EXHIBIT 99.1
[LOGO OF PHOENIX]
PHOENIX
FINANCIAL SUPPLEMENT
The Phoenix Companies, Inc.
March 31, 2008
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
WALL STREET COVERAGE TRANSFER AGENT AND REGISTRAR
FIRM ANALYST For information or assistance regarding your account, please contact our
Citigroup Keith Walsh transfer agent and registrar:
Credit Suisse Securities (USA) Tom Gallagher The Phoenix Companies, Inc. C/O BNY Mellon Shareowner Services
Dowling & Partners Paul Goulekas P.O. Box 358015, Pittsburgh, PA 15258
JP Morgan Jimmy Bhullar Toll-free: 1-800-490-4258 Int'l: 201-680-6823
Keefe Bruyette & Woods, Inc. Jukka Lipponen TDD: 800-231-5469, Int'l TDD: 201-680-6610
Langen McAlenney Robert Glasspiegel E-mail: shrrelations@bnymellon.com
Lehman Brothers Eric Berg Web: www.bnymellon.com/shareowner/isd
Merrill Lynch Edward Spehar
Raymond James & Associates Steven Schwartz
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 Phoenixwm.com or contact our Investor Relations Department at:
SHAREHOLDER INFORMATION
SECURITY LISTINGS The Phoenix Companies, Inc.
The common stock of The Phoenix Companies, Inc. Investor Relations
is traded on the New York Stock Exchange (NYSE) under One American Row
the symbol "PNX." Our 7.45 percent bond is traded on P.O. Box 5056, Hartford, CT 06102-5056
the NYSE under the symbol "PFX." 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 Phoenixwm.com.
In managing our business, we analyze our performance on the basis of "operating
income" which does not equate to net income as determined in accordance with
GAAP. Rather, it is the measure of profit or loss used by our management to
evaluate performance, allocate resources and manage our operations. We believe
that operating income, and measures that are derived from or incorporate
operating income, are appropriate measures that are useful to investors as well,
because they identify the earnings of, and underlying profitability factors
affecting, the ongoing operations of our business. Operating income is
calculated by excluding realized investment gains (losses) and certain other
items because we do not consider them to be related to our operating
performance. The size and timing of realized investment gains (losses) are often
subject to our discretion. Certain other items are also excluded from operating
income if, in our opinion, they are not indicative of overall operating trends.
The criteria used to identify an item that will be excluded from operating
income include: whether the item is infrequent and is material to our income; or
whether it results from a change in regulatory requirements, or relates to other
unusual circumstances. Items excluded from operating income may vary from period
to period. Because these items are excluded based on our discretion,
inconsistencies in the application of our selection criteria may exist. Some of
these items may be significant components of net income in accordance with GAAP.
Accordingly, operating income, and other measures that are derived from or
incorporate operating income, are not substitutes for net income, or measures
that are derived from or incorporate net income, determined in accordance with
GAAP and may be different from similarly titled measures of other companies.
Within our Asset Management segment, we also consider earnings before interest,
taxes, depreciation and amortization ("EBITDA"). Our management believes EBITDA
provides additional perspective on the operating efficiency and profitability of
the Asset Management segment. EBITDA represents pre-tax operating income before
depreciation and amortization of goodwill and intangibles.
Total operating return on equity ("ROE") is an internal performance measure used
in the management of our operations, including our compensation plans and
planning processes. Our management believes that this measure provides investors
with a useful metric to assess our performance and the effectiveness of our use
of historic capital. ROE is calculated by dividing (i) total operating income,
by (ii) average equity, excluding accumulated OCI, FIN 46-R and discontinued
operations. Total operating return on tangible equity ("return on tangible
equity") is also an internal performance measure used in the evaluation of our
operations. Our management believes that this measure provides investors with a
useful metric to assess our performance and the effectiveness of our use of
current capital. Return on tangible equity is calculated by dividing (i) total
operating income, by (ii) average equity, excluding accumulated OCI, FIN 46-R,
discontinued operations and the carrying value of goodwill and intangible
assets.
THE PHOENIX COMPANIES, INC.
FINANCIAL SUPPLEMENT
MARCH 2008 (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.....................................................................21
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT..........................................23
CONSOLIDATING FIRST QUARTER 2008 INCOME STATEMENT.......................................25
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY.....................................26
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY............................................27
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS.......................................28
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES....................................30
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2008 (unaudited)
(amount in millions, except per share data)
For the Period Ended: December 31,
YTD March ----------------------------------------------------------
2008 2007 2006 2005 2004
------------- ------------- ------------- ------------- -------------
BALANCE SHEET INFORMATION
General Account Invested Assets $ 15,326.2 $ 15,814.5 $ 16,107.8 $ 16,717.2 $ 17,334.6
Separate Account Assets 10,344.2 10,820.3 9,458.6 7,722.2 6,950.3
Total Assets 29,389.3 30,206.9 29,007.2 27,712.3 28,359.3
Indebtedness 474.0 627.7 685.4 751.9 690.8
Total Stockholders' Equity 2,261.1 2,289.9 2,236.1 2,007.1 2,022.4
Total Stockholders' Equity, excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 2,464.5 $ 2,480.9 $ 2,364.6 $ 2,118.9 $ 2,018.5
Average Equity, excluding other accumulated OCI,
FIN 46-R and Discontinued Operations (1) $ 2,457.6 $ 2,399.9 $ 2,239.4 $ 2,017.1
Total Operating Return on Equity (1) -0.76% 5.64% 3.89% 4.99%
Average Tangible Common Equity (2) $ 1,469.4 $ 1,703.1 $ 1,516.8 $ 1,280.4
Total Operating Return on Average Tangible Equity (2) -1.28% 7.94% 5.74% 7.86%
Debt to Total Capitalization(4) 16.1% 20.2% 22.5% 26.2% 25.5%
Book Value Per Share $ 19.77 $ 20.04 $ 19.67 $ 21.10 $ 21.32
Book Value Per Share, excluding SFAS 115
and other accumulated OCI $ 21.11 $ 21.25 $ 20.33 $ 21.72 $ 20.70
Book Value Per Share, excluding SFAS 115,
other accumulated OCI and FIN 46-R $ 21.55 $ 21.71 $ 20.80 $ 22.28 $ 21.27
Period-end Common Shares Outstanding 114.4 114.3 113.7 95.1 94.9
============= ============= ============= ============ =============
- -----------------------------------------------------------------------------------------------------------------------------------
INDEBTEDNESS:
Surplus Notes $ 174.0 $ 174.0 $ 174.0 $ 204.2 $ 204.1
Senior Unsecured Bonds - due 2008 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
Bank Credit Facility 25.0 25.0
Other 57.2 67.0
------------- ------------- ------------- ------------ -------------
Total Indebtedness $ 474.0 $ 627.7 $ 685.4 $ 751.9 $ 690.8
============= ============= ============= ============ =============
- -----------------------------------------------------------------------------------------------------------------------------------
STATUTORY FINANCIAL DATA FOR PHOENIX LIFE INSURANCE
COMPANY (3)
Capital, Surplus and Surplus Notes $ 797.7 $ 848.1 $ 932.4 $ 885.5 $ 814.6
Asset Valuation Reserve (AVR) 148.9 192.6 187.9 210.8 213.6
------------- ------------- ------------- ------------ -------------
Capital, Surplus, Surplus Notes and AVR $ 946.6 $ 1,040.7 $ 1,120.3 $ 1,096.3 $ 1,028.2
============= ============= ============= ============ =============
Policyholder Dividend Liability $ 361.0 $ 355.6 $ 348.9 $ 356.1 $ 403.3
Interest Maintenance Reserve $ (44.9) $ (44.4) $ (44.3) $ (23.1) $ (31.3)
Statutory Gain From Operations $ 11.4 $ 115.2 $ 131.6 $ 106.2 $ 35.1
Statutory Net Income (Loss) $ (22.9) $ 80.0 $ 162.0 $ 61.0 $ 47.1
=============
(1) This average equity is used for the calculation of total operating
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) This average equity is used for the calculation of total operating
return on tangible equity and represents the average of the monthly average
of equity, excluding other accumulated OCI, the effects of FIN 46-R, the
equity of discontinued operations and the carrying value of goodwill and
intangible assets.
(3) Phoenix Life Insurance Company is required to file financial statements
with state regulatory authorities prepared on an accounting basis
prescribed or permitted by the Insurance Department of the State of New
York. March 2008 amounts are preliminary.
(4) This debt to total capitalization is based on total stockholders'
equity, excluding SFAS 115, other accumulated OCI and FIN 46-R.
1
THE PHOENIX COMPANIES, INC.
FINANCIAL HIGHLIGHTS
First Quarter 2008 (unaudited)
(amount in millions, except per share data)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------- ------------- ------------- ------------- ------------- -------------
INCOME STATEMENT SUMMARY
OPERATING INCOME
Life Insurance $ 31.6 $ 56.0 $ 195.9 $ 209.7 $ 180.5 $ 130.1
Annuities (5.4) 6.9 19.8 4.0 12.0 12.7
------------- ------------- ------------- ------------- ------------- -------------
Life and Annuity Segment 26.2 62.9 215.7 213.7 192.5 142.8
Asset Management Segment (13.3) 0.6 7.4 (28.6) (10.5) 0.1
Venture Capital Segment(1) 14.8 19.3
Corporate and Other (20.6) (9.2) (47.5) (62.0) (71.3) (60.8)
------------- ------------- ------------- ------------- ------------- -------------
TOTAL OPERATING INCOME (LOSS), BEFORE
INCOME (LOSS) TAXES (7.7) 54.3 175.6 123.1 125.5 101.4
Applicable Income Taxes (Benefit) (3.0) 16.9 40.3 36.0 24.9 22.5
------------- ------------- ------------- ------------- ------------- -------------
TOTAL OPERATING INCOME (LOSS) (4.7) 37.4 135.3 87.1 100.6 78.9
Net Realized Investment Gains (Losses) (15.1) 12.2 (8.9) 21.8 25.5 11.8
Realized Gains (Losses) - Investments
Pledged as Collateral Consolidated
Under FIN 46-R 0.8 0.2 1.0 (1.0) 1.3 (12.9)
Realized and Unrealized Gains (Losses)
on Equity Investment in Aberdeen (7.0) 55.9
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) (12.5) (21.9)
------------- ------------- ------------- ------------- ------------- -------------
INCOME (LOSS) FROM CONTINUING OPERATIONS (19.0) 49.8 127.4 98.8 107.9 90.7
Income (Loss) from Discontinued
Operations 0.8 (3.5) 1.1 0.5 (4.3)
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME (LOSS) $ (19.0) $ 50.6 $ 123.9 $ 99.9 $ 108.4 $ 86.4
============= ============= ============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
BASIC
Weighted-Average Shares Outstanding 114.3 113.8 114.1 110.9 95.0 94.7
------------- ------------- ------------- ------------- ------------- -------------
Total Operating Income (Loss) Per Share $ (0.04) $ 0.33 $ 1.19 $ 0.78 $ 1.06 $ 0.83
Net Income (Loss) Per Share $ (0.17) $ 0.44 $ 1.09 $ 0.90 $ 1.14 $ 0.91
DILUTED
Weighted-Average Shares Outstanding and
Dilutive Potential Common Shares (2) 114.3 115.1 116.0 113.2 102.4 100.8
------------- ------------- ------------- ------------- ------------- -------------
Total Operating Income (Loss) Per Share $ (0.04) $ 0.32 $ 1.17 $ 0.77 $ 0.98 $ 0.78
Net Income (Loss) Per Share $ (0.17) $ 0.44 $ 1.07 $ 0.88 $ 1.06 $ 0.86
=============
(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.
(2) For the three months ended March 31, 2008, the weighted average common
shares outstanding and dilutive potential common shares were 116.0 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
First Quarter 2008 (unaudited)
(amount in millions, except per share data)
Quarters ended
2007 2008
---------------------------------------------------------- -----------
March June September December March
------------ ------------- ------------- ------------- -----------
OPERATING INCOME
Life Insurance $ 56.0 $ 45.5 $ 44.6 $ 49.8 $ 31.6
Annuities 6.9 5.2 5.1 2.6 (5.4)
------------ ------------- ------------- ------------- -----------
Life and Annuity Segment 62.9 50.7 49.7 52.4 26.2
Asset Management Segment 0.6 2.3 2.6 1.9 (13.3)
Corporate and Other (9.2) (16.2) (11.3) (10.8) (20.6)
------------ ------------- ------------- ------------- -----------
TOTAL OPERATING INCOME (LOSS),
BEFORE INCOME (LOSS) TAXES 54.3 36.8 41.0 43.5 (7.7)
Applicable Income Taxes (Benefit) 16.9 2.9 6.7 13.8 (3.0)
------------ ------------- ------------- ------------- -----------
TOTAL OPERATING INCOME (LOSS) 37.4 33.9 34.3 29.7 (4.7)
Net Realized Investment Gains (Losses) 12.2 (1.0) 0.8 (20.9) (15.1)
Realized Gains (Losses) - Investments
Pledged as Collateral
Consolidated Under FIN 46-R 0.2 (0.1) 0.5 0.4 0.8
------------ ------------- ------------- ------------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 49.8 32.8 35.6 9.2 (19.0)
Gain (Loss) from Discontinued Operations 0.8 0.4 (4.7)
------------ ------------- ------------- ------------- -----------
NET INCOME (LOSS) $ 50.6 $ 33.2 $ 35.6 $ 4.5 $ (19.0)
============ ============= ============= ============= ===========
- ----------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
BASIC
Weighted-Average Shares Outstanding 113.8 114.1 114.2 114.2 114.3
------------ ------------- ------------- ------------- -----------
Total Operating Income (Loss) Per Share $ 0.33 $ 0.30 $ 0.30 $ 0.26 $ (0.04)
Net Income (Loss) Per Share $ 0.44 $ 0.29 $ 0.31 $ 0.04 $ (0.17)
DILUTED
Weighted-Average Shares Outstanding
and Dilutive Potential Common Shares (1) 115.1 115.6 115.8 115.8 114.3
------------ ------------- ------------- ------------- -----------
Total Operating Income (Loss) Per Share $ 0.32 $ 0.29 $ 0.30 $ 0.26 $ (0.04)
Net Income (Loss) Per Share $ 0.44 $ 0.29 $ 0.31 $ 0.04 $ (0.17)
===========
(1) For the three months ended March 31, 2008, the weighted average common
shares outstanding and dilutive potential common shares were 116.0 million.
For the calculation of net loss per share, dilutive potential shares were
not included because their effect would have been anti-dilutive.
3
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
--------------------------- ----------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------- ------------ ------------- ------------- ------------- -------------
OPERATING INCOME
Variable Universal Life $ 6.7 $ 8.8 $ 41.1 $ 52.7 $ 69.6 $ 35.7
Universal Life (1) 2.6 17.5 59.6 53.3 47.9 34.4
Other Life and Annuity (2) (0.5) 0.4 0.4 2.7 1.5 1.6
------------- ------------ ------------- ------------- ------------- -------------
TOTAL CORE LIFE INSURANCE 8.8 26.7 101.1 108.7 119.0 71.7
------------- ------------ ------------- ------------- ------------- -------------
Traditional Life, excluding Closed Block 7.1 12.6 27.8 31.2 (11.7) (18.3)
Traditional Life, Closed Block 15.7 16.7 67.0 69.8 73.2 76.7
------------- ------------ ------------- ------------- ------------- -------------
TOTAL TRADITIONAL LIFE 22.8 29.3 94.8 101.0 61.5 58.4
------------- ------------ ------------- ------------- ------------- -------------
TOTAL, LIFE INSURANCE 31.6 56.0 195.9 209.7 180.5 130.1
Annuities (5.4) 6.9 19.8 4.0 12.0 12.7
------------- ------------ ------------- ------------- ------------- -------------
OPERATING INCOME, BEFORE INCOME TAXES 26.2 62.9 215.7 213.7 192.5 142.8
Allocated Income Taxes 9.7 19.6 66.5 67.9 51.3 36.4
------------- ------------ ------------- ------------- ------------- -------------
OPERATING INCOME 16.5 43.3 149.2 145.8 141.2 106.4
Net Realized Investment Gains (Losses) (12.6) 0.5 (1.6) (1.0) 22.7 (2.5)
Management Restructuring and
Early Retirement Costs (0.1) (7.3)
------------- ------------ ------------- ------------- ------------- -------------
NET INCOME $ 3.9 $ 43.8 $ 147.6 $ 144.8 $ 163.8 $ 96.6
============= ============ ============= ============= ============= =============
(1) Universal Life includes interest sensitive whole life contracts.
(2) Other Life and Annuity includes WS Griffith prior to 2005.
4
THE PHOENIX COMPANIES, INC.
LIFE AND ANNUITY EARNINGS SUMMARY
First Quarter 2008 (unaudited)
($ in millions)
Quarters ended 2007 2008
---------------------------------------------------------- -------------
March June September December March
------------- ------------- ------------- ------------- -------------
OPERATING INCOME
Variable Universal Life $ 8.8 $ 11.0 $ 11.9 $ 9.4 $ 6.7
Universal Life (1) 17.5 17.7 10.3 14.1 2.6
Other Life and Annuity 0.4 0.5 0.1 (0.6) (0.5)
------------- ------------- ------------- ------------- -------------
TOTAL CORE LIFE INSURANCE 26.7 29.2 22.3 22.9 8.8
------------- ------------- ------------- ------------- -------------
Traditional Life, excluding Closed Block 12.6 (0.5) 5.6 10.1 7.1
Traditional Life, Closed Block 16.7 16.8 16.7 16.8 15.7
------------- ------------- ------------- ------------- -------------
TOTAL TRADITIONAL LIFE 29.3 16.3 22.3 26.9 22.8
------------- ------------- ------------- ------------- -------------
TOTAL, LIFE INSURANCE 56.0 45.5 44.6 49.8 31.6
Annuities 6.9 5.2 5.1 2.6 (5.4)
------------- ------------- ------------- ------------- -------------
OPERATING INCOME, BEFORE INCOME TAXES 62.9 50.7 49.7 52.4 26.2
Allocated Income Taxes 19.6 16.7 11.6 18.6 9.7
------------- ------------- ------------- ------------- -------------
OPERATING INCOME 43.3 34.0 38.1 33.8 16.5
Net Realized Investment Gains (Losses) 0.5 0.5 2.5 (5.1) (12.6)
------------- ------------- ------------- ------------- -------------
NET INCOME $ 43.8 $ 34.5 $ 40.6 $ 28.7 $ 3.9
============= ============= ============= ============= =============
(1) Universal Life includes interest sensitive whole life contracts.
5
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
------------------------ ---------------------------------------------------
2008 2007 2007 2006 2005 2004
---------- ---------- ---------- ---------- ---------- ----------
PRE-TAX INCOME
Fees $ 8.1 $ 8.0 $ 32.5 $ 27.6 $ 32.5 $ 29.6
Cost of Insurance (COI) 21.3 20.3 81.9 77.8 76.7 74.6
Interest Earned 2.4 2.4 9.9 9.2 6.3 5.9
Surrender Charges 1.6 2.1 6.6 6.7 7.1 6.9
---------- ---------- ---------- ---------- ---------- ----------
TOTAL REVENUES 33.4 32.8 130.9 121.3 122.6 117.0
---------- ---------- ---------- ---------- ---------- ----------
Net Death and Disability Benefits 13.0 9.0 28.7 31.9 28.5 30.5
Interest Credited 1.6 1.4 5.8 4.8 4.6 3.7
DAC Amortized 5.7 7.2 30.1 8.4 (4.4) 22.2
Operating Expenses 6.4 6.4 25.2 23.5 24.3 24.9
---------- ---------- ---------- ---------- ---------- ----------
TOTAL EXPENSES 26.7 24.0 89.8 68.6 53.0 81.3
---------- ---------- ---------- ---------- ---------- ----------
OPERATING INCOME BEFORE TAX $ 6.7 $ 8.8 $ 41.1 $ 52.7 $ 69.6 $ 35.7
========== ========== ========== ========== ========== ==========
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 4.4 $ 4.3 $ 15.8 $ 13.5 $ 13.6 $ 16.3
Controllable Expenses and Other 7.9 9.4 34.1 29.6 26.8 34.0
---------- ---------- ---------- ---------- ---------- ----------
TOTAL CURRENT EXPENSES 12.3 13.7 49.9 43.1 40.4 50.3
Deferred Acquisition Costs (5.9) (7.3) (24.7) (19.6) (16.1) (25.4)
---------- ---------- ---------- ---------- ---------- ----------
OPERATING EXPENSES $ 6.4 $ 6.4 $ 25.2 $ 23.5 $ 24.3 $ 24.9
========== ========== ========== ========== ========== ==========
- -----------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT (FUM)
Deposits, excluding Private Placement $ 38.1 $ 40.2 $ 153.8 $ 149.0 $ 171.4 $ 185.4
Surrenders, excluding Private Placement (24.2) (24.1) (102.1) (85.9) (84.4) (60.6)
---------- ---------- ---------- ---------- ---------- ----------
Net Sales, excluding Private Placement 13.9 16.1 51.7 63.1 87.0 124.8
Private Placement, Net Sales 3.8 8.8 50.4 1.0 36.7 45.3
---------- ---------- ---------- ---------- ---------- ----------
TOTAL NET SALES 17.7 24.9 102.1 64.1 123.7 170.1
Deaths (1.0) (3.3) (19.6) (4.7) (3.6) (2.2)
Interest Credited (116.9) 58.1 195.3 259.9 141.5 170.0
Acquisitions (Dispositions) 218.8
Fees (8.8) (8.1) (33.5) (30.4) (30.3) (31.0)
Cost of Insurance (20.8) (19.8) (79.9) (75.8) (74.6) (72.4)
---------- ---------- ---------- ---------- ---------- ----------
Change in FUM (129.8) 51.8 383.2 213.1 156.7 234.5
Beginning Balance 2,696.1 2,312.9 2,312.9 2,099.8 1,943.1 1,708.6
---------- ---------- ---------- ---------- ---------- ----------
ENDING FUND BALANCE $ 2,566.3 $ 2,364.7 $ 2,696.1 $ 2,312.9 $ 2,099.8 $ 1,943.1
========== ========== ========== ========== ========== ==========
Gross Life Insurance In Force (1) $24,796.6 $24,320.5 $24,714.2 $24,164.6 $24,767.7 $25,382.0
========== ========== ========== ========== ========== ==========
(1) 2006, 2005 and 2004 face amounts updated to include the term rider face
amounts for all variable universal life products.
6
THE PHOENIX COMPANIES, INC.
VARIABLE UNIVERSAL LIFE
First Quarter 2008 (unaudited)
($ in millions)
Quarters ended
2007 2008
------------------------------------------------------- ----------
March June September December March
----------- ---------- ---------- ---------- ----------
PRE-TAX INCOME
Fees $ 8.0 $ 8.2 $ 7.7 $ 8.6 $ 8.1
Cost of Insurance (COI) 20.3 20.1 20.2 21.3 21.3
Interest Earned 2.4 2.4 2.6 2.5 2.4
Surrender Charges 2.1 1.4 1.9 1.2 1.6
----------- ---------- ---------- ---------- ----------
TOTAL REVENUES 32.8 32.1 32.4 33.6 33.4
----------- ---------- ---------- ---------- ----------
Net Death and Disability Benefits 9.0 5.6 6.4 7.7 13.0
Interest Credited 1.4 1.4 1.4 1.6 1.6
DAC Amortized 7.2 7.0 7.5 8.4 5.7
Operating Expenses 6.4 7.1 5.2 6.5 6.4
----------- ---------- ---------- ---------- ----------
TOTAL EXPENSES 24.0 21.1 20.5 24.2 26.7
----------- ---------- ---------- ---------- ----------
OPERATING INCOME BEFORE TAX $ 8.8 $ 11.0 $ 11.9 $ 9.4 $ 6.7
=========== ========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 4.3 $ 3.5 $ 3.3 $ 4.7 $ 4.4
Controllable Expenses and Other 9.4 8.5 6.6 9.6 7.9
----------- ---------- ---------- ---------- ----------
TOTAL CURRENT EXPENSES 13.7 12.0 9.9 14.3 12.3
Deferred Acquisition Costs (7.3) (4.9) (4.7) (7.8) (5.9)
----------- ---------- ---------- ---------- ----------
OPERATING EXPENSES $ 6.4 $ 7.1 $ 5.2 $ 6.5 $ 6.4
=========== ========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT (FUM)
Deposits, excluding Private Placement $ 40.2 $ 34.7 $ 32.7 $ 46.2 $ 38.1
Surrenders, excluding Private Placement (24.1) (26.1) (28.5) (23.4) (24.2)
---------- ---------- ---------- ---------- ----------
Net Sales, excluding Private Placement 16.1 8.6 4.2 22.8 13.9
Private Placement, Net Sales 8.8 10.8 6.4 24.4 3.8
---------- ---------- ---------- ---------- ----------
TOTAL NET SALES 24.9 19.4 10.6 47.2 17.7
Deaths (3.3) (6.6) (8.3) (1.4) (1.0)
Interest Credited 58.1 112.7 25.9 (1.4) (116.9)
Acquisitions (Dispositions) 218.8
Fees (8.1) (8.4) (7.1) (9.9) (8.8)
Cost of Insurance (19.8) (19.6) (19.3) (21.2) (20.8)
---------- ---------- ---------- ---------- ----------
Change in FUM 51.8 97.5 1.8 232.1 (129.8)
Beginning Balance 2,312.9 2,364.7 2,462.2 2,464.0 2,696.1
---------- ---------- ---------- ---------- ----------
ENDING FUND BALANCE $ 2,364.7 $ 2,462.2 $ 2,464.0 $ 2,696.1 $ 2,566.3
========== ========== ========== ========== ==========
Gross Life Insurance In Force (1) $24,320.5 $24,274.0 $24,138.8 $24,714.2 $24,796.6
========== ========== ========== ========== ==========
(1) 2007 face amounts updated to include the term rider face amounts for all
variable universal life products.
7
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE/INTEREST SENSITIVE
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
----------------------------- -------------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------- ------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 10.2 $ 6.7 $ 36.6 $ 27.2 $ 17.9 $ 19.1
Cost of Insurance (COI) 81.7 56.1 258.9 184.9 109.9 90.7
Interest Earned 30.1 30.7 123.9 116.5 108.7 100.4
Surrender Charges 1.3 0.7 3.5 3.7 3.2 3.2
------------- ------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 123.3 94.2 422.9 332.3 239.7 213.4
------------- ------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 59.2 24.7 124.1 98.0 61.8 58.4
Interest Credited 23.7 21.0 86.4 79.6 74.5 74.6
DAC Amortized 16.3 18.6 91.4 55.5 17.9 20.3
Operating Expenses 21.5 12.4 61.4 45.9 37.6 25.7
------------- ------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 120.7 76.7 363.3 279.0 191.8 179.0
------------- ------------- ------------- ------------- ------------- -------------
OPERATING INCOME BEFORE TAX $ 2.6 $ 17.5 $ 59.6 $ 53.3 $ 47.9 $ 34.4
============= ============= ============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 53.0 $ 23.5 $ 157.9 $ 104.9 $ 51.1 $ 24.9
Controllable Expenses and Other 84.7 39.1 257.4 176.2 96.5 64.3
------------- ------------- ------------- ------------- ------------- -------------
TOTAL CURRENT EXPENSES 137.7 62.6 415.3 281.1 147.6 89.2
Deferred Acquisition Costs (116.2) (50.2) (353.9) (235.2) (110.0) (63.5)
------------- ------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 21.5 $ 12.4 $ 61.4 $ 45.9 $ 37.6 $ 25.7
============= ============= ============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT (FUM)
Deposits $ 179.1 $ 92.3 $ 540.9 $ 417.1 $ 297.8 $ 229.4
Surrenders (19.7) (21.9) (77.0) (84.7) (94.1) (126.2)
------------- ------------- ------------- ------------- ------------- -------------
NET SALES 159.4 70.4 463.9 332.4 203.7 103.2
Deaths (9.0) (8.3) (22.9) (20.5) (22.3) (16.9)
Interest Credited 23.8 21.0 86.3 79.6 78.7 74.6
Fees (16.4) (8.2) (48.6) (36.6) (26.8) (23.5)
Cost of Insurance (81.7) (56.1) (258.9) (184.9) (109.9) (90.7)
------------- ------------- ------------- ------------- ------------- -------------
Change in FUM 76.1 18.8 219.8 170.0 123.4 46.7
Beginning Balance 2,123.9 1,904.1 1,904.1 1,734.1 1,610.7 1,564.0
------------- ------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 2,200.0 $ 1,922.9 $ 2,123.9 $ 1,904.1 $ 1,734.1 $ 1,610.7
============= ============= ============= ============= ============= =============
Gross Life Insurance In Force $ 29,774.2 $ 21,311.6 $ 27,358.2 $ 20,402.1 $ 16,303.0 $ 14,103.7
============= ============= ============= ============= ============= =============
8
THE PHOENIX COMPANIES, INC.
UNIVERSAL LIFE/INTEREST SENSITIVE
First Quarter 2008 (unaudited)
($ in millions)
Quarters ended 2007 2008
------------------------------------------------------------- -------------
March June September December March
------------- ------------- ------------- ------------- -------------
PRE-TAX INCOME
Fees $ 6.7 $ 7.5 $ 9.7 $ 12.7 $ 10.2
Cost of Insurance (COI) 56.1 59.5 65.7 77.6 81.7
Interest Earned 30.7 30.0 31.8 31.4 30.1
Surrender Charges 0.7 0.8 0.7 1.3 1.3
------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 94.2 97.8 107.9 123.0 123.3
------------- ------------- ------------- ------------- -------------
Net Death and Disability Benefits 24.7 20.3 38.9 40.2 59.2
Interest Credited 21.0 21.0 21.4 23.0 23.7
DAC Amortized 18.6 24.1 22.0 26.7 16.3
Operating Expenses 12.4 14.7 15.3 19.0 21.5
------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 76.7 80.1 97.6 108.9 120.7
------------- ------------- ------------- ------------- -------------
OPERATING INCOME BEFORE TAX $ 17.5 $ 17.7 $ 10.3 $ 14.1 $ 2.6
============= ============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 23.5 $ 26.6 $ 42.4 $ 65.4 $ 53.0
Controllable Expenses and Other 39.1 47.9 67.3 103.1 84.7
------------- ------------- ------------- ------------- -------------
TOTAL CURRENT EXPENSES 62.6 74.5 109.7 168.5 137.7
Deferred Acquisition Costs (50.2) (59.8) (94.4) (149.5) (116.2)
------------- ------------- ------------- ------------- -------------
OPERATING EXPENSES $ 12.4 $ 14.7 $ 15.3 $ 19.0 $ 21.5
============= ============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT (FUM)
Deposits $ 92.3 $ 100.2 $ 146.4 $ 202.0 $ 179.1
Surrenders (21.9) (19.3) (16.2) (19.6) (19.7)
------------- ------------- ------------- ------------- -------------
NET SALES 70.4 80.9 130.2 182.4 159.4
Deaths (8.3) (4.2) (4.7) (5.7) (9.0)
Interest Credited 21.0 21.0 21.3 23.0 23.8
Fees (8.2) (8.9) (12.8) (18.7) (16.4)
Cost of Insurance (56.1) (59.5) (65.7) (77.6) (81.7)
------------- ------------- ------------- ------------- -------------
Change in FUM 18.8 29.3 68.3 103.4 76.1
Beginning Balance 1,904.1 1,922.9 1,952.2 2,020.5 2,123.9
------------- ------------- ------------- ------------- -------------
ENDING FUND BALANCE $ 1,922.9 $ 1,952.2 $ 2,020.5 $ 2,123.9 $ 2,200.0
============= ============= ============= ============= =============
Gross Life Insurance In Force $ 21,311.6 $ 22,575.0 $ 24,422.2 $ 27,358.2 $ 29,774.2
============= ============= ============= ============= =============
9
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
----------------------- -------------------------------------------------
2008 2007 2007 2006 2005 2004
---------- ---------- ---------- ---------- ---------- ----------
LIFE INSURANCE SALES
WHOLESALER CHANNEL
Variable Universal Life $ 6.8 $ 6.4 $ 21.9 $ 16.7 $ 16.1 $ 18.2
Universal Life/Interest Sensitive 101.4 40.2 308.2 221.9 104.4 47.5
Term Life 5.0 5.5 22.2 20.3 16.4 15.3
---------- ---------- ---------- ---------- ---------- ----------
Life Insurance Annualized Premium (1) 113.2 52.1 352.3 258.9 136.9 81.0
========== ========== ========== ========== ========== ==========
Variable Universal Life 1.1 2.4 8.0 8.6 6.4 10.8
Universal Life/Interest Sensitive 11.2 7.8 65.0 61.8 49.2 53.2
---------- ---------- ---------- ---------- ---------- ----------
Life Insurance Single Premium 12.3 10.2 73.0 70.4 55.6 64.0
========== ========== ========== ========== ========== ==========
Variable Universal Life 7.9 8.8 29.9 25.3 22.5 29.0
Universal Life/Interest Sensitive 112.6 48.0 373.2 283.7 153.6 100.7
Term Life 5.0 5.5 22.2 20.3 16.4 15.3
---------- ---------- ---------- ---------- ---------- ----------
Total Wholesaler Life Insurance Premium (2) $ 125.5 $ 62.3 $ 425.3 $ 329.3 $ 192.5 $ 145.0
========== ========== ========== ========== ========== ==========
Gross Life Insurance in Force $ 160,354 $ 146,355 $ 156,889 $ 144,139 $ 134,780 $ 127,466
========== ========== ========== ========== ========== ==========
Average face amount for life insurance sales $ 1.3 $ 1.2 $ 1.2 $ 1.2 $ 1.1 $ 1.0
========== ========== ========== ========== ========== ==========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) $ 13.8 $ 11.4 $ 59.2 $ 33.5 $ 46.5 $ 60.1
Annuity 27.8 54.2 399.7 1,020.2 773.8 152.6
---------- ---------- ---------- ---------- ---------- ----------
Total Private Placement Life and Annuity Deposits $ 41.6 $ 65.6 $ 458.9 $ 1,053.7 $ 820.3 $ 212.7
========== ========== ========== ========== ========== ==========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT (FUM) $ 5,016.0 $ 4,185.0 $ 5,039.2 $ 4,055.5 $ 2,776.4 $ 1,898.5
========== ========== ========== ========== ========== ==========
(1) Annualized Premium represents first year premiums on an annual basis.
(2) Total Premium represents Annualized and Single premiums.
10
THE PHOENIX COMPANIES, INC.
LIFE AND PRIVATE PLACEMENT SALES
First Quarter 2008 (unaudited)
($ in millions)
Quarters ended 2007 2008
-------------------------------------------------------- --------
March June September December March
-------- -------- --------- -------- --------
LIFE INSURANCE SALES
WHOLESALER CHANNEL
Variable Universal Life $ 6.4 $ 4.7 $ 5.1 $ 5.7 $ 6.8
Universal Life/Interest Sensitive 40.2 53.4 86.7 127.9 101.4
Term Life 5.5 5.2 4.4 7.1 5.0
-------- -------- -------- -------- --------
Life Insurance Annualized Premium (1) 52.1 63.3 96.2 140.7 113.2
======== ======== ======== ======== ========
Variable Universal Life 2.4 1.6 1.2 2.8 1.1
Universal Life/Interest Sensitive 7.8 12.3 18.9 26.0 11.2
-------- -------- -------- -------- --------
Life Insurance Single Premium 10.2 13.9 20.1 28.8 12.3
======== ======== ======== ======== ========
Variable Universal Life 8.8 6.3 6.3 8.5 7.9
Universal Life/Interest Sensitive 48.0 65.7 105.6 153.9 112.6
Term Life 5.5 5.2 4.4 7.1 5.0
-------- -------- -------- -------- --------
Total Wholesaler Life Insurance Premium (2) $ 62.3 $ 77.2 $ 116.3 $ 169.5 $ 125.5
======== ======== ======== ======== ========
Gross Life Insurance in Force $146,355 $148,572 $151,282 $156,889 $160,354
======== ======== ======== ======== ========
Average face amount for life insurance sales $ 1.2 $ 1.1 $ 1.2 $ 1.2 $ 1.3
======== ======== ======== ======== ========
PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS
Variable Universal Life (annualized and single) $ 11.4 $ 13.2 $ 7.6 $ 27.0 $ 13.8
Annuity 54.2 146.7 47.5 151.3 27.8
-------- -------- -------- -------- --------
Total Private Placement Life and Annuity Deposits $ 65.6 $ 159.9 $ 55.1 $ 178.3 $ 41.6
======== ======== ======== ======== ========
PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT (FUM) $4,185.0 $4,539.2 $4,561.6 $5,039.2 $5,016.0
======== ======== ======== ======== ========
(1) Annualized Premium represents first year premiums on an annual basis.
(2) Total Premium represents Annualized and Single premiums.
11
THE PHOENIX COMPANIES, INC.
ANNUITIES
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
---------------------- ------------------------------------------------
2008 2007 2007 2006 2005 2004
--------- --------- --------- --------- --------- ---------
PRE-TAX INCOME
Fees $ 18.4 $ 17.3 $ 74.7 $ 66.9 $ 65.4 $ 63.8
Surrender Charges 1.3 1.6 5.6 6.3 7.0 5.8
Interest earned on GIA and Required Interest 19.7 27.1 100.7 131.7 165.1 158.0
--------- --------- --------- --------- --------- ---------
TOTAL REVENUES 39.4 46.0 181.0 204.9 237.5 227.6
--------- --------- --------- --------- --------- ---------
Mortality Cost 2.7 (1.0) (2.0) 5.8 6.6 8.9
DAC Amortized 16.0 12.3 55.7 66.6 62.6 35.7
Interest Credited 13.7 17.3 64.8 87.4 112.1 123.2
Operating Expenses 12.4 10.5 42.7 41.1 44.2 47.1
--------- --------- --------- --------- --------- ---------
TOTAL EXPENSES 44.8 39.1 161.2 200.9 225.5 214.9
--------- --------- --------- --------- --------- ---------
OPERATING INCOME (LOSS) BEFORE TAX $ (5.4) $ 6.9 $ 19.8 $ 4.0 $ 12.0 $ 12.7
========= ========= ========= ========= ========= =========
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 12.9 $ 10.9 $ 48.9 $ 39.7 $ 38.2 $ 42.6
Controllable Expenses and Other 13.5 11.9 49.6 40.8 37.9 48.2
--------- --------- --------- --------- --------- ---------
TOTAL CURRENT EXPENSES 26.4 22.8 98.5 80.5 76.1 90.8
Deferred Acquisition Costs (14.0) (12.3) (55.8) (39.4) (31.9) (43.7)
--------- --------- --------- --------- --------- ---------
OPERATING EXPENSES $ 12.4 $ 10.5 $ 42.7 $ 41.1 $ 44.2 $ 47.1
========= ========= ========= ========= ========= =========
- -----------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT (FUM)
Deposits, excluding Discontinued
Products and Private Placement $ 169.1 $ 131.3 $ 627.0 $ 414.7 $ 312.9 $ 423.3
Surrenders, excluding Discontinued
Products and Private Placement (136.1) (159.0) (609.2) (690.2) (584.4) (490.8)
--------- --------- --------- --------- --------- ---------
Net Sales, excluding Discontinued
Products and Private Placement 33.0 (27.7) 17.8 (275.5) (271.5) (67.5)
Net Sales, Private Placement (79.0) 29.0 228.4 807.4 587.9 121.9
Net Sales, Discontinued Products (116.1) (73.9) (327.7) (684.1) (383.8) (186.3)
--------- --------- --------- --------- --------- ---------
TOTAL NET SALES (162.1) (72.6) (81.5) (152.2) (67.4) (131.9)
Deaths (23.0) (21.2) (77.3) (87.0) (80.2) (81.6)
Interest Credited (215.8) 169.6 783.3 949.6 545.8 628.2
Fees (18.6) (17.8) (72.6) (70.9) (63.0) (59.8)
--------- --------- --------- --------- --------- ---------
Change in FUM (419.5) 58.0 551.9 639.5 335.2 354.9
Beginning Balance 9,229.5 8,677.6 8,677.6 8,038.1 7,702.9 7,348.0
--------- --------- --------- --------- --------- ---------
ENDING FUND BALANCE $8,810.0 $8,735.6 $9,229.5 $8,677.6 $8,038.1 $7,702.9
========= ========= ========= ========= ========= =========
VA Funds in Guaranteed Interest Accounts (1) $ 794.8 $ 955.9 $ 809.3 $1,030.8 $1,553.8 $1,939.1
========= ========= ========= ========= ========= =========
Private Placements Funds (1) $3,935.2 $3,403.2 $3,963.2 $3,302.8 $2,099.3 $1,297.9
========= ========= ========= ========= ========= =========
Discontinued Funds (1) $ 827.3 $1,190.0 $ 946.6 $1,263.3 $1,727.1 $2,080.3
========= ========= ========= ========= ========= =========
(1) Amounts are included in the annuities Funds Under Management (FUM) table
above.
12
THE PHOENIX COMPANIES, INC.
ANNUITIES
First Quarter 2008 (unaudited)
($ in millions)
Quarters ended 2007 2008
------------------------------------------------------------ ------------
March June September December March
------------ ------------ ------------ ------------ ------------
PRE-TAX INCOME
Fees $ 17.3 $ 18.6 $ 18.8 $ 20.0 $ 18.4
Surrender Charges 1.6 1.4 1.4 1.2 1.3
Interest earned on GIA and Required Interest 27.1 26.4 24.6 22.6 19.7
------------ ------------ ------------ ------------ ------------
TOTAL REVENUES 46.0 46.4 44.8 43.8 39.4
------------ ------------ ------------ ------------ ------------
Mortality Cost (1.0) 2.8 2.5 (6.3) 2.7
DAC Amortized 12.3 9.6 12.3 21.5 16.0
Interest Credited 17.3 17.2 15.1 15.2 13.7
Operating Expenses 10.5 11.6 9.8 10.8 12.4
------------ ------------ ------------ ------------ ------------
TOTAL EXPENSES 39.1 41.2 39.7 41.2 44.8
------------ ------------ ------------ ------------ ------------
OPERATING INCOME (LOSS) BEFORE TAX $ 6.9 $ 5.2 $ 5.1 $ 2.6 $ (5.4)
============ ============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Commissions and Concessions $ 10.9 $ 12.3 $ 11.3 $ 14.4 $ 12.9
Controllable Expenses and Other 11.9 13.8 11.4 12.5 13.5
------------ ------------ ------------ ------------ ------------
TOTAL CURRENT EXPENSES 22.8 26.1 22.7 26.9 26.4
Deferred Acquisition Costs (12.3) (14.5) (12.9) (16.1) (14.0)
------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES $ 10.5 $ 11.6 $ 9.8 $ 10.8 $ 12.4
============ ============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
FUNDS UNDER MANAGEMENT (FUM)
Deposits, excluding Discontinued
Products and Private Placement $ 131.3 $ 158.6 $ 140.7 $ 196.4 $ 169.1
Surrenders, excluding Discontinued
Products and Private Placement (159.0) (149.5) (151.5) (149.2) (136.1)
------------ ------------ ------------ ------------ ------------
Net Sales, excluding Discontinued
Products and Private Placement (27.7) 9.1 (10.8) 47.2 33.0
Net Sales, Private Placement 29.0 124.2 (41.4) 116.6 (79.0)
Net Sales, Discontinued Products (73.9) (120.8) (81.6) (51.4) (116.1)
------------ ------------ ------------ ------------ ------------
TOTAL NET SALES (72.6) 12.5 (133.8) 112.4 (162.1)
Deaths (21.2) (22.8) (17.6) (15.7) (23.0)
Interest Credited 169.6 372.5 151.6 89.6 (215.8)
Fees (17.8) (17.6) (17.0) (20.2) (18.6)
------------ ------------ ------------ ------------ ------------
Change in FUM 58.0 344.6 (16.8) 166.1 (419.5)
Beginning Balance 8,677.6 8,735.6 9,080.2 9,063.4 9,229.5
------------ ------------ ------------ ------------ ------------
ENDING FUND BALANCE $ 8,735.6 $ 9,080.2 $ 9,063.4 $ 9,229.5 $ 8,810.0
============ ============ ============ ============ ============
VA Funds in Guaranteed Interest Accounts (1) $ 955.9 $ 891.7 $ 832.2 $ 809.3 $ 794.8
============ ============ ============ ============ ============
Private Placements Funds (1) $ 3,403.2 $ 3,714.6 $ 3,744.1 $ 3,963.2 $ 3,935.2
============ ============ ============ ============ ============
Discontinued Funds (1) $ 1,190.0 $ 1,072.0 $ 993.8 $ 946.6 $ 827.3
============ ============ ============ ============ ============
(1) Amounts are included in the annuities Funds Under Management (FUM) table
above.
13
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
-------------------------- ------------------------------------------------------
2008 2007 2007 2006 2005 2004
----------- ------------ ----------- ----------- ------------ ------------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 359.1 $ 364.3 $ 358.9 $ 364.2 $ 353.0 $ 332.5
Universal Life 898.1 565.4 796.4 533.9 354.7 262.0
Variable Annuities 285.8 275.9 282.6 275.0 281.3 299.0
Fixed Annuities 10.1 19.4 12.8 20.3 38.8 46.0
Participating 576.7 561.8 566.9 559.0 544.2 577.0
Offset for Unrealized Investment
(Gains) Losses 107.4 (5.0) 63.6 0.3 (16.0) (86.6)
----------- ------------ ----------- ----------- ------------ ------------
Total $ 2,237.2 $ 1,781.8 $ 2,081.2 $ 1,752.7 $ 1,556.0 $ 1,429.9
=========== ============ =========== =========== ============ ============
- ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM DEATH
BENEFITS
Death Benefit in Excess of Fund Value $ 336.3 $ 225.2 $ 202.4 $ 238.8 $ 335.5 $ 441.1
Death Benefit in Excess of Fund Value,
Net of Reinsurance 135.9 48.3 46.6 51.4 82.1 123.5
Statutory Reserve, Net of Reinsurance 14.6 13.3 12.9 13.2 13.8 15.0
VARIABLE ANNUITY GUARANTEED INCOME BENEFITS
Account Balance $ 658.1 $ 654.5 $ 716.8 $ 620.1 $ 465.8 $ 344.8
Statutory Reserve 7.7 5.0 6.9 4.4 2.2 0.8
VARIABLE ANNUITY GUARANTEED ACCUMULATION
BENEFITS
Account Balance $ 386.0 $ 246.9 $ 389.8 $ 210.6 $ 72.6
Statutory Reserve 2.8 1.1 2.3 0.8 0.3
VARIABLE ANNUITY GUARANTEED WITHDRAWAL
BENEFITS
Account Balance $ 251.8 $ 49.1 $ 214.6 $ 30.1 $ 1.1
Statutory Reserve 1.2 0.1 0.7 0.1
VARIABLE ANNUITY GUARANTEED PAYOUT
ANNUITY FLOOR
Account Balance $ 37.6 $ 47.5 $ 43.4 $ 49.8 $ 49.9
Statutory Reserve 3.8 2.2 2.2 2.1 1.9
14
THE PHOENIX COMPANIES, INC.
SUPPLEMENTARY LIFE AND ANNUITY INFORMATION
First Quarter 2008 (unaudited)
($ in millions)
Quarters ended 2007 2008
----------------------------------------------------------- -----------
March June September December March
------------ ----------- ----------- ----------- -----------
DEFERRED ACQUISITION COSTS
Variable Universal Life $ 364.3 $ 362.2 $ 359.4 $ 358.9 $ 359.1
Universal Life 565.4 601.1 673.4 796.4 898.1
Variable Annuities 275.9 283.3 286.1 282.6 285.8
Fixed Annuities 19.4 17.3 15.4 12.8 10.1
Participating 561.8 564.3 565.3 566.9 576.7
Offset for Unrealized Investment
Gains and Losses (5.0) 31.8 48.7 63.6 107.4
------------ ----------- ----------- ----------- -----------
Total $ 1,781.8 $ 1,860.0 $ 1,948.3 $ 2,081.2 $ 2,237.2
============ =========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GUARANTEED MINIMUM
DEATH BENEFITS
Death Benefit in Excess of Fund Value $ 225.2 $ 199.9 $ 189.3 $ 202.4 $ 336.3
Death Benefit in Excess of Fund Value,
Net of Reinsurance 48.3 40.7 37.2 46.6 135.9
Statutory Reserve, Net of Reinsurance 13.3 12.9 12.6 12.9 14.6
VARIABLE ANNUITY GUARANTEED INCOME BENEFITS
Account Balance $ 654.5 $ 702.4 $ 695.3 $ 716.8 $ 658.1
Statutory Reserve 5.0 5.6 6.2 6.9 7.7
VARIABLE ANNUITY GUARANTEED ACCUMULATION BENEFITS
Account Balance $ 246.9 $ 302.5 $ 324.2 $ 389.8 $ 386.0
Statutory Reserve 1.1 1.5 1.8 2.3 2.8
VARIABLE ANNUITY GUARANTEED WITHDRAWAL BENEFITS
Account Balance $ 49.1 $ 81.6 $ 103.7 $ 214.6 $ 251.8
Statutory Reserve 0.1 0.2 0.4 0.7 1.2
VARIABLE ANNUITY GUARANTEED PAYOUT ANNUITY FLOOR
Account Balance $ 47.5 $ 47.6 $ 46.6 $ 43.4 $ 37.6
Statutory Reserve 2.2 1.9 2.0 2.2 3.8
15
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
-------------------------- ------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------ ------------ ------------ ------------ ------------ ------------
OPERATING INCOME
Investment Management Fees $ 32.8 $ 36.9 $ 147.4 $ 154.1 $ 182.1 $ 219.0
Mutual Funds - Ancillary Fees 13.7 14.3 59.8 49.4 41.1 38.8
Other Revenue 0.9 2.2 7.4 5.3 4.9 7.2
------------ ------------ ------------ ------------ ------------ ------------
Total Revenues 47.4 53.4 214.6 208.8 228.1 265.0
------------ ------------ ------------ ------------ ------------ ------------
Employment Expenses 20.3 24.0 85.0 89.4 103.9 132.6
Distribution & Admin Expenses 11.4 11.6 50.1 41.3 35.8 32.9
Other Operating Expenses Direct (1) 6.8 10.1 43.8 43.8 50.6 53.0
Other Operating Expenses Indirect (1) 4.5
Amortization of Intangibles 7.5 7.6 30.4 32.0 33.2 33.8
Intangible Asset Impairments 10.5 32.5 10.6
------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses 61.0 53.3 209.3 239.0 234.1 252.3
------------ ------------ ------------ ------------ ------------ ------------
Management Income (Loss) (13.6) 0.1 5.3 (30.2) (6.0) 12.7
Other Income - Net 0.3 0.5 2.1 1.6 2.2 1.7
Minority Interest (6.7) (14.3)
------------ ------------ ------------ ------------ ------------ ------------
Operating Income (Loss), before income taxes (13.3) 0.6 7.4 (28.6) (10.5) 0.1
Applicable Income Taxes (Benefit) (4.6) 0.9 3.3 (10.7) (4.7) 2.3
------------ ------------ ------------ ------------ ------------ ------------
OPERATING INCOME (LOSS) (8.7) (0.3) 4.1 (17.9) (5.8) (2.2)
Net Realized Investment Gains (Losses) (0.6) 0.1 (0.5) 0.8 (0.3) 1.8
Management Restructuring and Early
Retirement Costs (8.7) (8.3) (1.2)
------------ ------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) $ (9.3) $ (0.2) $ 3.6 $ (25.8) $ (14.4) $ (1.6)
============ ============ ============ ============ ============ ============
Reconciliation of Operating
Income to Earnings Before
Income Taxes, Depreciation and
Amortization (EBITDA) Operating Income
(Loss), before income taxes $ (13.3) $ 0.6 $ 7.4 $ (28.6) $ (10.5) $ 0.1
Adjustments for:
Intangible asset amortization
and impairments 18.0 7.6 30.4 64.5 43.8 33.8
Depreciation 0.1 0.2 1.1 1.0 1.7 2.2
------------ ------------ ------------ ------------ ------------ ------------
EBITDA $ 4.8 $ 8.4 $ 38.9 $ 36.9 $ 35.0 $ 36.1
============ ============ ============ ============ ============ ============
(1) Effective for the 1st quarter of 2008, other operating expenses were split
into direct and indirect, where indirect expenses represent expense charge-
backs and allocations from its parent company and affiliates. These had
previously been reported as a component of total other operating expenses.
16
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT
First Quarter 2008 (unaudited)
($ in millions)
Quarters ended 2007 2008
------------------------------------------------------------ ------------
March June September December March
------------ ----------- ------------ ------------ ------------
OPERATING INCOME
Investment Management Fees $ 36.9 $ 37.1 $ 36.9 $ 36.5 $ 32.8
Mutual Funds - Ancillary Fees 14.3 15.3 15.1 15.1 13.7
Other Revenue 2.2 1.8 1.9 1.5 0.9
------------ ----------- ------------ ------------ ------------
Total Revenues 53.4 54.2 53.9 53.1 47.4
------------ ----------- ------------ ------------ ------------
Employment Expenses 24.0 20.4 20.8 19.8 20.3
Distribution & Admin Expenses 11.6 12.7 12.9 12.9 11.4
Other Operating Expenses Direct (1) 10.1 11.9 10.6 11.2 6.8
Other Operating Expenses Indirect (1) 4.5
Amortization of Intangibles 7.6 7.5 7.5 7.8 7.5
Intangible Asset Impairments 10.5
------------ ----------- ------------ ------------ ------------
Total Operating Expenses 53.3 52.5 51.8 51.7 61.0
------------ ----------- ------------ ------------ ------------
Management Income (Loss) 0.1 1.7 2.1 1.4 (13.6)
Other Income - Net 0.5 0.6 0.5 0.5 0.3
------------ ----------- ------------ ------------ ------------
Operating Income (Loss), before income taxes 0.6 2.3 2.6 1.9 (13.3)
Applicable Income Taxes (Benefit) 0.9 1.0 1.2 0.2 (4.6)
------------ ----------- ------------ ------------ ------------
OPERATING INCOME (LOSS) (0.3) 1.3 1.4 1.7 (8.7)
Net Realized Investment Gains (Losses) 0.1 0.2 (0.2) (0.6) (0.6)
------------ ----------- ------------ ------------ ------------
NET INCOME (LOSS) $ (0.2) $ 1.5 $ 1.2 $ 1.1 $ (9.3)
============ ============ ============ ============ ============
Reconciliation of Operating Income to Earnings
Before Income Taxes, Depreciation and
Amortization (EBITDA) Operating Income (Loss),
before income taxes $ 0.6 $ 2.3 $ 2.6 $ 1.9 $ (13.3)
Adjustments for:
Intangible asset amortization and impairments 7.6 7.5 7.5 7.8 18.0
Depreciation 0.2 0.5 0.2 0.2 0.1
------------ ----------- ------------ ------------ ------------
EBITDA $ 8.4 $ 10.3 $ 10.3 $ 9.9 $ 4.8
============ ============ ============ ============ ============
(1) Effective for the 1st quarter of 2008, other operating expenses were split
into direct and indirect, where indirect expenses represent expense charge-
backs and allocations from its parent company and affiliates. These had
previously been reported as a component of total other operating expenses.
17
THE PHOENIX COMPANIES, INC.
ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
-------------------------- ------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------ ------------ ------------ ------------ ------------ ------------
RETAIL PRODUCTS:
Managed Accounts
Deposits and reinvestments $ 278.9 $ 290.4 $ 1,212.3 $ 1,141.2 $ 1,760.3 $ 2,109.9
Redemptions and withdrawals (585.6) (728.1) (2,668.6) (4,297.5) (5,722.8) (5,203.0)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (306.7) (437.7) (1,456.3) (3,156.3) (3,962.5) (3,093.1)
Performance (516.3) 125.6 144.4 593.9 (62.6) 950.3
Acquisitions (dispositions) / Other (81.5) 71.0 (158.0)
------------ ------------ ------------ ------------ ------------ ------------
Net Change in AUM (823.0) (312.1) (1,393.4) (2,491.4) (4,183.1) (2,142.8)
Assets under management, beginning of period 5,447.7 6,841.1 6,841.1 9,332.5 13,515.6 15,658.4
------------ ------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 4,624.7 $ 6,529.0 $ 5,447.7 $ 6,841.1 $ 9,332.5 $ 13,515.6
============ ============ ============ ============ ============ ============
Mutual Funds
Deposits and reinvestments $ 682.7 $ 1,160.7 $ 3,596.2 $ 2,567.5 $ 2,030.4 $ 1,673.2
Redemptions and withdrawals (900.5) (881.8) (3,826.2) (2,828.6) (2,444.0) (2,004.5)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (217.8) 278.9 (230.0) (261.1) (413.6) (331.3)
Performance (999.6) 298.5 338.6 1,522.2 184.1 805.9
Money market funds net change in AUM (1,027.2) (364.2) 502.5 (1,382.8) (28.4) (28.9)
Acquisitions (dispositions) / Other (27.6) (14.0) (143.9) 9,838.3 120.1 105.7
------------ ------------ ------------ ------------ ------------ ------------
Net Change in AUM (2,272.2) 199.2 467.2 9,716.6 (137.8) 551.4
Assets under management, beginning of period 22,331.0 21,863.8 21,863.8 12,147.2 12,285.0 11,733.6
------------ ------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 20,058.8 $ 22,063.0 $ 22,331.0 $ 21,863.8 $ 12,147.2 $ 12,285.0
============ ============ ============ ============ ============ ============
INSTITUTIONAL PRODUCTS:
Deposits and reinvestments $ 334.3 $ 281.3 $ 1,237.6 $ 1,609.2 $ 5,545.1 $ 2,885.2
Redemptions and withdrawals (4,144.2) (513.3) (2,002.1) (3,504.4) (6,599.1) (5,389.2)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (3,809.9) (232.0) (764.5) (1,895.2) (1,054.0) (2,504.0)
Performance (76.9) 233.8 559.3 1,089.2 367.2 1,140.5
Acquisitions (dispositions)/Other (2) (70.0) (261.9) (895.2) (332.6) (63.3) 234.3
------------ ------------ ------------ ------------ ------------ ------------
Net Change in AUM (3,956.8) (260.1) (1,100.4) (1,138.6) (750.1) (1,129.2)
Assets under management, beginning of period 11,194.4 12,294.8 12,294.8 13,433.4 14,183.5 15,312.7
------------ ------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 7,237.6 $ 12,034.7 $ 11,194.4 $ 12,294.8 $ 13,433.4 $ 14,183.5
============ ============ ============ ============ ============ ============
STRUCTURED FINANCE PRODUCTS:
Deposits and reinvestments $ 0.0 $ 1,500.0 $ 2,290.0 $ 2,423.5 $ 1,002.3 $ 1.7
Redemptions and withdrawals (25.9) (299.0) (352.3) (1,141.7) (1,157.9) (659.2)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (25.9) 1,201.0 1,937.7 1,281.8 (155.6) (657.5)
Performance (951.1) (73.7) (2,325.5) 171.5 (258.9) 26.0
------------ ------------ ------------ ------------ ------------ ------------
Net Change in AUM (977.0) 1,127.3 (387.8) 1,453.3 (414.5) (631.5)
Assets under management, beginning of period 3,575.3 3,963.1 3,963.1 2,509.8 2,924.3 3,555.8
------------ ------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 2,598.3 $ 5,090.4 $ 3,575.3 $ 3,963.1 $ 2,509.8 $ 2,924.3
============ ============ ============ ============ ============ ============
TOTAL:
Deposits and reinvestments $ 1,295.9 $ 3,232.4 $ 8,336.1 $ 7,741.4 $ 10,338.1 $ 6,670.0
Redemptions and withdrawals (5,656.2) (2,422.2) (8,849.2) (11,772.2) (15,923.8) (13,255.9)
------------ ------------ ------------ ------------ ------------ ------------
Net Flows (4,360.3) 810.2 (513.1) (4,030.8) (5,585.7) (6,585.9)
Performance (2,543.9) 584.2 (1,283.2) 3,376.8 229.8 2,922.7
Money market funds net change in AUM (1,027.2) (364.2) 502.5 (1,382.8) (28.4) (28.9)
Acquisitions (dispositions)/Other (97.6) (275.9) (1,120.6) 9,576.7 (101.2) 340.0
------------ ------------ ------------ ------------ ------------ ------------
Net Change in AUM (8,029.0) 754.3 (2,414.4) 7,539.9 (5,485.5) (3,352.1)
Assets under management, beginning of period 42,548.4 44,962.8 44,962.8 37,422.9 42,908.4 46,260.5
------------ ------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 34,519.4 $ 45,717.1 $ 42,548.4 $ 44,962.8 $ 37,422.9 $ 42,908.4
============ ============ ============ ============ ============ ============
Variable Products Change in AUM (included
in Institutional Products) $ (32.9) $ (10.2) $ (950.3) $ 106.5 $ (342.3) $ 211.6
============ ============ ============ ============ ============ ============
Money Market balances(1) $ 5,176.3 $ 5,336.9 $ 6,203.6 $ 5,701.1 $ 101.4 $ 129.8
============ ============ ============ ============ ============ ============
(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
First Quarter 2008 (unaudited)
($ in millions)
2007 2008
------------------------------------------------------------ ------------
March June September December March
------------ ------------ ------------ ------------ ------------
RETAIL PRODUCTS:
Managed Accounts
Deposits and reinvestments $ 290.4 $ 365.5 $ 299.0 $ 257.4 $ 278.9
Redemptions and withdrawals (728.1) (830.6) (482.8) (627.1) (585.6)
------------ ------------ ------------ ------------ ------------
Net Flows (437.7) (465.1) (183.8) (369.7) (306.7)
Performance 125.6 74.8 64.4 (120.4) (516.3)
Acquisitions (dispositions) / Other (81.5)
------------ ------------ ------------ ------------ ------------
Net Change in AUM (312.1) (390.3) (119.4) (571.6) (823.0)
Assets under management, beginning of period 6,841.1 6,529.0 6,138.7 6,019.3 5,447.7
------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 6,529.0 $ 6,138.7 $ 6,019.3 $ 5,447.7 $ 4,624.7
============ ============ ============ ============ ============
Mutual Funds
Deposits and reinvestments $ 1,160.7 $ 1,169.3 $ 701.2 $ 565.0 $ 682.7
Redemptions and withdrawals (881.8) (978.9) (1,023.0) (942.5) (900.5)
------------ ------------ ------------ ------------ ------------
Net Flows 278.9 190.4 (321.8) (377.5) (217.8)
Performance 298.5 51.0 188.5 (199.4) (999.6)
Money market funds net change in AUM (364.2) 214.8 1,939.1 (1,287.2) (1,027.2)
Acquisitions (dispositions) / Other (14.0) (52.0) 13.6 (91.5) (27.6)
------------ ------------ ------------ ------------ ------------
Net Change in AUM 199.2 404.2 1,819.4 (1,955.6) (2,272.2)
Assets under management, beginning of period 21,863.8 22,063.0 22,467.2 24,286.6 22,331.0
------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 22,063.0 $ 22,467.2 $ 24,286.6 $ 22,331.0 $ 20,058.8
============ ============ ============ ============ ============
INSTITUTIONAL PRODUCTS:
Deposits and reinvestments $ 281.3 $ 364.4 $ 260.2 $ 331.7 $ 334.3
Redemptions and withdrawals (513.3) (474.9) (566.6) (447.3) (4,144.2)
------------ ------------ ------------ ------------ ------------
Net Flows (232.0) (110.5) (306.4) (115.6) (3,809.9)
Performance 233.8 17.4 251.6 56.5 (76.9)
Acquisitions (dispositions) / Other (261.9) 69.1 (708.2) 5.8 (70.0)
------------ ------------ ------------ ------------ ------------
Net Change in AUM (260.1) (24.0) (763.0) (53.3) (3,956.8)
Assets under management, beginning of period 12,294.8 12,034.7 12,010.7 11,247.7 11,194.4
------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 12,034.7 $ 12,010.7 $ 11,247.7 $ 11,194.4 $ 7,237.6
============ ============ ============ ============ ============
STRUCTURED FINANCE PRODUCTS:
Deposits and reinvestments $ 1,500.0 $ 790.0 $ 0.0 $ 0.0 $ 0.0
Redemptions and withdrawals (299.0) (20.6) (17.6) (15.1) (25.9)
------------ ------------ ------------ ------------ ------------
Net Flows 1,201.0 769.4 (17.6) (15.1) (25.9)
Performance (73.7) (117.9) (809.3) (1,324.6) (951.1)
------------ ------------ ------------ ------------ ------------
Net Change in AUM 1,127.3 651.5 (826.9) (1,339.7) (977.0)
Assets under management, beginning of period 3,963.1 5,090.4 5,741.9 4,915.0 3,575.3
------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 5,090.4 $ 5,741.9 $ 4,915.0 $ 3,575.3 $ 2,598.3
============ ============ ============ ============ ============
TOTAL:
Deposits and reinvestments $ 3,232.4 $ 2,689.2 $ 1,260.4 $ 1,154.1 $ 1,295.9
Redemptions and withdrawals (2,422.2) (2,305.0) (2,090.0) (2,032.0) (5,656.2)
------------ ------------ ------------ ------------ ------------
Net Flows 810.2 384.2 (829.6) (877.9) (4,360.3)
Performance 584.2 25.3 (304.8) (1,587.9) (2,543.9)
Money market funds net change in AUM (364.2) 214.8 1,939.1 (1,287.2) (1,027.2)
Acquisitions (dispositions) / Other (275.9) 17.1 (694.6) (167.2) (97.6)
------------ ------------ ------------ ------------ ------------
Net Change in AUM 754.3 641.4 110.1 (3,920.2) (8,029.0)
Assets under management, beginning of period 44,962.8 45,717.1 46,358.5 46,468.6 42,548.4
------------ ------------ ------------ ------------ ------------
Assets under management, end of period $ 45,717.1 $ 46,358.5 $ 46,468.6 $ 42,548.4 $ 34,519.4
============ ============ ============ ============ ============
Variable Products Change in AUM (included
in Institutional Products) $ (10.2) $ 5.4 $ (897.3) $ (48.2) $ (32.9)
============ ============ ============ ============ ============
Money Market balances (1) $ 5,336.9 $ 5,551.7 $ 7,490.8 $ 6,203.6 $ 5,176.3
============ ============ ============ ============ ============
(1) Money Market balances included in Mutual Funds above.
19
THE PHOENIX COMPANIES, INC.
VENTURE CAPITAL SEGMENT(1)
First Quarter 2008 (unaudited)
($ in millions)
December 31,
------------------------------------
2005 2004
---------- ----------
OPERATING INCOME
Operating Gain (Loss) $ 3.5 $ (1.7)
Realized Gains on Cash and Stock Distributions 21.9 7.4
Change in Unrealized Gains (Losses) on Investments Held in Partnerships (10.6) 13.6
---------- ----------
Equity in Partnership Earnings, before income taxes 14.8 19.3
Applicable Income Taxes 5.2 6.8
---------- ----------
Operating Income $ 9.6 $ 12.5
========== ==========
- ------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL INVESTMENTS
CONTRIBUTIONS (DOLLARS INVESTED) $ 27.6 $ 37.7
Equity In Earnings of Partnerships 14.8 19.3
Distributions (68.2) (50.4)
Sale of Partnership Interests and Transfer to Closed Block (91.5)
Realized Loss on Sale of Partnership Interests and Transfer to Closed Block (13.9)
---------- ----------
Change in Venture Capital Investments (131.2) 6.6
Beginning Balance 202.9 196.3
---------- ----------
Ending Balance $ 71.7 $ 202.9
========== ==========
(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.
CORPORATE AND OTHER
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
-------------------------- ------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------ ------------ ------------ ------------ ------------ ------------
OPERATING INCOME
Corporate Investment Income $ 0.9 $ 1.5 $ 6.7 $ 4.6 $ (0.8) $ 0.4
Interest Expense on Indebtedness (10.2) (9.5) (44.2) (49.2) (46.6) (40.8)
Corporate Expenses (11.2) (2.9) (10.8) (17.3) (24.6) (18.9)
Other (0.1) 1.7 0.8 (0.1) 0.7 (1.5)
------------ ------------ ------------ ------------ ------------ ------------
Operating Loss, before income taxes (20.6) (9.2) (47.5) (62.0) (71.3) (60.8)
Applicable Income Tax (Benefit) (8.1) (3.6) (29.5) (21.2) (26.9) (23.0)
------------ ------------ ------------ ------------ ------------ ------------
OPERATING LOSS (12.5) (5.6) (18.0) (40.8) (44.4) (37.8)
Net Realized Investment Gains (Losses) (1.1) 11.8 (5.7) 21.0 4.4 (0.4)
Realized and Unrealized Gains (Losses)
on Equity Investment in Aberdeen (7.0) 55.9
Share of Aberdeen's Extraordinary
Charge for FSA Settlement (14.7)
Surplus Notes Tender Costs (6.4)
Management Restructuring and Early
Retirement Costs (0.4) (4.1) (13.4)
------------ ------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) $ (13.6) $ 6.2 $ (23.7) $ (20.2) $ (51.1) $ (16.8)
============ ============ ============ ============ ============ ============
21
THE PHOENIX COMPANIES, INC.
CORPORATE AND OTHER
First Quarter 2008 (unaudited)
($ in millions)
Quarters Ended 2007 2008
------------------------------------------------------------ ------------
March June September December March
------------ ------------ ------------ ------------ ------------
OPERATING INCOME
Corporate Investment Income $ 1.5 $ 1.5 $ 1.8 $ 1.9 $ 0.9
Interest Expense on Indebtedness (9.5) (11.6) (11.5) (11.6) (10.2)
Corporate Expenses (2.9) (5.5) (1.7) (0.7) (11.2)
Other 1.7 (0.6) 0.1 (0.4) (0.1)
------------ ------------ ------------ ------------ ------------
Operating Loss, before income taxes (9.2) (16.2) (11.3) (10.8) (20.6)
Applicable Income Tax (Benefit) (3.6) (14.8) (6.2) (4.9) (8.1)
------------ ------------ ------------ ------------ ------------
OPERATING LOSS (5.6) (1.4) (5.1) (5.9) (12.5)
Net Realized Investment Gains (Losses) 11.8 (1.8) (1.0) (14.7) (1.1)
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) $ 6.2 $ (3.2) $ (6.1) $ (20.6) $ (13.6)
============ ============ ============ ============ ============
22
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT(1)
First Quarter 2008 (unaudited)
($ in millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------- ------------- ------------- ------------- ------------- -------------
REVENUES
Premiums $ 180.2 $ 194.7 $ 798.3 $ 839.7 $ 928.7 $ 990.6
Insurance, Investment Management and
Product Fees 178.2 150.8 653.2 560.6 501.8 550.0
Mutual Fund Ancillary Fees and Other
Revenue 14.6 16.6 67.7 54.8 46.5 46.9
Net Investment Income 248.5 276.5 1,060.4 1,049.9 1,100.3 1,074.0
Unrealized Gain on Trading Equity
Securities 85.9
Net Realized Investment Gains (Losses) (47.5) 24.5 (6.8) 76.5 34.2 10.8
------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 574.0 663.1 2,572.8 2,581.5 2,611.5 2,758.2
------------- ------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy
Liabilities 351.6 317.3 1,303.7 1,331.5 1,376.7 1,422.2
Policyholder Dividends 73.7 103.8 380.0 399.1 364.4 404.7
Policy Acquisition Cost Amortization 30.0 43.5 198.7 148.7 132.1 110.2
Intangible Asset Impairments 10.5 32.5 10.6
Intangible Asset Amortization 7.5 7.6 30.4 32.0 33.8 33.8
Interest Expense on Indebtedness 10.2 9.5 44.2 49.2 46.6 40.8
Interest Expense on Non-recourse
Collateralized Obligations 3.2 4.0 15.4 18.7 29.4 33.6
Other Operating Expenses 117.4 106.8 439.9 428.4 482.9 565.8
------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 604.1 592.5 2,412.3 2,440.1 2,476.5 2,611.1
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations
before Income Taxes, Minority Interest
and equity in undistributed losses of
affiliates (30.1) 70.6 160.5 141.4 135.0 147.1
Applicable Income Taxes (Benefit) (11.1) 20.8 33.1 42.6 27.1 46.0
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations
before Minority Interest and equity in
undistributed losses of affiliates (19.0) 49.8 127.4 98.8 107.9 101.1
Equity in undistributed losses of
affiliates (10.4)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations (19.0) 49.8 127.4 98.8 107.9 90.7
Discontinued Operations:
Income (Loss) from Discontinued
Operations 0.8 (3.5) 1.1 0.5 (4.3)
------------- ------------- ------------- ------------- ------------- -------------
Net Income (Loss) $ (19.0) $ 50.6 $ 123.9 $ 99.9 $ 108.4 $ 86.4
============= ============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
23
THE PHOENIX COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT(1)
First Quarter 2008 (unaudited)
($ in millions)
Quarters Ended 2007 2008
---------------------------------------------------------- -------------
March June September December March
------------- ------------- ------------- ------------- -------------
REVENUES
Premiums $ 194.7 $ 193.1 $ 197.5 $ 213.0 $ 180.2
Insurance, Investment Management and Product Fees 150.8 155.8 164.5 182.2 178.2
Mutual Fund Ancillary Fees and Other Revenue 16.6 17.2 17.0 16.8 14.6
Net Investment Income 276.5 262.8 261.1 260.0 248.5
Net Realized Investment Gains (Losses) 24.5 (1.9) 3.9 (33.2) (47.5)
------------- ------------- ------------- ------------- -------------
Total Revenues 663.1 627.0 644.0 638.8 574.0
------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and Increase in Policy Liabilities 317.3 316.5 330.8 339.1 351.6
Policyholder Dividends 103.8 90.3 98.1 87.8 73.7
Policy Acquisition Cost Amortization 43.5 45.9 47.1 62.2 30.0
Intangible Asset Impairments 10.5
Intangible Asset Amortization 7.6 7.5 7.5 7.8 7.5
Interest Expense on Indebtedness 9.5 11.6 11.5 11.6 10.2
Interest Expense on Non-recourse Collateralized
Obligations 4.0 4.1 3.9 3.4 3.2
Other Operating Expenses 106.8 116.0 102.3 114.9 117.4
------------- ------------- ------------- ------------- -------------
Total Expenses 592.5 591.9 601.2 626.8 604.1
------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations before Income
Taxes 70.6 35.1 42.8 12.0 (30.1)
Applicable Income Taxes (Benefit) 20.8 2.3 7.2 2.8 (11.1)
------------- ------------- ------------- ------------- -------------
Income (Loss) from Continuing Operations 49.8 32.8 35.6 9.2 (19.0)
Discontinued Operations:
Income (Loss) from Discontinued Operations 0.8 0.4 (4.7)
------------- ------------- ------------- ------------- -------------
Net Income (Loss) $ 50.6 $ 33.2 $ 35.6 $ 4.5 $ (19.0)
============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with
the current presentation.
24
THE PHOENIX COMPANIES, INC.
CONSOLIDATING FIRST QUARTER 2008 INCOME STATEMENT
First Quarter 2008 (unaudited)
($ in millions)
Year-to-Date March 31, 2008 Operating Income Exclusions from Operating Income
-------------------------------------------- -------------------------------------------
Corporate Realized
Asset & Investment Intra-Segment
Consolidated Life & Annuity Management Other Gains/Losses Other Eliminations
------------- -------------- ------------- ------------- ------------- ------------- -------------
REVENUES
Premiums $ 180.2 $ 180.2
Insurance, Investment
Management and
Product Fees 178.2 145.6 $ 32.8 $ (0.1) $ (0.1)
Mutual Fund Ancillary
Fees and Other Revenue 14.6 14.6
Net Investment Income 248.5 239.7 0.3 $ 5.8 (0.6) 3.3
Net Realized Investment
Losses (47.5) $ (47.5)
------------- -------------- ------------- ------------- ------------- ------------- -------------
Total Revenues 574.0 565.5 47.7 5.8 (47.5) (0.7) 3.2
------------- -------------- ------------- ------------- ------------- ------------- -------------
BENEFITS AND EXPENSES
Policy Benefits and
Increase in Policy
Liabilities 351.6 350.0 1.6
Policyholder Dividends 73.7 89.2 (15.5)
Policy Acquisition Cost
Amortization 30.0 36.0 (6.0)
Intangible Asset
Amortization 7.5 7.5
Intangible Asset
Impairments 10.5 10.5
Interest Expense
on Indebtedness 10.2 10.2
Interest Expense on
Non-recourse
Collateralized
Obligations 3.2 3.2
Other Operating Expenses 117.4 64.1 43.0 11.4 (3.6) (0.7) 3.2
------------- -------------- ------------- ------------- ------------- ------------- -------------
Total Expenses 604.1 539.3 61.0 26.4 (25.1) (0.7) 3.2
------------- -------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from
Continuing Operations
before Income Taxes (30.1) 26.2 (13.3) (20.6) (22.4) 0.0 0.0
Applicable Income Taxes
(Benefit) (11.1) 9.7 (4.6) (8.1) (8.1)
------------- -------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) from
Continuing Operations $ (19.0) $ 16.5 $ (8.7) $ (12.5) $ (14.3) $ 0.0 $ 0.0
============= ============== ============= ============= ============= ============= =============
25
THE PHOENIX COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY
First Quarter 2008 (unaudited)
($ in millions, except par value)
March December 31,
------------- ----------------------------------------------------------
2008 2007 2006 2005 2004
------------- ------------- ------------- ------------- -------------
ASSETS:
Available-for-Sale Debt Securities, at fair value $ 11,617.4 $ 11,970.0 $ 12,696.8 $ 13,404.6 $ 13,476.3
Available-for-Sale Equity Securities, at fair value 204.9 205.3 187.1 181.8 304.3
Trading Equity Securities, at fair value 87.3
Policy Loans, at unpaid principal balances 2,402.9 2,380.5 2,322.0 2,245.0 2,196.7
Venture Capital Partnerships, at equity in net assets 195.4 173.7 116.8 145.1 255.3
Other Investments 430.5 507.3 380.2 439.2 579.7
Fair value option investments 112.8
------------- ------------- ------------- ------------- -------------
14,963.9 15,236.8 15,702.9 16,415.7 16,899.6
Available-for-Sale Investments Pledged as Collateral,
at fair value 185.9 219.1 267.8 304.4 1,278.8
------------- ------------- ------------- ------------- -------------
Total Investments 15,149.8 15,455.9 15,970.7 16,720.1 18,178.4
Cash and Cash Equivalents 362.3 577.7 404.9 301.5 435.0
Deferred Policy Acquisition Costs 2,237.2 2,081.2 1,752.7 1,556.0 1,429.9
Goodwill and Other Intangible Assets 675.0 692.7 708.6 763.5 735.6
Other Assets 620.8 579.1 711.7 649.0 630.1
Separate Account Assets 10,344.2 10,820.3 9,458.6 7,722.2 6,950.3
------------- ------------- ------------- ------------- -------------
Total Assets $ 29,389.3 $ 30,206.9 $ 29,007.2 $ 27,712.3 $ 28,359.3
============= ============= ============= ============= =============
LIABILITIES:
Policy Liabilities and Accruals $ 13,803.1 $ 13,791.2 $ 13,515.6 $ 13,246.2 $ 13,132.4
Policyholder Deposit Funds 1,723.3 1,808.9 2,228.4 3,060.7 3,492.4
Indebtedness 474.0 627.7 685.4 751.9 690.8
Stock Purchase Contracts 131.9
Other Liabilities 513.1 551.0 539.1 534.3 583.9
Non-recourse Collateralized Debt Obligation
Liabilities 270.5 317.9 344.0 389.9 1,355.2
Separate Account Liabilities 10,344.2 10,820.3 9,458.6 7,722.2 6,950.3
------------- ------------- ------------- ------------- -------------
Total Liabilities and minority interest 27,128.2 27,917.0 26,771.1 25,705.2 26,336.9
------------- ------------- ------------- ------------- -------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 1.0 billion shares
authorized; 114,381,597 shares outstanding
(March 31, 2008) 1.3 1.3 1.3 1.1 1.0
Additional paid-in capital 2,619.5 2,616.1 2,600.2 2,437.6 2,431.6
Accumulated Earnings (Deficit) (31.7) (9.8) (111.3) (193.1) (285.7)
Treasury stock, at cost: 11,313,564 shares
(March 31, 2008) (179.5) (179.5) (179.5) (179.5) (182.6)
Accumulated Other Comprehensive Income (Loss) (148.5) (138.2) (74.6) (59.0) 58.1
------------- ------------- ------------- ------------- -------------
Total Stockholders' Equity 2,261.1 2,289.9 2,236.1 2,007.1 2,022.4
------------- ------------- ------------- ------------- -------------
Total Liabilities, Minority Interest and
Stockholders' Equity $ 29,389.3 $ 30,206.9 $ 29,007.2 $ 27,712.3 $ 28,359.3
============= ============= ============= ============= =============
26
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY(1)
First Quarter 2008 (unaudited)
($ millions)
Total Debt Securities Public Debt Securities Private Debt Securities
---------------------------- ---------------------------- ----------------------------
3/31/08 12/31/07 3/31/08 12/31/07 3/31/08 12/31/07
------------- ------------- ------------- ------------- ------------- -------------
DEBT SECURITIES BY CREDIT QUALITY
(CARRYING VALUE)
AAA/AA/A $ 7,195.3 $ 7,473.6 $ 5,669.0 $ 5,950.6 $ 1,526.3 $ 1,523.0
BBB 3,502.1 3,567.7 1,924.1 1,997.9 1,578.0 1,569.8
------------- ------------- ------------- ------------- ------------- -------------
Total Investment Grade 10,697.4 11,041.3 7,593.1 7,948.5 3,104.3 3,092.8
------------- ------------- ------------- ------------- ------------- -------------
BB 572.0 604.3 483.7 507.7 88.3 96.6
B 225.4 227.3 159.7 179.3 65.7 48.0
CCC and Lower 106.8 84.0 56.7 33.8 50.1 50.2
In or Near Default 15.8 13.1 7.6 6.1 8.2 7.0
------------- ------------- ------------- ------------- ------------- -------------
Total Debt Securities $ 11,617.4 $ 11,970.0 $ 8,300.8 $ 8,675.4 $ 3,316.6 $ 3,294.6
============= ============= ============= ============= ============= =============
% Below Investment Grade 7.9% 7.8% 8.5% 8.4% 6.4% 6.1%
- -----------------------------------------------------------------------------------------------------------------------------------
UNREALIZED GAINS AND LOSSES ON DEBT AND
EQUITY SECURITIES
As of 3/31/08
Total Outside Closed Block Closed Block
---------------------------- ---------------------------- ----------------------------
Gains Losses Gains Losses Gains Losses
------------- ------------- ------------- ------------- ------------- -------------
Total Debt Securities $ 291.4 $ (548.4) $ 84.9 $ (293.5) $ 206.5 $ (254.9)
Equity Securities 24.9 (8.5) 6.3 (1.6) 18.6 (6.9)
------------- ------------- ------------- ------------- ------------- -------------
Total Unrealized Gains (Losses) 316.3 (556.9) 91.2 (295.1) 225.1 (261.8)
------------- ------------- ------------- ------------- ------------- -------------
Applicable PDO 225.1 (261.8) 225.1 (261.8)
Applicable DAC (Credit) 34.3 (141.7) 34.3 (141.7)
Applicable Deferred Income Tax (Benefit) 19.9 (53.7) 19.9 (53.7)
------------- ------------- ------------- ------------- ------------- -------------
Total Offsets to Net Unrealized Gains
(Losses) 279.3 (457.2) 54.2 (195.4) 225.1 (261.8)
------------- ------------- ------------- ------------- ------------- -------------
Net Unrealized Gains (Losses) $ 37.0 $ (99.7) $ 37.0 $ (99.7) $ 0.0 $ 0.0
============= ============= ============= ============= ============= =============
Net Unrealized Losses $ (62.7) $ (62.7) $ 0.0
============= ============= =============
(1) Excludes debt and equity securities pledged as collateral.
27
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS(1)
First Quarter 2008 (unaudited)
($ in millions)
Quarters Ended YTD March December 31,
---------------------------- ----------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------- ------------- ------------- ------------- ------------- -------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 183.3 $ 194.0 $ 774.4 $ 800.7 $ 804.6 $ 772.1
Equity Securities 1.0 2.4 8.2 7.0 7.5 4.5
Mortgages 0.2 0.7 1.7 6.2 20.2 22.5
Policy Loans 45.0 44.1 179.5 169.3 165.8 167.1
Venture Capital 5.8 7.8 27.0 3.3 23.8 25.5
Cash & Cash Equivalents 3.6 4.9 18.8 16.3 7.6 4.9
Other Income 1.9 4.6 8.3
Other Investments (2) 7.0 19.0 43.9 40.0 47.8 48.8
------------- ------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 247.8 277.5 1,061.8 1,042.8 1,077.3 1,045.4
------------- ------------- ------------- ------------- ------------- -------------
Discontinued Operations 0.7 2.7 7.5 6.6 4.8 3.6
Investment Expenses 1.8 2.3 9.6 5.3 6.1 7.9
------------- ------------- ------------- ------------- ------------- -------------
Total Net Investment Income $ 245.3 $ 272.5 $ 1,044.7 $ 1,030.9 $ 1,066.4 $ 1,033.9
============= ============= ============= ============= ============= =============
ANNUALIZED YIELDS
Debt Securities 6.4% 6.3% 6.6% 6.5% 6.2% 5.9%
Equity Securities 1.9% 5.2% 4.1% 3.7% 3.0% 1.3%
Mortgages 5.4% 6.4% 11.0% 8.1% 15.3% 11.0%
Policy Loans 7.8% 7.9% 7.9% 7.6% 7.7% 7.9%
Venture Capital 13.4% 27.5% 17.3% 2.7% 12.8% 10.9%
Cash & Cash Equivalents 3.1% 5.4% 4.1% 4.7% 5.2% 1.1%
Other Investments (2) 7.0% 26.6% 11.6% 13.6% 16.4% 7.5%
------------- ------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 6.6% 7.2% 7.0% 6.7% 6.6% 6.1%
------------- ------------- ------------- ------------- ------------- -------------
Investment Expenses and Discontinued
Operations 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
------------- ------------- ------------- ------------- ------------- -------------
Total Net Investment Income yields 6.5% 7.1% 6.9% 6.6% 6.6% 6.1%
============= ============= ============= ============= ============= =============
(1) Excludes debt and equity securities pledged as collateral.
(2) Includes real estate, affiliates and other invested assets.
28
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS(1)
First Quarter 2008 (unaudited)
($ in millions)
Quarters Ended 2007 2008
---------------------------------------------------------- -------------
March June September December March
------------- ------------- ------------- ------------- -------------
GAAP NET INVESTMENT INCOME
Debt Securities $ 194.0 $ 194.9 $ 195.7 $ 189.8 $ 183.3
Equity Securities 2.4 2.1 0.9 2.8 1.0
Mortgages 0.7 0.4 0.3 0.3 0.2
Policy Loans 44.1 43.8 45.5 46.1 45.0
Venture Capital 7.8 6.3 7.9 5.0 5.8
Cash & Cash Equivalents 4.9 4.7 4.3 4.9 3.6
Other Income 4.6 1.2 (0.5) 3.0 1.9
Other Investments(2) 19.0 9.7 6.3 8.9 7.0
------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 277.5 263.1 260.4 260.8 247.8
------------- ------------- ------------- ------------- -------------
Discontinued Operations 2.7 1.8 0.7 2.3 0.7
Investment Expenses 2.3 2.7 2.5 2.1 1.8
------------- ------------- ------------- ------------- -------------
Total Net Investment Income $ 272.5 $ 258.6 $ 257.2 $ 256.4 $ 245.3
============= ============= ============= ============= =============
ANNUALIZED YIELDS
Debt Securities 6.3% 6.4% 6.6% 6.5% 6.4%
Equity Securities 5.2% 4.3% 1.8% 5.6% 1.9%
Mortgages 6.4% 9.2% 7.1% 7.6% 5.4%
Policy Loans 7.9% 7.8% 8.0% 8.1% 7.8%
Venture Capital 27.5% 18.8% 22.2% 12.6% 13.4%
Cash & Cash Equivalents 5.4% 5.5% 4.9% 4.3% 3.1%
Other Investments(2) 26.6% 12.1% 7.2% 9.3% 7.0%
------------- ------------- ------------- ------------- -------------
Total Cash and Invested Assets 7.2% 6.9% 6.9% 6.9% 6.6%
------------- ------------- ------------- ------------- -------------
Investment Expenses and Discontinued Operations 0.1% 0.1% 0.1% 0.1% 0.1%
------------- ------------- ------------- ------------- -------------
Total Net Investment Income yields 7.1% 6.8% 6.8% 6.8% 6.5%
============= ============= ============= ============= =============
(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 REALIZED INVESTMENT GAINS AND LOSSES
First Quarter 2008 (unaudited)
($ Millions)
YTD March December 31,
---------------------------- ----------------------------------------------------------
2008 2007 2007 2006 2005 2004
------------- ------------- ------------- ------------- ------------- -------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (32.6) $ (1.0) $ (46.7) $ (7.9) $ (31.2) $ (15.5)
Equity Security Impairments (0.5) (0.5) (2.1) (1.5)
Mortgage Loan Impairments (0.8) (12.6)
Debt and Equity Securities Pledged as
Collateral Impairments (0.8) (1.0) (1.2) (16.6)
Other Invested Asset Impairments (7.3) (3.9) (3.3)
------------- ------------- ------------- ------------- ------------- -------------
Total Impairment Losses (40.4) (1.0) (51.9) (8.9) (35.3) (49.5)
------------- ------------- ------------- ------------- ------------- -------------
Debt Security Net Transaction Gains
(Losses) (2.8) 3.4 11.6 42.0 (18.0) 28.4
Equity Security Net Transaction Gains
(Losses) (0.2) 1.3 9.5 21.9 2.9 14.6
Venture Capital Net Investment Gains
(Losses) 2.4 (13.9)
Mortgage Loan Net Transaction Gains
(Losses) (0.1) 1.4 1.4 3.2 0.2
Affiliate Equity Security Transactions
Gains 13.7 13.7 10.4 3.7
Real Estate Net Transaction Gains
(Losses) 1.5 1.4 (0.6) (0.8)
Settlement of HRH Stock Purchase
Contracts 86.3
Other Invested Asset Net Transactions
Gains (Losses) (4.8) 4.0 5.7 5.5 6.6 6.3
Debt and Equity Securities Pledged as
Collateral 0.8 0.2 1.8 2.5
------------- ------------- ------------- ------------- ------------- -------------
Total Net Transactions Gains (Losses) (7.1) 25.5 45.1 85.4 69.5 48.7
------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses) (47.5) 24.5 (6.8) 76.5 34.2 (0.8)
============= ============= ============= ============= ============= =============
Closed Block Applicable PDO (Reduction) (15.5) 6.6 4.4 46.0 (12.4) 3.7
Applicable Deferred Acquisition Costs
(Credit) (6.0) (0.4) 0.2 (3.5) 17.6 (0.4)
Applicable Deferred Income Tax (Credit) (9.4) 3.9 (4.3) 11.7 9.2 3.1
------------- ------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses)
Included in Net Income $ (16.6) $ 14.4 $ (7.1) $ 22.3 $ 19.8 $ (7.2)
============= ============= ============= ============= ============= =============
30
THE PHOENIX COMPANIES, INC.
GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES
First Quarter 2008 (unaudited)
($ Millions)
Quarters Ended 2007 2008
---------------------------------------------------------- -------------
March June September December March
------------- ------------- ------------- ------------- -------------
REALIZED INVESTMENT GAINS AND LOSSES
Debt Security Impairments $ (1.0) $ (13.6) $ (3.8) $ (28.3) $ (32.6)
Equity Security Impairments (0.1) (0.3) (0.1) (0.5)
Debt and Equity Securities Pledged as Collateral
Impairments (0.8)
Other Invested Asset Impairments (1.3) (2.6) (7.3)
------------- ------------- ------------- ------------- -------------
Total Impairment Losses (1.0) (14.5) (5.4) (31.0) (40.4)
------------- ------------- ------------- ------------- -------------
Debt Security Net Transaction Gains (Losses) 3.4 5.4 5.5 (2.7) (2.8)
Equity Security Net Transaction Gains (Losses) 1.3 2.6 2.8 2.8 (0.2)
Mortgage Loan Net Transaction Gains (Losses) 1.4 (0.1)
Affiliate Equity Security Transactions Gains 13.7
Real Estate Net Transaction Gains (Losses) 1.5 (0.1)
Other Invested Asset Net Transactions Gains (Losses) 4.0 4.0 0.5 (2.8) (4.8)
Debt and Equity Securities Pledged as Collateral 0.2 0.7 0.5 0.4 0.8
------------- ------------- ------------- ------------- -------------
Total Net Transactions Gains (Losses) 25.5 12.6 9.3 (2.3) (7.1)
------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses) 24.5 (1.9) 3.9 (33.3) (47.5)
============= ============= ============= ============= =============
Closed Block Applicable PDO (Reduction) 6.6 (1.3) 1.1 (2.0) (15.5)
Applicable Deferred Acquisition Costs (Credit) (0.4) 0.3 0.4 (0.1) (6.0)
Applicable Deferred Income Tax (Credit) 3.9 0.4 0.7 (9.3) (9.4)
------------- ------------- ------------- ------------- -------------
Net Realized Investment Gains (Losses) Included in
Net Income $ 14.4 $ (1.3) $ 1.7 $ (21.9) $ (16.6)
============= ============= ============= ============= =============
31