Phoenix Launches Indexed Annuity Product Series With "Look Back” Indexed Accounts

The Phoenix Companies, Inc. (NYSE: PNX) is introducing Phoenix Reflections Bonus 10, Phoenix Reflections 10, and Phoenix Reflections 7. All products in the series are single-premium fixed indexed annuities that feature three optional guaranteed minimum withdrawal benefit riders, guaranteed principal protection, and a 10- or 7-year surrender charge schedule (depending on the product version). In addition, Phoenix Reflections Bonus 10 provides an upfront 5 percent premium bonus. The new series is particularly suited for retirement planning as it provides consumers with the potential for increased earnings while protecting against downside risk, something that may not be available with other fixed income investments.

"This is another flexible offering to complement the indexed annuity product series we launched in the fall of 2009," said Tom Buckingham, senior vice president, Product Development, Life and Annuity. "We continue to see increased demand from both distributors and consumers for products that take advantage of the market’s earning potential, while minimizing the investor’s downside risk. Adding Phoenix Reflections to our existing product suite is another step in our efforts to meet the needs of today’s consumer.”

Phoenix Reflections offers customers a choice of five accounts: three indexed accounts with earnings based on a point-to-point crediting method, one indexed account with earnings based on a performance trigger crediting method, and a fixed account that credits interest daily at a specified rate guaranteed for one year. Additional specifics on the indexed accounts are as follows:

• The S&P point-to-point indexed account provides annual credits to the customer equal to the positive 1-year return of the S&P 500, up to a specified cap.
• The other two point-to-point indexed accounts are "Look Back” options. These accounts provide annual credits to the customer based on the weighted average 1-year return of three measuring indices linked to domestic and global markets, up to a specified cap. The index with the best performance over the period is weighted 50 percent, whereas the worst performing index is weighted only 20 percent; the second best performing index is weighted at 30 percent. Since no one index performs best every year, these accounts take the guesswork out of deciding which index will perform best in a given year. The Domestic Look Back indexed account includes the S&P 500, NASDAQ 100 and iShares Barclays Aggregate Bond Fund, while the Global Look Back indexed account includes the S&P 500, Euro Stoxx 50 and iShares MSCI Hong Kong Index Fund.
• The performance trigger indexed account is also tied to the performance of the S&P 500 but is different from the point-to-point method in that it provides a pre-determined index credit if the 1-year S&P 500 return is positive.

With Phoenix Reflections Bonus 10, a premium bonus equal to 5 percent of the single premium is applied upfront to the account value. The premium bonus earns interest and/or index credits in the same way as premium, right from the start. Products offering a premium bonus may offer lower credited interest and/or indexed account rates than products not offering a premium bonus. Over time, under certain circumstances, the amount of the premium bonus may be more than offset by the lower rates.

Phoenix Reflections also features three optional guaranteed minimum withdrawal benefit riders for customers interested in purchasing additional income protection. Each guaranteed minimum withdrawal benefit rider offers a unique feature that allows the product to be tailored to each consumer’s particular income requirement. They include:

• "Income 25,” which provides a bonus to the initial benefit base equal to 25 percent of the account value (including any premium bonus, if applicable) at issue.
• "Income Plus,” which provides a guaranteed minimum 8 percent compound increase to the benefit base for the first 10 years or until the first withdrawal, whichever occurs first.
• "Income Max,” which provides relatively higher withdrawal percentages than other riders.

The single premium, any premium bonus and interest credited to the contract are allocated to a Separate Account. Under state law, the Separate Account assets are segregated from the General Account and consequently the Separate Account assets may not be used to pay liabilities arising out of other business Phoenix may conduct and are insulated from any creditors of the Phoenix Companies. Guarantees are based on the claims paying ability of the issuing insurance company, PHL Variable Insurance Company.

BACKGROUND ON INDEXED ANNUITIES

An indexed annuity allows consumers to benefit from growth in the market without the risk of direct investment in the market. It guarantees that principal will be protected because the account value increases as a result of positive index performance, but never loses value due to market downturns. When the index shows a positive performance over the particular indexed account’s one-year segment duration, "index credits” that are based on that performance are added to the account value. Unlike direct investments, the account does not lose any value when the markets go down because the index credit can never be negative – keeping the account value intact.

To learn more about Phoenix Reflections Bonus 10, Phoenix Reflections 10, Phoenix Reflections 7 and other annuity products available from Phoenix, agents and financial advisors can contact their Phoenix wholesaler, the Life and Annuity Sales Desk at 800-417-4769, or visit www.phoenixwm.com.

ABOUT PHOENIX

Dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) provides financial solutions using life insurance and annuities. In 2009, Phoenix had annual revenues of $2.1 billion and total assets of $24.9 billion at year end.

Phoenix offers a complete suite of annuity products with a full spectrum of optional guarantees. Phoenix annuity products are designed with maximum flexibility to help customers meet a range of retirement income needs. The company also is a leader in the life insurance industry, with a distinguished record of industry firsts in product design and underwriting.