The Phoenix Companies — Phoenix Companies — Q4 2015 Earnings Presentation
19 slides from The Phoenix Companies's earnings presentation, Mar 15, 2016
Slide 1: Earnings Review Fourth Quarter 2015
Earnings Review Fourth Quarter 2015 Sy PHOENIX March 15, 2016
Slide 2: Important Disclosures
Important Disclosures S35 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
Slide 3: Overview
Overview Ss PHOENIX > Fourth quarter 2015 GAAP net loss driven by: * Unfavorable mortality experience * Declining but still elevated financial reporting expenses * Partially offset by the annual actuarial assumption unlock > Investment portfolio remains high quality; fourth quarter 2015 net other-th
Slide 4: Summary of GAAP Results
Summary of GAAP Results S35 PHOENIX PNX Net Income (Loss) $(140.3) —$(74.0)_$(22.6) 815.7) | 821.4) | $(213.2) | sa3e7 Biv Net Income (tose) Fer $(24.40) $(12.87) $(3.93) so79)| $079 | $37.09) | $(23.25) Other Comprehensive Income (Loss) (oC) $(65.1) $(2.2) $(28.6) sza7 | $(30 | $(49.4) $(31.8) As o
Slide 5: 4Q15 Consolidated Mortality Results
4Q15 Consolidated Mortality Results sy pyoenix Total Net Death Claims Open Block Net Death Claims $260 $260 $240 $240 $220 $220 $200 - $200 $180 — $180 $160 -. ~ $160 $140 = $140 $120 + $120 $100 -- $100 $80 | $80 $60 + $60 $40 + — $40 $20 - ; F 7 $20 so |= = 4 $0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Slide 6: Long-Term Mortality Results In Line With Expectations
Long-Term Mortality Results In Line With Expectations Sy PHOENIX Net Death Claims — Cumulative Quarterly Actual versus Expectations $3,500 3,500 3,000 2500 - : all : ol] 3/6) 9/12/3/6)9|12/3 6/9 |12/3)6)9/12)3/ 6/9/12 3) 6/9/12 2010 2011 2012 2013 2o1e 2015 {Cumulative PlanSince2010_ mCumulative Act
Slide 7: 4Q15 Impact of Annual Actuarial Assumption Review
4Q15 Impact of Annual Actuarial Assumption Review Sy pyoenix Variable Universal Universal iad Variable Life Life nan Annuity Assets! $ (40) $ 06 $ 80 $ (0.4) Liabilities Profits followed by losses (24.9) (1.6) S i . Guaranteed benefits? (0.7) - 51 67 - Derivative liabilities? - - 5.1 10 - Other 01 (
Slide 8: 4Q15 Net Investment Income
4Q15 Net Investment Income Sy PHOENIX Net Investment Income $831 $835 S411 $395 $223 $228 $420 $440) 5107 i113) S116 $115) FY 2014 FY 2015 4Q14 = 3Q15 mOpen Block = Closed Block Sources of Net Investment Income 4Q14 3Q15 4Q15 Long Term Debt Alternative Investments! 13.4 20.6 Policy Loans 42.5 43.4 F
Slide 9: 4Q15 Investment Impairments
4Q15 Investment Impairments Sy PHOENIX GAAP Impairments 1Q15 2Q15 3Q15 4Q15 Structured Bonds $ - $ 02 $ - $ Private Corporate - - - 16 Public Corporate 28 13 141 28: 14 Total Credit Impairments 28 15 14 3.9 os Total Equity Impairments 0.2 69 - 01 1.8 Other Impairments - - = é 1.2 Total Impairments $
Slide 10: Portfolio Quality
Portfolio Quality Sy PHOENIX As of 12/31/11 As of 12/31/12 As of 12/31/13 As of 12/31/14 As of 12/31/15 Investment Grade Bonds Below Investment Grade (BIG) Bonds 8.0% 8.2% 7.1% 6.8% “Percentage of BIGinNAIC3 SSCS 598% 64.2% 64.2% 63.9% Percentage of BIG in NAIC 4-6 40.2% 35.8% 35.8% 36.1% > Portfoli
Slide 11: Phoenix Life Statutory Results
Phoenix Life Statutory Results Ss PHOENIX Phoenix Life (PLIC) > PLIC statutory surplus and AVR increased $21.4 million in 4Q15; full year 2015 409% decrease driven by: 337% 334% + De-stacking of the life insurance company subsidiaries which resulted in a $228.2 million extraordinary dividend of PHLV
Slide 12: 4Q15 Phoenix Life Mortality Results
4Q15 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 sso a if $80 - — $60 - — — = $60 $40 $40 - $20 $20 4 os. = ; ‘ . $0 + 1015. 2015. 3015 4Q15 1015 2015 3015 4Q15 Closed
Slide 13: PHL Variable Statutory Results
PHL Variable Statutory Results Sy PHOENIX PHL Variable (PHLVIC) > PHLVIC statutory surplus and AVR was flat relative to year-end 2014 reflecting: + $52.5 million benefit of the 2Q15 intercompany reinsurance treaty 281% + $33.1 million in capital contributions from the holding company 218% + $36.4 mi
Slide 14: 4Q15 PHL Variable Mortality Results
4Q15 PHL Variable Mortality Results Sy PHOENIX Total PHLVIC Net Death Claims PHLVIC UL Net Death Claims $70 $65 eT $60 360 | $55 $55 $50 $50 | $45 —_ $45 $40 $40 $35 $35 | = $30 + $30 $25 $25 | $20 | $20 . $15 - $15 | $10 $10 $5 $5 | f SO + 7 r . 1 $0 4 1Q15_— 2Q15- 3Q15 AQ 15 1015 2015 3Q15 4Q15 aP
Slide 15: Holding Company Liquidity
Holding Company Liquidity Sy PHOENIX Holding Company Liquidity Trend in Holding Company Liquidity’ As of 12/31/14 Ending Balance at 9/30/15 As of 12/31/15 Sources Dividends > Total Phoenix Life dividends of $59.9 million paid in 2015; full year 2016 dividend Net Taxes capacity of $37.2 million > Ope
Slide 16: Life and Annuity Sales
Life and Annuity Sales S35 PHOENIX Annuity Deposits Life Premium $770.9 $682.9 $703.9 | : : $4.8 $2.4 ; — | 2013 2014 2015 2013 2014 2015 > 2015 annuity deposits declined due to price and other product changes that had the intended effect of increasing annuity profitability > Life sales volume conti
Slide 17: Growth at Saybrus
Growth at Saybrus Sy PHOENIX Saybrus Revenue Saybrus EBITDA 15% $43.3 — $37.5 $26.8 29% $81 63 — > $3.5 2013 2=|S«204 2015 “9013 20142205: > Saybrus continued to grow its third-party business $ in millions
Slide 18: Nassau Transaction
Nassau Transaction Ss 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 is expected to close in the second quarter of 2016. > The following is
Slide 19: PHOENIX
Sy PHOENIX