The Phoenix Companies, Inc. (NYSE:PNX) Today Issues Statement in Response to Standard & Poor’s Announcement

James D. Wehr, president and chief executive officer of The Phoenix Companies, Inc. (NYSE:PNX), issues the following statement regarding Standard & Poor's announcement today about The Phoenix Companies, Inc.:

We strongly disagree with S&P and believe their actions are excessive and precipitous.

We believe our actions over the last few months have demonstrated progress and produced results for Phoenix’s financial health and stability. Our capital levels are sound, based on regulatory capital ratio requirements.

We will continue to take the right actions -- at the right time -- to retain our financial health and stability.

Specifically, as reported in our second quarter earnings, Tuesday, August 4, 2009:

• Phoenix is financially sound as measured by:

• A healthy balance sheet, with no debt maturing until 2032
• A solid investment portfolio
• Ample reserves of $13.8 billion and more than $1 billion of liquid assets at the life company

• Progress continues in our business:

• Significant cost reductions with a target of $110 million in annualized savings, essentially reducing our workforce by more than 35%, the result of which will emerge fully in the 4th quarter
• Substantial improvement to date in the investment portfolio, reducing unrealized losses by more than $720 million from the first quarter, as well as seeing a decline in credit impairments
• Enhanced holding company liquidity to cover more than two years of interest and operating expenses

We are committed to rebuilding Phoenix and appreciate the ongoing support of our regulators, policyholders, investors and employees. We believe that S&P's actions do not recognize the underlying financial strength of our company and encourage these key constituents to consider all of the facts when assessing our financial strength. S&P acknowledged a number of these facts in their press release.

ABOUT PHOENIX

With a history dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) provides financial solutions using life insurance and annuities, with particular expertise in the high-net-worth and affluent market. In 2008, Phoenix had annual revenues of $2.0 billion and total assets of $25.8 billion. More detailed financial information can be found in Phoenix’s financial supplement for the second quarter of 2009, which is available on Phoenix’s Web site, www.phoenixwm.com, in the Investor Relations section.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which, by their nature, are subject to risks and uncertainties. We intend for these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws relating to forward-looking statements. These include statements relating to trends in, or representing management’s beliefs about, our future transactions, strategies, operations and financial results, as well as other statements including words such as "anticipate,” "believe,” "plan,” "estimate,” "expect,” "intend,” "may,” "should” and other similar expressions. Forward-looking statements are made based upon our current expectations and beliefs concerning trends and future developments and their potential effects on the company. They are not guarantees of future performance. Our actual business, financial condition and results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, which include, among others: (i) unfavorable general economic developments including, but not limited to, specific related factors such as the performance of the debt and equity markets and changes in interest rates; (ii) the effect of continuing adverse capital and credit market conditions on our ability to meet our liquidity needs, our access to capital and our cost of capital; (iii) the possibility of losses due to defaults by others including, but not limited to, issuers of fixed income securities; (iv) changes in our investment valuations based on changes in our valuation methodologies, estimations and assumptions; (v) the effect of guaranteed benefits within our products; (vi) the consequences related to variations in the amount of our statutory capital due to factors beyond our control; (vii) downgrades in our debt or financial strength ratings; (viii) the possibility that mortality rates, persistency rates, funding levels or other factors may differ significantly from our pricing expectations; (ix) the availability, pricing and terms of reinsurance coverage generally and the inability or unwillingness of our reinsurers to meet their obligations to us specifically; (x) our dependence on non-affiliated distributors for our product sales; (xi) our dependence on third parties to maintain critical business and administrative functions; (xii) our ability to attract and retain key personnel in a competitive environment; (xiii) the strong competition we face in our business from banks, insurance companies and other financial services firms; (xiv) our reliance, as a holding company, on dividends and other payments from our subsidiaries to meet our financial obligations and pay future dividends, particularly since our insurance subsidiaries’ ability to pay dividends is subject to regulatory restrictions; (xv) the potential need to fund deficiencies in our Closed Block; (xvi) tax developments that may affect us directly, or indirectly through the cost of, the demand for or profitability of our products or services; (xvii) the possibility that the actions and initiatives of the U.S. Government, including those that we elect to participate in, may not improve adverse economic and market condition generally or our business, financial condition and results of operations specifically; (xviii) other legislative or regulatory developments; (xix) legal or regulatory actions; (xx) changes in accounting standards; (xxi) the potential effects of the spin-off of our former asset management subsidiary; (xxii) the potential effect of a material weakness in our internal control over financial reporting on the accuracy of our reported financial results; and (xxiii) the risks related to a man-made or natural disaster; and (xxiv) other risks and uncertainties described herein or in any of our filings with the SEC. We undertake no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.