PHOENIX COMPANIES INC/DE - FORM 8-K - EX-99.1 - FINANCIAL SUPPLEMENT

Attached files

file	filename
8-K - CURRENT REPORT - PHOENIX COMPANIES INC/DE	pnx_8k.htm
EX-99.2 - INVESTMENT PORTFOLIO SUPPLEMENT - PHOENIX COMPANIES INC/DE	pnx_ex992.htm

EXHIBIT 99.1

The Phoenix Companies, Inc.
Financial Supplement

Wall Street Coverage
Firm	Analyst	Transfer Agent and Registrar
Credit Suisse Securities (USA)	Tom Gallagher	For information or assistance regarding your account, please contact our transfer agent and registrar:
FBR	Randy Binner	The Phoenix Companies, Inc. C/O Computershare
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



		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		Investor Relations One American Row
"PNX." Our 7.45 percent bond is traded on the NYSE under the symbol "PFX."		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.

Operating income, as well as components of and financial measures derived from operating income, are non-GAAP financial measures. Management believes that these measures provide investors with additional insight into the underlying trends in our operations. In addition, these are internal performance measures we use in the management of our operations, including our compensation plans and planning processes. Operating income is calculated by excluding realized investment gains (losses) and related deferred acquisition cost amortization, tax and other offsets as their amount and timing may be subject to management’s investment decisions. This adjustment includes changes related to fixed indexed annuity options purchased to fund the annual index credits as they fluctuate from quarter to quarter based upon the changes in fair value. Also excluded from net income are changes related to fixed indexed annuity embedded derivatives as they vary from quarter to quarter based upon assumptions used to discount liabilities. Operating income is also adjusted to include amortization of option premium and proceeds received upon options expiring specific to fixed indexed annuities. Certain other items may also be 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 and may differ from similarly titled measures of other companies. Accordingly, our non-GAAP financial measures should not be considered as substitutes for net income or measures that are derived from or incorporate net income. Therefore, investors should evaluate both GAAP and non-GAAP financial measures when reviewing our performance.

Total operating return on equity (“ROE”) is an internal performance measure used in the management of our operations, including our 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.

The Phoenix Companies, Inc.

Financial Supplement

June 2012 (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
Fixed Indexed Annuity Funds Under Management			16
Deferred Policy Acquisition Costs			18
Consolidated Statement of Income - GAAP Format			20
Condensed Consolidated Balance Sheet - Preliminary			22
General Account Investment Portfolio Summary			23
General Account GAAP Net Investment Income Yields			24
General Account Realized Investment Gains and Losses			26
Impacts of Adoption of Accounting Standards Updated No. 2010-26			28

The Phoenix Companies, Inc.

Financial Highlights

Second Quarter 2012 (unaudited)

(amount in millions, except per share data)

For the Period Ended:	June			December 31,
	2012			2011			2010			2009			2008
Balance Sheet Information
General account invested assets	$	15,880.8		$	15,362.0		$	14,288.7		$	13,736.9		$	13,595.7
Separate account assets		3,336.8			3,817.6			4,416.8			4,418.1			3,860.1
Total assets		21,194.8			21,285.1			20,884.5			24,316.8			25,587.5
Indebtedness		426.9			426.9			427.7			428.0			458.0
Total stockholders' equity		946.6			958.0			943.0			845.7			624.4
Total stockholders' equity, excluding other accumulated OCI and FIN 46-R	$	1,071.5		$	1,092.8		$	1,045.7		$	1,020.1		$	1,406.7
Debt to total capitalization (1)		28.5	%		28.1	%		29.0	%		29.6	%		24.6	%
Book value per share	$	8.16		$	8.24		$	8.12		$	7.31		$	5.46
Book value per share, excluding other accumulated OCI	$	9.24		$	9.40		$	9.01		$	8.82		$	12.30
Book value per share, excluding other accumulated OCI and FIN 46-R	$	9.24		$	9.40		$	9.01		$	8.82		$	12.30
Period-end common shares outstanding		116.0			116.3			116.1			115.7			114.4


Indebtedness:
Surplus notes	$	174.2		$	174.2		$	174.1		$	174.1		$	174.1
Senior unsecured bonds - due 2032		252.7			252.7			253.6			253.9			283.9
Total indebtedness	$	426.9		$	426.9		$	427.7		$	428.0		$	458.0


Statutory Financial Data for Phoenix Life Insurance Company (2)
Capital, surplus and surplus notes	$	839.3		$	728.8		$	658.5		$	517.2		$	758.9
Asset valuation reserve (AVR)		119.5			116.9			104.7			57.0			94.4
Capital, surplus, surplus notes and AVR	$	958.8		$	845.7		$	763.2		$	574.2		$	853.3
Policyholder dividend liability	$	224.9		$	223.1		$	256.6		$	312.6		$	324.2
Interest maintenance reserve	$	(56.5	)	$	(57.6	)	$	(58.0	)	$	(45.8	)	$	(44.2	)
Statutory gain from operations	$	68.9		$	130.5		$	147.8		$	29.2		$	53.4
Statutory net income (loss)	$	63.4		$	95.0		$	139.8		$	(59.9	)	$	(82.3	)

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

(2)	Phoenix Life Insurance Company is required to file financial statements with state regulatory authorities prepared on an accounting basis prescribed or permitted by the Insurance Department of the State of New York. June 2012 amounts are preliminary.

The Phoenix Companies, Inc.

Consolidated Income Statement

Second Quarter 2012 (unaudited)

(amount in millions, except per share data)

	June						December 31,
	2012			2011			2011			2010			2009			2008
Consolidated Income Statement

Premiums (1)	$	204.5		$	220.3		$	459.1		$	521.4		$	583.9		$	665.1
Fee income		283.7			308.4			597.1			630.2			648.1			600.9
Net investment income		428.1			412.6			809.3			844.0			785.8			906.5
Total revenue		916.3			941.3			1,865.5			1,999.6			2,017.8			2,172.4
Policy benefits and increase in policy liabilities (1)		509.6			531.2			1,081.9			1,088.7			1,178.2			1,261.0
Policyholder dividends		146.5			135.7			246.5			300.4			267.3			327.7
Policy acquisition cost amortization		93.1			93.7			171.1			248.5			208.6			315.5
Interest expense on indebtedness		15.9			15.9			31.8			31.7			33.1			36.7
Operating expenses		122.4			118.9			246.6			293.5			314.2			340.4
Total benefits and expenses		887.5			895.4			1,777.9			1,962.8			2,001.4			2,281.3
Pre-tax operating income (loss) (2)		28.8			45.9			87.6			36.8			16.4			(108.9	)
Income tax expense (benefit)		22.0			13.6			6.0			7.5			239.5			(184.4	)
Operating income (loss) (2)		6.8			32.3			81.6			29.3			(223.1	)		75.5
Net realized investment losses (3)		(19.6	)		(11.3	)		(11.9	)		(15.0	)		(53.3	)		(88.7	)
Fixed Indexed Annuity Derivatives (3)		(1.7	)		---			---			---			---			---
Earnings on CDO's consolidated under FIN-46R		---			---			---			---			---			(4.2	)
Discontinued operations		(6.8	)		(2.2	)		(22.0	)		12.0			(123.0	)		(549.2	)
Net income (loss)	$	(21.3	)	$	18.8		$	47.7		$	26.3		$	(399.4	)	$	(566.6	)


Earnings Per Share
Basic
Weighted-average shares outstanding		116.3			116.3			116.3			116.3			116.5			114.4
Total operating income (loss) per share	$	0.06		$	0.28		$	0.70		$	0.25		$	(1.92	)	$	0.66
Net income (loss) per share	$	(0.18	)	$	0.16		$	0.41		$	0.23		$	(3.43	)	$	(4.95	)

Diluted
Weighted-average shares outstanding and dilutive potential common shares		116.3			117.8			117.7			116.3			116.5			114.4
Total operating income (loss) per share	$	0.06		$	0.27		$	0.69		$	0.25		$	(1.92	)	$	0.66
Net income (loss) per share	$	(0.18	)	$	0.16		$	0.41		$	0.23		$	(3.43	)	$	(4.95	)

(1)	Prior period amounts have been revised to reflect the correction of an error related to the historical presentation of ceded premiums related to certain reinsurance contracts within the Closed Block. The adjustments reflect the reclassification of ceded premiums from benefits and reserves to revenue. There was no impact to net income (loss), stockholders' equity, or earnings per share.

(2)	Beginning in the second quarter of 2012, operating income and measures derived from operating income include certain adjustments related to fixed indexed annuity derivatives in order to better reflect the economics of this line of business. Periods prior to the first quarter of 2012 have not been revised as adjustments for those periods were not significant.

(3)	Adjustments include the related deferred acquisition cost amortization, policyholder dividend obligation and tax offsets.

The Phoenix Companies, Inc.

Consolidated Income Statement

Second Quarter 2012 (unaudited)

(amount in millions, except per share data)

Quarters ended

	2011												2012
	March			June			September			December			March			June
Consolidated Income Statement

Premiums	$	111.0		$	109.3		$	117.4		$	121.4		$	100.2		$	104.3
Fee income		153.8			154.6			147.6			141.0			146.6			137.2
Net investment income		201.3			211.2			198.3			198.4			209.8			218.2
Total revenue		466.1			475.1			463.3			460.8			456.6			459.7
Policy benefits and increase in policy liabilities		260.4			270.8			267.8			282.9			255.4			254.3
Policyholder dividends		65.3			70.4			53.0			58.0			65.5			80.9
Policy acquisition cost amortization		50.9			42.7			46.0			31.3			46.4			46.8
Interest expense on indebtedness		7.9			7.9			7.9			7.9			7.9			7.9
Operating expenses		59.7			59.2			57.6			70.1			60.5			61.9
Total benefits and expenses		444.2			451.0			432.3			450.2			435.7			451.8
Pre-tax operating income (loss) (1)		21.9			24.1			31.0			10.6			20.9			7.9
Income tax expense (benefit)		(2.6	)		16.2			(9.0	)		1.5			15.1			6.9
Operating income (loss) (1)		24.5			7.9			40.0			9.1			5.8			1.0
Net realized investment losses (2)		(19.4	)		8.0			7.5			(8.0	)		(14.1	)		(5.5	)
Fixed Indexed Annuity Derivatives (2)		---			---			---			---			0.7			(2.4	)
Discontinued operations		(1.5	)		(0.7	)		(4.7	)		(15.1	)		(0.5	)		(6.3	)
Net income (loss)	$	3.6		$	15.2		$	42.8		$	(14.0	)	$	(8.1	)	$	(13.2	)

Earnings Per Share
Basic
Weighted-average shares outstanding		116.2			116.3			116.3			116.3			116.3			116.2
Total operating income per share	$	0.21		$	0.07		$	0.34		$	0.08		$	0.05		$	0.01
Net income (loss) per share	$	0.03		$	0.13		$	0.37		$	(0.12	)	$	(0.07	)	$	(0.11	)

Diluted
Weighted-average shares outstanding and
dilutive potential common shares		117.7			117.8			117.8			116.3			116.3			116.2
Total operating income per share	$	0.21		$	0.07		$	0.34		$	0.08		$	0.05		$	0.01
Net income (loss) per share	$	0.03		$	0.13		$	0.36		$	(0.12	)	$	(0.07	)	$	(0.11	)

(1)	Beginning in the second quarter of 2012, operating income and measures derived from operating income include certain adjustments related to fixed indexed annuity derivatives in order to better reflect the economics of this line of business. Periods prior to the first quarter of 2012 have not been revised as adjustments for those periods were not significant.

(2)	Adjustments include the related deferred acquisition cost amortization, policyholder dividend obligation and tax offsets.

The Phoenix Companies, Inc.

Alternate Operating Income Statement

Details excluding Regulatory Closed Block

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008

Premiums	$	15.6		$	13.4		$	34.4		$	29.8		$	37.1		$	46.6
Cost of insurance charges		213.5			231.0			452.3			475.5			491.2			434.7
Other fees		63.8			68.6			129.7			136.8			130.0			151.1
Surrender charges		6.4			8.8			15.1			17.9			26.9			15.1
Net investment income on assets backing liabilities		176.1			164.5			333.8			312.8			330.2			358.8
Net investment income on assets backing surplus		17.2			12.4			24.2			32.9			(2.2	)		24.5
Total revenue		492.6			498.7			989.5			1,005.7			1,013.2			1,030.8

Benefits paid		208.0			238.3			401.8			515.7			804.7			462.6
Increases (decreases) in reserves		(14.3	)		(46.8	)		(11.0	)		(177.1	)		(434.3	)		(100.4	)
Interest on policyholder funds		60.0			60.5			116.5			124.2			136.2			152.0
Derivative cost		7.4			---			---			---			---			---
Derivative proceeds		(3.4	)		---			---			---			---			---
Policyholder dividends		0.1			0.2			0.3			0.3			0.4			0.6
Interest expense on indebtedness		15.9			15.9			31.8			31.7			33.1			36.7
Commissions and sales incentives, net of deferrals		11.9			12.4			24.9			26.5			21.9			39.7
Operating expenses, net of deferrals		102.0			99.4			207.4			235.4			285.3			291.8
Reinsurance allowance, net of deferrals		0.3			(2.0	)		(3.5	)		5.8			(5.7	)		(13.0	)
Premium taxes		5.5			6.2			12.4			15.4			9.4			16.8
Policy acquisition cost amortization		93.1			93.7			171.1			248.5			208.6			315.5
Total benefits and expenses		486.5			477.8			951.7			1,026.4			1,059.6			1,202.3
Pre-tax operating income (loss) excl. regulatory closed block		6.1			20.9			37.8			(20.7	)		(46.4	)		(171.5	)
Pre-tax operating income - regulatory closed block		22.7			25.0			49.8			57.5			62.7			62.7
Total pre-tax operating income (loss)		28.8			45.9			87.6			36.8			16.3			(108.8	)
Income tax expense (benefit)		22.0			13.6			6.0			7.5			239.4			(184.4	)
Total operating income (loss)	$	6.8		$	32.3		$	81.6		$	29.3		$	(223.1	)	$	75.6

The Phoenix Companies, Inc.

Alternate Operating Income Statement

Details excluding Regulatory Closed Block

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June

Premiums	$	7.8		$	5.6		$	11.5		$	9.5		$	8.4		$	7.2
Cost of insurance charges		116.1			114.9			113.0			108.3			108.2			105.3
Other fees		33.6			35.0			31.6			29.5			34.1			29.7
Surrender charges		4.1			4.7			3.0			3.3			4.3			2.2
Net investment income on assets backing liabilities		80.6			83.9			82.3			87.1			86.3			89.8
Net investment income on assets backing surplus		3.1			9.3			6.6			5.1			9.7			7.5
Total revenue		245.3			253.4			248.0			242.8			251.0			241.7

Benefits paid		114.4			123.9			80.5			83.0			91.8			116.2
Increases (decreases) in reserves		(24.5	)		(22.2	)		10.3			25.5			4.4			(18.7	)
Interest on policyholder funds		29.0			31.6			28.4			27.6			30.1			29.9
Derivative cost		---			---			---			---			3.6			3.8
Derivative proceeds		---			---			---			---			(1.7	)		(1.7	)
Policyholder dividends		0.1			0.1			0.1			0.1			0.1			0.1
Interest expense on indebtedness		7.9			7.9			7.9			7.9			7.9			7.9
Commissions and sales incentives, net of deferrals		5.9			6.5			6.2			6.3			6.0			5.9
Operating expenses, net of deferrals		50.3			49.1			47.8			60.1			49.8			52.3
Reinsurance allowance, net of deferrals		(1.1	)		(0.9	)		(1.0	)		(0.5	)		0.3			---
Premium taxes		2.9			3.1			3.1			3.4			2.7			2.7
Policy acquisition cost amortization		51.0			42.7			46.0			31.3			46.4			46.8
Total benefits and expenses		235.9			241.8			229.3			244.7			241.4			245.2
Pre-tax operating income (loss) excl. regulatory closed block		9.4			11.6			18.7			(1.9	)		9.6			(3.5	)
Pre-tax operating income - regulatory closed block		12.5			12.5			12.3			12.5			11.3			11.4
Total pre-tax operating income		21.9			24.1			31.0			10.6			20.9			7.9
Income tax expense (benefit)		(2.6	)		16.2			(9.0	)		1.5			15.1			6.9
Total operating income	$	24.5		$	7.9		$	40.0		$	9.1		$	5.8		$	1.0

The Phoenix Companies, Inc.

Closed Block Assets and Liabilities

Second Quarter 2012 (unaudited)

($ in millions)

	June				December 31,
	2012		2011		2011		2010		2009		2008

Debt securities	$	6,379.1	$	6,386.1	$	6,353.1	$	6,385.4	$	6,305.1	$	6,011.4
Equity securities		14.8		19.5		12.0		19.6		6.7		9.0
Limited partnership and other investments		372.4		353.8		352.8		339.6		329.2		350.7
Policy loans		1,258.0		1,303.0		1,280.4		1,340.8		1,378.5		1,377.0
Fair value options investments		11.2		11.8		10.6		16.0		---		---
Total closed block investments		8,035.5		8,074.2		8,008.9		8,101.4		8,019.5		7,748.1
Cash and cash equivalents		34.7		14.1		14.2		7.1		33.3		57.2
Accrued investment income		90.6		94.9		94.2		97.2		105.9		113.0
Receivables		50.7		59.3		52.2		62.5		53.3		49.5
Deferred income taxes		228.7		233.5		223.9		236.2		270.3		418.3
Other closed block assets		17.8		15.8		14.5		17.8		22.6		338.0
Total closed block assets		8,458.0		8,491.8		8,407.9		8,522.2		8,504.9		8,724.1
Policy liabilities and accruals		8,521.4		8,770.3		8,644.5		8,903.5		9,246.5		9,742.7
Policyholder dividends payable		235.8		261.8		240.1		263.3		297.8		311.1
Policyholder dividend obligation		660.2		433.5		519.7		339.0		---		---
Other closed block liabilities		55.6		67.6		32.8		73.6		57.9		72.0
Total closed block liabilities		9,473.0		9,533.2		9,437.1		9,579.4		9,602.2		10,125.8
Excess of closed block liabilities over closed block assets	$	1,015.0	$	1,041.4	$	1,029.2	$	1,057.2	$	1,097.3	$	1,401.7

The Phoenix Companies, Inc.

Closed Block Assets and Liabilities

Second Quarter 2012 (unaudited)

($ in millions)

	2011								2012
	March		June		September		December		March		June

Debt securities	$	6,384.6	$	6,386.1	$	6,395.6	$	6,353.1	$	6,332.2	$	6,379.1
Equity securities		21.6		19.5		19.1		12.0		14.8		14.8
Limited partnership and other investments		341.7		353.8		354.8		352.8		363.6		372.4
Policy loans		1,315.1		1,303.0		1,289.4		1,280.4		1,273.5		1,258.0
Fair value options investments		11.7		11.8		10.8		10.6		11.4		11.2
Total closed block investments		8,074.7		8,074.2		8,069.7		8,008.9		7,995.5		8,035.5
Cash and cash equivalents		11.4		14.1		13.8		14.2		16.1		34.7
Accrued investment income		96.5		94.9		97.7		94.2		95.1		90.6
Receivables		60.1		59.3		53.0		52.2		49.0		50.7
Deferred income taxes		232.3		233.5		232.8		223.9		225.3		228.7
Other closed block assets		25.3		15.8		12.6		14.5		6.6		17.8
Total closed block assets		8,500.3		8,491.8		8,479.6		8,407.9		8,387.6		8,458.0
Policy liabilities and accruals		8,835.8		8,770.3		8,701.3		8,644.5		8,573.7		8,521.4
Policyholder dividends payable		264.3		261.8		261.5		240.1		239.1		235.8
Policyholder dividend obligation		355.8		433.5		499.9		519.7		562.3		660.2
Other closed block liabilities		93.5		67.6		50.4		32.8		36.8		55.6
Total closed block liabilities		9,549.4		9,533.2		9,513.1		9,437.1		9,411.9		9,473.0
Excess of closed block liabilities over closed block assets	$	1,049.1	$	1,041.4	$	1,033.5	$	1,029.2	$	1,024.3	$	1,015.0

The Phoenix Companies, Inc.

Variable Universal Life

Funds Under Management

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008

Funds Under Management (FUM)
Deposits	$	42.2		$	47.4		$	98.3		$	108.5		$	115.8		$	142.2
Surrenders		(66.3	)		(78.9	)		(135.4	)		(175.6	)		(158.8	)		(105.4	)
Net flows		(24.1	)		(31.5	)		(37.1	)		(67.1	)		(43.0	)		36.8
Deaths		(2.1	)		(2.6	)		(5.6	)		(4.3	)		(2.6	)		(4.6	)
Interest credited		62.9			61.9			(6.7	)		143.6			244.3			(486.1	)
Fees		(5.5	)		(6.2	)		(11.5	)		(13.1	)		(15.3	)		(22.7	)
Cost of insurance		(34.3	)		(36.2	)		(71.6	)		(76.0	)		(80.0	)		(78.6	)
Change in FUM		(3.1	)		(14.6	)		(132.5	)		(16.9	)		103.4			(555.2	)
Beginning balance		1,019.1			1,151.6			1,151.6			1,168.5			1,065.1			1,620.3
Ending fund balance	$	1,016.0		$	1,137.0		$	1,019.1		$	1,151.6		$	1,168.5		$	1,065.1

Gross life insurance in force	$	13,378.0		$	15,090.0		$	14,217.0		$	16,063.0		$	22,780.0		$	24,934.5
Less Philadelphia Financial Group (PFG) gross life insurance in force		---			---			---			---			4,758.1			4,665.3
Gross life insurance in force (1)	$	13,378.0		$	15,090.0		$	14,217.0		$	16,063.0		$	18,021.9		$	20,269.2

(1)	Gross life insurance in force for all periods have been reduced to reflect the sale of Philadelphia Financial Group (PFG) in June 2010.

The Phoenix Companies, Inc.

Variable Universal Life

Funds Under Management

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June

Funds Under Management (FUM)
Deposits	$	24.5		$	22.9		$	23.9		$	27.0		$	22.1		$	20.1
Surrenders		(44.7	)		(34.2	)		(26.5	)		(30.0	)		(40.8	)		(25.5	)
Net flows		(20.2	)		(11.3	)		(2.6	)		(3.0	)		(18.7	)		(5.4	)
Deaths		(2.0	)		(0.6	)		(0.7	)		(2.3	)		(0.8	)		(1.3	)
Interest credited		52.9			9.0			(138.8	)		70.2			96.1			(33.2	)
Fees		(3.1	)		(3.1	)		(2.6	)		(2.7	)		(3.2	)		(2.3	)
Cost of insurance		(18.4	)		(17.8	)		(17.9	)		(17.5	)		(17.5	)		(16.8	)
Change in FUM		9.2			(23.8	)		(162.6	)		44.7			55.9			(59.0	)
Beginning balance		1,151.6			1,160.8			1,137.0			974.4			1,019.1			1,075.0
Ending fund balance	$	1,160.8		$	1,137.0		$	974.4		$	1,019.1		$	1,075.0		$	1,016.0

Gross life insurance in force	$	15,498.0		$	15,090.0		$	14,732.0		$	14,217.0		$	13,730.0		$	13,378.0

The Phoenix Companies, Inc.

Universal Life / Interest Sensitive Funds Under Management

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008

Funds Under Management (FUM)
Deposits	$	178.7		$	190.8		$	384.5		$	336.2		$	351.4		$	587.5
Surrenders		(35.8	)		(42.8	)		(89.5	)		(123.4	)		(161.6	)		(118.8	)
Net flows		142.9			148.0			295.0			212.8			189.8			468.7
Deaths		(18.6	)		(17.7	)		(35.8	)		(40.2	)		(27.3	)		(28.4	)
Interest credited		38.0			40.8			79.2			85.7			96.6			97.7
Fees		(11.3	)		(11.8	)		(23.8	)		(22.5	)		(28.3	)		(51.5	)
Cost of insurance		(179.0	)		(194.7	)		(380.7	)		(397.6	)		(406.1	)		(354.4	)
Change in FUM		(28.0	)		(35.4	)		(66.1	)		(161.8	)		(175.3	)		132.1
Beginning balance		1,852.8			1,918.9			1,918.9			2,080.7			2,256.0			2,123.9
Ending fund balance	$	1,824.8		$	1,883.5		$	1,852.8		$	1,918.9		$	2,080.7		$	2,256.0

Gross life insurance in force	$	24,179.0		$	27,268.0		$	25,999.0		$	28,769.0		$	32,329.0		$	33,351.1

The Phoenix Companies, Inc.

Universal Life / Interest Sensitive

Funds Under Management

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June

Funds Under Management (FUM)
Deposits	$	90.2		$	100.6		$	94.2		$	99.5		$	89.3		$	89.4
Surrenders		(21.9	)		(20.9	)		(22.5	)		(24.2	)		(20.4	)		(15.4	)
Net flows		68.3			79.7			71.7			75.3			68.9			74.0
Deaths		(8.5	)		(9.2	)		(8.2	)		(9.9	)		(8.3	)		(10.3	)
Interest credited		20.3			20.5			19.4			19.0			19.0			19.0
Fees		(5.7	)		(6.1	)		(5.9	)		(6.1	)		(5.6	)		(5.7	)
Cost of insurance		(97.6	)		(97.1	)		(95.2	)		(90.8	)		(90.7	)		(88.3	)
Change in FUM		(23.2	)		(12.2	)		(18.2	)		(12.5	)		(16.7	)		(11.3	)
Beginning balance		1,918.9			1,895.7			1,883.5			1,865.3			1,852.8			1,836.1
Ending fund balance	$	1,895.7		$	1,883.5		$	1,865.3		$	1,852.8		$	1,836.1		$	1,824.8

Gross life insurance in force	$	27,930.0		$	27,268.0		$	26,659.0		$	25,999.0		$	24,912.0		$	24,179.0

The Phoenix Companies, Inc.

Life Sales

Second Quarter 2012 (unaudited)

($ in millions)

	June				December 31,
	2012		2011		2011		2010		2009		2008
Life Insurance Sales

Wholesaler Channel
Variable universal life	$	---	$	---	$	0.1	$	0.1	$	6.9	$	26.7
Universal life/interest sensitive		1.0		1.3		2.1		2.6		20.8		229.9
Whole life		0.3		---		---		---		---		---
Term life		---		---		---		---		5.3		21.6
Life insurance annualized premium (1)		1.3		1.3		2.2		2.7		33.0		278.2

Variable universal life		---		---		---		0.2		3.2		9.3
Universal life/interest sensitive		0.1		0.4		0.7		1.1		19.2		54.2
Whole Life		2.3		---		1.6		---		---		---
Life insurance single premium		2.4		0.4		2.3		1.3		22.4		63.5

Variable universal life		---		0.1		0.1		0.3		10.1		36.0
Universal life/interest sensitive		1.1		1.6		2.8		3.7		40.0		284.1
Whole Life		2.6		---		1.6		---		---		---
Term life		---		---		---		---		5.3		21.6
Total wholesaler life insurance premium (2)	$	3.7	$	1.7	$	4.5	$	4.0	$	55.4	$	341.7

Gross life insurance in force	$	118,982.0	$	130,007.0	$	124,622.0	$	136,239.0	$	155,267.0	$	166,781.0
Less Philadelphia Financial Group (PFG) gross life insurance in force		---		---		---		---		4,758.1		4,665.3
Gross life insurance in force (3)	$	118,982.0	$	130,007.0	$	124,622.0	$	136,239.0	$	150,508.9	$	162,115.7

Average face amount for life insurance sales	$	0.3	$	0.5	$	0.5	$	0.6	$	0.9	$	1.0

(1) Annualized premium represents Second 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.

The Phoenix Companies, Inc.

Life Sales

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011								2012
	March		June		September		December		March		June
Life Insurance Sales

Wholesaler Channel
Variable universal life	$	---	$	---	$	---	$	---	$	---	$	---
Universal life/interest sensitive		0.6		0.7		0.4		0.6		0.2		0.8
Whole life		---		---		---		---		0.1		0.2
Life insurance annualized premium (1)		0.6		0.7		0.4		0.6		0.3		1.0

Variable universal life		---		---		---		---		---		---
Universal life/interest sensitive		0.3		0.2		---		0.2		---		0.1
Whole life		---		---		0.9		0.6		0.4		1.9
Life insurance single premium		0.3		0.2		0.9		0.8		0.4		2.0

Variable universal life		---		0.1		---		---		0.1		---
Universal life/interest sensitive		0.9		0.8		0.4		0.8		0.2		0.9
Whole life		---		---		0.9		0.6		0.4		2.1
Total wholesaler life insurance premium (2)	$	0.9	$	0.9	$	1.3	$	1.4	$	0.7	$	3.0

Gross life insurance in force	$	132,884.0	$	130,007.0	$	127,403.0	$	124,622.0	$	121,471.0	$	118,982.0

Average face amount for life insurance sales	$	0.5	$	0.5	$	0.4	$	0.5	$	0.2	$	0.3

(1) Annualized premium represents Second year premiums on an annual basis.

(2) Total premium represents annualized and single premiums.

The Phoenix Companies, Inc.

Annuity Funds Under Management and

Annuity Supplementary Information

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008

Funds Under Management (FUM) (1)
Deposits	$	423.7		$	396.6		$	951.5		$	220.8		$	142.6		$	628.9
Surrenders		(284.4	)		(259.9	)		(485.1	)		(482.5	)		(592.2	)		(819.6	)
Net flows		139.3			136.7			466.4			(261.7	)		(449.6	)		(190.7	)
Deaths		(37.6	)		(31.6	)		(62.7	)		(54.8	)		(51.2	)		(75.4	)
Performance		180.9			185.3			15.1			440.0			738.8			(1,215.7	)
Bonus		9.4			26.6			48.4			12.1			---			---
Fees		(28.9	)		(28.6	)		(55.1	)		(56.2	)		(53.7	)		(55.5	)
Change in FUM		263.1			288.4			412.1			79.4			184.3			(1,537.3	)
Beginning balance		4,495.4			4,083.3			4,083.3			4,003.9			3,819.6			5,356.9
Ending fund balance	$	4,758.5		$	4,371.7		$	4,495.4		$	4,083.3		$	4,003.9		$	3,819.6

VA funds in guaranteed interest accounts (2)	$	422.6		$	444.3		$	436.7		$	459.6		$	502.5		$	664.9

(1) Funds under management (FUM) for all periods have been revised to include group pension product funds.

(2) 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	$	250.9		$	229.0		$	332.0		$	290.0		$	531.8		$	1,105.5
Death benefit in excess of fund value, net of reinsurance		95.4			75.4			150.4			116.4			291.6			709.6
Statutory reserve, net of reinsurance		5.7			5.3			6.2			5.8			8.3			39.0

Variable Annuity Guaranteed Income Benefits
Account balance	$	425.1		$	513.8		$	442.1		$	528.4		$	525.8		$	464.1
Statutory reserve		27.6			18.1			34.6			22.4			39.2			34.7

Variable Annuity Guaranteed Accumulation Benefits
Account balance	$	389.3		$	434.4		$	385.6		$	440.3		$	417.9		$	335.6
Statutory reserve		1.8			---			6.1			0.5			9.6			4.3

Variable Annuity Guaranteed Withdrawal Benefits
Account balance	$	556.9		$	623.5		$	555.4		$	615.7		$	592.2		$	413.2
Statutory reserve		1.2			---			3.8			0.5			12.3			3.5

Variable Annuity Guaranteed Payout Annuity Floor
Account balance	$	16.8		$	19.8		$	21.8		$	27.0		$	22.8		$	22.7
Statutory reserve		3.1			2.4			4.2			3.1			5.5			11.2

The Phoenix Companies, Inc.

Annuity Funds Under Management and

Annuity Supplementary Information

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June

Funds Under Management (FUM) (1)
Deposits	$	205.3		$	191.3		$	279.0		$	275.9		$	227.3		$	196.4
Surrenders		(134.9	)		(125.0	)		(120.4	)		(104.8	)		(141.0	)		(143.4	)
Net flows		70.4			66.3			158.6			171.1			86.3			53.0
Deaths		(17.0	)		(14.6	)		(14.5	)		(16.6	)		(20.3	)		(17.3	)
Performance		146.8			38.5			(362.4	)		192.2			257.4			(76.5	)
Bonus		14.6			12.0			11.9			9.9			4.9			4.5
Fees		(14.4	)		(14.2	)		(13.0	)		(13.5	)		(14.9	)		(14.0	)
Change in FUM		200.4			88.0			(219.4	)		343.1			313.4			(50.3	)
Beginning balance		4,083.3			4,283.7			4,371.7			4,152.3			4,495.4			4,808.8
Ending fund balance	$	4,283.7		$	4,371.7		$	4,152.3		$	4,495.4		$	4,808.8		$	4,758.5

VA funds in guaranteed interest accounts (2)	$	449.2		$	444.3		$	437.2		$	436.7		$	427.7		$	422.6

(1)Funds under management (FUM) for all periods have been revised to include group pension product funds.

(2)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		$	229.0		$	461.6		$	332.0		$	211.0		$	250.9
Death benefit in excess of fund value, net of reinsurance		78.9			75.4			247.1			150.4			66.1			95.4
Statutory reserve, net of reinsurance		5.1			5.3			7.5			6.2			5.2			5.7

Variable Annuity Guaranteed Income Benefits
Account balance	$	530.1		$	513.8		$	433.3		$	442.1		$	459.7		$	425.1
Statutory reserve		17.2			18.1			47.3			34.6			19.1			27.6

Variable Annuity Guaranteed Accumulation Benefits
Account balance	$	445.1		$	434.4		$	365.6		$	385.6		$	412.5		$	389.3
Statutory reserve		---			---			18.3			6.1			---			1.8

Variable Annuity Guaranteed Withdrawal Benefits
Account balance	$	631.6		$	623.5		$	530.4		$	555.4		$	590.3		$	556.9
Statutory reserve		---			---			10.8			3.8			---			1.2

Variable Annuity Guaranteed Payout Annuity Floor
Account balance	$	21.5		$	19.8		$	20.4		$	21.8		$	17.8		$	16.8
Statutory reserve		2.4			2.4			5.5			4.2			2.4			3.1

The Phoenix Companies, Inc.

Fixed Indexed Annuity Funds Under Management

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010		2009		2008

Funds Under Management (FUM)
Deposits	$	381.8		$	371.0		$	890.8		$	---	$	---	$	---
Surrenders		(31.7	)		(11.7	)		(24.6	)		---		---		---
Net Flows		350.1			359.3			866.2			---		---		---
Deaths		(10.6	)		(1.5	)		(5.7	)		---		---		---
Interest credited - fixed accounts		3.2			1.4			2.9			---		---		---
Interest credited - index credits		2.9			1.6			3.4			---		---		---
Bonus		9.4			26.6			48.4			---		---		---
Fees		(4.7	)		(0.5	)		(1.8	)		---		---		---
Change in FUM		350.4			386.9			913.4			---		---		---
Beginning Balance		1,139.4			226.0			226.0			---		---		---
Ending Fund Balance	$	1,489.8		$	612.9		$	1,139.4		$	---	$	---	$	---

The Phoenix Companies, Inc.

Fixed Indexed Annuity Funds Under Management

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June

Funds Under Management (FUM)
Deposits	$	194.7		$	176.3		$	262.1		$	257.7		$	208.8		$	173.0
Surrenders		(4.9	)		(6.8	)		(4.8	)		(8.1	)		(13.6	)		(18.1	)
Net Flows		189.8			169.5			257.3			249.6			195.2			154.9
Deaths		(0.2	)		(1.3	)		(2.3	)		(1.9	)		(5.2	)		(5.4	)
Interest credited - fixed accounts		0.6			0.8			1.0			0.5			1.5			1.7
Interest credited - index credits		0.8			0.8			0.8			1.0			1.7			1.3
Bonus		14.6			12.0			11.9			9.9			4.9			4.5
Fees		(0.1	)		(0.4	)		(0.3	)		(1.0	)		(2.1	)		(2.6	)
Change in FUM		205.5			181.4			268.4			258.1			196.0			154.4
Beginning Balance		226.0			431.5			612.9			881.3			1,139.4			1,335.4
Ending Fund Balance	$	431.5		$	612.9		$	881.3		$	1,139.4		$	1,335.4		$	1,489.8

The Phoenix Companies, Inc.

Deferred Policy Acquisition Costs

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008
Deferred Policy Acquisition Costs:
Variable universal life	$	149.5		$	171.8		$	158.0		$	181.8		$	208.3		$	246.3
Universal life		313.7			421.6			377.4			487.8			677.7			798.4
Variable annuities		120.5			138.1			127.3			148.1			169.0			154.1
Fixed annuities		194.8			90.3			157.3			31.4			5.4			6.0
Traditional life		403.9			401.4			406.9			409.0			418.4			434.7
Offset for unrealized investment gains or losses		(106.4	)		(38.3	)		(64.1	)		(11.6	)		157.8			713.4
Total deferred policy acquisition costs	$	1,076.0		$	1,184.9		$	1,162.8		$	1,246.5		$	1,636.6		$	2,352.9


Deferred Policy Acquisition Costs:
Policy acquisition costs deferred	$	47.6		$	63.2		$	139.7		$	24.8		$	51.8		$	273.7
Costs amortized to expenses:
Recurring costs		(93.2	)		(93.8	)		(171.2	)		(248.5	)		(208.5	)		(315.6	)
Realized investment gains or losses		1.2			(0.3	)		0.1			2.2			5.8			25.8
Offsets to net unrealized investment gains or losses
included in AOCI (1)		(42.4	)		(30.7	)		(52.3	)		(167.0	)		(572.2	)		660.6
Cumulative effect of adoption of new guidance		---			---			---			(1.6	)		11.9			---
Other		---			---			---			---			(5.1	)		14.8
Change in deferred policy acquisition costs		(86.8	)		(61.6	)		(83.7	)		(390.1	)		(716.3	)		659.3
Deferred policy acquisition costs, beginning of period		1,162.8			1,246.5			1,246.5			1,636.6			2,352.9			1,693.6
Deferred policy acquisition costs, end of period	$	1,076.0		$	1,184.9		$	1,162.8		$	1,246.5		$	1,636.6		$	2,352.9

(1)

An offset to deferred policy acquisition costs and AOCI is recorded each period to the extent that, had unrealized holding gains or losses from securities classified as available-for-sale actually been realized, an adjustment to deferred policy acquisition costs amortized using gross profits or gross margins would result.

The Phoenix Companies, Inc.

Deferred Policy Acquisition Costs

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June
Deferred Acquisition Costs:
Variable universal life	$	176.9		$	171.8		$	161.3		$	158.0		$	154.2		$	149.5
Universal life		450.6			421.6			399.9			377.4			341.9			313.7
Variable annuities		142.5			138.1			127.4			127.2			126.1			120.5
Fixed annuities		63.6			90.3			124.1			157.2			175.4			194.8
Traditional life		406.1			401.4			402.8			404.2			402.8			403.9
Offset for unrealized investment gains or losses		(21.8	)		(38.3	)		(48.1	)		(61.2	)		(78.3	)		(106.4	)
Total deferred policy acquisition costs	$	1,217.9		$	1,184.9		$	1,167.4		$	1,162.8		$	1,122.1		$	1,076.0


Deferred Policy Acquisition Costs:
Policy acquisition costs deferred	$	34.0		$	29.0		$	40.2		$	36.3		$	26.1		$	21.5
Costs amortized to expenses:
Recurring costs		(50.9	)		(42.7	)		(45.9	)		(31.5	)		(46.4	)		(46.8	)
Realized investment gains or losses		(0.2	)		(0.1	)		(0.5	)		0.9			(3.8	)		5.0
Offsets to net unrealized investment gains or losses
included in AOCI (1)		(11.5	)		(19.2	)		(11.3	)		(10.3	)		(16.6	)		(25.8	)
Change in deferred policy acquisition costs		(28.6	)		(33.0	)		(17.5	)		(4.6	)		(40.7	)		(46.1	)
Deferred policy acquisition costs, beginning of period		1,246.5			1,217.9			1,184.9			1,167.4			1,162.8			1,122.1
Deferred policy acquisition costs, end of period	$	1,217.9		$	1,184.9		$	1,167.4		$	1,162.8		$	1,122.1		$	1,076.0

(1)

An offset to deferred policy acquisition costs and AOCI is recorded each period to the extent that, had unrealized holding gains or losses from securities classifiedas available-for-sale actually been realized, an adjustment to deferred policy acquisition costs amortized using gross profits or gross margins would result.

The Phoenix Companies, Inc.

Consolidated Statement of Income - GAAP Format (1)

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008
REVENUES
Premiums (2)	$	204.5		$	220.3		$	459.1		$	521.4		$	583.9		$	664.3
Fee income		283.7			308.4			597.1			630.2			648.1			601.3
Net investment income		428.1			412.6			809.3			844.0			785.8			913.7
Net realized investment losses:
Total other-than-temporary impairment ("OTTI") losses		(26.7	)		(14.0	)		(64.6	)		(105.2	)		(201.5	)		(245.0	)
Portion of OTTI losses recognized in other comprehensive income		15.4			5.3			38.9			55.6			93.1			---
Net OTTI losses recognized in earnings		(11.3	)		(8.7	)		(25.7	)		(49.6	)		(108.4	)		(245.0	)
Net realized investment gains (losses), excluding OTTI losses		(12.5	)		(4.4	)		(9.3	)		39.7			6.2			(50.8	)
Net realized investment (losses)		(23.8	)		(13.1	)		(16.4	)		(9.9	)		(102.2	)		(295.8	)
Total revenues		892.5			928.2			1,849.1			1,985.7			1,915.6			1,883.5

BENEFITS AND EXPENSES
Policy benefits, excluding policyholder dividends (2)		513.1			531.2			1,081.9			1,088.7			1,178.2			1,260.2
Policyholder dividends		149.3			137.2			246.9			309.8			226.8			207.5
Policy acquisition cost amortization		92.0			94.1			170.9			246.3			202.7			289.8
Interest expense on indebtedness		15.9			15.9			31.8			31.8			33.1			36.7
Interest expense on non-recourse collateralized obligations		---			---			---			---			---			11.8
Other operating expenses		123.2			119.8			245.9			292.8			318.4			322.0
Total benefits and expenses		893.5			898.2			1,777.4			1,969.4			1,959.2			2,128.0

Income (loss) from continuing operations before income taxes		(1.0	)		30.0			71.7			16.3			(43.6	)		(244.5	)
Income tax expense (benefit)		13.5			9.0			2.0			2.0			232.8			(227.1	)

Income (loss) from continuing operations		(14.5	)		21.0			69.7			14.3			(276.4	)		(17.4	)

Income (loss) from discontinued operations, net of income taxes		(6.8	)		(2.2	)		(22.0	)		12.0			(123.0	)		(549.2	)

Net income (loss)	$	(21.3	)	$	18.8		$	47.7		$	26.3		$	(399.4	)	$	(566.6	)

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

(2)	Prior period amounts have been revised to reflect the correction of an error related to the historical presentation of ceded premiums related to certain reinsurance contracts within the Closed Block. The adjustments reflect the reclassification of ceded premiums from benefits and reserves to revenue. There was no impact to net income(loss), stockholders' equity, or earnings per share.

The Phoenix Companies, Inc.

Consolidated Statement of Income - GAAP Format (1)

Second Quarter 2012 (unaudited)

($ in millions)

Quarters Ended

	2011												2012
	March			June			September			December			March			June
REVENUES
Premiums	$	111.0		$	109.3		$	117.4		$	121.4		$	100.2		$	104.3
Fee income		153.8			154.6			147.6			141.1			146.6			137.2
Net investment income		201.3			211.2			198.3			198.4			209.8			218.2
Net realized investment losses:
Total other-than-temporary impairment ("OTTI") losses		(7.4	)		(6.6	)		(31.0	)		(19.6	)		(11.7	)		(15.0	)
Portion of OTTI losses recognized in other comprehensive income		1.7			3.6			22.6			11.0			5.5			9.9
Net OTTI losses recognized in earnings		(5.7	)		(3.0	)		(8.4	)		(8.6	)		(6.2	)		(5.1	)
Net realized investment gains (losses), excluding OTTI losses		(10.5	)		6.1			14.5			(0.8	)		(9.4	)		(3.1	)
Net realized investment gains (losses)		(16.2	)		3.1			6.1			(9.4	)		(15.6	)		(8.2	)
Total revenues		449.9			478.2			469.4			451.5			441.0			451.5

BENEFITS AND EXPENSES
Policy benefits, excluding policyholder dividends		260.4			270.8			267.8			282.9			254.1			259.0
Policyholder dividends		63.7			73.6			51.5			58.2			65.1			84.3
Policy acquisition cost amortization		51.1			42.8			46.5			30.5			50.2			41.8
Interest expense on indebtedness		7.9			7.9			7.9			7.9			7.9			7.9
Other operating expenses		60.2			59.6			54.9			71.2			62.4			60.8
Total benefits and expenses		443.3			454.7			428.6			450.7			439.7			453.8

Income (loss) from continuing operations before income taxes		6.6			23.5			40.8			0.8			1.3			(2.3	)
Income tax expense (benefit)		1.5			7.6			(6.7	)		(0.3	)		8.9			4.6

Income (loss) from continuing operations		5.1			15.9			47.5			1.1			(7.6	)		(6.9	)

Loss from discontinued operations, net of income taxes		(1.5	)		(0.7	)		(4.7	)		(15.1	)		(0.5	)		(6.3	)

Net income (loss)	$	3.6		$	15.2		$	42.8		$	(14.0	)	$	(8.1	)	$	(13.2	)

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

The Phoenix Companies, Inc.

Consolidated Balance Sheet - Preliminary

Second Quarter 2012 (unaudited)

($ in millions)

	June			December 31,
	2012			2011			2010			2009			2008
ASSETS:
Available-for-sale debt securities, at fair value	$	12,335.3		$	11,890.0		$	10,893.8		$	10,333.0		$	9,817.4
Available-for-sale equity securities, at fair value		42.1			35.7			47.5			25.2			25.2
Limited partnerships and other investments		618.5			601.3			600.0			188.6			200.8
Policy loans, at unpaid principal balances		2,362.4			2,379.3			2,386.5			2,324.4			2,477.5
Derivative instruments		186.6			174.8			136.9			539.7			616.9
Fair value option investments		87.0			86.6			102.1			69.3			84.1
		15,631.9			15,167.7			14,166.8			13,480.2			13,221.9
Available-for-sale debt and equity securities pledged as collateral, at fair value		---			---			---			---			148.0
Total investments		15,631.9			15,167.7			14,166.8			13,480.2			13,369.9
Cash and cash equivalents		248.9			194.3			121.9			256.7			373.8
Accrued investment income		186.6			175.6			169.5			176.3			203.2
Receivables		422.5			415.1			405.7			356.6			358.0
Deferred policy acquisition costs		1,076.0			1,162.8			1,246.5			1,636.6			2,352.8
Deferred income taxes		91.7			118.2			116.4			176.1			564.8
Other assets		156.8			164.6			180.5			195.8			211.0
Discontinued operations assets		43.6			69.2			60.4			3,620.4			4,293.9
Separate account assets		3,336.8			3,817.6			4,416.8			4,418.1			3,860.1
Total assets	$	21,194.8		$	21,285.1		$	20,884.5		$	24,316.8		$	25,587.5

LIABILITIES:
Policy liabilities and accruals	$	13,040.1		$	12,981.1		$	13,007.1		$	13,167.0		$	13,947.8
Policyholder deposit funds		2,767.1			2,429.4			1,494.1			1,342.7			1,616.6
Indebtedness		426.9			426.9			427.7			428.0			458.0
Other liabilities		642.7			613.8			546.4			529.9			651.0
Discontinued operations liabilities		34.6			58.3			49.4			3,585.4			4,184.4
Non-recourse collateralized debt obligations		---			---			---			---			245.2
Separate account liabilities		3,336.8			3,817.6			4,416.8			4,418.1			3,860.1
Total liabilities		20,248.2			20,327.1			19,941.5			23,471.1			24,963.1

STOCKHOLDERS' EQUITY:
Common stock, $.01 par value: 116.0 million and 116.3 million shares outstanding		1.3			1.3			1.3			1.3			1.3
Additional paid-in capital		2,631.0			2,630.5			2,631.0			2,627.3			2,626.4
Accumulated other comprehensive loss		(124.9	)		(134.8	)		(102.7	)		(174.4	)		(782.3	)
Accumulated deficit		(1,380.8	)		(1,359.5	)		(1,407.1	)		(1,429.0	)		(1,041.5	)
Treasury stock, at cost: 11.7 million and 11.3 million shares		(180.0	)		(179.5	)		(179.5	)		(179.5	)		(179.5	)
Total stockholders' equity		946.6			958.0			943.0			845.7			624.4
Total liabilities and stockholders' equity	$	21,194.8		$	21,285.1		$	20,884.5		$	24,316.8		$	25,587.5

The Phoenix Companies, Inc.

General Account Investment Portfolio Summary (1)

Second Quarter 2012 (unaudited)

($ millions)

	Total Debt Securities						Public Debt Securities						Private Debt Securities
	6/30/2012			12/31/2011			6/30/2012			12/31/2011			6/30/2012			12/31/2011
Debt Securities by Credit Quality (Carrying Value)

AAA/AA/A	$	7,035.8		$	7,008.1		$	5,264.8		$	5,285.0		$	1,771.0		$	1,723.1
BBB		4,260.7			3,916.1			2,608.6			2,385.5			1,652.1			1,530.6
Total Investment Grade		11,296.5			10,924.2			7,873.4			7,670.5			3,423.1			3,253.7
BB		629.2			568.1			531.0			478.3			98.2			89.8
B		215.6			207.9			102.9			110.0			112.7			97.9
CCC and Lower		134.0			124.4			73.8			63.8			60.2			60.6
In or Near Default		60.0			65.4			34.8			35.1			25.2			30.3
Total Debt Securities	$	12,335.3		$	11,890.0		$	8,615.9		$	8,357.7		$	3,719.4		$	3,532.3

% Below Investment Grade		8.4	%		8.1	%		8.6	%		8.2	%		8.0	%		7.9	%


Unrealized Gains and Losses on Debt and Equity Securities
As of 6/30/12
	Total						Outside Closed Block						Closed Block
	Gains			Losses			Gains			Losses			Gains			Losses
Total Debt Securities	$	1,009.1		$	(262.7	)	$	384.8		$	(175.9	)	$	624.3		$	(86.8	)
Equity Securities		13.4			(5.7	)		8.4			(2.7	)		5.0			(3.0	)
Total Unrealized Gains (Losses)		1,022.5			(268.4	)		393.2			(178.6	)		629.3			(89.8	)

Applicable PDO		629.3			(89.8	)		---			---			629.3			(89.8	)
Applicable DAC (Credit)		208.7			(84.0	)		208.7			(84.0	)		---			---
Applicable Deferred Income Tax (Benefit)		64.6			(33.1	)		64.6			(33.1	)		---			---
Total Offsets to Net Unrealized Gains (Losses)		902.6			(206.9	)		273.3			(117.1	)		629.3			(89.8	)
Net Unrealized Gains (Losses)	$	119.9		$	(61.5	)	$	119.9		$	(61.5	)	$	---		$	---
Net Unrealized Gains	$	58.4					$	58.4					$	---

(1) Excludes debt and equity securities pledged as collateral.

The Phoenix Companies, Inc.

General Account GAAP Net Investment Income Yields (1)

Second Quarter 2012 (unaudited)

($ in millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008
GAAP Net Investment Income
Debt securities	$	305.1		$	304.0		$	612.2		$	601.5		$	648.5		$	708.4
Equity securities		1.9			0.6			1.1			2.4			0.4			4.3
Limited partnerships and other investments		43.4			24.4			36.8			74.3			(36.2	)		13.5
Policy loans		85.0			85.6			171.8			171.7			183.6			187.0
Fair value option investments		0.8			2.2			(2.3	)		7.2			1.5			---
Cash and cash equivalents		---			---			---			0.1			0.3			7.5
Total cash and invested assets		436.2			416.8			819.6			857.2			798.1			920.7
Less: Discontinued operations		1.2			1.0			2.1			5.0			4.8			6.0
Less: Investment expenses		6.9			3.2			8.2			8.2			7.5			8.2
Total net investment income	$	428.1		$	412.6		$	809.3		$	844.0		$	785.8		$	906.5

Annualized Yields
Debt securities		5.1	%		5.5	%		5.3	%		5.7	%		6.4	%		7.1	%
Equity securities		9.5	%		2.4	%		2.7	%		5.2	%		1.7	%		4.6	%
Limited partnerships and other investments (2)		15.2	%		7.0	%		6.3	%		13.2	%		-6.3	%		-0.7	%
Policy loans		7.4	%		7.5	%		7.5	%		7.6	%		8.0	%		7.7	%
Fair value option investments		1.9	%		4.9	%		-2.6	%		7.5	%		-2.2	%		0.0	%
Cash and cash equivalents		0.0	%		0.0	%		0.0	%		0.1	%		0.2	%		2.2	%
Total cash and invested assets		5.8	%		5.9	%		5.6	%		6.2	%		6.0	%		6.8	%

Investment expenses and discontinued operations		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Total net investment income yields		5.7	%		5.7	%		5.5	%		6.1	%		5.9	%		6.7	%

(1) Excludes debt and equity securities pledged as collateral.

(2) Yield calculation excludes derivatives

The Phoenix Companies, Inc.

General Account GAAP Net Investment Income Yields (1)

Second Quarter 2012 (unaudited)

($ in millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June
GAAP Net Investment Income
Debt securities	$	148.1		$	155.8		$	154.8		$	153.5		$	152.6		$	152.4
Equity securities		0.6			---			0.5			---			0.7			1.2
Limited partnerships and other investments		10.5			13.9			5.3			7.1			16.7			26.7
Policy loans		42.0			43.6			42.5			43.7			42.7			42.3
Fair value option investments		2.4			(0.2	)		(2.2	)		(2.3	)		1.8			(1.0	)
Total cash and invested assets		203.6			213.1			200.9			202.0			214.5			221.6
Less: Discontinued operations		0.5			0.5			0.5			0.6			0.7			0.5
Less: Investment expenses		1.8			1.4			2.0			3.0			4.0			2.9
Total net investment income	$	201.3		$	211.2		$	198.4		$	198.4		$	209.9		$	218.2

Annualized Yields
Debt securities		5.5	%		5.7	%		5.6	%		5.3	%		5.2	%		5.1	%
Equity securities		4.9	%		0.0	%		4.2	%		0.0	%		7.6	%		12.0	%
Limited partnerships and other investments (2)		7.3	%		9.7	%		3.5	%		4.8	%		11.7	%		19.0	%
Policy loans		7.3	%		7.6	%		7.5	%		7.7	%		7.4	%		7.4	%
Fair value option investments		10.4	%		-0.9	%		-9.3	%		-10.0	%		8.7	%		-4.4	%
Cash and cash equivalents		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Total cash and invested assets		5.9	%		6.0	%		5.7	%		5.5	%		5.8	%		5.9	%

Investment expenses and discontinued operations		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Total net investment income yields		5.8	%		5.9	%		5.6	%		5.4	%		5.7	%		5.8	%

(1) Excludes debt and equity securities pledged as collateral.

(2) Yield calculation excludes derivatives

The Phoenix Companies, Inc.

General Account Realized Investment Gains and Losses

Second Quarter 2012 (unaudited)

($ Millions)

	June						December 31,
	2012			2011			2011			2010			2009			2008
Realized Investment Gains and Losses
Debt security	$	(9.8	)	$	(8.7	)	$	(25.7	)	$	(49.0	)	$	(93.0	)	$	(224.0	)
Equity security		(1.5	)		---			---			(0.6	)		(5.2	)		(2.7	)
Debt and equity securities pledged as collateral		---			---			---			---			---			(2.3	)
Other invested asset		---			---			---			---			(10.2	)		(16.0	)
Total impairment losses		(11.3	)		(8.7	)		(25.7	)		(49.6	)		(108.4	)		(245.0	)
Debt security net transaction		4.6			6.3			7.9			45.4			(23.8	)		(9.8	)
Equity security net transaction		---			0.1			3.7			---			2.2			(29.5	)
Limited partnerships and other investments net transaction		1.4			(1.6	)		0.2			(1.3	)		(2.2	)		(1.6	)
Debt and equity securities pledged as collateral		---			---			---			---			---			2.2
Sale of Goodwin Capital Advisers, Inc.		---			---			4.0			---			---			---
CDO deconsolidation		---			---			---			---			57.0			---
Total net transactions		6.0			4.8			15.8			44.1			33.2			(38.7	)
Realized gains (losses) on fair value option securities		0.8			1.0			(0.6	)		3.5			4.0			(18.4	)
Realized gains (losses) on derivative instruments		(23.0	)		(15.1	)		27.2			(25.2	)		(121.1	)		123.4
Realized gains (losses) on embedded derivatives (1)		3.7			4.9			(33.1	)		17.3			90.1			(117.1	)
Net realized losses		(23.8	)		(13.1	)		(16.4	)		(9.9	)		(102.2	)		(295.8	)

Closed block applicable PDO (reduction)		(2.9	)		(1.6	)		(0.3	)		(9.4	)		40.5			120.2
Applicable deferred acquisition costs (credit)		1.1			0.6			---			2.2			5.8			25.7
Applicable income tax expense		8.3			4.6			4.2			5.6			6.6			42.7
Debt and equity securities pledged as collateral		---			---			---			---			---			0.1
Realized gains (losses) on def. comp. portion fair value option securities		(0.8	)		(0.9	)		0.6			(3.5	)		(4.0	)		18.4
Net realized investment losses included in net income (loss)	$	(18.1	)	$	(10.4	)	$	(11.9	)	$	(15.0	)	$	(53.3	)	$	(88.7	)

(1)

Beginning in the second quarter 2011, changes in fair value of fixed indexed annuity contract embedded derivatives are recorded in policy benefits, excluding policyholder dividends.

The Phoenix Companies, Inc.

General Account Realized Investment Gains and Losses

Second Quarter 2012 (unaudited)

($ Millions)

Quarters ended

	2011												2012
	March			June			September			December			March			June
Realized Investment Gains and Losses
Debt security	$	(5.7	)	$	(3.0	)	$	(8.4	)	$	(8.6	)	$	(6.2	)	$	(3.6	)
Equity security		---			---			---			---			---			(1.5	)
Total impairment losses		(5.7	)		(3.0	)		(8.4	)		(8.6	)		(6.2	)		(5.1	)
Debt security net transaction		2.0			4.3			3.1			(1.5	)		1.2			3.4
Equity security net transaction		---			0.1			(0.1	)		3.7			---			---
Limited partnerships and other investments net transaction		(1.6	)		---			(0.3	)		2.1			0.8			0.6
Sale of Goodwin Capital Advisers, Inc.		---			---			---			4.0			---			---
Total net transactions		0.4			4.4			2.7			8.3			2.0			4.0
Realized gains (losses) on fair value option securities		(0.4	)		1.4			(2.7	)		1.1			1.9			(1.1	)
Realized gains (losses) on derivative instruments		(20.1	)		5.0			62.9			(20.6	)		(36.1	)		13.1
Realized gains (losses) on embedded derivatives (1)		9.6			(4.7	)		(48.4	)		10.4			22.8			(19.1	)
Net realized gains (losses)		(16.2	)		3.1			6.1			(9.4	)		(15.6	)		(8.2	)

Closed block applicable PDO (reduction)		1.6			(3.2	)		0.8			0.5			0.5			(3.4	)
Applicable deferred acquisition costs (credit)		(0.6	)		1.2			---			(0.5	)		(0.2	)		1.3
Applicable income tax expense (benefit)		(4.1	)		8.7			(2.1	)		1.8			6.0			2.3
Realized gains (losses) on def. comp. portion fair value option securities		(0.5	)		(0.4	)		2.6			(1.1	)		(1.9	)		1.1
Net realized investment gains (losses) included in net income (loss)	$	(19.8	)	$	9.4		$	7.4		$	(8.7	)	$	(11.2	)	$	(6.9	)

(1)	Beginning in the second quarter 2011, changes in fair value of fixed indexed annuity contract embedded derivatives are recorded in policy benefits, excluding policyholder dividends.

The Phoenix Companies, Inc.

Impacts of Adoption of Accounting Standards Update No. 2010-26

($ in millions)

In October 2010, the FASB issued amended guidance to ASC 944, Financial Services – Insurance, to address the diversity in practice for accounting for costs associated with acquiring or renewing insurance contracts. The amendment clarifies the definition of acquisition costs (i.e., costs which qualify for deferral) to incremental direct costs that result directly from, and are essential to, a contract and would not have been incurred by the insurance entity had the contract transaction not occurred. Therefore, only costs related to successful efforts of acquiring a new, or renewal, contract should be deferred.

The selected financial information shown herein reflects the retrospective adoption of Accounting Standards Update No. 2010-26, "Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts" ("ASU 2010-26"), effective January 1, 2012. The effect of retrospective adoption reduced deferred policy acquisition costs and beginning stockholders’ equity in each period primarily related to lower deferrals associated with expenses not directly related to new policy sales.

All prior period amounts related to the adoption of ASU 2010-26 have been revised accordingly within this Financial Supplement.

	Quarters ended												Years ended
	March 31, 2011			June 30, 2011			September 30, 2011			December 31, 2011			December 31, 2011			December 31, 2010			December 31, 2009			December 31, 2008

Impacts to Total Stockholders' Equity
Stockholders' Equity as previously reported	$	1,146.5		$	1,163.1		$	1,241.0		$	1,126.2		$	1,126.2		$	1,155.5		$	1,131.1		$	865.1
Impact of adoption of ASU 2010-26 on stockholders' equity		(199.9	)		(188.0	)		(176.6	)		(168.2	)		(168.2	)		(212.5	)		(285.4	)		(240.7	)
Stockholders' Equity as currently reported	$	946.6		$	975.1		$	1,064.4		$	958.0		$	958.0		$	943.0		$	845.7		$	624.4

Impacts to Policy Cost Amortization
Policy Cost Amortization as previously reported	$	62.7		$	51.8		$	57.5		$	38.7		$	210.6		$	298.2		$	260.6		$	406.0
Impact of adoption of ASU 2010-26 on policy cost amortization		(11.6	)		(9.0	)		(11.0	)		(8.1	)		(39.7	)		(51.9	)		(57.9	)		(116.2	)
Policy Cost Amortization as currently reported	$	51.1		$	42.8		$	46.5		$	30.6		$	170.9		$	246.3		$	202.7		$	289.8

Impacts to To Pre-Tax Operating Income
Pre-Tax Operating Income as previously reported	$	10.4		$	15.1		$	20.0		$	2.6		$	48.1		$	(14.2	)	$	(27.2	)	$	(159.6	)
Impact of adoption of ASU 2010-26 on pre-tax operating income		11.5			9.0			11.0			8.0			39.5			51.0			43.6			50.7
Pre -Tax Operating Income as currently reported	$	21.9		$	24.1		$	31.0		$	10.6		$	87.6		$	36.8		$	16.4		$	(108.9	)

Impacts to Net Income
Net Income as previously reported	$	(6.1	)	$	4.4		$	31.8		$	(22.0	)	$	8.1		$	(12.6	)	$	(319.0	)	$	(726.0	)
Impact of adoption of ASU 2010-26 on net income		9.7			10.8			11.0			8.0			39.6			38.9			(80.4	)		159.4
Net Income as currently reported	$	3.6		$	15.2		$	42.8		$	(14.0	)	$	47.7		$	26.3		$	(399.4	)	$	(566.6	)

PHOENIX COMPANIES INC/DE - FORM 8-K - EX-99.1 - FINANCIAL SUPPLEMENT - August 3, 2012

Attached files

PHOENIX COMPANIES INC/DE Reports