EX-99.1 2 pnx_ex991.htm FINANCIAL SUPPLEMENT pnx_ex991.htm
Exhibit 99.1
 
 
 
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:
Credit Suisse Securities (USA)
Tom Gallagher
      
Dowling & Partners
Paul Goulekas / Sean Rourke
  
The Phoenix Companies, Inc. C/O BNY Mellon Shareowner Services
JP Morgan
Jimmy Bhullar
  
P.O. Box 358015, Pittsburgh, PA 15258
Langen McAlenney
Robert Glasspiegel
  
Toll-free: 1-800-490-4258   Int'l: 201-680-6823
Raymond James & Associates
Steven Schwartz
  
TDD: 800-231-5469, Int'l TDD: 201-680-6610
UBS
Andrew Kligerman
  
E-mail: shrrelations@bnymellon.com
     
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, and other measures that are derived from or incorporate operating income, are not substitutes for net 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 the 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
March 2011 (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 Sales
12
Annuity Funds Under Management and Annuity 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
First Quarter 2011 (unaudited)
(amount in millions, except per share data)
 
For the Period Ended:   March     December 31,  
   
2011
    
2010
    
2009
    
2008
    
2007
  
Balance Sheet Information
                              
General account invested assets
   $ 14,500.5     $ 14,288.7     $ 13,736.9     $ 13,595.7     $ 15,706.4  
Separate account assets
     4,448.9       4,416.8       4,418.1       3,860.1       5,781.2  
Total assets
     21,272.1       21,076.3       24,586.2       25,813.4       30,501.2  
Indebtedness
     427.7       427.7       428.0       458.0       627.7  
Total stockholders' equity
     1,146.5       1,155.5       1,131.1       865.1       2,279.0  
Total stockholders' equity, excluding other accumulated OCI and FIN 46-R
   $ 1,283.9     $ 1,289.3     $ 1,302.4     $ 1,665.7     $ 2,470.0  
Average equity, excluding other accumulated OCI, FIN 46-R and discontinued operations  (1)
   $ 1,281.9     $ 1,328.3     $ 1,427.0     $ 1,808.3     $ 2,381.8  
Total operating return on equity  (1)
     5.16 %     -0.72 %     -9.98 %     -4.51 %     5.38 %
Average tangible common equity  (2)
   $ 1,281.7     $ 1,327.2     $ 1,423.6     $ 1,702.2     $ 1,703.1  
Total operating return on average tangible equity  (2)
     5.16 %     -0.72 %     -10.00 %     -4.79 %     7.94 %
Debt to total capitalization  (3)
     25.0 %     24.9 %     24.7 %     21.6 %     20.3 %
Book value per share
   $ 9.86     $ 9.95     $ 9.78     $ 7.56     $ 19.94  
Book value per share, excluding other accumulated OCI
   $ 11.04     $ 11.10     $ 11.26     $ 14.06     $ 21.15  
Book value per share, excluding other accumulated OCI and FIN 46-R
   $ 11.04     $ 11.10     $ 11.26     $ 14.56     $ 21.61  
Period-end common shares outstanding
     116.3       116.1       115.7       114.4       114.3  
                                         
                                         
Indebtedness:
                                        
Surplus notes
   $ 174.1     $ 174.1     $ 174.1     $ 174.1     $ 174.0  
Senior unsecured bonds - due 2008
     ---       ---       ---       ---       153.7  
Senior unsecured bonds - due 2032
     253.6       253.6       253.9       283.9       300.0  
Total indebtedness
   $ 427.7     $ 427.7     $ 428.0     $ 458.0     $ 627.7  
                                             
                                         
Statutory Financial Data for Phoenix Life Insurance Company  (4)
                                        
Capital, surplus and surplus notes
   $ 687.5     $ 658.5     $ 517.2     $ 758.9     $ 848.2  
Asset valuation reserve (AVR)
   $ 109.8       104.7       57.0       94.4       192.5  
Capital, surplus, surplus notes and AVR
   $ 797.3     $ 763.2     $ 574.2     $ 853.3     $ 1,040.7  
Policyholder dividend liability
   $ 257.6     $ 256.6     $ 312.6     $ 324.2     $ 355.6  
Interest maintenance reserve
   $ (57.6 )   $ (58.0 )   $ (45.8 )   $ (44.2 )   $ (44.4 )
Statutory gain from operations
   $ 29.6     $ 147.8     $ 29.2     $ 53.4     $ 115.2  
Statutory net income (loss)
   $ 22.7     $ 139.8     $ (59.9 )   $ (82.3 )   $ 80.0  
                                         
 
(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)
This debt to total capitalization is based on total stockholders' equity, excluding other accumulated OCI and FIN 46-R.
   
(4)
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.  March 2011 amounts are preliminary.
 
 
1
 
 
The Phoenix Companies, Inc.
Consolidated Income Statement
First Quarter 2011 (unaudited)
(amount in millions, except per share data)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
Consolidated Income Statement
                              
                               
Premiums
   $ 132.5     $ 620.0     $ 684.2     $ 765.9     $ 798.3  
Fee income
     153.8       629.5       648.1       600.9       499.9  
Net investment income
     201.3       848.8       785.8       906.4       1,035.5  
Total revenue
     487.6       2,098.3       2,118.1       2,273.2       2,333.7  
Policy benefits and increase in policy liabilities
     282.2       1,188.6       1,279.9       1,362.3       1,312.4  
Policyholder dividends
     65.3       300.4       267.3       327.7       375.6  
Policy acquisition cost amortization
     62.5       300.4       266.5       431.7       192.7  
Interest expense on indebtedness
     7.9       31.7       33.1       36.7       44.2  
Operating expenses
     59.3       291.4       298.5       274.4       261.1  
Total benefits and expenses
     477.2       2,112.5       2,145.3       2,432.8       2,186.0  
Pre-tax operating income (loss)
     10.4       (14.2 )     (27.2 )     (159.6 )     147.7  
Income tax expense (benefit)
     (4.4 )     (4.6 )     115.5       (75.7 )     27.1  
Operating income (loss)
     14.8       (9.6 )     (142.7 )     (83.9 )     120.6  
Net realized investment gains (losses)
     (16.2 )     (9.9 )     (102.2 )     (295.8 )     (6.0 )
Net Tax, DAC and PDO impacts
     (3.2 )     (5.1 )     48.9       207.1       (2.3 )
Earnings on CDOs consolidated under FIN-46R
     ---       ---       ---       (4.2 )     1.0  
Discontinued operations
     (1.5 )     12.0       (123.0 )     (549.2 )     4.3  
Net income (loss)
   $ (6.1 )   $ (12.6 )   $ (319.0 )   $ (726.0 )   $ 117.6  
                                         
                                         
Earnings Per Share
                                        
Basic
                                        
Weighted-average shares outstanding
     116.3       116.3       116.5       114.4       114.1  
Total operating income (loss) per share
   $ 0.13     $ (0.08 )   $ (1.23 )   $ (0.73 )   $ 1.06  
Net income (loss) per share
   $ (0.05 )   $ (0.11 )   $ (2.74 )   $ (6.35 )   $ 1.03  
                                         
Diluted
                                        
Weighted-average shares outstanding and dilutive potential common shares
     116.3       116.3       116.5       114.4       116.0  
Total operating income (loss) per share
   $ 0.13     $ (0.08 )   $ (1.23 )   $ (0.73 )   $ 1.04  
Net income (loss) per share
   $ (0.05 )   $ (0.11 )   $ (2.74 )   $ (6.35 )   $ 1.01  
                                         

 
2
 
 
The Phoenix Companies, Inc.
Consolidated Income Statement
First Quarter 2011 (unaudited)
(amount in millions, except per share data)

Quarters ended
 
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
Consolidated Income Statement
                              
                               
Premiums
   $ 151.7     $ 155.5     $ 154.0     $ 158.7     $ 132.5  
Fee income
     162.5       155.6       158.0       153.4       153.8  
Net investment income
     204.9       216.1       195.5       232.3       201.3  
Total revenue
     519.1       527.2       507.5       544.4       487.6  
Policy benefits and increase in policy liabilities
     288.6       317.2       288.7       294.1       282.2  
Policyholder dividends
     68.3       80.4       65.4       86.3       65.3  
Policy acquisition cost amortization
     67.0       67.4       99.9       66.1       62.5  
Interest expense on indebtedness
     8.0       7.9       7.9       7.9       7.9  
Operating expenses
     80.2       74.9       64.0       72.2       59.3  
Total benefits and expenses
     512.1       547.8       525.9       526.6       477.2  
Pre-tax operating income (loss)
     7.0       (20.6 )     (18.4 )     17.8       10.4  
Income tax expense (benefit)
     (2.7 )     (0.6 )     (11.3 )     10.0       (4.4 )
Operating income (loss)
     9.7       (20.0 )     (7.1 )     7.8       14.8  
Net realized investment gains (losses)
     3.0       30.5       (14.1 )     (29.3 )     (16.2 )
Net Tax, DAC and PDO impacts
     1.2       (15.2 )     (3.9 )     12.8       (3.2 )
Discontinued operations
     (0.2 )     15.0       0.1       (2.9 )     (1.5 )
Net income (loss)
   $ 13.7     $ 10.3     $ (25.0 )   $ (11.6 )   $ (6.1 )
                                         
                                         
Earnings Per Share
                                        
Basic
                                        
Weighted-average shares outstanding
     116.1       116.2       116.3       116.3       116.3  
Total operating income (loss) per share
   $ 0.08     $ (0.17 )   $ (0.06 )   $ 0.07     $ 0.13  
Net income (loss) per share
   $ 0.12     $ 0.09     $ (0.22 )   $ (0.10 )   $ (0.05 )
                                         
Diluted
                                        
Weighted-average shares outstanding and
                                        
dilutive potential common shares
     116.6       116.2       116.3       116.3       116.3  
Total operating income (loss) per share
   $ 0.08     $ (0.17 )   $ (0.06 )   $ 0.07     $ 0.13  
Net income (loss) per share
   $ 0.12     $ 0.09     $ (0.22 )   $ (0.10 )   $ (0.05 )
                                         

 
3
 
 
The Phoenix Companies, Inc.
Alternate Operating Income Statement
Details excluding Regulatory Closed Block
First Quarter 2011 (unaudited)
($ in millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
                               
Premiums
   $ 7.8     $ 29.8     $ 37.1     $ 46.6     $ 52.7  
Cost of insurance charges
     116.1       475.5       491.2       434.7       336.0  
Other fees
     33.6       136.1       130.0       151.1       148.2  
Surrender charges
     4.1       17.9       26.9       15.1       15.7  
Net investment income on assets backing liabilities
     80.6       313.5       330.2       358.8       385.1  
Net investment income on assets backing surplus
     3.1       32.9       (2.2 )     24.5       78.8  
Total revenue
     245.3       1,005.7       1,013.2       1,030.8       1,016.5  
                                         
Benefits paid
     114.7       517.0       806.1       463.1       436.7  
Increases (decreases) in reserves
     (24.6 )     (177.1 )     (434.3 )     (100.4 )     (149.1 )
Interest on policyholder funds
     29.0       124.2       136.2       152.0       155.6  
Policyholder dividends
     0.1       0.3       0.4       0.6       0.7  
Interest expense on indebtedness
     7.9       31.7       33.1       36.7       44.2  
Commissions and sales incentives, net of deferrals
     6.1       26.5       21.9       39.7       33.6  
Operating expenses, net of deferrals
     49.9       233.2       269.5       225.9       219.6  
Reinsurance allowance, net of deferrals
     (1.1 )     5.8       (5.7 )     (13.0 )     (13.4 )
Premium taxes
     2.9       15.4       9.4       16.8       15.1  
Policy acquisition cost amortization
     62.5       300.4       266.5       431.7       192.7  
Total benefits and expenses
     247.4       1,077.4       1,103.1       1,253.1       935.7  
Pre-tax operating income (loss) excl. regulatory closed block
     (2.1 )     (71.7 )     (89.9 )     (222.3 )     80.8  
Pre-tax operating income - regulatory closed block
     12.5       57.5       62.7       62.7       67.0  
Total pre-tax operating income (loss)
     10.4       (14.2 )     (27.2 )     (159.6 )     147.8  
Income tax expense (benefit)
     (4.4 )     (4.6 )     115.5       (75.7 )     27.1  
Total operating income (loss)
   $ 14.8     $ (9.6 )   $ (142.7 )   $ (83.9 )   $ 120.7  
                                         

 
4
 
 
The Phoenix Companies, Inc.
Alternate Operating Income Statement
Details excluding Regulatory Closed Block
First Quarter 2011 (unaudited)
($ in millions)

Quarters ended
 
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
                               
Premiums
   $ 7.0     $ 6.6     $ 8.1     $ 8.1     $ 7.8  
Cost of insurance charges
     124.4       119.9       117.6       113.6       116.1  
Other fees
     33.1       30.9       36.1       36.0       33.6  
Surrender charges
     5.0       4.8       4.3       3.8       4.1  
Net investment income on assets backing liabilities
     76.8       74.9       74.8       87.0       80.6  
Net investment income on assets backing surplus
     5.7       9.5       5.8       11.9       3.1  
Total revenue
     252.0       246.6       246.7       260.4       245.3  
                                         
Benefits paid
     129.5       138.7       128.4       120.4       114.7  
Increases (decreases) in reserves
     (52.0 )     (38.0 )     (48.4 )     (38.7 )     (24.6 )
Interest on policyholder funds
     32.5       32.1       30.0       29.6       29.0  
Policyholder dividends
     0.1       0.1       0.1       ---       0.1  
Interest expense on indebtedness
     8.0       7.9       7.9       7.9       7.9  
Commissions and sales incentives, net of deferrals
     6.1       7.0       6.2       7.1       6.1  
Operating expenses, net of deferrals
     62.6       54.4       54.6       61.7       49.9  
Reinsurance allowance, net of deferrals
     (1.3 )     9.4       (1.1 )     (1.2 )     (1.1 )
Premium taxes
     6.9       2.6       1.9       4.0       2.9  
Policy acquisition cost amortization
     67.0       67.4       99.9       66.1       62.5  
Total benefits and expenses
     259.4       281.6       279.5       256.9       247.4  
Pre-tax operating income (loss) excl. regulatory closed block
     (7.4 )     (35.0 )     (32.8 )     3.5       (2.1 )
Pre-tax operating income - regulatory closed block
     14.4       14.4       14.4       14.3       12.5  
Total pre-tax operating income (loss)
     7.0       (20.6 )     (18.4 )     17.8       10.4  
Income tax expense (benefit)
     (2.7 )     (0.6 )     (11.3 )     10.0       (4.4 )
Total operating income (loss)
   $ 9.7     $ (20.0 )   $ (7.1 )   $ 7.8     $ 14.8  
                                         

 
5
 
 
The Phoenix Companies, Inc.
Closed Block Assets and Liabilities
First Quarter 2011 (unaudited)
($ in millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
                               
Debt securities
   $ 6,384.6     $ 6,385.4     $ 6,305.1     $ 6,011.4     $ 6,919.4  
Equity securities
     21.6       19.6       6.7       9.0       134.0  
Mortgage loans
     3.7       4.1       6.2       8.9       12.7  
Venture capital partnerships
     215.3       210.0       180.2       188.5       157.3  
Policy loans
     1,315.1       1,340.8       1,378.5       1,377.0       1,357.1  
Other investments
     122.7       125.5       142.8       153.3       123.7  
Fair value options investments
     11.7       16.0       ---       ---       ---  
Total closed block investments
     8,074.7       8,101.4       8,019.5       7,748.1       8,704.2  
Cash and cash equivalents
     11.4       7.1       33.3       57.2       67.8  
Accrued investment income
     96.5       97.2       105.9       113.0       112.1  
Receivables
     60.1       62.5       53.3       49.5       44.7  
Deferred income taxes
     232.3       236.2       270.3       418.3       329.3  
Other closed block assets
     25.3       17.8       22.6       338.0       10.0  
Total closed block assets
     8,500.3       8,522.2       8,504.9       8,724.1       9,268.1  
Policy liabilities and accruals
     8,835.8       8,903.5       9,246.5       9,742.7       9,811.2  
Policyholder dividends payable
     264.3       263.3       297.8       311.1       332.8  
Policyholder dividend obligation
     355.8       339.0       ---       ---       246.0  
Other closed block liabilities
     93.5       73.6       57.9       72.0       49.3  
Total closed block liabilities
     9,549.4       9,579.4       9,602.2       10,125.8       10,439.3  
Excess of closed block liabilities over closed block assets
   $ 1,049.1     $ 1,057.2     $ 1,097.3     $ 1,401.7     $ 1,171.2  
                                         
 
 
6
 
 
The Phoenix Companies, Inc.
Closed Block Assets and Liabilities
First Quarter 2011 (unaudited)
($ in millions)
 
   
2010
     2011  
   
March
    
June
    
September
    
December
    
March
  
                               
Debt securities
   $ 6,371.5     $ 6,480.7     $ 6,581.3     $ 6,385.4     $ 6,384.6  
Equity securities
     9.9       12.3       19.4       19.6       21.6  
Mortgage loans
     5.7       5.2       4.5       4.1       3.7  
Venture capital partnerships
     191.2       197.9       199.4       210.0       215.3  
Policy loans
     1,380.0       1,371.0       1,349.1       1,340.8       1,315.1  
Other investments
     141.5       148.3       122.6       125.5       122.7  
Fair value options investments
     ---       ---       15.1       16.0       11.7  
Total closed block investments
     8,099.8       8,215.4       8,291.4       8,101.4       8,074.7  
Cash and cash equivalents
     24.6       22.6       27.5       7.1       11.4  
Accrued investment income
     107.4       102.1       102.1       97.2       96.5  
Receivables
     55.5       61.5       72.5       62.5       60.1  
Deferred income taxes
     264.1       261.1       246.9       236.2       232.3  
Other closed block assets
     17.1       37.0       14.1       17.8       25.3  
Total closed block assets
     8,568.5       8,699.7       8,754.5       8,522.2       8,500.3  
Policy liabilities and accruals
     9,167.0       9,077.0       8,975.2       8,903.5       8,835.8  
Policyholder dividends payable
     299.2       296.3       294.8       263.3       264.3  
Policyholder dividend obligation
     114.8       248.5       457.3       339.0       355.8  
Other closed block liabilities
     71.5       152.9       93.4       73.6       93.5  
Total closed block liabilities
     9,652.5       9,774.7       9,820.7       9,579.4       9,549.4  
Excess of closed block liabilities over closed block assets
   $ 1,084.0     $ 1,075.0     $ 1,066.2     $ 1,057.2     $ 1,049.1  
                                         

 
7
 
 
The Phoenix Companies, Inc.
Variable Universal Life Funds Under Management
First Quarter 2011 (unaudited)
($ in millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
                               
Funds Under Management (FUM)
                              
Deposits
   $ 24.5     $ 108.5     $ 115.8     $ 142.2     $ 153.8  
Surrenders
     (44.7 )     (175.6 )     (158.8 )     (105.4 )     (102.1 )
     Net flows
     (20.2 )     (67.1 )     (43.0 )     36.8       51.7  
Deaths
     (2.0 )     (4.3 )     (2.6 )     (4.6 )     (12.0 )
Interest credited
     52.9       143.6       244.3       (486.1 )     121.5  
Fees
     (3.1 )     (13.1 )     (15.3 )     (22.7 )     (26.1 )
Cost of insurance
     (18.4 )     (76.0 )     (80.0 )     (78.6 )     (75.2 )
     Change in FUM
     9.2       (16.9 )     103.4       (555.2 )     59.9  
Beginning balance
     1,151.6       1,168.5       1,065.1       1,620.3       1,560.4  
Ending fund balance
   $ 1,160.8     $ 1,151.6     $ 1,168.5     $ 1,065.1     $ 1,620.3  
                                         
Gross life insurance in force
   $ 15,498.0     $ 16,063.0     $ 22,780.0     $ 24,934.5     $ 24,714.2  
   Less Philadelphia Financial Group (PFG) gross life insurance in force
     ---       ---       4,758.1       4,665.3       4,259.4  
Gross life insurance in force (1)
   $ 15,498.0     $ 16,063.0     $ 18,021.9     $ 20,269.2     $ 20,454.8  
                                         
 
(1)  Gross life insurance in force for all periods have been reduced to reflect the sale of Philadelphia Financial Group (PFG) in June 2010.

 
8
 
 
The Phoenix Companies, Inc.
Variable Universal Life Funds Under Management
First Quarter 2011 (unaudited)
($ in millions)
 
Quarters ended
 
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
                               
Funds Under Management (FUM)
                              
Deposits
   $ 28.7     $ 27.6     $ 26.2     $ 26.0     $ 24.5  
Surrenders
     (46.3 )     (42.7 )     (39.7 )     (46.9 )     (44.7 )
     Net flows
     (17.6 )     (15.1 )     (13.5 )     (20.9 )     (20.2 )
Deaths
     (2.1 )     (0.4 )     (0.9 )     (0.9 )     (2.0 )
Interest credited
     41.6       (81.5 )     97.9       85.6       52.9  
Fees
     (3.3 )     (3.4 )     (3.1 )     (3.3 )     (3.1 )
Cost of insurance
     (19.2 )     (19.1 )     (19.0 )     (18.7 )     (18.4 )
     Change in FUM
     (0.6 )     (119.5 )     61.4       41.8       9.2  
Beginning balance
     1,168.5       1,167.9       1,048.4       1,109.8       1,151.6  
Ending fund balance
   $ 1,167.9     $ 1,048.4     $ 1,109.8     $ 1,151.6     $ 1,160.8  
                                         
Gross life insurance in force
   $ 22,483.0     $ 17,183.0     $ 16,589.0     $ 16,063.0     $ 15,498.0  
   Less Philadelphia Financial Group (PFG) gross life insurance in force
     4,738.3       ---       ---       ---       ---  
Gross life insurance in force (1)
   $ 17,744.7     $ 17,183.0     $ 16,589.0     $ 16,063.0     $ 15,498.0  
                                         
 
(1)  Gross life insurance in force for all periods have been reduced to reflect the sale of Philadelphia Financial Group (PFG) in June 2010.

 
9
 
 
The Phoenix Companies, Inc.
Universal Life / Interest Sensitive Funds Under Management
First Quarter 2011 (unaudited)
 
($ in millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
                               
Funds Under Management (FUM)
                              
Deposits
   $ 90.2     $ 336.2     $ 351.4     $ 587.5     $ 540.9  
Surrenders
     (21.9 )     (123.4 )     (161.6 )     (118.8 )     (77.0 )
    Net flows
     68.3       212.8       189.8       468.7       463.9  
Deaths
     (8.5 )     (40.2 )     (27.3 )     (28.4 )     (22.9 )
Interest credited
     20.3       85.7       96.6       97.7       86.3  
Fees
     (5.7 )     (22.5 )     (28.3 )     (51.5 )     (48.6 )
Cost of insurance
     (97.6 )     (397.6 )     (406.1 )     (354.4 )     (258.9 )
     Change in FUM
     (23.2 )     (161.8 )     (175.3 )     132.1       219.8  
Beginning balance
     1,918.9       2,080.7       2,256.0       2,123.9       1,904.1  
Ending fund balance
   $ 1,895.7     $ 1,918.9     $ 2,080.7     $ 2,256.0     $ 2,123.9  
                                         
Gross life insurance in force
   $ 27,930.0     $ 28,769.0     $ 32,329.0     $ 33,351.1     $ 27,358.2  
                                         

 
10
 
 
The Phoenix Companies, Inc.
Universal Life / Interest Sensitive Funds Under Management
First Quarter 2011 (unaudited)
($ in millions)

Quarters ended
 
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
                               
Funds Under Management (FUM)
                              
Deposits
   $ 84.3     $ 75.1     $ 80.8     $ 96.0     $ 90.2  
Surrenders
     (35.6 )     (29.0 )     (33.8 )     (25.0 )     (21.9 )
     Net flows
     48.7       46.1       47.0       71.0       68.3  
Deaths
     (9.8 )     (13.0 )     (8.7 )     (8.7 )     (8.5 )
Interest credited
     23.1       21.5       20.7       20.4       20.3  
Fees
     (6.1 )     (5.1 )     (5.4 )     (5.9 )     (5.7 )
Cost of insurance
     (104.3 )     (100.4 )     (98.2 )     (94.7 )     (97.6 )
     Change in FUM
     (48.4 )     (50.9 )     (44.6 )     (17.9 )     (23.2 )
Beginning balance
     2,080.7       2,032.3       1,981.4       1,936.8       1,918.9  
Ending fund balance
   $ 2,032.3     $ 1,981.4     $ 1,936.8     $ 1,918.9     $ 1,895.7  
                                         
Gross life insurance in force
   $ 31,690.0     $ 30,679.0     $ 29,705.0     $ 28,769.0     $ 27,930.0  
                                         
 
 
11
 
 
The Phoenix Companies, Inc.
Life Sales
First Quarter 2011 (unaudited)
($ in millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
Life Insurance Sales
                              
                               
Wholesaler Channel
                              
Variable universal life
   $ ---     $ 0.1     $ 6.9     $ 26.7     $ 21.9  
Universal life/interest sensitive
     0.6       2.6       20.8       229.9       308.2  
Term life
     ---       ---       5.3       21.6       22.2  
 Life insurance annualized premium (1)
     0.6       2.7       33.0       278.2       352.3  
                                         
Variable universal life
     ---       0.2       3.2       9.3       8.0  
Universal life/interest sensitive
     0.3       1.1       19.2       54.2       65.0  
Life insurance single premium
     0.3       1.3       22.4       63.5       73.0  
                                         
Variable universal life
     ---       0.3       10.1       36.0       29.9  
Universal life/interest sensitive
     0.8       3.7       40.0       284.1       373.2  
Term life
     ---       ---       5.3       21.6       22.2  
Total wholesaler life insurance premium (2)
   $ 0.8     $ 4.0     $ 55.4     $ 341.7     $ 425.3  
                                         
Gross life insurance in force
   $ 132,884.0     $ 136,239.0     $ 155,267.0     $ 166,781.0     $ 156,889.0  
   Less Philadelphia Financial Group (PFG) gross life insurance in force
     ---       ---       4,758.1       4,665.3       4,259.4  
Gross life insurance in force (3)
   $ 132,884.0     $ 136,239.0     $ 150,508.9     $ 162,115.7     $ 152,629.6  
                                         
Average face amount for life insurance sales
   $ 0.5     $ 0.6     $ 0.9     $ 1.0     $ 1.3  
                                         
 
(1)  Annualized premium represents first year premiums on an annual basis.
 
(2)  Total premium represents annualized and single premiums.
 
(3)  Gross life insurance in force for all periods have been reduced to reflect the sale of Philadelphia Financial Group (PFG) in June 2010.

 
12
 

The Phoenix Companies, Inc.
Life Sales
First Quarter 2011 (unaudited)
($ in millions)
 
Quarters ended
 
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
Life Insurance Sales
                              
                               
Wholesaler Channel
                              
Variable universal life   $ ---     $ 0.1     $ ---     $ ---     $ ---  
Universal life/interest sensitive
     0.9       0.3       0.6       0.8       0.6  
Term life
     ---       ---       ---       ---       ---  
 Life insurance annualized premium (1)
     0.9       0.4       0.6       0.8       0.6  
                                         
Variable universal life
     ---       ---       0.1       0.1       ---  
Universal life/interest sensitive
     0.8       0.1       0.1       0.1       0.3  
Life insurance single premium
     0.8       0.1       0.2       0.2       0.3  
                                         
Variable universal life
     ---       0.1       0.1       0.1       ---  
Universal life/interest sensitive
     1.7       0.4       0.7       0.9       0.8  
Term life
     ---       ---       ---       ---       ---  
Total wholesaler life insurance premium (2)
   $ 1.7     $ 0.5     $ 0.8     $ 1.0     $ 0.8  
                                         
Gross life insurance in force
   $ 151,669.0     $ 143,085.0     $ 139,512.0     $ 136,239.0     $ 132,884.0  
   Less Philadelphia Financial Group (PFG) gross life insurance in force
     4,738.3       ---       ---       ---       ---  
Gross life insurance in force (3)
   $ 146,930.7     $ 143,085.0     $ 139,512.0     $ 136,239.0     $ 132,884.0  
                                         
Average face amount for life insurance sales
   $ 0.8     $ 0.3     $ 0.3     $ 0.7     $ 0.5  
                                         
 
(1)   Annualized premium represents first year premiums on an annual basis.
 
(2)  Total premium represents annualized and single premiums.
 
(3)  Gross life insurance in force for all periods have been reduced to reflect the sale of Philadelphia Financial Group (PFG) in June 2010.
 
 
13
 
 
The Phoenix Companies, Inc.
Annuity Funds Under Management and Annuity Supplementary Information
First Quarter 2011 (unaudited)
($ in millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
                               
Funds Under Management (FUM)
                              
Deposits
   $ 205.3     $ 220.8     $ 142.6     $ 628.9     $ 630.6  
Surrenders
     (132.3)       (471.7 )     (579.9 )     (806.9 )     (940.5 )
Net flows
     73.0       (250.9 )     (437.3 )     (178.0 )     (309.9 )
Deaths
     (17.0)       (54.8 )     (51.2 )     (75.4 )     (75.9 )
Interest credited
     145.9       434.2       732.8       (1,221.9 )     338.4  
Bonus
     14.6       12.1       ---       ---       ---  
Fees
     (14.4)       (56.2 )     (53.7 )     (55.5 )     (61.1 )
Change in FUM
     202.1       84.4       190.6       (1,530.8 )     (108.5 )
Beginning balance
     4,010.5       3,926.1       3,735.5       5,266.3       5,374.8  
Ending fund balance
   $ 4,212.6     $ 4,010.5     $ 3,926.1     $ 3,735.5     $ 5,266.3  
                                         
VA funds in guaranteed interest accounts (1)
   $ 449.2     $ 459.6     $ 502.5     $ 664.9     $ 809.3  
                                         
(1) Amounts are included in the annuity funds under management (FUM) table above.                                        
                                         
                                         
Variable Annuity Guaranteed Minimum Death Benefits
                                        
Death benefit in excess of fund value
   $ 235.5     $ 290.0     $ 531.8     $ 1,105.5     $ 202.4  
Death benefit in excess of fund value, net of reinsurance
     78.9       116.4       291.6       709.6       46.6  
Statutory reserve, net of reinsurance
     5.1       5.8       8.3       39.0       12.9  
                                         
Variable Annuity Guaranteed Income Benefits
                                        
Account balance
   $ 530.1     $ 528.4     $ 525.8     $ 464.1     $ 716.8  
Statutory reserve
     17.2       22.4       39.2       34.7       6.9  
                                         
Variable Annuity Guaranteed Accumulation Benefits
                                        
Account balance
   $ 445.1     $ 440.3     $ 417.9     $ 335.6     $ 389.8  
Statutory reserve
     ---       0.5       9.6       4.3       2.3  
                                         
Variable Annuity Guaranteed Withdrawal Benefits
                                        
Account balance
   $ 631.6     $ 615.7     $ 592.2     $ 413.2     $ 214.6  
Statutory reserve
     ---       0.5       12.3       3.5       0.7  
                                         
Variable Annuity Guaranteed Payout Annuity Floor
                                        
Account balance
   $ 21.5     $ 27.0     $ 22.8     $ 22.7     $ 43.4  
Statutory reserve
     2.4       3.1       5.5       11.2       2.2  
                                         
 
 
14
 
 
The Phoenix Companies, Inc.
Annuity Funds Under Management and Annuity Supplementary Information
First Quarter 2011 (unaudited)
($ in millions)
     
Quarters ended
 
       
2010
           2011  
       
March
    
June
    
September
    
December
    
March
  
                                   
Funds Under Management (FUM)
                              
Deposits
   $ 19.3     $ 26.8     $ 38.7     $ 136.0     $ 205.3  
Surrenders
     (121.6 )     (126.3 )     (108.0 )     (115.8 )     (132.3)  
Net flows     (102.3 )     (99.5 )     (69.3 )     20.2       73.0  
Deaths
     (15.7 )     (12.8 )     (12.8 )     (13.5 )     (17.0)  
Interest credited
     124.2       (210.5 )     280.7       239.8       145.9  
Bonus
     0.3       0.8       1.5       9.5       14.6  
Fees
     (14.6 )     (14.0 )     (13.3 )     (14.3 )     (14.4)  
Change in FUM     (8.1 )     (336.0 )     186.8       241.7       202.1  
Beginning balance
     3,926.1       3,918.0       3,582.0       3,768.8       4,010.5  
Ending fund balance
   $ 3,918.0     $ 3,582.0     $ 3,768.8     $ 4,010.5     $ 4,212.6  
                                             
VA funds in guaranteed interest accounts (1)
   $ 489.8     $ 477.5     $ 468.6     $ 459.6     $ 449.2  
                                             
(1) Amounts are included in the annuity funds under management (FUM) table above.                                        
                                         
                                               
Variable Annuity Guaranteed Minimum Death Benefits
                                        
Death benefit in excess of fund value
   $ 453.3     $ 612.5     $ 418.0     $ 290.0     $ 235.5  
Death benefit in excess of fund value, net of reinsurance
     233.8       351.9       209.8       116.4       78.9  
Statutory reserve, net of reinsurance
     7.4       9.4       7.2       5.8       5.1  
                                               
Variable Annuity Guaranteed Income Benefits
                                        
Account balance
   $ 530.2     $ 476.4     $ 505.4     $ 528.4     $ 530.1  
Statutory reserve
     33.1       55.2       36.1       22.4       17.2  
                                               
Variable Annuity Guaranteed Accumulation Benefits
                                        
Account balance
   $ 425.4     $ 381.2     $ 413.5     $ 440.3     $ 445.1  
Statutory reserve
     7.4       23.0       7.1       0.5       ---  
                                               
Variable Annuity Guaranteed Withdrawal Benefits
                                        
Account balance
   $ 601.1     $ 543.6     $ 584.8     $ 615.7     $ 631.6  
Statutory reserve
     6.0       14.0       4.8       0.5       ---  
                                               
Variable Annuity Guaranteed Payout Annuity Floor
                                        
Account balance
   $ 22.6     $ 19.0     $ 20.0     $ 27.0     $ 21.5  
Statutory reserve
     4.3       5.7       4.6       3.1       2.4  
                                         
 
 
15
 
 
The Phoenix Companies, Inc.
Deferred Policy Acquisition Costs
First Quarter 2011 (unaudited)
($ in millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
                               
Deferred Policy Acquisition Costs:
                              
Variable universal life
   $ 231.6     $ 238.5     $ 275.1     $ 324.2     $ 355.0  
Universal life
     545.6       591.8       820.2       970.4       796.7  
Variable annuities
     210.4       183.9       172.7       155.6       270.8  
Fixed annuities
     0.6       0.4       6.2       6.5       12.8  
Traditional life
     443.2       445.1       455.8       478.6       566.9  
Offset for unrealized investment gains or losses
     (28.1)       (15.4 )     186.0       773.0       63.7  
Total deferred policy acquisition costs
     1,403.3     $ 1,444.3     $ 1,916.0     $ 2,708.3     $ 2,065.9  
                                         
                                         
Deferred Policy Acquisition Costs:
                                        
Policy acquisition costs deferred
   $ 34.4     $ 27.0     $ 67.6     $ 339.6     $ 461.3  
Costs amortized to expenses:
                                        
     Recurring costs
     (62.5)       (300.4 )     (266.4 )     (431.8 )     (192.7 )
     Realized investment gains or losses
     (0.2)       2.2       5.8       25.8       (0.2 )
Offsets to net unrealized investment gains or losses
                                        
     included in accumulated other comprehensive income
     (12.7)       (198.9 )     (603.6 )     709.3       63.4  
Cumulative effect of adoption of new guidance
     ---       (1.6 )     11.9       ---       ---  
Other
     ---       ---       (7.6 )     (0.5 )     ---  
Change in deferred policy acquisition costs
     (41.0)       (471.7 )     (792.3 )     642.4       331.8  
Deferred policy acquisition costs, beginning of period
     1,444.3       1,916.0       2,708.3       2,065.9       1,734.1  
Deferred policy acquisition costs, end of period
   $ 1,403.3     $ 1,444.3     $ 1,916.0     $ 2,708.3     $ 2,065.9  
                                         
 
 
16
 
 
The Phoenix Companies, Inc.
Deferred Policy Acquisition Costs
First Quarter 2011 (unaudited)
($ in millions)
 
Quarters ended
 
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
                               
Deferred Acquisition Costs:
                              
Variable universal life
   $ 267.0     $ 258.0     $ 246.9     $ 238.5     231.6  
Universal life
     773.4       728.1       646.1       591.8     545.6  
Variable annuities
     168.6       158.0       164.7       183.9     210.4  
Fixed annuities
     6.3       6.5       0.3       0.4     0.6  
Traditional life
     450.4       448.9       447.4       445.1     443.2  
Offset for unrealized investment gains or losses
     77.3       38.5       (33.7 )     (15.4 )   (28.1)  
Total deferred policy acquisition costs
   $ 1,743.0     $ 1,638.0     $ 1,471.7     $ 1,444.3     1,403.3  
                                       
                                       
Deferred Policy Acquisition Costs:
                                      
Policy acquisition costs deferred
   $ 3.8     $ (0.3 )   $ 4.9     $ 18.6     34.4  
Costs amortized to expenses:
                                      
     Recurring costs
     (67.0 )     (67.3 )     (100.0 )     (66.1 )   (62.5)  
     Realized investment gains or losses
     (1.2 )     1.4       0.3       1.7     (0.2)  
Offsets to net unrealized investment gains or losses
                                      
     included in accumulated other comprehensive income
     (108.6 )     (38.8 )     (69.9 )     18.4     (12.7)  
Cumulative effect of adoption of new guidance
     ---       ---       (1.6 )     ---     ---  
Change in deferred policy acquisition costs
     (173.0 )     (105.0 )     (166.3 )     (27.4 )   (41.0)  
Deferred policy acquisition costs, beginning of period
     1,916.0       1,743.0       1,638.0       1,471.7     1,444.3  
Deferred policy acquisition costs, end of period
   $ 1,743.0     $ 1,638.0     $ 1,471.7     $ 1,444.3     1,403.3  
                                       
 
 
17
 
 
The Phoenix Companies, Inc.
Consolidated Statement of Income - GAAP Format (1)
First Quarter 2011 (unaudited)
($ in millions)
 
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
REVENUES
                              
Premiums
   $ 132.5     $ 620.0     $ 684.2     $ 765.9     $ 798.3  
Fee income
     153.8       630.2       648.1       601.3       499.4  
Net investment income
     200.8       844.6       786.7       912.5       1,056.7  
Net realized investment losses:
                                        
  Total other-than-temporary impairment ("OTTI") losses
     (7.4)       (105.2 )     (201.5 )     (245.0 )     (51.9 )
  Portion of OTTI losses recognized in other comprehensive income
     1.7       55.6       93.1       ---       ---  
  Net OTTI losses recognized in earnings
     (5.7)       (49.6 )     (108.4 )     (245.0 )     (51.9 )
  Net realized investment gains (losses), excluding OTTI losses
     (10.5)       39.7       6.2       (50.8 )     45.9  
Net realized investment gains (losses)
     (16.2)       (9.9 )     (102.2 )     (295.8 )     (6.0 )
Total revenues
     470.9       2,084.9       2,016.8       1,983.9       2,348.4  
                                         
BENEFITS AND EXPENSES
                                        
Policy benefits, excluding policyholder dividends
     282.2       1,188.6       1,279.9       1,362.3       1,312.4  
Policyholder dividends
     63.7       309.8       226.8       207.5       380.0  
Policy acquisition cost amortization
     62.7       298.2       260.6       406.0       192.9  
Interest expense on indebtedness
     7.9       31.7       33.1       36.7       44.2  
Interest expense on non-recourse collateralized obligations
     ---       ---       ---       11.8       15.4  
Operating expenses
     59.3       291.3       303.5       254.9       270.1  
Total benefits and expenses
     475.8       2,119.6       2,103.9       2,279.2       2,215.0  
                                         
Income (loss) from continuing operations before income taxes
     (4.9)       (34.7 )     (87.1 )     (295.3 )     133.4  
Income tax expense (benefit)
     (0.3)       (10.1 )     108.9       (118.5 )     20.1  
                                         
Income (loss) from continuing operations
     (4.6)       (24.6 )     (196.0 )     (176.8 )     113.3  
                                         
Income (loss) from discontinued operations, net of income taxes
     (1.5)       12.0       (123.0 )     (549.2 )     4.3  
                                         
Net income (loss)
   $ (6.1)     $ (12.6 )   $ (319.0 )   $ (726.0 )   $ 117.6  
                                         
                                         
(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)
First Quarter 2011 (unaudited)
($ in millions)
 
Quarters Ended
                              
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
REVENUES
                              
Premiums
   $ 151.7     $ 155.5     $ 154.1     $ 158.7     $ 132.5  
Fee income
     162.5       155.6       157.9       154.2       153.8  
Net investment income
     204.6       216.8       194.3       228.9       200.8  
Net realized investment losses:
                                        
  Total other-than-temporary impairment ("OTTI") losses
     (31.4 )     (23.8 )     (25.0 )     (25.0 )     (7.4 )
  Portion of OTTI losses recognized in other comprehensive income
     16.9       11.4       13.1       14.2       1.7  
  Net OTTI losses recognized in earnings
     (14.5 )     (12.4 )     (11.9 )     (10.8 )     (5.7 )
  Net realized investment gains (losses), excluding OTTI losses
     17.5       42.9       (2.2 )     (18.5 )     (10.5 )
Net realized investment gains (losses)
     3.0       30.5       (14.1 )     (29.3 )     (16.2 )
Total revenues
     521.8       558.4       492.2       512.5       470.9  
                                         
BENEFITS AND EXPENSES
                                        
Policy benefits, excluding policyholder dividends
     288.6       317.2       288.7       294.1       282.2  
Policyholder dividends
     62.7       97.5       64.7       84.9       63.7  
Policy acquisition cost amortization
     68.2       65.9       99.7       64.4       62.7  
Interest expense on indebtedness
     8.0       7.9       7.9       7.9       7.9  
Operating expenses
     80.2       74.9       64.0       72.2       59.3  
Total benefits and expenses
     507.7       563.4       525.0       523.5       475.8  
                                         
Income (loss) from continuing operations before income taxes
     14.1       (5.0 )     (32.8 )     (11.0 )     (4.9 )
Income tax expense (benefit)
     0.2       (0.3 )     (7.7 )     (2.3 )     (0.3 )
                                         
Income (loss) from continuing operations
     13.9       (4.7 )     (25.1 )     (8.7 )     (4.6 )
                                         
Income (loss) from discontinued operations, net of income taxes
     (0.2 )     15.0       0.1       (2.9 )     (1.5 )
                                         
Net income (loss)
   $ 13.7     $ 10.3     $ (25.0 )   $ (11.6 )   $ (6.1 )
                                         
                           
(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
First Quarter 2011 (unaudited)
($ in millions)
 
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
ASSETS:
                              
Available-for-sale debt securities, at fair value
   $ 11,159.5     $ 10,893.8     $ 10,333.0     $ 9,817.4     $ 11,959.4  
Available-for-sale equity securities, at fair value
     52.2       47.5       25.2       25.2       191.8  
Venture capital partnerships, at equity in net assets
     225.7       220.0       188.6       200.8       173.7  
Policy loans, at unpaid principal balances
     2,373.8       2,386.5       2,324.4       2,477.5       2,346.8  
Other investments
     489.5       516.9       539.7       616.9       507.3  
Fair value option investments
     92.5       102.1       69.3       84.1       ---  
      14,393.2       14,166.8       13,480.2       13,221.9       15,179.0  
Available-for-sale debt and equity securities pledged
                                        
    as collateral, at fair value
     ---       ---       ---       148.0       219.1  
Total investments
     14,393.2       14,166.8       13,480.2       13,369.9       15,398.1  
Cash and cash equivalents
     107.3       121.9       256.7       373.8       527.4  
Accrued investment income
     173.5       169.5       176.3       203.2       209.4  
Receivables
     432.0       405.7       356.6       358.0       279.3  
Deferred policy acquisition costs
     1,403.3       1,444.3       1,916.0       2,708.3       2,065.9  
Deferred income taxes
     93.5       116.4       166.2       435.2       33.5  
Other assets
     165.5       174.5       195.7       211.0       174.3  
Discontinued operations assets
     54.9       60.4       3,620.4       4,293.9       6,032.1  
Separate account assets
     4,448.9       4,416.8       4,418.1       3,860.1       5,781.2  
Total assets
   $ 21,272.1     $ 21,076.3     $ 24,586.2     $ 25,813.4     $ 30,501.2  
                                         
LIABILITIES:
                                        
Policy liabilities and accruals
   $ 12,960.6     $ 12,992.5     $ 13,151.1     $ 13,932.9     $ 13,952.0  
Policyholder deposit funds
     1,667.2       1,494.1       1,342.7       1,616.6       1,808.9  
Indebtedness
     427.7       427.7       428.0       458.0       627.7  
Other liabilities
     575.7       540.3       529.8       651.1       473.8  
Discontinued operations liabilities
     45.5       49.4       3,585.4       4,184.4       5,260.7  
Non-recourse collateralized debt obligations
     ---       ---       ---       245.2       317.9  
Separate account liabilities
     4,448.9       4,416.8       4,418.1       3,860.1       5,781.2  
Total liabilities
     20,125.6       19,920.8       23,455.1       24,948.3       28,222.2  
                                         
STOCKHOLDERS' EQUITY:
                                        
Common stock, $.01 par value: 116.3 million and 116.1 million shares outstanding
     1.3       1.3       1.3       1.3       1.3  
Additional paid-in capital
     2,631.7       2,631.0       2,627.3       2,626.4       2,616.1  
Accumulated deficit
     (1,169.6 )     (1,163.5 )     (1,146.7 )     (839.5 )     (20.7 )
Accumulated other comprehensive loss
     (137.4 )     (133.8 )     (171.3 )     (743.6 )     (138.2 )
Treasury stock, at cost:  11.3 million and 11.3 million shares
     (179.5 )     (179.5 )     (179.5 )     (179.5 )     (179.5 )
Total stockholders' equity
     1,146.5       1,155.5       1,131.1       865.1       2,279.0  
Total liabilities and stockholders' equity
   $ 21,272.1     $ 21,076.3     $ 24,586.2     $ 25,813.4     $ 30,501.2  
                                         
 
 
20
 
 
The Phoenix Companies, Inc.
General Account Investment Portfolio Summary  (1)
First Quarter 2011 (unaudited)
($ millions)
 
      Total Debt Securities     Public Debt Securities     Private Debt Securities  
     
3/31/2011
    
12/31/2010
    
3/31/2011
    
12/31/2010
    
3/31/2011
    
12/31/2010
  
Debt Securities by Credit Quality (Carrying Value)
                                    
                                       
AAA/AA/A
   $ 6,582.0     $ 6,408.9     $ 5,175.9     $ 5,029.1     $ 1,406.1     $ 1,379.8  
BBB
       3,657.7       3,531.7       2,239.6       2,069.2       1,418.1       1,462.5  
 
Total Investment Grade
     10,239.7       9,940.6       7,415.5       7,098.3       2,824.2       2,842.3  
BB
       469.8       472.2       342.2       347.4       127.6       124.8  
B         250.9       265.8       143.7       145.6       107.2       120.2  
CCC and Lower
     137.0       149.7       51.8       68.4       85.2       81.3  
In or Near Default
     62.1       65.5       33.7       39.3       28.4       26.2  
Total Debt Securities
   $ 11,159.5     $ 10,893.8     $ 7,986.9     $ 7,699.0     $ 3,172.6     $ 3,194.8  
                                                       
% Below Investment Grade
     8.2 %     8.7 %     7.2 %     7.8 %     11.0 %     11.0 %
                                                 
                                                       
Unrealized Gains and Losses on Debt and Equity Securities
                                          
As of 3/31/11
                                                
               
Total
          
Outside Closed Block
        
Closed Block
  
         
Gains
    
Losses
    
Gains
    
Losses
    
Gains
    
Losses
  
Total Debt Securities
   $ 575.6     $ (261.7 )   $ 186.5     $ (167.9 )   $ 389.1     $ (93.8 )
Equity Securities
     20.7       (2.1 )     12.4       (0.4 )     8.3       (1.7 )
Total Unrealized Gains (Losses)
     596.3       (263.8 )     198.9       (168.3 )     397.4       (95.5 )
                                                       
Applicable PDO
     397.4       (95.5 )     ---       ---       397.4       (95.5 )
Applicable DAC (Credit)
     127.9       (98.2 )     127.9       (98.2 )     ---       ---  
Applicable Deferred Income Tax (Benefit)
     24.9       (24.5 )     24.9       (24.5 )     ---       ---  
Total Offsets to Net Unrealized Gains (Losses)
     550.2       (218.2 )     152.8       (122.7 )     397.4       (95.5 )
Net Unrealized Gains (Losses)
   $ 46.1     $ (45.6 )   $ 46.1     $ (45.6 )   $ ---     $ ---  
Net Unrealized Gains
   $ 0.5             $ 0.5             $ ---          
                                                       
(1) Excludes debt and equity securities pledged as collateral.
                                          
 
 
21
 
 
The Phoenix Companies, Inc.
General Account GAAP Net Investment Income Yields (1)
First Quarter 2011 (unaudited)
($ in millions)
 
   
March
    
December 31,
  
    2011    
2010
    
2009
    
2008
    
2007
  
GAAP Net Investment Income
                              
Debt securities
   $ 147.6     $ 602.1     $ 649.4     $ 707.1     $ 775.0  
Equity securities
     0.6       2.4       0.4       4.3       8.2  
Policy loans
     42.0       171.7       183.6       187.0       179.5  
Venture capital
     9.8       24.5       (25.9 )     (4.7 )     27.0  
Cash and cash equivalents
     ---       0.1       0.3       7.5       18.8  
Fair value option investments
     2.4       7.2       1.5       ---       ---  
Other investments (2)
     0.7       49.8       (10.3 )     18.2       53.9  
Total cash and invested assets
     203.1       857.8       799.0       919.4       1,062.4  
Less:  Discontinued operations
     0.5       5.0       4.8       6.0       11.2  
Less:  Investment expenses
     1.8       8.2       7.5       8.2       9.6  
Total net investment income
   $ 200.8     $ 844.6     $ 786.7     $ 905.2     $ 1,041.6  
                                         
Annualized Yields
                                        
Debt securities
     5.5 %     5.7 %     6.4 %     7.1 %     6.6 %
Equity securities
     4.9 %     5.2 %     1.7 %     4.6 %     4.1 %
Policy loans
     7.3 %     7.6 %     8.0 %     7.7 %     7.9 %
Venture capital
     19.2 %     12.1 %     -12.9 %     -2.3 %     17.3 %
Cash and cash equivalents
     0.0 %     0.1 %     0.2 %     2.2 %     4.1 %
Fair value option investments
     10.4 %     7.5 %     -2.2 %     0.0 %     0.0 %
Other investments (2)
     0.6 %     9.5 %     -2.5 %     2.4 %     11.6 %
Total cash and invested assets
     5.8 %     6.2 %     6.0 %     6.8 %     7.0 %
                                         
Investment expenses and discontinued operations
     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %
Total net investment income yields
     5.7 %     6.1 %     5.9 %     6.7 %     6.9 %
                                         
                                         
(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)
First Quarter 2011 (unaudited)
($ in millions)
 
Quarters ended
 
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
GAAP Net Investment Income
                              
Debt securities
   $ 154.3     $ 150.2     $ 147.2     $ 150.3     $ 147.6  
Equity securities
     0.1       0.6       ---       1.7       0.6  
Policy loans
     43.4       42.1       43.0       43.2       42.0  
Venture capital
     5.3       11.9       (2.4 )     9.7       9.8  
Cash and cash equivalents
     ---       0.1       ---       ---       0.0  
Fair value option investments
     0.7       0.2       (0.7 )     7.0       2.4  
Other investments (2)
     4.6       15.5       9.9       19.8       0.7  
Total cash and invested assets
     208.4       220.6       197.0       231.7       203.1  
Less:  Discontinued operations
     1.7       1.8       0.8       0.6       0.5  
Less:  Investment expenses
     2.1       2.0       1.9       2.2       1.8  
Total net investment income
   $ 204.6     $ 216.8     $ 194.3     $ 228.9     $ 200.8  
                                         
Annualized Yields
                                        
Debt securities
     6.2 %     5.9 %     5.6 %     5.7 %     5.5 %
Equity securities
     1.4 %     7.0 %     0.0 %     15.6 %     4.9 %
Policy loans
     7.7 %     7.5 %     7.7 %     7.6 %     7.3 %
Venture capital
     11.6 %     26.5 %     -4.5 %     19.9 %     19.2 %
Cash and cash equivalents
     0.0 %     0.1 %     0.0 %     0.0 %     0.0 %
Fair value option investments
     4.1 %     1.2 %     -3.5 %     32.9 %     10.4 %
Other investments (2)
     3.5 %     12.2 %     7.3 %     15.5 %     0.6 %
Total cash and invested assets
     6.2 %     6.5 %     5.7 %     6.7 %     5.8 %
                                         
Investment expenses and discontinued operations
     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %
Total net investment income yields
     6.1 %     6.4 %     5.6 %     6.6 %     5.7 %
                                         
 
(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
First Quarter 2011 (unaudited)
($ Millions)
 
   
March
    
December 31,
  
   
2011
    
2010
    
2009
    
2008
    
2007
  
Realized Investment Gains and Losses
                              
Debt security
   $ (5.7 )   $ (49.0 )   $ (93.0 )   $ (224.0 )   $ (46.7 )
Equity security
     ---       (0.6 )     (5.2 )     (2.7 )     (0.5 )
Debt and equity securities pledged as collateral
     ---       ---       ---       (2.3 )     (0.8 )
Other invested asset
     ---       ---       (10.2 )     (16.0 )     (3.9 )
Total impairment losses
     (5.7 )     (49.6 )     (108.4 )     (245.0 )     (51.9 )
Debt security net transaction
     2.0       45.4       (23.8 )     (9.8 )     11.6  
Equity security net transaction
     ---       ---       2.2       (29.5 )     9.5  
Venture capital net investment
     ---       (0.3 )     (3.6 )     (3.0 )     ---  
Mortgage loan net transaction
     ---       0.2       (0.1 )     (0.1 )     1.4  
Affiliate equity security transaction
     ---       ---       ---       ---       13.7  
Real estate net transaction
     ---       ---       ---       2.4       1.4  
Other invested asset net transactions
     (1.6 )     (1.2 )     1.5       (0.9 )     3.7  
Debt and equity securities pledged as collateral
     ---       ---       ---       2.2       1.8  
CDO deconsolidation
     ---       ---       57.0       ---       ---  
Total net transactions
     0.4       44.1       33.2       (38.7 )     43.1  
Realized gains (losses) on fair value option securities
     (0.4 )     3.5       4.0       (18.4 )     3.8  
Realized gains (losses) on derivative assets and liabilities
     (10.5 )     (7.9 )     (31.0 )     6.3       (1.0 )
Net realized gains (losses)
     (16.2 )     (9.9 )     (102.2 )     (295.8 )     (6.0 )
                                         
Closed block applicable PDO (reduction)
     1.6       (9.4 )     40.5       120.2       (4.4 )
Applicable deferred acquisition costs (credit)
     (0.2 )     2.2       5.8       25.7       (0.2 )
Applicable income tax expense (benefit)
     (3.5 )     5.6       6.6       42.7       5.3  
Debt and equity securities pledged as collateral
     ---       ---       ---       0.1       0.8  
Realized gains (losses) on def. comp. portion fair value option securities
     (1.1 )     (3.5 )     (4.0 )     18.4       (3.8 )
Net realized investment gains (losses) included in net income (loss)
   $ (19.4 )   $ (15.0 )   $ (53.3 )   $ (88.7 )   $ (8.3 )
                                         
 
 
24
 
 
The Phoenix Companies, Inc.
General Account Realized Investment Gains and Losses
First Quarter 2011 (unaudited)
($ Millions)
 
Quarters ended
                              
   
2010
    
2011
  
   
March
    
June
    
September
    
December
    
March
  
Realized Investment Gains and Losses
                              
Debt security
   $ (14.2 )   $ (12.2 )   $ (11.8 )   $ (10.8 )   $ (5.7 )
Equity security
     (0.3 )     (0.2 )     (0.1 )     ---       ---  
Total impairment losses
     (14.5 )     (12.4 )     (11.9 )     (10.8 )     (5.7 )
Debt security net transaction
     17.9       21.0       5.9       0.6       2.0  
Equity security net transaction
     ---       ---       0.1       (0.1 )     ---  
Venture capital net investment
     ---       ---       (0.3 )     ---       ---  
Mortgage loan net transaction
     ---       0.2       ---       ---       ---  
Other invested asset net transactions
     (4.2 )     2.6       0.1       0.3       (1.6 )
Total net transactions
     13.7       23.8       5.8       0.8       0.4  
Realized gains (losses) on fair value option securities
     0.2       (0.6 )     1.5       2.4       (0.4 )
Realized gains (losses) on derivative assets and liabilities
     3.6       19.7       (9.5 )     (21.7 )     (10.5 )
Net realized gains (losses)
     3.0       30.5       (14.1 )     (29.3 )     (16.2 )
                                         
Closed block applicable PDO (reduction)
     5.6       (17.0 )     0.6       1.4       1.6  
Applicable deferred acquisition costs (credit)
     (1.2 )     1.5       0.2       1.7       (0.2 )
Applicable income tax expense (benefit)
     (3.0 )     (0.3 )     (3.2 )     12.1       (3.5 )
Realized gains (losses) on def. comp. portion fair value option securities
     (0.2 )     0.6       (1.5 )     (2.4 )     (1.1 )
Net realized investment gains (losses) included in net income (loss)
   $ 4.2     $ 15.3     $ (18.0 )   $ (16.5 )   $ (19.4 )
                                         
 
25