-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V9bO4+UPrKROB1Eokd/+qYS+qKr2fq7V5EzxulL0Et53DlvJULf7DQUEkYniS9PF MmW78DNZOpyovKKANlxhtQ== 0000949377-05-000840.txt : 20051102 0000949377-05-000840.hdr.sgml : 20051102 20051102162925 ACCESSION NUMBER: 0000949377-05-000840 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051102 DATE AS OF CHANGE: 20051102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOENIX COMPANIES INC/DE CENTRAL INDEX KEY: 0001129633 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 060493340 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16517 FILM NUMBER: 051173602 BUSINESS ADDRESS: STREET 1: ONE AMERICAN ROW STREET 2: PO BOX 5056 CITY: HARTFORD STATE: CT ZIP: 061025056 BUSINESS PHONE: 8604035000 MAIL ADDRESS: STREET 1: ONE AMERICAN ROW STREET 2: PO BOX 5056 CITY: HARTFORD STATE: CT ZIP: 061025056 8-K 1 pnx74369-8k.txt CURRENT REPORT Securities and Exchange Commission Washington, D.C. 20549 ----------------------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): September 30, 2005 The Phoenix Companies, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Delaware 1-16517 06-1599088 - ------------------- -------------------------- ------------------ (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) One American Row, Hartford, CT 06102 -5056 - ------------------------------------------------------- ---------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (860) 403-5000 ------------------- NOT APPLICABLE ------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 27, 2005, The Phoenix Companies, Inc. made available on its website its Financial Supplement for the quarter ended September 30, 2005. This is furnished as Exhibit 99.1 hereto. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (a) Not applicable (b) Not applicable (c) Exhibits The following exhibit is furnished herewith: 99.1 The Phoenix Companies, Inc. Financial Supplement for the quarter ended September 30, 2005 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE PHOENIX COMPANIES, INC. Date: November 2, 2005 By: /s/ Katherine P. Cody -------------------------------------- Name: Katherine P. Cody Title: Senior Vice President and Chief Accounting Officer EX-99.1 2 pnx74369ex99-1.txt FINANCIAL STATEMENT EXHIBIT 99.1 FINANCIAL SUPPLEMENT THE PHOENIX COMPANIES, INC. SEPTEMBER 30, 2005 [LOGO] PHOENIX
THE PHOENIX COMPANIES, INC. FINANCIAL SUPPLEMENT WALL STREET COVERAGE TRANSFER AGENT AND REGISTRAR FIRM ANALYST For information or assistance regarding your account, A.G. Edwards & Sons, Inc. J. Jeffrey Hopson please contact our transfer agent and registrar: Credit Suisse First Boston (CSFB) Tom Gallagher The Phoenix Companies, Inc. C/O The Bank of New York, Deutsche Bank North America Vanessa Wilson Shareholder Relations, Fox-Pitt, Kelton John Nadel PO Box 11258, New York, NY 10286-1258 Friedman, Billings, Ramsey & Co. Stewart Johnson Toll-free: 1-800-490-4258 TTY 1-888-269-5221 JP Morgan Jimmy Bhullar Fax: 1-212-815-2777, e-mail: pnxshareholders@bankofny.com Keefe Bruyette & Woods, Inc. Jukka Lipponen Web: www.stockbny.com Langen McAlenney Robert Glasspiegel Lehman Brothers Eric Berg Merrill Lynch Edward A. Spehar Morgan Stanley Nigel Dally FOR MORE INFORMATION UBS Andrew Kligerman To receive additional information, including financial supplements and Securities and Exchange Commission filings along with access to other shareholder services, visit the Investor Relations Section on our Web site at PhoenixWealthManagement.com or contact our Investor Relations Department at: SHAREHOLDER INFORMATION The Phoenix Companies, Inc. Investor Relations SECURITY LISTINGS One American Row The common stock of The Phoenix Companies, Inc. is traded on P.O. Box 5056, Hartford, CT 06102-5056 the New York Stock Exchange (NYSE) under the symbol "PNX." Phone: 1-860-403-7100 Our 7.25 percent equity units are traded on the NYSE under the Fax: 1-860-403-7880 symbol "PNX PrA." Our 7.45 percent bond is traded on the NYSE e-mail: pnx.ir@phoenixwm.com under the symbol "PFX."
For more information on our products and services, call your Phoenix representative or visit our Web site at PhoenixWealthManagement.com. In addition to net income presented in accordance with Generally Accepted Accounting Principles ("GAAP"), Phoenix considers total segment income in evaluating its financial performance. See page 2, Income Statement, for a reconciliation of these measures. Total segment income is an internal performance measure considered by Phoenix in the management of its operations, including its compensation plans and budgeting and planning processes. In addition, management believes that total segment income provides additional insight into the underlying trends in Phoenix's operations. Total segment income represents net income from continuing operations (which is a GAAP measure) before realized investment gains and losses, and certain other items. * Net realized investment gains and losses are excluded from segment income because their size and timing are frequently subject to our discretion. * Certain other items are excluded from segment income because we believe they are not indicative of overall operating trends and are items that management believes are infrequent and material and which result from a business restructuring, a change in regulatory environment, or other unusual circumstances. Because certain of these items are excluded based on our discretion and involve judgments by management, inconsistencies in their determination may exist and total segment income may differ from similarly titled measures of other companies. THE PHOENIX COMPANIES, INC. FINANCIAL SUPPLEMENT SEPTEMBER 2005 (UNAUDITED) TABLE OF CONTENTS ----------------- FINANCIAL HIGHLIGHTS........................................................ 1 INCOME STATEMENT............................................................ 2 LIFE AND ANNUITY EARNINGS SUMMARY........................................... 4 VARIABLE UNIVERSAL LIFE.................................................. 6 UNIVERSAL LIFE / INTEREST SENSITIVE...................................... 8 LIFE AND PRIVATE PLACEMENT SALES......................................... 10 ANNUITIES................................................................ 12 ANNUITIES - NET FLOWS AND FUNDS UNDER MANAGEMENT......................... 14 SUPPLEMENTARY LIFE AND ANNUITY INFORMATION............................... 16 ASSET MANAGEMENT............................................................ 18 ASSET MANAGEMENT - NET FLOWS AND ASSETS UNDER MANAGEMENT.................... 20 VENTURE CAPITAL SEGMENT..................................................... 22 CORPORATE AND OTHER......................................................... 24 CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT.............................. 26 CONSOLIDATING THIRD QUARTER 2005 INCOME STATEMENT........................... 28 CONDENSED CONSOLIDATED BALANCE SHEET........................................ 29 GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY................................ 30 GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS........................... 31 GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES........................ 33 THE PHOENIX COMPANIES, INC. FINANCIAL HIGHLIGHTS Third Quarter 2005 (unaudited) (amounts in millions, except per share data)
BALANCE SHEET INFORMATION For the Period Ended: December 31, YTD September ------------------------------------------------------------- 2005 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- General Account Invested Assets $ 17,015.6 $ 17,334.6 $ 17,242.8 $ 16,812.8 $ 14,411.4 Separate Account Assets 7,358.8 6,950.3 6,083.2 4,371.2 5,025.2 Total Assets 27,666.2 28,362.6 27,559.2 25,235.9 22,535.6 Indebtedness 762.9 690.8 639.0 644.3 599.3 Total Stockholders' Equity 2,044.7 2,022.4 1,947.8 1,826.8 2,307.8 Total Stockholders' Equity excluding SFAS 115, other accumulated OCI and FIN 46-R $ 2,068.9 $ 2,018.5 $ 1,925.3 $ 1,937.1 $ 2,317.5 Debt to Total Capitalization 27.2% 25.5% 24.7% 24.1% 20.0% Debt (Excluding Equity Units) to Total Capitalization 21.7% 19.8% 18.8% 18.3% N/A Book Value Per Share $ 21.50 $ 21.32 $ 20.62 $ 19.43 $ 22.64 Book Value Per Share, excluding SFAS 115 and other accumulated OCI 21.18 20.70 19.96 20.19 22.62 Book Value Per Share, excluding SFAS 115, other accumulated OCI and FIN 46-R $ 21.75 $ 21.27 $ 20.39 $ 20.60 $ 22.74 Period-end Common Shares Outstanding 95.1 94.9 94.4 94.0 101.9 ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ Indebtedness: Surplus Notes $ 204.2 $ 204.1 $ 175.0 $ 175.0 $ 175.0 Equity Units 153.7 153.7 153.7 153.7 N/A Senior Unsecured Bonds 300.0 300.0 300.0 300.0 300.0 Interest Rate Swap 3.3 8.0 10.3 15.6 (0.8) Bank Credit Facility 25.0 25.0 125.1 Other 76.7 ------------- ------------- ------------- ------------- ------------- Total Indebtedness $ 762.9 $ 690.8 $ 639.0 $ 644.3 $ 599.3 ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ STATUTORY FINANCIAL DATA FOR PHOENIX LIFE INSURANCE COMPANY (1) Capital, Surplus and Surplus Notes $ 858.1 $ 814.6 $ 762.9 $ 861.0 $ 1,149.8 Asset Valuation Reserve (AVR) 190.1 213.6 198.6 147.0 221.5 ------------- ------------- ------------- ------------- ------------- Capital, Surplus, Surplus Notes and AVR $ 1,048.3 1,028.2 961.5 1,008.0 1,371.3 ============= ============= ============= ============= ============= Policyholder Dividend Liability $ 408.7 $ 403.3 $ 408.5 $ 403.0 $ 395.8 Interest Maintenance Reserve (30.7) (31.3) (30.2) (2.0) 11.6 Statutory Gain From Operations 63.6 35.1 69.7 44.5 119.9 Statutory Net Income (Loss) 35.0 47.1 21.5 7.5 (13.9) -------------
(1) Phoenix Life Insurance Company is required to file financial statements with state regulatory authorities prepared on an accounting basis prescribed or permitted by the Insurance Department of the State of New York. September 2005 amounts are preliminary. 1 THE PHOENIX COMPANIES, INC. FINANCIAL HIGHLIGHTS Third Quarter 2005 (unaudited) (amounts in millions, except per share data)
INCOME STATEMENT SUMMARY YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- SEGMENT INCOME Life Insurance (1) $ 144.4 $ 89.0 $ 130.2 $ 100.5 $ 99.8 $ 71.2 Annuity (1) 3.3 11.5 12.6 (1.1) (19.5) 11.7 ------------- ------------- ------------- ------------- ------------- ------------- Life and Annuity Segment 147.7 100.5 142.8 99.4 80.3 82.9 Asset Management Segment (11.7) .2 .1 (8.7) (69.9) (8.7) Venture Capital Segment 13.2 12.1 19.3 36.2 (59.3) (159.6) Corporate and Other Segment (51.4) (44.7) (59.1) (47.8) (40.0) (34.7) ------------- ------------- ------------- ------------- ------------- ------------- Total Segment Income (Loss), Before Income Taxes 97.8 68.1 103.1 79.1 (88.9) (120.1) Applicable Income Taxes (Benefit) 23.7 13.5 22.5 21.8 (28.5) (45.4) ------------- ------------- ------------- ------------- ------------- ------------- TOTAL SEGMENT INCOME (LOSS) 74.1 54.6 80.6 57.3 (60.4) (74.7) Net Realized Investment Gains (Losses) 1.6 9.4 5.7 3.2 (39.3) (43.0) Realized (Losses) - Investments Pledged as Collateral Consolidated Under FIN 46-R .1 (12.9) (12.9) (2.4) (26.3) (12.5) Realized and Unrealized Gains (Losses) on Equity Investment in Aberdeen (7.0) .8 55.9 (55.0) Share of Aberdeen's Extraordinary Charge for FSA Setttlement (14.7) Surplus Notes Tender Costs (6.4) Management Restructuring and Early Retirement Costs (9.9) (13.9) (21.9) (8.5) (28.5) (15.5) Deferred Policy Acquisition Cost Adjustments 15.1 Expenses of Purchase of PXP Minority Interest (52.8) Demutualization Related Items, Net (1.3) (2.9) Other Income 1.3 5.3 ------------- ------------- ------------- ------------- ------------- ------------- INCOME (LOSS) FROM CONTINUING OPERATIONS 58.9 38.0 86.3 (4.1) (140.7) (196.1) Income (Loss) From Discontinued Operations (.7) .1 .1 (2.1) (1.3) (2.5) ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) Before Cumulative Effect of Accounting changes 58.2 38.1 86.4 (6.2) (142.0) (198.6) Cumulative Effect of Accounting changes (130.3) (16.6) ------------- ------------- ------------- ------------- ------------- ------------- NET INCOME (LOSS) $ 58.2 $ 38.1 $ 86.4 $ (6.2) (272.3) $ (215.2) ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS PER SHARE Basic Weighted-Average Shares Outstanding (2) 95.4 94.6 94.7 94.2 97.9 104.6 ------------- ------------- ------------- ------------- ------------- ------------- Total Segment Income (Loss) Per Share $ 0.78 $ 0.58 $ 0.85 $ 0.61 $ (0.62) $ (0.71) Net Income (Loss) Per Share $ 0.61 $ 0.40 $ 0.91 $ (0.07) $ (2.78) $ (2.06) Diluted Weighted-Average Shares Outstanding and dilutive potential common shares (2) (3) 102.5 100.9 100.8 96.6 97.9 104.6 ------------- ------------- ------------- ------------- ------------- ------------- Total Segment Income (Loss) Per Share $ 0.72 $ 0.54 $ 0.80 $ 0.59 $ (0.62) $ (0.71) Net Income (Loss) Per Share $ 0.57 $ 0.38 $ 0.86 $ (0.07) $ (2.78) $ (2.06) =============
(1) Within the Life and Annuity segment, certain product lines have been reclassified from Other Life and Annuity and combined with the appropriate major product line. See additional information on page 4 of this supplement. This reclassification has been made for all periods presented. (2) Weighted-average shares outstanding in 2001 are pro forma due to Initial Public Offering (IPO) in 2001. (3) For the twelve months ended December 31, 2003, the weighted average common shares outstanding and dilutive potential common shares were 96.6 million. For the calculation of net loss per share, dilutive potential shares were not included because their effect would have been anti-dilutive. 2 THE PHOENIX COMPANIES, INC. FINANCIAL HIGHLIGHTS Third Quarter 2005 (unaudited) (amounts in millions, except per share data)
INCOME STATEMENT SUMMARY 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- SEGMENT INCOME Life Insurance (1) $ 22.8 $ 29.2 $ 36.9 $ 41.2 $ 38.0 $ 68.3 $ 38.1 Annuity (1) 3.0 4.6 3.9 1.1 6.0 (9.6) 6.9 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Life and Annuity Segment 25.8 33.8 40.8 42.3 44.0 58.7 45.0 Asset Management Segment .1 .1 (.1) (1.7) .1 (10.1) Venture Capital Segment 11.6 4.4 (3.9) 7.2 (2.2) 2.7 12.7 Corporate and Other Segment (12.7) (16.0) (15.9) (14.5) (16.3) (16.4) (18.7) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Segment Income, Before Income Taxes 24.8 22.3 21.0 34.9 23.8 45.1 28.9 Applicable Income Taxes 7.3 5.7 .5 8.9 7.0 14.2 2.5 ------------- ------------- ------------- ------------- ------------- ------------- ------------- TOTAL SEGMENT INCOME 17.5 16.6 20.5 26.0 16.8 30.9 26.4 Net Realized Investment Gains (Losses) 1.8 7.7 (.2) (3.7) 1.1 (.6) 1.1 Realized Gains (Losses) - Investments Pledged as Collateral Consolidated Under FIN 46-R (1.0) (3.6) (8.3) .4 (1.2) .9 Realized and Unrealized Gains (Losses) on Equity Investment in Aberdeen .8 55.1 (7.0) Share of Aberdeen's Extraordinary Charge for FSA Setttlement (14.7) Surplus Notes Tender Costs (6.4) Management Restructuring and Early Retirement Costs (2.0) (6.9) (4.9) (8.0) (1.9) (6.7) (1.3) ------------- ------------- ------------- ------------- ------------- ------------- ------------- INCOME FROM CONTINUING OPERATIONS 16.3 14.6 7.1 48.3 9.4 22.4 27.1 Income (Loss) From Discontinued Operations .3 (.2) (.7) ------------- ------------- ------------- ------------- ------------- ------------- ------------- NET INCOME $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4 $ 22.4 $ 26.4 ============= ============= ============= ============= ============= ============= ============= - ----------------------------------------------------------------------------------------------------------------------------------- EARNINGS PER SHARE Basic Weighted-Average Shares Outstanding 94.5 94.6 94.7 94.8 94.9 95.0 95.1 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Segment Income Per Share $ 0.19 $ 0.18 $ 0.22 $ 0.27 $ 0.18 $ 0.32 $ 0.28 Net Income Per Share $ 0.18 $ 0.15 $ 0.07 $ 0.51 $ 0.10 $ 0.24 $ 0.28 Diluted Weighted-Average Shares Outstanding and dilutive potential common shares 102.0 101.3 99.2 100.3 102.3 101.1 102.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Segment Income Per Share $ 0.17 $ 0.16 $ 0.21 $ 0.26 $ 0.16 $ 0.31 $ 0.26 Net Income Per Share $ 0.16 $ 0.14 $ 0.07 $ 0.48 $ 0.09 $ 0.22 $ 0.26 =============
(1) Within the Life and Annuity segment, certain product lines have been reclassified from Other Life and Annuity and combined with the appropriate major product line. See additional information on page 4 of this supplement. This reclassification has been made for all periods presented. 3 THE PHOENIX COMPANIES, INC. LIFE AND ANNUITY EARNINGS SUMMARY Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- Variable Universal Life $ 60.8 $ 26.4 $ 35.7 $ 35.0 $ 35.9 $ 30.2 Universal Life (1) 41.0 21.5 34.4 21.7 26.3 17.4 Other Life and Annuity (2) (3) .9 1.3 1.8 .2 (.7) (.9) ------------- ------------- ------------- ------------- ------------- ------------- Total, Non-participating Life 102.7 49.2 71.9 56.9 61.5 46.7 Traditional Life (3) 41.7 39.8 58.3 43.6 38.3 24.5 ------------- ------------- ------------- ------------- ------------- ------------- Total, Life Insurance 144.4 89.0 130.2 100.5 99.8 71.2 Annuities (3) 3.3 11.5 12.6 (1.1) (19.5) 11.7 ------------- ------------- ------------- ------------- ------------- ------------- Segment Income, before income taxes 147.7 100.5 142.8 99.4 80.3 82.9 Allocated Income Taxes (4) 41.7 24.5 36.4 31.1 28.0 28.8 ------------- ------------- ------------- ------------- ------------- ------------- Segment Income $ 106.0 $ 76.0 $ 106.4 $ 68.3 $ 52.3 $ 54.1 ============= ============= ============= ============= ============= =============
(1) Universal Life includes interest sensitive whole life contracts. (2) Other Life and Annuity includes WS Griffith prior to 2005. (3) Certain product lines have been reclassified from Other Life and Annuity to the appropriate major product line. Specifically, term life and an old block of corporate owned life insurance were combined with participating life insurance and renamed Traditional Life. Also, single premium deposit annuities, single premium immediate annuities, flexible annuities and certain other annuity product lines were combined with Annuities. These reclassifications have been made for all periods presented. (4) Tax benefits related to tax advantaged investments have been allocated to the Life and Annuity Segment beginning in the quarter ended March 2003. 4 THE PHOENIX COMPANIES, INC. LIFE AND ANNUITY EARNINGS SUMMARY Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- Variable Universal Life $ 8.2 $ 8.5 $ 9.7 $ 9.5 $ 9.1 $ 37.8 $ 13.9 Universal Life (1) 1.9 10.9 8.7 12.9 10.3 23.1 7.6 Other Life and Annuity (2) (3) 1.5 .1 (.4) .4 .4 .5 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total, Non-participating Life 11.6 19.5 18.0 22.8 19.8 61.4 21.5 Traditional Life (3) 11.2 9.7 18.9 18.4 18.2 6.9 16.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total, Life Insurance 22.8 29.2 36.9 41.2 38.0 68.3 38.1 Annuities (3) 3.0 4.6 3.9 1.1 6.0 (9.6) 6.9 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Segment Income, before income taxes 25.8 33.8 40.8 42.3 44.0 58.7 45.0 Allocated Income Taxes 7.2 10.2 7.1 11.9 14.0 19.1 8.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Segment Income $ 18.6 $ 23.6 $ 33.7 $ 30.4 $ 30.0 $ 39.6 $ 36.4 ============= ============= ============= ============= ============= ============= =============
(1) Universal Life includes interest sensitive whole life contracts. (2) Other Life and Annuity includes WS Griffith prior to 2005. (3) Certain product lines have been reclassified from Other Life and Annuity to the appropriate major product line. Specifically, term life and an old block of corporate owned life insurance were combined with participating life insurance and renamed Traditional Life. Also, single premium deposit annuities, single premium immediate annuities, flexible annuities and certain other annuity product lines were combined with annuities. These reclassifications have been made for all periods presented. 5 THE PHOENIX COMPANIES, INC. VARIABLE UNIVERSAL LIFE Third Quarter 2005 (unaudited) ($ in millions)
YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- PRE-TAX INCOME Fees $ 24.6 $ 22.1 $ 29.6 $ 30.1 $ 31.4 $ 29.5 Cost of Insurance 57.3 55.5 74.6 72.1 66.4 60.0 Interest Earned 4.9 4.1 5.9 5.6 7.0 4.5 Surrender Charges 5.2 4.9 6.9 6.9 4.4 3.3 ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 92.0 86.6 117.0 114.7 109.2 97.3 ------------- ------------- ------------- ------------- ------------- ------------- Net Death and Disability Benefits 21.1 21.9 30.5 23.3 22.9 15.3 Incurred Expenses 6.7 35.3 47.1 52.8 45.9 48.2 Interest Credited 3.4 3.0 3.7 3.6 3.7 3.6 Minority Interest .8 ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 31.2 60.2 81.3 79.7 73.3 67.1 ------------- ------------- ------------- ------------- ------------- ------------- Pre-tax Income $ 60.8 $ 26.4 $ 35.7 $ 35.0 $ 35.9 $ 30.2 ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ INCURRED EXPENSES Commissions and Concessions $ 10.3 $ 11.2 $ 16.3 $ 21.4 $ 36.6 $ 29.5 Controllable Expenses and Other 21.1 26.9 34.0 44.6 60.8 60.1 ------------- ------------- ------------- ------------- ------------- ------------- Total Current Expenses 31.4 38.1 50.3 66.0 97.4 89.6 Acquisition Costs Deferred (12.3) (18.7) (25.4) (33.9) (68.1) (65.4) Acquisition Costs Amortized (12.4) 15.9 22.2 20.8 16.6 24.0 ------------- ------------- ------------- ------------- ------------- ------------- Incurred Expenses $ 6.7 $ 35.3 $ 47.1 $ 52.9 $ 45.9 $ 48.2 ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ FUNDS UNDER MANAGEMENT Deposits $ 155.4 $ 172.1 $ 245.4 $ 353.4 $ 465.7 $ 336.1 Surrenders (71.1) (46.7) (75.3) (69.4) (37.6) (31.2) Deaths (1.8) (1.4) (2.2) (1.4) (1.8) (1.7) ------------- ------------- ------------- ------------- ------------- ------------- Net Sales 82.5 124.0 167.9 282.6 426.3 303.2 Performance 91.8 64.5 179.3 252.1 (149.8) (194.0) Fees (22.5) (22.8) (30.6) (36.4) (35.8) (34.5) Cost of Insurance (55.8) (53.7) (72.4) (69.8) (66.4) (60.0) ------------- ------------- ------------- ------------- ------------- ------------- Acquisitions Change in Funds Under Management 96.0 112.0 244.2 428.5 174.3 14.7 Beginning Balance 1,943.1 1,698.9 1,698.9 1,270.3 1,096.0 1,081.3 ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance $ 2,039.1 $ 1,810.9 $ 1,943.1 $ 1,698.8 $ 1,270.3 $ 1,096.0 ============= ============= ============= ============= ============= ============= LIFE INSURANCE IN FORCE (1) $ 24,930.2 $ 25,373.0 $ 25,382.0 $ 24,603.0 $ 23,788.2 $ 20,436.1 ============= ============= ============= ============= ============= =============
(1) 2004 and 2005 face amounts updated to include the term rider face amounts for all variable universal life products. 6 THE PHOENIX COMPANIES, INC. VARIABLE UNIVERSAL LIFE Third Quarter 2005 (unaudited) ($ in millions)
2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- PRE-TAX INCOME Fees $ 8.0 $ 7.3 $ 6.8 $ 7.5 $ 7.4 $ 10.3 $ 6.9 Cost of Insurance 18.3 18.5 18.7 19.2 19.0 19.1 19.2 Interest Earned 1.2 1.7 1.2 1.8 1.5 1.4 2.0 Surrender Charges 1.7 1.4 1.8 2.1 1.9 1.7 1.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 29.2 28.9 28.5 30.6 29.8 32.5 29.7 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Death and Disability Benefits 8.3 7.5 6.1 8.6 8.9 8.3 3.9 Incurred Expenses 11.7 11.9 11.7 11.7 10.6 (14.7) 10.8 Interest Credited 1.0 1.0 1.0 .8 1.2 1.1 1.1 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 21.0 20.4 18.8 21.1 20.7 (5.3) 15.8 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Pre-tax Income $ 8.2 $ 8.5 $ 9.7 $ 9.5 $ 9.1 $ 37.8 $ 13.9 ============= ============= ============= ============= ============= ============= ============= ------------------------------------------------------------------------------------------------------- INCURRED EXPENSES Commissions and Concessions $ 4.0 $ 4.2 $ 3.0 $ 5.1 $ 3.6 $ 3.4 $ 3.3 Controllable Expenses and Other 9.2 9.3 8.4 7.1 6.8 7.4 6.9 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Current Expenses 13.2 13.5 11.4 12.2 10.4 10.8 10.2 Acquisition Costs Deferred (6.6) (6.6) (5.5) (6.7) (4.1) (4.4) (3.8) Acquisition Costs Amortized 5.1 5.0 5.8 6.2 4.3 (21.1) 4.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Incurred Expenses $ 11.7 $ 11.9 $ 11.7 $ 11.7 $ 10.6 (14.7) $ 10.8 ============= ============= ============= ============= ============= ============= ============= ------------------------------------------------------------------------------------------------------- FUNDS UNDER MANAGEMENT Deposits $ 67.0 $ 60.0 $ 45.1 $ 73.3 $ 63.3 $ 49.0 $ 43.1 Surrenders (15.6) (15.0) (16.1) (28.6) (27.4) (19.6) (24.1) Deaths (.4) (.4) (.6) (.8) (.9) (.7) (.2) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Sales 51.0 44.6 28.4 43.9 35.0 28.7 18.8 Performance 56.5 10.0 (2.0) 114.8 (9.3) 22.0 79.1 Fees (8.4) (7.4) (7.0) (7.8) (7.5) (7.7) (7.3) Cost of Insurance (17.7) (18.0) (18.0) (18.7) (18.4) (18.6) (18.7) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Funds Under Management 81.4 29.2 1.4 132.2 (.2) 24.4 71.9 Beginning Balance 1,698.9 1,780.3 1,809.5 1,810.9 1,943.1 1,942.8 1,967.2 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance $ 1,780.3 $ 1,809.5 $ 1,810.9 $ 1,943.1 $ 1,942.9 $ 1,967.2 $ 2,039.1 ============= ============= ============= ============= ============= ============= ============= LIFE INSURANCE IN FORCE (1) $ 25,666.8 $ 25,596.7 $ 25,373.0 $ 25,382.0 $ 25,189.9 $ 25,041.0 $ 24,930.2 ============= ============= ============= ============= ============= ============= =============
(1) 2004 and 2005 face amounts updated to include the term rider face amounts for all variable universal life products. 7 THE PHOENIX COMPANIES, INC. UNIVERSAL LIFE / INTEREST SENSITIVE Third Quarter 2005 (unaudited) ($ in millions)
YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- PRE-TAX INCOME Fees $ 10.8 $ 14.3 $ 19.2 $ 17.3 $ 11.9 $ 8.6 Cost of Insurance 76.5 66.9 90.7 78.9 71.6 66.2 Interest Earned 80.2 74.3 100.3 98.3 108.4 111.9 Surrender Charges 2.1 2.3 3.2 2.5 3.9 4.0 ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 169.6 157.8 213.4 196.9 195.8 190.7 ------------- ------------- ------------- ------------- ------------- ------------- Net Death Benefits and Supplemental Benefits 43.4 44.7 58.2 51.2 39.5 48.3 Incurred Expenses 29.6 35.3 46.2 46.0 44.3 34.6 Interest Credited 55.6 56.3 74.6 78.0 85.7 90.4 ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 128.6 136.3 179.0 175.2 169.5 173.3 ------------- ------------- ------------- ------------- ------------- ------------- Pre-tax Income $ 41.0 $ 21.5 $ 34.4 $ 21.7 $ 26.3 $ 17.4 ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ INCURRED EXPENSES Commissions $ 25.2 $ 17.0 $ 24.9 $ 28.2 $ 15.2 $ 9.8 Controllable Expenses 53.5 47.1 64.4 75.0 52.6 32.1 ------------- ------------- ------------- ------------- ------------- ------------- Total Current Expenses 78.7 64.1 89.3 103.2 67.8 41.9 Acquisition Cost Deferred (54.1) (44.1) (63.5) (74.9) (40.2) (20.0) Acquisition Cost Amortized 5.0 15.3 20.4 17.7 16.7 12.7 ------------- ------------- ------------- ------------- ------------- ------------- Incurred Expenses $ 29.6 $ 35.3 $ 46.2 $ 46.0 $ 44.3 $ 34.6 ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ FUNDS UNDER MANAGEMENT Deposits $ 186.5 $ 166.6 $ 229.4 $ 217.8 $ 149.3 $ 104.6 Surrenders (75.4) (96.6) (126.2) (118.6) (107.4) (99.0) Deaths (17.4) (14.5) (16.9) (19.4) (25.0) (18.5) ------------- ------------- ------------- ------------- ------------- ------------- Net Sales 93.7 55.5 86.3 79.8 16.9 (12.9) Interest Credited 55.7 56.2 74.6 78.0 85.8 90.4 Fees (17.2) (16.5) (23.5) (24.9) (16.7) (10.5) Cost of Insurance (76.5) (66.9) (90.7) (78.9) (71.6) (66.2) ------------- ------------- ------------- ------------- ------------- ------------- Change in Funds Under Management 55.7 28.3 46.7 54.0 14.4 .8 Beginning Balance 1,610.7 1,564.0 1,564.0 1,510.0 1,495.6 1,494.8 ------------- ------------- ------------- ------------- ------------- ------------- Ending Fund Balance $ 1,666.4 $ 1,592.3 $ 1,610.7 $ 1,564.0 $ 1,510.0 $ 1,495.6 ============= ============= ============= ============= ============= ============= LIFE INSURANCE IN FORCE $ 15,126.3 $ 13,725.6 $ 14,103.7 $ 12,830.3 $ 10,476.7 $ 9,465.6 ============= ============= ============= ============= ============= =============
8 THE PHOENIX COMPANIES, INC. UNIVERSAL LIFE / INTEREST SENSITIVE Third Quarter 2005 (unaudited) ($ in millions)
PRE-TAX INCOME 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarter ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- Fees $ 4.5 $ 4.8 $ 5.0 $ 5.0 $ 4.7 $ 1.2 $ 4.9 Cost of Insurance 21.6 22.5 22.8 23.8 24.0 24.9 27.6 Interest Earned 24.0 25.9 24.4 26.0 25.4 26.2 28.6 Surrender Charges .7 1.1 .5 .9 .5 .7 .9 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 50.8 54.3 52.7 55.7 54.6 53.0 62.0 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Death Benefits and Supplemental Benefits 19.3 12.3 13.1 13.4 13.9 13.5 16.0 Incurred Expenses 10.4 12.1 12.8 11.0 12.0 (2.0) 19.6 Interest Credited 19.2 19.0 18.1 18.4 18.4 18.4 18.8 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 48.9 43.4 44.0 42.8 44.3 29.9 54.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Pre-tax Income $ 1.9 $ 10.9 $ 8.7 $ 12.9 $ 10.3 $ 23.1 $ 7.6 ============= ============= ============= ============= ============= ============= ============= ------------------------------------------------------------------------------------------------------- INCURRED EXPENSES Commissions $ 6.9 $ 6.2 $ 4.0 $ 7.9 $ 5.4 $ 7.1 $ 12.7 Controllable Expenses 17.1 15.5 14.4 17.4 13.9 16.2 23.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Current Expenses 24.0 21.7 18.4 25.3 19.3 23.3 36.1 Acquisition Cost Deferred (17.7) (14.5) (11.9) (19.4) (13.5) (15.1) (25.5) Acquisition Cost Amortized 4.1 4.9 6.3 5.1 6.2 (10.2) 9.0 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Incurred Expenses $ 10.4 $ 12.1 $ 12.8 $ 11.0 $ 12.0 $ (2.0) $ 19.6 ============= ============= ============= ============= ============= ============= ============= ------------------------------------------------------------------------------------------------------- FUNDS UNDER MANAGEMENT Deposits $ 54.7 $ 55.7 $ 56.2 $ 62.8 $ 54.9 $ 57.7 $ 73.9 Surrenders (31.9) (37.0) (27.7) (29.6) (23.3) (24.7) (27.4) Deaths (3.3) (3.7) (7.5) (2.4) (4.6) (7.0) (5.8) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Sales 19.5 15.0 21.0 30.8 27.0 26.0 40.7 Interest Credited 19.1 19.0 18.1 18.4 18.5 18.4 18.8 Fees (5.4) (5.8) (5.3) (7.0) (4.9) (5.2) (7.1) Cost of Insurance (21.6) (22.5) (22.8) (23.8) (24.0) (24.9) (27.6) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Funds Under Management 11.6 5.7 11.0 18.4 16.6 14.3 24.8 Beginning Balance 1,564.0 1,575.6 1,581.3 1,592.3 1,610.7 1,627.3 1,641.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Fund Balance $ 1,575.6 $ 1,581.3 $ 1,592.3 $ 1,610.7 $ 1,627.3 $ 1,641.6 $ 1,666.4 ============= ============= ============= ============= ============= ============= ============= LIFE INSURANCE IN FORCE $ 13,195.6 $ 13,431.3 $ 13,725.6 $ 14,103.7 $ 14,328.7 $ 14,583.3 $ 15,126.3 ============= ============= ============= ============= ============= ============= =============
9 THE PHOENIX COMPANIES, INC. LIFE AND PRIVATE PLACEMENT SALES Third Quarter 2005 (unaudited) ($ in millions)
LIFE INSURANCE SALES YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- WHOLESALER CHANNEL Variable Universal Life $ 12.9 $ 12.6 $ 18.2 $ 30.1 $ 62.5 $ 53.8 Universal Life/Interest Sensitive 47.5 34.0 47.4 67.5 36.9 14.5 Term Life 11.5 11.2 15.3 19.2 15.1 11.4 Participating Whole Life 0.6 4.8 9.7 ------------- ------------- ------------- ------------- ------------- ------------- Life Insurance Annualized Premium (1) 71.9 57.8 80.9 117.4 119.3 89.4 ============= ============= ============= ============= ============= ============= Variable Universal Life 4.1 7.0 10.8 20.1 25.1 49.7 Universal Life/Interest Sensitive 31.5 38.8 53.2 61.6 29.9 14.5 Participating Whole Life 0.8 2.4 ------------- ------------- ------------- ------------- ------------- ------------- Life Insurance Single Premium 35.6 45.8 64.0 81.7 55.8 66.6 ============= ============= ============= ============= ============= ============= Variable Universal Life 17.0 19.6 29.0 50.1 87.6 103.5 Universal Life/Interest Sensitive 79.0 72.9 100.7 129.2 66.8 29.0 Term Life 11.5 11.2 15.3 19.2 15.1 11.4 Participating Whole Life 0.6 5.6 12.1 ------------- ------------- ------------- ------------- ------------- ------------- Total Wholesaler Life Insurance Premium (2) 107.5 103.7 145.0 199.1 175.1 156.0 ============= ============= ============= ============= ============= ============= PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS Variable Universal Life (annualized and single) 27.9 34.9 60.0 149.5 222.5 83.7 Annuity 510.5 140.7 152.6 394.9 142.6 164.0 ------------- ------------- ------------- ------------- ------------- ------------- Total Private Placement Life and Annuity Deposits 538.4 175.6 212.6 544.4 365.1 247.7 ============= ============= ============= ============= ============= ============= PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 2,374.1 $ 1,788.6 $ 1,898.5 $ 1,535.5 $ 864.7 $ 494.1 ============= ============= ============= ============= ============= =============
(1) Annualized Premium represents first year premiums on an annual basis. (2) Total Premium represents Annualized and Single premiums. 10 THE PHOENIX COMPANIES, INC. LIFE AND PRIVATE PLACEMENT SALES Third Quarter 2005 (unaudited) ($ in millions)
LIFE INSURANCE SALES 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- WHOLESALER CHANNEL Variable Universal Life $ 4.5 $ 5.0 $ 3.1 $ 5.6 $ 6.2 $ 3.5 $ 3.1 Universal Life/Interest Sensitive 13.1 10.5 10.4 13.4 10.8 14.1 22.6 Term Life 3.9 4.0 3.3 4.2 3.8 3.8 3.8 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Life Insurance Annualized Premium (1) 21.5 19.5 16.8 23.2 20.8 21.4 29.5 ============= ============= ============= ============= ============= ============= ============= Variable Universal Life 2.5 2.6 2.0 3.7 .8 1.6 1.8 Universal Life/Interest Sensitive 11.1 14.4 13.3 14.4 8.5 11.4 11.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Life Insurance Single Premium 13.6 17.0 15.3 18.1 9.3 13.0 13.4 ============= ============= ============= ============= ============= ============= ============= Variable Universal Life 7.0 7.5 5.1 9.3 7.0 5.1 4.9 Universal Life/Interest Sensitive 24.2 25.0 23.7 27.8 19.3 25.5 34.2 Term Life 3.9 4.0 3.3 4.2 3.8 3.8 3.8 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Wholesaler Life Insurance Premium (2) $ 35.1 $ 36.5 $ 32.1 $ 41.3 $ 30.1 $ 34.4 $ 42.9 ============= ============= ============= ============= ============= ============= ============= PRIVATE PLACEMENT LIFE AND ANNUITY DEPOSITS Variable Universal Life (annualized and single) 17.4 14.5 3.0 25.1 14.3 11.3 2.3 Annuity 28.8 70.9 41.0 12.0 487.6 11.9 11.0 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Private Placement Life and Annuity Deposits $ 46.2 $ 85.4 $ 44.0 $ 37.1 $ 501.9 $ 23.2 $ 13.3 ============= ============= ============= ============= ============= ============= ============= PRIVATE PLACEMENT FUNDS UNDER MANAGEMENT $ 1,642.8 $ 1,720.2 $ 1,788.6 $ 1,898.5 $ 2,414.5 $ 2,343.1 $ 2,374.1 ============= ============= ============= ============= ============= ============= =============
(1) Annualized Premium represents first year premiums on an annual basis. (2) Total Premium represents Annualized and Single premiums. 11 THE PHOENIX COMPANIES, INC. ANNUITIES Third Quarter 2005 (unaudited) ($ in millions)
YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- PRE-TAX INCOME Fees $ 48.9 $ 47.4 $ 63.8 $ 57.2 $ 57.4 $ 65.0 Interest Earned 122.5 114.9 158.0 150.1 109.1 51.8 Surrender Charges 5.2 4.6 5.8 7.4 6.6 3.9 ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 176.6 166.9 227.6 214.7 173.1 120.7 ------------- ------------- ------------- ------------- ------------- ------------- Mortality Cost 4.0 6.3 8.7 4.4 12.2 5.8 Incurred Expenses 83.9 57.3 83.0 78.3 81.0 55.9 Interest Credited 85.4 91.8 123.3 133.0 99.4 47.3 ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 173.3 155.4 215.0 215.7 192.6 109.0 ------------- ------------- ------------- ------------- ------------- ------------- Pre-tax Income (Loss) $ 3.3 $ 11.5 $ 12.6 $ (1.1) $ (19.5) $ 11.7 ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ INCURRED EXPENSES Commissions/Concessions $ 28.6 $ 32.8 $ 42.7 $ 51.1 $ 81.3 $ 44.1 Controllable Expenses 28.1 39.1 48.4 66.2 67.5 76.3 ------------- ------------- ------------- ------------- ------------- ------------- Total Current Expenses 56.7 71.9 91.1 117.3 148.8 120.4 Acquisition Cost Deferred (23.3) (35.6) (43.7) (65.5) (102.9) (83.5) Acquisition Cost Amortized 50.5 21.0 35.6 26.5 35.1 19.0 ------------- ------------- ------------- ------------- ------------- ------------- Incurred Expenses $ 83.9 $ 57.3 $ 83.0 $ 78.3 $ 81.0 $ 55.9 ============= ============= ============= ============= ============= =============
12 THE PHOENIX COMPANIES, INC. ANNUITIES Third Quarter 2005 (unaudited) ($ in millions)
PRE-TAX INCOME Quarters ended 2004 2005 ---------------------------------------------------------- ------------------------------------------- March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- Fees $ 15.7 $ 15.8 $ 15.9 $ 16.3 $ 16.5 $ 16.1 $ 16.3 Interest Earned 37.3 37.9 39.7 43.2 41.6 39.9 40.9 Surrender Charges 1.1 1.4 2.1 1.2 1.9 2.0 1.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 54.1 55.1 57.7 60.7 60.0 58.0 58.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Mortality Cost .8 2.6 2.9 2.4 1.2 2.2 .6 Incurred Expenses 20.9 16.2 20.1 25.9 23.6 36.9 23.4 Interest Credited 29.3 31.7 30.8 31.3 29.2 28.5 27.7 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 51.1 50.5 53.8 59.6 54.0 67.6 51.7 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Pre-tax Income (Loss) $ 3.0 $ 4.6 $ 3.9 $ 1.1 $ 6.0 $ (9.6) $ 6.9 ============= ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ INCURRED EXPENSES Commissions/Concessions $ 12.6 $ 10.3 $ 9.9 $ 9.8 $ 9.8 $ 9.1 $ 9.7 Controllable Expenses 16.1 12.8 10.1 9.5 8.5 9.8 9.8 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Current Expenses 28.7 23.1 20.0 19.3 18.3 18.9 19.5 Acquisition Cost Deferred (15.0) (12.7) (7.9) (8.0) (8.2) (6.8) (8.3) Acquisition Cost Amortized 7.2 5.8 8.0 14.6 13.5 24.8 12.2 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Incurred Expenses $ 20.9 $ 16.2 $ 20.1 $ 25.9 $ 23.6 $ 36.9 $ 23.4 ============= ============= ============= ============= ============= ============= =============
13 THE PHOENIX COMPANIES, INC. ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT Third Quarter 2005 (unaudited) ($ in millions)
FUNDS UNDER MANAGEMENT (1) YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- Annuities Deposits $ 766.6 $ 564.7 $ 670.9 $ 1,428.1 $ 2,258.4 $ 1,492.9 Surrenders (862.6) (587.5) (802.8) (867.2) (754.4) (510.6) ------------- ------------- ------------- ------------- ------------- ------------- Net Sales (96.0) (22.8) (131.9) 560.9 1,504.0 982.3 Performance and Interest Credited 304.4 238.8 670.7 872.1 (330.6) (554.9) Fees (47.3) (44.4) (59.8) (57.7) (58.8) (67.3) Deaths (58.5) (63.6) (81.6) (70.4) (40.6) (34.3) ------------- ------------- ------------- ------------- ------------- ------------- Change in Funds Under Management 102.6 108.0 397.4 1,304.9 1,074.0 325.8 Beginning Balance 7,700.6 7,303.2 7,303.2 5,998.3 4,924.3 4,598.5 ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance $ 7,803.2 $ 7,411.2 $ 7,700.6 $ 7,303.2 $ 5,998.3 $ 4,924.3 ============= ============= ============= ============= ============= ============= VA Funds in Guaranteed Interest Accounts (2) $ 1,706.1 $ 1,960.5 $ 1,939.1 $ 2,067.4 $ 2,159.3 $ 955.0 ============= ============= ============= ============= ============= ============= Fixed Annuities (2) $ 1,023.2 $ 1,201.8 $ 1,175.5 $ 1,216.3 $ 902.1 $ 442.5 ============= ============= ============= ============= ============= =============
(1) Funds restated for all periods presented due to Other Life and Annuity reclassifications. See additional information on page 4 of this supplement. (2) Amounts are included in the annuities funds under management table above. 14 THE PHOENIX COMPANIES, INC. ANNUITIES NET FLOWS AND FUNDS UNDER MANAGEMENT Third Quarter 2005 (unaudited) ($ in millions)
FUNDS UNDER MANAGEMENT (1) 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- Annuities Deposits $ 215.0 $ 208.9 $ 140.8 $ 106.2 $ 580.9 $ 93.5 $ 92.2 Surrenders (198.8) (175.0) (213.7) (215.3) (231.7) (336.6) (294.3) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Sales 16.2 33.9 (72.9) (109.1) 349.2 (243.1) (202.1) Performance and Interest Credited 212.8 19.5 6.5 431.9 (0.6) 86.3 218.7 Fees (15.3) (14.0) (15.1) (15.4) (16.2) (15.7) (15.4) Deaths (23.2) (21.8) (18.6) (18.0) (22.3) (17.6) (18.6) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Funds Under Management 190.5 17.6 (100.1) 289.4 310.1 (190.1) (17.4) Beginning Balance 7,303.2 7,493.7 7,511.3 7,411.2 7,700.6 8,010.7 7,822.7 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance $ 7,493.7 $ 7,511.3 $ 7,411.2 $ 7,700.6 $ 8,010.7 $ 7,820.6 $ 7,805.3 ============= ============= ============= ============= ============= ============= ============= VA Funds in Guaranteed Interest Accounts (2) $ 2,000.4 $ 1,974.2 $ 1,960.5 $ 1,939.1 $ 1,873.8 $ 1,796.4 $ 1,706.1 ============= ============= ============= ============= ============= ============= ============= Fixed Annuities (2) $ 1,212.7 $ 1,203.4 $ 1,201.8 $ 1,175.5 $ 1,165.9 $ 1,153.2 $ 1,023.2 ============= ============= ============= ============= ============= ============= =============
(1) Funds restated for all periods presented due to Other Life and Annuity reclassifications. See additional information on page 4 of this supplement. (2) Amounts are included in the annuities funds under management table above. 15 THE PHOENIX COMPANIES, INC. SUPPLEMENTARY LIFE AND ANNUITY INFORMATION Third Quarter 2005 (unaudited) ($ in millions)
YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- DEFERRED ACQUISITION COSTS Variable Universal Life $ 357.2 $ 332.1 $ 332.5 $ 329.3 $ 310.4 $ 252.8 Universal Life 311.0 247.5 262.0 219.2 163.1 134.7 Variable Annuities 280.6 302.7 296.7 289.0 264.9 211.4 Fixed Annuities 39.0 48.9 48.3 48.0 29.2 3.5 Participating 573.3 577.6 576.9 576.3 572.9 531.8 Other Offset for Unrealized Investment Gains and Losses (29.0) (80.1) (86.5) (94.1) (106.4) (10.5) ------------- ------------- ------------- ------------- ------------- ------------- Total $ 1,532.1 $ 1,428.7 $ 1,429.9 $ 1,367.7 $ 1,234.1 $ 1,123.7 ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS (1) Death Benefit in Excess of Fund Value $ 371.1 $ 576.4 $ 441.1 $ 616.9 $ 1,148.4 Death Benefit in Excess of Fund Value, Net of Reinsurance 93.1 173.8 123.5 183.0 234.9 Statutory Reserve, Net of Reinsurance 14.1 18.5 15.0 17.3 15.8 GAAP Reserve, Net of Reinsurance 9.8 10.3 9.1 7.8 8.7 -------------
(1) Comparable data is not available for 2001. 16 THE PHOENIX COMPANIES, INC. SUPPLEMENTARY LIFE AND ANNUITY INFORMATION Third Quarter 2005 (unaudited) ($ in millions)
2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- DEFERRED ACQUISITION COSTS Variable Universal Life $ 330.8 $ 332.4 $ 332.1 $ 332.5 $ 332.3 $ 357.8 $ 357.2 Universal Life 232.3 241.9 247.5 262.0 269.2 294.6 311.0 Variable Annuities 296.3 302.4 302.7 296.7 292.8 279.2 280.6 Fixed Annuities 48.5 49.5 48.9 48.3 46.8 42.5 39.0 Participating 578.3 579.4 577.6 576.9 579.9 570.2 573.3 Other Offset for Unrealized Investment Gains and Losses (127.7) (40.4) (80.1) (86.5) (26.7) (83.6) (29.0) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total $ 1,358.5 $ 1,465.2 $ 1,428.7 $ 1,429.9 $ 1,494.3 $ 1,460.7 $ 1,532.1 ============= ============= ============= ============= ============= ============= ============= - ----------------------------------------------------------------------------------------------------------------------------------- VARIABLE ANNUITY GUARANTEED MINIMUM DEATH BENEFITS Death Benefit in Excess of Fund Value $ 564.4 $ 552.0 $ 576.4 $ 441.1 $ 459.3 $ 425.0 $ 371.1 Death Benefit in Excess of Fund Value, Net of Reinsurance 166.4 163.2 173.8 123.5 130.1 114.0 93.1 Statutory Reserve, Net of Reinsurance 16.5 17.1 18.5 15.0 15.8 15.0 14.1 GAAP Reserve, Net of Reinsurance 6.9 7.7 10.3 9.1 9.3 9.6 9.8 -------------
17 THE PHOENIX COMPANIES, INC. ASSET MANAGEMENT Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- Investment Management Fees $ 142.8 $ 164.3 $ 219.0 $ 205.5 $ 219.2 $ 211.9 Mutual Funds - Ancillary Fees (1) 30.2 28.6 38.3 35.5 38.7 47.1 Other Revenue 4.4 6.4 7.7 9.3 10.2 12.9 ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 177.4 199.3 265.0 250.3 268.1 271.9 ------------- ------------- ------------- ------------- ------------- ------------- Employment Expenses 83.4 98.7 132.6 129.6 134.9 123.3 Other Operating Expenses (1) 64.8 65.9 85.9 86.7 93.4 103.0 Amortization of Intangibles 25.0 25.1 33.8 33.2 32.5 49.0 Intangible Asset Impairments 10.6 66.3 ------------- ------------- ------------- ------------- ------------- ------------- Total Operating Expenses 183.8 189.7 252.3 249.5 327.1 275.3 ------------- ------------- ------------- ------------- ------------- ------------- Management Income (Loss) (6.4) 9.6 12.7 .8 (59.0) (3.4) Other Income - Net 1.4 1.0 1.7 2.5 1.0 1.6 Minority Interest (6.7) (10.4) (14.3) (12.0) (11.9) (6.9) ------------- ------------- ------------- ------------- ------------- ------------- Segment Income (Loss), before income taxes (11.7) .2 .1 (8.7) (69.9) (8.7) Applicable Income taxes (Benefit) (4.9) .4 2.3 (3.3) (6.0) 2.6 ------------- ------------- ------------- ------------- ------------- ------------- Segment Income (Loss) $ (6.8) $ (.2) $ (2.2) $ (5.4) $ (63.9) $ (11.3) ============= ============= ============= ============= ============= =============
(1) Prior to 2004, mutual funds - ancillary fees were presented net of trail commissions. Effective for 2004, trail commissions are presented as other operating expenses. All prior periods have been conformed to the current presentation. 18 THE PHOENIX COMPANIES, INC. ASSET MANAGEMENT Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- Investment Management Fees $ 57.3 $ 54.4 $ 52.6 $ 54.7 $ 49.5 $ 46.6 $ 46.8 Mutual Funds - Ancillary Fees (1) 9.7 9.5 9.4 9.8 9.8 10.1 10.3 Other Revenue 2.8 2.2 1.4 1.3 1.3 1.7 1.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 69.8 66.1 63.4 65.8 60.6 58.4 58.5 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Employment Expenses 34.8 32.6 31.3 33.8 29.2 27.3 26.9 Other Operating Expenses(1) 23.3 22.0 20.6 20.1 21.9 21.3 21.6 Amortization of Intangibles 8.3 8.3 8.5 8.7 8.4 8.3 8.3 Intangible Asset Impairments 10.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Operating Expenses 66.4 62.9 60.4 62.6 59.5 56.9 67.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Management Income (Loss) 3.4 3.2 3.0 3.2 1.1 1.5 (8.9) Other Income - Net .4 .3 .3 .6 .4 .6 .4 Minority Interest (3.7) (3.4) (3.3) (3.9) (3.2) (2.0) (1.6) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Segment Income (Loss), before income taxes .1 .1 .0 (.1) (1.7) .1 (10.1) Applicable Income Taxes (Benefit) .4 .0 .0 1.9 (.5) .1 (4.5) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Segment Income (Loss) $ (0.3) $ 0.1 $ .0 $ (2.0) $ (1.2) $ (0.0) $ (5.6) ============= ============= ============= ============= ============= ============= =============
(1) Prior to 2004, mutual funds - ancillary fees were presented net of trail commissions. Effective for 2004, trail commissions are presented as other operating expenses. All prior periods have been conformed to the current presentation. 19 THE PHOENIX COMPANIES, INC. ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- PRIVATE CLIENT PRODUCTS: MANAGED ACCOUNTS: Inflows $ 1,442.6 $ 1,753.7 $ 2,109.9 $ 2,268.3 $ 4,421.1 $ 2,721.8 Outflows (4,098.6) (3,265.3) (5,203.0) (2,656.6) (2,716.4) (2,546.4) ------------ ------------ ------------ ------------ ------------ ------------ Net Flows (2,656.0) (1,511.6) (3,093.1) (388.3) 1,704.7 175.4 Performance (346.5) (261.5) 950.3 1,537.5 (3,278.2) (3,545.8) Other (158.1) 0.0 1,330.0 Acquisitions (Divestitures) 5,914.3 748.6 ------------ ------------ ------------ ------------ ------------ ------------ Change in Assets Under Management (3,160.5) (1,773.1) (2,142.8) 1,149.2 5,670.8 (2,621.8) Beginning Balance 13,515.6 15,658.4 15,658.4 14,509.2 8,838.4 11,460.2 ------------ ------------ ------------ ------------ ------------ ------------ Ending Balance 10,355.1 13,885.3 13,515.6 15,658.4 14,509.2 8,838.4 ------------ ------------ ------------ ------------ ------------ ------------ MUTUAL FUNDS: (1) Inflows 1,702.3 1,323.6 1,816.0 1,744.8 1,513.1 1,660.1 Outflows (2,045.2) (1,693.4) (2,301.9) (2,039.8) (2,379.2) (2,449.9) ------------ ------------ ------------ ------------ ------------ ------------ Net Flows (343.0) (369.8) (485.9) (295.0) (866.1) (789.8) Performance 205.9 48.9 975.5 1,946.3 (2,406.0) (2,985.3) Other (46.1) (4.1) 273.5 (182.2) (153.7) (148.9) ------------ ------------ ------------ ------------ ------------ ------------ Change in Assets Under Management (183.2) (325.0) 763.1 1,469.1 (3,425.8) (3,924.0) Beginning Balance 14,498.7 13,735.6 13,735.6 12,266.5 15,692.3 19,616.3 ------------ ------------ ------------ ------------ ------------ ------------ Ending Balance 14,315.5 13,410.6 14,498.7 13,735.6 12,266.5 15,692.3 ------------ ------------ ------------ ------------ ------------ ------------ INSTITUTIONAL PRODUCTS: (1) Inflows 4,801.8 2,349.2 2,743.9 2,974.7 4,312.6 4,989.2 Outflows (5,609.5) (4,462.8) (5,750.9) (3,452.2) (4,480.0) (3,766.9) ------------ ------------ ------------ ------------ ------------ ------------ Net Flows (807.7) (2,113.6) (3,007.0) (477.5) (167.4) 1,222.3 Performance (61.9) 231.9 997.2 2,304.3 (2,178.9) (723.4) Other 144.8 40.4 37.5 (19.9) (1,294.6) 272.6 Acquisitions (Divestitures) 1,507.7 105.9 ------------ ------------ ------------ ------------ ------------ ------------ Change in Assets Under Management (724.8) (1,841.3) (1,972.3) 1,806.9 (2,133.2) 877.4 Beginning Balance 14,894.2 16,866.5 16,866.5 15,059.6 17,192.8 16,315.4 ------------ ------------ ------------ ------------ ------------ ------------ Ending Balance 14,169.4 15,025.2 14,894.2 16,866.5 15,059.6 17,192.8 ------------ ------------ ------------ ------------ ------------ ------------ TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS: (1) Inflows 7,946.7 5,426.5 6,669.8 6,987.8 10,246.8 9,371.1 Outflows (11,753.3) (9,421.5) ( 13,255.8) (8,148.6) (9,575.6) (8,763.2) ------------ ------------ ------------ ------------ ------------ ------------ Net Flows (3,806.6) (3,995.0) (6,586.0) (1,160.8) 671.2 607.9 Performance (202.5) 19.3 2,923.0 5,788.1 (7,863.1) (7,254.5) Other (59.4) 36.3 311.0 (202.1) (118.3) 123.7 Acquisitions (Divestitures) 7,422.0 854.5 ------------ ------------ ------------ ------------ ------------ ------------ Change in Assets Under Management (4,068.5) (3,939.4) (3,352.0) 4,425.2 111.8 (5,668.4) Beginning Balance 42,908.5 46,260.5 46,260.5 41,835.3 41,723.5 47,391.9 ------------ ------------ ------------ ------------ ------------ ------------ Ending Balance $ 38,840.0 $ 42,321.1 $ 42,908.5 $ 46,260.5 $ 41,835.3 $ 41,723.5 ============ ============ ============ ============ ============ ============ Variable Product Change in Assets Under Management included in Mutual Funds above $ (297.0) $ (33.0) $ 211.7 $ 200.4 $ (686.5) $ (734.7) ============ ============ ============ ============ ============ ============
(1) Effective in 2004, closed-end mutual funds were reclassified from institutional products to mutual funds, and the general account assets of our life companies were removed. All prior periods have been revised to conform with the current presentation. 20 THE PHOENIX COMPANIES, INC. ASSET MANAGEMENT NET FLOWS AND ASSETS UNDER MANAGEMENT Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- PRIVATE CLIENT PRODUCTS: MANAGED ACCOUNTS: Inflows $ 649.8 $ 457.8 $ 646.2 $ 356.1 $ 508.1 $ 446.0 $ 488.6 Outflows (927.3) (1,162.9) (1,175.1) (1,937.7) (1,499.8) (1,192.8) (1,406.0) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Flows (277.5) (705.1) (528.9) (1,581.6) (991.7) (746.8) (917.4) Performance 315.9 131.1 (708.6) 1,211.9 (527.9) 55.2 126.2 Other (421.4) 263.3 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Assets Under Management 38.4 (574.0) (1,237.5) (369.7) (1,519.6) (1,113.0) (527.9) Beginning Balance 15,658.4 15,696.8 15,122.8 13,885.3 13,515.6 11,996.0 10,883.0 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance 15,696.8 15,122.8 13,885.3 13,515.6 11,996.0 10,883.0 10,355.1 ------------- ------------- ------------- ------------- ------------- ------------- ------------- MUTUAL FUNDS: (1) Inflows 611.9 367.4 344.2 492.4 549.2 565.6 587.4 Outflows (573.1) (650.8) (469.5) (608.5) (793.3) (605.4) (646.5) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Flows 38.8 (283.4) (125.3) (116.1) (244.1) (39.8) (59.1) Performance 347.9 (276.8) (22.1) 926.6 (372.4) 384.5 193.8 Other (57.6) 27.9 25.6 277.6 (5.7) 90.4 (130.8) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Assets Under Management 329.1 (532.3) (121.8) 1,088.1 (622.2) 435.1 3.9 Beginning Balance 13,735.6 14,064.7 13,532.4 13,410.6 14,498.7 13,876.5 14,311.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance 14,064.7 13,532.4 13,410.6 14,498.7 13,876.5 14,311.6 14,315.5 ------------- ------------- ------------- ------------- ------------- ------------- ------------- INSTITUTIONAL PRODUCTS: (1) Inflows 597.4 932.9 818.9 394.8 4,003.8 440.1 357.9 Outflows (798.5) (2,735.6) (928.7) (1,288.1) (1,313.3) (1,449.2) (2,847.0) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Flows (201.1) (1,802.7) (109.8) (893.3) 2,690.5 (1,009.1) (2,489.0) Performance 235.4 (161.2) 157.7 765.2 (229.3) 357.6 (190.2) Other (6.3) 56.6 (9.9) (2.9) (3.0) 413.7 (265.9) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Assets Under Management 28.0 (1,907.3) 38.0 (131.0) 2,458.2 (237.8) (2,945.1) Beginning Balance 16,866.5 16,894.5 14,987.2 15,025.2 14,894.2 17,352.4 17,114.6 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance 16,894.5 14,987.2 15,025.2 14,894.2 17,352.4 17,114.6 14,169.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- TOTAL PRIVATE CLIENT AND INSTITUTIONAL PRODUCTS: (1) Inflows 1,859.1 1,758.1 1,809.3 1,243.3 5,061.1 1,451.7 1,433.9 Outflows (2,298.9) (4,549.3) (2,573.3) (3,834.3) (3,606.4) (3,247.4) (4,899.5) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Flows (439.8) (2,791.2) (764.0) (2,591.0) 1,454.7 (1,795.7) (3,465.6) Performance 899.2 (306.9) (573.0) 2,903.7 (1,129.6) 797.3 129.8 Other (63.9) 84.5 15.7 274.7 (8.7) 82.7 (133.4) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Assets Under Management 395.5 (3,013.6) (1,321.3) 587.4 316.4 (915.7) (3,469.2) Beginning Balance 46,260.5 46,656.0 43,642.4 42,321.1 42,908.5 43,224.9 42,309.2 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance $ 46,656.0 $ 43,642.4 $ 42,321.1 $ 42,908.5 $ 43,224.9 $ 42,309.2 $ 38,840.0 ============= ============= ============= ============= ============= ============= ============= Variable Product Change in Assets Under Management included in Mutual Funds above $ 10.8 $ (4.9) $ (39.0) $ 244.7 $ (132.1) $ (45.7) $ (119.2) ============= ============= ============= ============= ============= ============= =============
(1) Effective in 2004, closed-end mutual funds were reclassified from institutional products to mutual funds, and the general account assets of our life companies were removed. All prior periods have been revised to conform with the current presentation. 21 THE PHOENIX COMPANIES, INC. VENTURE CAPITAL SEGMENT Third Quarter 2005 (unaudited) ($ in millions)
YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- SEGMENT INCOME Operating Gain (Loss) $ 4.3 $ (1.9) $ (1.8) $ (5.8) $ (7.4) $ (7.3) Realized Gains (Losses) on Cash and Stock Distributions 19.2 4.4 7.4 4.9 (4.7) 26.2 Change in Unrealized Gains on Investments Held in Partnerships (10.3) 9.6 13.7 37.1 (47.2) (178.5) ------------- ------------- ------------- ------------- ------------- ------------- Equity in Partnership Earnings, before income taxes 13.2 12.1 19.3 36.2 (59.3) (159.6) Applicable Income Taxes (Benefit) 4.6 4.2 6.7 12.7 (20.7) (55.9) ------------- ------------- ------------- ------------- ------------- ------------- Segment Income (Loss) $ 8.6 $ 7.9 $ 12.6 $ 23.5 $ (38.6) $ (103.7) ============= ============= ============= ============= ============= ============= - ------------------------------------------------------------------------------------------------------------------------------------ VENTURE CAPITAL INVESTMENTS Contributions (Dollars Invested) $ 20.0 $ 29.0 $ 37.7 $ 31.0 $ 42.2 $ 47.0 Equity In Earnings (Losses) of Partnerships 13.2 12.1 19.3 36.2 (59.3) (159.6) Distributions (51.8) (39.5) (50.4) (32.2) (41.8) (63.0) Sale of Partnership Interests and Transfer to Closed Block (52.2) Realized Loss on Sale of Partnership Interests and Transfer to Closed Block (14.3) (5.0) ------------- ------------- ------------- ------------- ------------- ------------- Change in Venture Capital Investments (18.6) 1.6 6.6 (31.5) (63.9) (175.6) Beginning Balance 202.9 196.3 196.3 227.8 291.7 467.3 ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance $ 184.3 $ 197.9 $ 202.9 $ 196.3 $ 227.8 $ 291.7 ============= ============= ============= ============= ============= =============
22 THE PHOENIX COMPANIES, INC. VENTURE CAPITAL SEGMENT Third Quarter 2005 (unaudited) ($ in millions)
2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- SEGMENT INCOME Operating Gain (Loss) $ (0.7) $ (1.4) $ 0.2 $ 0.2 $ 10.9 $ (3.7) $ (2.9) Realized Gains (Losses) on Cash and Stock Distributions (3.4) 2.4 5.4 3.0 .2 7.7 11.3 Change in Unrealized Gains on Investments Held in Partnerships 15.7 3.4 (9.5) 4.0 (13.3) (1.3) 4.3 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Equity in Partnership Earnings, before income taxes 11.6 4.4 (3.9) 7.2 (2.2) 2.7 12.7 Applicable Income Taxes (Benefit) 4.1 1.6 (1.4) 2.5 (.8) 1.0 4.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Segment Income (Loss) $ 7.5 $ 2.9 $ (2.5) $ 4.7 $ (1.4) $ 1.7 $ 8.3 ============= ============= ============= ============= ============= ============= ============= - ----------------------------------------------------------------------------------------------------------------------------------- VENTURE CAPITAL INVESTMENTS Contributions (Dollars Invested) $ 7.9 $ 12.6 $ 8.5 $ 8.7 $ 9.5 $ 4.2 $ 6.3 Equity In Earnings (Losses) of Partnerships 11.6 4.4 (3.9) 7.2 (2.2) 2.7 12.7 Distributions (13.6) (13.0) (12.9) (10.9) (13.0) (14.6) (24.2) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Change in Venture Capital Investments 5.9 4.0 (8.3) 5.0 (5.7) (7.7) (5.2) Beginning Balance 196.3 202.2 206.2 197.9 202.9 197.2 189.5 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Ending Balance $ 202.2 $ 206.2 $ 197.9 $ 202.9 $ 197.2 $ 189.5 $ 184.3 ============= ============= ============= ============= ============= ============= =============
23 THE PHOENIX COMPANIES, INC. CORPORATE AND OTHER Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- Corporate Investment Income $ .2 $ .4 $ .4 $ 4.3 $ 1.5 $ 7.2 Interest Expense on Indebtedness (34.2) (29.8) (40.8) (39.6) (31.4) (27.3) Corporate Expenses (17.8) (13.3) (18.9) (11.0) (10.4) (19.9) Other .4 (2.0) .2 (1.5) .3 5.3 ------------- ------------- ------------- ------------- ------------- ------------- Segment Loss, Before Income Taxes (51.4) (44.7) (59.1) (47.8) (40.0) (34.7) Applicable Income Tax Benefit (17.7) (15.6) (22.9) (18.8) (29.8) (20.9) ------------- ------------- ------------- ------------- ------------- ------------- Segment Loss $ (33.7) $ (29.1) $ (36.2) $ (29.0) $ (10.2) $ (13.8) ============= ============= ============= ============= ============= =============
24 THE PHOENIX COMPANIES, INC. CORPORATE AND OTHER Third Quarter 2005 (unaudited) ($ in millions)
SEGMENT INCOME 2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- Corporate Investment Income (Loss) $ .9 $ (.4) $ .1 $ .1 Interest Expense on Indebtedness (9.8) (9.9) $ (10.1) $ (11.0) (11.1) (11.4) $ (11.7) Corporate Expenses (3.9) (4.3) (5.1) (5.6) (5.8) (5.2) (6.8) Other .1 (1.4) (.7) 2.1 .5 .1 (.2) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Segment Loss, Before Income Taxes (12.7) (16.0) (15.9) (14.5) (16.3) (16.4) (18.7) Applicable Income Tax Benefit (4.4) (6.0) (5.2) (7.4) (5.7) (5.9) (6.1) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Segment Loss $ (8.3) $ (10.0) $ (10.7) $ (7.1) $ (10.6) $ (10.5) $ (12.6) ============= ============= ============= ============= ============= ============= =============
25 THE PHOENIX COMPANIES, INC. CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1) Third Quarter 2005 (unaudited) ($ in millions)
YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- REVENUES Premiums 692.5 $ 739.7 $ 990.6 $ 1,042.2 $ 1,082.0 $ 1,112.7 Insurance and Investment Product Fees 383.4 400.2 534.9 500.9 493.8 469.7 Broker-dealer commission and distribution fee revenues 21.4 50.2 56.9 81.5 85.0 96.3 Net Investment Income 820.9 802.0 1,075.7 1,107.4 940.5 882.9 Unrealized Gain on Trading Equity Securities 85.9 Net Realized Investment Gains (Losses) (23.5) 7.8 (.8) (98.5) (133.9) (84.9) ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 1,894.7 1,999.9 2,743.2 2,633.5 2,467.4 2,476.7 ------------- ------------- ------------- ------------- ------------- ------------- BENEFITS AND EXPENSES Policy Benefits and Increase in Policy Liabilities 1,027.7 1,060.2 1,422.2 1,454.0 1,436.1 1,406.7 Policyholder Dividends 265.8 309.8 404.7 418.8 401.8 400.1 Policy Acquisition Cost Amortization 67.1 76.3 110.2 94.1 59.2 133.0 Intangible Asset Impairments 10.6 66.3 Intangible Asset Amortization 25.6 25.1 33.8 33.2 32.5 49.4 Interest Expense on Indebtedness 34.2 29.8 40.8 39.6 31.4 27.3 Interest Expense on Non-recourse Collateralized Obligations 24.7 25.5 33.6 48.9 30.5 42.3 Demutualization Expenses 25.9 Other Operating Expenses 364.3 423.2 560.7 565.1 613.2 654.1 ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 1,820.0 1,949.9 2,606.0 2,653.7 2,671.0 2,738.8 ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) from Continuing Operations before Income Taxes, Minority Interest and equity in undistributed earnings (losses) of affiliates 74.7 50.0 137.2 (20.2) (203.6) (262.1) Applicable Income Taxes (Benefit) 15.2 12.7 40.5 (18.3) (58.8) (108.7) ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) from Continuing Operations before Minority Interest 59.5 37.3 and equity in undistributed earnings (losses) of affiliates 96.7 (1.9) (144.8) (153.4) Minority Interest in Net Income of Subsidiaries (.6) (.4) (.5) (.3) Equity in undistributed earnings (losses) of affiliates .7 (10.4) (1.8) 4.6 6.4 ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) from Continuing Operations 58.9 38.0 86.3 (4.1) (140.7) (147.3) Discontinued Operations Income (Loss) from Discontinued Operations (.7) .1 .1 (2.1) (1.3) (2.5) ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) Before Cumulative Effect of Accounting Changes 58.2 38.1 86.4 (6.2) (142.0) (149.8) Cumulative Effect of Accounting Changes: Goodwill and Other Intangible Assets (130.3) Venture Capital Partnerships (48.8) Securitized Financial Instruments (20.5) Derivative Financial Instruments 3.9 ------------- ------------- ------------- ------------- ------------- ------------- Net Income (Loss) $ 58.2 $ 38.1 $ 86.4 $ (6.2) $ (272.3) $ (215.2) ============= ============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with the current presentation. 26 THE PHOENIX COMPANIES, INC. CONSOLIDATED STATEMENT OF INCOME - GAAP FORMAT (1) Third Quarter 2005 (unaudited) ($ in millions)
2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- REVENUES Premiums $ 232.7 $ 238.2 $ 268.8 $ 250.9 $ 226.8 $ 229.1 $ 236.6 Insurance and Investment Product Fees 136.1 134.0 130.1 134.7 129.0 127.4 127.0 Broker-dealer commission and distribution fee revenues 24.3 20.2 5.7 6.7 6.8 7.1 7.5 Net Investment Income 277.7 259.3 265.0 273.7 268.7 268.1 284.1 Unrealized Gain on Trading Equity Securities 85.9 Net Realized Investment Gains (Losses) 2.5 14.4 (9.1) (8.6) (17.9) (7.8) 2.2 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Revenues 673.3 666.1 660.5 743.3 613.4 623.9 657.4 ------------- ------------- ------------- ------------- ------------- ------------- ------------- BENEFITS AND EXPENSES Policy Benefits and Increase in Policy Liabilities 345.6 341.3 373.3 362.0 343.3 340.0 344.4 Policyholder Dividends 105.9 105.3 98.6 94.9 83.8 83.4 98.6 Policy Acquisition Cost Amortization 22.6 23.1 30.6 33.9 28.2 9.9 29.0 Intangible Asset Impairments 10.6 Intangible Asset Amortization 8.3 8.3 8.5 8.7 8.4 8.8 8.4 Interest Expense on Indebtedness 9.8 9.9 10.1 11.0 11.1 11.4 11.7 Interest Expense on Non-recourse Collateralized Obligations 8.9 7.5 9.1 8.1 8.9 10.3 5.5 Other Operating Expenses 149.1 150.2 123.9 137.5 117.3 127.3 119.8 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 650.2 645.6 654.1 656.1 600.9 591.1 628.0 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Income from Continuing Operations before Income Taxes, Minority Interest and equity in undistributed earnings (losses) of affiliates 23.1 20.5 6.4 87.2 12.5 32.8 29.4 Applicable Income Taxes (Benefit) 7.1 6.2 (.6) 27.8 2.8 10.2 2.2 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) from Continuing Operations before Minority Interest and equity in undistributed earnings (losses) of affiliates 16.0 14.3 7.0 59.4 9.7 22.6 27.2 Minority Interest in Net Income of Subsidiaries (.3) (.2) (.1) Equity in undistributed earnings (loss) of affiliates .3 .3 .1 (11.1) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Income from Continuing Operations 16.3 14.6 7.1 48.3 9.4 22.4 27.1 Income (Loss) from Discontinued Operations .3 (.2) (0.7) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Income $ 16.6 $ 14.4 $ 7.1 $ 48.3 $ 9.4 $ 22.4 $ 26.4 ============= ============= ============= ============= ============= ============= =============
(1) Certain reclassifications have been made to prior periods to conform with the current presentation. 27 THE PHOENIX COMPANIES, INC. CONSOLIDATING THIRD QUARTER 2005 INCOME STATEMENT Third Quarter 2005 (unaudited) ($ in millions)
Year-to-Date September 30, 2005 Exclusions from Operating Segments Other Segments Segment Income ------------------------ ----------------------- ----------------------------------- Realized Intra- Life & Asset Venture Corporate & Investment Segment Consolidated Annuity Management Capital Other Loss Other Eliminations ------------- ----------- ----------- ---------- ---------- --------- ---------- ---------- REVENUES Premiums $ 692.5 $ 692.5 Insurance and Investment Product Fees 383.4 230.9 $ 157.3 $ (4.8) Broker-dealer commission and distribution fee revenues 21.4 21.4 Net Investment Income 820.9 759.7 $ 13.2 $ 37.0 11.0 Net Realized Investment Gains (23.5) $ (23.5) ------------- ----------- ----------- ---------- ---------- --------- ---------- ---------- Total Revenues 1,894.7 1,683.1 178.7 13.2 37.0 (23.5) 6.2 ------------- ----------- ----------- ---------- ---------- --------- ---------- ---------- BENEFITS AND EXPENSES Policy Benefits and Increase in Policy Liabilities 1,027.7 1,021.2 6.5 Policyholder Dividends 265.8 272.7 (6.9) Policy Acquisition Cost Amortization 67.1 75.4 (8.3) Intangible Asset Impairments 10.6 10.6 Intangible Asset Amortization 25.6 25.0 $ .6 Interest Expense on Indebtedness 34.2 34.2 Interest Expense on Non-recourse Collateralized Obligations 24.7 24.7 Other Operating Expenses 364.3 166.1 154.8 23.0 14.2 6.2 ------------- ----------- ----------- ---------- ---------- --------- ---------- ---------- Total Expenses 1,820.0 1,535.4 190.4 88.4 (15.2) 14.8 6.2 ------------- ----------- ----------- ---------- ---------- --------- ---------- ---------- Income (Loss) from Continuing Operations before Income Taxes, Minority Interest and equity in undistributed earnings (losses) of affiliates 74.7 147.7 (11.7) 13.2 (51.4) (8.3) (14.8) Applicable Income Taxes (Benefit) 15.2 41.7 (4.9) 4.6 (17.7) (3.0) (5.5) ------------- ----------- ----------- ---------- ---------- --------- ---------- ---------- Income (Loss) from Continuing Operations before Minority Interest and equity in undistributed earnings (losses) of affiliates 59.5 106.0 (6.8) 8.6 (33.7) (5.3) (9.3) Minority Interest in Net Income of Subsidiaries (.6) (.6) ------------- ----------- ----------- ---------- ---------- --------- ---------- ---------- Income (Loss) from Continuing Operations $ 58.9 $ 106.0 $ (6.8) $ 8.6 $ (33.7) $ (5.3) $ (9.9) $ .0 ============= =========== =========== ========== ========== ========= ========== ==========
28 THE PHOENIX COMPANIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET -- PRELIMINARY Third Quarter 2005 (unaudited) ($ in millions, except par value)
December 31, September ---------------------------------------------------------- 2005 2004 2003 2002 2001 -------------- ------------- ------------- ------------- ------------- ASSETS: Available-for-Sale Debt Securities, at fair value $ 13,510.8 $ 13,476.3 $ 13,273.0 $ 11,889.5 $ 9,774.1 Available-for-Sale Equity Securities, at fair value 318.4 304.3 312.0 385.9 287.7 Trading Equity Securities, at fair value 87.3 Mortgage Loans, at unpaid principal balances 154.8 207.9 284.1 468.8 535.8 Policy Loans, at unpaid principal balances 2,214.1 2,196.7 2,241.4 2,195.9 2,172.2 Venture Capital Partnerships, at equity in net assets 251.9 255.3 234.9 228.6 291.7 Affiliate Equity and Debt Securities, at cost plus equity in undistributed earnings 47.5 134.7 150.6 Other Investments 321.0 371.8 402.0 398.9 376.0 -------------- ------------- ------------- ------------- ------------- 16,771.0 16,899.6 16,794.9 15,702.3 13,588.1 Available-for-Sale Investments Pledged as Collateral, at fair value 319.6 1,278.8 1,350.0 1,358.7 550.6 -------------- ------------- ------------- ------------- ------------- Total Investments 17,090.6 18,178.4 18,144.9 17,061.0 14,138.7 Cash and Cash Equivalents 244.6 435.0 447.9 1,110.5 823.3 Deferred Policy Acquisition Costs 1,532.1 1,429.9 1,367.7 1,234.1 1,123.7 Goodwill and Other Intangible Assets 770.6 735.6 755.0 747.7 858.6 Other Assets 669.5 633.4 760.5 711.4 566.1 Separate Account Assets 7,358.8 6,950.3 6,083.2 4,371.2 5,025.2 -------------- ------------- ------------- ------------- ------------- Total Assets $ 27,666.2 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6 ============== ============= ============= ============= ============== LIABILITIES: Policy Liabilities and Accruals 13,179.2 $ 13,132.3 $ 13,088.6 $ 12,680.0 $ 11,846.4 Policyholder Deposit Funds 3,219.4 3,492.4 3,642.7 3,395.7 1,515.2 Indebtedness 762.9 690.8 639.0 644.3 599.3 Stock Purchase Contracts 126.2 131.9 128.8 137.6 Other Liabilities 584.6 587.3 557.1 570.8 614.1 Non-recourse Collateralized Debt Obligation Liabilities 390.4 1,355.2 1,472.0 1,609.5 632.7 Separate Account Liabilities 7,358.8 6,950.3 6,083.2 4,371.2 5,020.1 -------------- ------------- ------------- ------------- ------------- Total Liabilities and minority interest 25,621.5 26,340.2 25,611.4 23,409.1 20,227.8 -------------- ------------- ------------- ------------- ------------- STOCKHOLDERS' EQUITY: Common stock, $.01 par value, 1.0 billion shares authorized; 95,104,299 shares outstanding (September 30, 2005) 1.0 1.0 1.0 1.0 1.0 Additional paid in capital 2,438.5 2,435.2 2,431.4 2,424.4 2,413.3 Deferred Compensation on Restricted Stock Units (3.1) (3.6) (3.6) Accumulated Earnings (Deficit) (243.4) (285.6) (355.3) (331.4) (43.3) Treasury stock, at cost: 11,313,564 shares (September 30, 2005) (179.0) (182.6) (189.4) (195.7) (66.0) Accumulated Other Comprehensive Income (Loss) 30.7 58.0 63.7 (71.5) 2.8 -------------- ------------- ------------- ------------- ------------- Total Stockholders' Equity 2,044.7 2,022.4 1,947.8 1,826.8 2,307.8 -------------- ------------- ------------- ------------- ------------- Total Liabilities, Minority Interest and Stockholders' Equity $ 27,666.2 $ 28,362.6 $ 27,559.2 $ 25,235.9 $ 22,535.6 ============== ============= ============= ============= =============
29 THE PHOENIX COMPANIES, INC. GENERAL ACCOUNT INVESTMENT PORTFOLIO SUMMARY (1) Third Quarter 2005 (unaudited) ($ in millions)
Total Debt Securities Public Debt Securities Private Debt Securities 9/30/2005 12/31/04 9/30/2005 12/31/04 9/30/2005 12/31/04 ------------- ------------- ------------- ------------- ------------- ------------- DEBT SECURITIES BY CREDIT QUALITY (CARRYING VALUE) AAA/AA/A $ 8,795.5 $ 8,668.9 $ 7,233.8 $ 7,123.2 $ 1,631.4 $ 1,545.7 BBB 3,683.5 3,733.3 2,392.1 2,493.6 1,280.0 1,239.7 ------------- ------------- ------------- ------------- ------------- ------------- Total Investment Grade 12,479.0 12,402.2 9,625.9 9,616.8 2,911.4 2,785.4 BB 798.9 814.6 705.3 698.6 95.5 116.0 B 165.7 150.9 113.3 97.3 46.1 53.6 CCC and Lower 45.8 68.9 36.2 51.1 9.9 17.8 In or Near Default 21.4 39.7 19.8 36.1 3.6 3.6 ------------- ------------- ------------- ------------- ------------- ------------- Total Debt Securities $ 13,510.8 $ 13,476.3 $ 10,500.5 $ 10,499.9 $ 3,066.5 $ 2,976.4 ============= ============= ============= ============= ============= ============= % Below Investment Grade 7.6% 8.0% 8.3% 8.4% 5.1% 6.4% - ------------------------------------------------------------------------------------------------------------------------------------ UNREALIZED GAINS AND LOSSES ON DEBT AND EQUITY SECURITIES As of September 30, 2005 Total Outside Closed Block Closed Block ---------------------------- ---------------------------- ---------------------------- Gains Losses Gains Losses Gains Losses ------------- ------------- ------------- ------------- ------------- ------------- Total Debt Securities $ 475.7 $ (116.8) $ 130.6 $ (72.4) $ 345.1 $ (44.4) Equity Securities 104.0 (3.6) 90.2 (0.9) 13.8 (2.7) ------------- ------------- ------------- ------------- ------------- ------------- Total Unrealized Gains (Losses) 579.7 (120.4) 220.8 (73.3) 358.9 (47.1) ------------- ------------- ------------- ------------- ------------- ------------- Applicable Policyholder Dividend Obligation 358.9 (47.1) 0.0 0.0 358.9 (47.1) Applicable Deferred Acquisition Cost (Credit) 73.1 (46.7) 73.1 (46.7) 0.0 0.0 Applicable Deferred Income Tax (Benefit) 51.7 (9.3) 51.7 (9.3) 0.0 0.0 ------------- ------------- ------------- ------------- ------------- ------------- Total Offsets to Net Unrealized Gains (Losses) 483.7 (103.1) 124.8 (56.0) 358.9 (47.1) ------------- ------------- ------------- ------------- ------------- ------------- Net Unrealized Gains (Losses) $ 96.0 $ (17.3) $ 96.0 $ (17.3) $ 0.0 $ 0.0 ============= ============= ============= ============= ============= ============= $ 78.7 $ 78.7 $ 0.0 ============= ============= =============
(1) Excludes debt and equity securities pledged as collateral. 30 THE PHOENIX COMPANIES, INC. GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1) Third Quarter 2005 (Quarters unaudited) ($ in millions)
YTD September December 31, ---------------------------- ------------------------------------------- Quarters ended 2005 2004 2004 2003 2002 ------------- ------------- ------------- ------------- ------------- GAAP NET INVESTMENT INCOME Debt Securities $ 597.7 $ 575.9 $ 772.1 $ 765.5 $ 730.8 Equity Securities 6.7 3.1 4.5 4.6 4.2 Mortgages 14.5 17.2 22.5 32.6 40.4 Policy Loans 123.5 126.2 167.1 171.7 171.8 Venture Capital 17.0 15.7 25.5 49.1 (59.3) Cash & Cash Equivalents 5.1 3.1 4.9 7.0 11.9 Other (2) 33.8 37.9 48.8 35.0 18.9 ------------- ------------- ------------- ------------- ------------- Total Cash and Invested Assets 798.3 779.1 1,045.4 1,065.5 918.7 ------------- ------------- ------------- ------------- ------------- Investment Expenses 6.4 7.1 9.8 10.0 9.2 ------------- ------------- ------------- ------------- ------------- Total Net Investment Income $ 791.9 $ 772.0 $ 1,035.6 $ 1,055.5 $ 909.5 ============= ============= ============= ============= ============= ANNUALIZED YIELDS Debt Securities 6.0% 6.0% 5.9% 6.0% 6.3% Equity Securities 4.0% 1.3% 1.3% 1.4% 1.3% Mortgages 10.2% 10.0% 11.0% 11.2% 8.8% Policy Loans 7.7% 7.8% 7.9% 8.0% 8.2% Venture Capital 5.4% 8.9% 10.8% 23.0% -22.8% Cash & Cash Equivalents 1.7% 0.8% 1.1% 1.3% 1.4% Other (2) 6.4% 12.4% 13.0% 10.5% 3.6% ------------- ------------- ------------- ------------- ------------- Total Cash and Invested Assets 6.1% 6.2% 6.2% 6.4% 5.7% ------------- ------------- ------------- ------------- ------------- Investment Expenses 0.0% 0.1% 0.2% 0.1% 0.1% ------------- ------------- ------------- ------------- ------------- Total Net Investment Income 6.1% 6.2% 6.1% 6.6% 5.6% ============= ============= ============ ============= =============
(1) Excludes debt and equity securities pledged as collateral. (2) Includes real estate, affiliates and other invested assets. 31 THE PHOENIX COMPANIES, INC. GENERAL ACCOUNT GAAP NET INVESTMENT INCOME YIELDS (1) Third Quarter 2005 (Quarters unaudited) ($ in millions)
2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- GAAP NET INVESTMENT INCOME Debt Securities $ 191.7 $ 191.8 $ 192.4 $ 196.2 $ 197.3 $ 199.4 $ 201.0 Equity Securities .4 1.6 1.1 1.4 2.1 3.0 1.6 Mortgages 5.9 5.4 5.9 5.3 6.4 4.2 3.9 Policy Loans 42.2 41.7 42.3 40.9 40.7 40.6 42.2 Venture Capital 17.6 1.8 (3.7) 9.8 (2.8) 3.3 16.5 Cash & Cash Equivalents .7 1.0 1.4 1.8 1.7 1.8 1.6 Other (2) 9.6 11.0 17.3 9.9 15.5 5.3 13.0 ------------ ------------ ------------ ------------- ------------ ------------ ------------ Total Cash and Invested Assets 268.1 254.3 256.7 265.3 260.9 257.6 279.8 ------------ ------------ ------------ ------------- ------------ ------------ ------------ Investment Expenses 2.8 1.9 2.4 2.7 3.1 2.0 1.3 ------------ ------------ ------------ ------------- ------------ ------------ ------------ Total Net Investment Income $ 265.3 $ 252.4 $ 254.3 $ 262.6 $ 257.8 $ 255.6 $ 278.5 ============ ============ ============ ============= ============ ============ ============ ANNUALIZED YIELDS Debt Securities 5.9% 5.9% 6.0% 6.0% 6.0% 6.0% 6.1% Equity Securities 0.5% 2.0% 1.4% 1.6% 2.3% 3.4% 2.2% Mortgages 8.9% 8.5% 10.3% 10.3% 14.1% 13.1% 10.3% Policy Loans 7.9% 7.7% 7.9% 7.7% 7.8% 7.7% 7.9% Venture Capital 34.0% 2.9% -5.8% 17.0% -4.3% 0.4% 30.0% Cash & Cash Equivalents 0.7% 0.8% 1.0% 1.6% 1.7% 1.6% 2.8% Other (2) 10.7% 9.9% 17.1% 10.4% 19.7% 13.0% 16.6% ------------ ------------ ------------ ------------- ------------ ------------ ------------ Total Cash and Invested Assets 6.4% 6.0% 6.2% 6.3% 6.3% 6.2% 6.8% ------------ ------------ ------------ ------------- ------------ ------------ ------------ Investment Expenses 0.1% 0.1% 0.2% 0.2% 0.1% 0.1% 0.0% ------------ ------------ ------------ ------------- ------------ ------------ ------------ Total Net Investment Income 6.3% 5.9% 6.0% 6.2% 6.2% 6.1% 6.7% ============ ============ ============ ============= ============ ============ ============
(1) Excludes debt and equity securities pledged as collateral. (2) Includes real estate, affiliates and other invested assets. 32 THE PHOENIX COMPANIES, INC. GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES Third Quarter 2005 (unaudited) ($ in millions)
YTD September December 31, ---------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 ------------- ------------- ------------- ------------- ------------- ------------- REALIZED INVESTMENT GAINS AND LOSSES Debt Security Impairments $ (25.0) $ (8.6) $ (15.5) $ (76.1) $ (114.3) $ (46.1) Equity Security Impairments (1.5) (4.3) (9.8) Affiliated Equity Securities (12.6) (96.9) Venture Capital Partnerships Impairments (4.6) (5.1) Real Estate Impairments (6.6) Debt and Equity Securities Pledged as Collateral Impairments (1.0) (16.6) (16.6) (8.3) (34.9) (39.0) Mortgage Loan Impairments (.8) (4.1) (.6) (6.1) Other Invested Asset Impairments (3.3) (3.3) (9.9) (22.0) (3.7) ------------- ------------- ------------- ------------- ------------- ------------- Total Impairment Losses (26.8) (28.5) (49.5) (210.8) (186.7) (94.9) ------------- ------------- ------------- ------------- ------------- ------------- Debt Security Net Transaction Gains (Losses) (9.5) 16.8 28.4 64.7 48.4 21.7 Equity Security Net Transaction Gains (Losses) 1.8 11.9 14.6 49.2 2.1 (8.8) Venture Capital Net Investment Gains (Losses) (9.7) Mortgage Loan Net Transaction Gains (Losses) 3.7 .2 .2 (1.3) .2 7.1 Real Estate Net Transaction Gains (Losses) (.8) (.6) (.8) (.2) 4.0 (2.5) Other Invested Asset Net Transactions Gains (Losses) 7.1 (.6) 6.3 9.6 (1.9) (7.5) Debt and Equity Securities Pledged as Collateral .2 ------------- ------------- ------------- ------------- ------------- ------------- Total Net Transactions Gains (Losses) 2.5 27.7 48.7 112.3 52.8 10.0 ------------- ------------- ------------- ------------- ------------- ------------- Net Realized Investment Gains (Losses) (24.3) (.8) (.8) (98.5) (133.9) (84.9) ============= ============= ============= ============= ============= ============= Closed Block Applicable PDO (Reduction) (6.9) 4.8 3.7 (5.9) (40.3) (15.4) Applicable Deferred Acquisition Costs (Credit) (8.3) (.9) (.4) (4.1) (7.2) 10.5 Applicable Deferred Income Tax (Credit) (3.0) 7.4 3.1 (35.6) (20.8) (24.5) ------------- ------------- ------------- ------------- ------------- ------------- Net Realized Investment (Losses) Included in Net Income (1) $ (6.1) $ (12.1) $ (7.2) $ (52.9) $ (65.6) $ (55.5) ============= ============= ============= ============= ============= =============
(1) Includes realized losses on our equity interest in Aberdeen of $7.0 million in 2005 and $55.0 million in 2003, respectively. 33 THE PHOENIX COMPANIES, INC. GENERAL ACCOUNT REALIZED INVESTMENT GAINS AND LOSSES Third Quarter 2005 (unaudited) ($ in millions)
2004 2005 ---------------------------------------------------------- ------------------------------------------- Quarters ended March June September December March June September ------------- ------------- ------------- ------------- ------------- ------------- ------------- REALIZED INVESTMENT GAINS AND LOSSES Debt Security Impairments $ (2.8) $ (1.2) $ (4.6) $ (6.9) $ (12.2) $ (8.5) $ (4.3) Equity Security Impairments (1.5) Affiliated Equity Securities (12.6) Debt and Equity Securities Pledged as Collateral Impairments (4.7) (3.6) (8.3) (.3) (.7) Mortgage Loan Impairments (.8) Other Invested Asset Impairments (3.3) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Impairment Losses (10.8) (4.8) (12.9) (21.0) (12.5) (10.0) (4.3) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Debt Security Net Transaction Gains (Losses) 7.0 6.1 3.7 11.6 (7.2) .1 (2.4) Equity Security Net Transaction Gains (Losses) 2.2 9.5 .2 2.7 (1.0) .4 2.4 Mortgage Loan Net Transaction Gains (Losses) .2 3.7 Real Estate Net Transaction Gains (Losses) (.6) (.2) (.3) (.3) (.2) Other Invested Asset Net Transactions Gains (Losses) 3.9 4.2 (.1) (1.7) (1.3) 2.5 5.9 Debt and Equity Securities Pledged as Collateral .7 (.5) ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Net Transactions Gains (Losses) 13.3 19.2 3.8 12.4 (5.4) 2.2 5.7 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Realized Investment Gains (Losses) 2.5 14.4 (9.1) (8.6) (17.9) (7.8) 1.4 ============= ============= ============= ============= ============= ============= ============= Closed Block Applicable PDO (Reduction) .1 7.2 (2.5) (1.1) (4.4) (6.7) 4.2 Applicable Deferred Acquisition Costs (Credit) .4 (1.2) (.1) .5 (4.8) 1.0 (4.5) Applicable Deferred Income Tax (Credit) 1.2 4.2 2.0 (4.3) (3.2) (.3) .5 ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Realized Investment Gains (Losses) Included in Net Income (1) $ .8 $ 4.2 $ (8.5) $ (3.7) $ (5.5) $ (1.8) $ 1.2 ============= ============= ============= ============= ============= ============= =============
(1) Includes realized losses of $7.0 million for March 2005 related to our equity interest in Aberdeen. 34 -----END PRIVACY-ENHANCED MESSAGE-----