0001129633-16-000042.txt : 20160510 0001129633-16-000042.hdr.sgml : 20160510 20160510170528 ACCESSION NUMBER: 0001129633-16-000042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20160510 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160510 DATE AS OF CHANGE: 20160510 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: 161636702 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-k_financialsupplemen.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): May 10, 2016


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 May 10, 2016, The Phoenix Companies, Inc. made available on its website its Financial Supplement for the quarter ended March 31, 2016. 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 March 31, 2016.






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: May 10, 2016
By:
/s/ Ernest M. McNeill, Jr.
 
 
Name:  Ernest M. McNeill, Jr.
 
 
Title:  Senior Vice President and Chief Accounting Officer





 EX-99.1 2 exhibit991_financialsupple.htm EXHIBIT 99.1 SEC Exhibit


EXHIBIT 99.1








Financial Supplement
The Phoenix Companies, Inc.



March 31, 2016




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
March 2016 (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
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Period Ended:
 
March 31,
 
December 31,
 
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet Information
 
 
 
 
 
 
 
 
 
 
General account invested assets
 
$
16,741.9

 
$
16,334.5

 
$
16,750.1

 
$
16,083.1

 
$
16,228.7

Separate account assets
 
2,413.6

 
2,536.4

 
3,020.7

 
3,402.3

 
3,316.5

Total assets
 
21,327.2

 
21,084.7

 
21,738.2

 
21,633.1

 
21,626.4

Indebtedness
 
371.8

 
371.7

 
371.2

 
370.8

 
370.3

Total stockholders' equity attributable to The Phoenix Companies, Inc.
 
123.7

 
161.2

 
326.6

 
589.5

 
504.7

Accumulated OCI
 
(261.0
)
 
(266.2
)
 
(234.4
)
 
(185.0
)
 
(243.8
)
Total stockholders' equity, excluding other accumulated OCI
 
$
384.7

 
$
427.4

 
$
561.0

 
$
774.5

 
$
748.5

Debt to total capitalization [1]
 
49.1
%
 
46.5
%
 
39.8
%
 
32.4
%
 
33.1
%
Book value per share
 
$
21.51

 
$
28.03

 
$
56.82

 
$
102.27

 
$
87.47

Per share impact of other accumulated OCI
 
$
(45.38
)
 
$
(46.29
)
 
$
(40.78
)
 
$
(32.10
)
 
$
(42.25
)
Book value per share, excluding other accumulated OCI
 
$
66.89

 
$
74.32

 
$
97.60

 
$
134.37

 
$
129.72

Period-end common shares outstanding
 
5,751

 
5,751

 
5,748

 
5,764

 
5,770

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indebtedness [5]
 
 
 
 
 
 
 
 
 
 
Surplus notes
 
$
124.8

 
$
124.7

 
$
124.7

 
$
124.5

 
$
124.4

Senior unsecured bonds - due 2032
 
247.0

 
247.0

 
246.5

 
246.3

 
245.9

Total indebtedness
 
$
371.8

 
$
371.7

 
$
371.2

 
$
370.8

 
$
370.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory Financial Data [2]
 
 
 
 
 
 
 
 
 
 
Statutory capital, surplus and AVR
 
 
 
 
 
 
 
 
 
 
Phoenix Life [3]
 
$
505.5

 
$
535.3

 
$
752.2

 
$
735.2

 
$
922.5

PHL Variable
 
$
216.3

 
$
209.3

 
$
213.7

 
$
235.2

 
$
321.0

Statutory net income (loss)
 
 
 
 
 
 
 
 
 
 
Phoenix Life [4]
 
$
18.2

 
$
(660.7
)
 
$
132.5

 
$
(21.0
)
 
$
156.2

PHL Variable
 
$
(16.9
)
 
$
(14.0
)
 
$
(41.1
)
 
$
(86.1
)
 
$
49.7

———————
[1]
This debt to total capitalization is based on total stockholders' equity, excluding other accumulated OCI.
[2]
Amounts in statements filed with state regulatory authorities differ from audited financial statements.
[3]
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. Prior to the effective date, Phoenix Life’s capital and surplus included the capital and surplus of its subsidiaries.
[4]
Phoenix Life's 2015 statutory net loss includes $687.9 million of realized losses relating to the de-stacking of Phoenix Life’s life subsidiaries. There was an offsetting unrealized capital gain for the same amount, resulting in no impact to capital and surplus.
[5]
As a result of new accounting guidance effective January 1, 2016 that was adopted retrospectively, all periods presented include debt issuance costs that were reclassified from other assets.


1


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Statements of Operations [1]
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
 
2012
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
83.8

 
$
78.4

 
$
349.1

 
$
332.1

 
$
351.6

 
$
402.3

Fee income
136.8

 
133.8

 
543.6

 
545.1

 
550.3

 
556.0

Net investment income
205.0

 
209.3

 
834.9

 
830.9

 
789.7

 
827.8

Net realized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
  Total other-than-temporary impairment ("OTTI") losses
(12.5
)
 
(7.0
)
 
(20.8
)
 
(7.7
)
 
(7.0
)
 
(50.8
)
Portion of OTTI losses recognized in
  other comprehensive income (“OCI”)
—

 
(1.4
)
 
(2.0
)
 
(0.4
)
 
(4.8
)
 
22.9

  Net OTTI losses recognized in earnings
(12.5
)
 
(8.4
)
 
(22.8
)
 
(8.1
)
 
(11.8
)
 
(27.9
)
  Net realized gains (losses), excluding OTTI losses
(3.0
)
 
(7.7
)
 
(10.0
)
 
(33.1
)
 
27.8

 
11.1

Net realized gains (losses)
(15.5
)
 
(16.1
)
 
(32.8
)
 
(41.2
)
 
16.0

 
(16.8
)
Gain on debt repurchase
—

 
—

 
—

 
—

 
—

 
11.9

Total revenues
410.1

 
405.4

 
1,694.8

 
1,666.9

 
1,707.6

 
1,781.2

 
 
 
 
 
 
 
 
 
 
 
 
BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Policy benefits
324.1

 
292.0

 
1,186.6

 
1,119.2

 
965.1

 
1,162.4

Policyholder dividends
39.3

 
40.1

 
211.5

 
244.8

 
235.9

 
292.1

Policy acquisition cost amortization
32.0

 
17.1

 
77.8

 
119.6

 
103.1

 
196.1

Interest expense on indebtedness
7.1

 
7.1

 
28.3

 
28.3

 
28.3

 
30.8

Other operating expenses
69.9

 
123.8

 
349.9

 
350.2

 
337.1

 
253.3

Total benefits and expenses
472.4

 
480.1

 
1,854.1

 
1,862.1

 
1,669.5

 
1,934.7

Income (loss) from continuing operations
  before income taxes
(62.3
)
 
(74.7
)
 
(159.3
)
 
(195.2
)
 
38.1

 
(153.5
)
Income tax expense (benefit)
(18.6
)
 
(2.2
)
 
(34.3
)
 
10.5

 
8.5

 
(4.7
)
Income (loss) from continuing operations
(43.7
)
 
(72.5
)
 
(125.0
)
 
(205.7
)
 
29.6

 
(148.8
)
Income (loss) from discontinued operations,
  net of income taxes
0.5

 
(0.5
)
 
(2.0
)
 
(3.5
)
 
(2.9
)
 
(15.6
)
Net income (loss)
(43.2
)
 
(73.0
)
 
(127.0
)
 
(209.2
)
 
26.7

 
(164.4
)
Less: Net income (loss) attributable to noncontrolling interests
(0.4
)
 
1.0

 
6.7

 
4.0

 
0.7

 
0.6

Net income (loss) attributable to
  The Phoenix Companies, Inc.
$
(42.8
)
 
$
(74.0
)
 
$
(133.7
)
 
$
(213.2
)
 
$
26.0

 
$
(165.0
)
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations – basic
$
(7.53
)
 
$
(12.78
)
 
$
(22.90
)
 
$
(36.48
)
 
$
5.04

 
$
(25.90
)
Income (loss) from continuing operations – diluted
$
(7.53
)
 
$
(12.78
)
 
$
(22.90
)
 
$
(36.48
)
 
$
5.01

 
$
(25.90
)
Income (loss) from discontinued operations – basic
$
0.09

 
$
(0.09
)
 
$
(0.35
)
 
$
(0.61
)
 
$
(0.51
)
 
$
(2.70
)
Income (loss) from discontinued operations – diluted
$
0.09

 
$
(0.09
)
 
$
(0.35
)
 
$
(0.61
)
 
$
(0.50
)
 
$
(2.70
)
Net income (loss) attributable to
   The Phoenix Companies, Inc. – basic
$
(7.44
)
 
$
(12.87
)
 
$
(23.25
)
 
$
(37.09
)
 
$
4.53

 
$
(28.60
)
Net income (loss) attributable to
  The Phoenix Companies, Inc. – diluted
$
(7.44
)
 
$
(12.87
)
 
$
(23.25
)
 
$
(37.09
)
 
$
4.51

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

 
5,751

 
5,751

 
5,748

 
5,735

 
5,770

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

 
5,751

 
5,751

 
5,748

 
5,764

 
5,770

———————
[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]
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2015
 
2016
 
March
 
June
 
September
 
December
 
March
REVENUES:
 
 
 
 
 
 
 
 
 
Premiums
$
78.4

 
$
86.6

 
$
86.1

 
$
98.0

 
$
83.8

Fee income
133.8

 
135.2

 
135.1

 
139.5

 
136.8

Net investment income
209.3

 
202.3

 
227.5

 
195.8

 
205.0

Net realized gains (losses):
 
 
 
 
 
 
 
 


  Total other-than-temporary impairment ("OTTI") losses
(7.0
)
 
(0.9
)
 
(4.4
)
 
(8.5
)
 
(12.5
)
Portion of OTTI losses recognized in
  other comprehensive income (“OCI”)
(1.4
)
 
(0.2
)
 
0.4

 
(0.8
)
 
—

  Net OTTI losses recognized in earnings
(8.4
)
 
(1.1
)
 
(4.0
)
 
(9.3
)
 
(12.5
)
  Net realized gains (losses), excluding OTTI losses
(7.7
)
 
(1.0
)
 
(7.6
)
 
6.3

 
(3.0
)
Net realized gains (losses)
(16.1
)
 
(2.1
)
 
(11.6
)
 
(3.0
)
 
(15.5
)
Total revenues
405.4

 
422.0

 
437.1

 
430.3

 
410.1

 
 
 
 
 
 
 
 
 
 
BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
Policy benefits
292.0

 
287.3

 
296.4

 
310.9

 
324.1

Policyholder dividends
40.1

 
55.0

 
60.6

 
55.8

 
39.3

Policy acquisition cost amortization
17.1

 
24.6

 
30.1

 
6.0

 
32.0

Interest expense on indebtedness
7.1

 
7.1

 
7.0

 
7.1

 
7.1

Other operating expenses
123.8

 
82.8

 
70.1

 
73.2

 
69.9

Total benefits and expenses
480.1

 
456.8

 
464.2

 
453.0

 
472.4

Income (loss) from continuing operations before income taxes
(74.7
)
 
(34.8
)
 
(27.1
)
 
(22.7
)
 
(62.3
)
Income tax expense (benefit)
(2.2
)
 
(13.0
)
 
(17.0
)
 
(2.1
)
 
(18.6
)
Income (loss) from continuing operations
(72.5
)
 
(21.8
)
 
(10.1
)
 
(20.6
)
 
(43.7
)
Income (loss) from discontinued operations, net of income taxes
(0.5
)
 
(0.6
)
 
(0.1
)
 
(0.8
)
 
0.5

Net income (loss)
(73.0
)
 
(22.4
)
 
(10.2
)
 
(21.4
)
 
(43.2
)
Less: Comprehensive income (loss) attributable to noncontrolling interests
1.0

 
0.2

 
5.5

 
—

 
(0.4
)
Net income (loss) attributable to
  The Phoenix Companies, Inc.
$
(74.0
)
 
$
(22.6
)
 
$
(15.7
)
 
$
(21.4
)
 
$
(42.8
)
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER SHARE:
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations – basic
$
(12.78
)
 
$
(3.83
)
 
$
(2.71
)
 
$
(3.58
)
 
$
(7.53
)
Income (loss) from continuing operations – diluted
$
(12.78
)
 
$
(3.83
)
 
$
(2.71
)
 
$
(3.58
)
 
$
(7.53
)
Income (loss) from discontinued operations – basic
$
(0.09
)
 
$
(0.10
)
 
$
(0.02
)
 
$
(0.14
)
 
$
0.09

Income (loss) from discontinued operations – diluted
$
(0.09
)
 
$
(0.10
)
 
$
(0.02
)
 
$
(0.14
)
 
$
0.09

Net income (loss) attributable to
  The Phoenix Companies, Inc. – basic
$
(12.87
)
 
$
(3.93
)
 
$
(2.73
)
 
$
(3.72
)
 
$
(7.44
)
Net income (loss) attributable to
  The Phoenix Companies, Inc. – diluted
$
(12.87
)
 
$
(3.93
)
 
$
(2.73
)
 
$
(3.72
)
 
$
(7.44
)
Basic weighted-average common shares outstanding (in thousands)
5,751

 
5,751

 
5,751

 
5,751

 
5,751

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

 
5,751

 
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
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
 
2012
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
10.2

 
$
8.2

 
$
39.9

 
$
30.3

 
$
33.8

 
$
32.8

Fee income
136.8

 
133.8

 
543.6

 
545.1

 
550.3

 
556.0

Net investment income
110.1

 
109.1

 
439.9

 
419.8

 
380.1

 
374.5

Net realized gains (losses)
(10.5
)
 
(11.5
)
 
(33.8
)
 
(54.0
)
 
(0.6
)
 
(26.0
)
Gain on debt repurchase
—

 
—

 
—

 
—

 
—

 
11.9

Total revenues
246.6

 
239.6

 
989.6

 
941.2

 
963.6

 
949.2

BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Policy benefits
209.7

 
176.5

 
739.3

 
680.8

 
500.6

 
668.6

Policyholder dividends
0.1

 
—

 
(0.7
)
 
0.2

 
0.2

 
0.3

Policy acquisition cost amortization
32.0

 
17.1

 
77.8

 
119.6

 
103.1

 
196.1

Interest expense on indebtedness
7.1

 
7.1

 
28.3

 
28.3

 
28.3

 
30.8

Other operating expenses
69.5

 
123.7

 
346.2

 
347.5

 
331.8

 
250.3

Total benefits and expenses
318.4

 
324.4

 
1,190.9

 
1,176.4

 
964.0

 
1,146.1

Income (loss) from continuing operations
  before income taxes, excl. regulatory closed block [1]
(71.8
)
 
(84.8
)
 
(201.3
)
 
(235.2
)
 
(0.4
)
 
(196.9
)
Income (loss) from continuing operations
  before income taxes - regulatory closed block [2]
9.5

 
10.1

 
42.0

 
40.0

 
38.5

 
43.4

Income (loss) from continuing operations
  before income taxes
$
(62.3
)
 
$
(74.7
)
 
$
(159.3
)
 
$
(195.2
)
 
$
38.1

 
$
(153.5
)
———————
[1]
Includes income attributable to noncontrolling interests of $(0.2) million and $0.5 million for the three months ended March 31, 2016 and 2015, respectively, and $3.2 million, $2.0 million, $0.4 million and $0.1 million for the years ended December 31, 2015, 2014, 2013 and 2012, respectively.
[2]
Includes income attributable to noncontrolling interests of $(0.2) million and $0.5 million for the three months ended March 31, 2016 and 2015, respectively, and $3.5 million, $2.0 million, $0.3 million and $0.5 million for the years ended December 31, 2015, 2014, 2013 and 2012, respectively.


4


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Statements of Operations
excluding Closed Block
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2015
 
2016
 
March
 
June
 
September
 
December
 
March
REVENUES:
 
 
 
 
 
 
 
 
 
Premiums
$
8.2

 
$
7.8

 
$
12.1

 
$
11.8

 
$
10.2

Fee income
133.8

 
135.2

 
135.1

 
139.5

 
136.8

Net investment income
109.1

 
107.3

 
114.2

 
109.3

 
110.1

Net realized gains (losses)
(11.5
)
 
(2.7
)
 
(12.7
)
 
(6.9
)
 
(10.5
)
Total revenues
239.6

 
247.6

 
248.7

 
253.7

 
246.6

BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
Policy benefits
176.5

 
178.9

 
183.3

 
200.6

 
209.7

Policyholder dividends
—

 
0.1

 
(0.9
)
 
0.1

 
0.1

Policy acquisition cost amortization
17.1

 
24.6

 
30.1

 
6.0

 
32.0

Interest expense on indebtedness
7.1

 
7.1

 
7.0

 
7.1

 
7.1

Other operating expenses
123.7

 
81.4

 
68.7

 
72.4

 
69.5

Total benefits and expenses
324.4

 
292.1

 
288.2

 
286.2

 
318.4

Income (loss) from continuing operations
  before income taxes, excl. regulatory closed block [1]
(84.8
)
 
(44.5
)
 
(39.5
)
 
(32.5
)
 
(71.8
)
Income (loss) from continuing operations
  before income taxes - regulatory closed block [2]
10.1

 
9.7

 
12.4

 
9.8

 
9.5

Income (loss) from continuing operations before income taxes
$
(74.7
)
 
$
(34.8
)
 
$
(27.1
)
 
$
(22.7
)
 
$
(62.3
)
———————
[1]
Includes income attributable to noncontrolling interests of $(0.2) million for the quarter ended March 31, 2016 and $0.5 million, $0.1 million, $2.8 million and $(0.2) million for the quarters ended March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, respectively.
[2]
Includes income attributable to noncontrolling interests of $(0.2) million for the quarter ended March 31, 2016 and $0.5 million, $0.1 million, $2.7 million and $0.2 million for the quarters ended March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, respectively.


5


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Balance Sheets [1]
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2014
 
2013
 
2012
ASSETS:
 
 
 
 
 
 
 
 
 
Available-for-sale debt securities, at fair value
$
12,799.4

 
$
12,190.7

 
$
12,679.3

 
$
11,731.5

 
$
11,902.7

Available-for-sale equity securities, at fair value
187.5

 
182.0

 
179.5

 
138.0

 
88.8

Short-term investments
55.0

 
164.8

 
149.7

 
361.6

 
699.6

Limited partnerships and other investments
598.8

 
518.7

 
542.8

 
561.3

 
577.6

Policy loans, at unpaid principal balances
2,390.7

 
2,382.5

 
2,352.1

 
2,350.3

 
2,354.7

Derivative instruments
118.5

 
103.5

 
161.3

 
228.8

 
157.4

Fair value investments
77.6

 
165.0

 
235.4

 
215.2

 
201.5

Total investments
16,227.5

 
15,707.2

 
16,300.1

 
15,586.7

 
15,982.3

Cash and cash equivalents
514.4

 
627.3

 
450.0

 
496.4

 
246.4

Accrued investment income
184.3

 
179.2

 
176.7

 
170.4

 
170.3

Reinsurance recoverable
677.7

 
590.7

 
559.1

 
598.1

 
591.3

Deferred policy acquisition costs
874.0

 
941.1

 
848.6

 
947.8

 
898.1

Deferred income taxes, net
76.6

 
105.5

 
34.2

 
70.0

 
39.5

Other assets
320.2

 
354.5

 
303.6

 
312.5

 
323.5

Discontinued operations assets
38.9

 
42.8

 
45.2

 
48.9

 
58.5

Separate account assets
2,413.6

 
2,536.4

 
3,020.7

 
3,402.3

 
3,316.5

Total assets
$
21,327.2

 
$
21,084.7

 
$
21,738.2


$
21,633.1


$
21,626.4

LIABILITIES:
 
 
 
 
 
 
 
 
 
Policy liabilities and accruals
12,524.5

 
12,342.7

 
12,417.6

 
12,416.6

 
12,695.1

Policyholder deposit funds
4,335.9

 
4,333.2

 
3,955.0

 
3,442.6

 
3,055.2

Dividend obligations
838.7

 
716.8

 
916.8

 
705.7

 
956.8

Indebtedness
371.8

 
371.7

 
371.2

 
370.8

 
370.3

Pension and post-employment liabilities
359.2

 
361.6

 
380.0

 
313.1

 
428.1

Other liabilities
317.5

 
210.7

 
289.8

 
337.3

 
239.9

Discontinued operations liabilities
35.7

 
37.8

 
40.5

 
43.4

 
53.1

Separate account liabilities
2,413.6

 
2,536.4

 
3,020.7

 
3,402.3

 
3,316.5

Total liabilities
21,196.9

 
20,910.9

 
21,391.6

 
21,031.8

 
21,115.0

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

 
0.1

 
0.1

 
0.1

 
0.1

Additional paid-in capital
2,633.0

 
2,632.9

 
2,632.8

 
2,633.1

 
2,633.0

Accumulated other comprehensive income (loss)
(261.0
)
 
(266.2
)
 
(234.4
)
 
(185.0
)
 
(243.9
)
Retained earnings (accumulated deficit)
(2,065.5
)
 
(2,022.7
)
 
(1,889.0
)
 
(1,675.8
)
 
(1,701.6
)
Treasury stock, at cost: 0.7 million and 0.7 million shares
(182.9
)
 
(182.9
)
 
(182.9
)
 
(182.9
)
 
(182.9
)
Total The Phoenix Companies, Inc. stockholders' equity
123.7

 
161.2

 
326.6

 
589.5

 
504.7

Noncontrolling interests
6.6

 
12.6

 
20.0

 
11.8

 
6.7

Total stockholders' equity
130.3

 
173.8

 
346.6

 
601.3

 
511.4

Total liabilities and stockholders' equity
$
21,327.2

 
$
21,084.7

 
$
21,738.2

 
$
21,633.1

 
$
21,626.4


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


6


The Phoenix Companies, Inc.
 
 
 
 
 
Closed Block Assets and Liabilities
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2014
ASSETS:
 
 
 
 
 
Available-for-sale debt securities
$
5,539.5

 
$
5,285.4

 
$
5,877.0

Available-for-sale equity securities
89.6

 
90.1

 
91.7

Short-term investments
25.0

 
25.0

 
—

Limited partnerships and other investments
399.1

 
352.7

 
343.4

Policy loans
1,119.4

 
1,121.0

 
1,159.1

Fair value investments
9.5

 
53.1

 
59.8

Total closed block investments
7,182.1

 
6,927.3

 
7,531.0

Cash and cash equivalents
219.7

 
290.8

 
89.6

Accrued investment income
76.2

 
75.5

 
80.7

Reinsurance recoverable
28.8

 
30.0

 
19.1

Deferred income taxes, net
279.0

 
278.7

 
290.3

Other closed block assets
47.8

 
53.7

 
67.4

Total closed block assets
7,833.6

 
7,656.0

 
8,078.1

Policy liabilities and accruals
7,773.9

 
7,816.5

 
8,058.2

Policyholder dividends payable
189.7

 
191.1

 
201.9

Policy dividend obligation
648.8

 
525.5

 
714.8

Other closed block liabilities
144.0

 
46.6

 
48.0

Total closed block liabilities
8,756.4

 
8,579.7

 
9,022.9

Excess of closed block liabilities over closed block assets [1]
922.8

 
923.7

 
944.8

Less: Excess of closed block assets over closed block liabilities attributable to
  noncontrolling interests
(3.0
)
 
(8.1
)
 
(11.8
)
Excess of closed block liabilities over closed block assets attributable to
  noncontrolling interests
$
925.8

 
$
931.8

 
$
956.6

———————
[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
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
974.2

 
$
1,062.6

 
$
1,062.6

 
$
1,089.3

 
$
1,014.3

 
$
1,019.1

Deposits
15.8

 
17.4

 
67.0

 
70.1

 
75.4

 
82.6

Surrenders
(18.5
)
 
(19.4
)
 
(74.8
)
 
(79.1
)
 
(102.8
)
 
(123.4
)
Net flows
(2.7
)
 
(2.0
)
 
(7.8
)
 
(9.0
)
 
(27.4
)
 
(40.8
)
Deaths
(21.2
)
 
(1.3
)
 
(7.9
)
 
(6.9
)
 
(5.7
)
 
(5.2
)
Performance and interest credited
(1.7
)
 
25.8

 
(3.8
)
 
59.9

 
182.5

 
120.2

Fees
(1.7
)
 
(2.0
)
 
(7.5
)
 
(8.5
)
 
(9.1
)
 
(10.3
)
Cost of insurance
(15.4
)
 
(15.6
)
 
(61.4
)
 
(62.2
)
 
(65.3
)
 
(68.7
)
Change in funds on deposit
(42.7
)
 
4.9

 
(88.4
)
 
(26.7
)
 
75.0

 
(4.8
)
Balance, end of period
$
931.5

 
$
1,067.5

 
$
974.2

 
$
1,062.6

 
$
1,089.3

 
$
1,014.3


8


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Variable Universal Life
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2015
 
2016
 
March
 
June
 
September
 
December
 
March
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,062.6

 
$
1,067.5

 
$
1,046.2

 
$
954.4

 
$
974.2

Deposits
17.4

 
17.3

 
15.8

 
16.5

 
15.8

Surrenders
(19.4
)
 
(18.9
)
 
(17.8
)
 
(18.7
)
 
(18.5
)
Net flows
(2.0
)
 
(1.6
)
 
(2.0
)
 
(2.2
)
 
(2.7
)
Deaths
(1.3
)
 
(2.1
)
 
(3.1
)
 
(1.4
)
 
(21.2
)
Performance and interest credited
25.8

 
(0.2
)
 
(69.7
)
 
40.3

 
(1.7
)
Fees
(2.0
)
 
(2.0
)
 
(1.8
)
 
(1.7
)
 
(1.7
)
Cost of insurance
(15.6
)
 
(15.4
)
 
(15.2
)
 
(15.2
)
 
(15.4
)
Change in funds on deposit
4.9

 
(21.3
)
 
(91.8
)
 
19.8

 
(42.7
)
Balance, end of period
$
1,067.5

 
$
1,046.2

 
$
954.4

 
$
974.2

 
$
931.5


9


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Universal Life
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,777.8

 
$
1,781.9

 
$
1,781.9

 
$
1,818.2

 
$
1,837.9

 
$
1,852.8

Deposits
95.3

 
89.8

 
372.7

 
338.7

 
361.5

 
384.0

Surrenders
(9.5
)
 
(18.8
)
 
(55.2
)
 
(62.3
)
 
(64.9
)
 
(73.2
)
Net flows
85.8

 
71.0

 
317.5

 
276.4

 
296.6

 
310.8

Deaths
(10.7
)
 
(15.3
)
 
(45.5
)
 
(34.8
)
 
(35.5
)
 
(33.6
)
Interest credited
17.6

 
17.9

 
71.1

 
71.0

 
75.2

 
75.1

Fees
(5.8
)
 
(5.5
)
 
(23.2
)
 
(21.1
)
 
(22.4
)
 
(23.5
)
Cost of insurance
(79.1
)
 
(81.0
)
 
(324.0
)
 
(327.8
)
 
(333.6
)
 
(343.7
)
Change in funds on deposit
7.8

 
(12.9
)
 
(4.1
)
 
(36.3
)
 
(19.7
)
 
(14.9
)
Balance, end of period
$
1,785.6

 
$
1,769.0

 
$
1,777.8

 
$
1,781.9

 
$
1,818.2

 
$
1,837.9



10


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Universal Life
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2015
 
2016
 
March
 
June
 
September
 
December
 
March
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,781.9

 
$
1,769.0

 
$
1,762.2

 
$
1,769.5

 
$
1,777.8

Deposits
89.8

 
80.9

 
98.3

 
103.7

 
95.3

Surrenders
(18.8
)
 
(10.7
)
 
(12.8
)
 
(12.9
)
 
(9.5
)
Net flows
71.0

 
70.2

 
85.5

 
90.8

 
85.8

Deaths
(15.3
)
 
(8.7
)
 
(9.1
)
 
(12.4
)
 
(10.7
)
Interest credited
17.9

 
17.9

 
17.6

 
17.7

 
17.6

Fees
(5.5
)
 
(5.2
)
 
(6.3
)
 
(6.2
)
 
(5.8
)
Cost of insurance
(81.0
)
 
(81.0
)
 
(80.4
)
 
(81.6
)
 
(79.1
)
Change in funds on deposit
(12.9
)
 
(6.8
)
 
7.3

 
8.3

 
7.8

Balance, end of period
$
1,769.0

 
$
1,762.2

 
$
1,769.5

 
$
1,777.8

 
$
1,785.6



11


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Life Sales
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
 
2012
Life Insurance Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesaler Channel
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
0.1

Universal life/interest sensitive
0.3

 
1.6

 
4.0

 
1.6

 
2.0

 
2.2

Whole life
0.6

 
0.6

 
2.6

 
1.6

 
0.4

 
0.6

Term life
3.4

 
1.8

 
11.9

 
1.6

 
—

 
—

Life insurance annualized premium [1]
4.3

 
4.0

 
18.5

 
4.8

 
2.4

 
2.9

 
 
 
 
 
 
 
 
 
 
 
 
Universal life/interest sensitive
—

 
0.1

 
0.9

 
0.1

 
0.1

 
0.2

Whole life
—

 
—

 
—

 
—

 
2.1

 
5.2

Life insurance single premium
—

 
0.1

 
0.9

 
0.1

 
2.2

 
5.4

 
 
 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
—

 
—

 
0.1

Universal life/interest sensitive
0.3

 
1.7

 
4.9

 
1.7

 
2.1

 
2.4

Whole life
0.6

 
0.6

 
2.6

 
1.6

 
2.5

 
5.8

Term life
3.4

 
1.8

 
11.9

 
1.6

 
—

 
—

Total wholesaler life insurance premium [2]
$
4.3

 
$
4.1

 
$
19.4

 
$
4.9

 
$
4.6

 
$
8.3

———————
[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
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2015
 
2016
 
March
 
June
 
September
 
December
 
March
Life Insurance Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesaler Channel
 
 
 
 
 
 
 
 
 
Variable universal life
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Universal life/interest sensitive
1.6

 
1.1

 
0.5

 
0.8

 
0.3

Whole life
0.6

 
0.7

 
0.8

 
0.5

 
0.6

Term life
1.8

 
3.0

 
3.5

 
3.6

 
3.4

Life insurance annualized premium [1]
4.0

 
4.8

 
4.8

 
4.9

 
4.3

 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
—

 
—

Universal life/interest sensitive
0.1

 
—

 
0.2

 
0.6

 
—

Whole life
—

 
—

 
—

 
—

 
—

Life insurance single premium
0.1

 
—

 
0.2

 
0.6

 
—

 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
—

 
—

Universal life/interest sensitive
1.7

 
1.1

 
0.7

 
1.4

 
0.3

Whole life
0.6

 
0.7

 
0.8

 
0.5

 
0.6

Term life
1.8

 
3.0

 
3.5

 
3.6

 
3.4

Total wholesaler life insurance premium [2]
$
4.1

 
$
4.8

 
$
5.0

 
$
5.5

 
$
4.3

———————
[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
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
5,639.3

 
$
5,674.5

 
$
5,674.5

 
$
5,502.4

 
$
5,042.1

 
$
4,495.4

Deposits
76.4

 
189.4

 
703.9

 
770.9

 
682.9

 
824.2

Surrenders
(141.5
)
 
(159.4
)
 
(624.6
)
 
(658.4
)
 
(597.8
)
 
(529.9
)
Net flows
(65.1
)
 
30.0

 
79.3

 
112.5

 
85.1

 
294.3

Deaths
(24.5
)
 
(24.5
)
 
(83.9
)
 
(81.8
)
 
(79.7
)
 
(73.3
)
Performance and interest credited
5.1

 
70.2

 
44.0

 
213.5

 
525.4

 
386.4

Fees
(18.3
)
 
(18.5
)
 
(74.6
)
 
(72.1
)
 
(70.5
)
 
(60.7
)
Change in funds on deposit
(102.8
)
 
57.2

 
(35.2
)
 
172.1

 
460.3

 
546.7

Balance, end of period
$
5,536.5

 
$
5,731.7

 
$
5,639.3

 
$
5,674.5

 
$
5,502.4

 
$
5,042.1



14


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Total Annuity
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2015
 
2016
 
March
 
June
 
September
 
December
 
March
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
5,674.5

 
$
5,731.7

 
$
5,772.7

 
$
5,636.9

 
$
5,639.3

Deposits
189.4

 
221.4

 
185.2

 
107.9

 
76.4

Surrenders
(159.4
)
 
(160.2
)
 
(155.9
)
 
(149.1
)
 
(141.5
)
Net flows
30.0

 
61.2

 
29.3

 
(41.2
)
 
(65.1
)
Deaths
(24.5
)
 
(18.9
)
 
(20.5
)
 
(20.0
)
 
(24.5
)
Performance and interest credited
70.2

 
17.1

 
(125.2
)
 
81.9

 
5.1

Fees
(18.5
)
 
(18.4
)
 
(19.4
)
 
(18.3
)
 
(18.3
)
Change in funds on deposit
57.2

 
41.0

 
(135.8
)
 
2.4

 
(102.8
)
Balance, end of period
$
5,731.7

 
$
5,772.7

 
$
5,636.9

 
$
5,639.3

 
$
5,536.5



15


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
Fixed Indexed Annuity
 
 
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
3,231.5

 
$
2,813.2

 
$
2,813.2

 
$
2,259.9

 
$
1,800.5

 
$
1,139.4

Deposits
72.0

 
176.7

 
670.5

 
713.7

 
602.2

 
741.2

Surrenders
(59.6
)
 
(50.1
)
 
(218.1
)
 
(160.7
)
 
(135.2
)
 
(75.5
)
Net flows
12.4

 
126.6

 
452.4

 
553.0

 
467.0

 
665.7

Deaths
(16.6
)
 
(11.3
)
 
(45.3
)
 
(41.9
)
 
(30.9
)
 
(24.3
)
Interest credited
3.0

 
14.3

 
42.3

 
58.9

 
41.8

 
19.3

Bonus
(0.2
)
 
4.2

 
8.9

 
13.6

 
6.0

 
13.2

Fees
(11.0
)
 
(9.2
)
 
(40.0
)
 
(30.3
)
 
(24.5
)
 
(12.8
)
Change in funds on deposit
(12.4
)
 
124.6

 
418.3

 
553.3

 
459.4

 
661.1

Balance, end of period
$
3,219.1

 
$
2,937.8

 
$
3,231.5

 
$
2,813.2

 
$
2,259.9

 
$
1,800.5



16


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Fixed Indexed Annuity
 
 
 
 
 
 
 
 
 
Funds on Deposit
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2015
 
2016
 
March
 
June
 
September
 
December
 
March
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
2,813.2

 
$
2,937.8

 
$
3,086.4

 
$
3,199.1

 
$
3,231.5

Deposits
176.7

 
208.3

 
181.7

 
103.8

 
72.0

Surrenders
(50.1
)
 
(55.6
)
 
(55.5
)
 
(56.9
)
 
(59.6
)
Net flows
126.6

 
152.7

 
126.2

 
46.9

 
12.4

Deaths
(11.3
)
 
(10.7
)
 
(11.6
)
 
(11.7
)
 
(16.6
)
Interest credited
14.3

 
13.2

 
8.1

 
6.7

 
3.0

Bonus
4.2

 
3.0

 
1.2

 
0.5

 
(0.2
)
Fees
(9.2
)
 
(9.6
)
 
(11.2
)
 
(10.0
)
 
(11.0
)
Change in funds on deposit
124.6

 
148.6

 
112.7

 
32.4

 
(12.4
)
Balance, end of period
$
2,937.8

 
$
3,086.4

 
$
3,199.1

 
$
3,231.5

 
$
3,219.1



17


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Deferred Policy Acquisition Costs
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
Composition of Deferred Policy Acquisition Costs by Product:
 
 
 
 
 
 
 
 
 
Variable universal life
$
110.9

 
$
116.9

 
$
117.9

 
$
120.3

 
$
129.3

Universal life
101.0

 
118.7

 
140.4

 
129.0

 
214.9

Variable annuities
59.0

 
60.4

 
61.2

 
62.4

 
84.1

Fixed annuities
269.4

 
224.1

 
286.6

 
220.9

 
194.3

Traditional life
333.7

 
316.4

 
335.0

 
316.0

 
325.2

Total deferred policy acquisition costs
$
874.0

 
$
836.5

 
$
941.1

 
$
848.6

 
$
947.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Deferred Policy Acquisition Costs:
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
941.1

 
$
848.6

 
$
848.6

 
$
947.8

 
$
898.1

Policy acquisition costs deferred
12.6

 
21.8

 
87.4

 
72.9

 
58.4

Costs amortized to expenses:
 
 
 
 
 
 
 
 
 
     Recurring costs
(33.9
)
 
(15.1
)
 
(86.6
)
 
(129.5
)
 
(117.9
)
     Assumption unlocking
—

 
(6.6
)
 
9.7

 
(4.4
)
 
25.4

     Realized investment gains (losses)
1.9

 
4.6

 
(0.9
)
 
14.3

 
(10.6
)
Offsets to net unrealized investment gains or losses
     included in AOCI
(47.7
)
 
(16.8
)
 
82.9

 
(52.5
)
 
94.4

Balance, end of period
$
874.0

 
$
836.5

 
$
941.1

 
$
848.6

 
$
947.8



18


The Phoenix Companies, Inc.
 
 
 
 
 
General Account Investment Portfolio Summary
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale Debt Securities Ratings
 
 
 
 
 
 
March 31, 2016
 
 
 
Fair Value
 
Amortized Cost
 
 
AAA/AA/A
$
7,437.1

 
$
6,999.0

 
 
BBB
4,447.8

 
4,319.4

 
 
  Total investment grade
11,884.9

 
11,318.4

 
 
BB
590.6

 
624.4

 
 
B
222.9

 
256.8

 
 
CCC and lower
80.2

 
87.6

 
 
In or near default
20.8

 
18.9

 
 
  Total available-for-sale debt securities
$
12,799.4

 
$
12,306.1

 
 
 
 
 
 
 
 
% Investment Grade
92.9
%
 
92.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized Gains (Losses) on Debt and Equity Securities
 
 
 
 
 
Three months ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
Outside Closed Block
 
Closed Block
Sources of Changes in Net Unrealized Gains (Losses):
 
 
 
 
 
Debt securities
$
296.2

 
$
172.9

 
$
123.3

Equity securities
(3.5
)
 
(1.5
)
 
(2.0
)
Other investments
(0.5
)
 
(0.3
)
 
(0.2
)
Net unrealized investment gains (losses)
$
292.2

 
$
171.1

 
$
121.1

 
 
 
 
 
 
Net unrealized investment gains (losses)
292.2

 
171.1

 
121.1

Applicable to closed block policyholder dividend obligation
120.8

 
—

 
120.8

Applicable to deferred policy acquisition cost
47.7

 
47.7

 
—

Applicable to other actuarial offsets
73.5

 
73.2

 
0.3

Applicable to deferred income tax expense (benefit)
47.8

 
47.8

 
—

Offsets to net unrealized investment gains (losses)
289.8

 
168.7

 
121.1

Net unrealized gains (losses) included in OCI
$
2.4

 
$
2.4

 
$
—



19


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
General Account GAAP Net Investment Income Yields
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
Sources of Net Investment Income:
 
 
 
 
 
 
 
 
 
Debt securities [1]
$
144.2

 
$
148.8

 
$
595.1

 
$
581.6

 
$
565.0

Equity securities
2.6

 
1.9

 
6.9

 
9.2

 
7.2

Limited partnerships and other investments
22.3

 
13.2

 
58.1

 
65.3

 
58.3

Policy loans
42.4

 
41.7

 
170.7

 
167.4

 
160.0

Fair value investments
(1.2
)
 
11.1

 
30.3

 
25.4

 
14.1

Total investment income
210.3

 
216.7

 
861.1

 
848.9

 
804.6

Less: Discontinued operations
0.3

 
0.3

 
1.4

 
1.1

 
1.3

Less: Investment expenses
5.0

 
7.1

 
24.8

 
16.9

 
13.6

Net investment income
$
205.0

 
$
209.3

 
$
834.9

 
$
830.9

 
$
789.7

Amounts applicable to closed block
$
94.9

 
$
100.2

 
$
395.0

 
$
411.1

 
$
409.6

 
 
 
 
 
 
 
 
 
 
Annualized Yields:
 
 
 
 
 
 
 
 
 
Debt securities
4.7
 %
 
4.9
%
 
4.9
%
 
4.9
%
 
4.8
%
Equity securities
6.6
 %
 
4.9
%
 
4.5
%
 
6.7
%
 
7.5
%
Limited partnerships and other investments
16.0
 %
 
9.7
%
 
10.9
%
 
11.8
%
 
11.2
%
Policy loans
7.1
 %
 
7.1
%
 
7.2
%
 
7.1
%
 
6.8
%
Fair value investments
-8.8
 %
 
39.2
%
 
35.4
%
 
20.1
%
 
10.9
%
Total investment yield
5.4
 %
 
5.6
%
 
5.6
%
 
5.6
%
 
5.4
%
Investment expenses and discontinued operations
0.1
 %
 
0.1
%
 
0.2
%
 
0.1
%
 
0.1
%
Total net investment income yields
5.3
 %
 
5.4
%
 
5.4
%
 
5.5
%
 
5.3
%
———————
[1]
Includes net investment income on short-term investments.


20


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Net Realized Gains (Losses)
 
 
 
 
 
 
 
 
 
First Quarter 2016 (unaudited)
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
2016
 
2015
 
2015
 
2014
 
2013
Sources and Types of Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
 
Total other-than-temporary debt impairments
$
(12.5
)
 
$
(0.1
)
 
$
(12.0
)
 
$
(5.6
)
 
$
(7.0
)
Portion of losses recognized in OCI
—

 
(1.4
)
 
(2.0
)
 
(0.4
)
 
(4.8
)
Net debt impairments recognized in earnings
$
(12.5
)
 
$
(1.5
)
 
$
(14.0
)
 
$
(6.0
)
 
$
(11.8
)
Debt security impairments:
 
 
 
 
 
 
 
 
 
  U.S. government and agency
$
—

 
$
—

 
$
—

 
$
—

 
$
—

  State and political subdivision
(3.0
)
 
—

 
—

 
—

 
—

  Foreign government
—

 
—

 
—

 
—

 
—

  Corporate
(9.5
)
 
(1.3
)
 
(13.8
)
 
(6.0
)
 
(3.8
)
  CMBS
—

 
—

 
—

 
—

 
(2.7
)
  RMBS
—

 
(0.2
)
 
(0.2
)
 
—

 
(4.3
)
  CDO/CLO
—

 
—

 
—

 
—

 
(1.0
)
  Other ABS
—

 
—

 
—

 
—

 
—

Net debt security impairments
(12.5
)
 
(1.5
)
 
(14.0
)
 
(6.0
)
 
(11.8
)
Equity security impairments
—

 
(6.9
)
 
(8.8
)
 
(2.1
)
 
—

Limited partnerships and other investment impairments
—

 
—

 
—

 
—

 
—

Impairment losses
(12.5
)
 
(8.4
)
 
(22.8
)
 
(8.1
)
 
(11.8
)
Debt security transaction gains
3.4

 
8.5

 
42.5

 
41.8

 
45.3

Debt security transaction losses
(0.2
)
 
(0.9
)
 
(5.0
)
 
(17.7
)
 
(2.2
)
Equity security transaction gains
—

 
—

 
1.7

 
10.4

 
4.2

Equity security transaction losses
—

 
—

 
—

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

 
—

 
—

 
—

 
0.8

Limited partnerships and other investment transaction losses
—

 
—

 
(7.1
)
 
(0.7
)
 
(4.6
)
Net transaction gains (losses)
3.2

 
7.6

 
32.1

 
32.8

 
39.7

Derivative instruments
1.4

 
(2.3
)
 
(31.1
)
 
(20.8
)
 
(27.7
)
Embedded derivatives [1]
(8.4
)
 
(10.3
)
 
(3.1
)
 
(45.9
)
 
12.2

Assets valued at fair value
0.8

 
(2.7
)
 
(7.9
)
 
0.8

 
3.6

Net realized gains (losses), excluding impairment losses
(3.0
)
 
(7.7
)
 
(10.0
)
 
(33.1
)
 
27.8

Net realized gains (losses), including impairment losses
$
(15.5
)
 
$
(16.1
)
 
$
(32.8
)
 
$
(41.2
)
 
$
16.0

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


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