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March 15, 2016 5:11 PM EDT


 



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): March 15, 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 March 15, 2016, The Phoenix Companies, Inc. made available on its website its Financial Supplement for the year ended December 31, 2015. The Financial Supplement is furnished as Exhibit 99.1 hereto.

Item 9.01 Financial Statements and Exhibits.

(a)    Not applicable

(b)    Not applicable

(c)    Not applicable

(d)    Exhibits

The following exhibit is furnished herewith:
99.1
The Phoenix Companies, Inc. Financial Supplement for year ended December 31, 2015.


2



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
THE PHOENIX COMPANIES, INC.
 
 
 
Date: March 15, 2016
By:
/s/ Ernest M. McNeill, Jr.
 
 
Name:  Ernest M. McNeill, Jr.
 
 
Title:  Senior Vice President and Chief Accounting Officer




3


EXHIBIT 99.1








Financial Supplement
The Phoenix Companies, Inc.



December 31, 2015




The Phoenix Companies, Inc.
 
 
 
 
Financial Supplement
 
 
 
 
 
 
 
 
 
Wall Street Coverage
 
 
 
 
Firm
 
Analyst
 
For More Information
JP Morgan
 
Jimmy Bhullar
 
To receive additional information, including financial supplements and Securities and Exchange Commission filings along with access to other shareholder services, visit the Investor Relations Section on our Web site at Phoenixwm.com or contact our Investor Relations Department at:
 
 
 
 
The Phoenix Companies, Inc.
Transfer Agent and Registrar
 
 
 
Investor Relations
For information or assistance regarding your account, please contact our transfer agent and registrar:
 
 
 
One American Row
The Phoenix Companies, Inc. C/O Computershare
 
 
 
P.O. Box 5056, Hartford, CT 06102-5056
P.O. Box 30170, College Station, TX 77842-3170
 
 
 
Phone: 1-860-403-7100
 
 
 
 
Fax: 1-860-403-7880
 
 
 
 
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
December 2015 (unaudited)

Table of Contents


Financial Highlights
1
Consolidated Statements of Operations
2
Consolidated 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
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Period Ended:
 
December 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet Information
 
 
 
 
 
 
 
 
 
 
General account invested assets
 
$
16,334.5

 
$
16,750.1

 
$
16,083.1

 
$
16,228.7

 
$
15,294.7

Separate account assets
 
2,536.4

 
3,020.7

 
3,402.3

 
3,316.5

 
3,816.9

Total assets
 
21,091.9

 
21,745.9

 
21,641.1

 
21,634.9

 
21,491.9

Indebtedness
 
378.9

 
378.9

 
378.8

 
378.8

 
426.9

Total stockholders' equity attributable to The Phoenix Companies, Inc.
 
161.2

 
326.6

 
589.5

 
504.7

 
688.6

Accumulated OCI
 
(266.2
)
 
(234.4
)
 
(185.0
)
 
(243.8
)
 
(226.4
)
Total stockholders' equity, excluding other accumulated OCI
 
$
427.4

 
$
561.0

 
$
774.5

 
$
748.5

 
$
915.4

Debt to total capitalization [1]
 
47.0
%
 
40.3
%
 
32.9
%
 
33.6
%
 
31.8
%
Book value per share
 
$
28.03

 
$
56.82

 
$
102.27

 
$
87.47

 
$
118.42

Per share impact of other accumulated OCI
 
$
(46.29
)
 
$
(40.78
)
 
$
(32.10
)
 
$
(42.25
)
 
$
(39.00
)
Book value per share, excluding other accumulated OCI
 
$
74.32

 
$
97.60

 
$
134.37

 
$
129.72

 
$
157.42

Period-end common shares outstanding
 
5,751

 
5,748

 
5,764

 
5,770

 
5,815

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indebtedness:
 
 
 
 
 
 
 
 
 
 
Surplus notes
 
$
126.2

 
$
126.2

 
$
126.1

 
$
126.1

 
$
174.2

Senior unsecured bonds - due 2032
 
252.7

 
252.7

 
252.7

 
252.7

 
252.7

Total indebtedness
 
$
378.9

 
$
378.9

 
$
378.8

 
$
378.8

 
$
426.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory Financial Data [2]
 
 
 
 
 
 
 
 
 
 
Statutory capital, surplus and AVR
 
 
 
 
 
 
 
 
 
 
Phoenix Life [3]
 
$
535.3

 
$
752.2

 
$
735.2

 
$
922.5

 
$
845.7

PHL Variable
 
$
209.3

 
$
213.7

 
$
235.2

 
$
321.0

 
$
320.1

Statutory net income (loss)
 
 
 
 
 
 
 
 
 
 
Phoenix Life [4]
 
$
(660.7
)
 
$
132.5

 
$
(21.0
)
 
$
156.2

 
$
95.0

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

 
$
61.4

———————
[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.


1


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Consolidated Interim Unaudited Statements of Operations [1]
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015
 
 
 
 
 
 
 
 
 
(amount in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
2015
 
2014
 
2013
 
2012
 
2011
REVENUES:
 
 
 
 
 
 
 
 
 
Premiums
$
349.1

 
$
332.1

 
$
351.6

 
$
402.3

 
$
449.4

Fee income
543.6

 
545.1

 
550.3

 
556.0

 
596.9

Net investment income
834.9

 
830.9

 
789.7

 
827.8

 
824.0

Net realized gains (losses):


 
 
 
 
 
 
 
 
  Total other-than-temporary impairment ("OTTI") losses
(20.8
)
 
(7.7
)
 
(7.0
)
 
(50.8
)
 
(65.8
)
Portion of OTTI losses recognized in
  other comprehensive income (“OCI”)
(2.0
)
 
(0.4
)
 
(4.8
)
 
22.9

 
38.5

  Net OTTI losses recognized in earnings
(22.8
)
 
(8.1
)
 
(11.8
)
 
(27.9
)
 
(27.3
)
  Net realized gains (losses), excluding OTTI losses
(10.0
)
 
(33.1
)
 
27.8

 
11.1

 
(5.3
)
Net realized gains (losses)
(32.8
)
 
(41.2
)
 
16.0

 
(16.8
)
 
(32.6
)
Gain on debt repurchase
—

 
—

 
—

 
11.9

 
0.2

Total revenues
1,694.8

 
1,666.9

 
1,707.6

 
1,781.2

 
1,837.9

 
 
 
 
 
 
 
 
 
 
BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
Policy benefits
1,186.6

 
1,119.2

 
965.1

 
1,162.4

 
1,138.8

Policyholder dividends
211.5

 
244.8

 
235.9

 
292.1

 
259.4

Policy acquisition cost amortization
77.8

 
119.6

 
103.1

 
196.1

 
166.7

Interest expense on indebtedness
28.3

 
28.3

 
28.3

 
30.8

 
31.8

Other operating expenses
349.9

 
350.2

 
337.1

 
253.3

 
246.6

Total benefits and expenses
1,854.1

 
1,862.1

 
1,669.5

 
1,934.7

 
1,843.3

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

 
(153.5
)
 
(5.4
)
Income tax expense (benefit)
(34.3
)
 
10.5

 
8.5

 
(4.7
)
 
12.4

Income (loss) from continuing operations
(125.0
)
 
(205.7
)
 
29.6

 
(148.8
)
 
(17.8
)
Income (loss) from discontinued operations, net of income taxes
(2.0
)
 
(3.5
)
 
(2.9
)
 
(15.6
)
 
(21.6
)
Net income (loss)
(127.0
)
 
(209.2
)
 
26.7

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

 
4.0

 
0.7

 
0.6

 
(0.5
)
Net income (loss) attributable to The Phoenix Companies, Inc.
$
(133.7
)
 
$
(213.2
)
 
$
26.0

 
$
(165.0
)
 
$
(38.9
)
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER SHARE:
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations – basic
$
(22.90
)
 
$
(36.48
)
 
$
5.04

 
$
(25.90
)
 
$
(2.98
)
Income (loss) from continuing operations – diluted
$
(22.90
)
 
$
(36.48
)
 
$
5.01

 
$
(25.90
)
 
$
(2.98
)
Income (loss) from discontinued operations – basic
$
(0.35
)
 
$
(0.61
)
 
$
(0.51
)
 
$
(2.70
)
 
$
(3.71
)
Income (loss) from discontinued operations – diluted
$
(0.35
)
 
$
(0.61
)
 
$
(0.50
)
 
$
(2.70
)
 
$
(3.71
)
Net income (loss) attributable to The Phoenix Companies, Inc. – basic
$
(23.25
)
 
$
(37.09
)
 
$
4.53

 
$
(28.60
)
 
$
(6.69
)
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted
$
(23.25
)
 
$
(37.09
)
 
$
4.51

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

 
5,748

 
5,735

 
5,770

 
5,815

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

 
5,748

 
5,764

 
5,770

 
5,815

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

2


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

 
$
83.2

 
$
78.1

 
$
91.2

 
$
78.4

 
$
86.6

 
$
86.1

 
$
98.0

Fee income
134.8

 
134.2

 
135.2

 
140.9

 
133.8

 
135.2

 
135.1

 
139.5

Net investment income
211.5

 
191.5

 
204.9

 
223.0

 
209.3

 
202.3

 
227.5

 
195.8

Net realized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 


 


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

 
(1.0
)
 
(3.7
)
 
(3.0
)
 
(7.0
)
 
(0.9
)
 
(4.4
)
 
(8.5
)
Portion of OTTI losses recognized in
  other comprehensive income (“OCI”)
(0.2
)
 
—

 
(0.2
)
 
—

 
(1.4
)
 
(0.2
)
 
0.4

 
(0.8
)
  Net OTTI losses recognized in earnings
(0.2
)
 
(1.0
)
 
(3.9
)
 
(3.0
)
 
(8.4
)
 
(1.1
)
 
(4.0
)
 
(9.3
)
  Net realized gains (losses), excluding OTTI losses
(26.7
)
 
5.2

 
0.1

 
(11.7
)
 
(7.7
)
 
(1.0
)
 
(7.6
)
 
6.3

Net realized gains (losses)
(26.9
)
 
4.2

 
(3.8
)
 
(14.7
)
 
(16.1
)
 
(2.1
)
 
(11.6
)
 
(3.0
)
Total revenues
399.0

 
413.1

 
414.4

 
440.4

 
405.4

 
422.0

 
437.1

 
430.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BENEFITS AND EXPENSES:


 


 
 
 
 
 
 
 
 
 
 
 
 
Policy benefits
230.3

 
301.3

 
263.6

 
324.0

 
292.0

 
287.3

 
296.4

 
310.9

Policyholder dividends
72.2

 
42.6

 
57.0

 
73.0

 
40.1

 
55.0

 
60.6

 
55.8

Policy acquisition cost amortization
24.6

 
19.1

 
29.4

 
46.5

 
17.1

 
24.6

 
30.1

 
6.0

Interest expense on indebtedness
7.1

 
7.1

 
7.0

 
7.1

 
7.1

 
7.1

 
7.0

 
7.1

Other operating expenses
97.2

 
84.4

 
77.0

 
91.6

 
123.8

 
82.8

 
70.1

 
73.2

Total benefits and expenses
431.4

 
454.5

 
434.0

 
542.2

 
480.1

 
456.8

 
464.2

 
453.0

Income (loss) from continuing operations before income taxes
(32.4
)
 
(41.4
)
 
(19.6
)
 
(101.8
)
 
(74.7
)
 
(34.8
)
 
(27.1
)
 
(22.7
)
Income tax expense (benefit)
(4.8
)
 
(19.6
)
 
2.6

 
32.3

 
(2.2
)
 
(13.0
)
 
(17.0
)
 
(2.1
)
Income (loss) from continuing operations
(27.6
)
 
(21.8
)
 
(22.2
)
 
(134.1
)
 
(72.5
)
 
(21.8
)
 
(10.1
)
 
(20.6
)
Income (loss) from discontinued operations, net of income taxes
(0.6
)
 
(0.6
)
 
(0.3
)
 
(2.0
)
 
(0.5
)
 
(0.6
)
 
(0.1
)
 
(0.8
)
Net income (loss)
(28.2
)
 
(22.4
)
 
(22.5
)
 
(136.1
)
 
(73.0
)
 
(22.4
)
 
(10.2
)
 
(21.4
)
Less: Comprehensive income (loss) attributable to noncontrolling interests
(0.1
)
 
—

 
(0.1
)
 
4.2

 
1.0

 
0.2

 
5.5

 
—

Net income (loss) attributable to
  The Phoenix Companies, Inc.
$
(28.1
)
 
$
(22.4
)
 
$
(22.4
)
 
$
(140.3
)
 
$
(74.0
)
 
$
(22.6
)
 
$
(15.7
)
 
$
(21.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations – basic
$
(4.79
)
 
$
(3.80
)
 
$
(3.85
)
 
$
(24.05
)
 
$
(12.78
)
 
$
(3.83
)
 
$
(2.71
)
 
$
(3.58
)
Income (loss) from continuing operations – diluted
$
(4.79
)
 
$
(3.80
)
 
$
(3.85
)
 
$
(24.05
)
 
$
(12.78
)
 
$
(3.83
)
 
$
(2.71
)
 
$
(3.58
)
Income (loss) from discontinued operations – basic
$
(0.10
)
 
$
(0.10
)
 
$
(0.05
)
 
$
(0.35
)
 
$
(0.09
)
 
$
(0.10
)
 
$
(0.02
)
 
$
(0.14
)
Income (loss) from discontinued operations – diluted
$
(0.10
)
 
$
(0.10
)
 
$
(0.05
)
 
$
(0.35
)
 
$
(0.09
)
 
$
(0.10
)
 
$
(0.02
)
 
$
(0.14
)
Net income (loss) attributable to
  The Phoenix Companies, Inc. – basic
$
(4.89
)
 
$
(3.90
)
 
$
(3.90
)
 
$
(24.40
)
 
$
(12.87
)
 
$
(3.93
)
 
$
(2.73
)
 
$
(3.72
)
Net income (loss) attributable to
  The Phoenix Companies, Inc. – diluted
$
(4.89
)
 
$
(3.90
)
 
$
(3.90
)
 
$
(24.40
)
 
$
(12.87
)
 
$
(3.93
)
 
$
(2.73
)
 
$
(3.72
)
Basic weighted-average common shares outstanding (in thousands)
5,742

 
5,749

 
5,750

 
5,750

 
5,751

 
5,751

 
5,751

 
5,751

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

 
5,749

 
5,750

 
5,750

 
5,751

 
5,751

 
5,751

 
5,751

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

3


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Consolidated Statements of Operations excluding Closed Block
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
2015
 
2014
 
2013
 
2012
 
2011
REVENUES:
 
 
 
 
 
 
 
 
 
Premiums
$
39.9

 
$
30.3

 
$
33.8

 
$
32.8

 
$
35.7

Fee income
543.6

 
545.1

 
550.3

 
556.0

 
596.9

Net investment income
439.9

 
419.8

 
380.1

 
374.5

 
358.5

Net realized gains (losses)
(33.8
)
 
(54.0
)
 
(0.6
)
 
(26.0
)
 
(28.3
)
Gain on debt repurchase
—

 
—

 
—

 
11.9

 
—

Total revenues
989.6

 
941.2

 
963.6

 
949.2

 
962.8

BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
Policy benefits
739.3

 
680.8

 
500.6

 
668.6

 
573.9

Policyholder dividends
(0.7
)
 
0.2

 
0.2

 
0.3

 
0.7

Policy acquisition cost amortization
77.8

 
119.6

 
103.1

 
196.1

 
166.7

Interest expense on indebtedness
28.3

 
28.3

 
28.3

 
30.8

 
31.8

Other operating expenses
346.2

 
347.5

 
331.8

 
250.3

 
242.9

Total benefits and expenses
1,190.9

 
1,176.4

 
964.0

 
1,146.1

 
1,016.0

Income (loss) from continuing operations before income taxes, excl. regulatory closed block [1]
(201.3
)
 
(235.2
)
 
(0.4
)
 
(196.9
)
 
(53.2
)
Income (loss) from continuing operations before income taxes - regulatory closed block [2]
42.0

 
40.0

 
38.5

 
43.4

 
47.8

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

 
$
(153.5
)
 
$
(5.4
)
———————
[1]
Includes income attributable to noncontrolling interests of $3.2 million, $2.0 million, $0.4 million, $0.1 million and $0.0 for the years ended December 31, 2015, 2014. 2013. 2012 and 2011, respectively.
[2]
Includes income (loss) attributable to noncontrolling interests of $3.5 million, $2.0 million, $0.3 million, $0.5 million and $(0.5) million for the years ended December 31, 2015, 2014, 2013, 2012 and 2011, respectively.


4


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

 
$
7.4

 
$
7.0

 
$
9.1

 
$
8.2

 
$
7.8

 
$
12.1

 
$
11.8

Fee income
134.8

 
134.2

 
135.2

 
140.9

 
133.8

 
135.2

 
135.1

 
139.5

Net investment income
104.2

 
97.8

 
102.0

 
115.8

 
109.1

 
107.3

 
114.2

 
109.3

Net realized gains (losses)
(32.2
)
 
(0.9
)
 
(4.8
)
 
(16.1
)
 
(11.5
)
 
(2.7
)
 
(12.7
)
 
(6.9
)
Total revenues
213.6

 
238.5

 
239.4

 
249.7

 
239.6

 
247.6

 
248.7

 
253.7

BENEFITS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 


 
 
Policy benefits
126.5

 
179.2

 
156.6

 
218.5

 
176.5

 
178.9

 
183.3

 
200.6

Policyholder dividends
0.1

 
0.1

 
—

 
—

 
—

 
0.1

 
(0.9
)
 
0.1

Policy acquisition cost amortization
24.6

 
19.1

 
29.4

 
46.5

 
17.1

 
24.6

 
30.1

 
6.0

Interest expense on indebtedness
7.1

 
7.1

 
7.0

 
7.1

 
7.1

 
7.1

 
7.0

 
7.1

Other operating expenses
96.8

 
83.8

 
75.5

 
91.4

 
123.7

 
81.4

 
68.7

 
72.4

Total benefits and expenses
255.1

 
289.3

 
268.5

 
363.5

 
324.4

 
292.1

 
288.2

 
286.2

Income (loss) from continuing operations before income taxes, excl. regulatory closed block [1]
(41.5
)
 
(50.8
)
 
(29.1
)
 
(113.8
)
 
(84.8
)
 
(44.5
)
 
(39.5
)
 
(32.5
)
Income (loss) from continuing operations before income taxes - regulatory closed block [2]
9.1

 
9.4

 
9.5

 
12.0

 
10.1

 
9.7

 
12.4

 
9.8

Income (loss) from continuing operations before income taxes
$
(32.4
)
 
$
(41.4
)
 
$
(19.6
)
 
$
(101.8
)
 
$
(74.7
)
 
$
(34.8
)
 
$
(27.1
)
 
$
(22.7
)
———————
[1]
Includes income attributable to noncontrolling interests of $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. Includes income attributable to noncontrolling interests of $0.0 million, $0.1 million, $(0.1) million and $2.0 million for the quarters ended March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, respectively.
[2]
Includes income attributable to noncontrolling interests of $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. Includes income attributable to noncontrolling interests of $(0.1) million, $(0.1) million, $0.0 million and $2.2 million for the quarters ended March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, respectively.


5


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
2015
 
2014
 
2013
 
2012
 
2011
ASSETS:
 
 
 
 
 
 
 
 
 
Available-for-sale debt securities, at fair value
$
12,190.7

 
$
12,679.3

 
$
11,731.5

 
$
11,902.7

 
$
11,475.6

Available-for-sale equity securities, at fair value
182.0

 
179.5

 
138.0

 
88.8

 
90.2

Short-term investments
164.8

 
149.7

 
361.6

 
699.6

 
268.2

Limited partnerships and other investments
518.7

 
542.8

 
561.3

 
577.6

 
565.9

Policy loans, at unpaid principal balances
2,382.5

 
2,352.1

 
2,350.3

 
2,354.7

 
2,379.3

Derivative instruments
103.5

 
161.3

 
228.8

 
157.4

 
163.3

Fair value investments
165.0

 
235.4

 
215.2

 
201.5

 
184.0

Total investments
15,707.2

 
16,300.1

 
15,586.7

 
15,982.3

 
15,126.5

Cash and cash equivalents
627.3

 
450.0

 
496.4

 
246.4

 
168.2

Accrued investment income
179.2

 
176.7

 
170.4

 
170.3

 
175.6

Reinsurance recoverable
590.7

 
559.1

 
598.1

 
591.3

 
568.5

Deferred policy acquisition costs
941.1

 
848.6

 
947.8

 
898.1

 
1,114.8

Deferred income taxes, net
105.5

 
34.2

 
70.0

 
39.5

 
115.3

Other assets
361.7

 
311.3

 
320.5

 
332.0

 
316.0

Discontinued operations assets
42.8

 
45.2

 
48.9

 
58.5

 
90.1

Separate account assets
2,536.4

 
3,020.7

 
3,402.3

 
3,316.5

 
3,816.9

Total assets
$
21,091.9

 
$
21,745.9

 
$
21,641.1

 
$
21,634.9

 
$
21,491.9

LIABILITIES:
 
 
 
 
 
 
 
 
 
Policy liabilities and accruals
12,342.7

 
12,417.6

 
12,416.6

 
12,695.1

 
12,670.8

Policyholder deposit funds
4,333.2

 
3,955.0

 
3,442.6

 
3,055.2

 
2,439.9

Dividend obligations
716.8

 
916.8

 
705.7

 
956.8

 
713.8

Indebtedness
378.9

 
378.9

 
378.8

 
378.8

 
426.9

Pension and post-employment liabilities
361.6

 
380.0

 
313.1

 
428.1

 
428.6

Other liabilities
210.7

 
289.8

 
337.3

 
239.9

 
224.5

Discontinued operations liabilities
37.8

 
40.5

 
43.4

 
53.1

 
79.1

Separate account liabilities
2,536.4

 
3,020.7

 
3,402.3

 
3,316.5

 
3,816.9

Total liabilities
20,918.1

 
21,399.3

 
21,039.8

 
21,123.5

 
20,800.5

STOCKHOLDERS' EQUITY:
 

 
 

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

 
0.1

 
0.1

 
0.1

 
1.3

Additional paid-in capital
2,632.9

 
2,632.8

 
2,633.1

 
2,633.0

 
2,630.5

Accumulated other comprehensive income (loss)
(266.2
)
 
(234.4
)
 
(185.0
)
 
(243.9
)
 
(226.8
)
Retained earnings (accumulated deficit)
(2,022.7
)
 
(1,889.0
)
 
(1,675.8
)
 
(1,701.6
)
 
(1,536.8
)
Treasury stock, at cost: 0.7 million and 0.7 million shares
(182.9
)
 
(182.9
)
 
(182.9
)
 
(182.9
)
 
(179.5
)
Total The Phoenix Companies, Inc. stockholders' equity
161.2

 
326.6

 
589.5

 
504.7

 
688.7

Noncontrolling interests
12.6

 
20.0

 
11.8

 
6.7

 
2.7

Total stockholders' equity
173.8

 
346.6

 
601.3

 
511.4

 
691.4

Total liabilities and stockholders' equity
$
21,091.9

 
$
21,745.9

 
$
21,641.1

 
$
21,634.9

 
$
21,491.9


6


The Phoenix Companies, Inc.
 
 
 
 
 
Closed Block Assets and Liabilities
 
 
 
 
 
Fourth Quarter 2015 (unaudited)
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
2015
 
2014
 
2013
ASSETS:
 
 
 
 
 
Available-for-sale debt securities
$
5,285.4

 
$
5,877.0

 
$
5,753.4

Available-for-sale equity securities
90.1

 
91.7

 
76.5

Short-term investments
25.0

 
—

 
106.9

Limited partnerships and other investments
352.7

 
343.4

 
345.0

Policy loans
1,121.0

 
1,159.1

 
1,201.6

Fair value investments
53.1

 
59.8

 
42.5

Total closed block investments
6,927.3

 
7,531.0

 
7,525.9

Cash and cash equivalents
290.8

 
89.6

 
78.2

Accrued investment income
75.5

 
80.7

 
81.7

Reinsurance recoverable
30.0

 
19.1

 
26.8

Deferred income taxes, net
278.7

 
290.3

 
285.4

Other closed block assets
53.7

 
67.4

 
58.2

Total closed block assets
7,656.0

 
8,078.1

 
8,056.2

Policy liabilities and accruals
7,816.5

 
8,058.2

 
8,258.4

Policyholder dividends payable
191.1

 
201.9

 
207.8

Policy dividend obligation
525.5

 
714.8

 
497.7

Other closed block liabilities
46.6

 
48.0

 
65.9

Total closed block liabilities
8,579.7

 
9,022.9

 
9,029.8

Excess of closed block liabilities over closed block assets [1]
923.7

 
944.8

 
973.6

Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests
(8.1
)
 
(11.8
)
 
(8.0
)
Excess of closed block liabilities over closed block assets attributable to noncontrolling interests
$
931.8

 
$
956.6

 
$
981.6

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


7


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

 
$
1,089.3

 
$
1,014.3

 
$
1,019.1

 
$
1,151.6

Deposits
67.0

 
70.1

 
75.4

 
82.6

 
98.3

Surrenders
(74.8
)
 
(79.1
)
 
(102.8
)
 
(123.4
)
 
(135.4
)
Net flows
(7.8
)
 
(9.0
)
 
(27.4
)
 
(40.8
)
 
(37.1
)
Deaths
(7.9
)
 
(6.9
)
 
(5.7
)
 
(5.2
)
 
(5.6
)
Performance and interest credited
(3.8
)
 
59.9

 
182.5

 
120.2

 
(6.7
)
Fees
(7.5
)
 
(8.5
)
 
(9.1
)
 
(10.3
)
 
(11.5
)
Cost of insurance
(61.4
)
 
(62.2
)
 
(65.3
)
 
(68.7
)
 
(71.6
)
Change in funds on deposit
(88.4
)
 
(26.7
)
 
75.0

 
(4.8
)
 
(132.5
)
Balance, end of period
$
974.2

 
$
1,062.6

 
$
1,089.3

 
$
1,014.3

 
$
1,019.1


8


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

 
$
1,080.1

 
$
1,092.7

 
$
1,056.4

 
$
1,062.6

 
$
1,067.5

 
$
1,046.2

 
$
954.4

Deposits
17.6

 
16.1

 
18.5

 
17.9

 
17.4

 
17.3

 
15.8

 
16.5

Surrenders
(19.4
)
 
(20.7
)
 
(18.6
)
 
(20.4
)
 
(19.4
)
 
(18.9
)
 
(17.8
)
 
(18.7
)
Net flows
(1.8
)
 
(4.6
)
 
(0.1
)
 
(2.5
)
 
(2.0
)
 
(1.6
)
 
(2.0
)
 
(2.2
)
Deaths
(2.2
)
 
(1.2
)
 
(1.8
)
 
(1.7
)
 
(1.3
)
 
(2.1
)
 
(3.1
)
 
(1.4
)
Performance and interest credited
13.0

 
36.0

 
(17.0
)
 
27.9

 
25.8

 
(0.2
)
 
(69.7
)
 
40.3

Fees
(2.2
)
 
(2.3
)
 
(2.0
)
 
(2.0
)
 
(2.0
)
 
(2.0
)
 
(1.8
)
 
(1.7
)
Cost of insurance
(16.0
)
 
(15.3
)
 
(15.4
)
 
(15.5
)
 
(15.6
)
 
(15.4
)
 
(15.2
)
 
(15.2
)
Change in funds on deposit
(9.2
)
 
12.6

 
(36.3
)
 
6.2

 
4.9

 
(21.3
)
 
(91.8
)
 
19.8

Balance, end of period
$
1,080.1

 
$
1,092.7

 
$
1,056.4

 
$
1,062.6

 
$
1,067.5

 
$
1,046.2

 
$
954.4

 
$
974.2


9


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

 
$
1,818.2

 
$
1,837.9

 
$
1,852.8

 
$
1,918.9

Deposits
372.7

 
338.7

 
361.5

 
384.0

 
384.5

Surrenders
(55.2
)
 
(62.3
)
 
(64.9
)
 
(73.2
)
 
(89.5
)
Net flows
317.5

 
276.4

 
296.6

 
310.8

 
295.0

Deaths
(45.5
)
 
(34.8
)
 
(35.5
)
 
(33.6
)
 
(35.8
)
Interest credited
71.1

 
71.0

 
75.2

 
75.1

 
79.2

Fees
(23.2
)
 
(21.1
)
 
(22.4
)
 
(23.5
)
 
(23.8
)
Cost of insurance
(324.0
)
 
(327.8
)
 
(333.6
)
 
(343.7
)
 
(380.7
)
Change in funds on deposit
(4.1
)
 
(36.3
)
 
(19.7
)
 
(14.9
)
 
(66.1
)
Balance, end of period
$
1,777.8

 
$
1,781.9

 
$
1,818.2

 
$
1,837.9

 
$
1,852.8



10


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

 
$
1,809.0

 
$
1,797.2

 
$
1,787.1

 
$
1,781.9

 
$
1,769.0

 
$
1,762.2

 
$
1,769.5

Deposits
87.5

 
77.3

 
79.6

 
94.3

 
89.8

 
80.9

 
98.3

 
103.7

Surrenders
(18.1
)
 
(13.2
)
 
(11.3
)
 
(19.7
)
 
(18.8
)
 
(10.7
)
 
(12.8
)
 
(12.9
)
Net flows
69.4

 
64.1

 
68.3

 
74.6

 
71.0

 
70.2

 
85.5

 
90.8

Deaths
(7.9
)
 
(7.8
)
 
(10.2
)
 
(8.9
)
 
(15.3
)
 
(8.7
)
 
(9.1
)
 
(12.4
)
Interest credited
16.5

 
18.2

 
17.9

 
18.4

 
17.9

 
17.9

 
17.6

 
17.7

Fees
(5.4
)
 
(4.8
)
 
(5.2
)
 
(5.7
)
 
(5.5
)
 
(5.2
)
 
(6.3
)
 
(6.2
)
Cost of insurance
(81.8
)
 
(81.5
)
 
(80.9
)
 
(83.6
)
 
(81.0
)
 
(81.0
)
 
(80.4
)
 
(81.6
)
Change in funds on deposit
(9.2
)
 
(11.8
)
 
(10.1
)
 
(5.2
)
 
(12.9
)
 
(6.8
)
 
7.3

 
8.3

Balance, end of period
$
1,809.0

 
$
1,797.2

 
$
1,787.1

 
$
1,781.9

 
$
1,769.0

 
$
1,762.2

 
$
1,769.5

 
$
1,777.8



11


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

 
$
—

 
$
—

 
$
0.1

 
$
0.1

Universal life/interest sensitive
4.0

 
1.6

 
2.0

 
2.2

 
2.1

Whole life
2.6

 
1.6

 
0.4

 
0.6

 
—

Term life
11.9

 
1.6

 
—

 
—

 
—

Life insurance annualized premium [1]
18.5

 
4.8

 
2.4

 
2.9

 
2.2

 
 
 
 
 
 
 
 
 
 
Universal life/interest sensitive
0.9

 
0.1

 
0.1

 
0.2

 
0.7

Whole life
—

 
—

 
2.1

 
5.2

 
1.6

Life insurance single premium
0.9

 
0.1

 
2.2

 
5.4

 
2.3

 
 
 
 
 
 
 
 
 
 
Variable universal life
—

 
—

 
—

 
0.1

 
0.1

Universal life/interest sensitive
4.9

 
1.7

 
2.1

 
2.4

 
2.8

Whole life
2.6

 
1.6

 
2.5

 
5.8

 
1.6

Term life
11.9

 
1.6

 
—

 
—

 
—

Total wholesaler life insurance premium [2]
$
19.4

 
$
4.9

 
$
4.6

 
$
8.3

 
$
4.5

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


12


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
2014
 
2015
 
March
 
June
 
September
 
December
 
March
 
June
 
September
 
December
Life Insurance Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesaler Channel
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Universal life/interest sensitive
$
0.2

 
$
0.3

 
$
0.4

 
$
0.7

 
$
1.6

 
$
1.1

 
$
0.5

 
$
0.8

Whole life
0.3

 
0.4

 
0.3

 
0.6

 
0.6

 
0.7

 
0.8

 
0.5

Term life
—

 
—

 
0.4

 
1.2

 
1.8

 
3.0

 
3.5

 
3.6

Life insurance annualized premium [1]
0.5

 
0.7

 
1.1

 
2.5

 
4.0

 
4.8

 
4.8

 
4.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Universal life/interest sensitive
—

 
0.1

 
—

 
—

 
0.1

 
—

 
0.2

 
0.6

Life insurance single premium
—

 
0.1

 
—

 
—

 
0.1

 
—

 
0.2

 
0.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Universal life/interest sensitive
0.2

 
0.4

 
0.4

 
0.7

 
1.7

 
1.1

 
0.7

 
1.4

Whole life
0.3

 
0.4

 
0.3

 
0.6

 
0.6

 
0.7

 
0.8

 
0.5

Term life
—

 
—

 
0.4

 
1.2

 
1.8

 
3.0

 
3.5

 
3.6

Total life insurance premium [2]
$
0.5

 
$
0.8

 
$
1.1

 
$
2.5

 
$
4.1

 
$
4.8

 
$
5.0

 
$
5.5

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


13


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

 
$
5,502.4

 
$
5,042.1

 
$
4,495.4

 
$
4,083.3

Deposits
703.9

 
770.9

 
682.9

 
824.2

 
951.5

Surrenders
(624.6
)
 
(658.4
)
 
(597.8
)
 
(529.9
)
 
(485.1
)
Net flows
79.3

 
112.5

 
85.1

 
294.3

 
466.4

Deaths
(83.9
)
 
(81.8
)
 
(79.7
)
 
(73.3
)
 
(62.7
)
Performance and interest credited
30.9

 
196.2

 
514.9

 
370.3

 
15.1

Bonus
13.1

 
17.3

 
10.5

 
16.1

 
48.4

Fees
(74.6
)
 
(72.1
)
 
(70.5
)
 
(60.7
)
 
(55.1
)
Change in funds on deposit
(35.2
)
 
172.1

 
460.3

 
546.7

 
412.1

Balance, end of period
$
5,639.3

 
$
5,674.5

 
$
5,502.4

 
$
5,042.1

 
$
4,495.4



14


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

 
$
5,525.2

 
$
5,623.0

 
$
5,631.5

 
$
5,674.5

 
$
5,731.7

 
$
5,772.7

 
$
5,636.9

Deposits
170.4

 
201.0

 
221.7

 
177.8

 
189.4

 
221.4

 
185.2

 
107.9

Surrenders
(172.7
)
 
(170.4
)
 
(157.1
)
 
(158.2
)
 
(159.4
)
 
(160.2
)
 
(155.9
)
 
(149.1
)
Net flows
(2.3
)
 
30.6

 
64.6

 
19.6

 
30.0

 
61.2

 
29.3

 
(41.2
)
Deaths
(18.7
)
 
(18.2
)
 
(21.4
)
 
(23.5
)
 
(24.5
)
 
(18.9
)
 
(20.5
)
 
(20.0
)
Performance and interest credited
60.0

 
97.7

 
(22.1
)
 
60.6

 
65.0

 
12.9

 
(127.4
)
 
80.4

Bonus
2.1

 
5.4

 
5.2

 
4.6

 
5.2

 
4.2

 
2.2

 
1.5

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

 
97.8

 
8.5

 
43.0

 
57.2

 
41.0

 
(135.8
)
 
2.4

Balance, end of period
$
5,525.2

 
$
5,623.0

 
$
5,631.5

 
$
5,674.5

 
$
5,731.7

 
$
5,772.7

 
$
5,636.9

 
$
5,639.3



15


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

 
$
2,259.9

 
$
1,800.5

 
$
1,139.4

 
$
226.0

Deposits
670.5

 
713.7

 
602.2

 
741.2

 
890.8

Surrenders
(218.1
)
 
(160.7
)
 
(135.2
)
 
(75.5
)
 
(24.6
)
Net flows
452.4

 
553.0

 
467.0

 
665.7

 
866.2

Deaths
(45.3
)
 
(41.9
)
 
(30.9
)
 
(24.3
)
 
(5.7
)
Interest credited
42.3

 
58.9

 
41.8

 
19.3

 
6.3

Bonus
8.9

 
13.6

 
6.0

 
13.2

 
48.4

Fees
(40.0
)
 
(30.3
)
 
(24.5
)
 
(12.8
)
 
(1.8
)
Change in funds on deposit
418.3

 
553.3

 
459.4

 
661.1

 
913.4

Balance, end of period
$
3,231.5

 
$
2,813.2

 
$
2,259.9

 
$
1,800.5

 
$
1,139.4



16


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

 
$
2,376.3

 
$
2,518.4

 
$
2,694.7

 
$
2,813.2

 
$
2,937.8

 
$
3,086.4

 
$
3,199.1

Deposits
154.6

 
186.9

 
208.3

 
163.9

 
176.7

 
208.3

 
181.7

 
103.8

Surrenders
(37.2
)
 
(43.4
)
 
(37.5
)
 
(42.6
)
 
(50.1
)
 
(55.6
)
 
(55.5
)
 
(56.9
)
Net flows
117.4

 
143.5

 
170.8

 
121.3

 
126.6

 
152.7

 
126.2

 
46.9

Deaths
(8.9
)
 
(9.4
)
 
(10.9
)
 
(12.7
)
 
(11.3
)
 
(10.7
)
 
(11.6
)
 
(11.7
)
Interest credited
13.8

 
11.0

 
19.8

 
14.3

 
14.3

 
13.2

 
8.1

 
6.7

Bonus
1.1

 
4.4

 
4.3

 
3.8

 
4.2

 
3.0

 
1.2

 
0.5

Fees
(7.0
)
 
(7.4
)
 
(7.7
)
 
(8.2
)
 
(9.2
)
 
(9.6
)
 
(11.2
)
 
(10.0
)
Change in funds on deposit
116.4

 
142.1

 
176.3

 
118.5

 
124.6

 
148.6

 
112.7

 
32.4

Balance, end of period
$
2,376.3

 
$
2,518.4

 
$
2,694.7

 
$
2,813.2

 
$
2,937.8

 
$
3,086.4

 
$
3,199.1

 
$
3,231.5



17


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
Deferred Policy Acquisition Costs
 
 
 
 
 
 
 
Fourth Quarter 2015 (unaudited)
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
2015
 
2014
 
2013
 
2012
Composition of Deferred Policy Acquisition Costs by Product:
 
 
 
 
 
 
 
Variable universal life
$
117.9

 
$
120.3

 
$
129.3

 
$
140.8

Universal life
140.4

 
129.0

 
214.9

 
199.7

Variable annuities
61.2

 
62.4

 
84.1

 
92.2

Fixed annuities
286.6

 
220.9

 
194.3

 
133.7

Traditional life
335.0

 
316.0

 
325.2

 
331.7

Total deferred policy acquisition costs
$
941.1

 
$
848.6

 
$
947.8

 
$
898.1

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

 
$
947.8

 
$
898.1

 
$
1,114.8

Policy acquisition costs deferred
87.4

 
72.9

 
58.4

 
58.1

Costs amortized to expenses:


 
 
 
 
 
 
     Recurring costs
(86.6
)
 
(129.5
)
 
(117.9
)
 
(141.3
)
     Assumption unlocking
9.7

 
(4.4
)
 
25.4

 
(55.6
)
     Realized investment gains (losses)
(0.9
)
 
14.3

 
(10.6
)
 
0.8

Offsets to net unrealized investment gains or losses
     included in AOCI
82.9

 
(52.5
)
 
94.4

 
(78.7
)
Balance, end of period
$
941.1

 
$
848.6

 
$
947.8

 
$
898.1



18


The Phoenix Companies, Inc.
 
 
 
 
 
General Account Investment Portfolio Summary
 
 
 
 
 
Fourth Quarter 2015 (unaudited)
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale Debt Securities Ratings
 
 
 
 
 
 
December 31, 2015
 
 
 
Fair
Value
 
Amortized
Cost
 
 
AAA/AA/A
$
7,000.2

 
$
6,726.4

 
 
BBB
4,392.3

 
4,406.8

 
 
   Total investment grade
11,392.5

 
11,133.2

 
 
BB
561.3

 
603.5

 
 
B
165.9

 
180.1

 
 
CCC and lower
63.2

 
70.2

 
 
In or near default
7.8

 
6.6

 
 
  Total available-for-sale debt securities
$
12,190.7

 
$
11,993.6

 
 
 
 
 
 
 
 
% Investment Grade
93.5
%
 
92.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized Gains (Losses) on Debt and Equity Securities
 
 
 
 
 
Year ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
Outside
Closed Block
 
Closed Block
Sources of Changes in Net Unrealized Gains (Losses):
 
 
 
 
 
Debt securities
$
(504.2
)
 
$
(261.8
)
 
$
(242.4
)
Equity securities
3.9

 
2.2

 
1.7

Other investments
(2.3
)
 
(1.0
)
 
(1.3
)
Net unrealized investment gains (losses)
$
(502.6
)
 
$
(260.6
)
 
$
(242.0
)
 


 
 
 
 
Net unrealized investment gains (losses)
(502.6
)
 
(260.6
)
 
(242.0
)
Applicable to closed block policyholder dividend obligation
(241.4
)
 
—

 
(241.4
)
Applicable to deferred policy acquisition cost
(82.9
)
 
(82.9
)
 
—

Applicable to other actuarial offsets
(70.6
)
 
(70.1
)
 
(0.5
)
Applicable to deferred income tax expense (benefit)
(71.3
)
 
(71.3
)
 
—

Offsets to net unrealized investment gains (losses)
(466.2
)
 
(224.3
)
 
(241.9
)
Net unrealized gains (losses) included in OCI
$
(36.4
)
 
$
(36.3
)
 
$
(0.1
)


19


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
General Account GAAP Net Investment Income Yields
 
 
 
 
 
 
 
Fourth Quarter 2015 (unaudited)
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
2015
 
2014
 
2013
 
2012
Sources of Net Investment Income:
 
 
 
 
 
 
 
Debt securities [1]
$
595.1

 
$
581.6

 
$
565.0

 
$
604.8

Equity securities
6.9

 
9.2

 
7.2

 
4.3

Limited partnerships and other investments
58.1

 
65.3

 
58.3

 
63.7

Policy loans
170.7

 
167.4

 
160.0

 
161.5

Fair value investments
30.3

 
25.4

 
14.1

 
9.4

Total investment income
861.1

 
848.9

 
804.6

 
843.7

Less: Discontinued operations
1.4

 
1.1

 
1.3

 
2.1

Less: Investment expenses
24.8

 
16.9

 
13.6

 
13.8

Net investment income
$
834.9

 
$
830.9

 
$
789.7

 
$
827.8

Amounts applicable to closed block
$
395.0

 
$
411.1

 
$
409.6

 
$
453.3

 
 
 
 
 
 
 
 
Annualized Yields:
 
 
 
 
 
 
 
Debt securities
4.9
%
 
4.9
%
 
4.8
%
 
5.3
%
Equity securities
4.5
%
 
6.7
%
 
7.5
%
 
5.6
%
Limited partnerships and other investments
10.9
%
 
11.8
%
 
11.2
%
 
11.1
%
Policy loans
7.2
%
 
7.1
%
 
6.8
%
 
6.8
%
Fair value investments
35.4
%
 
20.1
%
 
10.9
%
 
7.3
%
Total investment yield
5.6
%
 
5.6
%
 
5.4
%
 
5.8
%
Investment expenses and discontinued operations
0.2
%
 
0.1
%
 
0.1
%
 
0.1
%
Total net investment income yields
5.4
%
 
5.5
%
 
5.3
%
 
5.7
%
———————
[1]
Includes net investment income on short-term investments.


20


The Phoenix Companies, Inc.
 
 
 
 
 
 
 
Net Realized Gains (Losses)
 
 
 
 
 
 
 
Fourth Quarter 2015 (unaudited)
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
2015
 
2014
 
2013
 
2012
Sources and Types of Net Realized Gains (Losses):
 
 
 
 
 
 
 
Total other-than-temporary debt impairments
$
(12.0
)
 
$
(5.6
)
 
$
(7.0
)
 
$
(45.7
)
Portion of losses recognized in OCI
(2.0
)
 
(0.4
)
 
(4.8
)
 
22.9

Net debt impairments recognized in earnings
$
(14.0
)
 
$
(6.0
)
 
$
(11.8
)
 
$
(22.8
)
Debt security impairments:
 
 
  

 
  

 
  

  U.S. government and agency
$
—

 
$
—

 
$
—

 
$
—

  State and political subdivision
—

 
—

 
—

 
(0.6
)
  Foreign government
—

 
—

 
—

 
—

  Corporate
(13.8
)
 
(6.0
)
 
(3.8
)
 
(3.0
)
  CMBS
—

 
—

 
(2.7
)
 
(4.1
)
  RMBS
(0.2
)
 
—

 
(4.3
)
 
(10.3
)
  CDO/CLO
—

 
—

 
(1.0
)
 
(3.8
)
  Other ABS
—

 
—

 
—

 
(1.0
)
Net debt security impairments
(14.0
)
 
(6.0
)
 
(11.8
)
 
(22.8
)
Equity security impairments
(8.8
)
 
(2.1
)
 
—

 
(4.8
)
Limited partnerships and other investment impairments
—

 
—

 
—

 
(0.3
)
Impairment losses
(22.8
)
 
(8.1
)
 
(11.8
)
 
(27.9
)
Debt security transaction gains
42.5

 
41.8

 
45.3

 
46.4

Debt security transaction losses
(5.0
)
 
(17.7
)
 
(2.2
)
 
(11.1
)
Equity security transaction gains
1.7

 
10.4

 
4.2

 
14.4

Equity security transaction losses
—

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

 
—

 
0.8

 
7.7

Limited partnerships and other investment transaction losses
(7.1
)
 
(0.7
)
 
(4.6
)
 
(2.5
)
Net transaction gains (losses)
32.1

 
32.8

 
39.7

 
54.5

Derivative instruments
(31.1
)
 
(20.8
)
 
(27.7
)
 
(50.4
)
Embedded derivatives [1]
(3.1
)
 
(45.9
)
 
12.2

 
4.9

Assets valued at fair value
(7.9
)
 
0.8

 
3.6

 
2.1

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

 
11.1

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

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


21

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