0001129633-15-000024.txt : 20151110 0001129633-15-000024.hdr.sgml : 20151110 20151109172435 ACCESSION NUMBER: 0001129633-15-000024 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20151109 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20151109 DATE AS OF CHANGE: 20151109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOENIX COMPANIES INC/DE CENTRAL INDEX KEY: 0001129633 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 060493340 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16517 FILM NUMBER: 151216785 BUSINESS ADDRESS: STREET 1: ONE AMERICAN ROW STREET 2: PO BOX 5056 CITY: HARTFORD STATE: CT ZIP: 061025056 BUSINESS PHONE: 8604035000 MAIL ADDRESS: STREET 1: ONE AMERICAN ROW STREET 2: PO BOX 5056 CITY: HARTFORD STATE: CT ZIP: 061025056 8-K 1 form8-k09302015.htm 8-K 8-K
 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
———————
FORM 8-K
———————
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 9, 2015

The Phoenix Companies, Inc.
(Exact name of registrant as specified in its charter)

Delaware
001-16517
06-1599088
(State or other jurisdiction
(Commission File Number)
(IRS Employer
of incorporation)
 
Identification No.)


One American Row, Hartford, CT
06102-5056
(Address of Principal Executive Offices)
(Zip Code)
 
 
Registrant’s telephone number, including area code:
(860) 403-5000

NOT APPLICABLE
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 




Item 2.02 Results of Operations and Financial Condition.

On November 9, 2015, The Phoenix Companies, Inc. made available on its website its Financial Supplement for the quarter ended September 30, 2015. The Financial Supplement is furnished as Exhibit 99.1 hereto.
Item 9.01 Financial Statements and Exhibits.

(a)    Not applicable

(b)    Not applicable

(c)    Not applicable

(d)    Exhibits

The following exhibit is furnished herewith:
99.1
The Phoenix Companies, Inc. Financial Supplement for quarter ended September 30, 2015.


2



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
THE PHOENIX COMPANIES, INC.
 
 
 
Date: November 9, 2015
By:
/s/ Ernest M. McNeill, Jr.
 
 
Name:  Ernest M. McNeill, Jr.
 
 
Title:  Senior Vice President and Chief Accounting Officer





3
 EX-99.1 2 financialsupplement-201593.htm EXHIBIT 99.1 Exhibit


EXHIBIT 99.1








Financial Supplement
The Phoenix Companies, Inc.



September 30, 2015




The Phoenix Companies, Inc.
 
 
 
 
Financial Supplement
 
 
 
 
 
 
 
 
 
Wall Street Coverage
 
 
 
 
Firm
 
Analyst
 
For More Information
JP Morgan
 
Jimmy Bhullar
 
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:
 
 
 
 
The Phoenix Companies, Inc.
Transfer Agent and Registrar
 
 
 
Investor Relations
For information or assistance regarding your account, please contact our transfer agent and registrar:
 
 
 
One American Row
The Phoenix Companies, Inc. C/O Computershare
 
 
 
P.O. Box 5056, Hartford, CT 06102-5056
P.O. Box 30170, College Station, TX 77842-3170
 
 
 
Phone: 1-860-403-7100
 
 
 
 
Fax: 1-860-403-7880
 
 
 
 
e-mail: pnx.ir@phoenixwm.com
Shareholder Information
 
 
 
 
Security Listings
 
 
 
 
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."
 
 
 
 
 
 
 
 
 
For more information on our products and services, call your Phoenix representative or visit our Web site at Phoenixwm.com.
 
 
 
 
 
In addition to financial measures presented in accordance with Generally Accepted Accounting Principles (“GAAP”), we use non-GAAP financial measures such as stockholder’s equity, excluding other accumulated OCI, and book value per diluted share, excluding other accumulated OCI, both of which eliminate the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Stockholder’s equity and book value per diluted share are the most directly comparable GAAP measures. A reconciliation of stockholder’s equity to stockholder’s equity, excluding other accumulated OCI, and book value per diluted share to book value per diluted share, excluding other accumulated OCI, for the periods presented herein is set forth on page 1. Therefore, investors should evaluate both GAAP and non-GAAP financial measures when reviewing our performance. Investors should note that our calculation of these measures may differ from similar measures used by other companies. Management believes that these measures provide investors with additional insight into the underlying trends in our operations.




The Phoenix Companies, Inc.
Financial Supplement
September 2015 (unaudited)

Table of Contents


Financial Highlights
1
Consolidated Interim Unaudited Statements of Operations
2
Consolidated Interim Unaudited Statements of Operations excluding Closed Block
4
Consolidated Balance Sheets
6
Closed Block Assets and Liabilities
7
Variable Universal Life Funds on Deposit
8
Universal Life Funds on Deposit
10
Life Sales
12
Total Annuity Funds on Deposit
14
Fixed Indexed Annuity Funds on Deposit
16
Deferred Policy Acquisition Costs
18
General Account Investment Portfolio Summary
19
General Account GAAP Net Investment Income Yields
20
Net Realized Gains (Losses)
21





The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
Financial Highlights
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Period Ended:
 
September 30,
 
December 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet Information
 
 
 
 
 
 
 
 
 
 
General account invested assets
 
$
16,604.0

 
$
16,750.1

 
$
16,083.1

 
$
16,228.7

 
$
15,294.7

Separate account assets
 
2,533.2

 
3,020.7

 
3,402.3

 
3,316.5

 
3,816.9

Total assets
 
21,288.4

 
21,745.9

 
21,641.1

 
21,634.9

 
21,491.9

Indebtedness
 
378.9

 
378.9

 
378.8

 
378.8

 
426.9

Total stockholders' equity attributable to The Phoenix Companies, Inc.
 
213.2

 
326.6

 
589.5

 
504.7

 
688.6

Accumulated OCI
 
(235.5
)
 
(234.4
)
 
(185.0
)
 
(243.8
)
 
(226.4
)
Total stockholders' equity, excluding other accumulated OCI
 
$
448.7

 
$
561.0

 
$
774.5

 
$
748.5

 
$
915.4

Debt to total capitalization [1]
 
45.8
%
 
40.3
%
 
32.9
%
 
33.6
%
 
31.8
%
Book value per share
 
$
37.07

 
$
56.82

 
$
102.27

 
$
87.47

 
$
118.42

Per share impact of other accumulated OCI
 
$
(40.95
)
 
$
(40.78
)
 
$
(32.10
)
 
$
(42.25
)
 
$
(39.00
)
Book value per share, excluding other accumulated OCI
 
$
78.02

 
$
97.60

 
$
134.37

 
$
129.72

 
$
157.42

Period-end common shares outstanding
 
5,751

 
5,748

 
5,764

 
5,770

 
5,815

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indebtedness:
 
 
 
 
 
 
 
 
 
 
Surplus notes
 
$
126.2

 
$
126.2

 
$
126.1

 
$
126.1

 
$
174.2

Senior unsecured bonds - due 2032
 
252.7

 
252.7

 
252.7

 
252.7

 
252.7

Total indebtedness
 
$
378.9

 
$
378.9

 
$
378.8

 
$
378.8

 
$
426.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory Financial Data for Phoenix Life Insurance Company [2]
 
 
 
 
 
 
 
 
 
 
Capital, surplus and surplus notes
 
$
358.6

 
$
609.2

 
$
597.0

 
$
793.6

 
$
728.8

Asset valuation reserve (AVR)
 
155.3

 
143.0

 
138.2

 
128.9

 
116.9

Capital, surplus, surplus notes and AVR
 
$
513.9

 
$
752.2

 
$
735.2

 
$
922.5

 
$
845.7

Policyholder dividend liability
 
$
167.9

 
$
174.7

 
$
176.6

 
$
180.5

 
$
223.1

Interest maintenance reserve
 
$
(56.9
)
 
$
(60.5
)
 
$
(66.2
)
 
$
(55.5
)
 
$
(57.6
)
Statutory gain from operations [3]
 
$
16.7

 
$
116.2

 
$
79.8

 
$
160.5

 
$
130.5

Statutory net income (loss) excluding de-stack [3]
 
$
9.0

 
$
132.5

 
$
(21.0
)
 
$
156.2

 
$
95.0

Realized loss on de-stack [3] [5]
 
(687.9
)
 
—

 
—

 
—

 
—

Statutory net income (loss) [3] [4]
 
$
(678.9
)
 
$
132.5

 
$
(21.0
)
 
$
156.2

 
$
95.0

———————
[1]
This debt to total capitalization is based on total stockholders' equity, excluding other accumulated OCI.
[2]
Phoenix Life Insurance Company is required to file financial statements with state regulatory authorities prepared on an accounting basis prescribed or permitted by the Insurance Department of the State of New York.
[3]
Amounts are on a year-to-date basis.
[4]
As a result of discussions with its regulators related to the intercompany reinsurance treaty between Phoenix Life and PHL Variable executed in the second quarter of 2015, the Company’s operating subsidiaries were de-stacked, effective July 1, 2015. The impact of the de-stack on Phoenix Life’s capital and surplus was $262.2 million.
[5]
Prior to de-stacking this amount was recognized as an unrealized loss within statutory capital and surplus. Upon de-stacking, the amount was realized within net income with the corresponding reduction in unrealized losses in surplus.


1


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Statements of Operations [1]
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015
 
 
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
251.1

 
$
240.9

 
$
332.1

 
$
351.6

 
$
402.3

 
$
449.4

Fee income
404.1

 
404.2

 
545.1

 
550.3

 
556.0

 
596.9

Net investment income
639.1

 
607.9

 
830.9

 
789.7

 
827.8

 
824.0

Net realized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
  Total other-than-temporary impairment ("OTTI") losses
(12.3
)
 
(4.7
)
 
(7.7
)
 
(7.0
)
 
(50.8
)
 
(65.8
)
Portion of OTTI losses recognized in
  other comprehensive income (“OCI”)
(1.2
)
 
(0.4
)
 
(0.4
)
 
(4.8
)
 
22.9

 
38.5

  Net OTTI losses recognized in earnings
(13.5
)
 
(5.1
)
 
(8.1
)
 
(11.8
)
 
(27.9
)
 
(27.3
)
  Net realized gains (losses), excluding OTTI losses
(16.3
)
 
(21.4
)
 
(33.1
)
 
27.8

 
11.1

 
(5.3
)
Net realized gains (losses)
(29.8
)
 
(26.5
)
 
(41.2
)
 
16.0

 
(16.8
)
 
(32.6
)
Gain on debt repurchase
—

 
—

 
—

 
—

 
11.9

 
0.2

Total revenues
1,264.5

 
1,226.5

 
1,666.9

 
1,707.6

 
1,781.2

 
1,837.9

 
 
 
 
 
 
 
 
 
 
 
 
BENEFITS AND EXPENSES:


 


 
 
 
 
 
 
 
 
Policy benefits
875.7

 
795.2

 
1,119.2

 
965.1

 
1,162.4

 
1,138.8

Policyholder dividends
155.7

 
171.8

 
244.8

 
235.9

 
292.1

 
259.4

Policy acquisition cost amortization
71.8

 
73.1

 
119.6

 
103.1

 
196.1

 
166.7

Interest expense on indebtedness
21.2

 
21.2

 
28.3

 
28.3

 
30.8

 
31.8

Other operating expenses
276.7

 
258.6

 
350.2

 
337.1

 
253.3

 
246.6

Total benefits and expenses
1,401.1

 
1,319.9

 
1,862.1

 
1,669.5

 
1,934.7

 
1,843.3

Income (loss) from continuing operations before income taxes
(136.6
)
 
(93.4
)
 
(195.2
)
 
38.1

 
(153.5
)
 
(5.4
)
Income tax expense (benefit)
(32.2
)
 
(21.8
)
 
10.5

 
8.5

 
(4.7
)
 
12.4

Income (loss) from continuing operations
(104.4
)
 
(71.6
)
 
(205.7
)
 
29.6

 
(148.8
)
 
(17.8
)
Income (loss) from discontinued operations, net of income taxes
(1.2
)
 
(1.5
)
 
(3.5
)
 
(2.9
)
 
(15.6
)
 
(21.6
)
Net income (loss)
(105.6
)
 
(73.1
)
 
(209.2
)
 
26.7

 
(164.4
)
 
(39.4
)
Less: Net income (loss) attributable to noncontrolling interests
6.7

 
(0.2
)
 
4.0

 
0.7

 
0.6

 
(0.5
)
Net income (loss) attributable to The Phoenix Companies, Inc.
$
(112.3
)
 
$
(72.9
)
 
$
(213.2
)
 
$
26.0

 
$
(165.0
)
 
$
(38.9
)
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations – basic
$
(19.32
)
 
$
(12.42
)
 
$
(36.48
)
 
$
5.04

 
$
(25.90
)
 
$
(2.98
)
Income (loss) from continuing operations – diluted
$
(19.32
)
 
$
(12.42
)
 
$
(36.48
)
 
$
5.01

 
$
(25.90
)
 
$
(2.98
)
Income (loss) from discontinued operations – basic
$
(0.21
)
 
$
(0.26
)
 
$
(0.61
)
 
$
(0.51
)
 
$
(2.70
)
 
$
(3.71
)
Income (loss) from discontinued operations – diluted
$
(0.21
)
 
$
(0.26
)
 
$
(0.61
)
 
$
(0.50
)
 
$
(2.70
)
 
$
(3.71
)
Net income (loss) attributable to The Phoenix Companies, Inc. – basic
$
(19.53
)
 
$
(12.68
)
 
$
(37.09
)
 
$
4.53

 
$
(28.60
)
 
$
(6.69
)
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted
$
(19.53
)
 
$
(12.68
)
 
$
(37.09
)
 
$
4.51

 
$
(28.60
)
 
$
(6.69
)
Basic weighted-average common shares outstanding (in thousands)
5,751

 
5,747

 
5,748

 
5,735

 
5,770

 
5,815

Diluted weighted-average common shares outstanding (in thousands)
5,751

 
5,747

 
5,748

 
5,764

 
5,770

 
5,815

———————
[1]
Certain reclassifications have been made to prior periods to conform with the current presentation.

2


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Statements of Operations [1]
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
March
 
June
 
September
 
December
 
March
 
June
 
September
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
79.6

 
$
83.2

 
$
78.1

 
$
91.2

 
$
78.4

 
$
86.6

 
$
86.1

Fee income
134.8

 
134.2

 
135.2

 
140.9

 
133.8

 
135.2

 
135.1

Net investment income
211.5

 
191.5

 
204.9

 
223.0

 
209.3

 
202.3

 
227.5

Net realized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 


  Total other-than-temporary impairment ("OTTI") losses
—

 
(1.0
)
 
(3.7
)
 
(3.0
)
 
(7.0
)
 
(0.9
)
 
(4.4
)
Portion of OTTI losses recognized in
  other comprehensive income (“OCI”)
(0.2
)
 
—

 
(0.2
)
 
—

 
(1.4
)
 
(0.2
)
 
0.4

  Net OTTI losses recognized in earnings
(0.2
)
 
(1.0
)
 
(3.9
)
 
(3.0
)
 
(8.4
)
 
(1.1
)
 
(4.0
)
  Net realized gains (losses), excluding OTTI losses
(26.7
)
 
5.2

 
0.1

 
(11.7
)
 
(7.7
)
 
(1.0
)
 
(7.6
)
Net realized gains (losses)
(26.9
)
 
4.2

 
(3.8
)
 
(14.7
)
 
(16.1
)
 
(2.1
)
 
(11.6
)
Total revenues
399.0

 
413.1

 
414.4

 
440.4

 
405.4

 
422.0

 
437.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
BENEFITS AND EXPENSES:


 


 
 
 
 
 
 
 
 
 
 
Policy benefits
230.3

 
301.3

 
263.6

 
324.0

 
292.0

 
287.3

 
296.4

Policyholder dividends
72.2

 
42.6

 
57.0

 
73.0

 
40.1

 
55.0

 
60.6

Policy acquisition cost amortization
24.6

 
19.1

 
29.4

 
46.5

 
17.1

 
24.6

 
30.1

Interest expense on indebtedness
7.1

 
7.1

 
7.0

 
7.1

 
7.1

 
7.1

 
7.0

Other operating expenses
97.2

 
84.4

 
77.0

 
91.6

 
123.8

 
82.8

 
70.1

Total benefits and expenses
431.4

 
454.5

 
434.0

 
542.2

 
480.1

 
456.8

 
464.2

Income (loss) from continuing operations before income taxes
(32.4
)
 
(41.4
)
 
(19.6
)
 
(101.8
)
 
(74.7
)
 
(34.8
)
 
(27.1
)
Income tax expense (benefit)
(4.8
)
 
(19.6
)
 
2.6

 
32.3

 
(2.2
)
 
(13.0
)
 
(17.0
)
Income (loss) from continuing operations
(27.6
)
 
(21.8
)
 
(22.2
)
 
(134.1
)
 
(72.5
)
 
(21.8
)
 
(10.1
)
Income (loss) from discontinued operations, net of income taxes
(0.6
)
 
(0.6
)
 
(0.3
)
 
(2.0
)
 
(0.5
)
 
(0.6
)
 
(0.1
)
Net income (loss)
(28.2
)
 
(22.4
)
 
(22.5
)
 
(136.1
)
 
(73.0
)
 
(22.4
)
 
(10.2
)
Less: Comprehensive income (loss) attributable to noncontrolling interests
(0.1
)
 
—

 
(0.1
)
 
4.2

 
1.0

 
0.2

 
5.5

Net income (loss) attributable to
  The Phoenix Companies, Inc.
$
(28.1
)
 
$
(22.4
)
 
$
(22.4
)
 
$
(140.3
)
 
$
(74.0
)
 
$
(22.6
)
 
$
(15.7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations – basic
$
(4.79
)
 
$
(3.80
)
 
$
(3.85
)
 
$
(24.05
)
 
$
(12.78
)
 
$
(3.83
)
 
$
(2.71
)
Income (loss) from continuing operations – diluted
$
(4.79
)
 
$
(3.80
)
 
$
(3.85
)
 
$
(24.05
)
 
$
(12.78
)
 
$
(3.83
)
 
$
(2.71
)
Income (loss) from discontinued operations – basic
$
(0.10
)
 
$
(0.10
)
 
$
(0.05
)
 
$
(0.35
)
 
$
(0.09
)
 
$
(0.10
)
 
$
(0.02
)
Income (loss) from discontinued operations – diluted
$
(0.10
)
 
$
(0.10
)
 
$
(0.05
)
 
$
(0.35
)
 
$
(0.09
)
 
$
(0.10
)
 
$
(0.02
)
Net income (loss) attributable to
  The Phoenix Companies, Inc. – basic
$
(4.89
)
 
$
(3.90
)
 
$
(3.90
)
 
$
(24.40
)
 
$
(12.87
)
 
$
(3.93
)
 
$
(2.73
)
Net income (loss) attributable to
  The Phoenix Companies, Inc. – diluted
$
(4.89
)
 
$
(3.90
)
 
$
(3.90
)
 
$
(24.40
)
 
$
(12.87
)
 
$
(3.93
)
 
$
(2.73
)
Basic weighted-average common shares outstanding (in thousands)
5,742

 
5,749

 
5,750

 
5,750

 
5,751

 
5,751

 
5,751

Diluted weighted-average common shares outstanding (in thousands)
5,742

 
5,749

 
5,750

 
5,750

 
5,751

 
5,751

 
5,751

———————
[1]
Certain reclassifications have been made to prior periods to conform with the current presentation.

3


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Statements of Operations excluding Closed Block
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
28.1

 
$
21.2

 
$
30.3

 
$
33.8

 
$
32.8

 
$
35.7

Fee income
404.1

 
404.2

 
545.1

 
550.3

 
556.0

 
596.9

Net investment income
330.6

 
304.0

 
419.8

 
380.1

 
374.5

 
358.5

Net realized gains (losses)
(26.9
)
 
(37.8
)
 
(54.0
)
 
(0.6
)
 
(26.0
)
 
(28.3
)
Gain on debt repurchase
—

 
—

 
—

 
—

 
11.9

 
—

Total revenues
735.9

 
691.6

 
941.2

 
963.6

 
949.2

 
962.8

BENEFITS AND EXPENSES:


 


 
 
 
 
 
 
 
 
Policy benefits
538.7

 
462.1

 
680.8

 
500.6

 
668.6

 
573.9

Policyholder dividends
(0.8
)
 
—

 
0.2

 
0.2

 
0.3

 
0.7

Policy acquisition cost amortization
71.8

 
73.1

 
119.6

 
103.1

 
196.1

 
166.7

Interest expense on indebtedness
21.2

 
21.2

 
28.3

 
28.3

 
30.8

 
31.8

Other operating expenses
273.8

 
256.6

 
347.5

 
331.8

 
250.3

 
242.9

Total benefits and expenses
904.7

 
813.0

 
1,176.4

 
964.0

 
1,146.1

 
1,016.0

Income (loss) from continuing operations before income taxes, excl. regulatory closed block [1]
(168.8
)
 
(121.4
)
 
(235.2
)
 
(0.4
)
 
(196.9
)
 
(53.2
)
Income (loss) from continuing operations before income taxes - regulatory closed block [2]
32.2

 
28.0

 
40.0

 
38.5

 
43.4

 
47.8

Income (loss) from continuing operations before income taxes
$
(136.6
)
 
$
(93.4
)
 
$
(195.2
)
 
$
38.1

 
$
(153.5
)
 
$
(5.4
)
———————
[1]
Includes income attributable to noncontrolling interests of $3.4 million and $0.0 million for the nine months ended September 30, 2015 and 2014, respectively.
[2]
Includes income attributable to noncontrolling interests of $3.3 million and $(0.2) million for the nine months ended September 30, 2015 and 2014, respectively.


4


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Statements of Operations excluding Closed Block
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
March
 
June
 
September
 
December
 
March
 
June
 
September
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
6.8

 
$
7.4

 
$
7.0

 
$
9.1

 
$
8.2

 
$
7.8

 
$
12.1

Fee income
134.8

 
134.2

 
135.2

 
140.9

 
133.8

 
135.2

 
135.1

Net investment income
104.2

 
97.8

 
102.0

 
115.8

 
109.1

 
107.3

 
114.2

Net realized gains (losses)
(32.2
)
 
(0.9
)
 
(4.8
)
 
(16.1
)
 
(11.5
)
 
(2.7
)
 
(12.7
)
Total revenues
213.6

 
238.5

 
239.4

 
249.7

 
239.6

 
247.6

 
248.7

BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 


Policy benefits
126.5

 
179.2

 
156.6

 
218.5

 
176.5

 
178.9

 
183.3

Policyholder dividends
0.1

 
0.1

 
—

 
—

 
—

 
0.1

 
(0.9
)
Policy acquisition cost amortization
24.6

 
19.1

 
29.4

 
46.5

 
17.1

 
24.6

 
30.1

Interest expense on indebtedness
7.1

 
7.1

 
7.0

 
7.1

 
7.1

 
7.1

 
7.0

Other operating expenses
96.8

 
83.8

 
75.5

 
91.4

 
123.7

 
81.4

 
68.7

Total benefits and expenses
255.1

 
289.3

 
268.5

 
363.5

 
324.4

 
292.1

 
288.2

Income (loss) from continuing operations before income taxes, excl. regulatory closed block [1]
(41.5
)
 
(50.8
)
 
(29.1
)
 
(113.8
)
 
(84.8
)
 
(44.5
)
 
(39.5
)
Income (loss) from continuing operations before income taxes - regulatory closed block [2]
9.1

 
9.4

 
9.5

 
12.0

 
10.1

 
9.7

 
12.4

Income (loss) from continuing operations before income taxes
$
(32.4
)
 
$
(41.4
)
 
$
(19.6
)
 
$
(101.8
)
 
$
(74.7
)
 
$
(34.8
)
 
$
(27.1
)
———————
[1]
Includes income attributable to noncontrolling interests of $2.8 million and $(0.1) million for the three months ended September 30, 2015 and 2014, respectively.
[2]
Includes income attributable to noncontrolling interests of $2.7 million and $0.0 million for the three months ended September 30, 2015 and 2014, respectively.


5


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Balance Sheets
 
 
 
 
 
 
 
 
 
Third Quarter 2015
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2013
 
2012
 
2011
ASSETS:
 
 
 
 
 
 
 
 
 
Available-for-sale debt securities, at fair value
$
12,590.7

 
$
12,679.3

 
$
11,731.5

 
$
11,902.7

 
$
11,475.6

Available-for-sale equity securities, at fair value
170.9

 
179.5

 
138.0

 
88.8

 
90.2

Short-term investments
229.5

 
149.7

 
361.6

 
699.6

 
268.2

Limited partnerships and other investments
544.5

 
542.8

 
561.3

 
577.6

 
565.9

Policy loans, at unpaid principal balances
2,350.5

 
2,352.1

 
2,350.3

 
2,354.7

 
2,379.3

Derivative instruments
67.1

 
161.3

 
228.8

 
157.4

 
163.3

Fair value investments
185.6

 
235.4

 
215.2

 
201.5

 
184.0

Total investments
16,138.8

 
16,300.1

 
15,586.7

 
15,982.3

 
15,126.5

Cash and cash equivalents
465.2

 
450.0

 
496.4

 
246.4

 
168.2

Accrued investment income
219.3

 
176.7

 
170.4

 
170.3

 
175.6

Reinsurance recoverable
575.9

 
559.1

 
598.1

 
591.3

 
568.5

Deferred policy acquisition costs
895.3

 
848.6

 
947.8

 
898.1

 
1,114.8

Deferred income taxes, net
73.5

 
34.2

 
70.0

 
39.5

 
115.3

Other assets
342.4

 
311.3

 
320.5

 
332.0

 
316.0

Discontinued operations assets
44.8

 
45.2

 
48.9

 
58.5

 
90.1

Separate account assets
2,533.2

 
3,020.7

 
3,402.3

 
3,316.5

 
3,816.9

Total assets
$
21,288.4

 
$
21,745.9

 
$
21,641.1

 
$
21,634.9

 
$
21,491.9

LIABILITIES:


 


 
 
 
 
 
 
Policy liabilities and accruals
12,350.4

 
12,417.6

 
12,416.6

 
12,695.1

 
12,670.8

Policyholder deposit funds
4,319.5

 
3,955.0

 
3,442.6

 
3,055.2

 
2,439.9

Dividend obligations
813.0

 
916.8

 
705.7

 
956.8

 
713.8

Indebtedness
378.9

 
378.9

 
378.8

 
378.8

 
426.9

Pension and post-employment liabilities
369.3

 
380.0

 
313.1

 
428.1

 
428.6

Other liabilities
249.3

 
289.8

 
337.3

 
239.9

 
224.5

Discontinued operations liabilities
39.8

 
40.5

 
43.4

 
53.1

 
79.1

Separate account liabilities
2,533.2

 
3,020.7

 
3,402.3

 
3,316.5

 
3,816.9

Total liabilities
21,053.4

 
21,399.3

 
21,039.8

 
21,123.5

 
20,800.5

STOCKHOLDERS' EQUITY:
 

 
 

 
 
 
 
 
 
Common stock, $.01 par value: 5.8 million and 5.8 million shares outstanding
0.1

 
0.1

 
0.1

 
0.1

 
1.3

Additional paid-in capital
2,632.8

 
2,632.8

 
2,633.1

 
2,633.0

 
2,630.5

Accumulated other comprehensive income (loss)
(235.5
)
 
(234.4
)
 
(185.0
)
 
(243.9
)
 
(226.8
)
Retained earnings (accumulated deficit)
(2,001.3
)
 
(1,889.0
)
 
(1,675.8
)
 
(1,701.6
)
 
(1,536.8
)
Treasury stock, at cost: 0.7 million and 0.7 million shares
(182.9
)
 
(182.9
)
 
(182.9
)
 
(182.9
)
 
(179.5
)
Total The Phoenix Companies, Inc. stockholders' equity
213.2

 
326.6

 
589.5

 
504.7

 
688.7

Noncontrolling interests
21.8

 
20.0

 
11.8

 
6.7

 
2.7

Total stockholders' equity
235.0

 
346.6

 
601.3

 
511.4

 
691.4

Total liabilities and stockholders' equity
$
21,288.4

 
$
21,745.9

 
$
21,641.1

 
$
21,634.9

 
$
21,491.9


6


The Phoenix Companies, Inc.
 
 
 
 
 
Closed Block Assets and Liabilities
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2013
ASSETS:
 
 
 
 
 
Available-for-sale debt securities
$
5,626.9

 
$
5,877.0

 
$
5,753.4

Available-for-sale equity securities
84.6

 
91.7

 
76.5

Short-term investments
39.8

 
—

 
106.9

Limited partnerships and other investments
362.8

 
343.4

 
345.0

Policy loans
1,133.5

 
1,159.1

 
1,201.6

Fair value investments
61.8

 
59.8

 
42.5

Total closed block investments
7,309.4

 
7,531.0

 
7,525.9

Cash and cash equivalents
72.6

 
89.6

 
78.2

Accrued investment income
78.0

 
80.7

 
81.7

Reinsurance recoverable
29.9

 
19.1

 
26.8

Deferred income taxes, net
277.4

 
290.3

 
285.4

Other closed block assets
50.3

 
67.4

 
58.2

Total closed block assets
7,817.6

 
8,078.1

 
8,056.2

Policy liabilities and accruals
7,884.2

 
8,058.2

 
8,258.4

Policyholder dividends payable
198.9

 
201.9

 
207.8

Policy dividend obligation
613.9

 
714.8

 
497.7

Other closed block liabilities
46.1

 
48.0

 
65.9

Total closed block liabilities
8,743.1

 
9,022.9

 
9,029.8

Excess of closed block liabilities over closed block assets [1]
925.5

 
944.8

 
973.6

Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests
(12.6
)
 
(11.8
)
 
(8.0
)
Excess of closed block liabilities over closed block assets attributable to noncontrolling interests
$
938.1

 
$
956.6

 
$
981.6

———————
[1]
The maximum future earnings summary to inure to the benefit of the stockholders is represented by the excess of closed block liabilities over closed block assets. All unrealized investment gains (losses), net of income tax, have been allocated to the policyholder dividend obligation.


7


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Variable Universal Life
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,062.6

 
$
1,089.3

 
$
1,089.3

 
$
1,014.3

 
$
1,019.1

 
$
1,151.6

Deposits
50.5

 
52.2

 
70.1

 
75.4

 
82.6

 
98.3

Surrenders
(56.1
)
 
(58.7
)
 
(79.1
)
 
(102.8
)
 
(123.4
)
 
(135.4
)
Net flows
(5.6
)
 
(6.5
)
 
(9.0
)
 
(27.4
)
 
(40.8
)
 
(37.1
)
Deaths
(6.5
)
 
(5.2
)
 
(6.9
)
 
(5.7
)
 
(5.2
)
 
(5.6
)
Performance and interest credited
(44.1
)
 
32.0

 
59.9

 
182.5

 
120.2

 
(6.7
)
Fees
(5.8
)
 
(6.5
)
 
(8.5
)
 
(9.1
)
 
(10.3
)
 
(11.5
)
Cost of insurance
(46.2
)
 
(46.7
)
 
(62.2
)
 
(65.3
)
 
(68.7
)
 
(71.6
)
Change in funds on deposit
(108.2
)
 
(32.9
)
 
(26.7
)
 
75.0

 
(4.8
)
 
(132.5
)
Balance, end of period
$
954.4

 
$
1,056.4

 
$
1,062.6

 
$
1,089.3

 
$
1,014.3

 
$
1,019.1


8


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable Universal Life
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
March
 
June
 
September
 
December
 
March
 
June
 
September
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,089.3

 
$
1,080.1

 
$
1,092.7

 
$
1,056.4

 
$
1,062.6

 
$
1,067.5

 
$
1,046.2

Deposits
17.6

 
16.1

 
18.5

 
17.9

 
17.4

 
17.3

 
15.8

Surrenders
(19.4
)
 
(20.7
)
 
(18.6
)
 
(20.4
)
 
(19.4
)
 
(18.9
)
 
(17.8
)
Net flows
(1.8
)
 
(4.6
)
 
(0.1
)
 
(2.5
)
 
(2.0
)
 
(1.6
)
 
(2.0
)
Deaths
(2.2
)
 
(1.2
)
 
(1.8
)
 
(1.7
)
 
(1.3
)
 
(2.1
)
 
(3.1
)
Performance and interest credited
13.0

 
36.0

 
(17.0
)
 
27.9

 
25.8

 
(0.2
)
 
(69.7
)
Fees
(2.2
)
 
(2.3
)
 
(2.0
)
 
(2.0
)
 
(2.0
)
 
(2.0
)
 
(1.8
)
Cost of insurance
(16.0
)
 
(15.3
)
 
(15.4
)
 
(15.5
)
 
(15.6
)
 
(15.4
)
 
(15.2
)
Change in funds on deposit
(9.2
)
 
12.6

 
(36.3
)
 
6.2

 
4.9

 
(21.3
)
 
(91.8
)
Balance, end of period
$
1,080.1

 
$
1,092.7

 
$
1,056.4

 
$
1,062.6

 
$
1,067.5

 
$
1,046.2

 
$
954.4


9


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Universal Life
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,781.9

 
$
1,818.2

 
$
1,818.2

 
$
1,837.9

 
$
1,852.8

 
$
1,918.9

Deposits
269.0

 
244.4

 
338.7

 
361.5

 
384.0

 
384.5

Surrenders
(42.3
)
 
(42.6
)
 
(62.3
)
 
(64.9
)
 
(73.2
)
 
(89.5
)
Net flows
226.7

 
201.8

 
276.4

 
296.6

 
310.8

 
295.0

Deaths
(33.1
)
 
(25.9
)
 
(34.8
)
 
(35.5
)
 
(33.6
)
 
(35.8
)
Interest credited
53.4

 
52.6

 
71.0

 
75.2

 
75.1

 
79.2

Fees
(17.0
)
 
(15.4
)
 
(21.1
)
 
(22.4
)
 
(23.5
)
 
(23.8
)
Cost of insurance
(242.4
)
 
(244.2
)
 
(327.8
)
 
(333.6
)
 
(343.7
)
 
(380.7
)
Change in funds on deposit
(12.4
)
 
(31.1
)
 
(36.3
)
 
(19.7
)
 
(14.9
)
 
(66.1
)
Balance, end of period
$
1,769.5

 
$
1,787.1

 
$
1,781.9

 
$
1,818.2

 
$
1,837.9

 
$
1,852.8



10


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Universal Life
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
March
 
June
 
September
 
December
 
March
 
June
 
September
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,818.2

 
$
1,809.0

 
$
1,797.2

 
$
1,787.1

 
$
1,781.9

 
$
1,769.0

 
$
1,762.2

Deposits
87.5

 
77.3

 
79.6

 
94.3

 
89.8

 
80.9

 
98.3

Surrenders
(18.1
)
 
(13.2
)
 
(11.3
)
 
(19.7
)
 
(18.8
)
 
(10.7
)
 
(12.8
)
Net flows
69.4

 
64.1

 
68.3

 
74.6

 
71.0

 
70.2

 
85.5

Deaths
(7.9
)
 
(7.8
)
 
(10.2
)
 
(8.9
)
 
(15.3
)
 
(8.7
)
 
(9.1
)
Interest credited
16.5

 
18.2

 
17.9

 
18.4

 
17.9

 
17.9

 
17.6

Fees
(5.4
)
 
(4.8
)
 
(5.2
)
 
(5.7
)
 
(5.5
)
 
(5.2
)
 
(6.3
)
Cost of insurance
(81.8
)
 
(81.5
)
 
(80.9
)
 
(83.6
)
 
(81.0
)
 
(81.0
)
 
(80.4
)
Change in funds on deposit
(9.2
)
 
(11.8
)
 
(10.1
)
 
(5.2
)
 
(12.9
)
 
(6.8
)
 
7.3

Balance, end of period
$
1,809.0

 
$
1,797.2

 
$
1,787.1

 
$
1,781.9

 
$
1,769.0

 
$
1,762.2

 
$
1,769.5



11


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Life Sales
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
Life Insurance Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesaler Channel
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
$
—

 
$
—

 
$
—

 
$
—

 
$
0.1

 
$
0.1

Universal life/interest sensitive
3.2

 
0.9

 
1.6

 
2.0

 
2.2

 
2.1

Whole life
2.1

 
1.0

 
1.6

 
0.4

 
0.6

 
—

Term life
8.3

 
0.4

 
1.6

 
—

 
—

 
—

Life insurance annualized premium [1]
13.6

 
2.3

 
4.8

 
2.4

 
2.9

 
2.2

 
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
—

 
—

 
—

Universal life/interest sensitive
0.3

 
0.1

 
0.1

 
0.1

 
0.2

 
0.7

Whole life
—

 
—

 
—

 
2.1

 
5.2

 
1.6

Life insurance single premium
0.3

 
0.1

 
0.1

 
2.2

 
5.4

 
2.3

 
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
—

 
0.1

 
0.1

Universal life/interest sensitive
3.5

 
1.0

 
1.7

 
2.1

 
2.4

 
2.8

Whole life
2.1

 
1.0

 
1.6

 
2.5

 
5.8

 
1.6

Term life
8.3

 
0.4

 
1.6

 
—

 
—

 
—

Total wholesaler life insurance premium [2]
$
13.9

 
$
2.4

 
$
4.9

 
$
4.6

 
$
8.3

 
$
4.5

———————
[1]
Annualized premium represents second year premiums on an annual basis.
[2]
Total premium represents annualized and single premiums.


12


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Life Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
March
 
June
 
September
 
December
 
March
 
June
 
September
Life Insurance Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesaler Channel
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Universal life/interest sensitive
0.2

 
0.3

 
0.4

 
0.7

 
1.6

 
1.1

 
0.5

Whole life
0.3

 
0.4

 
0.3

 
0.6

 
0.6

 
0.7

 
0.8

Term life
—

 
—

 
0.4

 
1.2

 
1.8

 
3.0

 
3.5

Life insurance annualized premium [1]
0.5

 
0.7

 
1.1

 
2.5

 
4.0

 
4.8

 
4.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
—

 
—

 
—

 
—

Universal life/interest sensitive
—

 
0.1

 
—

 
—

 
0.1

 
—

 
0.2

Whole life
—

 
—

 
—

 
—

 
—

 
—

 
—

Life insurance single premium
—

 
0.1

 
—

 
—

 
0.1

 
—

 
0.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
—

 
—

 
—

 
—

Universal life/interest sensitive
0.2

 
0.4

 
0.4

 
0.7

 
1.7

 
1.1

 
0.7

Whole life
0.3

 
0.4

 
0.3

 
0.6

 
0.6

 
0.7

 
0.8

Term life
—

 
—

 
0.4

 
1.2

 
1.8

 
3.0

 
3.5

Total wholesaler life insurance premium [2]
$
0.5

 
$
0.8

 
$
1.1

 
$
2.5

 
$
4.1

 
$
4.8

 
$
5.0

———————
[1]
Annualized premium represents second year premiums on an annual basis.
[2]
Total premium represents annualized and single premiums.


13


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Total Annuity
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
5,674.5

 
$
5,502.4

 
$
5,502.4

 
$
5,042.1

 
$
4,495.4

 
$
4,083.3

Deposits
596.0

 
593.1

 
770.9

 
682.9

 
824.2

 
951.5

Surrenders
(475.5
)
 
(500.2
)
 
(658.4
)
 
(597.8
)
 
(529.9
)
 
(485.1
)
Net flows
120.5

 
92.9

 
112.5

 
85.1

 
294.3

 
466.4

Deaths
(63.9
)
 
(58.3
)
 
(81.8
)
 
(79.7
)
 
(73.3
)
 
(62.7
)
Performance and interest credited
(49.5
)
 
135.6

 
196.2

 
514.9

 
370.3

 
15.1

Bonus
11.6

 
12.7

 
17.3

 
10.5

 
16.1

 
48.4

Fees
(56.3
)
 
(53.8
)
 
(72.1
)
 
(70.5
)
 
(60.7
)
 
(55.1
)
Change in funds on deposit
(37.6
)
 
129.1

 
172.1

 
460.3

 
546.7

 
412.1

Balance, end of period
$
5,636.9

 
$
5,631.5

 
$
5,674.5

 
$
5,502.4

 
$
5,042.1

 
$
4,495.4



14


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Annuity
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
 
 
March
 
June
 
September
 
December
 
March
 
June
 
September
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
5,502.4

 
$
5,525.2

 
$
5,623.0

 
$
5,631.5

 
$
5,674.5

 
$
5,731.7

 
$
5,772.7

Deposits
170.4

 
201.0

 
221.7

 
177.8

 
189.4

 
221.4

 
185.2

Surrenders
(172.7
)
 
(170.4
)
 
(157.1
)
 
(158.2
)
 
(159.4
)
 
(160.2
)
 
(155.9
)
Net flows
(2.3
)
 
30.6

 
64.6

 
19.6

 
30.0

 
61.2

 
29.3

Deaths
(18.7
)
 
(18.2
)
 
(21.4
)
 
(23.5
)
 
(24.5
)
 
(18.9
)
 
(20.5
)
Performance and interest credited
60.0

 
97.7

 
(22.1
)
 
60.6

 
65.0

 
12.9

 
(127.4
)
Bonus
2.1

 
5.4

 
5.2

 
4.6

 
5.2

 
4.2

 
2.2

Fees
(18.3
)
 
(17.7
)
 
(17.8
)
 
(18.3
)
 
(18.5
)
 
(18.4
)
 
(19.4
)
Change in funds on deposit
22.8

 
97.8

 
8.5

 
43.0

 
57.2

 
41.0

 
(135.8
)
Balance, end of period
$
5,525.2

 
$
5,623.0

 
$
5,631.5

 
$
5,674.5

 
$
5,731.7

 
$
5,772.7

 
$
5,636.9



15


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Fixed Indexed Annuity
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
2,813.2

 
$
2,259.9

 
$
2,259.9

 
$
1,800.5

 
$
1,139.4

 
$
226.0

Deposits
566.7

 
549.8

 
713.7

 
602.2

 
741.2

 
890.8

Surrenders
(161.2
)
 
(118.1
)
 
(160.7
)
 
(135.2
)
 
(75.5
)
 
(24.6
)
Net flows
405.5

 
431.7

 
553.0

 
467.0

 
665.7

 
866.2

Deaths
(33.6
)
 
(29.2
)
 
(41.9
)
 
(30.9
)
 
(24.3
)
 
(5.7
)
Interest credited
35.6

 
44.6

 
58.9

 
41.8

 
19.3

 
6.3

Bonus
8.4

 
9.8

 
13.6

 
6.0

 
13.2

 
48.4

Fees
(30.0
)
 
(22.1
)
 
(30.3
)
 
(24.5
)
 
(12.8
)
 
(1.8
)
Change in funds on deposit
385.9

 
434.8

 
553.3

 
459.4

 
661.1

 
913.4

Balance, end of period
$
3,199.1

 
$
2,694.7

 
$
2,813.2

 
$
2,259.9

 
$
1,800.5

 
$
1,139.4



16


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Indexed Annuity
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
March
 
June
 
September
 
December
 
March
 
June
 
September
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
2,259.9

 
$
2,376.3

 
$
2,518.4

 
$
2,694.7

 
$
2,813.2

 
$
2,937.8

 
$
3,086.4

Deposits
154.6

 
186.9

 
208.3

 
163.9

 
176.7

 
208.3

 
181.7

Surrenders
(37.2
)
 
(43.4
)
 
(37.5
)
 
(42.6
)
 
(50.1
)
 
(55.6
)
 
(55.5
)
Net flows
117.4

 
143.5

 
170.8

 
121.3

 
126.6

 
152.7

 
126.2

Deaths
(8.9
)
 
(9.4
)
 
(10.9
)
 
(12.7
)
 
(11.3
)
 
(10.7
)
 
(11.6
)
Interest credited
13.8

 
11.0

 
19.8

 
14.3

 
14.3

 
13.2

 
8.1

Bonus
1.1

 
4.4

 
4.3

 
3.8

 
4.2

 
3.0

 
1.2

Fees
(7.0
)
 
(7.4
)
 
(7.7
)
 
(8.2
)
 
(9.2
)
 
(9.6
)
 
(11.2
)
Change in funds on deposit
116.4

 
142.1

 
176.3

 
118.5

 
124.6

 
148.6

 
112.7

Balance, end of period
$
2,376.3

 
$
2,518.4

 
$
2,694.7

 
$
2,813.2

 
$
2,937.8

 
$
3,086.4

 
$
3,199.1



17


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Deferred Policy Acquisition Costs
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
Composition of Deferred Policy Acquisition Costs by Product:
 
 
 
 
 
 
 
 
 
Variable universal life
$
110.2

 
$
120.4

 
$
120.3

 
$
129.3

 
$
140.8

Universal life
133.1

 
159.9

 
129.0

 
214.9

 
199.7

Variable annuities
53.1

 
69.4

 
62.4

 
84.1

 
92.2

Fixed annuities
273.4

 
221.0

 
220.9

 
194.3

 
133.7

Traditional life
325.5

 
313.2

 
316.0

 
325.2

 
331.7

Total deferred policy acquisition costs
$
895.3

 
$
883.9

 
$
848.6

 
$
947.8

 
$
898.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Deferred Policy Acquisition Costs:
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
848.6

 
$
947.8

 
$
947.8

 
$
898.1

 
$
1,114.8

Policy acquisition costs deferred
70.7

 
54.9

 
72.9

 
58.4

 
58.1

Costs amortized to expenses:
 
 
 

 
 
 
 
 
 
     Recurring costs
(68.4
)
 
(82.8
)
 
(129.5
)
 
(117.9
)
 
(141.3
)
     Assumption unlocking
(6.6
)
 
—

 
(4.4
)
 
25.4

 
(55.6
)
     Realized investment gains (losses)
3.2

 
9.7

 
14.3

 
(10.6
)
 
0.8

Offsets to net unrealized investment gains or losses
 
 
 
 
 
 
 
 
 
     included in AOCI
47.8

 
(45.7
)
 
(52.5
)
 
94.4

 
(78.7
)
Balance, end of period
$
895.3

 
$
883.9

 
$
848.6

 
$
947.8

 
$
898.1



18


The Phoenix Companies, Inc.
 
 
 
 
 
General Account Investment Portfolio Summary
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale Debt Securities Ratings
 
 
 
 
 
 
September 30, 2015
 
 
 
Fair Value
 
Amortized Cost
 
 
AAA/AA/A
$
7,228.6

 
$
6,841.0

 
 
BBB
4,531.0

 
4,449.1

 
 
   Total investment grade
11,759.6

 
11,290.1

 
 
BB
568.9

 
592.5

 
 
B
201.9

 
211.3

 
 
CCC and lower
36.9

 
39.4

 
 
In or near default
23.4

 
22.6

 
 
  Total available-for-sale debt securities
$
12,590.7

 
$
12,155.9

 
 
 
 
 
 
 
 
% Investment Grade
93.4
%
 
92.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized Gains (Losses) on Debt and Equity Securities
 
 
 
 
 
Nine months ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
Outside Closed Block
 
Closed Block
Sources of Changes in Net Unrealized Gains (Losses):
 
 
 
 
 
Debt securities
$
(266.5
)
 
$
(135.7
)
 
$
(130.8
)
Equity securities
(3.8
)
 
(1.5
)
 
(2.3
)
Other investments
(2.3
)
 
(1.2
)
 
(1.1
)
Net unrealized investment gains (losses)
$
(272.6
)
 
$
(138.4
)
 
$
(134.2
)
 
 
 
 
 
 
Net unrealized investment gains (losses)
(272.6
)
 
(138.4
)
 
(134.2
)
Applicable to closed block policyholder dividend obligation
(133.8
)
 
—

 
(133.8
)
Applicable to deferred policy acquisition cost
(47.8
)
 
(47.8
)
 
—

Applicable to other actuarial offsets
(43.6
)
 
(43.2
)
 
(0.4
)
Applicable to deferred income tax expense (benefit)
(39.2
)
 
(39.2
)
 
—

Offsets to net unrealized investment gains (losses)
(264.4
)
 
(130.2
)
 
(134.2
)
Net unrealized gains (losses) included in OCI
$
(8.2
)
 
$
(8.2
)
 
$
—



19


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
General Account GAAP Net Investment Income Yields
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
Sources of Net Investment Income:
 
 
 
 
 
 
 
 
 
Debt securities [1]
$
451.1

 
$
433.6

 
$
581.6

 
$
565.0

 
$
604.8

Equity securities
5.1

 
6.1

 
9.2

 
7.2

 
4.3

Limited partnerships and other investments
49.5

 
52.0

 
65.3

 
58.3

 
63.7

Policy loans
126.9

 
124.8

 
167.4

 
160.0

 
161.5

Fair value investments
26.5

 
4.9

 
25.4

 
14.1

 
9.4

Total investment income
659.1

 
621.4

 
848.9

 
804.6

 
843.7

Less: Discontinued operations
0.9

 
0.8

 
1.1

 
1.3

 
2.1

Less: Investment expenses
19.1

 
12.7

 
16.9

 
13.6

 
13.8

Net investment income
$
639.1

 
$
607.9

 
$
830.9

 
$
789.7

 
$
827.8

Amounts applicable to closed block
$
308.5

 
$
303.9

 
$
411.1

 
$
409.6

 
$
453.3

 
 
 
 
 
 
 
 
 
 
Annualized Yields:
 
 
 
 
 
 
 
 
 
Debt securities
4.9
%
 
7.3
%
 
4.9
%
 
4.8
%
 
5.3
%
Equity securities
4.1
%
 
8.8
%
 
6.7
%
 
7.5
%
 
5.6
%
Limited partnerships and other investments
15.1
%
 
18.5
%
 
11.8
%
 
11.2
%
 
11.1
%
Policy loans
7.4
%
 
10.7
%
 
7.1
%
 
6.8
%
 
6.8
%
Fair value investments
80.3
%
 
8.0
%
 
20.1
%
 
10.9
%
 
7.3
%
Total investment yield
6.0
%
 
8.3
%
 
5.6
%
 
5.4
%
 
5.8
%
Investment expenses and discontinued operations
0.1
%
 
0.1
%
 
0.1
%
 
0.1
%
 
0.1
%
Total net investment income yields
5.9
%
 
8.1
%
 
5.5
%
 
5.3
%
 
5.7
%
———————
[1]
Includes net investment income on short-term investments.


20


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Net Realized Gains (Losses)
 
 
 
 
 
 
 
 
 
Third Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
December 31,
 
2015
 
2014
 
2014
 
2013
 
2012
Sources and Types of Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
 
Total other-than-temporary debt impairments
$
(5.3
)
 
$
(2.8
)
 
$
(5.6
)
 
$
(7.0
)
 
$
(45.7
)
Portion of losses recognized in OCI
(1.2
)
 
(0.4
)
 
(0.4
)
 
(4.8
)
 
22.9

Net debt impairments recognized in earnings
$
(6.5
)
 
$
(3.2
)
 
$
(6.0
)
 
$
(11.8
)
 
$
(22.8
)
Debt security impairments:
 

 
 

 
  

 
  

 
  

  U.S. government and agency
$
—

 
$
—

 
$
—

 
$
—

 
$
—

  State and political subdivision
—

 
—

 
—

 
—

 
(0.6
)
  Foreign government
—

 
—

 
—

 
—

 
—

  Corporate
(6.3
)
 
(3.2
)
 
(6.0
)
 
(3.8
)
 
(3.0
)
  CMBS
—

 
—

 
—

 
(2.7
)
 
(4.1
)
  RMBS
(0.2
)
 
—

 
—

 
(4.3
)
 
(10.3
)
  CDO/CLO
—

 
—

 
—

 
(1.0
)
 
(3.8
)
  Other ABS
—

 
—

 
—

 
—

 
(1.0
)
Net debt security impairments
(6.5
)
 
(3.2
)
 
(6.0
)
 
(11.8
)
 
(22.8
)
Equity security impairments
(7.0
)
 
(1.9
)
 
(2.1
)
 
—

 
(4.8
)
Limited partnerships and other investment impairments
—

 
—

 
—

 
—

 
(0.3
)
Impairment losses
(13.5
)
 
(5.1
)
 
(8.1
)
 
(11.8
)
 
(27.9
)
Debt security transaction gains
25.7

 
31.2

 
41.8

 
45.3

 
46.4

Debt security transaction losses
(3.6
)
 
(13.6
)
 
(17.7
)
 
(2.2
)
 
(11.1
)
Equity security transaction gains
1.7

 
6.0

 
10.4

 
4.2

 
14.4

Equity security transaction losses
—

 
(1.5
)
 
(1.0
)
 
(3.8
)
 
(0.4
)
Limited partnerships and other investment transaction gains
—

 
—

 
—

 
0.8

 
7.7

Limited partnerships and other investment transaction losses
—

 
—

 
(0.7
)
 
(4.6
)
 
(2.5
)
Net transaction gains (losses)
23.8

 
22.1

 
32.8

 
39.7

 
54.5

Derivative instruments
(22.0
)
 
(20.9
)
 
(20.8
)
 
(27.7
)
 
(50.4
)
Embedded derivatives [1]
(9.5
)
 
(23.5
)
 
(45.9
)
 
12.2

 
4.9

Assets valued at fair value
(8.6
)
 
0.9

 
0.8

 
3.6

 
2.1

Net realized gains (losses), excluding impairment losses
(16.3
)
 
(21.4
)
 
(33.1
)
 
27.8

 
11.1

Net realized gains (losses), including impairment losses
$
(29.8
)
 
$
(26.5
)
 
$
(41.2
)
 
$
16.0

 
$
(16.8
)
———————
[1]
Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity riders.


21
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