Organization and Operations

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Organization and Operations

PHL Variable Insurance Company (“PHL Variable” or the “Company”) is a life insurance company offering variable and fixed annuity and life insurance products. It is a wholly-owned subsidiary of PM Holdings, Inc. and PM Holdings, Inc. is a wholly-owned subsidiary of Phoenix Life Insurance Company (“Phoenix Life”), which is a wholly-owned subsidiary of The Phoenix Companies, Inc. (“PNX”), a New York Stock Exchange listed company. Phoenix Home Life Mutual Insurance Company demutualized on June 25, 2001 by converting from a mutual life insurance company to a stock life insurance company, became a wholly-owned subsidiary of PNX and changed its name to Phoenix Life Insurance Company.

After PNX experienced downgrades to its ratings and lost several key distributors in the first quarter of 2009, PNX repositioned its product line and began establishing new distribution relationships. In 2010, PNX was able to grow sales in its repositioned annuity product line through distributors that focus primarily on the middle market, including independent marketing organizations. That trend has continued through the first three quarters of 2011.