The Phoenix Companies — Phoenix Companies — Q1 2016 Earnings Presentation
17 slides from The Phoenix Companies's earnings presentation, May 10, 2016
Slide 1: Earnings Review First Quarter 2016
Earnings Review First Quarter 2016 May 10, 2016
Slide 2: Important Disclosures
Important Disclosures Sy PHOENIX This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend for these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws relating to f
Slide 3: Overview of 1Q16 Results
Overview of 1Q16 Results Ss PHOENIX > GAAP net loss driven by unfavorable mortality experience in the open block > Investment portfolio remains high quality; net other-than-temporary impairment losses of $12.5 million > Phoenix Life statutory surplus & AVR of $505.5 million; estimated RBC ratio of 3
Slide 4: Summary of GAAP
Summary of GAAP Results Sy PHOENIX DSSS SSS ESE Ea PNX Net Income (Loss) $(74.0) $(22.6) $15.7) (21.4) | $(42.8) PNX Net Income (Loss) Per Share (12.87) $(3.93) $(273) (3.72) | $(7.44) Other Comprehensive Income (Loss) (OC!) $(2.2) $(286) $297 —-$(30.7) As of As of 12/31/15 3/31/16 $123.7 Total Stoc
Slide 5: Consolidated Mortality
Consolidated Mortality Results Sy PHOENIX Total Net Death Claims Open Block Net Death Claims $280 $260 $260 | $240 | Ee | ee $200 | $180 | $180 7 $160 | $160 : t $140 : ae $140 t $120 $120 $100 - ie ini $100 - — | $80 | $80 | $60 -- = p $60 = $40 $40 mI = $20 + $20 | | tee ee FF 90 TA aaie" $0 114 2
Slide 6: Net Investment Income
Net Investment Income Sy PHOENIX Sources of Net Investment Income Net Investment Income 1Q15 4Q15 1Q16 Long Term Debt $209.3 $196.8 $205.0 Alternative Investments! 13.2 86 Policy Loans 417 43.8 Fair Value Investments? 14.4 38 Others (5.5) (4.4) Total $209.3 $195.8 > Overall net investment income yie
Slide 7: Investment Impairments
Investment Impairments Ss PHOENIX GAAP Impairments 1Q15 2Q15 3Q15 4Q15 1Q16 Structured Bonds $ 02 $ - §$ - $ - Private Corporate - - 16 19 Public Corporate 13 14 23 44 Total Credit Impairments 15 11 3.9 63 25 Total Equity Impairments 69 ~ 041 18 Other Impairments - - - 12 Total Impairments $ 646 41
Slide 8: Portfolio Quality
Portfolio Quality Sy PHOENIX As of 12/31/12 As of 12131113 92.9% As of 12/31/14 As of 12/31/15 As of 3/31/16 Investment Grade Bonds Below Investment Grade (BIG) Bonds 8.2% 71% 6.8% 6.8% “Percentage of BIGinNAIC3 SSCS 64.2% 64.2% 639% 69.3% Percentage of BIG in NAIC 4-6 35.8% 35.8% 36.1% 30.7% > Port
Slide 9: Phoenix Life Statutory
Phoenix Life Statutory Results Sy PHOENIX Phoenix Life (PLIC) > PLIC statutory surplus and AVR decreased $29.8 million in 1Q16 reflecting: 409% 378% + $20.0 million in dividends paid to the 334% holding company + Lower admitted DTA as a result of the expiration of the loss carry back period for reco
Slide 10: Phoenix Life Mortality
Phoenix Life Mortality Results Sy PHOENIX Total PLIC Net Death Claims Closed Block Net Death Claims $200 - $200 $180 — $180 | $160 -— $160 — $140 — $140 $120 ~ = $120 — $100 $100 so a @ 2 $80 - —_— — — i— Es $60 $40 & $40 + $20 = $20 | so. 7 y $0 + , . 1015. 2015 3015 4015 1016 1015-2015) 3Q15. 4Q15
Slide 11: PHL Variable Statutory
PHL Variable Statutory Results Sy PHOENIX PHL Variable (PHLVIC) > PHLVIC statutory surplus and AVR increased $7.0 million in 1Q16 reflecting: « Unfavorable mortality experience versus expectations, primarily in UL + Offset by a $19 million capital contribution and a cash flow testing reserve release
Slide 12: PHL Variable Mortality
PHL Variable Mortality Results Sy PHOENIX Total PHLVIC Net Death Claims PHLVIC UL Net Death Claims $110 $110 $100 - $100 $90 $90 . $80 | $80 $70 $70 $60 $60 | $50 = $50 $40 $40 — $30 $30 $20 $20 $10 | a $10 | So + r CY 7 1 $0. : 1015 2Q15 3Q15 4Q15 1016 1015 2Q15. 3Q154Q15— 116 m=PHLVIC Net Death Cl
Slide 13: Holding Company Liquidity
Holding Company Liquidity Sy PHOENIX Holding Company Liquidity’ > Phoenix Life dividends of $20.0 million paid in 1Q16; remaining 2016 dividend capacity of $17.2 million > Operating expenses of $6.8 million in 1Q16 Ending Balance at 12/31/15 Sources —— versus $8.6 million in 4Q15 and $20.7 Divigens
Slide 14: Life and Annuity Sales
Life and Annuity Sales Sy PHOENIX Annuity Deposits Life Premium $770.9 $703.9 $189.4 S18 $76.4 $48 $4.0 $4.3 | | = oa 2014 2015 115 1016 2014 2015 1015 1016 > First quarter 2016 annuity deposits are lower but in line with expectations > Pricing and other product changes continued to have a positive
Slide 15: Saybrus
Saybrus Results Sy PHOENIX Saybrus Revenue Saybrus EBITDA $43.3 $37.5 $8.1 28% $6.3 —? $11.5 $9.0 i il = a |_| . ; . l ee 2014 2015 1015 1016 2014 2015 1015 1016 > Saybrus revenue grew by 28% versus a year ago reflecting increases in third-party business > EBITDA was lower due to investments in new
Slide 16: Update on Nassau Transaction
Update on Nassau Transaction Sy PHOENIX > On September 29, 2015, Phoenix and Nassau Reinsurance Group Holdings L.P. (Nassau) announced that they had entered into a definitive agreement in which Nassau will acquire Phoenix. > The transaction remains on track to close in the second quarter of 2016. >
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