EX-99.1 2 pnx_ex991v2.htm PRESS RELEASE The Phoenix Companies, Inc.

Exhibit 99.1


[pnx_ex991v2002.gif]

 







The Phoenix Companies, Inc.

  

  

 

Financial Supplement

 

 

 

 

 

 

 

Wall Street Coverage

 

 

Transfer Agent and Registrar

Firm

Analyst

 

 

For information or assistance regarding your account, please contact our transfer agent and registrar:

Barclays Capital

Eric Berg

 

 

Credit Suisse Securities (USA)

Tom Gallagher

 

 

The Phoenix Companies, Inc. C/O BNY Mellon Shareowner Services

Dowling & Partners

Paul Goulekas / Sean Rourke

 

 

P.O. Box 358015, Pittsburgh, PA 15258

JP Morgan

Jimmy Bhullar

 

 

Toll-free: 1-800-490-4258   Int'l: 201-680-6823

Langen McAlenney

Robert Glasspiegel

 

 

TDD: 800-231-5469, Int'l TDD: 201-680-6610

Raymond James & Associates

Steven Schwartz

 

 

E-mail: shrrelations@bnymellon.com

 

UBS

Andrew Kligerman

 

 

Web: www.bnymellon.com/shareowner/isd

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For More Information

 

 

 

To receive additional information, including financial supplements and Securities and Exchange Commission filings along with access to other shareholder services, visit the Investor Relations Section on our Web site at Phoenixwm.com or contact our Investor Relations Department at:

 

 

 

 

 

 

 

Shareholder Information

 

 

Security Listings

 

 

The Phoenix Companies, Inc.

The common stock of The Phoenix Companies, Inc. is traded on the New York Stock Exchange (NYSE) under the symbol "PNX." Our 7.45 percent bond is traded on the NYSE under the symbol "PFX."

 

 

Investor Relations

 

 

One American Row

 

 

P.O. Box 5056, Hartford, CT  06102-5056

 

 

Phone: 1-860-403-7100

 

 

Fax: 1-860-403-7880

 

 

 

e-mail: pnx.ir@phoenixwm.com

 

 

 

 

For more information on our products and services, call your Phoenix representative or visit our Web site at Phoenixwm.com.

 

In managing our business, we analyze our performance on the basis of “operating income” which does not equate to net income as determined in accordance with GAAP. Rather, it is the measure of profit or loss used by our management to evaluate performance, allocate resources and manage our operations. We believe that operating income, and measures that are derived from or incorporate operating income, are appropriate measures that are useful to investors as well, because they identify the earnings of, and underlying profitability factors affecting, the ongoing operations of our business. Operating income is calculated by excluding realized investment gains (losses) and certain other items because we do not consider them to be related to our operating performance. The size and timing of realized investment gains (losses) are often subject to our discretion. Certain other items are also excluded from operating income if, in our opinion, they are not indicative of overall operating trends. The criteria used to identify an item that will be excluded from operating income include: whether the item is infrequent and is material to our income; or whether it results from a change in regulatory requirements, or relates to other unusual circumstances. Items excluded from operating income may vary from period to period. Because these items are excluded based on our discretion, inconsistencies in the application of our selection criteria may exist. Some of these items may be significant components of net income in accordance with GAAP. Accordingly, operating income, or measures that are derived from or incorporate net income, determined in accordance with GAAP and may be different from similarly titled measures of other companies.


Total operating return on equity (“ROE”) is an internal performance measure used in the management of our operations, including our compensation plans and planning processes. Our management believes that this measure provides investors with a useful metric to assess our performance and effectiveness of our use of historic capital. ROE is calculated by dividing (i) total operating income, by (ii) average equity, excluding accumulated OCI, FIN 46-R and discontinued operations. Total operating return on tangible equity (“return on tangible equity”) is also an internal performance measure used in the evaluation of our operations. Our management believes that this measure provides investors with a useful metric to assess our performance and the effectiveness of our use of current capital. Return on tangible equity is calculated by dividing (i) total operating income, by (ii) average equity, excluding accumulated OCI, FIN 46-R, discontinued operations and the carrying value of goodwill and intangible assets.









The Phoenix Companies, Inc.

 

Financial Supplement

 

September 2009 (unaudited)

 

 

 

Table of Contents

 

 

 

 

 

Financial Highlights

1

Consolidated Income Statement

2

Alternate Operating Income Statement Details excluding Regulatory Closed Block

4

Closed Block Assets and Liabilities

6

Variable Universal Life Funds Under Management

8

Universal Life / Interest Sensitive Funds Under Management

10

Life and Private Placement Sales

12

Annuities Funds Under Management and Annuities Supplementary Information

14

Deferred Policy Acquisition Costs

16

Consolidated Statement of Income - GAAP Format

18

Condensed Consolidated Balance Sheet - Preliminary

20

General Account Investment Portfolio Summary

21

General Account GAAP Net Investment Income Yields

22

General Account Realized Investment Gains and Losses

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 










The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(amount in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Period Ended:

YTD September

 

December 31,

 

2009

 

2008

 

2007

 

2006

 

2005

Balance Sheet Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Account Invested Assets

 

$

13,926.6 

 

    

$

13,674.8 

     

$

15,764.5 

    

$

16,113.6 

    

$

16,692.8 

Separate Account Assets

 

 

8,429.9 

 

 

 

7,930.2 

 

 

10,820.3 

 

 

9,458.6 

 

 

7,722.2 

Total Assets

 

 

25,411.8 

 

 

 

25,768.8 

 

 

30,418.3 

 

 

29,026.2 

 

 

27,744.4 

Indebtedness

 

 

433.6 

 

 

 

458.0 

 

 

627.7 

 

 

628.2 

 

 

659.9 

Total Stockholders' Equity

 

 

1,184.9 

 

 

 

865.0 

 

 

2,279.0 

 

 

2,231.5 

 

 

2,007.1 

Total Stockholders' Equity, excluding SFAS 115,
other accumulated OCI and FIN 46-R

 

$

1,408.7 

 

 

$

1,665.7 

 

$

2,470.0 

 

$

2,360.0 

 

$

2,118.9 

Average Equity, excluding other accumulated OCI,
FIN 46-R and Discontinued Operations (1)

 

$

1,523.3 

 

 

$

1,808.3 

 

$

2,381.8 

 

$

2,239.4 

 

$

2,017.1 

Total Operating Return on Equity (1)

 

 

-11.97%

 

 

 

-4.51%

 

 

5.38%

 

 

3.68%

 

 

4.99%

Average Tangible Common Equity (2)

 

$

1,496.0 

 

 

$

1,702.2 

 

$

1,703.1 

 

$

1,516.8 

 

$

1,280.4 

Total Operating Return on Average Tangible Equity (2)

 

 

-12.18%

 

 

 

-4.79%

 

 

7.94%

 

 

5.74%

 

 

7.86%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Total Capitalization (4)

 

 

23.5%

 

 

 

21.6%

 

 

20.3%

 

 

21.0%

 

 

23.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Share

 

$

10.25 

 

 

$

7.56 

 

$

19.94 

 

$

19.63 

 

$

21.10 

Book Value Per Share, excluding SFAS 115
and other accumulated OCI

 

$

12.18 

 

 

$

14.06 

 

$

21.15 

 

$

20.29 

 

$

21.72 

Book Value Per Share, excluding SFAS 115,
other accumulated OCI and FIN 46-R

 

$

12.18 

 

 

$

14.56 

 

$

21.61 

 

$

20.76 

 

$

22.28 

Period-end Common Shares Outstanding

 

 

115.6 

 

 

 

114.4 

 

 

114.3 

 

 

113.7 

 

 

95.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indebtedness:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Surplus Notes

 

$

174.1 

 

 

$

174.1 

 

$

174.0 

 

$

174.0 

 

$

204.2 

Senior Unsecured Bonds - due 2008

 

 

— 

 

 

 

— 

 

 

153.7 

 

 

153.7 

 

 

153.7 

Senior Unsecured Bonds - due 2032

 

 

259.5 

 

 

 

283.9 

 

 

300.0 

 

 

300.0 

 

 

300.0 

Interest Rate Swap

 

 

— 

 

 

 

— 

 

 

— 

 

 

0.5 

 

 

2.0 

Total Indebtedness

 

$

433.6 

 

 

$

458.0 

 

$

627.7 

 

$

628.2 

 

$

659.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statutory Financial Data for
Phoenix Life Insurance Company (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital, Surplus and Surplus Notes

 

$

517.5 

 

 

$

758.9 

 

$

848.2 

 

$

932.5 

 

$

885.5 

Asset Valuation Reserve (AVR)

 

 

82.9 

 

 

 

94.4 

 

 

192.5 

 

 

187.8 

 

 

210.8 

Capital, Surplus, Surplus Notes and AVR

 

$

600.4 

 

 

$

853.3 

 

$

1,040.7 

 

$

1,120.3 

 

$

1,096.3 

Policyholder Dividend Liability

 

$

332.6 

 

 

$

324.2 

 

$

355.6 

 

$

348.9 

 

$

356.1 

Interest Maintenance Reserve

 

$

(42.0)

 

 

$

(44.2)

 

$

(44.4)

 

$

(44.3)

 

$

(23.1)

Statutory Gain From Operations

 

$

29.3 

 

 

$

53.4 

 

$

115.2 

 

$

131.6 

 

$

106.2 

Statutory Net Income (Loss)

 

$

(35.2)

 

 

$

(82.3)

 

$

80.0 

 

$

162.0 

 

$

61.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

This average equity is used for the calculation of total operating return on equity and represents the average of the monthly average of equity, excluding other accumulated OCI, the effects of FIN 46-R and the equity of discontinued operations.

(2)

This average equity is used for the calculation of total operating return on tangible equity and represents the average of the monthly average of equity, excluding other accumulated OCI, the effects of FIN 46-R, the equity of discontinued operations and the carrying value of goodwill and intangible assets.

(3)

Phoenix Life Insurance Company is required to file financial statements with state regulatory authorities prepared on an accounting basis prescribed or permitted by the Insurance Department of the State of New York.  September 2009 amounts are preliminary.

(4)

This debt to total capitalization is based on total stockholders' equity, excluding SFAS 115, other accumulated OCI and FIN 46-R.



1




The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(amount in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

 

2008

 

 

2008

 

 

2007

 

 

2006

 

2005

Consolidated Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

513.7 

 

   

$

566.7 

   

$

765.9 

   

$

798.3 

   

$

839.7 

  

$

928.7 

Fees

 

 

490.4 

 

 

 

461.9 

 

 

622.2 

 

 

516.9 

 

 

414.9 

 

 

346.1 

Net Investment Income

 

 

581.4 

 

 

 

706.4 

 

 

909.5 

 

 

1,037.6 

 

 

1,024.3 

 

 

1,059.8 

Total Revenue

 

 

1,585.5 

 

 

 

1,735.0 

 

 

2,297.6 

 

 

2,352.8 

 

 

2,278.9 

 

 

2,334.6 

Policy Benefits and Increase in Policy Liabilities

 

 

973.8 

 

 

 

999.4 

 

 

1,370.9 

 

 

1,318.5 

 

 

1,341.1 

 

 

1,376.7 

Policyholder Dividends

 

 

185.5 

 

 

 

253.6 

 

 

327.7 

 

 

375.6 

 

 

353.1 

 

 

376.9 

Policy Acquisition Cost Amortization

 

 

162.5 

 

 

 

177.1 

 

 

434.8 

 

 

192.8 

 

 

149.2 

 

 

114.5 

Goodwill Impairment

 

 

27.0 

 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Controllable and Other Expenses

 

 

241.4 

 

 

 

216.7 

 

 

283.2 

 

 

268.9 

 

 

251.6 

 

 

289.0 

Interest Expense on Indebtedness

 

 

25.1 

 

 

 

27.8 

 

 

36.7 

 

 

44.2 

 

 

49.2 

 

 

46.6 

Total Benefits and Expenses

 

 

1,615.3 

 

 

 

1,674.6 

 

 

2,453.3 

 

 

2,200.0 

 

 

2,144.2 

 

 

2,203.7 

Pre-tax Operating Income (Loss)

 

 

(29.8)

 

 

 

60.4 

 

 

(155.7)

 

 

152.8 

 

 

134.7 

 

 

130.9 

Applicable Income Taxes (Benefit)

 

 

106.9 

 

 

 

24.6 

 

 

(74.1)

 

 

28.9 

 

 

40.8 

 

 

27.8 

Operating Income (Loss)

 

 

(136.7)

 

 

 

35.8 

 

 

(81.6)

 

 

123.9 

 

 

93.9 

 

 

103.1 

Net Realized Investment Gains (Losses)

 

 

(46.5)

 

 

 

(40.3)

 

 

(88.6)

 

 

(8.4)

 

 

21.0 

 

 

25.8 

Earnings on CDOs Consolidated Under FIN-46R

 

 

— 

 

 

 

(3.0)

 

 

(4.2)

 

 

1.0 

 

 

(1.0)

 

 

1.3 

Discontinued Operations

 

 

(29.4)

 

 

 

(340.2)

 

 

(551.6)

 

 

1.1 

 

 

(18.2)

 

 

(10.7)

Other Income (Expenses) Excluded from Operating Income

 

 

— 

 

 

 

— 

 

 

— 

 

 

— 

 

 

(0.4)

 

 

(11.1)

Net Income (Loss)

 

$

(212.6)

 

 

$

(347.7)

 

$

(726.0)

 

$

117.6 

 

$

95.3 

 

$

108.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Shares Outstanding

 

 

115.8 

 

 

 

114.4 

 

 

114.4 

 

 

114.1 

 

 

110.9 

 

 

95.0 

Total Operating Income (Loss) Per Share

 

$

(1.18)

 

 

$

0.31 

 

$

(0.71)

 

$

1.09 

 

$

0.85 

 

$

1.09 

Net Income (Loss) Per Share

 

$

(1.84)

 

 

$

(3.04)

 

$

(6.35)

 

$

1.03 

 

$

0.86 

 

$

1.14 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Shares Outstanding and Dilutive Potential Common Shares

 

 

115.8 

 

 

 

114.4 

 

 

114.4 

 

 

116.0 

 

 

113.2 

 

 

102.4 

Total Operating Income (Loss) Per Share

 

$

(1.18)

 

 

$

0.31 

 

$

(0.71)

 

$

1.07 

 

$

0.83 

 

$

1.01 

Net Income (Loss) Per Share

 

$

(1.84)

 

 

$

(3.04)

 

$

(6.35)

 

$

1.01 

 

$

0.84 

 

$

1.06 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





2



The Phoenix Companies, Inc. 

 

Consolidated Income Statement

 

Third Quarter 2009 (unaudited)

 

(amount in millions, except per share data)

 

 

Quarters ended

 

 

 

2008

 

2009

 

 

 

March

 

 

June

 

 

September

 

 

December

 

 

March

 

 

June

 

September

Consolidated Income Statement

 

 

               

    

 

               

    

 

 

    

 

               

    

 

               

    

 

               

    

 

 

               

 

Premiums

 

$

180.2 

 

$

191.3 

 

$

195.2 

 

$

199.2 

 

$

172.2 

 

$

170.6 

 

 

$

170.9 

 

Fees

 

 

149.7 

 

 

154.4 

 

 

157.8 

 

 

160.3 

 

 

158.9 

 

 

160.3 

 

 

 

171.2 

 

Net Investment Income

 

 

245.5 

 

 

244.4 

 

 

216.5 

 

 

203.1 

 

 

185.3 

 

 

194.8 

 

 

 

201.3 

 

Total Revenue

 

 

575.4 

 

 

590.1 

 

 

569.5 

 

 

562.6 

 

 

516.4 

 

 

525.7 

 

 

 

543.4 

 

Policy Benefits and Increase in Policy
Liabilities

 

 

335.8 

 

 

327.0 

 

 

336.6 

 

 

371.5 

 

 

318.8 

 

 

346.6 

 

 

 

308.4 

 

Policyholder Dividends

 

 

89.2 

 

 

95.5 

 

 

68.9 

 

 

74.1 

 

 

50.3 

 

 

61.8 

 

 

 

73.4 

 

Policy Acquisition Cost Amortization

 

 

46.0 

 

 

59.0 

 

 

72.1 

 

 

257.7 

 

 

66.2 

 

 

33.1 

 

 

 

63.2 

 

Goodwill Impairment

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

 

27.0 

 

Controllable and Other Expenses

 

 

79.3 

 

 

72.5 

 

 

64.9 

 

 

66.5 

 

 

80.2 

 

 

73.0 

 

 

 

88.2 

 

Interest Expense on Indebtedness

 

 

10.2 

 

 

8.8 

 

 

8.8 

 

 

8.9 

 

 

8.5 

 

 

8.3 

 

 

 

8.3 

 

Total Benefits and Expenses

 

 

560.5 

 

 

562.8 

 

 

551.3 

 

 

778.7 

 

 

524.0 

 

 

522.8 

 

 

 

568.5 

 

Pre-tax Operating Income (Loss)

 

 

14.9 

 

 

27.3 

 

 

18.2 

 

 

(216.1)

 

 

(7.6)

 

 

2.9 

 

 

 

(25.1)

 

Applicable Income Taxes (Benefit)

 

 

5.8 

 

 

8.0 

 

 

10.8 

 

 

(98.7)

 

 

110.2 

 

 

19.0 

 

 

 

(22.3)

 

Operating Income (Loss)

 

 

9.1 

 

 

19.3 

 

 

7.4 

 

 

(117.4)

 

 

(117.8)

 

 

(16.1)

 

 

 

(2.8)

 

Net Realized Investment Gains (Losses)

 

 

(14.6)

 

 

(8.7)

 

 

(17.0)

 

 

(48.3)

 

 

44.8 

 

 

(68.8)

 

 

 

(22.5)

 

Earnings on CDOs Consolidated Under
FIN-46R

 

 

0.8 

 

 

0.6 

 

 

(4.4)

 

 

(1.2)

 

 

— 

 

 

— 

 

 

 

— 

 

Discontinued Operations

 

 

(9.7)

 

 

(5.0)

 

 

(325.5)

 

 

(211.4)

 

 

(1.8)

 

 

(26.3)

 

 

 

(1.3)

 

Net Income (Loss)

 

$

(14.4)

 

$

6.2 

 

$

(339.5)

 

$

(378.3)

 

$

(74.8)

 

$

(111.2)

 

 

$

(26.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Shares Outstanding

 

 

114.3 

 

 

114.4 

 

 

114.4 

 

 

114.4 

 

 

115.6 

 

 

116.0 

 

 

115.9 

 

Total Operating Income (Loss) Per Share

 

$

0.08 

 

$

0.17 

 

$

0.06 

 

$

(1.03)

 

$

(1.02)

 

$

(0.14)

 

 

$

(0.02)

 

Net Income (Loss) Per Share

 

$

(0.13)

 

$

0.05 

 

$

(2.97)

 

$

(3.31)

 

$

(0.65)

 

$

(0.96)

 

 

$

(0.23)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Shares Outstanding and
Dilutive Potential Common Shares

 

 

114.3 

 

 

116.0 

 

 

114.4 

 

 

114.4 

 

 

115.6 

 

 

116.0 

 

 

 

115.9 

 

Total Operating Income (Loss) Per Share

 

$

0.08 

 

$

0.17 

 

$

0.06 

 

$

(1.03)

 

$

(1.02)

 

$

(0.14)

 

 

$

(0.02)

 

Net Income (Loss) Per Share

 

$

(0.13)

 

$

0.05 

 

$

(2.97)

 

$

(3.31)

 

$

(0.65)

 

$

(0.96)

 

 

$

(0.23)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





3



The Phoenix Companies, Inc.

Alternate Operating Income Statement

Details excluding Regulatory Closed Block

Third Quarter 2009 (unaudited)

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

 

2009

 

 

2008

 

2008

 

2007

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

30.2 

 

   

$

32.3 

   

$

46.6 

   

$

52.7 

   

$

53.1 

  

$

47.1 

Cost of insurance charges

 

 

372.7 

 

 

 

323.1 

 

 

441.4 

 

 

340.7 

 

 

262.8 

 

 

186.6 

Other fees

 

 

98.4 

 

 

 

127.9 

 

 

165.7 

 

 

160.5 

 

 

135.5 

 

 

142.1 

Surrender charges

 

 

19.3 

 

 

 

10.9 

 

 

15.1 

 

 

15.7 

 

 

16.6 

 

 

17.4 

Net investment income on assets backing liabilities

 

 

253.2 

 

 

 

270.6 

 

 

361.9 

 

 

387.2 

 

 

409.6 

 

 

449.9 

Net investment income on assets backing surplus

 

 

(5.3)

 

 

 

34.7 

 

 

24.5 

 

 

78.8 

 

 

74.1 

 

 

53.4 

Total Revenue

 

 

768.5 

 

 

 

799.5 

 

 

1,055.2 

 

 

1,035.6 

 

 

951.7 

 

 

896.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits paid

 

 

659.6 

 

 

 

333.2 

 

 

463.1 

 

 

436.7 

 

 

447.9 

 

 

428.6 

Increases (decreases) in reserves

 

 

(371.2)

 

 

 

(81.2)

 

 

(94.1)

 

 

(144.4)

 

 

(177.3)

 

 

(223.3)

Interest on policyholder funds

 

 

104.4 

 

 

 

116.9 

 

 

154.3 

 

 

157.0 

 

 

171.8 

 

 

191.2 

Policyholder dividends

 

 

0.3 

 

 

 

0.4 

 

 

0.6 

 

 

0.7 

 

 

0.6 

 

 

0.8 

Interest expense on indebtedness

 

 

25.1 

 

 

 

27.8 

 

 

36.7 

 

 

44.2 

 

 

49.2 

 

 

46.6 

Goodwill Impairment

 

 

27.0 

 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Commissions and sales incentives, net of deferrals

 

 

18.6 

 

 

 

35.6 

 

 

43.1 

 

 

36.9 

 

 

37.3 

 

 

37.9 

Operating expenses, net of deferrals

 

 

214.2 

 

 

 

172.8 

 

 

230.0 

 

 

223.9 

 

 

207.6 

 

 

242.5 

Reinsurance allowance, net of deferrals

 

 

(4.1)

 

 

 

(10.2)

 

 

(13.0)

 

 

(13.4)

 

 

(12.3)

 

 

(11.4)

Premium taxes

 

 

8.9 

 

 

 

14.1 

 

 

18.1 

 

 

15.4 

 

 

12.8 

 

 

11.5 

Policy acquisition cost amortization

 

 

162.5 

 

 

 

177.1 

 

 

434.8 

 

 

192.8 

 

 

149.2 

 

 

114.5 

Total Benefits and Expenses

 

 

845.3 

 

 

 

786.5 

 

 

1,273.6 

 

 

949.8 

 

 

886.8 

 

 

838.9 

Pre-tax Operating Income (Loss) excl. Regulatory Closed Block

 

 

(76.8)

 

 

 

13.0 

 

 

(218.4)

 

 

85.8 

 

 

64.9 

 

 

57.6 

Pre-tax Operating Income – Regulatory Closed Block

 

 

47.0 

 

 

 

47.4 

 

 

62.7 

 

 

67.0 

 

 

69.8 

 

 

73.2 

Total Pre-tax Operating Income (Loss)

 

 

(29.8)

 

 

 

60.4 

 

 

(155.7)

 

 

152.8 

 

 

134.7 

 

 

130.8 

Income tax (benefit)

 

 

106.9 

 

 

 

24.6 

 

 

(74.1)

 

 

28.9 

 

 

40.8 

 

 

27.8 

Total Operating Income (Loss)

 

$

(136.7)

 

 

$

35.8 

 

$

(81.6)

 

$

123.9 

 

$

93.9 

 

$

103.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





4



The Phoenix Companies, Inc.

 

Alternate Operating Income Statement

 

Details excluding Regulatory Closed Block

 

Third Quarter 2009 (unaudited)

 

($ in millions)

 

 

 

Quarters ended

 

 

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March

 

June

 

September

 

December

 

March

 

June

 

September

 

 

 

               

 

 

               

 

 

               

 

 

               

 

 

               

 

 

               

 

 

 

               

 

Premiums

 

$

4.7 

    

$

12.4 

    

$

15.1 

    

$

14.3 

    

$

12.4 

    

$

7.9 

    

 

$

9.9 

 

Cost of insurance charges

 

 

103.0 

 

 

106.4 

 

 

113.7 

 

 

118.3 

 

 

121.9 

 

 

124.4 

 

 

 

126.4 

 

Other fees

 

 

42.5 

 

 

44.1 

 

 

41.3 

 

 

37.8 

 

 

31.4 

 

 

29.8 

 

 

 

37.2 

 

Surrender charges

 

 

4.2 

 

 

3.9 

 

 

2.8 

 

 

4.2 

 

 

5.6 

 

 

6.1 

 

 

 

7.6 

 

Net investment income on assets
backing liabilities

 

 

91.8 

 

 

88.8 

 

 

90.0 

 

 

91.3 

 

 

88.3 

 

 

86.3 

 

 

 

78.6 

 

Net investment income on assets
backing surplus

 

 

12.8 

 

 

14.4 

 

 

7.6 

 

 

(10.2)

 

 

(6.7)

 

 

(2.1)

 

 

 

3.5 

 

Total Revenue

 

 

259.0 

 

 

270.0 

 

 

270.5 

 

 

255.7 

 

 

252.9 

 

 

252.4 

 

 

 

263.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits paid

 

 

125.4 

 

 

110.7 

 

 

97.1 

 

 

129.9 

 

 

120.5 

 

 

178.0 

 

 

 

361.1

 

Increases (decreases) in reserves

 

 

(38.4)

 

 

(30.7)

 

 

(12.1)

 

 

(12.9)

 

 

(33.5)

 

 

(61.9)

 

 

 

(275.8)

 

Interest on policyholder funds

 

 

39.1 

 

 

39.1 

 

 

38.7 

 

 

37.4 

 

 

35.4 

 

 

35.9 

 

 

 

33.1 

 

Policyholder dividends

 

 

0.1 

 

 

0.2 

 

 

0.1 

 

 

0.2 

 

 

0.1 

 

 

0.1 

 

 

 

0.1 

 

Interest expense on indebtedness

 

 

10.2 

 

 

8.8 

 

 

8.8 

 

 

8.9 

 

 

8.5 

 

 

8.3 

 

 

 

8.3 

 

Goodwill Impairment

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

 

27.0 

 

Commissions and sales incentives,
net of deferrals

 

 

13.4 

 

 

12.9 

 

 

9.3 

 

 

7.5 

 

 

6.7 

 

 

5.4 

 

 

 

6.5 

 

Operating expenses, net of deferrals

 

 

62.3 

 

 

56.2 

 

 

54.3 

 

 

57.2 

 

 

69.8 

 

 

65.6 

 

 

 

78.8 

 

Reinsurance allowance, net of deferrals

 

 

(3.4)

 

 

(2.5)

 

 

(4.3)

 

 

(2.8)

 

 

(0.8)

 

 

(2.1)

 

 

 

(1.2)

 

Premium taxes

 

 

5.1 

 

 

4.9 

 

 

4.1 

 

 

4.0 

 

 

3.3 

 

 

2.8 

 

 

 

2.8 

 

Policy acquisition cost amortization

 

 

46.0 

 

 

59.0 

 

 

72.1 

 

 

257.7 

 

 

66.2 

 

 

33.1 

 

 

 

63.2 

 

Total Benefits and Expenses

 

 

259.8 

 

 

258.6 

 

 

268.1 

 

 

487.1 

 

 

276.2 

 

 

265.2 

 

 

 

303.9 

 

Pre-tax Operating Income
(Loss) excl. Regulatory
Closed Block

 

 

(0.8)

 

 

11.4 

 

 

2.4 

 

 

(231.4)

 

 

(23.3)

 

 

(12.8)

 

 

 

(40.7)

 

Pre-tax Operating Income – Regulatory
Closed Block

 

 

15.7 

 

 

15.9 

 

 

15.8 

 

 

15.3 

 

 

15.7 

 

 

15.7 

 

 

 

15.6 

 

Total Pre-tax Operating Income
(Loss)

 

 

14.9 

 

 

27.3 

 

 

18.2 

 

 

(216.1)

 

 

(7.6)

 

 

2.9 

 

 

 

(25.1)

 

Income tax (benefit)

 

 

5.8 

 

 

8.0 

 

 

10.8 

 

 

(98.7)

 

 

110.2 

 

 

19.0 

 

 

 

(22.3)

 

Total Operating Income (Loss)

 

$

9.1 

 

$

19.3 

 

$

7.4 

 

$

(117.4)

 

$

(117.8)

 

$

(16.1)

 

 

$

(2.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




5




The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closed Block Assets and Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

$

6,388.6 

 

   

$

6,317.4 

   

$

6,011.4 

   

$

6,919.4 

   

$

7,000.5 

  

$

6,992.0 

Equity securities

 

 

7.6 

 

 

 

109.4 

 

 

9.0 

 

 

134.0 

 

 

120.5 

 

 

95.4 

Mortgage loans

 

 

6.7 

 

 

 

9.5 

 

 

8.9 

 

 

12.7 

 

 

66.5 

 

 

109.9 

Venture capital partnerships

 

 

174.8 

 

 

 

187.0 

 

 

188.5 

 

 

157.3 

 

 

97.9 

 

 

73.4 

Policy loans

 

 

1,402.9 

 

 

 

1,365.7 

 

 

1,377.0 

 

 

1,357.1 

 

 

1,346.6 

 

 

1,349.2 

Other investments

 

 

135.9 

 

 

 

150.0 

 

 

153.3 

 

 

123.7 

 

 

85.5 

 

 

69.3 

Total Closed Block investments

 

 

8,116.5 

 

 

 

8,139.0 

 

 

7,748.1 

 

 

8,704.2 

 

 

8,717.5 

 

 

8,689.2 

Cash and cash equivalents

 

 

20.5 

 

 

 

81.2 

 

 

57.2 

 

 

67.8 

 

 

66.3 

 

 

87.0 

Accrued investment income

 

 

112.1 

 

 

 

116.8 

 

 

113.0 

 

 

112.1 

 

 

112.8 

 

 

118.2 

Receivables

 

 

42.9 

 

 

 

58.2 

 

 

49.5 

 

 

44.7 

 

 

46.7 

 

 

40.9 

Deferred income taxes

 

 

272.5 

 

 

 

428.5 

 

 

418.3 

 

 

329.3 

 

 

329.8 

 

 

328.0 

Other Closed Block assets

 

 

51.3 

 

 

 

18.7 

 

 

338.0 

 

 

10.0 

 

 

19.9 

 

 

24.9 

Total Closed Block assets

 

 

8,615.8 

 

 

 

8,842.4 

 

 

8,724.1 

 

 

9,268.1 

 

 

9,293.0 

 

 

9,288.2 

Policy liabilities and accruals

 

 

9,383.3 

 

 

 

9,792.0 

 

 

9,742.7 

 

 

9,811.2 

 

 

9,798.8 

 

 

9,815.8 

Policyholder dividends payable

 

 

308.4 

 

 

 

340.0 

 

 

311.1 

 

 

332.8 

 

 

331.7 

 

 

338.9 

Policyholder dividend obligation

 

 

— 

 

 

 

— 

 

 

— 

 

 

246.0 

 

 

326.9 

 

 

334.1 

Other Closed Block liabilities

 

 

42.8 

 

 

 

87.1 

 

 

72.0 

 

 

49.3 

 

 

47.9 

 

 

53.8 

Total Closed Block liabilities

 

 

9,734.5 

 

 

 

10,219.1 

 

 

10,125.8 

 

 

10,439.3 

 

 

10,505.3 

 

 

10,542.6 

Excess of Closed Block liabilities over Closed Block assets

 

$

1,118.7 

 

 

$

1,376.7 

 

$

1,401.7 

 

$

1,171.2 

 

$

1,212.3 

 

$

1,254.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




6



The Phoenix Companies, Inc.

 

Closed Block Assets and Liabilities

 

Third Quarter 2009 (unaudited)

 

($ in millions)

 

 

 

 

 

2008

 

2009

 

 

March

 

June

 

September

 

December

 

March

 

June

 

September

 

 

 

               

 

 

               

 

 

               

 

 

               

 

 

               

 

 

               

 

 

 

               

 

Debt securities

 

$

6,826.5 

    

$

6,671.0 

    

$

6,317.4 

    

$

6,011.4 

    

$

5,969.3 

    

$

6,123.6 

   

 

$

6,388.6 

 

Equity securities

 

 

122.3 

 

 

118.0 

 

 

109.4 

 

 

9.0 

 

 

9.0 

 

 

8.4 

 

 

 

7.6 

 

Mortgage loans

 

 

11.9 

 

 

10.1 

 

 

9.5 

 

 

8.9 

 

 

7.8 

 

 

7.3 

 

 

 

6.7 

 

Venture capital partnerships

 

 

174.8 

 

 

187.7 

 

 

187.0 

 

 

188.5 

 

 

174.0 

 

 

168.3 

 

 

 

174.8 

 

Policy loans

 

 

1,358.8 

 

 

1,368.7 

 

 

1,365.7 

 

 

1,377.0 

 

 

1,411.6 

 

 

1,414.3 

 

 

 

1,402.9 

 

Other investments

 

 

131.2 

 

 

139.2 

 

 

150.0 

 

 

153.3 

 

 

146.5 

 

 

137.2 

 

 

 

135.9 

 

Total Closed Block investments

 

 

8,625.5 

 

 

8,494.7 

 

 

8,139.0 

 

 

7,748.1 

 

 

7,718.2 

 

 

7,859.1 

 

 

 

8,116.5 

 

Cash and cash equivalents

 

 

60.2 

 

 

97.5 

 

 

81.2 

 

 

57.2 

 

 

21.5 

 

 

17.1 

 

 

 

20.5 

 

Accrued investment income

 

 

115.6 

 

 

110.5 

 

 

116.8 

 

 

113.0 

 

 

112.5 

 

 

108.4 

 

 

 

112.1 

 

Receivables

 

 

44.6 

 

 

48.2 

 

 

58.2 

 

 

49.5 

 

 

53.8 

 

 

64.6 

 

 

 

42.9 

 

Deferred income taxes

 

 

324.7 

 

 

324.0 

 

 

428.5 

 

 

418.3 

 

 

419.3 

 

 

361.4 

 

 

 

272.5 

 

Other Closed Block assets

 

 

16.0 

 

 

36.2 

 

 

18.7 

 

 

338.0 

 

 

330.5 

 

 

214.0 

 

 

 

51.3 

 

Total Closed Block assets

 

 

9,186.6 

 

 

9,111.1 

 

 

8,842.4 

 

 

8,724.1 

 

 

8,655.8 

 

 

8,624.6 

 

 

 

8,615.8 

 

Policy liabilities and accruals

 

 

9,800.7 

 

 

9,806.8 

 

 

9,792.0 

 

 

9,742.7 

 

 

9,626.5 

 

 

9,531.1 

 

 

 

9,383.3 

 

Policyholder dividends payable

 

 

337.1 

 

 

339.3 

 

 

340.0 

 

 

311.1 

 

 

312.1 

 

 

311.7 

 

 

 

308.4 

 

Policyholder dividend obligation

 

 

149.8 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

 

— 

 

Other Closed Block liabilities

 

 

59.9 

 

 

141.1 

 

 

87.1 

 

 

72.0 

 

 

93.1 

 

 

58.0 

 

 

 

42.8 

 

Total Closed Block liabilities

 

 

10,347.5 

 

 

10,287.2 

 

 

10,219.1 

 

 

10,125.8 

 

 

10,031.7 

 

 

9,900.8 

 

 

 

9,734.5 

 

Excess of Closed Block liabilities
over Closed Block assets

 

$

1,160.9 

 

$

1,176.1 

 

$

1,376.7 

 

$

1,401.7 

 

$

1,375.9 

 

$

1,276.2 

 

 

$

1,118.7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 



7



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life Funds Under Management

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

Funds Under Management (FUM)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, excluding Private Placement

 

$

91.3 

 

   

$

106.8 

   

$

142.2 

   

$

153.8 

   

$

149.0 

   

$

171.4 

Surrenders, excluding Private Placement

 

 

(114.7)

 

 

 

(87.3)

 

 

(105.4)

 

 

(102.1)

 

 

(85.9)

 

 

(84.4)

Net Sales, excluding Private Placement

 

 

(23.4)

 

 

 

19.5 

 

 

36.8 

 

 

51.7 

 

 

63.1 

 

 

87.0 

Private Placement, Net Sales

 

 

(3.8)

 

 

 

57.6 

 

 

68.6 

 

 

50.4 

 

 

1.0 

 

 

36.7 

Total Net Sales

 

 

(27.2)

 

 

 

77.1 

 

 

105.4 

 

 

102.1 

 

 

64.1 

 

 

123.7 

Deaths

 

 

(2.1)

 

 

 

(4.0)

 

 

(4.6)

 

 

(19.6)

 

 

(4.7)

 

 

(3.6)

Interest Credited

 

 

240.6 

 

 

 

(354.7)

 

 

(713.0)

 

 

195.3 

 

 

259.9 

 

 

141.5 

Acquisitions (Dispositions)

 

 

— 

 

 

 

11.2 

 

 

11.2 

 

 

218.8 

 

 

— 

 

 

— 

Fees

 

 

(16.4)

 

 

 

(25.5)

 

 

(32.3)

 

 

(33.5)

 

 

(30.4)

 

 

(30.3)

Cost of Insurance

 

 

(66.3)

 

 

 

(62.8)

 

 

(85.1)

 

 

(79.9)

 

 

(75.8)

 

 

(74.6)

Change in FUM

 

 

128.6 

 

 

 

(358.7)

 

 

(718.4)

 

 

383.2 

 

 

213.1 

 

 

156.7 

Beginning Balance

 

 

1,977.9 

 

 

 

2,696.3 

 

 

2,696.3 

 

 

2,313.1 

 

 

2,100.0 

 

 

1,943.3 

Ending Fund Balance

 

$

2,106.5 

 

 

$

2,337.6 

 

$

1,977.9 

 

$

2,696.3 

 

$

2,313.1 

 

$

2,100.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Life Insurance In Force (1)

 

$

23,435.0 

 

 

$

24,760.0 

 

$

24,934.5 

 

$

24,714.2 

 

$

24,164.6 

 

$

24,767.7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

2006 and 2005 face amounts updated to include the term rider face amounts for all variable universal life products.




8



The Phoenix Companies, Inc.

 

Variable Universal Life Funds Under Management

 

Third Quarter 2009 (unaudited)

 

($ in millions)

 

 

 

Quarters ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

2009

 

 

March

 

June

 

September

 

December

 

March

 

June

 

September

 

  

 

                

 

 

                

 

 

                

 

 

                

 

 

                

 

 

                

 

 

 

                

 

Funds Under Management (FUM)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, excluding Private Placement

 

$

38.1 

    

$

34.7 

    

$

34.0 

    

$

35.4 

    

$

31.2 

    

$

31.7 

    

 

$

28.4 

 

Surrenders, excluding Private Placement

 

 

(25.9)

 

 

(34.0)

 

 

(27.4)

 

 

(18.1)

 

 

(26.3)

 

 

(52.6)

 

 

 

(35.8)

 

Net Sales, excluding Private Placement

 

 

12.2 

 

 

0.7 

 

 

6.6 

 

 

17.3 

 

 

4.9 

 

 

(20.9)

 

 

 

(7.4)

 

Private Placement, Net Sales

 

 

3.8 

 

 

41.9 

 

 

11.9 

 

 

11.0 

 

 

4.8 

 

 

(9.7)

 

 

 

1.1 

 

Total Net Sales

 

 

16.0 

 

 

42.6 

 

 

18.5 

 

 

28.3 

 

 

9.7 

 

 

(30.6)

 

 

 

(6.3)

 

Deaths

 

 

(1.0)

 

 

(1.4)

 

 

(1.6)

 

 

(0.6)

 

 

(0.8)

 

 

(0.8)

 

 

 

(0.5)

 

Interest Credited

 

 

(115.4)

 

 

10.5 

 

 

(249.8)

 

 

(358.3)

 

 

(74.3)

 

 

148.4 

 

 

 

166.5 

 

Acquisitions (Dispositions)

 

 

— 

 

 

— 

 

 

11.2 

 

 

— 

 

 

— 

 

 

— 

 

 

 

— 

 

Fees

 

 

(8.8)

 

 

(9.2)

 

 

(7.5)

 

 

(6.8)

 

 

(5.9)

 

 

(5.9)

 

 

 

(4.6)

 

Cost of Insurance

 

 

(20.8)

 

 

(21.1)

 

 

(20.9)

 

 

(22.3)

 

 

(22.7)

 

 

(22.4)

 

 

 

(21.2)

 

Change in FUM

 

 

(130.0)

 

 

21.4 

 

 

(250.1)

 

 

(359.7)

 

 

(94.0)

 

 

88.7 

 

 

 

133.9 

 

Beginning Balance

 

 

2,696.3 

 

 

2,566.3 

 

 

2,587.7 

 

 

2,337.6 

 

 

1,977.9 

 

 

1,883.9 

 

 

 

1,972.6 

 

Ending Fund Balance

 

$

2,566.3 

 

$

2,587.7 

 

$

2,337.6 

 

$

1,977.9 

 

$

1,883.9 

 

$

1,972.6 

 

 

$

2,106.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Life Insurance In Force (1)

 

$

24,796.6 

 

$

24,845.0 

 

$

24,760.0 

 

$

24,934.5 

 

$

24,664.6 

 

$

24,165.6 

 

 

$

23,435.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




9



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Universal Life / Interest Sensitive Funds Under Management

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

Funds Under Management (FUM)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

267.9 

 

   

$

462.4 

   

$

587.5 

   

$

540.9 

   

$

417.1 

  

$

297.8 

Surrenders

 

 

(124.1)

 

 

 

(63.4)

 

 

(118.8)

 

 

(77.0)

 

 

(84.7)

 

 

(94.1)

Net Sales

 

 

143.8 

 

 

 

399.0 

 

 

468.7 

 

 

463.9 

 

 

332.4 

 

 

203.7 

Deaths

 

 

(21.0)

 

 

 

(20.1)

 

 

(28.4)

 

 

(22.9)

 

 

(20.5)

 

 

(22.3)

Interest Credited

 

 

71.9 

 

 

 

72.8 

 

 

97.7 

 

 

86.3 

 

 

79.6 

 

 

78.7 

Fees

 

 

(22.0)

 

 

 

(41.3)

 

 

(51.5)

 

 

(48.6)

 

 

(36.6)

 

 

(26.8)

Cost of Insurance

 

 

(302.2)

 

 

 

(258.8)

 

 

(354.4)

 

 

(258.9)

 

 

(184.9)

 

 

(109.9)

Change in FUM

 

 

(129.5)

 

 

 

151.6 

 

 

132.1 

 

 

219.8 

 

 

170.0 

 

 

123.4 

Beginning Balance

 

 

2,256.0 

 

 

 

2,123.9 

 

 

2,123.9 

 

 

1,904.1 

 

 

1,734.1 

 

 

1,610.7 

Ending Fund Balance

 

$

2,126.5 

 

 

$

2,275.5 

 

$

2,256.0 

 

$

2,123.9 

 

$

1,904.1 

 

$

1,734.1 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Life Insurance In Force

 

$

32,900.0 

 

 

$

32,610.0 

 

$

33,351.1 

 

$

27,358.2 

 

$

20,402.1 

 

$

16,303.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





10



The Phoenix Companies, Inc.

 

Universal Life / Interest Sensitive Funds Under Management

 

Third Quarter 2009 (unaudited)

 

($ in millions)

 

 

 

Quarters ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

2009

 

 

March

 

June

 

September

 

December

 

March

 

June

 

September

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Under Management (FUM)

 

 

                

    

 

                

    

 

                

    

 

                

    

 

                

    

 

                

    

 

 

                

 

Deposits

 

$

179.1 

 

$

149.7 

 

$

133.6 

 

$

125.1 

 

$

95.3 

 

$

84.5 

 

 

$

88.1 

 

Surrenders

 

 

(19.7)

 

 

(23.9)

 

 

(19.8)

 

 

(55.4)

 

 

(31.6)

 

 

(46.8)

 

 

 

(45.7)

 

Net Sales

 

 

159.4 

 

 

125.8 

 

 

113.8 

 

 

69.7 

 

 

63.7 

 

 

37.7 

 

 

 

42.4 

 

Deaths

 

 

(9.0)

 

 

(8.3)

 

 

(2.8)

 

 

(8.3)

 

 

(7.3)

 

 

(5.8)

 

 

 

(7.9)

 

Interest Credited

 

 

23.8 

 

 

24.3 

 

 

24.7 

 

 

24.9 

 

 

24.0 

 

 

23.4 

 

 

 

24.5 

 

Fees

 

 

(16.4)

 

 

(13.4)

 

 

(11.5)

 

 

(10.2)

 

 

(8.2)

 

 

(7.0)

 

 

 

(6.8)

 

Cost of Insurance

 

 

(81.7)

 

 

(84.8)

 

 

(92.3)

 

 

(95.6)

 

 

(98.1)

 

 

(100.2)

 

 

 

(103.9)

 

Change in FUM

 

 

76.1 

 

 

43.6 

 

 

31.9 

 

 

(19.5)

 

 

(25.9)

 

 

(51.9)

 

 

 

(51.7)

 

Beginning Balance

 

 

2,123.9 

 

 

2,200.0 

 

 

2,243.6 

 

 

2,275.5 

 

 

2,256.0 

 

 

2,230.1 

 

 

 

2,178.2 

 

Ending Fund Balance

 

$

2,200.0 

 

$

2,243.6 

 

$

2,275.5 

 

$

2,256.0 

 

$

2,230.1 

 

$

2,178.2 

 

 

$

2,126.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Life Insurance In Force

 

$

29,774.2 

 

$

31,298.0 

 

$

32,610.0 

 

$

33,351.1 

 

$

33,631.1 

 

$

33,325.0 

 

 

$

32,900.0 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




11



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Private Placement Sales

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

Life Insurance Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesaler Channel

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

Variable Universal Life

 

$

6.9 

 

 

$

19.0 

 

$

26.7 

 

$

21.9 

 

$

16.7 

 

$

16.1 

Universal Life/Interest Sensitive

  

 

20.2 

 

 

 

203.2 

 

 

229.9 

 

 

308.2 

 

 

221.9 

 

 

104.4 

Term Life

 

 

5.4 

 

 

 

15.7 

 

 

21.6 

 

 

22.2 

 

 

20.3 

 

 

16.4 

 Life Insurance Annualized Premium (1)

 

 

32.5 

 

 

 

237.9 

 

 

278.2 

 

 

352.3 

 

 

258.9 

 

 

136.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life

 

 

3.1 

 

 

 

5.2 

 

 

9.3 

 

 

8.0 

 

 

8.6 

 

 

6.4 

Universal Life/Interest Sensitive

 

 

18.5 

 

 

 

37.2 

 

 

54.2 

 

 

65.0 

 

 

61.8 

 

 

49.2 

Life Insurance Single Premium

 

 

21.6 

 

 

 

42.4 

 

 

63.5 

 

 

73.0 

 

 

70.4 

 

 

55.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life

 

 

10.0 

 

 

 

24.2 

 

 

36.0 

 

 

29.9 

 

 

25.3 

 

 

22.5 

Universal Life/Interest Sensitive

 

 

38.7 

 

 

 

240.4 

 

 

284.1 

 

 

373.2 

 

 

283.7 

 

 

153.6 

Term Life

 

 

5.4 

 

 

 

15.7 

 

 

21.6 

 

 

22.2 

 

 

20.3 

 

 

16.4 

Total Wholesaler Life Insurance Premium (2)

 

$

54.1 

 

 

$

280.3 

 

$

341.7 

 

$

425.3 

 

$

329.3 

 

$

192.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Life Insurance in Force

 

$

159,209.0 

 

 

$

165,118.0 

 

$

166,781.0 

 

$

156,889.0 

 

$

144,139.0 

 

$

134,780.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average face amount for life insurance sales

 

$

1.4 

 

 

$

1.0 

 

$

1.0 

 

$

1.3 

 

$

1.2 

 

$

1.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Placement Life and Annuity Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life (annualized and single)

 

$

24.4 

 

 

$

82.2 

 

$

104.5 

 

$

59.2 

 

$

33.5 

 

$

46.5 

Annuity

 

 

95.6 

 

 

 

174.5 

 

 

198.2 

 

 

399.7 

 

 

1,020.2 

 

 

773.8 

Total Private Placement Life and Annuity Deposits

 

$

120.0 

 

 

$

256.7 

 

$

302.7 

 

$

458.9 

 

$

1,053.7 

 

$

820.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Placement Funds Under Management (FUM)

 

$

4,059.4 

 

 

$

5,091.7 

 

$

4,073.9

 

$

5,039.2 

 

$

4,055.5 

 

$

2,776.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Annualized Premium represents first year premiums on an annual basis.

(2)

Total Premium represents Annualized and Single premiums.




12



The Phoenix Companies, Inc.

 

Life and Private Placement Sales

 

Third Quarter 2009 (unaudited)

 

($ Millions)

 

 

 

Quarters ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

2009

 

 

March

 

June

 

September

 

December

 

March

 

June

 

September

Life Insurance Sales

    

 

                

   

 

                

   

 

                

   

 

                

   

 

                

   

 

                

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesaler Channel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life

 

$

6.8 

 

$

5.5 

 

$

6.7 

 

$

7.7 

 

$

2.9 

 

$

3.6 

 

 

$

0.4 

 

Universal Life/Interest Sensitive

 

 

101.4 

 

 

58.3 

 

 

43.5 

 

 

26.7 

 

 

11.9 

 

 

4.2 

 

 

 

4.1 

 

Term Life

 

 

5.0 

 

 

5.1 

 

 

5.6 

 

 

5.9 

 

 

4.0 

 

 

1.4 

 

 

 

— 

 

Life Insurance Annualized
Premium (1)

 

 

113.2 

 

 

68.9 

 

 

55.8 

 

 

40.3 

 

 

18.8 

 

 

9.2 

 

 

 

4.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life

 

 

1.1 

 

 

1.4 

 

 

2.7 

 

 

4.1 

 

 

0.6 

 

 

2.4 

 

 

 

0.1 

 

Universal Life/Interest Sensitive

 

 

11.2 

 

 

11.5 

 

 

14.5 

 

 

17.0 

 

 

9.2 

 

 

5.7 

 

 

 

3.6 

 

Life Insurance Single Premium

 

 

12.3 

 

 

12.9 

 

 

17.2 

 

 

21.1 

 

 

9.8 

 

 

8.1 

 

 

 

3.7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life

 

 

7.9 

 

 

6.9 

 

 

9.4 

 

 

11.8 

 

 

3.5 

 

 

6.0 

 

 

 

0.5 

 

Universal Life/Interest Sensitive

 

 

112.6 

 

 

69.8 

 

 

58.0 

 

 

43.7 

 

 

21.1 

 

 

9.9 

 

 

 

7.7 

 

Term Life

 

 

5.0 

 

 

5.1 

 

 

5.6 

 

 

5.9 

 

 

4.0 

 

 

1.4 

 

 

 

— 

 

Total Wholesaler Life Insurance
Premium (2)

 

$

125.5 

 

$

81.8 

 

$

73.0 

 

$

61.4 

 

$

28.6 

 

$

17.3 

 

 

$

8.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Life Insurance in Force

 

$

 160,354.0 

 

$

 162,872.0 

 

$

 165,118.0 

 

$

 166,781.0 

 

$

 166,266.7 

 

$

 163,567.6 

 

 

$

 159,209 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average face amount for life
insurance sales

 

$

1.3 

 

$

1.1 

 

$

1.0 

 

$

0.9 

 

$

0.9 

 

$

0.9 

 

 

$

1.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Placement Life and
Annuity Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life
(annualized and single)

 

$

13.8 

 

$

56.2 

 

$

12.2 

 

$

22.3 

 

$

11.0 

 

$

2.5 

 

 

$

10.9 

 

Annuity

 

 

27.8 

 

 

52.6 

 

 

94.1 

 

 

23.7 

 

 

23.4 

 

 

8.1 

 

 

 

64.1 

 

Total Private Placement Life
and Annuity Deposits

 

$

41.6 

 

$

108.8 

 

$

106.3 

 

$

46.0 

 

$

34.4 

 

$

10.6 

 

 

$

75.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Placement Funds
Under Management (FUM)

 

$

5,016.0 

 

$

5,259.4 

 

$

5,091.7 

 

$

4,073.9 

 

$

4,009.4 

 

$

4,001.1 

 

 

$

4,059.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Annualized Premium represents first year premiums on an annual basis.

(2)

Total Premium represents Annualized and Single premiums.



13



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities Funds Under Management and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities Supplementary Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

Funds Under Management (FUM)

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits, excluding Private Placement

 

$

130.1 

 

 

$

505.0 

 

$

628.9 

 

$

630.6 

 

$

423.7 

 

$

339.7 

Surrenders, excluding Private Placement

 

 

(459.5)

 

 

 

(636.0)

 

 

(806.9)

 

 

(940.5)

 

 

(1,383.3)

 

 

(995.0)

Net Sales, excluding Private Placement

 

 

(329.4)

 

 

 

(131.0)

 

 

(178.0)

 

 

(309.9)

 

 

(959.6)

 

 

(655.3)

Net Sales, Private Placement

 

 

(165.4)

 

 

 

(70.5)

 

 

(386.6)

 

 

228.4 

 

 

807.4 

 

 

587.9 

Total Net Sales

 

 

(494.8)

 

 

 

(201.5)

 

 

(564.6)

 

 

(81.5)

 

 

(152.2)

 

 

(67.4)

Deaths

 

 

(37.7)

 

 

 

(61.0)

 

 

(75.4)

 

 

(77.3)

 

 

(87.0)

 

 

(80.2)

Interest Credited

 

 

710.3 

 

 

 

(485.6)

 

 

(1,622.9)

 

 

783.3 

 

 

949.6 

 

 

545.8 

Fees

 

 

(45.8)

 

 

 

(56.4)

 

 

(70.0)

 

 

(72.6)

 

 

(70.9)

 

 

(63.0)

Change in FUM

 

 

132.0 

 

 

 

(804.5)

 

 

(2,332.9)

 

 

551.9 

 

 

639.5 

 

 

335.2 

Beginning Balance

 

 

6,896.6 

 

 

 

9,229.5 

 

 

9,229.5 

 

 

8,677.6 

 

 

8,038.1 

 

 

7,702.9 

Ending Fund Balance

 

$

7,028.6 

 

 

$

8,425.0 

 

$

6,896.6 

 

$

9,229.5 

 

$

8,677.6 

 

$

8,038.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VA Funds in Guaranteed Interest Accounts (1)

 

$

528.9 

 

 

$

715.1 

 

$

664.9 

 

$

809.3 

 

$

1,030.8 

 

$

1,553.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Placements Funds (1)

 

$

3,110.5 

 

 

$

4,047.7 

 

$

3,161.1 

 

$

3,963.2 

 

$

3,302.8 

 

$

2,099.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Amounts are included in the Annuities Funds Under Management (FUM) table above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed Minimum Death Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Death Benefit in Excess of Fund Value

 

$

626.3 

 

 

$

634.6 

 

$

1,105.5 

 

$

202.4 

 

$

238.8 

 

$

335.5 

Death Benefit in Excess of Fund Value, Net of Reinsurance

 

 

360.0 

 

 

 

362.6 

 

 

709.6 

 

 

46.6 

 

 

51.4 

 

 

82.1 

Statutory Reserve, Net of Reinsurance

 

 

22.0 

 

 

 

20.6 

 

 

39.0 

 

 

12.9 

 

 

13.2 

 

 

13.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed Income Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

519.0 

 

 

$

570.1 

 

$

464.1 

 

$

716.8 

 

$

620.1 

 

$

465.8 

Statutory Reserve

 

 

13.4 

 

 

 

13.2 

 

 

34.7 

 

 

6.9 

 

 

4.4 

 

 

2.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed Accumulation Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

407.7 

 

 

$

404.4 

 

$

335.6 

 

$

389.8 

 

$

210.6 

 

$

72.6 

Statutory Reserve

 

 

5.5 

 

 

 

10.8 

 

 

4.3 

 

 

2.3 

 

 

0.8 

 

 

0.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed Withdrawal Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

574.3 

 

 

$

407.2 

 

$

413.2 

 

$

214.6 

 

$

30.1 

 

$

1.1 

Statutory Reserve

 

 

6.3 

 

 

 

3.4 

 

 

3.5 

 

 

0.7 

 

 

0.1 

 

 

— 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed Payout Annuity Floor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

5.5 

 

 

$

30.3 

 

$

22.7 

 

$

43.4 

 

$

49.8 

 

$

49.9 

Statutory Reserve

 

 

7.7 

 

 

 

6.2 

 

 

11.2 

 

 

2.2 

 

 

2.1 

 

 

1.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

2006 and 2005 face amounts updated to include the term rider face amounts for all variable universal life products.



14



The Phoenix Companies, Inc.

 

Annuities Funds Under Management and

 

Annuities Supplementary Information

 

Third Quarter 2009 (unaudited)

($ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

2009

 

 

March

 

June

 

September

 

December

 

March

 

June

 

September

Funds Under Management (FUM)

 

 

                

 

 

                

 

 

                

 

 

                

 

 

                

 

 

                

 

 

 

                

 

Deposits, excluding Private Placement

  

$

170.2 

    

$

177.7 

    

$

157.1 

    

$

123.9 

    

$

99.6 

    

$

17.9 

    

 

$

12.6 

 

Surrenders, excluding Private Placement

 

 

(253.3)

 

 

(190.4)

 

 

(192.3)

 

 

(170.9)

 

 

(174.6)

 

 

(147.8)

 

 

 

(137.1)

 

Net Sales, excluding Private Placement

 

 

(83.1)

 

 

(12.7)

 

 

(35.2)

 

 

(47.0)

 

 

(75.0)

 

 

(129.9)

 

 

 

(124.5)

 

Net Sales, Private Placement

 

 

(79.0)

 

 

(10.2)

 

 

18.7 

 

 

(316.1)

 

 

(137.7)

 

 

(54.6)

 

 

 

26.9 

 

Total Net Sales

 

 

(162.1)

 

 

(22.9)

 

 

(16.5)

 

 

(363.1)

 

 

(212.7)

 

 

(184.5)

 

 

 

(97.6)

 

Deaths

 

 

(23.0)

 

 

(17.5)

 

 

(20.5)

 

 

(14.4)

 

 

(16.7)

 

 

(15.1)

 

 

 

(5.9)

 

Interest Credited

 

 

(215.8)

 

 

214.6 

 

 

(484.4)

 

 

(1,137.3)

 

 

(95.8)

 

 

419.5 

 

 

 

386.6 

 

Fees

 

 

(18.6)

 

 

(20.0)

 

 

(17.8)

 

 

(13.6)

 

 

(14.0)

 

 

(17.7)

 

 

 

(14.1)

 

Change in FUM

 

 

(419.5)

 

 

154.2 

 

 

(539.2)

 

 

(1,528.4)

 

 

(339.2)

 

 

202.2 

 

 

 

269.0 

 

Beginning Balance

 

 

9,229.5 

 

 

8,810.0 

 

 

8,964.2 

 

 

8,425.0 

 

 

6,896.6 

 

 

6,557.4 

 

 

 

6,759.6 

 

Ending Fund Balance

 

$

8,810.0 

 

$

8,964.2 

 

$

8,425.0 

 

$

6,896.6 

 

$

6,557.4 

 

$

  6,759.6 

 

 

$

7,028.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VA Funds in Guaranteed Interest
Accounts (1)

 

$

794.8 

 

$

770.5 

 

$

715.1 

 

$

664.9 

 

$

608.0 

 

$

554.9 

 

 

$

528.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Placements Funds (1)

 

$

3,935.2 

 

$

4,131.5 

 

$

4,047.7 

 

$

3,161.1 

 

$

3,106.1 

 

$

3,085.6 

 

 

$

3,110.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Amounts are included in the Annuities Funds Under Management (FUM) table above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed
Minimum Death Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Death Benefit in Excess of Fund Value

 

$

336.3 

 

$

342.3 

 

$

634.6 

 

$

1,105.5 

 

$

1,251.9 

 

$

917.1 

 

 

$

626.3 

 

Death Benefit in Excess of Fund Value,
Net of Reinsurance

 

 

135.9 

 

 

146.1 

 

 

362.6 

 

 

709.6 

 

 

821.1 

 

 

572.4 

 

 

 

360.0 

 

Statutory Reserve, Net of Reinsurance

 

 

14.6 

 

 

14.8 

 

 

20.6 

 

 

39.0 

 

 

49.0 

 

 

32.4 

 

 

 

22.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed
Income Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

659.7 

 

$

648.8 

 

$

570.1 

 

$

464.1 

 

$

419.8 

 

$

468.6 

 

 

$

519.0 

 

Statutory Reserve

 

 

7.7 

 

 

8.5 

 

 

13.2 

 

 

34.7 

 

 

72.7 

 

 

27.9 

 

 

 

13.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed
Accumulation Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

389.4 

 

$

430.3 

 

$

404.4 

 

$

335.6 

 

$

311.9 

 

$

360.0 

 

 

$

407.7 

 

Statutory Reserve

 

 

2.8 

 

 

3.3 

 

 

10.8 

 

 

4.3 

 

 

4.6 

 

 

5.0 

 

 

 

5.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed
Withdrawal Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

282.9 

 

$

372.9 

 

$

407.2 

 

$

413.2 

 

$

436.0 

 

$

509.3 

 

 

$

574.3 

 

Statutory Reserve

 

 

1.2 

 

 

1.9 

 

 

3.4 

 

 

3.5 

 

 

4.3 

 

 

5.3 

 

 

 

6.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuity Guaranteed Payout
Annuity Floor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account Balance

 

$

37.6 

 

$

34.9 

 

$

30.3 

 

$

22.7 

 

$

18.9 

 

$

20.8 

 

 

$

5.5 

 

Statutory Reserve

 

 

3.8 

 

 

3.7 

 

 

6.2 

 

 

11.2 

 

 

13.1 

 

 

10.5 

 

 

 

7.7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





15



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Policy Acquisition Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

Deferred Policy Acquisition Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Universal Life

 

$

319.1 

 

 

$

361.3 

 

$

336.9 

 

$

367.2 

 

$

371.3 

 

$

353.0 

Universal Life

 

 

886.6 

 

 

 

957.5 

 

 

970.4 

 

 

796.7 

 

 

529.8 

 

 

354.7 

Variable Annuities

 

 

169.7 

 

 

 

287.0 

 

 

166.0 

 

 

282.6 

 

 

275.0 

 

 

281.3 

Fixed Annuities

 

 

4.8 

 

 

 

8.0 

 

 

6.5 

 

 

12.8 

 

 

20.3 

 

 

38.8 

Participating

 

 

478.9 

 

 

 

583.4 

 

 

478.6 

 

 

566.9 

 

 

559.0 

 

 

544.2 

Offset for Unrealized Investment (Gains) Losses

 

 

236.7 

 

 

 

263.3 

 

 

773.0 

 

 

63.7 

 

 

0.2 

 

 

(16.0)

Total

 

$

2,095.8 

 

 

$

2,460.5 

 

$

2,731.4 

 

$

2,089.9 

 

$

1,755.6 

 

$

1,556.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Policy Acquisition Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy acquisition costs deferred

 

$

63.8 

 

 

$

335.1 

 

$

341.7 

 

$

463.9 

 

$

329.2 

 

$

187.7 

Costs amortized to expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring costs

 

 

(162.5)

 

 

 

(177.1)

 

 

(435.3)

 

 

(192.8)

 

 

(149.2)

 

 

(114.5)

Realized investment gains or losses

 

 

4.5 

 

 

 

13.4 

 

 

25.8 

 

 

(0.2)

 

 

3.4 

 

 

(17.6)

Offsets to net unrealized investment gains or losses included in other comprehensive income

 

 

(536.2)

 

 

 

199.8 

 

 

709.3 

 

 

63.4 

 

 

16.2 

 

 

70.5 

Cumulative effect of adoption of new guidance

 

 

(4.6)

 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Other

 

 

(0.6)

 

 

 

(0.6)

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Change in deferred policy acquisition costs

 

 

(635.6)

 

 

 

370.6 

 

 

641.5 

 

 

334.3 

 

 

199.6 

 

 

126.1 

Deferred policy acquisition costs, beginning of period

 

 

2,731.4 

 

 

 

2,089.9 

 

 

2,089.9 

 

 

1,755.6 

 

 

1,556.0 

 

 

1,429.9 

Deferred policy acquisition costs, end of period

 

$

2,095.8 

 

 

$

2,460.5 

 

$

2,731.4 

 

$

2,089.9 

 

$

1,755.6 

 

$

1,556.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



16



The Phoenix Companies, Inc.

 

Deferred Policy Acquisition Costs

 

Third Quarter 2009 (unaudited)

 

($ Millions)

 

 

 

Quarters ended

 

 

 

2008

 

2009

 

  

March

 

June

 

September

 

December

 

March

 

June

 

September

Deferred Acquisition Costs:

 

 

                

    

 

                

    

 

                

    

 

                

    

 

                

    

 

                

    

 

 

                

 

Variable Universal Life

 

$

366.3 

 

$

362.0 

 

$

361.3 

 

$

336.9 

 

$

330.4 

 

$

327.6 

    

 

$

319.1 

 

Universal Life

 

 

889.6 

 

 

938.4 

 

 

957.5 

 

 

970.4 

 

 

949.6 

 

 

931.0 

 

 

 

886.6 

 

Variable Annuities

 

 

285.8 

 

 

290.6 

 

 

287.0 

 

 

166.0 

 

 

157.1 

 

 

169.0 

 

 

 

169.7 

 

Fixed Annuities

 

 

10.1 

 

 

9.0 

 

 

8.0 

 

 

6.5 

 

 

5.5 

 

 

5.2 

 

 

 

4.8 

 

Participating

 

 

576.7 

 

 

578.8 

 

 

583.4 

 

 

478.6 

 

 

481.5 

 

 

480.9 

 

 

 

478.9 

 

Offset for Unrealized Investment
Gains and Losses

 

 

107.4 

 

 

172.2 

 

 

263.3 

 

 

773.0 

 

 

757.4 

 

 

528.0 

 

 

 

236.7 

 

Total

 

$

2,235.9 

 

$

2,351.0 

 

$

2,460.5 

 

$

2,731.4 

 

$

2,681.5 

 

$

2,441.7 

 

 

$

2,095.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Policy Acquisition
Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy acquisition costs deferred

 

$

142.2 

 

 

105.9 

 

 

87.0 

 

 

6.6 

 

 

36.1 

 

 

18.2 

 

 

$

9.5 

 

Costs amortized to expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring costs

 

 

(46.0)

 

 

(59.0)

 

 

(72.1)

 

 

(258.2)

 

 

(66.2)

 

 

(33.1)

 

 

 

(63.2)

 

Realized investment gains
or losses

 

 

6.0 

 

 

3.4 

 

 

4.0 

 

 

12.4 

 

 

0.4 

 

 

5.2 

 

 

 

(1.1)

 

Offsets to net unrealized investment
gains or losses included in other
comprehensive income

 

 

43.8 

 

 

64.8 

 

 

91.2 

 

 

509.5 

 

 

(15.6)

 

 

(229.3)

 

 

 

(291.3)

 

Cumulative effect of adoption of new
guidance

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

(4.6)

 

 

— 

 

 

 

— 

 

Other

 

 

— 

 

 

— 

 

 

(0.6)

 

 

0.6 

 

 

— 

 

 

(0.8)

 

 

 

0.2

 

Change in deferred policy acquisition
costs

 

 

146.0 

 

 

115.1 

 

 

109.5 

 

 

270.9 

 

 

(49.9)

 

 

(239.8)

 

 

 

(345.9)

 

Deferred policy acquisition costs,
beginning of period

 

 

2,089.9 

 

 

2,235.9 

 

 

2,351.0 

 

 

2,460.5 

 

 

2,731.4 

 

 

2,681.5 

 

 

 

2,441.7 

 

Deferred policy acquisition costs,
end of period

 

$

2,235.9 

 

$

2,351.0 

 

$

2,460.5 

 

$

2,731.4 

 

$

2,681.5 

 

$

2,441.7 

 

 

$

2,095.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




17



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Income - GAAP Format (1)

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

513.7 

 

 

$

566.7 

 

$

765.9 

 

$

798.3 

 

$

839.7 

 

$

928.7 

Insurance, Investment Management and Product Fees

 

 

490.4 

 

 

 

461.6 

 

 

622.6 

 

 

516.4 

 

 

414.1 

 

 

341.2 

Net Investment Income

 

 

582.1 

 

 

 

712.2 

 

 

915.6 

 

 

1,058.8 

 

 

1,048.5 

 

 

1,098.6 

Net Realized Investment Gains (Losses):

 

 

— 

 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Total Other-Than-Temporary Impairment ("OTTI") Losses

 

 

(134.7)

 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Portion of OTTI Losses Recognized in Other Comprehensive Income

 

 

60.5 

 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Net OTTI Losses Recognized in Earnings

 

 

(74.2)

 

 

 

(105.7)

 

 

(245.0)

 

 

(51.9)

 

 

(8.9)

 

 

(35.3)

Net Realized Investment Gains (Losses), Excluding OTTI Losses

 

 

(4.0)

 

 

 

(26.2)

 

 

(50.8)

 

 

45.9 

 

 

84.1 

 

 

69.9 

Total Net Realized Investment Gains (Losses)

 

 

(78.2)

 

 

 

(131.9)

 

 

(295.8)

 

 

(6.0)

 

 

75.2 

 

 

34.6 

Total Revenues

 

 

1,508.0 

 

 

 

1,608.6 

 

 

2,008.3 

 

 

2,367.5 

 

 

2,377.5 

 

 

2,403.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Benefits and Increase in Policy Liabilities

 

 

973.8 

 

 

 

999.4 

 

 

1,370.9 

 

 

1,318.5 

 

 

1,341.1 

 

 

1,376.7 

Policyholder Dividends

 

 

148.3 

 

 

 

203.1 

 

 

207.5 

 

 

380.0 

 

 

399.1 

 

 

364.4 

Policy Acquisition Cost Amortization

 

 

157.9 

 

 

 

163.6 

 

 

409.0 

 

 

193.0 

 

 

145.8 

 

 

132.1 

Interest Expense on Indebtedness

 

 

25.1 

 

 

 

27.8 

 

 

36.7 

 

 

44.2 

 

 

49.2 

 

 

46.6 

Interest Expense on Non-recourse Collateralized Obligations

 

 

— 

 

 

 

10.7 

 

 

11.8 

 

 

15.4 

 

 

18.7 

 

 

29.4 

Goodwill Impairment

 

 

27.0 

 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

Other Operating Expenses

 

 

245.4 

 

 

 

207.3 

 

 

263.7 

 

 

277.9 

 

 

258.2 

 

 

300.0 

Total Expenses

 

 

1,577.5 

 

 

 

1,611.9 

 

 

2,299.6 

 

 

2,229.0 

 

 

2,212.1 

 

 

2,249.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations before Income Taxes

 

 

(69.5)

 

 

 

(3.3)

 

 

(291.3)

 

 

138.5 

 

 

165.4 

 

 

153.9 

Applicable Income Taxes (Benefit)

 

 

113.7 

 

 

 

4.2 

 

 

(116.9)

 

 

21.9 

 

 

51.6 

 

 

44.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

 

(183.2)

 

 

 

(7.5)

 

 

(174.4)

 

 

116.6 

 

 

113.8 

 

 

109.0 

Discontinued Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Discontinued Operations

 

 

(29.4)

 

 

 

(340.2)

 

 

(551.6)

 

 

1.0 

 

 

(18.5)

 

 

(0.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

(212.6)

 

 

$

(347.7)

 

$

(726.0)

 

$

117.6 

 

$

95.3 

 

$

108.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Certain reclassifications have been made to prior periods to conform with the current presentation.




18



The Phoenix Companies, Inc.

 

Consolidated Statement of Income - GAAP Format (1)

 

Third Quarter 2009 (unaudited)

 

($ Millions)

 

 

 

Quarters ended

 

 

 

2008

 

2009

 

 

March

 

June

 

September

 

December

 

March

 

June

 

September

Revenues

  

 

                

 

 

                

 

 

                

 

 

                

 

 

                

 

 

                

 

 

 

                

 

Premiums

 

$

180.2 

    

$

191.3 

    

$

195.2 

    

$

199.2 

    

$

172.2 

    

$

170.6 

   

 

$

171.0 

 

Insurance, Investment Management
and Product Fees

 

 

149.6 

 

 

154.2 

 

 

157.8 

 

 

161.0 

 

 

158.9 

 

 

160.3 

 

 

 

171.2 

 

Net Investment Income

 

 

248.2 

 

 

246.0 

 

 

218.0 

 

 

203.4 

 

 

185.6 

 

 

195.0 

 

 

 

201.4 

 

Net Realized Investment Gains
(Losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other-Than-Temporary
Impairment ("OTTI") Losses

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

(57.7)

 

 

(39.2)

 

 

 

(37.7)

 

Portion of OTTI Losses Recognized
in Other Comprehensive Income

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

19.4 

 

 

18.3 

 

 

 

22.8 

 

Net OTTI Losses Recognized in
Earnings

 

 

(40.4)

 

 

(26.5)

 

 

(38.8)

 

 

(139.3)

 

 

(38.3)

 

 

(20.9)

 

 

 

(14.9)

 

Net Realized Investment Gains
(Losses), Excluding OTTI Losses

 

 

(6.3)

 

 

1.0 

 

 

(20.9)

 

 

(24.6)

 

 

63.7 

 

 

(65.3)

 

 

 

(2.5)

 

Total Net Realized Investment Gains
(Losses)

 

 

(46.7)

 

 

(25.5)

 

 

(59.7)

 

 

(163.9)

 

 

25.4 

 

 

(86.2)

 

 

 

(17.4)

 

Total Revenues

 

 

531.3 

 

 

566.0 

 

 

511.3 

 

 

399.7 

 

 

542.1 

 

 

439.7 

 

 

 

526.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Benefits and Increase in
Policy Liabilities

 

 

335.8 

 

 

327.0 

 

 

336.6 

 

 

371.5 

 

 

318.8 

 

 

346.6 

 

 

 

308.4 

 

Policyholder Dividends

 

 

73.7 

 

 

86.0 

 

 

43.4 

 

 

4.4 

 

 

37.8 

 

 

46.6 

 

 

 

63.9 

 

Policy Acquisition Cost Amortization

 

 

40.0 

 

 

55.6 

 

 

68.0 

 

 

245.4 

 

 

65.7 

 

 

28.1 

 

 

 

64.1 

 

Interest Expense on Indebtedness

 

 

10.2 

 

 

8.8 

 

 

8.8 

 

 

8.9 

 

 

8.5 

 

 

8.3 

 

 

 

8.2 

 

Interest Expense on Non-recourse
Collateralized Obligations

 

 

3.2 

 

 

1.9 

 

 

5.6 

 

 

1.1 

 

 

— 

 

 

— 

 

 

 

— 

 

Goodwill Impairment

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

— 

 

 

 

27.0 

 

Other Operating Expenses

 

 

75.2 

 

 

72.1 

 

 

60.0 

 

 

56.6 

 

 

78.3 

 

 

75.9 

 

 

 

91.3 

 

Total Expenses

 

 

538.1 

 

 

551.4 

 

 

522.4 

 

 

687.9 

 

 

509.1 

 

 

505.5 

 

 

 

562.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing
Operations before Income
Taxes

 

 

(6.8)

 

 

14.6 

 

 

(11.1)

 

 

(288.2)

 

 

33.0 

 

 

(65.8)

 

 

 

(36.7)

 

Applicable Income Taxes (Benefit)

 

 

(2.1)

 

 

3.4 

 

 

2.9 

 

 

(121.1)

 

 

106.0 

 

 

19.1 

 

 

 

(11.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing
Operations

 

 

(4.7)

 

 

11.2 

 

 

(14.0)

 

 

(167.0)

 

 

(73.0)

 

 

(84.9)

 

 

 

(25.3)

 

Discontinued Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from
Discontinued Operations

 

 

(9.7)

 

 

(5.0)

 

 

(325.5)

 

 

(211.3)

 

 

(1.8)

 

 

(26.3)

 

 

 

(1.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

(14.4)

 

$

6.2 

 

$

(339.5)

 

$

(378.4)

 

$

(74.8)

 

$

(111.2)

 

 

$

(26.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Certain reclassifications have been made to prior periods to conform with the current presentation.



19



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheet - Preliminary

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions, except par value)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Debt Securities, at fair value

 

$

10,545.5 

 

 

$

10,657.3 

 

$

9,831.0 

 

$

11,970.0 

 

$

12,696.8 

 

$

13,404.6 

Available-for-Sale Equity Securities, at fair value

 

 

22.0 

 

 

 

155.0 

 

 

25.2 

 

 

191.8 

 

 

173.6 

 

 

169.6 

Policy Loans, at unpaid principal balances

 

 

2,422.0 

 

 

 

2,489.9 

 

 

2,535.7 

 

 

2,380.5 

 

 

2,322.0 

 

 

2,245.0 

Venture Capital Partnerships, at equity in net assets

 

 

186.5 

 

 

 

202.2 

 

 

200.8 

 

 

173.7 

 

 

116.8 

 

 

145.1 

Other Investments

 

 

556.2 

 

 

 

529.2 

 

 

616.9 

 

 

507.3 

 

 

433.3 

 

 

450.8 

Fair value option investments

 

 

67.4 

 

 

 

105.8 

 

 

84.1 

 

 

–– 

 

 

 

 

 

 

 

 

 

13,799.6 

 

 

 

14,139.4 

 

 

13,293.7 

 

 

15,223.3 

 

 

15,742.5 

 

 

16,415.1 

Available-for-Sale Debt and Equity Securities Pledged as Collateral, at fair value

 

 

–– 

 

 

 

163.4 

 

 

148.0 

 

 

219.1 

 

 

267.8 

 

 

304.4 

Total Investments

 

 

13,799.6 

 

 

 

14,302.8 

 

 

13,441.7 

 

 

15,442.4 

 

 

16,010.3 

 

 

16,719.5 

Cash and Cash Equivalents

 

 

127.0 

 

 

 

289.5 

 

 

381.1 

 

 

541.2 

 

 

371.1 

 

 

277.7 

Accrued Investment Income

 

 

205.4 

 

 

 

223.4 

 

 

203.4 

 

 

209.6 

 

 

215.8 

 

 

225.8 

Receivables

 

 

360.2 

 

 

 

158.8 

 

 

368.0 

 

 

290.0 

 

 

149.1 

 

 

98.3 

Deferred Policy Acquisition Costs

 

 

2,095.8 

 

 

 

2,460.5 

 

 

2,731.4 

 

 

2,089.9 

 

 

1,755.6 

 

 

1,556.0 

Deferred Income Taxes

 

 

195.6 

 

 

 

229.2 

 

 

456.7 

 

 

53.9 

 

 

53.2 

 

 

88.1 

Goodwill

 

 

3.1 

 

 

 

30.1 

 

 

30.1 

 

 

30.1 

 

 

16.7 

 

 

13.3 

Other Assets

 

 

195.2 

 

 

 

650.1 

 

 

226.2 

 

 

940.9 

 

 

995.8 

 

 

1,043.5 

Separate Account Assets

 

 

8,429.9 

 

 

 

9,830.8 

 

 

7,930.2 

 

 

10,820.3 

 

 

9,458.6 

 

 

7,722.2 

Total Assets

 

$

25,411.8 

 

 

$

28,175.2 

 

$

25,768.8 

 

$

30,418.3 

 

$

29,026.2 

 

$

27,744.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Liabilities and Accruals

 

$

13,409.6 

 

 

$

13,827.5 

 

$

14,008.8 

 

$

14,002.4 

 

$

13,525.7 

 

$

13,246.2 

Policyholder Deposit Funds

 

 

1,379.5 

 

 

 

1,576.2 

 

 

1,616.6 

 

 

1,808.9 

 

 

2,228.4 

 

 

3,060.7 

Indebtedness

 

 

433.6 

 

 

 

467.0 

 

 

458.0 

 

 

627.7 

 

 

628.2 

 

 

659.9 

Other Liabilities

 

 

574.3 

 

 

 

699.0 

 

 

645.0 

 

 

562.1 

 

 

609.8 

 

 

658.4 

Non-recourse Collateralized Obligations

 

 

–– 

 

 

 

247.8 

 

 

245.2 

 

 

317.9 

 

 

344.0 

 

 

389.9 

Separate Account Liabilities

 

 

8,429.9 

 

 

 

9,830.8 

 

 

7,930.2 

 

 

10,820.3 

 

 

9,458.6 

 

 

7,722.2 

Total Liabilities

 

 

24,226.9 

 

 

 

26,648.3 

 

 

24,903.8 

 

 

28,139.3 

 

 

26,794.7 

 

 

25,737.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $.01 par value, 1.0 billion shares authorized; 115,624,278 shares outstanding
(September 30, 2009)

 

 

1.3 

 

 

 

1.3 

 

 

1.3 

 

 

1.3 

 

 

1.3 

 

 

1.1 

Additional paid-in capital

 

 

2,627.2 

 

 

 

2,624.3 

 

 

2,626.4 

 

 

2,616.1 

 

 

2,600.3 

 

 

2,437.6 

Accumulated Deficit

 

 

(1,040.3)

 

 

 

(390.2)

 

 

(839.5)

 

 

(20.7)

 

 

(115.9)

 

 

(193.1)

Treasury stock, at cost: 11,377,521 shares
(September 30, 2009)

 

 

(179.5)

 

 

 

(179.5)

 

 

(179.5)

 

 

(179.5)

 

 

(179.5)

 

 

(179.5)

Accumulated Other Comprehensive Loss

 

 

(223.8)

 

 

 

(529.0)

 

 

(743.7)

 

 

(138.2)

 

 

(74.7)

 

 

(59.0)

Total Stockholders' Equity

 

 

1,184.9 

 

 

 

1,526.9 

 

 

865.0 

 

 

2,279.0 

 

 

2,231.5 

 

 

2,007.1 

Total Liabilities, Minority Interest and Stockholders' Equity

 

$

25,411.8 

 

 

$

28,175.2 

 

$

25,768.8 

 

$

30,418.3 

 

$

29,026.2 

 

$

27,744.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




20



The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Account Investment Portfolio Summary (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt Securities

 

Public Debt Securities

 

Private Debt Securities

 

9/30/2009

 

12/31/08

 

9/30/2009

 

12/31/08

 

9/30/2009

 

12/31/08

Debt Securities by Credit Quality (Carrying Value)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A

$

6,113.2 

 

$

6,124.7 

 

$

4,801.7 

 

$

4,801.8 

 

$

1,311.5 

 

$

1,322.9 

BBB

 

3,229.2 

 

 

2,901.2 

 

 

1,917.2 

 

 

1,584.7 

 

 

1,312.0 

 

 

1,316.5 

Total Investment Grade

 

9,342.4 

 

 

9,025.9 

 

 

6,718.9 

 

 

6,386.5 

 

 

2,623.5 

 

 

2,639.4 

BB

 

621.6 

 

 

475.3 

 

 

364.2 

 

 

347.3 

 

 

257.4 

 

 

128.0 

B

 

279.7 

 

 

212.4 

 

 

179.3 

 

 

112.6 

 

 

100.4 

 

 

99.8 

CCC and Lower

 

209.4 

 

 

103.7 

 

 

164.5 

 

 

70.4 

 

 

44.9 

 

 

33.3 

In or Near Default

 

92.4 

 

 

13.7 

 

 

53.0 

 

 

3.8 

 

 

39.4 

 

 

9.9 

Total Debt Securities

$

10,545.5 

 

$

9,831.0 

 

$

7,479.9 

 

$

6,920.6 

 

$

3,065.6 

 

$

2,910.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Below Investment Grade

 

11.4%

 

 

8.2%

 

 

10.2%

 

 

7.7%

 

 

14.4%

 

 

9.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains and Losses on Debt and Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of 9/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

Outside Closed Block

 

Closed Block

 

Gains

 

Losses

 

Gains

 

Losses

 

Gains

 

Losses

Total Debt Securities

$

373.7 

 

$

(777.3)

 

$

101.1 

 

$

(442.6)

 

$

272.6 

 

$

(334.7)

Equity Securities

 

1.1 

 

 

(0.2)

 

 

1.1 

 

 

(0.1)

 

 

–– 

 

 

(0.1)

Total Unrealized Gains (Losses)

 

374.8 

 

 

(777.5)

 

 

102.2 

 

 

(442.7)

 

 

272.6 

 

 

(334.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applicable PDO

 

272.6 

 

 

(284.5)

 

 

–– 

 

 

–– 

 

 

272.6 

 

 

(284.5)

Applicable DAC (Credit)

 

20.1 

 

 

(256.8)

 

 

20.1 

 

 

(233.7)

 

 

–– 

 

 

(23.1)

Applicable Deferred Income Tax (Benefit)

 

28.7 

 

 

(82.7)

 

 

28.7 

 

 

(73.2)

 

 

–– 

 

 

(9.5)

Total Offsets to Net Unrealized Gains (Losses)

 

321.4 

 

 

(624.0)

 

 

48.8 

 

 

(306.9)

 

 

272.6 

 

 

(317.1)

Net Unrealized Gains (Losses)

$

53.4 

 

$

(153.5)

 

$

53.4 

 

$

(135.8)

 

$

0.0 

 

$

(17.7)

Net Unrealized Losses

$

(100.1)

 

 

 

 

$

(82.4)

 

 

 

 

$

(17.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Excludes debt and equity securities pledged as collateral.



21



The Phoenix Companies, Inc.

 

 

General Account GAAP Net Investment Income Yields (1)

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

 

2009

 

 

2008

 

 2008

 

2007

 

2006

 

2005

GAAP Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities

 

$

495.8 

 

 

$

537.2 

 

$

706.6 

 

$

774.4 

 

$

800.7 

 

$

804.6 

Equity Securities

 

 

0.4 

 

 

 

3.4 

 

 

4.3 

 

 

8.2 

 

 

7.0 

 

 

7.5 

Mortgages

 

 

0.5 

 

 

 

0.8 

 

 

1.0 

 

 

1.7 

 

 

6.2 

 

 

20.2 

Policy Loans

 

 

139.9 

 

 

 

138.2 

 

 

187.0 

 

 

179.5 

 

 

169.3 

 

 

165.8 

Venture Capital

 

 

(28.5)

 

 

 

6.2 

 

 

(4.7)

 

 

27.0 

 

 

3.3 

 

 

23.8 

Cash & Cash Equivalents

 

 

0.1 

 

 

 

7.1 

 

 

7.5 

 

 

18.8 

 

 

16.3 

 

 

7.6 

Other Income

 

 

2.4 

 

 

 

2.3 

 

 

3.8 

 

 

8.3 

 

 

–– 

 

 

–– 

Fair value option investments

 

 

0.9 

 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

Other Investments (2)

 

 

(22.8)

 

 

 

19.2 

 

 

13.4 

 

 

43.9 

 

 

40.0 

 

 

47.8 

Total Cash and Invested Assets

 

 

588.7 

 

 

 

714.4 

 

 

918.9 

 

 

1,061.8 

 

 

1,042.8 

 

 

1,077.3 

Discontinued Operations

 

 

0.7 

 

 

 

2.4 

 

 

3.0 

 

 

9.1 

 

 

8.1 

 

 

6.5 

Investment Expenses

 

 

5.9 

 

 

 

6.9 

 

 

8.2 

 

 

9.6 

 

 

5.3 

 

 

4.4 

Total Net Investment Income

 

$

582.1 

 

 

$

705.1 

 

$

907.7 

 

$

1,043.1 

 

$

1,029.4 

 

$

1,066.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yields

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities

 

 

6.6%

 

 

 

6.7%

 

 

7.1%

 

 

6.6%

 

 

6.5%

 

 

6.2%

Equity Securities

 

 

2.3%

 

 

 

2.6%

 

 

4.6%

 

 

4.1%

 

 

3.7%

 

 

3.0%

Mortgages

 

 

7.2%

 

 

 

8.8%

 

 

8.7%

 

 

11.0%

 

 

8.1%

 

 

15.3%

Policy Loans

 

 

7.6%

 

 

 

7.7%

 

 

7.7%

 

 

7.9%

 

 

7.6%

 

 

7.7%

Venture Capital

 

 

-18.8%

 

 

 

4.1%

 

 

-2.3%

 

 

17.3%

 

 

2.7%

 

 

12.8%

Cash & Cash Equivalents

 

 

0.1%

 

 

 

2.5%

 

 

2.2%

 

 

4.1%

 

 

4.7%

 

 

5.2%

Other Investments (2)

 

 

-5.4%

 

 

 

5.5%

 

 

2.4%

 

 

11.6%

 

 

13.6%

 

 

16.4%

Total Cash and Invested Assets

 

 

5.9%

 

 

 

6.7%

 

 

6.8%

 

 

7.0%

 

 

6.7%

 

 

6.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Expenses and Discontinued Operations

 

 

0.1%

 

 

 

0.1%

 

 

0.1%

 

 

0.1%

 

 

0.1%

 

 

0.1%

Total Net Investment Income yields

 

 

5.8%

 

 

 

6.6%

 

 

6.7%

 

 

6.9%

 

 

6.6%

 

 

6.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Excludes debt and equity securities pledged as collateral.

(2)

Includes real estate, affiliates and other invested assets.





22



The Phoenix Companies, Inc.

 

General Account GAAP Net Investment Income Yields (1)

 

Third Quarter 2009 (unaudited)

 

($ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

2009

 

 

 

March

 

June

 

September

 

December

 

March

 

June

 

 

September

 

GAAP Net Investment Income

 

 

 

 

 

 

 

 

                  

 

 

                  

 

 

                 

 

 

 

 

 

 

                   

 

Debt Securities

 

$

183.3 

 

$

178.0 

 

$

175.9 

 

$

169.4 

 

$

176.3 

 

$

164.7 

 

 

$

154.7 

 

Equity Securities

 

 

1.0 

 

 

1.2 

 

 

1.2 

 

 

0.9 

 

 

 

 

 

0.3 

 

 

 

0.1 

 

Mortgages

 

 

0.2 

 

 

0.4 

 

 

0.2 

 

 

0.2 

 

 

0.2 

 

 

0.2 

 

 

 

0.1 

 

Policy Loans

 

 

45.0 

 

 

45.8 

 

 

47.4 

 

 

48.8 

 

 

47.4 

 

 

50.5 

 

 

 

42.0 

 

Venture Capital

 

 

5.8 

 

 

8.8 

 

 

(8.4)

 

 

(10.9)

 

 

(20.5)

 

 

(10.0)

 

 

 

2.0 

 

Cash & Cash Equivalents

 

 

3.6 

 

 

1.8 

 

 

1.7 

 

 

0.4 

 

 

0.1 

 

 

–– 

 

 

 

–– 

 

Other Income

 

 

1.9 

 

 

0.3 

 

 

0.1 

 

 

1.5 

 

 

1.8 

 

 

0.2 

 

 

 

0.4 

 

Fair value option investments

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

(1.5)

 

 

1.0 

 

 

 

1.4 

 

Other Investments (2)

 

 

7.0 

 

 

11.0 

 

 

1.2 

 

 

(5.8)

 

 

(15.6)

 

 

(9.6)

 

 

 

2.4 

 

Total Cash and Invested Assets

 

 

247.8 

 

 

247.3 

 

 

219.3 

 

 

204.5 

 

 

188.2 

 

 

197.3 

 

 

 

203.1 

 

Discontinued Operations

 

 

1.0 

 

 

0.8 

 

 

0.6 

 

 

0.6 

 

 

0.2 

 

 

0.2 

 

 

 

0.3 

 

Investment Expenses

 

 

1.8 

 

 

2.5 

 

 

2.6 

 

 

1.3 

 

 

2.4 

 

 

2.1 

 

 

 

1.4 

 

Total Net Investment Income

 

$

245.0 

 

$

244.0 

 

$

216.1 

 

$

202.6 

 

$

185.6 

 

$

195.0 

 

 

$

201.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yields

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities

 

 

6.4%

 

 

6.4%

 

 

6.6%

 

 

6.8%

 

 

7.4%

 

 

6.8%

 

 

 

6.2%

 

Equity Securities

 

 

1.9%

 

 

2.4%

 

 

2.7%

 

 

3.8%

 

 

0.0%

 

 

5.0%

 

 

 

1.7%

 

Mortgages

 

 

5.4%

 

 

12.3%

 

 

6.6%

 

 

6.9%

 

 

7.5%

 

 

8.2%

 

 

 

4.2%

 

Policy Loans

 

 

7.8%

 

 

7.8%

 

 

7.9%

 

 

8.1%

 

 

7.7%

 

 

8.0%

 

 

 

6.9%

 

Venture Capital

 

 

13.4%

 

 

19.1%

 

 

-15.1%

 

 

-19.7%

 

 

-35.2%

 

 

-19.7%

 

 

 

4.5%

 

Cash & Cash Equivalents

 

 

3.1%

 

 

1.8%

 

 

1.8%

 

 

0.5%

 

 

0.2%

 

 

0.0%

 

 

 

0.0%

 

Other Investments (2)

 

 

7.0%

 

 

10.9%

 

 

1.0%

 

 

-4.1%

 

 

-9.8%

 

 

-6.5%

 

 

 

1.8%

 

Total Cash and Invested Assets

 

 

6.6%

 

 

6.7%

 

 

6.1%

 

 

6.0%

 

 

5.7%

 

 

6.0%

 

 

 

6.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Expenses and
Discontinued Operations

 

 

0.1%

 

 

0.1%

 

 

0.1%

 

 

0.1%

 

 

0.1%

 

 

0.1%

 

 

 

0.1%

 

Total Net Investment Income yields

 

 

6.5%

 

 

6.5%

 

 

5.9%

 

 

5.9%

 

 

5.6%

 

 

5.9%

 

 

 

6.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Excludes debt and equity securities pledged as collateral.

(2)

Includes real estate, affiliates and other invested assets.




23


 

The Phoenix Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Account Realized Investment Gains and Losses

 

 

Third Quarter 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD September

 

December 31,

 

 

2009

 

 

2008

 

2008

 

2007

 

2006

 

2005

Realized Investment Gains and Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Security

 

$

(60.9)

 

 

$

(94.6)

 

$

(224.0)

 

$

(46.7)

 

$

(7.9)

 

$

(31.2)

Equity Security

 

 

(3.5)

 

 

 

(1.6)

 

 

(2.7)

 

 

(0.5)

 

 

 

 

 

(2.1)

Mortgage Loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.8)

Debt and Equity Securities Pledged as Collateral

 

 

 

 

 

 

(0.7)

 

 

(2.3)

 

 

(0.8)

 

 

(1.0)

 

 

(1.2)

Other Invested Asset

 

 

(9.8)

 

 

 

(8.8)

 

 

(16.0)

 

 

(3.9)

 

 

 

 

 

 

Total Impairment Losses

 

 

(74.2)

 

 

 

(105.7)

 

 

(245.0)

 

 

(51.9)

 

 

(8.9)

 

 

(35.3)

Debt Security Net Transaction

 

 

(40.3)

 

 

 

(10.8)

 

 

(9.8)

 

 

11.6 

 

 

42.0 

 

 

(18.0)

Equity Security Net Transaction

 

 

2.2 

 

 

 

(0.4)

 

 

(29.5)

 

 

9.5 

 

 

21.9 

 

 

2.9 

Venture Capital Net Investment

 

 

(1.3)

 

 

 

–– 

 

 

(3.0)

 

 

–– 

 

 

2.4 

 

 

(13.9)

Mortgage Loan Net Transaction

 

 

(0.1)

 

 

 

–– 

 

 

(0.1)

 

 

1.4 

 

 

3.2 

 

 

–– 

Affiliate Equity Security Transaction

 

 

 

 

 

 

 

 

 

 

 

 

13.7 

 

 

10.4 

 

 

3.7 

Real Estate Net Transaction

 

 

–– 

 

 

 

–– 

 

 

2.4 

 

 

1.4 

 

 

–– 

 

 

(0.6)

Settlement of HRH Stock Purchase Contracts

 

 

–– 

 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

86.3 

Other Invested Asset Net Transactions

 

 

 

 

 

 

(0.3)

 

 

(0.9)

 

 

3.7 

 

 

4.2 

 

 

7.2 

Debt and Equity Securities Pledged as Collateral

 

 

 

 

 

 

1.5 

 

 

2.2 

 

 

1.8 

 

 

 

 

 

2.5 

CDO Deconsolidation

 

 

57.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Transactions

 

 

17.5 

 

 

 

(10.0)

 

 

(38.7)

 

 

43.1 

 

 

84.1 

 

 

70.1 

Realized Gains (Losses) on Fair Value Option Securities

 

 

3.3 

 

 

 

(8.0)

 

 

(18.4)

 

 

3.8 

 

 

1.4 

 

 

–– 

Realized Losses on Derivative Assets and Liabilities

 

 

(24.8)

 

 

 

(8.2)

 

 

6.3 

 

 

(1.0)

 

 

(0.1)

 

 

(0.2)

Net Realized Investment Gains (Losses)

 

 

(78.2)

 

 

 

(131.9)

 

 

(295.8)

 

 

(6.0)

 

 

76.5 

 

 

34.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closed Block Applicable PDO (Reduction)

 

 

(37.2)

 

 

 

(50.6)

 

 

(120.2)

 

 

4.4 

 

 

46.0 

 

 

(12.4)

Applicable Deferred Acquisition Costs (Credit)

 

 

(4.5)

 

 

 

(13.5)

 

 

(25.7)

 

 

0.2 

 

 

(3.5)

 

 

17.6 

Applicable Deferred Income Tax (Credit)

 

 

7.9 

 

 

 

(23.2)

 

 

(50.2)

 

 

(5.6)

 

 

11.8 

 

 

13.0 

Net Realized Investment Gains
(Losses) Included in Net Income (Loss)

 

$

(44.4)

 

 

$

(44.6)

 

$

(99.7)

 

$

(5.0)

 

$

22.2 

 

$

16.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




24



The Phoenix Companies, Inc.

 

General Account Realized Investment Gains and Losses

 

Third Quarter 2009 (unaudited)

 

($ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

2009

 

 

 

March

 

June

 

September

 

December

 

March

 

June

 

 

September

 

Realized Investment Gains and Losses

 

 

 

 

 

 

 

 

                  

 

 

                  

 

 

                 

 

 

 

 

 

 

                   

 

Debt Security

 

$

(32.6)

 

$

(24.9)

 

$

(37.1)

 

$

(129.4)

 

$

(31.4)

 

$

(19.1)

 

 

$

(10.3)

 

Equity Security

 

 

(0.5)

 

 

(0.1)

 

 

(1.0)

 

 

(1.1)

 

 

 

 

 

 

 

 

 

(3.5)

 

Debt and Equity Securities Pledged
as Collateral

 

 

–– 

 

 

–– 

 

 

(0.7)

 

 

(1.6)

 

 

–– 

 

 

–– 

 

 

 

–– 

 

Other Invested Asset

 

 

(7.3)

 

 

(1.5)

 

 

 

 

 

(7.2)

 

 

(6.9)

 

 

(1.8)

 

 

 

(1.1)

 

Total Impairment Losses

 

 

(40.4)

 

 

(26.5)

 

 

(38.8)

 

 

(139.3)

 

 

(38.3)

 

 

(20.9)

 

 

 

(14.9)

 

Debt Security Net Transactions

 

 

(2.8)

 

 

–– 

 

 

(8.0)

 

 

1.0 

 

 

0.6 

 

 

(32.8)

 

 

 

(8.2)

 

Equity Security Net Transactions

 

 

(0.2)

 

 

2.3 

 

 

(2.5)

 

 

(29.1)

 

 

2.2 

 

 

 

 

 

 

–– 

 

Venture Capital Net Investment

 

 

–– 

 

 

–– 

 

 

–– 

 

 

(3.0)

 

 

0.4 

 

 

(1.4)

 

 

 

(0.3)

 

Mortgage Loan Net Transactions

 

 

(0.1)

 

 

–– 

 

 

–– 

 

 

–– 

 

 

(0.1)

 

 

–– 

 

 

 

–– 

 

Affiliate Equity Security Transactions

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

 

–– 

 

Real Estate Net Transactions

 

 

–– 

 

 

–– 

 

 

–– 

 

 

2.4 

 

 

–– 

 

 

–– 

 

 

 

–– 

 

Other Invested Asset Net Transactions

 

 

0.6 

 

 

(0.2)

 

 

(0.6)

 

 

(0.7)

 

 

(0.2)

 

 

0.4 

 

 

 

(0.2)

 

Debt and Equity Securities Pledged
as Collateral

 

 

0.8 

 

 

0.6 

 

 

0.1 

 

 

0.7 

 

 

–– 

 

 

–– 

 

 

 

–– 

 

CDO Deconsolidation

 

 

–– 

 

 

–– 

 

 

–– 

 

 

–– 

 

 

57.0 

 

 

–– 

 

 

 

–– 

 

Total Net Transactions

 

 

(1.7)

 

 

2.7 

 

 

(11.0)

 

 

(28.7)

 

 

59.9 

 

 

(33.8)

 

 

 

(8.7)

 

Realized Gains (Losses) on Fair Value
Option Securities

 

 

(3.6)

 

 

0.2 

 

 

(4.6)

 

 

(10.4)

 

 

(2.3)

 

 

2.9 

 

 

 

2.7 

 

Realized Losses on Derivative Assets
and Liabilities

 

 

(1.0)

 

 

(1.9)

 

 

(5.3)

 

 

14.5 

 

 

6.1 

 

 

(34.4)

 

 

 

3.5 

 

Net Realized Investment Gains (Losses)

 

 

(46.7)

 

 

(25.5)

 

 

(59.7)

 

 

(163.9)

 

 

25.4 

 

 

(86.2)

 

 

 

(17.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closed Block Applicable PDO (Reduction)

 

 

(15.5)

 

 

(9.5)

 

 

(25.6)

 

 

(69.6)

 

 

(12.5)

 

 

7.0 

 

 

 

(9.4)

 

Applicable Deferred Acquisition Costs (Credit)

 

 

(6.0)

 

 

(3.6)

 

 

(3.9)

 

 

(12.2)

 

 

(0.4)

 

 

(27.4)

 

 

 

1.0 

 

Applicable Deferred Income Tax (Credit)

 

 

(9.1)

 

 

(4.6)

 

 

(10.3)

 

 

(26.2)

 

 

(5.0)

 

 

1.2 

 

 

 

11.7 

 

Net Realized Investment Gains (Losses)
Included in Net Income (Loss)

 

$

(16.1)

 

$

(7.8)

 

$

(19.9)

 

$

(55.9)

 

$

43.3 

 

$

(67.0)

 

 

$

(20.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





25