operations.
Total segment income represents income from continuing operations, which is a
GAAP measure, before realized investment gains and losses, and certain other
items.
o Net realized investment gains and losses are excluded from total segment
income because their size and timing are frequently subject to management's
discretion.
o Certain other items may be excluded from total segment income because we
believe they are not indicative of overall operating trends and are items
that management believes are non-recurring and material and which result
from a business restructuring, a change in regulatory environment, or other
unusual circumstances.
Within its Asset Management segment, management also considers earnings before
interest, taxes, depreciation and amortization ("EBITDA"). Management believes
EBITDA provides additional perspective on the operating efficiency and
profitability of the Asset Management segment. EBITDA represents pre-tax segment
income before depreciation and amortization of goodwill and intangibles.
Total segment return on equity ("ROE") is an internal performance measure used
by Phoenix in the management of its operations, including its compensation plans
and planning processes. In addition, management believes that this measure
provides investors with a useful metric to assess the effectiveness of Phoenix's
use of capital. ROE is calculated by dividing (i) total segment income, by (ii)
average equity, excluding accumulated OCI, FIN 46-R and discontinued operations.
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
DECEMBER 2006 (UNAUDITED)
TABLE OF CONTENTS
-----------------
FINANCIAL HIGHLIGHTS.......................................................... 1
FINANCIAL HIGHLIGHTS.......................................................... 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 FOURTH 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
Fourth Quarter 2006 (unaudited)
(amount in millions, except per share data)
BALANCE SHEET INFORMATION
For the Period Ended: December 31,
----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
General Account Invested Assets $ 16,107.8 $ 16,717.2 $ 17,334.6 $ 17,242.8 $ 16,812.8
Separate Account Assets 9,458.6 7,722.2 6,950.3 6,083.2 4,371.2
Total Assets 28,973.2 27,716.2 28,362.6 27,559.2 25,235.9
Indebtedness 685.4 751.9 690.8 639.0 644.3
Total Stockholders' Equity 2,236.1 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 2,364.6 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) $ 2,251.8 $ 2,028.6
Debt to Total Capitalization 23.5% 27.3% 25.5% 24.7% 26.1%
Book Value Per Share $ 19.67 $ 21.10 $ 21.32 $ 20.62 $ 19.43
Book Value Per Share, excluding SFAS 115 and
other accumulated OCI $ 20.33 $ 21.72 $ 20.70 $ 19.96 $ 20.19
Book Value Per Share, excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 20.80 $ 22.28 $ 21.27 $ 20.39 $ 20.64
Period-end Common Shares Outstanding (2) 113.7 95.1 94.9 94.4 94.0
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
INDEBTEDNESS:
Surplus Notes $ 174.0 $ 204.2 $ 204.1 $ 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 0.5 2.0 8.0 10.3 15.6
Bank Credit Facility 25.0 25.0
Other 57.2 67.0
-------------- -------------- -------------- -------------- --------------
Total Indebtedness $ 685.4 $ 751.9 $ 690.8 $ 639.0 $ 644.3
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE
INSURANCE COMPANY (2)
Capital, Surplus and Surplus Notes $ 932.4 $ 885.5 $ 814.6 $ 762.9 $ 861.0
Asset Valuation Reserve (AVR) 187.8 210.7 213.6 198.6 147.0
-------------- -------------- -------------- -------------- --------------
Capital, Surplus, Surplus Notes and AVR $ 1,120.2 $ 1,096.2 $ 1,028.2 $ 961.5 $ 1,008.0
============== ============== ============== ============== ==============
Policyholder Dividend Liability $ 348.9 $ 356.1 $ 403.3 $ 408.5 $ 403.0
Interest Maintenance Reserve $ (44.3) $ (23.1) $ (31.3) $ (30.2) $ (2.0)
Statutory Gain From Operations $ 131.6 $ 106.2 $ 35.1 $ 69.7 $ 44.5
Statutory Net Income $ 162.0 $ 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. December 2006 amounts are preliminary.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
Fourth Quarter 2006 (unaudited)
(amount in millions, except per share data)
INCOME STATEMENT SUMMARY December 31,
---------------------------------------------------------------------
2006 2005 2004 2003 2002
------------ ------------ ------------ ------------ ------------
SEGMENT INCOME
Life Insurance (1) $ 209.7 $ 180.5 $ 130.1 $ 100.4 $ 99.8
Annuities (1) 4.0 12.0 12.7 (1.0) (19.5)
------------ ------------ ------------ ------------ ------------
Life and Annuity Segment 213.7 192.5 142.8 99.4 80.3
Asset Management Segment (28.6) (10.5) 0.1 (8.7) (69.9)
Venture Capital Segment (2) 14.8 19.3 36.2 (59.3)
Corporate and Other Segment (60.3) (69.6) (59.1) (47.8) (40.0)
------------ ------------ ------------ ------------ ------------
TOTAL SEGMENT INCOME (LOSS), BEFORE INCOME TAXES 124.8 127.2 103.1 79.1 (88.9)
Applicable Income Taxes (Benefit) 36.6 25.5 22.5 21.8 (28.5)
------------ ------------ ------------ ------------ ------------
TOTAL SEGMENT INCOME (LOSS) 88.2 101.7 80.6 57.3 (60.4)
Net Realized Investment Gains (Losses) 21.8 25.5 5.7 3.2 (39.3)
Realized Gains (Losses) - Investments Pledged
as Collateral Consolidated Under FIN 46-R (1.0) 1.3 (12.9) (2.4) (26.3)
Realized and Unrealized Gains (Losses) on
Equity Investment in Aberdeen (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 (9.1) (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 99.9 109.1 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 99.9 108.4 86.4 (6.2) (142.0)
Cumulative Effect of Accounting changes (130.3)
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) $ 99.9 $ 108.4 $ 86.4 $ (6.2) $ (272.3)
============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
BASIC
Weighted-Average Shares Outstanding 110.9 95.0 94.7 94.2 97.9
------------ ------------ ------------ ------------ ------------
Total Segment Income (Loss) Per Share $ 0.79 $ 1.07 $ 0.85 $ 0.61 $ (0.62)
Net Income (Loss) Per Share $ 0.90 $ 1.14 $ 0.91 $ (0.07) $ (2.78)
DILUTED
Weighted-Average Shares Outstanding and
Dilutive Potential Common Shares (3) 113.1 102.4 100.8 96.6 97.9
------------ ------------ ------------ ------------ ------------
Total Segment Income (Loss) Per Share $ 0.78 $ 0.99 $ 0.80 $ 0.59 $ (0.62)
Net Income (Loss) Per Share $ 0.88 $ 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.
INCOME STATEMENT
Fourth Quarter 2006 (unaudited)
(amount in millions, except per share data)
SEGMENT INCOME 2005 2006
------------------------------------------------- ----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
Life Insurance (1) $ 38.0 $ 68.3 $ 38.1 $ 36.1 $ 32.6 $ 42.1 $ 51.2 $ 83.8
Annuities (1) 6.0 (9.6) 6.9 8.7 5.7 0.5 6.0 (8.2)
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
Life and Annuity Segment 44.0 58.7 45.0 44.8 38.3 42.6 57.2 75.6
Asset Management Segment (1.7) 0.1 (10.1) 1.2 (34.6) 1.3 6.6 (1.9)
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) (13.9) (14.3) (14.7)
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
TOTAL SEGMENT INCOME (LOSS),
BEFORE INCOME TAXES 23.8 45.1 28.9 29.4 (13.7) 30.0 49.5 59.0
Applicable Income Taxes (Benefit) 7.0 14.2 2.5 1.8 (7.5) 9.6 11.8 22.7
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
TOTAL SEGMENT INCOME (LOSS) 16.8 30.9 26.4 27.6 (6.2) 20.4 37.7 36.3
Net Realized Investment
Gains (Losses) 1.1 (0.6) 1.1 23.9 11.4 2.9 (2.0) 9.5
Realized Gains (Losses) -
Investments Pledged as Collateral
Consolidated Under FIN 46-R 0.4 (1.2) 0.9 1.2 (1.0) 0.1 0.1 (0.2)
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) (3.8) (1.5) (1.3)
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 9.4 22.4 27.1 50.2 1.7 19.6 34.3 44.3
Loss from Discontinued Operations (0.7)
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
NET INCOME $ 9.4 $ 22.4 $ 26.4 $ 50.2 $ 1.7 $ 19.6 $ 34.3 $ 44.3
=========== =========== ============ =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
EARNINGS PER SHARE
BASIC
Weighted-Average Shares
Outstanding 94.9 95.0 95.1 95.1 103.6 112.7 113.6 113.7
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
Total Segment Income (Loss)
Per Share $ 0.18 $ 0.32 $ 0.28 $ 0.29 $ (0.06) $ 0.18 $ 0.33 $ 0.32
Net Income Per Share $ 0.10 $ 0.24 $ 0.28 $ 0.53 $ 0.02 $ 0.17 $ 0.30 $ 0.39
DILUTED
Weighted-Average Shares
Outstanding and Dilutive
Potential Common Shares 102.3 101.1 102.4 103.5 106.2 115.9 116.0 115.4
----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
Total Segment Income (Loss)
Per Share $ 0.16 $ 0.31 $ 0.26 $ 0.27 $ (0.06) $ 0.18 $ 0.32 $ 0.31
Net Income Per Share $ 0.09 $ 0.22 $ 0.26 $ 0.48 $ 0.02 $ 0.17 $ 0.30 $ 0.38
-----------
(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
Fourth Quarter 2006 (unaudited)
($ in millions)
SEGMENT INCOME December 31,
---------------------------------------------------------------
2006 2005 2004 2003 2002
----------- ----------- ----------- ----------- -----------
Variable Universal Life $ 52.7 $ 69.6 $ 35.7 $ 35.0 $ 35.9
Universal Life (1) 53.3 47.9 34.4 21.7 26.3
Other Life and Annuity (2) (3) 2.7 1.5 1.6 0.1 (0.7)
----------- ----------- ----------- ----------- -----------
TOTAL, NON-TRADITIONAL LIFE 108.7 119.0 71.7 56.8 61.5
----------- ----------- ----------- ----------- -----------
Traditional Life, excluding Closed Block 31.2 (11.7) (18.3) (36.5) (35.1)
Traditional Life, Closed Block 69.8 73.2 76.7 80.1 73.4
----------- ----------- ----------- ----------- -----------
TOTAL TRADITIONAL LIFE (3) 101.0 61.5 58.4 43.6 38.3
----------- ----------- ----------- ----------- -----------
TOTAL, LIFE INSURANCE 209.7 180.5 130.1 100.4 99.8
Annuities (3) 4.0 12.0 12.7 (1.0) (19.5)
----------- ----------- ----------- ----------- -----------
SEGMENT INCOME, BEFORE INCOME TAXES 213.7 192.5 142.8 99.4 80.3
Allocated Income Taxes (4) 67.9 51.3 36.4 31.1 28.0
----------- ----------- ----------- ----------- -----------
SEGMENT INCOME $ 145.8 $ 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.
LIFE AND ANNUITY EARNINGS SUMMARY
Fourth Quarter 2006 (unaudited)
($ in millions)
SEGMENT INCOME 2005 2006
----------------------------------------------- -----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Variable Universal Life $ 9.1 $ 37.8 $ 13.9 $ 8.8 $ 8.5 $ 9.2 $ 11.0 $ 24.0
Universal Life (1) 10.3 23.1 7.6 7.0 7.9 11.4 17.1 16.9
Other Life and Annuity (2) (3) 0.4 0.5 (0.0) 0.5 0.4 0.9 0.6 0.8
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL, NON-TRADITIONAL LIFE 19.8 61.4 21.5 16.3 16.8 21.5 28.7 41.7
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Traditional Life, excluding Closed
Block (0.1) (11.4) (1.7) 1.5 (1.7) 3.2 5.1 24.6
Traditional Life, Closed Block 18.3 18.3 18.3 18.3 17.4 17.4 17.4 17.5
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL TRADITIONAL LIFE (3) 18.2 6.9 16.6 19.8 15.8 20.6 22.5 42.1
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL, LIFE INSURANCE 38.0 68.3 38.1 36.1 32.6 42.1 51.2 83.8
Annuities (3) 6.0 (9.6) 6.9 8.7 5.7 0.5 6.0 (8.2)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
SEGMENT INCOME, BEFORE INCOME TAXES 44.0 58.7 45.0 44.8 38.3 42.6 57.2 75.6
Allocated Income Taxes 14.0 19.1 8.6 9.6 12.0 13.0 15.1 27.8
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
SEGMENT INCOME $ 30.0 $ 39.6 $ 36.4 $ 35.2 $ 26.3 $ 29.6 $ 42.1 $ 47.8
=========== =========== =========== =========== =========== =========== =========== ===========
(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
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
----------------------------------------------------------------------------------------
2006 2005 2004 2003 2002
----------------- ----------------- ----------------- ----------------- ----------------
PRE-TAX INCOME
Fees $ 27.6 $ 32.5 $ 29.6 $ 30.1 $ 31.4
Cost of Insurance (COI) 77.8 76.7 74.6 72.1 66.4
Interest Earned 9.2 6.3 5.9 5.6 7.0
Surrender Charges 6.7 7.1 6.9 6.9 4.4
----------------- ----------------- ----------------- ----------------- ----------------
TOTAL REVENUES 121.3 122.6 117.0 114.7 109.2
----------------- ----------------- ----------------- ----------------- ----------------
Net Death and Disability Benefits 31.9 28.5 30.5 23.2 22.9
Interest Credited 4.8 4.6 3.7 3.6 3.7
DAC Amortized 8.4 (4.4) 22.2 20.8 16.6
Operating Expenses 23.5 24.3 24.9 32.1 30.1
----------------- ----------------- ----------------- ----------------- ----------------
TOTAL EXPENSES 68.6 53.0 81.3 79.7 73.3
----------------- ----------------- ----------------- ----------------- ----------------
OPERATING INCOME BEFORE TAX $ 52.7 $ 69.6 $ 35.7 $ 35.0 $ 35.9
================= ================= ================= ================= ================
- ---------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 13.5 $ 13.6 $ 16.3 $ 21.4 $ 36.6
Controllable Expenses and Other 29.6 26.8 34.0 44.6 61.6
----------------- ----------------- ----------------- ----------------- ----------------
TOTAL CURRENT EXPENSES 43.1 40.4 50.3 66.0 98.2
Deferred Acquisition Costs (19.6) (16.1) (25.4) (33.9) (68.1)
----------------- ----------------- ----------------- ----------------- ----------------
OPERATING EXPENSES $ 23.5 $ 24.3 $ 24.9 $ 32.1 $ 30.1
================= ================= ================= ================= ================
- ---------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 182.5 $ 217.9 $ 245.5 $ 353.4 $ 465.7
Surrenders (118.4) (94.2) (75.4) (69.4) (37.6)
----------------- ----------------- ----------------- ----------------- ----------------
NET SALES 64.1 123.7 170.1 284.0 428.1
Deaths (4.7) (3.6) (2.2) (1.4) (1.8)
Interest Credited 259.9 141.5 170.0 262.7 (150.6)
Fees (30.4) (30.3) (31.0) (36.4) (35.8)
Cost of Insurance (75.8) (74.6) (72.4) (69.8) (66.4)
----------------- ----------------- ----------------- ----------------- ----------------
CHANGE IN FUM 213.1 156.7 234.5 439.1 173.5
Beginning Balance 2,099.8 1,943.1 1,708.6 1,269.5 1,096.0
----------------- ----------------- ----------------- ----------------- ----------------
ENDING FUND BALANCE $ 2,312.9 $ 2,099.8 $ 1,943.1 $ 1,708.6 $ 1,269.5
================= ================= ================= ================= ================
Life Insurance In Force (1) $ 24,164.6 $ 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
Fourth Quarter 2006 (unaudited)
($ in millions)
2005 2006
----------------------------------------------- ----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
PRE-TAX INCOME
Fees $ 7.4 $ 10.3 $ 6.9 $ 8.0 $ 7.2 $ 7.5 $ 7.2 $ 5.7
Cost of Insurance (COI) 19.0 19.1 19.2 19.4 19.6 19.4 19.3 19.5
Interest Earned 1.5 1.4 2.0 1.3 1.6 1.9 3.1 2.6
Surrender Charges 1.9 1.7 1.6 1.8 2.1 1.8 1.6 1.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL REVENUES 29.8 32.5 29.7 30.5 30.5 30.6 31.2 29.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Death and Disability Benefits 8.9 8.3 3.9 7.3 8.3 7.3 7.5 8.8
Interest Credited 1.2 1.1 1.1 1.1 1.0 1.0 1.4 1.4
DAC Amortized 4.3 (21.1) 4.4 8.0 6.8 6.8 6.0 (11.2)
Operating Expenses 6.3 6.4 6.4 5.3 5.9 6.3 5.3 6.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL EXPENSES 20.7 (5.3) 15.8 21.7 22.0 21.4 20.2 5.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING INCOME BEFORE TAX $ 9.1 $ 37.8 $ 13.9 $ 8.8 $ 8.5 $ 9.2 $ 11.0 $ 24.0
=========== =========== =========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 3.6 $ 3.4 $ 3.3 $ 3.4 $ 2.9 $ 3.4 $ 3.5 $ 3.7
Controllable Expenses and Other 6.8 7.4 6.9 5.6 6.8 8.7 6.5 7.6
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT EXPENSES 10.4 10.8 10.2 9.0 9.7 12.1 10.0 11.3
Deferred Acquisition Costs (4.1) (4.4) (3.8) (3.7) (3.8) (5.8) (4.7) (5.3)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING EXPENSES $ 6.3 $ 6.4 $ 6.4 $ 5.3 $ 5.9 $ 6.3 $ 5.3 $ 6.0
=========== =========== =========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 63.3 $ 49.0 $ 43.1 $ 62.5 $ 46.0 $ 52.8 $ 36.5 $ 47.2
Surrenders (27.4) (19.6) (24.1) (23.1) (19.2) (50.1) (22.3) (26.8)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
NET SALES 35.9 29.4 19.0 39.4 26.8 2.7 14.2 20.4
Deaths (0.9) (0.7) (0.2) (1.8) (2.7) (0.8) (0.8) (0.4)
Interest Credited (9.3) 22.0 79.0 49.8 101.0 (16.0) 61.0 113.9
Fees (7.5) (7.7) (7.3) (7.8) (7.1) (8.1) (7.2) (8.0)
Cost of Insurance (18.4) (18.6) (18.7) (18.9) (18.9) (18.9) (18.8) (19.2)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CHANGE IN FUM (0.2) 24.4 71.8 60.7 99.1 (41.1) 48.4 106.7
Beginning Balance 1,943.1 1,942.9 1,967.3 2,039.1 2,099.8 2,198.9 2,157.8 2,206.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
ENDING FUND BALANCE $ 1,942.9 $ 1,967.3 $ 2,039.1 $ 2,099.8 $ 2,198.9 $ 2,157.8 $ 2,206.2 $ 2,312.9
=========== =========== =========== =========== =========== =========== =========== ===========
Life Insurance In Force (1) $25,189.9 $25,041.0 $24,930.2 $24,767.7 $24,652.2 $24,257.5 $24,164.2 $24,164.6
=========== =========== =========== =========== =========== =========== =========== ===========
(1) 2006 and 2005 face amounts updated to include the term rider face amounts
for all variable universal life products.
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
-----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
PRE-TAX INCOME
Fees $ 27.2 $ 17.9 $ 19.1 $ 17.3 $ 11.9
Cost of Insurance (COI) 184.9 109.9 90.7 78.9 71.6
Interest Earned 116.5 108.7 100.4 98.2 108.4
Surrender Charges 3.7 3.2 3.2 2.5 3.9
-------------- -------------- -------------- -------------- --------------
TOTAL REVENUES 332.3 239.7 213.4 196.9 195.8
-------------- -------------- -------------- -------------- --------------
Net Death and Disability Benefits 98.0 61.8 58.4 51.4 39.5
Interest Credited 79.6 74.5 74.6 78.0 85.7
DAC Amortized 55.5 17.9 20.3 17.7 16.7
Operating Expenses 45.9 37.6 25.7 28.1 27.6
-------------- -------------- -------------- -------------- --------------
TOTAL EXPENSES 279.0 191.8 179.0 175.2 169.5
-------------- -------------- -------------- -------------- --------------
OPERATING INCOME BEFORE TAX $ 53.3 $ 47.9 $ 34.4 $ 21.7 $ 26.3
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 104.9 $ 51.1 $ 24.9 $ 28.2 $ 15.2
Controllable Expenses and Other 176.2 96.5 64.3 74.8 52.6
-------------- -------------- -------------- -------------- --------------
TOTAL CURRENT EXPENSES 281.1 147.6 89.2 103.0 67.8
Deferred Acquisition Costs (235.2) (110.0) (63.5) (74.9) (40.2)
-------------- -------------- -------------- -------------- --------------
OPERATING EXPENSES $ 45.9 $ 37.6 $ 25.7 $ 28.1 $ 27.6
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 417.1 $ 297.8 $ 229.4 $ 217.8 $ 149.3
Surrenders (84.7) (94.1) (126.2) (118.6) (107.4)
-------------- -------------- -------------- -------------- --------------
NET SALES 332.4 203.7 103.2 99.2 41.9
Deaths (20.5) (22.3) (16.9) (19.4) (25.0)
Interest Credited 79.6 78.7 74.6 78.0 85.8
Fees (36.6) (26.8) (23.5) (24.9) (16.7)
Cost of Insurance (184.9) (109.9) (90.7) (78.9) (71.6)
-------------- -------------- -------------- -------------- --------------
CHANGE IN FUM 170.0 123.4 46.7 54.0 14.4
Beginning Balance 1,734.1 1,610.7 1,564.0 1,510.0 1,495.6
-------------- -------------- -------------- -------------- --------------
ENDING FUND BALANCE $ 1,904.1 $ 1,734.1 $ 1,610.7 $ 1,564.0 $ 1,510.0
============== ============== ============== ============== ==============
Life Insurance In Force $ 20,402.1 $ 16,303.0 $ 14,103.7 $ 12,830.3 $ 10,476.7
============== ============== ============== ============== ==============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE / INTEREST SENSITIVE
Fourth Quarter 2006 (unaudited)
($ in millions)
2005 2006
PRE-TAX INCOME ----------------------------------------------- ----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Fees $ 4.7 $ 1.2 $ 4.9 $ 7.1 $ 8.0 $ 5.4 $ 7.0 $ 6.8
Cost of Insurance (COI) 24.0 24.9 27.6 33.4 42.0 44.5 46.5 51.9
Interest Earned 25.4 26.2 28.6 28.5 27.0 29.1 29.7 30.7
Surrender Charges 0.5 0.7 0.9 1.1 1.0 0.3 1.7 0.7
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL REVENUES 54.6 53.0 62.0 70.1 78.0 79.3 84.9 90.1
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Death and Disability Benefits 13.9 13.5 16.1 18.1 27.6 23.9 15.8 30.7
Interest Credited 18.5 18.4 18.9 18.8 19.4 19.8 19.9 20.5
DAC Amortized 6.3 (10.2) 9.1 12.8 9.6 13.7 21.9 10.3
Operating Expenses 5.6 8.2 10.3 13.4 13.5 10.5 10.2 11.7
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL EXPENSES 44.3 29.9 54.4 63.1 70.1 67.9 67.8 73.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING INCOME BEFORE TAX $ 10.3 $ 23.1 $ 7.6 $ 7.0 $ 7.9 $ 11.4 $ 17.1 $ 16.9
=========== =========== =========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 5.4 $ 7.1 $ 12.6 $ 26.0 $ 34.7 $ 14.1 $ 21.6 $ 34.5
Controllable Expenses and Other 13.8 16.2 23.1 43.3 51.6 32.2 35.9 56.5
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT EXPENSES 19.2 23.3 35.7 69.3 86.3 46.3 57.5 91.0
Deferred Acquisition Costs (13.6) (15.1) (25.4) (55.9) (72.8) (35.8) (47.3) (79.3)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING EXPENSES $ 5.6 $ 8.2 $ 10.3 $ 13.4 $ 13.5 $ 10.5 $ 10.2 $ 11.7
=========== =========== =========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 54.9 $ 57.7 $ 73.9 $ 111.3 $ 135.5 $ 73.7 $ 88.7 $ 119.2
Surrenders (23.3) (24.7) (27.4) (18.7) (22.5) (21.3) (22.4) (18.5)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
NET SALES 31.6 33.0 46.5 92.6 113.0 52.4 66.3 100.7
Deaths (4.6) (7.0) (5.8) (4.9) (6.8) (5.4) (5.1) (3.2)
Interest Credited 18.5 18.4 18.8 23.0 19.4 19.8 19.9 20.5
Fees (4.9) (5.2) (7.1) (9.6) (11.4) (6.5) (8.2) (10.5)
Cost of Insurance (24.0) (24.9) (27.6) (33.4) (42.0) (44.5) (46.4) (52.0)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CHANGE IN FUM 16.6 14.3 24.8 67.7 72.2 15.8 26.5 55.5
Beginning Balance 1,610.7 1,627.3 1,641.6 1,666.4 1,734.1 1,806.3 1,822.1 1,848.6
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
ENDING FUND BALANCE $ 1,627.3 $ 1,641.6 $ 1,666.4 $ 1,734.1 $ 1,806.3 $ 1,822.1 $ 1,848.6 $ 1,904.1
=========== =========== =========== =========== =========== =========== =========== ===========
Life Insurance In Force $14,328.7 $14,583.3 $15,126.3 $16,303.0 $17,667.4 $18,217.0 $19,025.8 $20,402.1
=========== =========== =========== =========== =========== =========== =========== ===========
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
Fourth Quarter 2006 (unaudited)
($ in millions)
LIFE INSURANCE SALES December 31,
-----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
WHOLESALER CHANNEL
Variable Universal Life $ 16.7 $ 16.1 $ 18.2 $ 30.1 $ 62.5
Universal Life/Interest Sensitive 221.9 104.4 47.5 67.5 36.9
Term Life 20.3 16.4 15.3 19.2 15.1
Participating Whole Life 0.6 4.8
-------------- -------------- -------------- -------------- --------------
Life Insurance Annualized Premium (1) 258.9 136.9 81.0 117.4 119.3
============== ============== ============== ============== ==============
Variable Universal Life 8.6 6.4 10.8 20.1 25.1
Universal Life/Interest Sensitive 61.8 49.2 53.2 61.6 29.9
Participating Whole Life 0.8
-------------- -------------- -------------- -------------- --------------
Life Insurance Single Premium 70.4 55.6 64.0 81.7 55.8
============== ============== ============== ============== ==============
Variable Universal Life 25.3 22.5 29.0 50.2 87.6
Universal Life/Interest Sensitive 283.7 153.6 100.7 129.1 66.8
Term Life 20.3 16.4 15.3 19.2 15.1
Participating Whole Life 0.6 5.6
-------------- -------------- -------------- -------------- --------------
Total Wholesaler Life Insurance Premium (2) $ 329.3 $ 192.5 $ 145.0 $ 199.1 $ 175.1
============== ============== ============== ============== ==============
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized
and single) $ 33.5 $ 46.5 $ 60.1 $ 149.5 $ 222.5
Annuity 1,020.2 773.8 152.6 394.9 142.6
-------------- -------------- -------------- -------------- --------------
Total Private Placement Life and
Annuity Deposits $ 1,053.7 $ 820.3 $ 212.7 $ 544.4 $ 365.1
============== ============== ============== ============== ==============
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 4,055.5 $ 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
Fourth Quarter 2006 (unaudited)
($ in millions)
2005 2006
LIFE INSURANCE SALES ----------------------------------------------- -----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
WHOLESALER CHANNEL
Variable Universal Life $ 6.2 $ 3.5 $ 3.1 $ 3.2 $ 2.8 $ 4.9 $ 3.2 $ 5.8
Universal Life/Interest Sensitive 10.8 14.1 22.5 56.9 83.5 30.2 42.4 65.8
Term Life 3.8 3.8 3.9 5.0 5.5 4.5 4.7 5.6
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Life Insurance Annualized
Premium (1) 20.8 21.4 29.5 65.1 91.8 39.6 50.3 77.2
=========== =========== =========== =========== =========== =========== =========== ===========
Variable Universal Life 0.8 1.6 1.8 2.3 1.1 2.1 2.8 2.6
Universal Life/Interest Sensitive 8.5 11.4 11.6 17.7 18.0 9.1 15.5 19.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Life Insurance Single Premium 9.3 13.0 13.4 20.0 19.1 11.2 18.3 21.8
=========== =========== =========== =========== =========== =========== =========== ===========
Variable Universal Life 7.0 5.1 4.9 5.5 3.9 7.0 6.0 8.4
Universal Life/Interest Sensitive 19.3 25.5 34.2 74.6 101.5 39.3 57.9 85.0
Term Life 3.8 3.8 3.8 5.0 5.5 4.5 4.7 5.6
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Wholesaler Life Insurance
Premium (2) $ 30.1 $ 34.4 $ 42.9 $ 85.1 $ 110.9 $ 50.8 $ 68.6 $ 99.0
=========== =========== =========== =========== =========== =========== =========== ===========
PRIVATE PLACEMENT LIFE AND
ANNUITY DEPOSITS
Variable Universal Life
(annualized and single) $ 14.3 $ 11.3 $ 2.3 $ 18.6 $ 8.5 $ 17.3 $ 1.7 $ 6.0
Annuity 487.6 11.9 11.0 263.3 3.4 42.6 33.1 941.1
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Private Placement Life and
Annuity Deposits $ 501.9 $ 23.2 $ 13.3 $ 281.9 $ 11.9 $ 59.9 $ 34.8 $ 947.1
=========== =========== =========== =========== =========== =========== =========== ===========
PRIVATE PLACEMENT FUNDS UNDER
MANAGEMENT $ 2,414.5 $ 2,343.1 $ 2,431.6 $ 2,776.4 $ 2,783.9 $ 2,912.2 $ 2,989.5 $ 4,055.5
=========== =========== =========== =========== =========== =========== =========== ===========
(1) Annualized Premium represents first year premiums on an annual basis.
(2) Total Premium represents Annualized and Single premiums.
11
THE PHOENIX COMPANIES, INC.
ANNUITIES
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
-----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
PRE-TAX INCOME
Fees $ 66.9 $ 65.4 $ 63.8 $ 57.2 $ 57.4
Surrender Charges 6.3 7.0 5.8 7.4 6.6
Interest earned on GIA and Required Interest 131.7 165.1 158.0 150.1 109.1
-------------- -------------- -------------- -------------- --------------
TOTAL REVENUES 204.9 237.5 227.6 214.7 173.1
-------------- -------------- -------------- -------------- --------------
Mortality Cost 5.8 6.6 8.9 4.4 12.0
DAC Amortized 66.6 62.6 35.7 26.5 35.1
Interest Credited 87.4 112.1 123.2 133.0 99.4
Operating Expenses 41.1 44.2 47.1 51.7 46.1
-------------- -------------- -------------- -------------- --------------
TOTAL EXPENSES 200.9 225.5 214.9 215.6 192.6
-------------- -------------- -------------- -------------- --------------
OPERATING INCOME (LOSS) BEFORE TAX $ 4.0 $ 12.0 $ 12.7 $ (1.0) $ (19.5)
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 39.7 $ 38.2 $ 42.6 $ 51.1 $ 81.4
Controllable Expenses and Other 40.8 37.9 48.2 66.1 67.3
-------------- -------------- -------------- -------------- --------------
TOTAL CURRENT EXPENSES 80.5 76.1 90.8 117.2 148.7
Deferred Acquisition Costs (39.4) (31.9) (43.7) (65.5) (102.6)
-------------- -------------- -------------- -------------- --------------
OPERATING EXPENSES $ 41.1 $ 44.2 $ 47.1 $ 51.7 $ 46.1
============== ============== ============== ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 1,443.9 $ 1,113.5 $ 671.2 $ 1,428.3 $ 2,258.4
Surrenders (1,596.1) (1,180.9) (803.1) (865.6) (754.4)
-------------- -------------- -------------- -------------- --------------
NET SALES (152.2) (67.4) (131.9) 562.7 1,504.0
Deaths (87.0) (80.2) (81.6) (71.4) (40.6)
Interest Credited 949.6 545.8 628.2 895.2 (330.6)
Fees (70.9) (63.0) (59.8) (57.7) (58.8)
-------------- -------------- -------------- -------------- --------------
CHANGE IN FUM 639.5 335.2 354.9 1,328.8 1,074.0
Beginning Balance 8,038.1 7,702.9 7,348.0 6,019.2 4,945.2
-------------- -------------- -------------- -------------- --------------
ENDING FUND BALANCE $ 8,677.6 $ 8,038.1 $ 7,702.9 $ 7,348.0 $ 6,019.2
============== ============== ============== ============== ==============
VA Funds in Guaranteed Interest Accounts (1) $ 1,030.8 $ 1,553.8 $ 1,939.1 $ 2,067.4 $ 2,159.3
============== ============== ============== ============== ==============
Fixed Annuities (1) $ 720.5 $ 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
Fourth Quarter 2006 (unaudited)
($ in millions)
2005 2006
Quarters ended ----------------------------------------------- -----------------------------------------------
March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
PRE-TAX INCOME
Fees $ 16.5 $ 16.1 $ 16.3 $ 16.5 $ 16.6 $ 16.8 $ 16.3 $ 17.2
Surrender Charges 1.9 2.0 1.3 1.8 1.5 1.7 1.6 1.5
Interest earned on GIA and
Required Interest 41.6 39.9 41.0 42.6 35.5 34.3 30.8 31.1
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL REVENUES 60.0 58.0 58.6 60.9 53.6 52.8 48.7 49.8
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Mortality Cost 1.1 2.2 0.6 2.7 0.3 1.4 1.9 2.2
DAC Amortized 13.6 24.7 12.3 12.0 11.2 16.3 12.0 27.1
Interest Credited 29.2 28.5 27.7 26.7 25.1 24.2 19.2 18.9
Operating Expenses 10.1 12.2 11.1 10.8 11.3 10.4 9.6 9.8
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL EXPENSES 54.0 67.6 51.7 52.2 47.9 52.3 42.7 58.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING INCOME (LOSS)
BEFORE TAX $ 6.0 $ (9.6) $ 6.9 $ 8.7 $ 5.7 $ 0.5 $ 6.0 $ (8.2)
=========== =========== =========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 9.8 $ 9.2 $ 9.7 $ 9.5 $ 9.9 $ 10.2 $ 9.1 $ 10.5
Controllable Expenses
and Other 8.5 9.9 9.7 9.8 10.1 9.7 9.6 11.4
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT EXPENSES 18.3 19.1 19.4 19.3 20.0 19.9 18.7 21.9
Deferred Acquisition Costs (8.2) (6.9) (8.3) (8.5) (8.7) (9.5) (9.1) (12.1)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING EXPENSES $ 10.1 $ 12.2 $ 11.1 $ 10.8 $ 11.3 $ 10.4 $ 9.6 $ 9.8
=========== =========== =========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT
Deposits $ 580.9 $ 93.5 $ 92.5 $ 346.6 $ 96.3 $ 147.1 $ 136.7 $ 1,063.8
Surrenders (227.5) (337.4) (294.3) (321.7) (490.7) (556.7) (306.1) (242.6)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
NET SALES 353.4 (243.9) (201.8) 24.9 (394.4) (409.6) (169.4) 821.2
Deaths (22.3) (18.0) (18.2) (21.7) (22.6) (23.6) (21.4) (19.4)
Interest Credited (1.0) 85.6 278.9 182.3 319.2 80.9 206.7 342.8
Fees (16.3) (15.6) (15.4) (15.7) (15.8) (16.2) (16.0) (22.9)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CHANGE IN FUM 313.8 (191.9) 43.5 169.8 (113.6) (368.5) (0.1) 1,121.7
Beginning Balance 7,702.9 8,016.7 7,824.8 7,868.3 8,038.1 7,924.5 7,556.0 7,555.9
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
ENDING FUND BALANCE $ 8,016.7 $ 7,824.8 $ 7,868.3 $ 8,038.1 $ 7,924.5 $ 7,556.0 $ 7,555.9 $ 8,677.6
=========== =========== =========== =========== =========== =========== =========== ===========
VA Funds in Guaranteed
Interest Accounts (1) $ 1,873.8 $ 1,796.4 $ 1,706.1 $ 1,553.8 $ 1,355.0 $ 1,195.6 $ 1,087.8 $ 1,030.8
=========== =========== =========== =========== =========== =========== =========== ===========
Fixed Annuities (1) $ 1,165.9 $ 1,153.2 $ 1,203.2 $ 1,011.4 $ 1,005.2 $ 781.4 $ 740.9 $ 720.5
=========== =========== =========== =========== =========== =========== =========== ===========
(1) Amounts are included in the annuities funds under management table above.
13
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
-----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 364.2 $ 353.0 $ 332.5 $ 329.3 $ 310.3
Universal Life 533.9 354.7 262.0 219.2 163.1
Variable Annuities 275.0 281.3 299.0 291.8 267.9
Fixed Annuities 20.3 38.8 46.0 45.2 26.3
Participating 559.0 544.2 577.0 576.3 573.1
Offset for Unrealized Investment (Gains) Losses 0.3 (16.0) (86.6) (94.1) (106.6)
-------------- -------------- -------------- -------------- --------------
Total $ 1,752.7 $ 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 $ 238.8 $ 335.5 $ 441.1 $ 616.9 $ 1,148.4
Death Benefit in Excess of Fund Value,
Net of Reinsurance 51.4 82.1 123.5 183.0 234.9
Statutory Reserve, Net of Reinsurance 13.2 13.8 15.0 17.3 15.8
GAAP Reserve, Net of Reinsurance $ 10.7 $ 10.7 $ 9.1 $ 7.8 $ 8.7
==============
14
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
Fourth Quarter 2006 (unaudited)
($ in millions)
Quarters ended 2005 2006
----------------------------------------------- -----------------------------------------------
March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 332.3 $ 357.8 $ 357.2 $ 353.0 $ 349.9 $ 348.9 $ 347.6 $ 364.2
Universal Life 269.2 294.6 311.0 354.7 417.7 439.6 465.2 533.9
Variable Annuities 294.9 281.3 280.6 281.3 281.7 276.4 275.2 275.0
Fixed Annuities 44.7 40.4 39.0 38.8 38.2 36.6 35.1 20.3
Participating 579.9 570.2 573.3 544.2 548.1 551.1 554.8 559.0
Offset for Unrealized Investment
Gains and Losses (26.7) (83.6) (29.0) (16.0) 22.5 57.5 6.6 0.3
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total $ 1,494.3 $ 1,460.7 $ 1,532.1 $ 1,556.0 $ 1,658.1 $ 1,710.1 $ 1,684.5 $ 1,752.7
=========== =========== =========== =========== =========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED
MINIMUM DEATH BENEFITS
Death Benefit in Excess of
Fund Value $ 459.3 $ 425.0 $ 371.1 $ 335.5 $ 291.6 $ 311.4 $ 274.7 $ 238.8
Death Benefit in Excess of
Fund Value, Net of Reinsurance 130.1 114.0 93.1 82.1 66.5 75.6 63.4 51.4
Statutory Reserve, Net of Reinsurance 15.8 15.0 14.1 13.8 13.2 14.0 13.7 13.2
GAAP Reserve, Net of Reinsurance $ 9.3 $ 9.6 $ 9.8 $ 10.7 $ 9.3 $ 10.5 $ 10.6 $ 10.7
===========
15
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
SEGMENT INCOME -----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
Investment Management Fees $ 154.1 $ 182.1 $ 219.0 $ 205.5 $ 219.2
Mutual Funds - Ancillary Fees (1) 49.4 41.1 38.8 35.5 38.7
Other Revenue 5.3 4.9 7.2 9.3 10.2
-------------- -------------- -------------- -------------- --------------
Total Revenues 208.8 228.1 265.0 250.3 268.1
-------------- -------------- -------------- -------------- --------------
Employment Expenses 89.4 103.9 132.6 129.6 134.9
Distribution & Admin Expenses (2) 39.3 34.3 32.3 28.6 29.9
Other Operating Expenses (1) (2) 45.8 52.1 53.6 58.1 63.5
Amortization of Intangibles 32.0 33.2 33.8 33.2 32.5
Intangible Asset Impairments 32.5 10.6 66.3
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 239.0 234.1 252.3 249.5 327.1
-------------- -------------- -------------- -------------- --------------
Management Income (Loss) (30.2) (6.0) 12.7 0.8 (59.0)
Other Income - Net 1.6 2.2 1.7 2.5 1.0
Minority Interest (6.7) (14.3) (12.0) (11.9)
-------------- -------------- -------------- -------------- --------------
Segment Income (Loss), before income taxes (28.6) (10.5) 0.1 (8.7) (69.9)
Applicable Income Taxes (Benefit) (10.7) (4.7) 2.3 (3.3) (6.0)
-------------- -------------- -------------- -------------- --------------
Segment Loss $ (17.9) $ (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 and are included in Distribution & Admin Expenses as of
the 2nd Quarter 2006. All prior periods have been conformed to the current
presentation.
(2) Distribution & Admin Expenses are comprised of commissions, finders fees,
distribution costs and third party fund accounting costs. These had
previously been reported as a component of Other Operating Expenses.
16
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
Fourth Quarter 2006 (unaudited)
($ in millions)
Quarters ended
2005 2006
SEGMENT INCOME ----------------------------------------------- -----------------------------------------------
March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Investment Management Fees $ 49.5 $ 46.6 $ 46.7 $ 39.3 $ 36.5 $ 37.5 $ 42.0 $ 38.1
Mutual Funds - Ancillary Fees 10.0 10.2 10.4 10.5 10.7 11.6 14.3 12.8
Other Revenue 1.1 1.6 1.3 1.0 1.3 0.8 1.9 1.3
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 60.6 58.4 58.4 50.8 48.5 49.9 58.2 52.2
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Employment Expenses 29.2 27.3 26.9 20.5 22.5 19.9 23.1 23.9
Distribution & Admin Expenses (1) 8.4 8.2 8.9 8.8 8.6 8.9 10.0 11.8
Other Operating Expenses (1) 13.5 13.1 12.5 13.0 11.8 11.7 11.1 11.2
Amortization of Intangibles 8.4 8.3 8.4 8.1 8.0 8.5 7.7 7.8
Intangible Asset Impairments 10.6 32.5
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Operating Expenses 59.5 56.9 67.3 50.4 83.4 49.0 51.9 54.7
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Management Income (Loss) 1.1 1.5 (8.9) 0.4 (34.9) 0.9 6.3 (2.5)
Other Income - Net 0.4 0.6 0.4 0.8 0.3 0.4 0.3 0.6
Minority Interest (3.2) (2.0) (1.6)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Segment Income (Loss), before
income taxes (1.7) 0.1 (10.1) 1.2 (34.6) 1.3 6.6 (1.9)
Applicable Income Taxes (Benefit) (0.5) 0.1 (4.5) 0.2 (13.4) 0.6 2.3 (0.2)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Segment Income (Loss) $ (1.2) $ 0.0 $ (5.6) $ 1.0 $ (21.2) $ 0.7 $ 4.3 $ (1.7)
=========== =========== =========== =========== =========== =========== =========== ===========
(1) Distribution & Admin Expenses are comprised of commissions, finders fees,
distribution costs and third party fund accounting costs. These had
previously been reported as a component of Other Operating Expenses.
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
-----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
RETAIL PRODUCTS:
Managed Accounts
- ----------------
Deposits and reinvestments $ 1,141.2 $ 1,760.3 $ 2,109.9 $ 2,268.3 $ 4,421.1
Redemptions and withdrawals (4,297.5) (5,722.8) (5,203.0) (2,656.6) (2,716.3)
-------------- -------------- -------------- -------------- --------------
Net Flows (3,156.3) (3,962.5) (3,093.1) (388.3) 1,704.8
Performance 593.9 (62.5) 950.3 1,537.5 (3,278.2)
Acquisitions (dispositions) / Other 71.0 (158.1) 7,244.3
-------------- -------------- -------------- -------------- --------------
Net Change in AUM (2,491.4) (4,183.1) (2,142.8) 1,149.2 5,670.9
Assets under management, beginning of period 9,332.5 13,515.6 15,658.4 14,509.2 8,838.3
-------------- -------------- -------------- -------------- --------------
Assets under management, end of period $ 6,841.1 $ 9,332.5 $ 13,515.6 $ 15,658.4 $ 14,509.2
============== ============== ============== ============== ==============
Mutual Funds
- ------------
Deposits and reinvestments $ 2,567.5 $ 2,030.3 $ 1,673.2 $ 1,489.2 $ 1,213.2
Redemptions and withdrawals (2,828.6) (2,443.9) (2,004.5) (1,683.6) (1,983.9)
-------------- -------------- -------------- -------------- --------------
Net Flows (261.1) (413.6) (331.3) (194.4) (770.7)
Performance 1,522.2 184.0 805.9 1,588.8 (2,018.9)
Money market funds net change in AUM (1,382.8) (28.4) (28.9) (45.2) (4.4)
Acquisitions (dispositions) / Other 9,838.3 120.0 105.7 (80.6) 54.6
-------------- -------------- -------------- -------------- --------------
Net Change in AUM 9,716.6 (137.9) 551.4 1,268.6 (2,739.4)
Assets under management, beginning of period 12,147.2 12,285.1 11,733.6 10,465.0 13,204.4
-------------- -------------- -------------- -------------- --------------
Assets under management, end of period $ 21,863.8 $ 12,147.2 $ 12,285.0 $ 11,733.6 $ 10,465.0
============== ============== ============== ============== ==============
INSTITUTIONAL PRODUCTS:
Deposits and reinvestments $ 1,609.2 $ 5,545.1 $ 2,885.2 $ 3,230.7 $ 3,419.3
Redemptions and withdrawals (3,504.4) (6,599.1) (5,389.2) (3,505.3) (4,630.8)
-------------- -------------- -------------- -------------- --------------
Net Flows (1,895.2) (1,054.0) (2,504.0) (274.6) (1,211.5)
Performance 1,089.2 367.3 1,140.5 2,333.0 (2,539.6)
Acquisitions (dispositions) / Other (2) (332.6) (63.4) 234.3 (76.0) 11.5
-------------- -------------- -------------- -------------- --------------
Net Change in AUM (1,138.6) (750.1) (1,129.2) 1,982.4 (3,739.6)
Assets under management, beginning of period 13,433.4 14,183.5 15,312.7 13,330.3 17,069.9
-------------- -------------- -------------- -------------- --------------
Assets under management, end of period $ 12,294.8 $ 13,433.4 $ 14,183.5 $ 15,312.7 $ 13,330.3
============== ============== ============== ============== ==============
STRUCTURED FINANCE PRODUCTS:
Deposits and reinvestments $ 2,423.5 $ 1,002.3 $ 1.7 $ 1.1 $ 1,193.3
Redemptions and withdrawals (1,141.7) (1,157.9) (659.2) (303.1) (244.6)
-------------- -------------- -------------- -------------- --------------
Net Flows 1,281.8 (155.6) (657.5) (302.0) 948.7
Performance 171.5 (258.9) 26.0 327.0 (28.8)
-------------- -------------- -------------- -------------- --------------
Net Change in AUM 1,453.3 (414.5) (631.5) 25.0 919.8
Assets under management, beginning of period 2,509.8 2,924.3 3,555.8 3,530.8 2,610.9
-------------- -------------- -------------- -------------- --------------
Assets under management, end of period $ 3,963.1 $ 2,509.8 $ 2,924.3 $ 3,555.8 $ 3,530.8
============== ============== ============== ============== ==============
TOTAL:
Deposits and reinvestments $ 7,741.4 $ 10,338.0 $ 6,670.0 $ 6,989.3 $ 10,246.9
Redemptions and withdrawals (11,772.2) (15,923.7) (13,255.9) (8,148.6) (9,575.6)
-------------- -------------- -------------- -------------- --------------
Net Flows (4,030.8) (5,585.7) (6,585.9) (1,159.3) 671.3
Performance 3,376.8 229.9 2,922.7 5,786.3 (7,865.5)
Money market funds net change in AUM (1,382.8) (28.4) (28.9) (45.2) (4.4)
Acquisitions (dispositions) / Other 9,576.7 (101.4) 340.0 (156.6) 7,310.4
-------------- -------------- -------------- -------------- --------------
Net Change in AUM 7,539.9 (5,485.6) (3,352.1) 4,425.2 111.8
Assets under management, beginning of period 37,422.9 42,908.5 46,260.5 41,835.3 41,723.5
-------------- -------------- -------------- -------------- --------------
Assets under management, end of period $ 44,962.8 $ 37,422.9 $ 42,908.4 $ 46,260.5 $ 41,835.3
============== ============== ============== ============== ==============
* Variable Products Change in AUM (included
in Institutional Products) $ 106.5 $ (342.3) $ 211.6 $ 200.4 $ (686.5)
============== ============== ============== ============== ==============
Money Market balances (1) $ 5,701.1 $ 101.4 $ 129.8 $ 158.6 $ 203.7
============== ============== ============== ============== ==============
(1) Money Market balances included in Mutual Funds above.
(2) Effective for the 4th quarter of 2006, "Other" includes the net change in
AUM during the quarter of institutional cash management accounts. This
treatment is consistent with the treatment of money market mutual funds.
18
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
Fourth Quarter 2006 (unaudited)
($ in millions)
Quarters ended 2005 2006
----------------------------------------------- -----------------------------------------------
March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
RETAIL PRODUCTS:
Managed Accounts:
- -----------------
Deposits and reinvestments $ 508.1 $ 446.0 $ 488.6 $ 317.6 $ 329.1 $ 316.2 $ 216.4 $ 279.4
Redemptions and withdrawals (1,499.8) (1,192.8) (1,406.0) (1,624.2) (1,465.9) (1,339.1) (969.6) (522.9)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows (991.7) (746.8) (917.4) (1,306.6) (1,136.8) (1,022.9) (753.1) (243.5)
Performance (527.9) 55.2 126.1 284.0 461.5 (347.7) 169.9 310.2
Acquisitions (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) (1,370.6) (583.2) 66.7
Assets under management,
beginning of period 13,515.6 11,996.0 10,883.0 10,355.1 9,332.5 8,728.2 7,357.6 6,777.4
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Assets under management,
end of period $11,996.0 $10,883.0 $10,355.1 $ 9,332.5 $ 8,728.2 $ 7,357.6 $ 6,774.4 $ 6,841.1
=========== =========== =========== =========== =========== =========== =========== ===========
Mutual Funds:
- -------------
Deposits and reinvestments $ 515.3 $ 535.2 $ 559.2 $ 420.7 $ 640.4 $ 417.3 $ 729.4 $ 780.4
Redemptions and withdrawals (702.0) (527.7) (568.0) (646.3) (620.8) (611.9) (881.5) (714.5)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows (186.7) 7.5 (8.8) (225.6) 19.6 (194.6) (152.1) 66.0
Performance (310.3) 340.2 134.1 20.1 349.4 (174.4) 575.9 771.4
Money market funds net change in AUM 5.5 (7.5) (11.4) (15.0) (0.1) (276.0) (1,169.4) 62.7
Acquisitions (dispositions) / Other 1.4 140.5 9.4 (31.2) 185.0 9,824.4 (20.9) (150.3)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Change in AUM (490.1) 480.7 123.3 (251.7) 553.9 9,179.4 (766.5) 749.8
Assets under management,
beginning of period 12,285.0 11,794.9 12,275.6 12,398.9 12,147.2 12,701.1 21,880.5 21,114.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Assets under management,
end of period $11,794.9 $12,275.6 $12,398.9 $12,147.2 $12,701.1 $21,880.5 $21,114.0 $21,863.8
=========== =========== =========== =========== =========== =========== =========== ===========
INSTITUTIONAL PRODUCTS:
Deposits and reinvestments $ 4,037.2 $ 470.3 $ 385.1 $ 652.5 $ 574.6 $ 238.8 $ 277.7 $ 518.0
Redemptions and withdrawals (1,341.7) (1,495.2) (1,912.9) (1,849.3) (940.6) (1,467.5) (440.1) (656.2)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows 2,695.5 (1,024.9) (1,527.8) (1,196.8) (366.0) (1,228.7) (162.4) (138.2)
Performance (242.7) 388.2 90.9 130.8 283.7 (65.6) 526.4 344.8
Acquisitions (dispositions) / Other(2) (15.5) 371.1 (394.6) (24.3) (14.2) (114.8) (41.2) (162.4)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Change in AUM 2,437.3 (265.6) (1,831.5) (1,090.3) (96.5) (1,409.1) 322.8 44.2
Assets under management,
beginning of period 14,183.5 16,620.8 16,355.2 14,523.7 13,433.4 13,336.9 11,927.8 12,250.6
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Assets under management,
end of period $16,620.8 $16,355.2 $14,523.7 $13,433.4 $13,336.9 $11,927.8 $12,250.6 $12,294.8
=========== =========== =========== =========== =========== =========== =========== ===========
STRUCTURED FINANCE PRODUCTS:
Deposits and reinvestments $ 0.5 $ 0.2 $ 1.0 $ 1,000.6 $ 13.8 $ 233.5 $ 1,676.2 $ 500.0
Redemptions and withdrawals (63.0) (31.7) (1,012.6) (50.6) (196.9) (468.1) (158.0) (318.7)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows (62.5) (31.5) (1,011.6) 950.0 (183.1) (234.6) 1,518.3 181.3
Performance (48.7) 13.7 (221.4) (2.5) 37.4 14.4 64.6 55.0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Change in AUM (111.2) (17.8) (1,233.0) 947.5 (145.7) (220.2) 1,582.9 236.3
Assets under management,
beginning of period 2,924.3 2,813.1 2,795.3 1,562.3 2,509.8 2,364.1 2,143.9 3,726.8
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Assets under management,
end of period $ 2,813.1 $ 2,795.3 $ 1,562.3 $ 2,509.8 $ 2,364.1 $ 2,143.9 $ 3,726.8 $ 3,963.1
=========== =========== =========== =========== =========== =========== =========== ===========
TOTAL:
Deposits and reinvestments $ 5,061.1 $ 1,451.7 $ 1,433.9 $ 2,391.4 $ 1,557.9 $ 1,205.8 $ 2,899.8 $ 2,077.9
Redemptions and withdrawals (3,606.5) (3,247.4) (4,899.5) (4,170.4) (3,224.2) (3,886.6) (2,449.1) (2,212.3)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Flows 1,454.6 (1,795.7) (3,465.6) (1,779.0) (1,666.3) (2,680.8) 450.7 (134.4)
Performance (1,129.6) 797.3 129.7 432.4 1,132.0 (573.3) 1,336.7 1,481.4
Money market funds net change in AUM 5.5 (7.5) (11.4) (15.0) (0.1) (276.0) (1,169.4) 62.7
Acquisitions (dispositions) / Other (14.1) 90.2 (121.8) (55.5) 241.8 9,709.6 (62.1) (312.6)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Change in AUM 316.4 (915.7) (3,469.1) (1,417.1) (292.6) 6,179.5 555.9 1,097.1
Assets under management,
beginning of period 42,908.4 43,224.8 42,309.1 38,840.0 37,422.9 37,130.3 43,309.8 43,865.7
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Assets under management,
end of period $43,224.8 $42,309.1 $38,840.0 $37,422.9 $37,130.3 $43,309.8 $43,865.7 $44,962.8
=========== =========== =========== =========== =========== =========== =========== ===========
* Variable Products Change in AUM
(included in Institutional
Products) $ (132.1) $ (45.7) $ (119.2) $ (45.3) $ 27.7 $ (188.5) $ 43.5 $ 223.8
=========== =========== =========== =========== =========== =========== =========== ===========
Money Market balances (1) $ 135.3 $ 127.8 $ 116.4 $ 101.4 $ 101.4 $ 6,807.8 $ 5,638.4 $ 5,701.1
=========== =========== =========== =========== =========== =========== =========== ===========
(1) Money Market balances included in Mutual Funds above.
(2) Effective for the 4th quarter of 2006, "Other" includes the net change in
AUM during the quarter of institutional cash management accounts. This
treatment is consistent with the treatment of money market mutual funds.
19
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT (1)
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
-----------------------------------------------
2005 2004 2003 2002
----------- ----------- ----------- -----------
SEGMENT INCOME
Operating Gain (Loss) $ 3.5 $ (1.7) $ (5.8) $ (7.4)
Realized Gains (Losses) on Cash and Stock Distributions 21.9 7.4 4.9 (4.7)
Change in Unrealized Gains (Losses) on Investments Held in Partnerships (10.6) 13.6 37.1 (47.2)
----------- ----------- ----------- -----------
Equity in Partnership Earnings (Losses), before income taxes 14.8 19.3 36.2 (59.3)
Applicable Income Taxes (Benefit) 5.2 6.8 12.7 (20.7)
----------- ----------- ----------- -----------
Segment Income (Loss) $ 9.6 $ 12.5 $ 23.5 $ (38.6)
=========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
Contributions (Dollars Invested) $ 27.6 $ 37.7 $ 31.0 $ 42.2
Equity In Earnings (Losses) of Partnerships 14.8 19.3 36.2 (59.3)
Distributions (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 (131.2) 6.6 (31.5) (63.9)
Beginning Balance 202.9 196.3 227.8 291.7
----------- ----------- ----------- -----------
Ending Balance $ 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)
Fourth Quarter 2006 (unaudited)
($ in millions)
Quarters ended 2005
-----------------------------------------------
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
Fourth Quarter 2006 (unaudited)
($ in millions)
December 31,
-----------------------------------------------------------------------------------
SEGMENT INCOME 2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
Corporate Investment Income $ 4.6 $ (0.8) $ 0.4 $ 4.3 $ 1.5
Interest Expense on Indebtedness (49.2) (46.6) (40.8) (39.6) (31.4)
Corporate Expenses (17.3) (24.6) (18.9) (11.0) (10.4)
Other 1.6 2.4 0.2 (1.5) 0.3
-------------- -------------- -------------- -------------- --------------
Segment Loss, before income taxes (60.3) (69.6) (59.1) (47.8) (40.0)
Applicable Income Tax Benefit (20.6) (26.3) (22.9) (18.8) (29.8)
-------------- --------------- -------------- -------------- --------------
Segment Loss $ (39.7) $ (43.3) $ (36.2) $ (29.0) $ (10.2)
============== =============== ============== ============== ==============
22
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
Fourth Quarter 2006 (unaudited)
($ in millions)
2005 2006
----------------------------------------------- -----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Corporate Investment Income $ (0.7) $ 0.3 $ (0.6) $ 0.2 $ 0.2 $ 0.8 $ 2.2 $ 1.4
Interest Expense on Indebtedness (11.1) (11.4) (11.7) (12.4) (12.4) (12.3) (12.1) (12.4)
Corporate Expenses (5.8) (5.2) (6.7) (6.9) (5.5) (3.2) (4.4) (4.2)
Other 1.3 (0.1) 0.3 0.9 0.3 0.8 0.5
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Segment Loss, before income taxes (16.3) (16.4) (18.7) (18.2) (17.4) (13.9) (14.3) (14.7)
Applicable Income Tax Benefit (5.7) (5.9) (6.1) (8.6) (6.1) (4.0) (5.6) (4.9)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Segment Loss $ (10.6) $ (10.5) $ (12.6) $ (9.6) $ (11.3) $ (9.9) $ (8.7) $ (9.8)
=========== =========== =========== =========== =========== =========== =========== ===========
23
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT(1)
Fourth Quarter 2006(unaudited)
($ in millions)
December 31,
-----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
REVENUES
Premiums $ 839.7 $ 928.7 $ 990.6 $ 1,042.2 $ 1,082.0
Insurance and Investment Product Fees 577.1 514.7 534.9 500.9 493.8
Broker-dealer Commission and
Distribution Fee Revenues 32.5 28.7 56.9 81.5 85.0
Net Investment Income 1,052.2 1,102.6 1,075.7 1,107.4 940.5
Unrealized Gain on Trading Equity Securities 85.9
Net Realized Investment Gains (Losses) 76.5 34.2 (0.8) (98.5) (133.9)
-------------- --------------- -------------- -------------- ---------------
Total Revenues 2,578.0 2,608.9 2,743.2 2,633.5 2,467.4
-------------- --------------- -------------- -------------- ---------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy
Liabilities 1,331.5 1,376.7 1,422.2 1,454.0 1,436.1
Policyholder Dividends 399.1 364.4 404.7 418.8 401.8
Policy Acquisition Cost Amortization 148.7 132.1 110.2 94.1 59.2
Intangible Asset Impairments 32.5 10.6 66.3
Intangible Asset Amortization 32.0 33.8 33.8 33.2 32.5
Interest Expense on Indebtedness 49.2 46.6 40.8 39.6 31.4
Interest Expense on Non-recourse Collateralized
Obligations 18.7 29.4 33.6 48.9 30.5
Other Operating Expenses 422.5 477.9 560.7 565.1 613.2
-------------- --------------- -------------- -------------- ---------------
Total Expenses 2,434.2 2,471.5 2,606.0 2,653.7 2,671.0
-------------- --------------- -------------- -------------- ---------------
Income (Loss) from Continuing Operations before
Income Taxes, Minority Interest and equity in
undistributed earnings (losses) of affiliates 143.8 137.4 137.2 (20.2) (203.6)
Applicable Income Taxes (Benefit) 43.3 27.7 40.5 (18.3) (58.8)
-------------- --------------- -------------- -------------- ---------------
Income (Loss) from Continuing Operations before
Minority Interest and equity in undistributed
earnings (losses) of affiliates 100.5 109.7 96.7 (1.9) (144.8)
Minority Interest in Net Income of Subsidiaries (0.6) (0.6) (0.4) (0.5)
Equity in undistributed earnings (losses) of
affiliates (10.4) (1.8) 4.6
-------------- --------------- -------------- -------------- ---------------
Income (Loss) from Continuing Operations 99.9 109.1 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 99.9 108.4 86.4 (6.2) (142.0)
Cumulative Effect of Accounting Changes:
Goodwill and Other Intangible Assets (130.3)
-------------- --------------- -------------- -------------- ---------------
Net Income (Loss) $ 99.9 $ 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)
Fourth Quarter 2006(unaudited)
($ in millions)
2005 2006
----------------------------------------------- -----------------------------------------------
Quarters ended March June September December March June September December
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
REVENUES
Premiums $ 226.8 $ 229.1 $ 236.6 $ 236.2 $ 207.5 $ 207.7 $ 212.1 $ 212.4
Insurance and Investment Product
Fees 129.0 127.4 127.0 131.3 139.1 139.4 150.7 147.9
Broker-dealer Commission and
Distribution Fee Revenues 6.8 7.1 7.5 7.3 7.3 7.9 8.5 8.8
Net Investment Income 268.7 268.1 284.1 281.7 251.2 256.3 261.8 282.9
Net Realized Investment Gains
(Losses) (17.9) (7.8) 2.2 57.7 33.2 17.4 3.1 22.8
----------- ----------- ----------- ----------- ---------- ------------ ----------- -----------
Total Revenues 613.4 623.9 657.4 714.2 638.3 628.7 636.2 674.8
----------- ----------- ----------- ----------- ---------- ------------ ----------- -----------
BENEFITS AND EXPENSES
Policy Benefits and Increase in
Policy Liabilities 343.3 340.0 344.4 349.0 333.9 333.3 333.3 331.0
Policyholder Dividends 83.8 83.4 98.6 98.6 106.8 95.1 88.0 109.2
Policy Acquisition Cost Amortization 28.2 9.9 29.0 65.0 30.0 43.5 44.7 30.5
Intangible Asset Impairments 10.6 32.5
Intangible Asset Amortization 8.4 8.8 8.4 8.2 8.0 8.5 7.7 7.8
Interest Expense on Indebtedness 11.1 11.4 11.7 12.4 12.4 12.3 12.1 12.4
Interest Expense on Non-recourse
Collateralized Obligations 8.9 10.3 5.5 4.7 4.4 5.1 4.8 4.4
Other Operating Expenses 117.2 127.3 119.8 113.6 111.4 103.1 100.1 107.9
----------- ----------- ----------- ----------- ---------- ------------ ----------- -----------
Total Expenses 600.9 591.1 628.0 651.5 639.4 600.9 590.7 603.2
----------- ----------- ----------- ----------- ---------- ------------ ----------- -----------
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) 27.8 45.5 71.6
Applicable Income Taxes (Benefit) 2.8 10.2 2.2 12.5 (2.8) 8.0 11.0 27.1
----------- ----------- ----------- ----------- ---------- ------------ ----------- -----------
Income from Continuing Operations
before Minority Interest and
equity in undistributed earnings
of affiliates 9.7 22.6 27.2 50.2 1.7 19.8 34.5 44.5
Minority Interest in Net Income of
Subsidiaries (0.3) (0.2) (0.1) (0.2) (0.2) (0.2)
----------- ----------- ----------- ----------- ---------- ------------ ----------- -----------
Income from Continuing Operations 9.4 22.4 27.1 50.2 1.7 19.6 34.3 44.3
Discontinued Operations
Loss from Discontinued Operations (0.7)
----------- ----------- ----------- ----------- ---------- ------------ ----------- -----------
Net Income $ 9.4 $ 22.4 $ 26.4 $ 50.2 $ 1.7 $ 19.6 $ 34.3 $ 44.3
=========== =========== =========== =========== ========== ============ =========== ===========
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
25
THE PHOENIX COMPANIES, INC.
CONSOLIDATING FOURTH QUARTER 2006 INCOME STATEMENT
Fourth Quarter 2006 (unaudited)
($ in millions)
Year-to-Date December 31, 2006 Other Exclusions from
Operating Segments Segments Segment Income
------------------------ ---------- ----------------------------------------
Life Corporate Realized Intra-
& Asset & Investment Segment
Consolidated Annuity Management Other Gains/Losses Other Eliminations
------------- ------------ ------------ ---------- ------------- ----------- --------------
REVENUES
Premiums $ 839.7 $ 839.7
Insurance and Investment
Product Fees 577.1 401.4 $ 176.4 $ (0.7)
Broker-dealer commission and
distribution fee revenues 32.5 32.5
Net Investment Income 1,052.2 1,000.9 1.5 $ 35.0 $ 4.3 10.5
Net Realized Investment Gains 76.5 $ 76.5
------------- ------------ ------------ ----------- ------------- ----------- --------------
Total Revenues 2,578.0 2,242.0 210.4 35.0 76.5 4.3 9.8
------------- ------------ ------------ ----------- ------------- ----------- --------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy
Liabilities 1,331.5 1,322.8 8.7
Policyholder Dividends 399.1 353.1 46.0
Policy Acquisition Cost Amortization 148.7 152.1 (3.5) 0.1
Intangible Asset Impairments 32.0 32.0
Intangible Asset Amortization 32.5 32.5
Interest Expense on Indebtedness 49.2 49.2
Interest Expense on Non-recourse
Collateralized Obligations 18.7 18.7
Other Operating Expenses 422.5 200.3 174.5 18.7 1.5 17.7 9.8
------------- ------------ ------------ ----------- ------------- ----------- --------------
Total Expenses 2,434.2 2,028.3 239.0 95.3 44.0 17.8 9.8
------------- ------------ ------------ ----------- ------------- ----------- --------------
Income (Loss) from Continuing Operations
before Income Taxes Minority Interest
and equity in undistributed earnings
(losses) of affiliates 143.8 213.7 (28.6) (60.3) 32.5 (13.5) 0.0
Applicable Income Taxes (Benefit) 43.3 67.9 (10.7) (20.6) 11.7 (5.0)
------------- ------------ ------------ ----------- ------------- ----------- --------------
Income (Loss) from Continuing Operations
before Minority Interest and equity
undistributed earnings (losses) of
affiliates 100.5 145.8 (17.9) (39.7) 20.8 (8.5) 0.0
------------- ------------ ------------ ----------- ------------- ----------- --------------
Minority Interest in Net Income of
Subsidiaries (0.6) (0.6)
------------- ------------ ------------ ----------- ------------- ----------- --------------
Income (Loss) from Continuing Operations $ 99.9 $ 145.8 $ (17.9) $ (39.7) $ 20.8 $ (9.1) $ 0.0
============= ============ ============ =========== ============= =========== ==============
26
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
Fourth Quarter 2006 (unaudited)
($ in millions, except par value)
December 31,
----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
ASSETS:
Available-for-Sale Debt Securities,
at fair value $ 12,696.8 $ 13,404.6 $ 13,476.3 $ 13,273.0 $ 11,889.5
Available-for-Sale Equity Securities,
at fair value 187.1 181.8 304.3 312.0 385.9
Trading Equity Securities, at fair value 87.3
Mortgage Loans, at unpaid principal balances 71.9 128.6 207.9 284.1 468.8
Policy Loans, at unpaid principal balances 2,322.0 2,245.0 2,196.7 2,241.4 2,195.9
Venture Capital Partnerships, at equity in
net assets 116.8 145.1 255.3 234.9 228.6
Affiliate Equity and Debt Securities, at cost
plus equity in undistributed earnings 47.5 134.7
Other Investments 308.3 310.6 371.8 402.0 398.9
-------------- -------------- -------------- -------------- --------------
15,702.9 16,415.7 16,899.6 16,794.9 15,702.3
Available-for-Sale Investments Pledged as
Collateral, at fair value 267.8 304.4 1,278.8 1,350.0 1,358.7
-------------- -------------- -------------- -------------- --------------
Total Investments 15,970.7 16,720.1 18,178.4 18,144.9 17,061.0
Cash and Cash Equivalents 404.9 301.5 435.0 447.9 1,110.5
Deferred Policy Acquisition Costs 1,752.7 1,556.0 1,429.9 1,367.7 1,234.1
Goodwill and Other Intangible Assets 705.1 763.5 735.6 755.0 747.7
Other Assets 681.2 652.9 633.4 760.5 711.4
Separate Account Assets 9,458.6 7,722.2 6,950.3 6,083.2 4,371.2
-------------- -------------- -------------- -------------- --------------
Total Assets $ 28,973.2 $ 27,716.2 $ 28,362.6 $ 27,559.2 $ 25,235.9
============== ============== ============== ============== ==============
LIABILITIES:
Policy Liabilities and Accruals $ 13,494.2 $ 13,246.2 $ 13,132.4 $ 13,088.6 $ 12,680.0
Policyholder Deposit Funds 2,228.4 3,060.7 3,492.4 3,642.7 3,395.7
Indebtedness 685.4 751.9 690.8 639.0 644.3
Stock Purchase Contracts 131.9 128.8 137.6
Other Liabilities 526.5 538.2 587.2 557.1 570.8
Non-recourse Collateralized Debt Obligation
Liabilities 344.0 389.9 1,355.2 1,472.0 1,609.5
Separate Account Liabilities 9,458.6 7,722.2 6,950.3 6,083.2 4,371.2
-------------- -------------- -------------- -------------- --------------
Total Liabilities and minority interest 26,737.1 25,709.1 26,340.2 25,611.4 23,409.1
-------------- -------------- -------------- -------------- --------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion
shares authorized; 113,688,166 shares
outstanding (December 31, 2006) 1.3 1.1 1.0 1.0 1.0
Additional paid in capital 2,602.9 2,440.3 2,435.2 2,431.4 2,424.4
Deferred Compensation on Restricted Stock Units (2.6) (2.7) (3.6) (3.6)
Accumulated Earnings (Deficit) (111.3) (193.1) (285.7) (355.3) (331.4)
Treasury stock, at cost: 11,313,564 shares
(December 31, 2006) (179.5) (179.5) (182.6) (189.4) (195.7)
Accumulated Other Comprehensive Income (Loss) (74.7) (59.0) 58.1 63.7 (71.5)
-------------- -------------- -------------- -------------- --------------
Total Stockholders' Equity 2,236.1 2,007.1 2,022.4 1,947.8 1,826.8
-------------- -------------- -------------- -------------- --------------
Total Liabilities, Minority Interest
and Stockholders' Equity $ 28,973.2 $ 27,716.2 $ 28,362.6 $ 27,559.2 $ 25,235.9
============== ============== ============== ============== ==============
27
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1)
Fourth Quarter 2006 (unaudited)
($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities
-------------------------- --------------------------- --------------------------
12/31/06 12/31/05 12/31/06 12/31/05 12/31/06 12/31/05
------------ ------------ ------------- ------------ ------------ ------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 7,897.2 $ 8,625.0 $ 6,214.1 $ 7,089.4 $ 1,683.1 $ 1,535.6
BBB 3,743.7 3,795.3 2,345.4 2,487.4 1,398.3 1,307.9
------------ ------------ ------------- ------------ ------------ ------------
Total Investment Grade 11,640.9 12,420.3 8,559.5 9,576.8 3,081.4 2,843.5
BB 765.7 753.0 665.7 647.5 100.0 105.5
B 221.4 168.3 175.2 120.8 46.2 47.5
CCC and Lower 53.2 43.6 38.7 28.0 14.5 15.6
In or Near Default 15.6 19.4 10.1 14.6 5.5 4.8
------------ ------------ ------------- ------------ ------------ ------------
Total Debt Securities $ 12,696.8 $ 13,404.6 $ 9,449.2 $ 10,387.7 $ 3,247.6 $ 3,016.9
============ ============ ============= ============ ============ ============
% Below Investment Grade 8.3% 7.3% 9.4% 7.8% 5.1% 5.7%
- --------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT AND EQUITY
SECURITIES
As of December 31, 2006 Total Outside Closed Block Closed Block
-------------------------- -------------------------- -------------------------
Gains Losses Gains Losses Gains Losses
------------ ------------ ------------ ------------ ----------- ------------
Total Debt Securities $ 303.2 $ (157.4) $ 84.1 $ (80.5) $ 219.1 $ (76.9)
Equity Securities 34.2 (3.1) 6.8 (1.0) 27.4 (2.1)
------------ ------------ ------------- ------------ ------------ ------------
Total Unrealized Gains (Losses) 337.4 (160.5) 90.9 (81.5) 246.5 (79.0)
------------ ------------ ------------- ------------ ------------ ------------
Applicable PDO 246.5 (79.0) 246.5 (79.0)
Applicable DAC (Credit) 42.0 (41.7) 42.0 (41.7)
Applicable Deferred Income Tax (Benefit) 17.1 (13.9) 17.1 (13.9)
------------ ------------ ------------- ------------ ------------ ------------
Total Offsets to Net Unrealized Gains (Losses) 305.6 (134.6) 59.1 (55.6) 246.5 (79.0)
------------ ------------ ------------- ------------ ------------ ------------
Net Unrealized Gains and Losses $ 31.8 $ (25.9) $ 31.8 $ (25.9) $ 0.0 $ 0.0
============ ============ ============= ============ ============ ============
Net Unrealized Gains $ 5.9 $ 5.9 $ 0.0
============ ============= ============
(1) Excludes debt and equity securities pledged as collateral.
28
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1)
Fourth Quarter 2006 (unaudited)
($ in millions)
Quarters ended December 31,
----------------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- -------------- -------------- -------------- --------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 800.7 $ 804.6 $ 772.1 $ 765.5 $ 730.8
Equity Securities 7.0 7.5 4.5 4.6 4.2
Mortgages 6.2 20.2 22.5 32.6 40.4
Policy Loans 169.3 165.8 167.1 171.7 171.8
Venture Capital 3.3 23.8 25.5 49.1 (59.3)
Cash & Cash Equivalents 16.3 7.6 4.9 7.0 11.9
Other (2) 40.0 47.8 48.8 35.0 18.9
-------------- -------------- -------------- -------------- --------------
Total Cash and Invested Assets 1,042.8 1,077.3 1,045.4 1,065.5 918.7
============== ============== ============== ============== ==============
Investment Expenses 9.6 8.6 9.8 10.0 9.2
-------------- -------------- -------------- -------------- --------------
Total Net Investment Income $ 1,033.2 $ 1,068.7 $ 1,035.6 $ 1,055.5 $ 909.5
============== ============== ============== ============== ==============
ANNUALIZED YIELDS
Debt Securities 6.5% 6.2% 5.9% 6.0% 6.3%
Equity Securities 3.7% 3.0% 1.3% 1.4% 1.3%
Mortgages 8.1% 15.3% 11.0% 11.2% 8.8%
Policy Loans 7.6% 7.7% 7.9% 8.0% 8.2%
Venture Capital 2.7% 12.8% 10.9% 23.0% -22.8%
Cash & Cash Equivalents 4.7% 5.2% 1.1% 1.3% 1.4%
Other (2) 13.6% 16.4% 7.5% 10.5% 3.6%
-------------- -------------- -------------- -------------- --------------
Total Cash and Invested Assets 6.7% 6.6% 6.1% 6.4% 5.7%
============== ============== ============== ============== ==============
Investment Expenses 0.1% 0.1% 0.1% 0.1% 0.1%
-------------- -------------- -------------- -------------- --------------
Total Net Investment Income yields 6.6% 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)
Fourth Quarter 2006 (unaudited)
($ in millions)
Quarters ended 2005 2006
----------------------------------------------- ---------------------------------------------
March June September December March June September December
---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
GAAP NET INVESTMENT INCOME
Debt Securities $ 197.3 $ 199.4 $ 201.0 $ 206.9 $ 195.1 $ 199.0 $ 199.2 $ 207.4
Equity Securities 2.1 3.0 1.6 0.8 0.5 1.3 1.4 3.8
Mortgages 6.4 4.2 3.9 5.7 0.9 2.3 1.6 1.4
Policy Loans 40.7 40.6 42.2 42.3 41.1 41.5 43.7 43.0
Venture Capital (2.8) 3.3 16.5 6.8 (2.4) 1.4 1.3 3.0
Cash & Cash Equivalents 1.7 1.8 1.6 2.5 3.3 4.5 4.3 4.2
Other (2) 15.5 5.3 13.0 14.0 10.3 3.0 8.1 18.6
---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
Total Cash and Invested Assets 260.9 257.6 279.8 279.0 248.8 253.0 259.6 281.4
---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
Investment Expenses 3.1 2.0 1.3 2.2 2.1 1.9 2.7 2.9
---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
Total Net Investment Income $ 257.8 $ 255.6 $ 278.5 $ 276.8 $ 246.7 $ 251.1 $ 256.9 $ 278.5
========== ========== ========== ========== ========== ========== ========== =========
ANNUALIZED YIELDS
Debt Securities 6.0% 6.0% 6.1% 6.3% 6.1% 6.4% 6.5% 6.7%
Equity Securities 2.3% 4.0% 2.2% 1.3% 1.1% 2.9% 2.9% 8.1%
Mortgages 14.1% 10.2% 10.3% 17.5% 3.0% 9.2% 7.3% 7.3%
Policy Loans 7.8% 7.7% 7.9% 7.9% 7.6% 7.5% 7.9% 7.7%
Venture Capital -4.3% 5.4% 30.0% 14.7% -7.1% 4.8% 4.3% 10.3%
Cash & Cash Equivalents 1.7% 1.7% 2.8% 6.9% 4.1% 5.0% 5.1% 4.9%
Other (2) 19.7% 6.4% 16.6% 19.5% 13.6% 3.7% 10.6% 26.9%
---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
Total Cash and Invested Assets 6.3% 6.1% 6.8% 6.9% 6.2% 6.4% 6.7% 7.2%
---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
Investment Expenses 0.1% 0.0% 0.0% 0.1% 0.1% 0.0% 0.1% 0.1%
---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
Total Net Investment Income
yields 6.2% 6.1% 6.7% 6.8% 6.1% 6.4% 6.6% 7.2%
========== ========== ========== ========== ========== ========== ========== =========
(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
Fourth Quarter 2006 (unaudited)
($ Millions)
December 31,
-----------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ----------- ----------- ----------- -----------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (7.9) $ (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 (1.0) (1.2) (16.6) (8.3) (34.9)
Other Invested Asset Impairments (3.3) (9.9) (22.0)
---------- ----------- ----------- ----------- -----------
Total Impairment Losses (8.9) (35.3) (49.5) (210.8) (186.7)
---------- ----------- ----------- ----------- -----------
Debt Security Net Transaction Gains (Losses) 42.0 (18.0) 28.4 64.7 48.4
Equity Security Net Transaction Gains (Losses) 21.9 2.9 14.6 49.2 2.1
Venture Capital Net Investment Gains (Losses) 2.4 (13.9) (9.7)
Mortgage Loan Net Transaction Gains (Losses) 3.2 0.2 (1.3) 0.2
Affiliate Equity Security Transaction GL 10.4 3.7
Real Estate Net Transaction Gains (Losses) (0.6) (0.8) (0.2) 4.0
Settlement of HRH Stock Purchase Contracts 86.3
Other Invested Asset Net Transactions Gains (Losses) 5.5 6.6 6.3 9.6 (1.9)
Debt and Equity Securities Pledged as Collateral 2.5
---------- ----------- ----------- ----------- -----------
Total Net Transactions Gains 85.4 69.5 48.7 112.3 52.8
---------- ----------- ----------- ----------- -----------
Net Realized Investment Gains (Losses) 76.5 34.2 (0.8) (98.5) (133.9)
========== =========== =========== =========== ===========
Closed Block Applicable PDO (Reduction) 46.0 (12.4) 3.7 (5.9) (40.3)
Applicable Deferred Acquisition Costs (Credit) (3.5) 17.6 (0.4) (4.1) (7.2)
Applicable Deferred Income Tax (Credit) 11.7 9.2 3.1 (35.6) (20.8)
---------- ----------- ----------- ----------- -----------
Net Realized Investment Gains (Losses) Included
in Net Income $ 22.3 $ 19.8 $ (7.2) $ (52.9) $ (65.6)
========== =========== =========== =========== ===========
31
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
Fourth Quarter 2006 (unaudited)
($ Millions)
Quarters ended 2005 2006
------------------------------------------- ------------------------------------------
March June September December March June September December
---------- --------- --------- --------- --------- --------- --------- ---------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (12.2) $ (8.5) $ (4.3) $ (6.2) $ (0.9) $ (2.4) $ (1.6) $ (3.0)
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) (2.4) (1.6) (3.0)
---------- --------- --------- --------- --------- --------- --------- ---------
Debt Security Net Transaction Gains
(Losses) (7.2) 0.1 (2.6) (8.3) 16.1 15.0 2.8 8.1
Equity Security Net Transaction Gains
(Losses) (1.0) 0.4 2.4 1.1 3.5 1.4 17.0
Venture Capital Net Investment Gains
(Losses) (13.9) 3.8 0.4 (1.8)
Mortgage Loan Net Transaction Gains
(Losses) 3.2
Affiliate Equity Security Transactions
Gains (Losses) 3.7 10.0 0.4
Real Estate Net Transaction Gains (Losses) (0.3) (0.3) (0.2) 0.2 0.1 0.1 (0.2)
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 0.4 0.2 2.7
Debt and Equity Securities Pledged
as Collateral 0.7 (0.5) 1.1 1.2 (1.0) 0.1 0.1 (0.2)
---------- --------- --------- --------- --------- --------- --------- ---------
Total Net Transactions Gains (5.4) 2.2 6.7 66.0 34.1 19.8 4.7 25.8
---------- --------- --------- --------- --------- --------- --------- ---------
Net Realized Investment Gains (Losses) (17.9) (7.8) 2.2 57.7 33.2 17.4 3.1 22.8
========== ========= ========= ========= ========= ========= ========= =========
Closed Block Applicable PDO (Reduction) (4.4) (6.7) 4.2 (5.5) 19.2 13.4 6.0 7.4
Applicable Deferred Acquisition
Costs (Credit) (4.8) 1.0 (4.5) 25.9 (2.6) (0.2) (1.1) 0.4
Applicable Deferred Income Tax (Credit) (3.2) (0.3) 0.5 12.2 6.2 1.2 (0.7) 5.0
---------- --------- --------- --------- --------- --------- --------- ---------
Net Realized Investment Gains (Losses)
Included in Net Income $ (5.5) $ (1.8) $ 2.0 $ 25.1 $ 10.4 $ 3.0 $ (1.1) $ 10.0
========== ========= ========= ========= ========= ========= ========= =========
32