Attached files
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| 8-K - 8-K - PHOENIX COMPANIES INC/DE | form8-k09302015.htm |
EXHIBIT 99.1
Financial Supplement
The Phoenix Companies, Inc.
September 30, 2015
The Phoenix Companies, Inc. | ||||
Financial Supplement | ||||
Wall Street Coverage | ||||
Firm | Analyst | For More Information | ||
JP Morgan | Jimmy Bhullar | To receive additional information, including financial supplements and Securities and Exchange Commission filings along with access to other shareholder services, visit the Investor Relations Section on our Web site at Phoenixwm.com or contact our Investor Relations Department at: | ||
The Phoenix Companies, Inc. | ||||
Transfer Agent and Registrar | Investor Relations | |||
For information or assistance regarding your account, please contact our transfer agent and registrar: | One American Row | |||
The Phoenix Companies, Inc. C/O Computershare | P.O. Box 5056, Hartford, CT 06102-5056 | |||
P.O. Box 30170, College Station, TX 77842-3170 | Phone: 1-860-403-7100 | |||
Fax: 1-860-403-7880 | ||||
e-mail: pnx.ir@phoenixwm.com | ||||
Shareholder Information | ||||
Security Listings | ||||
The common stock of The Phoenix Companies, Inc. is traded on the New York Stock Exchange (NYSE) under the symbol "PNX." Our 7.45 percent bond is traded on the NYSE under the symbol "PFX." | ||||
For more information on our products and services, call your Phoenix representative or visit our Web site at Phoenixwm.com. | ||||
In addition to financial measures presented in accordance with Generally Accepted Accounting Principles (“GAAP”), we use non-GAAP financial measures such as stockholder’s equity, excluding other accumulated OCI, and book value per diluted share, excluding other accumulated OCI, both of which eliminate the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Stockholder’s equity and book value per diluted share are the most directly comparable GAAP measures. A reconciliation of stockholder’s equity to stockholder’s equity, excluding other accumulated OCI, and book value per diluted share to book value per diluted share, excluding other accumulated OCI, for the periods presented herein is set forth on page 1. Therefore, investors should evaluate both GAAP and non-GAAP financial measures when reviewing our performance. Investors should note that our calculation of these measures may differ from similar measures used by other companies. Management believes that these measures provide investors with additional insight into the underlying trends in our operations. | ||||
The Phoenix Companies, Inc. Financial Supplement September 2015 (unaudited) Table of Contents | |
Financial Highlights | 1 |
Consolidated Interim Unaudited Statements of Operations | 2 |
Consolidated Interim Unaudited Statements of Operations excluding Closed Block | 4 |
Consolidated Balance Sheets | 6 |
Closed Block Assets and Liabilities | 7 |
Variable Universal Life Funds on Deposit | 8 |
Universal Life Funds on Deposit | 10 |
Life Sales | 12 |
Total Annuity Funds on Deposit | 14 |
Fixed Indexed Annuity Funds on Deposit | 16 |
Deferred Policy Acquisition Costs | 18 |
General Account Investment Portfolio Summary | 19 |
General Account GAAP Net Investment Income Yields | 20 |
Net Realized Gains (Losses) | 21 |
The Phoenix Companies, Inc. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
Third Quarter 2015 (unaudited) | ||||||||||||||||||||
(amount in millions, except per share data) | ||||||||||||||||||||
For the Period Ended: | September 30, | December 31, | ||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Balance Sheet Information | ||||||||||||||||||||
General account invested assets | $ | 16,604.0 | $ | 16,750.1 | $ | 16,083.1 | $ | 16,228.7 | $ | 15,294.7 | ||||||||||
Separate account assets | 2,533.2 | 3,020.7 | 3,402.3 | 3,316.5 | 3,816.9 | |||||||||||||||
Total assets | 21,288.4 | 21,745.9 | 21,641.1 | 21,634.9 | 21,491.9 | |||||||||||||||
Indebtedness | 378.9 | 378.9 | 378.8 | 378.8 | 426.9 | |||||||||||||||
Total stockholders' equity attributable to The Phoenix Companies, Inc. | 213.2 | 326.6 | 589.5 | 504.7 | 688.6 | |||||||||||||||
Accumulated OCI | (235.5 | ) | (234.4 | ) | (185.0 | ) | (243.8 | ) | (226.4 | ) | ||||||||||
Total stockholders' equity, excluding other accumulated OCI | $ | 448.7 | $ | 561.0 | $ | 774.5 | $ | 748.5 | $ | 915.4 | ||||||||||
Debt to total capitalization [1] | 45.8 | % | 40.3 | % | 32.9 | % | 33.6 | % | 31.8 | % | ||||||||||
Book value per share | $ | 37.07 | $ | 56.82 | $ | 102.27 | $ | 87.47 | $ | 118.42 | ||||||||||
Per share impact of other accumulated OCI | $ | (40.95 | ) | $ | (40.78 | ) | $ | (32.10 | ) | $ | (42.25 | ) | $ | (39.00 | ) | |||||
Book value per share, excluding other accumulated OCI | $ | 78.02 | $ | 97.60 | $ | 134.37 | $ | 129.72 | $ | 157.42 | ||||||||||
Period-end common shares outstanding | 5,751 | 5,748 | 5,764 | 5,770 | 5,815 | |||||||||||||||
Indebtedness: | ||||||||||||||||||||
Surplus notes | $ | 126.2 | $ | 126.2 | $ | 126.1 | $ | 126.1 | $ | 174.2 | ||||||||||
Senior unsecured bonds - due 2032 | 252.7 | 252.7 | 252.7 | 252.7 | 252.7 | |||||||||||||||
Total indebtedness | $ | 378.9 | $ | 378.9 | $ | 378.8 | $ | 378.8 | $ | 426.9 | ||||||||||
Statutory Financial Data for Phoenix Life Insurance Company [2] | ||||||||||||||||||||
Capital, surplus and surplus notes | $ | 358.6 | $ | 609.2 | $ | 597.0 | $ | 793.6 | $ | 728.8 | ||||||||||
Asset valuation reserve (AVR) | 155.3 | 143.0 | 138.2 | 128.9 | 116.9 | |||||||||||||||
Capital, surplus, surplus notes and AVR | $ | 513.9 | $ | 752.2 | $ | 735.2 | $ | 922.5 | $ | 845.7 | ||||||||||
Policyholder dividend liability | $ | 167.9 | $ | 174.7 | $ | 176.6 | $ | 180.5 | $ | 223.1 | ||||||||||
Interest maintenance reserve | $ | (56.9 | ) | $ | (60.5 | ) | $ | (66.2 | ) | $ | (55.5 | ) | $ | (57.6 | ) | |||||
Statutory gain from operations [3] | $ | 16.7 | $ | 116.2 | $ | 79.8 | $ | 160.5 | $ | 130.5 | ||||||||||
Statutory net income (loss) excluding de-stack [3] | $ | 9.0 | $ | 132.5 | $ | (21.0 | ) | $ | 156.2 | $ | 95.0 | |||||||||
Realized loss on de-stack [3] [5] | (687.9 | ) | — | — | — | — | ||||||||||||||
Statutory net income (loss) [3] [4] | $ | (678.9 | ) | $ | 132.5 | $ | (21.0 | ) | $ | 156.2 | $ | 95.0 | ||||||||
———————
[1] | This debt to total capitalization is based on total stockholders' equity, excluding other accumulated OCI. |
[2] | Phoenix Life Insurance Company is required to file financial statements with state regulatory authorities prepared on an accounting basis prescribed or permitted by the Insurance Department of the State of New York. |
[3] | Amounts are on a year-to-date basis. |
[4] | As a result of discussions with its regulators related to the intercompany reinsurance treaty between Phoenix Life and PHL Variable executed in the second quarter of 2015, the Company’s operating subsidiaries were de-stacked, effective July 1, 2015. The impact of the de-stack on Phoenix Life’s capital and surplus was $262.2 million. |
[5] | Prior to de-stacking this amount was recognized as an unrealized loss within statutory capital and surplus. Upon de-stacking, the amount was realized within net income with the corresponding reduction in unrealized losses in surplus. |
1
The Phoenix Companies, Inc. | |||||||||||||||||||||||
Consolidated Interim Unaudited Statements of Operations [1] | |||||||||||||||||||||||
Third Quarter 2015 | |||||||||||||||||||||||
(amount in millions, except per share data) | |||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Premiums | $ | 251.1 | $ | 240.9 | $ | 332.1 | $ | 351.6 | $ | 402.3 | $ | 449.4 | |||||||||||
Fee income | 404.1 | 404.2 | 545.1 | 550.3 | 556.0 | 596.9 | |||||||||||||||||
Net investment income | 639.1 | 607.9 | 830.9 | 789.7 | 827.8 | 824.0 | |||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||
Total other-than-temporary impairment ("OTTI") losses | (12.3 | ) | (4.7 | ) | (7.7 | ) | (7.0 | ) | (50.8 | ) | (65.8 | ) | |||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (1.2 | ) | (0.4 | ) | (0.4 | ) | (4.8 | ) | 22.9 | 38.5 | |||||||||||||
Net OTTI losses recognized in earnings | (13.5 | ) | (5.1 | ) | (8.1 | ) | (11.8 | ) | (27.9 | ) | (27.3 | ) | |||||||||||
Net realized gains (losses), excluding OTTI losses | (16.3 | ) | (21.4 | ) | (33.1 | ) | 27.8 | 11.1 | (5.3 | ) | |||||||||||||
Net realized gains (losses) | (29.8 | ) | (26.5 | ) | (41.2 | ) | 16.0 | (16.8 | ) | (32.6 | ) | ||||||||||||
Gain on debt repurchase | — | — | — | — | 11.9 | 0.2 | |||||||||||||||||
Total revenues | 1,264.5 | 1,226.5 | 1,666.9 | 1,707.6 | 1,781.2 | 1,837.9 | |||||||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||||||||||
Policy benefits | 875.7 | 795.2 | 1,119.2 | 965.1 | 1,162.4 | 1,138.8 | |||||||||||||||||
Policyholder dividends | 155.7 | 171.8 | 244.8 | 235.9 | 292.1 | 259.4 | |||||||||||||||||
Policy acquisition cost amortization | 71.8 | 73.1 | 119.6 | 103.1 | 196.1 | 166.7 | |||||||||||||||||
Interest expense on indebtedness | 21.2 | 21.2 | 28.3 | 28.3 | 30.8 | 31.8 | |||||||||||||||||
Other operating expenses | 276.7 | 258.6 | 350.2 | 337.1 | 253.3 | 246.6 | |||||||||||||||||
Total benefits and expenses | 1,401.1 | 1,319.9 | 1,862.1 | 1,669.5 | 1,934.7 | 1,843.3 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | (136.6 | ) | (93.4 | ) | (195.2 | ) | 38.1 | (153.5 | ) | (5.4 | ) | ||||||||||||
Income tax expense (benefit) | (32.2 | ) | (21.8 | ) | 10.5 | 8.5 | (4.7 | ) | 12.4 | ||||||||||||||
Income (loss) from continuing operations | (104.4 | ) | (71.6 | ) | (205.7 | ) | 29.6 | (148.8 | ) | (17.8 | ) | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | (1.2 | ) | (1.5 | ) | (3.5 | ) | (2.9 | ) | (15.6 | ) | (21.6 | ) | |||||||||||
Net income (loss) | (105.6 | ) | (73.1 | ) | (209.2 | ) | 26.7 | (164.4 | ) | (39.4 | ) | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 6.7 | (0.2 | ) | 4.0 | 0.7 | 0.6 | (0.5 | ) | |||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (112.3 | ) | $ | (72.9 | ) | $ | (213.2 | ) | $ | 26.0 | $ | (165.0 | ) | $ | (38.9 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | |||||||||||||||||||||||
Income (loss) from continuing operations – basic | $ | (19.32 | ) | $ | (12.42 | ) | $ | (36.48 | ) | $ | 5.04 | $ | (25.90 | ) | $ | (2.98 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (19.32 | ) | $ | (12.42 | ) | $ | (36.48 | ) | $ | 5.01 | $ | (25.90 | ) | $ | (2.98 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.21 | ) | $ | (0.26 | ) | $ | (0.61 | ) | $ | (0.51 | ) | $ | (2.70 | ) | $ | (3.71 | ) | |||||
Income (loss) from discontinued operations – diluted | $ | (0.21 | ) | $ | (0.26 | ) | $ | (0.61 | ) | $ | (0.50 | ) | $ | (2.70 | ) | $ | (3.71 | ) | |||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (19.53 | ) | $ | (12.68 | ) | $ | (37.09 | ) | $ | 4.53 | $ | (28.60 | ) | $ | (6.69 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (19.53 | ) | $ | (12.68 | ) | $ | (37.09 | ) | $ | 4.51 | $ | (28.60 | ) | $ | (6.69 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,751 | 5,747 | 5,748 | 5,735 | 5,770 | 5,815 | |||||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,751 | 5,747 | 5,748 | 5,764 | 5,770 | 5,815 | |||||||||||||||||
———————
[1] | Certain reclassifications have been made to prior periods to conform with the current presentation. |
2
The Phoenix Companies, Inc. | |||||||||||||||||||||||||||
Consolidated Interim Unaudited Statements of Operations [1] | |||||||||||||||||||||||||||
Third Quarter 2015 | |||||||||||||||||||||||||||
(amount in millions, except per share data) | |||||||||||||||||||||||||||
Quarters ended | 2014 | 2015 | |||||||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||
Premiums | $ | 79.6 | $ | 83.2 | $ | 78.1 | $ | 91.2 | $ | 78.4 | $ | 86.6 | $ | 86.1 | |||||||||||||
Fee income | 134.8 | 134.2 | 135.2 | 140.9 | 133.8 | 135.2 | 135.1 | ||||||||||||||||||||
Net investment income | 211.5 | 191.5 | 204.9 | 223.0 | 209.3 | 202.3 | 227.5 | ||||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||
Total other-than-temporary impairment ("OTTI") losses | — | (1.0 | ) | (3.7 | ) | (3.0 | ) | (7.0 | ) | (0.9 | ) | (4.4 | ) | ||||||||||||||
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (0.2 | ) | — | (0.2 | ) | — | (1.4 | ) | (0.2 | ) | 0.4 | ||||||||||||||||
Net OTTI losses recognized in earnings | (0.2 | ) | (1.0 | ) | (3.9 | ) | (3.0 | ) | (8.4 | ) | (1.1 | ) | (4.0 | ) | |||||||||||||
Net realized gains (losses), excluding OTTI losses | (26.7 | ) | 5.2 | 0.1 | (11.7 | ) | (7.7 | ) | (1.0 | ) | (7.6 | ) | |||||||||||||||
Net realized gains (losses) | (26.9 | ) | 4.2 | (3.8 | ) | (14.7 | ) | (16.1 | ) | (2.1 | ) | (11.6 | ) | ||||||||||||||
Total revenues | 399.0 | 413.1 | 414.4 | 440.4 | 405.4 | 422.0 | 437.1 | ||||||||||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||||||||||||||
Policy benefits | 230.3 | 301.3 | 263.6 | 324.0 | 292.0 | 287.3 | 296.4 | ||||||||||||||||||||
Policyholder dividends | 72.2 | 42.6 | 57.0 | 73.0 | 40.1 | 55.0 | 60.6 | ||||||||||||||||||||
Policy acquisition cost amortization | 24.6 | 19.1 | 29.4 | 46.5 | 17.1 | 24.6 | 30.1 | ||||||||||||||||||||
Interest expense on indebtedness | 7.1 | 7.1 | 7.0 | 7.1 | 7.1 | 7.1 | 7.0 | ||||||||||||||||||||
Other operating expenses | 97.2 | 84.4 | 77.0 | 91.6 | 123.8 | 82.8 | 70.1 | ||||||||||||||||||||
Total benefits and expenses | 431.4 | 454.5 | 434.0 | 542.2 | 480.1 | 456.8 | 464.2 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (32.4 | ) | (41.4 | ) | (19.6 | ) | (101.8 | ) | (74.7 | ) | (34.8 | ) | (27.1 | ) | |||||||||||||
Income tax expense (benefit) | (4.8 | ) | (19.6 | ) | 2.6 | 32.3 | (2.2 | ) | (13.0 | ) | (17.0 | ) | |||||||||||||||
Income (loss) from continuing operations | (27.6 | ) | (21.8 | ) | (22.2 | ) | (134.1 | ) | (72.5 | ) | (21.8 | ) | (10.1 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | (0.6 | ) | (0.6 | ) | (0.3 | ) | (2.0 | ) | (0.5 | ) | (0.6 | ) | (0.1 | ) | |||||||||||||
Net income (loss) | (28.2 | ) | (22.4 | ) | (22.5 | ) | (136.1 | ) | (73.0 | ) | (22.4 | ) | (10.2 | ) | |||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (0.1 | ) | — | (0.1 | ) | 4.2 | 1.0 | 0.2 | 5.5 | ||||||||||||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ | (28.1 | ) | $ | (22.4 | ) | $ | (22.4 | ) | $ | (140.3 | ) | $ | (74.0 | ) | $ | (22.6 | ) | $ | (15.7 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | |||||||||||||||||||||||||||
Income (loss) from continuing operations – basic | $ | (4.79 | ) | $ | (3.80 | ) | $ | (3.85 | ) | $ | (24.05 | ) | $ | (12.78 | ) | $ | (3.83 | ) | $ | (2.71 | ) | ||||||
Income (loss) from continuing operations – diluted | $ | (4.79 | ) | $ | (3.80 | ) | $ | (3.85 | ) | $ | (24.05 | ) | $ | (12.78 | ) | $ | (3.83 | ) | $ | (2.71 | ) | ||||||
Income (loss) from discontinued operations – basic | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.05 | ) | $ | (0.35 | ) | $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.02 | ) | ||||||
Income (loss) from discontinued operations – diluted | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.05 | ) | $ | (0.35 | ) | $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.02 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – basic | $ | (4.89 | ) | $ | (3.90 | ) | $ | (3.90 | ) | $ | (24.40 | ) | $ | (12.87 | ) | $ | (3.93 | ) | $ | (2.73 | ) | ||||||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted | $ | (4.89 | ) | $ | (3.90 | ) | $ | (3.90 | ) | $ | (24.40 | ) | $ | (12.87 | ) | $ | (3.93 | ) | $ | (2.73 | ) | ||||||
Basic weighted-average common shares outstanding (in thousands) | 5,742 | 5,749 | 5,750 | 5,750 | 5,751 | 5,751 | 5,751 | ||||||||||||||||||||
Diluted weighted-average common shares outstanding (in thousands) | 5,742 | 5,749 | 5,750 | 5,750 | 5,751 | 5,751 | 5,751 | ||||||||||||||||||||
———————
[1] | Certain reclassifications have been made to prior periods to conform with the current presentation. |
3
The Phoenix Companies, Inc. | |||||||||||||||||||||||
Consolidated Interim Unaudited Statements of Operations excluding Closed Block | |||||||||||||||||||||||
Third Quarter 2015 | |||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Premiums | $ | 28.1 | $ | 21.2 | $ | 30.3 | $ | 33.8 | $ | 32.8 | $ | 35.7 | |||||||||||
Fee income | 404.1 | 404.2 | 545.1 | 550.3 | 556.0 | 596.9 | |||||||||||||||||
Net investment income | 330.6 | 304.0 | 419.8 | 380.1 | 374.5 | 358.5 | |||||||||||||||||
Net realized gains (losses) | (26.9 | ) | (37.8 | ) | (54.0 | ) | (0.6 | ) | (26.0 | ) | (28.3 | ) | |||||||||||
Gain on debt repurchase | — | — | — | — | 11.9 | — | |||||||||||||||||
Total revenues | 735.9 | 691.6 | 941.2 | 963.6 | 949.2 | 962.8 | |||||||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||||||||||
Policy benefits | 538.7 | 462.1 | 680.8 | 500.6 | 668.6 | 573.9 | |||||||||||||||||
Policyholder dividends | (0.8 | ) | — | 0.2 | 0.2 | 0.3 | 0.7 | ||||||||||||||||
Policy acquisition cost amortization | 71.8 | 73.1 | 119.6 | 103.1 | 196.1 | 166.7 | |||||||||||||||||
Interest expense on indebtedness | 21.2 | 21.2 | 28.3 | 28.3 | 30.8 | 31.8 | |||||||||||||||||
Other operating expenses | 273.8 | 256.6 | 347.5 | 331.8 | 250.3 | 242.9 | |||||||||||||||||
Total benefits and expenses | 904.7 | 813.0 | 1,176.4 | 964.0 | 1,146.1 | 1,016.0 | |||||||||||||||||
Income (loss) from continuing operations before income taxes, excl. regulatory closed block [1] | (168.8 | ) | (121.4 | ) | (235.2 | ) | (0.4 | ) | (196.9 | ) | (53.2 | ) | |||||||||||
Income (loss) from continuing operations before income taxes - regulatory closed block [2] | 32.2 | 28.0 | 40.0 | 38.5 | 43.4 | 47.8 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (136.6 | ) | $ | (93.4 | ) | $ | (195.2 | ) | $ | 38.1 | $ | (153.5 | ) | $ | (5.4 | ) | ||||||
———————
[1] | Includes income attributable to noncontrolling interests of $3.4 million and $0.0 million for the nine months ended September 30, 2015 and 2014, respectively. |
[2] | Includes income attributable to noncontrolling interests of $3.3 million and $(0.2) million for the nine months ended September 30, 2015 and 2014, respectively. |
4
The Phoenix Companies, Inc. | |||||||||||||||||||||||||||
Consolidated Interim Unaudited Statements of Operations excluding Closed Block | |||||||||||||||||||||||||||
Third Quarter 2015 | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Quarters ended | 2014 | 2015 | |||||||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||
Premiums | $ | 6.8 | $ | 7.4 | $ | 7.0 | $ | 9.1 | $ | 8.2 | $ | 7.8 | $ | 12.1 | |||||||||||||
Fee income | 134.8 | 134.2 | 135.2 | 140.9 | 133.8 | 135.2 | 135.1 | ||||||||||||||||||||
Net investment income | 104.2 | 97.8 | 102.0 | 115.8 | 109.1 | 107.3 | 114.2 | ||||||||||||||||||||
Net realized gains (losses) | (32.2 | ) | (0.9 | ) | (4.8 | ) | (16.1 | ) | (11.5 | ) | (2.7 | ) | (12.7 | ) | |||||||||||||
Total revenues | 213.6 | 238.5 | 239.4 | 249.7 | 239.6 | 247.6 | 248.7 | ||||||||||||||||||||
BENEFITS AND EXPENSES: | |||||||||||||||||||||||||||
Policy benefits | 126.5 | 179.2 | 156.6 | 218.5 | 176.5 | 178.9 | 183.3 | ||||||||||||||||||||
Policyholder dividends | 0.1 | 0.1 | — | — | — | 0.1 | (0.9 | ) | |||||||||||||||||||
Policy acquisition cost amortization | 24.6 | 19.1 | 29.4 | 46.5 | 17.1 | 24.6 | 30.1 | ||||||||||||||||||||
Interest expense on indebtedness | 7.1 | 7.1 | 7.0 | 7.1 | 7.1 | 7.1 | 7.0 | ||||||||||||||||||||
Other operating expenses | 96.8 | 83.8 | 75.5 | 91.4 | 123.7 | 81.4 | 68.7 | ||||||||||||||||||||
Total benefits and expenses | 255.1 | 289.3 | 268.5 | 363.5 | 324.4 | 292.1 | 288.2 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes, excl. regulatory closed block [1] | (41.5 | ) | (50.8 | ) | (29.1 | ) | (113.8 | ) | (84.8 | ) | (44.5 | ) | (39.5 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes - regulatory closed block [2] | 9.1 | 9.4 | 9.5 | 12.0 | 10.1 | 9.7 | 12.4 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (32.4 | ) | $ | (41.4 | ) | $ | (19.6 | ) | $ | (101.8 | ) | $ | (74.7 | ) | $ | (34.8 | ) | $ | (27.1 | ) | ||||||
———————
[1] | Includes income attributable to noncontrolling interests of $2.8 million and $(0.1) million for the three months ended September 30, 2015 and 2014, respectively. |
[2] | Includes income attributable to noncontrolling interests of $2.7 million and $0.0 million for the three months ended September 30, 2015 and 2014, respectively. |
5
The Phoenix Companies, Inc. | |||||||||||||||||||
Consolidated Interim Unaudited Balance Sheets | |||||||||||||||||||
Third Quarter 2015 | |||||||||||||||||||
($ in millions) | |||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
ASSETS: | |||||||||||||||||||
Available-for-sale debt securities, at fair value | $ | 12,590.7 | $ | 12,679.3 | $ | 11,731.5 | $ | 11,902.7 | $ | 11,475.6 | |||||||||
Available-for-sale equity securities, at fair value | 170.9 | 179.5 | 138.0 | 88.8 | 90.2 | ||||||||||||||
Short-term investments | 229.5 | 149.7 | 361.6 | 699.6 | 268.2 | ||||||||||||||
Limited partnerships and other investments | 544.5 | 542.8 | 561.3 | 577.6 | 565.9 | ||||||||||||||
Policy loans, at unpaid principal balances | 2,350.5 | 2,352.1 | 2,350.3 | 2,354.7 | 2,379.3 | ||||||||||||||
Derivative instruments | 67.1 | 161.3 | 228.8 | 157.4 | 163.3 | ||||||||||||||
Fair value investments | 185.6 | 235.4 | 215.2 | 201.5 | 184.0 | ||||||||||||||
Total investments | 16,138.8 | 16,300.1 | 15,586.7 | 15,982.3 | 15,126.5 | ||||||||||||||
Cash and cash equivalents | 465.2 | 450.0 | 496.4 | 246.4 | 168.2 | ||||||||||||||
Accrued investment income | 219.3 | 176.7 | 170.4 | 170.3 | 175.6 | ||||||||||||||
Reinsurance recoverable | 575.9 | 559.1 | 598.1 | 591.3 | 568.5 | ||||||||||||||
Deferred policy acquisition costs | 895.3 | 848.6 | 947.8 | 898.1 | 1,114.8 | ||||||||||||||
Deferred income taxes, net | 73.5 | 34.2 | 70.0 | 39.5 | 115.3 | ||||||||||||||
Other assets | 342.4 | 311.3 | 320.5 | 332.0 | 316.0 | ||||||||||||||
Discontinued operations assets | 44.8 | 45.2 | 48.9 | 58.5 | 90.1 | ||||||||||||||
Separate account assets | 2,533.2 | 3,020.7 | 3,402.3 | 3,316.5 | 3,816.9 | ||||||||||||||
Total assets | $ | 21,288.4 | $ | 21,745.9 | $ | 21,641.1 | $ | 21,634.9 | $ | 21,491.9 | |||||||||
LIABILITIES: | |||||||||||||||||||
Policy liabilities and accruals | 12,350.4 | 12,417.6 | 12,416.6 | 12,695.1 | 12,670.8 | ||||||||||||||
Policyholder deposit funds | 4,319.5 | 3,955.0 | 3,442.6 | 3,055.2 | 2,439.9 | ||||||||||||||
Dividend obligations | 813.0 | 916.8 | 705.7 | 956.8 | 713.8 | ||||||||||||||
Indebtedness | 378.9 | 378.9 | 378.8 | 378.8 | 426.9 | ||||||||||||||
Pension and post-employment liabilities | 369.3 | 380.0 | 313.1 | 428.1 | 428.6 | ||||||||||||||
Other liabilities | 249.3 | 289.8 | 337.3 | 239.9 | 224.5 | ||||||||||||||
Discontinued operations liabilities | 39.8 | 40.5 | 43.4 | 53.1 | 79.1 | ||||||||||||||
Separate account liabilities | 2,533.2 | 3,020.7 | 3,402.3 | 3,316.5 | 3,816.9 | ||||||||||||||
Total liabilities | 21,053.4 | 21,399.3 | 21,039.8 | 21,123.5 | 20,800.5 | ||||||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||||||||||
Common stock, $.01 par value: 5.8 million and 5.8 million shares outstanding | 0.1 | 0.1 | 0.1 | 0.1 | 1.3 | ||||||||||||||
Additional paid-in capital | 2,632.8 | 2,632.8 | 2,633.1 | 2,633.0 | 2,630.5 | ||||||||||||||
Accumulated other comprehensive income (loss) | (235.5 | ) | (234.4 | ) | (185.0 | ) | (243.9 | ) | (226.8 | ) | |||||||||
Retained earnings (accumulated deficit) | (2,001.3 | ) | (1,889.0 | ) | (1,675.8 | ) | (1,701.6 | ) | (1,536.8 | ) | |||||||||
Treasury stock, at cost: 0.7 million and 0.7 million shares | (182.9 | ) | (182.9 | ) | (182.9 | ) | (182.9 | ) | (179.5 | ) | |||||||||
Total The Phoenix Companies, Inc. stockholders' equity | 213.2 | 326.6 | 589.5 | 504.7 | 688.7 | ||||||||||||||
Noncontrolling interests | 21.8 | 20.0 | 11.8 | 6.7 | 2.7 | ||||||||||||||
Total stockholders' equity | 235.0 | 346.6 | 601.3 | 511.4 | 691.4 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 21,288.4 | $ | 21,745.9 | $ | 21,641.1 | $ | 21,634.9 | $ | 21,491.9 | |||||||||
6
The Phoenix Companies, Inc. | |||||||||||
Closed Block Assets and Liabilities | |||||||||||
Third Quarter 2015 (unaudited) | |||||||||||
($ in millions) | |||||||||||
September 30, | December 31, | ||||||||||
2015 | 2014 | 2013 | |||||||||
ASSETS: | |||||||||||
Available-for-sale debt securities | $ | 5,626.9 | $ | 5,877.0 | $ | 5,753.4 | |||||
Available-for-sale equity securities | 84.6 | 91.7 | 76.5 | ||||||||
Short-term investments | 39.8 | — | 106.9 | ||||||||
Limited partnerships and other investments | 362.8 | 343.4 | 345.0 | ||||||||
Policy loans | 1,133.5 | 1,159.1 | 1,201.6 | ||||||||
Fair value investments | 61.8 | 59.8 | 42.5 | ||||||||
Total closed block investments | 7,309.4 | 7,531.0 | 7,525.9 | ||||||||
Cash and cash equivalents | 72.6 | 89.6 | 78.2 | ||||||||
Accrued investment income | 78.0 | 80.7 | 81.7 | ||||||||
Reinsurance recoverable | 29.9 | 19.1 | 26.8 | ||||||||
Deferred income taxes, net | 277.4 | 290.3 | 285.4 | ||||||||
Other closed block assets | 50.3 | 67.4 | 58.2 | ||||||||
Total closed block assets | 7,817.6 | 8,078.1 | 8,056.2 | ||||||||
Policy liabilities and accruals | 7,884.2 | 8,058.2 | 8,258.4 | ||||||||
Policyholder dividends payable | 198.9 | 201.9 | 207.8 | ||||||||
Policy dividend obligation | 613.9 | 714.8 | 497.7 | ||||||||
Other closed block liabilities | 46.1 | 48.0 | 65.9 | ||||||||
Total closed block liabilities | 8,743.1 | 9,022.9 | 9,029.8 | ||||||||
Excess of closed block liabilities over closed block assets [1] | 925.5 | 944.8 | 973.6 | ||||||||
Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests | (12.6 | ) | (11.8 | ) | (8.0 | ) | |||||
Excess of closed block liabilities over closed block assets attributable to noncontrolling interests | $ | 938.1 | $ | 956.6 | $ | 981.6 | |||||
———————
[1] | The maximum future earnings summary to inure to the benefit of the stockholders is represented by the excess of closed block liabilities over closed block assets. All unrealized investment gains (losses), net of income tax, have been allocated to the policyholder dividend obligation. |
7
The Phoenix Companies, Inc. | |||||||||||||||||||||||
Variable Universal Life | |||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
Balance, beginning of period | $ | 1,062.6 | $ | 1,089.3 | $ | 1,089.3 | $ | 1,014.3 | $ | 1,019.1 | $ | 1,151.6 | |||||||||||
Deposits | 50.5 | 52.2 | 70.1 | 75.4 | 82.6 | 98.3 | |||||||||||||||||
Surrenders | (56.1 | ) | (58.7 | ) | (79.1 | ) | (102.8 | ) | (123.4 | ) | (135.4 | ) | |||||||||||
Net flows | (5.6 | ) | (6.5 | ) | (9.0 | ) | (27.4 | ) | (40.8 | ) | (37.1 | ) | |||||||||||
Deaths | (6.5 | ) | (5.2 | ) | (6.9 | ) | (5.7 | ) | (5.2 | ) | (5.6 | ) | |||||||||||
Performance and interest credited | (44.1 | ) | 32.0 | 59.9 | 182.5 | 120.2 | (6.7 | ) | |||||||||||||||
Fees | (5.8 | ) | (6.5 | ) | (8.5 | ) | (9.1 | ) | (10.3 | ) | (11.5 | ) | |||||||||||
Cost of insurance | (46.2 | ) | (46.7 | ) | (62.2 | ) | (65.3 | ) | (68.7 | ) | (71.6 | ) | |||||||||||
Change in funds on deposit | (108.2 | ) | (32.9 | ) | (26.7 | ) | 75.0 | (4.8 | ) | (132.5 | ) | ||||||||||||
Balance, end of period | $ | 954.4 | $ | 1,056.4 | $ | 1,062.6 | $ | 1,089.3 | $ | 1,014.3 | $ | 1,019.1 | |||||||||||
8
The Phoenix Companies, Inc. | |||||||||||||||||||||||||||
Variable Universal Life | |||||||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Quarters ended | 2014 | 2015 | |||||||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||||||||
Balance, beginning of period | $ | 1,089.3 | $ | 1,080.1 | $ | 1,092.7 | $ | 1,056.4 | $ | 1,062.6 | $ | 1,067.5 | $ | 1,046.2 | |||||||||||||
Deposits | 17.6 | 16.1 | 18.5 | 17.9 | 17.4 | 17.3 | 15.8 | ||||||||||||||||||||
Surrenders | (19.4 | ) | (20.7 | ) | (18.6 | ) | (20.4 | ) | (19.4 | ) | (18.9 | ) | (17.8 | ) | |||||||||||||
Net flows | (1.8 | ) | (4.6 | ) | (0.1 | ) | (2.5 | ) | (2.0 | ) | (1.6 | ) | (2.0 | ) | |||||||||||||
Deaths | (2.2 | ) | (1.2 | ) | (1.8 | ) | (1.7 | ) | (1.3 | ) | (2.1 | ) | (3.1 | ) | |||||||||||||
Performance and interest credited | 13.0 | 36.0 | (17.0 | ) | 27.9 | 25.8 | (0.2 | ) | (69.7 | ) | |||||||||||||||||
Fees | (2.2 | ) | (2.3 | ) | (2.0 | ) | (2.0 | ) | (2.0 | ) | (2.0 | ) | (1.8 | ) | |||||||||||||
Cost of insurance | (16.0 | ) | (15.3 | ) | (15.4 | ) | (15.5 | ) | (15.6 | ) | (15.4 | ) | (15.2 | ) | |||||||||||||
Change in funds on deposit | (9.2 | ) | 12.6 | (36.3 | ) | 6.2 | 4.9 | (21.3 | ) | (91.8 | ) | ||||||||||||||||
Balance, end of period | $ | 1,080.1 | $ | 1,092.7 | $ | 1,056.4 | $ | 1,062.6 | $ | 1,067.5 | $ | 1,046.2 | $ | 954.4 | |||||||||||||
9
The Phoenix Companies, Inc. | |||||||||||||||||||||||
Universal Life | |||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
Balance, beginning of period | $ | 1,781.9 | $ | 1,818.2 | $ | 1,818.2 | $ | 1,837.9 | $ | 1,852.8 | $ | 1,918.9 | |||||||||||
Deposits | 269.0 | 244.4 | 338.7 | 361.5 | 384.0 | 384.5 | |||||||||||||||||
Surrenders | (42.3 | ) | (42.6 | ) | (62.3 | ) | (64.9 | ) | (73.2 | ) | (89.5 | ) | |||||||||||
Net flows | 226.7 | 201.8 | 276.4 | 296.6 | 310.8 | 295.0 | |||||||||||||||||
Deaths | (33.1 | ) | (25.9 | ) | (34.8 | ) | (35.5 | ) | (33.6 | ) | (35.8 | ) | |||||||||||
Interest credited | 53.4 | 52.6 | 71.0 | 75.2 | 75.1 | 79.2 | |||||||||||||||||
Fees | (17.0 | ) | (15.4 | ) | (21.1 | ) | (22.4 | ) | (23.5 | ) | (23.8 | ) | |||||||||||
Cost of insurance | (242.4 | ) | (244.2 | ) | (327.8 | ) | (333.6 | ) | (343.7 | ) | (380.7 | ) | |||||||||||
Change in funds on deposit | (12.4 | ) | (31.1 | ) | (36.3 | ) | (19.7 | ) | (14.9 | ) | (66.1 | ) | |||||||||||
Balance, end of period | $ | 1,769.5 | $ | 1,787.1 | $ | 1,781.9 | $ | 1,818.2 | $ | 1,837.9 | $ | 1,852.8 | |||||||||||
10
The Phoenix Companies, Inc. | |||||||||||||||||||||||||||
Universal Life | |||||||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Quarters ended | 2014 | 2015 | |||||||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||||||||
Balance, beginning of period | $ | 1,818.2 | $ | 1,809.0 | $ | 1,797.2 | $ | 1,787.1 | $ | 1,781.9 | $ | 1,769.0 | $ | 1,762.2 | |||||||||||||
Deposits | 87.5 | 77.3 | 79.6 | 94.3 | 89.8 | 80.9 | 98.3 | ||||||||||||||||||||
Surrenders | (18.1 | ) | (13.2 | ) | (11.3 | ) | (19.7 | ) | (18.8 | ) | (10.7 | ) | (12.8 | ) | |||||||||||||
Net flows | 69.4 | 64.1 | 68.3 | 74.6 | 71.0 | 70.2 | 85.5 | ||||||||||||||||||||
Deaths | (7.9 | ) | (7.8 | ) | (10.2 | ) | (8.9 | ) | (15.3 | ) | (8.7 | ) | (9.1 | ) | |||||||||||||
Interest credited | 16.5 | 18.2 | 17.9 | 18.4 | 17.9 | 17.9 | 17.6 | ||||||||||||||||||||
Fees | (5.4 | ) | (4.8 | ) | (5.2 | ) | (5.7 | ) | (5.5 | ) | (5.2 | ) | (6.3 | ) | |||||||||||||
Cost of insurance | (81.8 | ) | (81.5 | ) | (80.9 | ) | (83.6 | ) | (81.0 | ) | (81.0 | ) | (80.4 | ) | |||||||||||||
Change in funds on deposit | (9.2 | ) | (11.8 | ) | (10.1 | ) | (5.2 | ) | (12.9 | ) | (6.8 | ) | 7.3 | ||||||||||||||
Balance, end of period | $ | 1,809.0 | $ | 1,797.2 | $ | 1,787.1 | $ | 1,781.9 | $ | 1,769.0 | $ | 1,762.2 | $ | 1,769.5 | |||||||||||||
11
The Phoenix Companies, Inc. | |||||||||||||||||||||||
Life Sales | |||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
Life Insurance Sales | |||||||||||||||||||||||
Wholesaler Channel | |||||||||||||||||||||||
Variable universal life | $ | — | $ | — | $ | — | $ | — | $ | 0.1 | $ | 0.1 | |||||||||||
Universal life/interest sensitive | 3.2 | 0.9 | 1.6 | 2.0 | 2.2 | 2.1 | |||||||||||||||||
Whole life | 2.1 | 1.0 | 1.6 | 0.4 | 0.6 | — | |||||||||||||||||
Term life | 8.3 | 0.4 | 1.6 | — | — | — | |||||||||||||||||
Life insurance annualized premium [1] | 13.6 | 2.3 | 4.8 | 2.4 | 2.9 | 2.2 | |||||||||||||||||
Variable universal life | — | — | — | — | — | — | |||||||||||||||||
Universal life/interest sensitive | 0.3 | 0.1 | 0.1 | 0.1 | 0.2 | 0.7 | |||||||||||||||||
Whole life | — | — | — | 2.1 | 5.2 | 1.6 | |||||||||||||||||
Life insurance single premium | 0.3 | 0.1 | 0.1 | 2.2 | 5.4 | 2.3 | |||||||||||||||||
Variable universal life | — | — | — | — | 0.1 | 0.1 | |||||||||||||||||
Universal life/interest sensitive | 3.5 | 1.0 | 1.7 | 2.1 | 2.4 | 2.8 | |||||||||||||||||
Whole life | 2.1 | 1.0 | 1.6 | 2.5 | 5.8 | 1.6 | |||||||||||||||||
Term life | 8.3 | 0.4 | 1.6 | — | — | — | |||||||||||||||||
Total wholesaler life insurance premium [2] | $ | 13.9 | $ | 2.4 | $ | 4.9 | $ | 4.6 | $ | 8.3 | $ | 4.5 | |||||||||||
———————
[1] | Annualized premium represents second year premiums on an annual basis. |
[2] | Total premium represents annualized and single premiums. |
12
The Phoenix Companies, Inc. | |||||||||||||||||||||||||||
Life Sales | |||||||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Quarters ended | 2014 | 2015 | |||||||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||||||||
Life Insurance Sales | |||||||||||||||||||||||||||
Wholesaler Channel | |||||||||||||||||||||||||||
Variable universal life | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Universal life/interest sensitive | 0.2 | 0.3 | 0.4 | 0.7 | 1.6 | 1.1 | 0.5 | ||||||||||||||||||||
Whole life | 0.3 | 0.4 | 0.3 | 0.6 | 0.6 | 0.7 | 0.8 | ||||||||||||||||||||
Term life | — | — | 0.4 | 1.2 | 1.8 | 3.0 | 3.5 | ||||||||||||||||||||
Life insurance annualized premium [1] | 0.5 | 0.7 | 1.1 | 2.5 | 4.0 | 4.8 | 4.8 | ||||||||||||||||||||
Variable universal life | — | — | — | — | — | — | — | ||||||||||||||||||||
Universal life/interest sensitive | — | 0.1 | — | — | 0.1 | — | 0.2 | ||||||||||||||||||||
Whole life | — | — | — | — | — | — | — | ||||||||||||||||||||
Life insurance single premium | — | 0.1 | — | — | 0.1 | — | 0.2 | ||||||||||||||||||||
Variable universal life | — | — | — | — | — | — | — | ||||||||||||||||||||
Universal life/interest sensitive | 0.2 | 0.4 | 0.4 | 0.7 | 1.7 | 1.1 | 0.7 | ||||||||||||||||||||
Whole life | 0.3 | 0.4 | 0.3 | 0.6 | 0.6 | 0.7 | 0.8 | ||||||||||||||||||||
Term life | — | — | 0.4 | 1.2 | 1.8 | 3.0 | 3.5 | ||||||||||||||||||||
Total wholesaler life insurance premium [2] | $ | 0.5 | $ | 0.8 | $ | 1.1 | $ | 2.5 | $ | 4.1 | $ | 4.8 | $ | 5.0 | |||||||||||||
———————
[1] | Annualized premium represents second year premiums on an annual basis. |
[2] | Total premium represents annualized and single premiums. |
13
The Phoenix Companies, Inc. | |||||||||||||||||||||||
Total Annuity | |||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
Balance, beginning of period | $ | 5,674.5 | $ | 5,502.4 | $ | 5,502.4 | $ | 5,042.1 | $ | 4,495.4 | $ | 4,083.3 | |||||||||||
Deposits | 596.0 | 593.1 | 770.9 | 682.9 | 824.2 | 951.5 | |||||||||||||||||
Surrenders | (475.5 | ) | (500.2 | ) | (658.4 | ) | (597.8 | ) | (529.9 | ) | (485.1 | ) | |||||||||||
Net flows | 120.5 | 92.9 | 112.5 | 85.1 | 294.3 | 466.4 | |||||||||||||||||
Deaths | (63.9 | ) | (58.3 | ) | (81.8 | ) | (79.7 | ) | (73.3 | ) | (62.7 | ) | |||||||||||
Performance and interest credited | (49.5 | ) | 135.6 | 196.2 | 514.9 | 370.3 | 15.1 | ||||||||||||||||
Bonus | 11.6 | 12.7 | 17.3 | 10.5 | 16.1 | 48.4 | |||||||||||||||||
Fees | (56.3 | ) | (53.8 | ) | (72.1 | ) | (70.5 | ) | (60.7 | ) | (55.1 | ) | |||||||||||
Change in funds on deposit | (37.6 | ) | 129.1 | 172.1 | 460.3 | 546.7 | 412.1 | ||||||||||||||||
Balance, end of period | $ | 5,636.9 | $ | 5,631.5 | $ | 5,674.5 | $ | 5,502.4 | $ | 5,042.1 | $ | 4,495.4 | |||||||||||
14
The Phoenix Companies, Inc. | |||||||||||||||||||||||||||
Total Annuity | |||||||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Quarters ended | 2014 | 2015 | |||||||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||||||||
Balance, beginning of period | $ | 5,502.4 | $ | 5,525.2 | $ | 5,623.0 | $ | 5,631.5 | $ | 5,674.5 | $ | 5,731.7 | $ | 5,772.7 | |||||||||||||
Deposits | 170.4 | 201.0 | 221.7 | 177.8 | 189.4 | 221.4 | 185.2 | ||||||||||||||||||||
Surrenders | (172.7 | ) | (170.4 | ) | (157.1 | ) | (158.2 | ) | (159.4 | ) | (160.2 | ) | (155.9 | ) | |||||||||||||
Net flows | (2.3 | ) | 30.6 | 64.6 | 19.6 | 30.0 | 61.2 | 29.3 | |||||||||||||||||||
Deaths | (18.7 | ) | (18.2 | ) | (21.4 | ) | (23.5 | ) | (24.5 | ) | (18.9 | ) | (20.5 | ) | |||||||||||||
Performance and interest credited | 60.0 | 97.7 | (22.1 | ) | 60.6 | 65.0 | 12.9 | (127.4 | ) | ||||||||||||||||||
Bonus | 2.1 | 5.4 | 5.2 | 4.6 | 5.2 | 4.2 | 2.2 | ||||||||||||||||||||
Fees | (18.3 | ) | (17.7 | ) | (17.8 | ) | (18.3 | ) | (18.5 | ) | (18.4 | ) | (19.4 | ) | |||||||||||||
Change in funds on deposit | 22.8 | 97.8 | 8.5 | 43.0 | 57.2 | 41.0 | (135.8 | ) | |||||||||||||||||||
Balance, end of period | $ | 5,525.2 | $ | 5,623.0 | $ | 5,631.5 | $ | 5,674.5 | $ | 5,731.7 | $ | 5,772.7 | $ | 5,636.9 | |||||||||||||
15
The Phoenix Companies, Inc. | |||||||||||||||||||||||
Fixed Indexed Annuity | |||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
Balance, beginning of period | $ | 2,813.2 | $ | 2,259.9 | $ | 2,259.9 | $ | 1,800.5 | $ | 1,139.4 | $ | 226.0 | |||||||||||
Deposits | 566.7 | 549.8 | 713.7 | 602.2 | 741.2 | 890.8 | |||||||||||||||||
Surrenders | (161.2 | ) | (118.1 | ) | (160.7 | ) | (135.2 | ) | (75.5 | ) | (24.6 | ) | |||||||||||
Net flows | 405.5 | 431.7 | 553.0 | 467.0 | 665.7 | 866.2 | |||||||||||||||||
Deaths | (33.6 | ) | (29.2 | ) | (41.9 | ) | (30.9 | ) | (24.3 | ) | (5.7 | ) | |||||||||||
Interest credited | 35.6 | 44.6 | 58.9 | 41.8 | 19.3 | 6.3 | |||||||||||||||||
Bonus | 8.4 | 9.8 | 13.6 | 6.0 | 13.2 | 48.4 | |||||||||||||||||
Fees | (30.0 | ) | (22.1 | ) | (30.3 | ) | (24.5 | ) | (12.8 | ) | (1.8 | ) | |||||||||||
Change in funds on deposit | 385.9 | 434.8 | 553.3 | 459.4 | 661.1 | 913.4 | |||||||||||||||||
Balance, end of period | $ | 3,199.1 | $ | 2,694.7 | $ | 2,813.2 | $ | 2,259.9 | $ | 1,800.5 | $ | 1,139.4 | |||||||||||
16
The Phoenix Companies, Inc. | |||||||||||||||||||||||||||
Fixed Indexed Annuity | |||||||||||||||||||||||||||
Funds on Deposit | |||||||||||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Quarters ended | 2014 | 2015 | |||||||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||||||||
Balance, beginning of period | $ | 2,259.9 | $ | 2,376.3 | $ | 2,518.4 | $ | 2,694.7 | $ | 2,813.2 | $ | 2,937.8 | $ | 3,086.4 | |||||||||||||
Deposits | 154.6 | 186.9 | 208.3 | 163.9 | 176.7 | 208.3 | 181.7 | ||||||||||||||||||||
Surrenders | (37.2 | ) | (43.4 | ) | (37.5 | ) | (42.6 | ) | (50.1 | ) | (55.6 | ) | (55.5 | ) | |||||||||||||
Net flows | 117.4 | 143.5 | 170.8 | 121.3 | 126.6 | 152.7 | 126.2 | ||||||||||||||||||||
Deaths | (8.9 | ) | (9.4 | ) | (10.9 | ) | (12.7 | ) | (11.3 | ) | (10.7 | ) | (11.6 | ) | |||||||||||||
Interest credited | 13.8 | 11.0 | 19.8 | 14.3 | 14.3 | 13.2 | 8.1 | ||||||||||||||||||||
Bonus | 1.1 | 4.4 | 4.3 | 3.8 | 4.2 | 3.0 | 1.2 | ||||||||||||||||||||
Fees | (7.0 | ) | (7.4 | ) | (7.7 | ) | (8.2 | ) | (9.2 | ) | (9.6 | ) | (11.2 | ) | |||||||||||||
Change in funds on deposit | 116.4 | 142.1 | 176.3 | 118.5 | 124.6 | 148.6 | 112.7 | ||||||||||||||||||||
Balance, end of period | $ | 2,376.3 | $ | 2,518.4 | $ | 2,694.7 | $ | 2,813.2 | $ | 2,937.8 | $ | 3,086.4 | $ | 3,199.1 | |||||||||||||
17
The Phoenix Companies, Inc. | |||||||||||||||||||
Deferred Policy Acquisition Costs | |||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||
($ in millions) | |||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | |||||||||||||||
Composition of Deferred Policy Acquisition Costs by Product: | |||||||||||||||||||
Variable universal life | $ | 110.2 | $ | 120.4 | $ | 120.3 | $ | 129.3 | $ | 140.8 | |||||||||
Universal life | 133.1 | 159.9 | 129.0 | 214.9 | 199.7 | ||||||||||||||
Variable annuities | 53.1 | 69.4 | 62.4 | 84.1 | 92.2 | ||||||||||||||
Fixed annuities | 273.4 | 221.0 | 220.9 | 194.3 | 133.7 | ||||||||||||||
Traditional life | 325.5 | 313.2 | 316.0 | 325.2 | 331.7 | ||||||||||||||
Total deferred policy acquisition costs | $ | 895.3 | $ | 883.9 | $ | 848.6 | $ | 947.8 | $ | 898.1 | |||||||||
Changes in Deferred Policy Acquisition Costs: | |||||||||||||||||||
Balance, beginning of period | $ | 848.6 | $ | 947.8 | $ | 947.8 | $ | 898.1 | $ | 1,114.8 | |||||||||
Policy acquisition costs deferred | 70.7 | 54.9 | 72.9 | 58.4 | 58.1 | ||||||||||||||
Costs amortized to expenses: | |||||||||||||||||||
Recurring costs | (68.4 | ) | (82.8 | ) | (129.5 | ) | (117.9 | ) | (141.3 | ) | |||||||||
Assumption unlocking | (6.6 | ) | — | (4.4 | ) | 25.4 | (55.6 | ) | |||||||||||
Realized investment gains (losses) | 3.2 | 9.7 | 14.3 | (10.6 | ) | 0.8 | |||||||||||||
Offsets to net unrealized investment gains or losses | |||||||||||||||||||
included in AOCI | 47.8 | (45.7 | ) | (52.5 | ) | 94.4 | (78.7 | ) | |||||||||||
Balance, end of period | $ | 895.3 | $ | 883.9 | $ | 848.6 | $ | 947.8 | $ | 898.1 | |||||||||
18
The Phoenix Companies, Inc. | |||||||||||
General Account Investment Portfolio Summary | |||||||||||
Third Quarter 2015 (unaudited) | |||||||||||
($ in millions) | |||||||||||
Available-for-Sale Debt Securities Ratings | |||||||||||
September 30, 2015 | |||||||||||
Fair Value | Amortized Cost | ||||||||||
AAA/AA/A | $ | 7,228.6 | $ | 6,841.0 | |||||||
BBB | 4,531.0 | 4,449.1 | |||||||||
Total investment grade | 11,759.6 | 11,290.1 | |||||||||
BB | 568.9 | 592.5 | |||||||||
B | 201.9 | 211.3 | |||||||||
CCC and lower | 36.9 | 39.4 | |||||||||
In or near default | 23.4 | 22.6 | |||||||||
Total available-for-sale debt securities | $ | 12,590.7 | $ | 12,155.9 | |||||||
% Investment Grade | 93.4 | % | 92.9 | % | |||||||
Unrealized Gains (Losses) on Debt and Equity Securities | |||||||||||
Nine months ended September 30, 2015 | |||||||||||
Total | Outside Closed Block | Closed Block | |||||||||
Sources of Changes in Net Unrealized Gains (Losses): | |||||||||||
Debt securities | $ | (266.5 | ) | $ | (135.7 | ) | $ | (130.8 | ) | ||
Equity securities | (3.8 | ) | (1.5 | ) | (2.3 | ) | |||||
Other investments | (2.3 | ) | (1.2 | ) | (1.1 | ) | |||||
Net unrealized investment gains (losses) | $ | (272.6 | ) | $ | (138.4 | ) | $ | (134.2 | ) | ||
Net unrealized investment gains (losses) | (272.6 | ) | (138.4 | ) | (134.2 | ) | |||||
Applicable to closed block policyholder dividend obligation | (133.8 | ) | — | (133.8 | ) | ||||||
Applicable to deferred policy acquisition cost | (47.8 | ) | (47.8 | ) | — | ||||||
Applicable to other actuarial offsets | (43.6 | ) | (43.2 | ) | (0.4 | ) | |||||
Applicable to deferred income tax expense (benefit) | (39.2 | ) | (39.2 | ) | — | ||||||
Offsets to net unrealized investment gains (losses) | (264.4 | ) | (130.2 | ) | (134.2 | ) | |||||
Net unrealized gains (losses) included in OCI | $ | (8.2 | ) | $ | (8.2 | ) | $ | — | |||
19
The Phoenix Companies, Inc. | |||||||||||||||||||
General Account GAAP Net Investment Income Yields | |||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||
($ in millions) | |||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | |||||||||||||||
Sources of Net Investment Income: | |||||||||||||||||||
Debt securities [1] | $ | 451.1 | $ | 433.6 | $ | 581.6 | $ | 565.0 | $ | 604.8 | |||||||||
Equity securities | 5.1 | 6.1 | 9.2 | 7.2 | 4.3 | ||||||||||||||
Limited partnerships and other investments | 49.5 | 52.0 | 65.3 | 58.3 | 63.7 | ||||||||||||||
Policy loans | 126.9 | 124.8 | 167.4 | 160.0 | 161.5 | ||||||||||||||
Fair value investments | 26.5 | 4.9 | 25.4 | 14.1 | 9.4 | ||||||||||||||
Total investment income | 659.1 | 621.4 | 848.9 | 804.6 | 843.7 | ||||||||||||||
Less: Discontinued operations | 0.9 | 0.8 | 1.1 | 1.3 | 2.1 | ||||||||||||||
Less: Investment expenses | 19.1 | 12.7 | 16.9 | 13.6 | 13.8 | ||||||||||||||
Net investment income | $ | 639.1 | $ | 607.9 | $ | 830.9 | $ | 789.7 | $ | 827.8 | |||||||||
Amounts applicable to closed block | $ | 308.5 | $ | 303.9 | $ | 411.1 | $ | 409.6 | $ | 453.3 | |||||||||
Annualized Yields: | |||||||||||||||||||
Debt securities | 4.9 | % | 7.3 | % | 4.9 | % | 4.8 | % | 5.3 | % | |||||||||
Equity securities | 4.1 | % | 8.8 | % | 6.7 | % | 7.5 | % | 5.6 | % | |||||||||
Limited partnerships and other investments | 15.1 | % | 18.5 | % | 11.8 | % | 11.2 | % | 11.1 | % | |||||||||
Policy loans | 7.4 | % | 10.7 | % | 7.1 | % | 6.8 | % | 6.8 | % | |||||||||
Fair value investments | 80.3 | % | 8.0 | % | 20.1 | % | 10.9 | % | 7.3 | % | |||||||||
Total investment yield | 6.0 | % | 8.3 | % | 5.6 | % | 5.4 | % | 5.8 | % | |||||||||
Investment expenses and discontinued operations | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||
Total net investment income yields | 5.9 | % | 8.1 | % | 5.5 | % | 5.3 | % | 5.7 | % | |||||||||
———————
[1] | Includes net investment income on short-term investments. |
20
The Phoenix Companies, Inc. | |||||||||||||||||||
Net Realized Gains (Losses) | |||||||||||||||||||
Third Quarter 2015 (unaudited) | |||||||||||||||||||
($ in millions) | |||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | |||||||||||||||
Sources and Types of Net Realized Gains (Losses): | |||||||||||||||||||
Total other-than-temporary debt impairments | $ | (5.3 | ) | $ | (2.8 | ) | $ | (5.6 | ) | $ | (7.0 | ) | $ | (45.7 | ) | ||||
Portion of losses recognized in OCI | (1.2 | ) | (0.4 | ) | (0.4 | ) | (4.8 | ) | 22.9 | ||||||||||
Net debt impairments recognized in earnings | $ | (6.5 | ) | $ | (3.2 | ) | $ | (6.0 | ) | $ | (11.8 | ) | $ | (22.8 | ) | ||||
Debt security impairments: | |||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
State and political subdivision | — | — | — | — | (0.6 | ) | |||||||||||||
Foreign government | — | — | — | — | — | ||||||||||||||
Corporate | (6.3 | ) | (3.2 | ) | (6.0 | ) | (3.8 | ) | (3.0 | ) | |||||||||
CMBS | — | — | — | (2.7 | ) | (4.1 | ) | ||||||||||||
RMBS | (0.2 | ) | — | — | (4.3 | ) | (10.3 | ) | |||||||||||
CDO/CLO | — | — | — | (1.0 | ) | (3.8 | ) | ||||||||||||
Other ABS | — | — | — | — | (1.0 | ) | |||||||||||||
Net debt security impairments | (6.5 | ) | (3.2 | ) | (6.0 | ) | (11.8 | ) | (22.8 | ) | |||||||||
Equity security impairments | (7.0 | ) | (1.9 | ) | (2.1 | ) | — | (4.8 | ) | ||||||||||
Limited partnerships and other investment impairments | — | — | — | — | (0.3 | ) | |||||||||||||
Impairment losses | (13.5 | ) | (5.1 | ) | (8.1 | ) | (11.8 | ) | (27.9 | ) | |||||||||
Debt security transaction gains | 25.7 | 31.2 | 41.8 | 45.3 | 46.4 | ||||||||||||||
Debt security transaction losses | (3.6 | ) | (13.6 | ) | (17.7 | ) | (2.2 | ) | (11.1 | ) | |||||||||
Equity security transaction gains | 1.7 | 6.0 | 10.4 | 4.2 | 14.4 | ||||||||||||||
Equity security transaction losses | — | (1.5 | ) | (1.0 | ) | (3.8 | ) | (0.4 | ) | ||||||||||
Limited partnerships and other investment transaction gains | — | — | — | 0.8 | 7.7 | ||||||||||||||
Limited partnerships and other investment transaction losses | — | — | (0.7 | ) | (4.6 | ) | (2.5 | ) | |||||||||||
Net transaction gains (losses) | 23.8 | 22.1 | 32.8 | 39.7 | 54.5 | ||||||||||||||
Derivative instruments | (22.0 | ) | (20.9 | ) | (20.8 | ) | (27.7 | ) | (50.4 | ) | |||||||||
Embedded derivatives [1] | (9.5 | ) | (23.5 | ) | (45.9 | ) | 12.2 | 4.9 | |||||||||||
Assets valued at fair value | (8.6 | ) | 0.9 | 0.8 | 3.6 | 2.1 | |||||||||||||
Net realized gains (losses), excluding impairment losses | (16.3 | ) | (21.4 | ) | (33.1 | ) | 27.8 | 11.1 | |||||||||||
Net realized gains (losses), including impairment losses | $ | (29.8 | ) | $ | (26.5 | ) | $ | (41.2 | ) | $ | 16.0 | $ | (16.8 | ) | |||||
———————
[1] | Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity riders. |
21