2. Restatement of Financial Statements (Tables)

9 Months Ended

Sep. 30, 2012

Restatement Of Financial Statements Tables

Summary of Correction of Actuarial Finance Errors

Increase (decrease)	Summary of Correction of Actuarial Finance Errors – December 31, 2011 Balance Sheet Impacts(1)
($ in millions)	Actuarial Finance
	Accounting for UL Type Products			Shadow Accounting			Loss Recognition			Traditional Revenue Recognition			Future Cost of a Settlement			FIA			Other Actuarial			Total Actuarial Finance Errors(2)
ASSETS:
Available-for-sale debt securities, at fair value	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Available-for-sale equity securities, at fair value		—			—			—			—			—			—			—			—
Limited partnerships and other investments		—			—			—			—			—			—			—			—
Policy loans, at unpaid principal balances		—			—			—			—			—			—			—			—
Derivative investments		—			—			—			—			—			—			—			—
Fair value investments		—			—			—			—			—			—			—			—
Total investments		—			—			—			—			—			—			—			—
Cash and cash equivalents		—			—			—			—			—			—			—			—
Accrued investment income		—			—			—			—			—			—			—			—
Receivables		—			—			—			16.6			—			—			1.0			17.6
Deferred policy acquisition costs		57.3			(11.0	)		(1.8	)		(0.7	)		—			(3.4	)		1.1			41.5
Deferred income taxes, net		—			—			—			—			—			—			—			—
Other assets		—			—			(38.6	)		—			—			—			4.8			(33.8	)
Discontinued operations assets		—			—			—			—			—			—			—			—
Separate account assets		—			—			—			—			—			—			—			—
Total assets	$	57.3		$	(11.0	)	$	(40.4	)	$	15.9		$	—		$	(3.4	)	$	6.9		$	25.3
LIABILITIES:
Policy liabilities and accruals	$	179.4		$	9.2		$	11.0		$	12.1		$	7.7		$	—		$	21.3		$	240.7
Policyholder deposit funds		—			—			—			—			—			0.8			2.1			2.9
Dividend obligations		—			—			—			9.4			—			—			(8.4	)		1.0
Indebtedness		—			—			—			—			—			—			—			—
Other liabilities		—			—			—			—			—			—			0.2			0.2
Discontinued operations liabilities		—			—			—			—			—			—			—			—
Separate account liabilities		—			—			—			—			—			—			—			—
Total liabilities		179.4			9.2			11.0			21.5			7.7			0.8			15.2			244.8
STOCKHOLDERS’ EQUITY:
Common stock		—			—			—			—			—			—			—			—
Additional paid-in capital		—			—			—			—			—			—			—			—
Accumulated other comprehensive loss		—			(14.2	)		—			—			—			—			—			(14.2	)
Accumulated deficit		(80.7	)		—			(1.2	)		(0.5	)		(3.8	)		(4.2	)		(24.5	)		(114.9	)
Treasury stock		—			—			—			—			—			—			—			—
Noncontrolling interests		—			—			—			—			—			—			—			—
Total stockholders’ equity –periods presented(3)		(80.7	)		(14.2	)		(1.2	)		(0.5	)		(3.8	)		(4.2	)		(24.5	)		(129.1	)
Total stockholders’ equity – cumulative impact(4)		(41.4	)		(6.0	)		(50.2	)		(5.1	)		(3.9	)		—			16.2			(90.4	)
Total stockholders’ equity –  impact		(122.1	)		(20.2	)		(51.4	)		(5.6	)		(7.7	)		(4.2	)		(8.3	)		(219.5	)
Total liabilities and stockholders’ equity	$	57.3		$	(11.0	)	$	(40.4	)	$	15.9		$	—		$	(3.4	)	$	6.9		$	25.3

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

(3)	Amounts represent restatement changes made to the 2011 and 2010 periods as presented within the 2012 Report on Form 10-K as filed on April 1, 2014.
(4)	Amounts represent cumulative impact of restatement changes to periods prior to 2010.

Increase (decrease)	Summary of Correction of Actuarial Finance Errors – Three months ended September 30, 2011 Income Statement Impacts(1)
($ in millions)	Actuarial Finance
	Accounting for UL Type Products			Shadow Accounting		Loss Recognition			Traditional Revenue Recognition			Future Cost of a Settlement		FIA			Other Actuarial			Total Actuarial Finance Errors(2)
REVENUES
Premiums	$	—		$	—	$	—		$	(5.3	)	$	—	$	—		$	(0.2	)	$	(5.5	)
Fee income		(1.1	)		—		—			—			—		—			—			(1.1	)
Net investment income		—			—		—			—			—		—			—			—
Net realized investment gains (losses):
Total OTTI losses		—			—		—			—			—		—			—			—
Portion of OTTI losses recognized in OCI		—			—		—			—			—		—			—			—
Net OTTI losses recognized in earnings		—			—		—			—			—		—			—			—
Net realized investment gains (losses), excluding OTTI losses		—			—		—			—			—		—			(2.1	)		(2.1	)
Net realized investment gains (losses)		—			—		—			—			—		—			(2.1	)		(2.1	)
Gain on debt repurchase		—			—		—			—			—		—			—			—
Total revenues		(1.1	)		—		—			(5.3	)		—		—			(2.3	)		(8.7	)
BENEFITS AND EXPENSES
Policy benefits, excluding policyholder dividends		19.7			—		0.8			(5.1	)		—		4.0			6.9			26.3
Policyholder dividends		—			—		—			(0.1	)		—		—			(0.1	)		(0.2	)
Policy acquisition cost amortization		(15.2	)		—		—			—			—		1.5			(0.8	)		(14.5	)
Interest expense on indebtedness		—			—		—			—			—		—			—			—
Other operating expenses		—			—		—			—			—		—			—			—
Total benefits and expenses		4.5			—		0.8			(5.2	)		—		5.5			6.0			11.6
Income (loss) from continuing operations before income taxes		(5.6	)		—		(0.8	)		(0.1	)		—		(5.5	)		(8.3	)		(20.3	)
Income tax expense (benefit)		—			—		—			—			—		—			—			—
Income (loss) from continuing operations		(5.6	)		—		(0.8	)		(0.1	)		—		(5.5	)		(8.3	)		(20.3	)
Noncontrolling interests		—			—		—			—			—		—			—			—
Income (loss) from discontinued operations, net of income taxes		—			—		—			—			—		—			—			—
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(5.6	)	$	—	$	(0.8	)	$	(0.1	)	$	—	$	(5.5	)	$	(8.3	)	$	(20.3	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

(Continued from previous page)	Summary of Correction of Actuarial Finance Errors – Three months ended September 30, 2011 Income Statement Impacts(1)
Increase (decrease)	Actuarial Finance
($ in millions)	Accounting for UL Type Products			Shadow Accounting			Loss Recognition			Traditional Revenue Recognition			Future Cost of a Settlement		FIA			Other Actuarial			Total Actuarial Finance Errors(2)
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(5.6	)	$	—		$	(0.8	)	$	(0.1	)	$	—	$	(5.5	)	$	(8.3	)	$	(20.3	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes		—			(37.1	)		—			—			—		—			—			(37.1	)
Non-credit portion of OTTI losses recognized in     OCI before income taxes		—			—			—			—			—		—			—			—
Net pension liability adjustment before income taxes		—			—			—			—			—		—			—			—
Net unrealized other gains (losses) before income taxes		—			—			—			—			—		—			—			—
Net unrealized derivative instruments gains (losses) before income taxes		—			—			—			—			—		—			—			—
Other comprehensive income (loss) before income taxes		—			(37.1	)		—			—			—		—			—			(37.1	)
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses)		—			—			—			—			—		—			—			—
Non-credit portion of OTTI losses recognized in OCI		—			—			—			—			—		—			—			—
Net pension liability adjustment		—			—			—			—			—		—			—			—
Net unrealized other gains (losses)		—			—			—			—			—		—			—			—
Net unrealized derivative instruments gains (losses)		—			—			—			—			—		—			—			—
Total income tax expense (benefit)		—			—			—			—			—		—			—			—
Other comprehensive income (loss), net of income taxes		—			(37.1	)		—			—			—		—			—			(37.1	)
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.		(5.6	)		(37.1	)		(0.8	)		(0.1	)		—		(5.5	)		(8.3	)		(57.4	)
Add: Comprehensive income attributable to noncontrolling interests		—			—			—			—			—		—			—			—
Comprehensive income (loss)	$	(5.6	)	$	(37.1	)	$	(0.8	)	$	(0.1	)	$	—	$	(5.5	)	$	(8.3	)	$	(57.4	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

Increase (decrease)	Summary of Correction of Actuarial Finance Errors – Nine months ended September 30, 2011 Income Statement Impacts(1)
($ in millions)	Actuarial Finance
	Accounting for UL Type Products			Shadow Accounting		Loss Recognition			Traditional Revenue Recognition			Future Cost of a Settlement			FIA			Other Actuarial			Total Actuarial Finance Errors(2)
REVENUES
Premiums	$	—		$	—	$	—		$	(14.6	)	$	—		$	—		$	0.5		$	(14.1	)
Fee income		(0.7	)		—		—			—			—			—			0.6			(0.1	)
Net investment income		—			—		—			—			—			—			—			—
Net realized investment gains (losses):
Total OTTI losses		—			—		—			—			—			—			—			—
Portion of OTTI losses recognized in OCI		—			—		—			—			—			—			—			—
Net OTTI losses recognized in earnings		—			—		—			—			—			—			—			—
Net realized investment gains (losses), excluding OTTI losses		—			—		—			—			—			—			0.8			0.8
Net realized investment gains (losses)		—			—		—			—			—			—			0.8			0.8
Gain on debt repurchase		—			—		—			—			—			—			—			—
Total revenues		(0.7	)		—		—			(14.6	)		—			—			1.9			(13.4	)
BENEFITS AND EXPENSES
Policy benefits, excluding policyholder dividends		41.5			—		2.3			(13.6	)		—			4.0			15.3			49.5
Policyholder dividends		—			—		—			(0.7	)		—			—			(1.6	)		(2.3	)
Policy acquisition cost amortization		(12.6	)		—		—			—			—			2.1			(4.7	)		(15.2	)
Interest expense on indebtedness		—			—		—			—			—			—			—			—
Other operating expenses		—			—		—			—			(0.1	)		—			6.8			6.7
Total benefits and expenses		28.9			—		2.3			(14.3	)		(0.1	)		6.1			15.8			38.7
Income (loss) from continuing operations before income taxes		(29.6	)		—		(2.3	)		(0.3	)		0.1			(6.1	)		(13.9	)		(52.1	)
Income tax expense (benefit)		—			—		—			—			—			—			—			—
Income (loss) from continuing operations		(29.6	)		—		(2.3	)		(0.3	)		0.1			(6.1	)		(13.9	)		(52.1	)
Noncontrolling interests		—			—		—			—			—			—			—			—
Income (loss) from discontinued operations, net of income taxes		—			—		—			—			—			—			—			—
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(29.6	)	$	—	$	(2.3	)	$	(0.3	)	$	0.1		$	(6.1	)	$	(13.9	)	$	(52.1	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

(Continued from previous page)	Summary of Correction of Actuarial Finance Errors – Nine months ended September 30, 2011 Income Statement Impacts(1)
Increase (decrease)	Actuarial Finance
($ in millions)	Accounting for UL Type Products			Shadow Accounting			Loss Recognition			Traditional Revenue Recognition			Future Cost of a Settlement		FIA			Other Actuarial			Total Actuarial Finance Errors(2)
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(29.6	)	$	—		$	(2.3	)	$	(0.3	)	$	0.1	$	(6.1	)	$	(13.9	)	$	(52.1	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes		—			(29.0	)		—			—			—		—			—			(29.0	)
Non-credit portion of OTTI losses recognized in OCI before income taxes		—			—			—			—			—		—			—			—
Net pension liability adjustment before income taxes		—			—			—			—			—		—			—			—
Net unrealized other gains (losses) before income taxes		—			—			—			—			—		—			—			—
Net unrealized derivative instruments gains (losses) before income taxes		—			—			—			—			—		—			—			—
Other comprehensive income (loss) before income taxes		—			(29.0	)		—			—			—		—			—			(29.0	)
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses)		—			—			—			—			—		—			—			—
Non-credit portion of OTTI losses recognized in OCI		—			—			—			—			—		—			—			—
Net pension liability adjustment		—			—			—			—			—		—			—			—
Net unrealized other gains (losses)		—			—			—			—			—		—			—			—
Net unrealized derivative instruments gains (losses)		—			—			—			—			—		—			—			—
Total income tax expense (benefit)		—			—			—			—			—		—			—			—
Other comprehensive income (loss), net of income taxes		—			(29.0	)		—			—			—		—			—			(29.0	)
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.		(29.6	)		(29.0	)		(2.3	)		(0.3	)		0.1		(6.1	)		(13.9	)		(81.1	)
Add: Comprehensive income attributable to noncontrolling interests		—			—			—			—			—		—			—			—
Comprehensive income (loss)	$	(29.6	)	$	(29.0	)	$	(2.3	)	$	(0.3	)	$	0.1	$	(6.1	)	$	(13.9	)	$	(81.1	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

Summary of Correction of Investments Errors

Increase (decrease)	Summary of Correction of Investments Errors – December 31, 2011 Balance Sheet Impacts(1)
($ in millions)	Investments
	OIA			Available-for-Sale Securities						Derivative Valuation			Structured Securities			Total Investments Errors(2)
				Valuation			Bond Call
ASSETS:
Available-for-sale debt securities, at fair value	$	—		$	(10.0	)	$	(25.3	)	$	—		$	(55.7	)	$	(91.0	)
Available-for-sale equity securities, at fair value		—			—			—			—			—			—
Limited partnerships and other investments		(35.9	)		—			—			—			—			(35.9	)
Policy loans, at unpaid principal balances		—			—			—			—			—			—
Derivative investments		—			—			—			(12.6	)		—			(12.6	)
Fair value investments		44.0			(2.2	)		—			—			55.7			97.5
Total investments		8.1			(12.2	)		(25.3	)		(12.6	)		—			(42.0	)
Cash and cash equivalents		2.0			—			—			—			—			2.0
Accrued investment income		—			—			—			—			—			—
Receivables		—			—			—			—			—			—
Deferred policy acquisition costs		—			—			—			(13.1	)		—			(13.1	)
Deferred income taxes, net		—			—			—			—			—			—
Other assets		(4.4	)		—			23.2			(6.7	)		—			12.1
Discontinued operations assets		—			—			—			—			—			—
Separate account assets		—			—			—			—			—			—
Total assets	$	5.7		$	(12.2	)	$	(2.1	)	$	(32.4	)	$	—		$	(41.0	)
LIABILITIES:
Policy liabilities and accruals	$	—		$	—		$	—		$	—		$	—		$	—
Policyholder deposit funds		—			—			—			—			—			—
Dividend obligations		4.1			(9.6	)		(2.1	)		—			—			(7.6	)
Indebtedness		—			—			—			—			—			—
Other liabilities		5.4			7.1			—			—			—			12.5
Discontinued operations liabilities		—			—			—			—			—			—
Separate account liabilities		—			—			—			—			—			—
Total liabilities		9.5			(2.5	)		(2.1	)		—			—			4.9
STOCKHOLDERS’ EQUITY:
Common stock		—			—			—			—			—			—
Additional paid-in capital		—			—			—			—			—			—
Accumulated other comprehensive loss		(15.7	)		24.3			—			—			3.0			11.6
Accumulated deficit		0.9			4.9			—			(16.6	)		(3.0	)		(13.8	)
Treasury stock		—			—			—			—			—			—
Noncontrolling interests		(1.0	)		—			—			—			—			(1.0	)
Total stockholders’ equity –periods presented(3)		(15.8	)		29.2			—			(16.6	)		—			(3.2	)
Total stockholders’ equity – cumulative impact(4)		12.0			(38.9	)		—			(15.8	)		—			(42.7	)
Total stockholders’ equity – impact		(3.8	)		(9.7	)		—			(32.4	)		—			(45.9	)
Total liabilities and stockholders’ equity	$	5.7		$	(12.2	)	$	(2.1	)	$	(32.4	)	$	—		$	(41.0	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

(3)	Amounts represent restatement changes made to the 2011 and 2010 periods as presented within the 2012 Report on Form 10-K which was filed April 1, 2014.
(4)	Amounts represent cumulative impact of restatement changes made to periods prior to 2010.

Increase (decrease)	Summary of Correction of Investments Errors – Three months ended September 30, 2011 Income Statement Impacts(1)
($ in millions)	Investments
	OIA			Available-for-Sale Securities					Derivative Valuation			Structured Securities			Total Investments Errors(2)
				Valuation			Bond Call
REVENUES
Premiums	$	—		$	—		$	—	$	—		$	—		$	—
Fee income
Net investment income		6.2			0.1			—		—			(1.1	)		5.2
Net realized investment gains (losses):		—			—			—		—			—			—
Total OTTI losses		—			—			—		—			—			—
Portion of OTTI losses recognized in OCI		—			—			—		—			—			—
Net OTTI losses recognized in earnings		—			—			—		—			—			—
Net realized investment gains (losses), excluding OTTI losses		(2.1	)		(0.4	)		—		(10.7	)		(0.8	)		(14.0	)
Net realized investment gains (losses)		(2.1	)		(0.4	)		—		(10.7	)		(0.8	)		(14.0	)
Gain on debt repurchase		—			—			—		—			—			—
Total revenues		4.1			(0.3	)		—		(10.7	)		(1.9	)		(8.8	)
		—			—			—		—			—			—
BENEFITS AND EXPENSES		—			—			—		—			—			—
Policy benefits, excluding policyholder dividends		—			—			—		—			—			—
Policyholder dividends		2.1			0.2			—		—			0.1			2.4
Policy acquisition cost amortization		—			—			—		(0.4	)		—			(0.4	)
Interest expense on indebtedness		—			—			—		—			—			—
Other operating expenses		0.3			—			—		—			—			0.3
Total benefits and expenses		2.4			0.2			—		(0.4	)		0.1			2.3
Income (loss) from continuing operations before income taxes		1.7			(0.5	)		—		(10.3	)		(2.0	)		(11.1	)
Income tax expense (benefit)
Income (loss) from continuing operations		1.7			(0.5	)		—		(10.3	)		(2.0	)		(11.1	)
Noncontrolling interests		(0.3	)		—			—		—			—			(0.3	)
Income (loss) from discontinued operations, net of income taxes		—			—			—		—			—			—
Net income (loss) attributable to The Phoenix Companies, Inc.	$	2.0		$	(0.5	)	$	—	$	(10.3	)	$	(2.0	)	$	(10.8	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

(Continued from previous page)	Summary of Correction of Investments Errors – Three months ended September 30, 2011 Income Statement Impacts(1)
Increase (decrease)	Investments
($ in millions)	OIA			Available-for-Sale Securities					Derivative Valuation			Structured Securities			Total Investments Errors(2)
				Valuation			Bond Call
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	2.0		$	(0.5	)	$	—	$	(10.3	)	$	(2.0	)	$	(10.8	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes		(4.8	)		(3.6	)		—		—			1.9			(6.5	)
Non-credit portion of OTTI losses recognized in OCI before income taxes		—			—			—		—			—			—
Net pension liability adjustment before income taxes		—			—			—		—			—			—
Net unrealized other gains (losses) before income taxes		—			—			—		—			—			—
Net unrealized derivative instruments gains (losses) before income taxes		—			—			—		—			—			—
Other comprehensive income (loss) before income taxes		(4.8	)		(3.6	)		—		—			1.9			(6.5	)
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses)		—			—			—		—			—			—
Non-credit portion of OTTI losses recognized in OCI		—			—			—		—			—			—
Net pension liability adjustment		—			—			—		—			—			—
Net unrealized other gains (losses)		—			—			—		—			—			—
Net unrealized derivative instruments gains (losses)		—			—			—		—			—			—
Total income tax expense (benefit)		—			—			—		—			—			—
Other comprehensive income (loss), net of income taxes		(4.8	)		(3.6	)		—		—			1.9			(6.5	)
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.		(2.8	)		(4.1	)		—		(10.3	)		(0.1	)		(17.3	)
Add: Comprehensive income attributable to noncontrolling interests		—			—			—		—			—			—
Comprehensive income (loss)	$	(2.8	)	$	(4.1	)	$	—	$	(10.3	)	$	(0.1	)	$	(17.3	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

Increase (decrease)	Summary of Correction of Investments Errors – Nine months ended September 30, 2011 Income Statement Impacts(1)
($ in millions)	Investments
	OIA			Available-for-Sale Securities					Derivative Valuation			Structured Securities			Total Investments Errors(2)
				Valuation			Bond Call
REVENUES
Premiums	$	—		$	—		$	—	$	—		$	—		$	—
Fee income
Net investment income		16.4			1.8			—		—			(1.4	)		16.8
Net realized investment gains (losses):		—			—			—		—			—			—
Total OTTI losses		—			—			—		—			—			—
Portion of OTTI losses recognized in OCI		—			—			—		—			—			—
Net OTTI losses recognized in earnings		—			—			—		—			—			—
Net realized investment gains (losses), excluding OTTI losses		—			(0.1	)		—		(12.3	)		(1.3	)		(13.7	)
Net realized investment gains (losses)		—			(0.1	)		—		(12.3	)		(1.3	)		(13.7	)
Gain on debt repurchase		—			—			—		—			—			—
Total revenues		16.4			1.7			—		(12.3	)		(2.7	)		3.1
		—			—			—		—			—			—
BENEFITS AND EXPENSES		—			—			—		—			—			—
Policy benefits, excluding policyholder dividends		—			—			—		—			—			—
Policyholder dividends		13.0			(1.1	)		—		—			1.0			12.9
Policy acquisition cost amortization		—			—			—		(0.4	)		—			(0.4	)
Interest expense on indebtedness		—			—			—		—			—			—
Other operating expenses		0.9			—			—		—			—			0.9
Total benefits and expenses		13.9			(1.1	)		—		(0.4	)		1.0			13.4
Income (loss) from continuing operations before income taxes		2.5			2.8			—		(11.9	)		(3.7	)		(10.3	)
Income tax expense (benefit)
Income (loss) from continuing operations		2.5			2.8			—		(11.9	)		(3.7	)		(10.3	)
Noncontrolling interests		(0.4	)		—			—		—			—			(0.4	)
Income (loss) from discontinued operations, net of income taxes		—			—			—		—			—			—
Net income (loss) attributable to
The Phoenix Companies, Inc.	$	2.9		$	2.8		$	—	$	(11.9	)	$	(3.7	)	$	(9.9	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which is further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

Consolidated Summary of Correction of Errors

(Continued from previous page)	Summary of Correction of Errors – Nine months ended September 30, 2011 Income Statement Impacts(1)
Increase (decrease)	Investments
($ in millions)	OIA			Available-for-Sale Securities				Derivative Valuation			Structured Securities			Total Investments Errors(2)
				Valuation		Bond Call
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	2.9		$	2.8	$	—	$	(11.9	)	$	(3.7	)	$	(9.9	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes		(3.8	)		4.6		—		—			3.6			4.4
Non-credit portion of OTTI losses recognized in OCI before income taxes		—			—		—		—			—			—
Net pension liability adjustment before income taxes		—			—		—		—			—			—
Net unrealized other gains (losses) before income taxes		—			—		—		—			—			—
Net unrealized derivative instruments gains (losses) before income taxes		—			—		—		—			—			—
Other comprehensive income (loss) before income taxes		(3.8	)		4.6		—		—			3.6			4.4
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses)		—			—		—		—			—			—
Non-credit portion of OTTI losses recognized in OCI		—			—		—		—			—			—
Net pension liability adjustment		—			—		—		—			—			—
Net unrealized other gains (losses)		—			—		—		—			—			—
Net unrealized derivative instruments gains (losses)		—			—		—		—			—			—
Total income tax expense (benefit)		—			—		—		—			—			—
Other comprehensive income (loss), net of income taxes		(3.8	)		4.6		—		—			3.6			4.4
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.		(0.9	)		7.4		—		(11.9	)		(0.1	)		(5.5	)
Add: Comprehensive income attributable to noncontrolling interests		—			—		—		—			—			—
Comprehensive income (loss)	$	(0.9	)	$	7.4	$	—	$	(11.9	)	$	(0.1	)	$	(5.5	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which are further aggregated into the “Consolidated Summary of Correction of Errors” in the following pages.

Increase (decrease)	For the
($ in millions)	period ended
	Sept 30, 2011
Consolidated Statement of Cash Flows
Cash provided by (used for) operating activities	$	(227.1	)
Cash provided by (used for) investing activities		90.2
Cash provided by (used for) financing activities		143.4

Increase (decrease)	Consolidated Summary of Correction of Errors – December 31, 2011 Balance Sheet Impacts(1)
($ in millions)	Total Actuarial Finance(2)	Total Investments(3)	Reinsurance Accounting	Pensions	OIA Taxable Income	Changes in Classification
						Cash and Suspense	Reinsurance	Reclassify & Separately Present	Other Restatement Adjustments	Total Correction of Errors(4)
ASSETS:

Available-for-sale debt securities, at fair value	$	—		$	(91.0	)	$	—	$	—		$	—	$	—		$	—	$	—		$	(2.0	)	$	(93.0	)
Available-for-sale equity securities, at fair value		—			—			—		—			—		—			—		—			—			—
Limited partnerships and other investments		—			(35.9	)		—		—			—		—			—		—			(0.1	)		(36.0	)
Policy loans, at unpaid principal balances		—			—			—		—			—		—			—		—			—			—
Derivative investments		—			(12.6	)		—		—			—		—			—		—			—			(12.6	)
Fair value investments		—			97.5			—		—			—		—			—		—			(0.1	)		97.4
Total investments		—			(42.0	)		—		—			—		—			—		—			(2.2	)		(44.2	)
Cash and cash equivalents		—			2.0			—		—			—		(28.4	)		—		—			0.3			(26.1	)
Accrued investment income		—			—			—		—			—		—			—		—			—			—
Receivables		17.6			—			—		—			—		16.4			196.6		—			2.9			233.5
Deferred policy acquisition costs		41.5			(13.1	)		—		—			—		—			—		(42.2	)		0.1			(13.7	)
Deferred income taxes, net		—			—			—		—			—		—			—		—			2.4			2.4
Other assets		(33.8	)		12.1			39.6		—			—		8.8			—		42.2			(2.4	)		66.5
Discontinued operations assets		—			—			—		—			—		—			14.1		—			2.0			16.1
Separate account assets		—			—			—		(0.7	)		—		—			—		—			—			(0.7	)
Total assets	$	25.3		$	(41.0	)	$	39.6	$	(0.7	)	$	—	$	(3.2	)	$	210.7	$	—		$	3.1		$	233.8

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Consolidated Statement of Comprehensive Income” reflected in the tables on the following pages.

(Continued from previous page)	Consolidated Summary of Correction of Errors – December 31, 2011 Balance Sheet Impacts(1)
Increase (decrease)	Total Actuarial Finance(2)	Total Investments(3)	Reinsurance Accounting	Pensions	OIA Taxable Income	Changes in Classification
($ in millions)						Cash and Suspense	Reinsurance	Reclassify & Separately Present	Other Restatement Adjustments	Total Correction of Errors(4)
LIABILITIES:

Policy liabilities and accruals	$	240.7		$	—		$	—	$	—		$	—		$	—		$	196.6	$	(759.8	)	$	5.3		$	(317.2	)
Policyholder deposit funds		2.9			—			—		—			—			—			—		—			(0.1	)		2.8
Dividend obligation		1.0			(7.6	)		—		—			—			—			—		759.8			(0.7	)		752.5
Indebtedness		—			—			—		—			—			—			—		—			—			—
Other liabilities		0.2			12.5			—		22.9			6.9			(3.2	)		—		—			5.0			44.3
Discontinued operations liabilities		—			—			—		—			—			—			14.1		—			2.0			16.1
Separate account liabilities		—			—			—		(0.7	)		—			—			—		—			—			(0.7	)
Total liabilities		244.8			4.9			—		22.2			6.9			(3.2	)		210.7		—			11.5			497.8
STOCKHOLDERS’ EQUITY:
Common stock		—			—			—		—			—			—			—		—			—			—
Additional paid-in capital		—			—			—		—			—			—			—		—			—			—
Accumulated other comprehensive loss		(14.2	)		11.6			—		(13.4	)		—			—			—		—			(49.7	)		(65.7	)
Accumulated deficit		(114.9	)		(13.8	)		3.0		5.3			(3.3	)		—			—		—			11.1			(112.6	)
Treasury stock		—			—			—		—			—			—			—		—			—			—
Noncontrolling interests		—			(1.0	)		—		—			—			—			—		—			—			(1.0	)
Total stockholders’ equity –  periods presented(5)		(129.1	)		(3.2	)		3.0		(8.1	)		(3.3	)		—			—		—			(38.6	)		(179.3	)
Total stockholders’ equity –  cumulative impact(6)		(90.4	)		(42.7	)		36.6		(14.8	)		(3.6	)		—			—		—			30.2			(84.7	)
Total stockholders’ equity –impact		(219.5	)		(45.9	)		39.6		(22.9	)		(6.9	)		—			—		—			(8.4	)		(264.0	)
Total liabilities and  stockholders’ equity	$	25.3		$	(41.0	)	$	39.6	$	(0.7	)	$	—		$	(3.2	)	$	210.7	$	—		$	3.1		$	233.8

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Consolidated Statement of Comprehensive Income” reflected in the tables on the following pages.

(5)	Amounts represent restatement changes made to the 2011 and 2010 periods as presented within the 2012 Form 10-K.
(6)	Amounts represent cumulative impact of restatement changes made to periods prior to 2010.

Increase (decrease)	Summary of Correction of Errors – Three months ended September 30, 2011 Income Statement Impacts(1)
($ in millions)	Consolidated
	Total Actuarial Finance(2)			Total Investments(3)			Reinsurance Accounting			Pensions			OIA Taxable Income		Other Restatement Adjustments			Total Correction of Errors(4)
REVENUES
Premiums	$	(5.5	)	$	—		$	—		$	—		$	—	$	—		$	(5.5	)
Fee income		(1.1	)		—			—			—			—		—			(1.1	)
Net investment income		—			5.2			—			—			—		(2.7	)		2.5
Net realized investment gains (losses):
Total OTTI losses		—			—			—			—			—		0.1			0.1
Portion of OTTI losses recognized in OCI		—			—			—			—			—		(1.4	)		(1.4	)
Net OTTI losses recognized in earnings		—			—			—			—			—		(1.3	)		(1.3	)
Net realized investment gains (losses), excluding OTTI losses		(2.1	)		(14.0	)		—			—			—		1.2			(14.9	)
Net realized investment gains (losses)		(2.1	)		(14.0	)		—			—			—		(0.1	)		(16.2	)
Gain on debt repurchase		—			—			—			—			—		—			—
Total revenues		(8.7	)		(8.8	)		—			—			—		(2.8	)		(20.3	)
BENEFITS AND EXPENSES
Policy benefits, excluding policyholder dividends		26.3			—			(1.0	)		—			—		(0.2	)		25.1
Policyholder dividends		(0.2	)		2.4			—			—			—		(0.2	)		2.0
Policy acquisition cost amortization		(14.5	)		(0.4	)		—			—			—		—			(14.9	)
Interest expense on indebtedness		—			—			—			—			—		—			—
Other operating expenses		—			0.3			—			2.3			—		(2.8	)		(0.2	)
Total benefits and expenses		11.6			2.3			(1.0	)		2.3			—		(3.2	)		12.0
Income (loss) from continuing operations before income taxes		(20.3	)		(11.1	)		1.0			(2.3	)		—		0.4			(32.3	)
Income tax expense (benefit)		—			—			—			—			—		(1.2	)		(1.2	)
Income (loss) from continuing operations		(20.3	)		(11.1	)		1.0			(2.3	)		—		1.6			(31.1	)
Noncontrolling interests		—			(0.3	)		—			—			—		—			(0.3	)
Income (loss) from discontinued operations, net of income taxes		—			—			—			—			—		0.8			0.8
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(20.3	)	$	(10.8	)	$	1.0		$	(2.3	)	$	—	$	2.4		$	(30.0	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Consolidated Statement of Comprehensive Income” reflected in the tables on the following pages.

(Continued from previous page)	Summary of Correction of Errors – Three months ended September 30, 2011 Income Statement Impacts(1)
Increase (decrease)	Consolidated
($ in millions)	Total Actuarial Finance(2)			Total Investments(3)			Reinsurance Accounting		Pensions			OIA Taxable Income		Other Restatement Adjustments			Total Correction of Errors(4)
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(20.3	)	$	(10.8	)	$	1.0	$	(2.3	)	$	—	$	2.4		$	(30.0	)
Other comprehensive income (loss) before income taxes:		—			—			—		—			—		—			—
Net unrealized investment gains before income taxes(5)		(37.1	)		(6.5	)		—		—			—		61.3			17.7
Non-credit portion of OTTI losses recognized in OCI before income taxes(5)															(43.6	)		(43.6	)
Net pension liability adjustment before income taxes		—			—			—		7.2			—		(16.4	)		(9.2	)
Net unrealized other gains (losses) before income taxes		—			—			—		—			—		—			—
Net unrealized derivative instruments gains (losses) before income taxes(5)		—			—			—		—			—		(1.1	)		(1.1	)
Other comprehensive income (loss) before income taxes		(37.1	)		(6.5	)		—		7.2			—		0.2			(36.2	)
Less: Income tax expense (benefit) related to:		—			—			—		—			—		—			—
Net unrealized investment gains (losses)(5)		—			—			—		—			—		20.8			20.8
Non-credit portion of OTTI losses recognized in OCI(5)		—			—			—		—			—		(15.3	)		(15.3	)
Net pension liability adjustment		—			—			—		—			—		—			—
Net unrealized other gains (losses)		—			—			—		—			—		—			—
Net unrealized derivative instruments gains (losses)		—			—			—		—			—		—			—
Total income tax expense (benefit)		—			—			—		—			—		5.5			5.5
Other comprehensive income (loss), net of income taxes		(37.1	)		(6.5	)		—		7.2			—		(5.3	)		(41.7	)
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.		(57.4	)		(17.3	)		1.0		4.9			—		(2.9	)		(71.7	)
Add: Comprehensive income attributable to noncontrolling interests		—			—			—		—			—		(0.3	)		(0.3	)
Comprehensive income (loss)	$	(57.4	)	$	(17.3	)	$	1.0	$	4.9		$	—	$	(3.2	)	$	(72.0	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Consolidated Statement of Comprehensive Income” reflected in the tables on the following pages.

(5)   In addition to adjustments described within this footnote the correction of errors column contains reclassifications related to changes in presentation of components of other comprehensive income.

Increase (decrease)	Summary of Correction of Errors – Nine months ended September 30, 2011 Income Statement Impacts(1)
($ in millions)	Consolidated
	Total Actuarial Finance(2)			Total Investments(3)			Reinsurance Accounting			Pensions			OIA Taxable Income		Other Restatement Adjustments			Total Correction of Errors(4)
REVENUES
Premiums	$	(14.1	)	$	—		$	—		$	—		$	—	$	—		$	(14.1	)
Fee income		(0.1	)		—			—			—			—		(0.1	)		(0.2	)
Net investment income		—			16.8			—			—			—		(1.3	)		15.5
Net realized investment gains (losses):
Total OTTI losses		—			—			—			—			—		0.4			0.4
Portion of OTTI losses recognized in OCI		—			—			—			—			—		(1.8	)		(1.8	)
Net OTTI losses recognized in earnings		—			—			—			—			—		(1.4	)		(1.4	)
Net realized investment gains (losses), excluding OTTI losses		0.8			(13.7	)		—			—			—		3.3			(9.6	)
Net realized investment gains (losses)		0.8			(13.7	)		—			—			—		1.9			(11.0	)
Gain on debt repurchase		—			—			—			—			—		—			—
Total revenues		(13.4	)		3.1			—			—			—		0.5			(9.8	)
BENEFITS AND EXPENSES
Policy benefits, excluding policyholder dividends		49.5			—			(4.2	)		—			—		0.1			45.4
Policyholder dividends		(2.3	)		12.9			—			—			—		(0.4	)		10.2
Policy acquisition cost amortization		(15.2	)		(0.4	)		—			—			—		—			(15.6	)
Interest expense on indebtedness		—			—			—			—			—		—			—
Other operating expenses		6.7			0.9			—			3.9			—		(0.9	)		10.6
Total benefits and expenses		38.7			13.4			(4.2	)		3.9			—		(1.2	)		50.6
Income (loss) from continuing operations before income taxes		(52.1	)		(10.3	)		4.2			(3.9	)		—		1.7			(60.4	)
Income tax expense (benefit)		—			—			—			—			—		(0.3	)		(0.3	)
Income (loss) from continuing operations		(52.1	)		(10.3	)		4.2			(3.9	)		—		2.0			(60.1	)
Noncontrolling interests		—			(0.4	)		—			—			—		—			(0.4	)
Income (loss) from discontinued operations, net of income taxes		—			—			—			—			—		0.8			0.8
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(52.1	)	$	(9.9	)	$	4.2		$	(3.9	)	$	—	$	2.8		$	(58.9	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Consolidated Statement of Comprehensive Income” reflected in the tables on the following pages.

(Continued from previous page)	Summary of Correction of Errors – Nine months ended September 30, 2011 Income Statement Impacts(1)
Increase (decrease)	Consolidated
($ in millions)	Total Actuarial Finance(2)			Total Investments(3)			Reinsurance Accounting		Pensions			OIA Taxable Income		Other Restatement Adjustments			Total Correction of Errors(4)
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	(52.1	)	$	(9.9	)	$	4.2	$	(3.9	)	$	—	$	2.8		$	(58.9	)
Other comprehensive income (loss) before income taxes:		—			—			—		—			—		—			—
Net unrealized investment gains before income taxes(5)		(29.0	)		4.4			—		—			—		60.6			36.0
Non-credit portion of OTTI losses recognized in OCI before income taxes(5)															(44.9	)		(44.9	)
Net pension liability adjustment before income taxes		—			—			—		8.9			—		(16.3	)		(7.4	)
Net unrealized other gains (losses) before income taxes		—			—			—		—			—		—			—
Net unrealized derivative instruments gains (losses) before income taxes(5)		—			—			—		—			—		0.1			0.1
Other comprehensive income (loss) before income taxes		(29.0	)		4.4			—		8.9			—		(0.5	)		(16.2	)
Less: Income tax expense (benefit) related to:		—			—			—		—			—		—			—
Net unrealized investment gains (losses)(5)		—			—			—		—			—		29.6			29.6
Non-credit portion of OTTI losses recognized in OCI(5)		—			—			—		—			—		(15.8	)		(15.8	)
Net pension liability adjustment		—			—			—		—			—		—			—
Net unrealized other gains (losses)		—			—			—		—			—		—			—
Net unrealized derivative instruments gains (losses)		—			—			—		—			—		—			—
Total income tax expense (benefit)		—			—			—		—			—		13.8			13.8
Other comprehensive income (loss), net of income taxes		(29.0	)		4.4			—		8.9			—		(14.3	)		(30.0	)
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.		(81.1	)		(5.5	)		4.2		5.0			—		(11.5	)		(88.9	)
Add: Comprehensive income attributable to noncontrolling interests		—			—			—		—			—		(0.4	)		(0.4	)
Comprehensive income (loss)		(81.1	)	$	(5.5	)	$	4.2	$	5.0		$	—	$	(11.9	)	$	(89.3	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Consolidated Statement of Comprehensive Income” reflected in the tables on the following pages.

(5)   In addition to adjustments described within this footnote the correction of errors column contains reclassifications related to changes in presentation of components of other comprehensive income.

Restatement of Consolidated Financial Statements

	Consolidated Balance Sheet
($ in millions, except share data)	As of and for the year ended December 31, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the retrospective adoption			Retrospective Adoption(2)			As restated and amended
ASSETS:
Available-for-sale debt securities, at fair value	$	11,890.0		$	(93.0	)	$	11,797.0		$	—		$	11,797.0
Available-for-sale equity securities, at fair value		35.7			—			35.7			—			35.7
Limited partnerships and other investments		601.3			(36.0	)		565.3			—			565.3
Policy loans, at unpaid principal balances		2,379.3			—			2,379.3			—			2,379.3
Derivative investments		174.8			(12.6	)		162.2			—			162.2
Fair value investments		86.6			97.4			184.0			—			184.0
Total investments		15,167.7			(44.2	)		15,123.5			—			15,123.5
Cash and cash equivalents		194.3			(26.1	)		168.2			—			168.2
Accrued investment income		175.6			—			175.6			—			175.6
Receivables		415.1			233.5			648.6			—			648.6
Deferred policy acquisition costs		1,317.6			(13.7	)		1,303.9			(184.7	)		1,119.2
Deferred income taxes, net		118.2			2.4			120.6			—			120.6
Other assets		164.6			66.5			231.1			(1.0	)		230.1
Discontinued operations assets		69.2			16.1			85.3			—			85.3
Separate account assets		3,817.6			(0.7	)		3,816.9			—			3,816.9
Total assets	$	21,439.9		$	233.8		$	21,673.7		$	(185.7	)	$	21,488.0
LIABILITIES:
Policy liabilities and accruals(3)	$	12,967.8		$	(317.2	)	$	12,650.6		$	(19.2	)	$	12,631.4
Policyholder deposit funds		2,429.4			2.8			2,432.2			—			2,432.2
Dividend obligations(4)		—			752.5			752.5			—			752.5
Indebtedness		426.9			—			426.9			—			426.9
Other liabilities		613.7			44.3			658.0			—			658.0
Discontinued operations liabilities		58.3			16.1			74.4			—			74.4
Separate account liabilities		3,817.6			(0.7	)		3,816.9			—			3,816.9
Total liabilities		20,313.7			497.8			20,811.5			(19.2	)		20,792.3
COMMITMENTS AND CONTINGENT
LIABILITIES (Notes 21 & 22)
STOCKHOLDERS’ EQUITY:
Common stock, $.01 par value: 5.8 million shares outstanding(5)		1.3			—			1.3			—			1.3
Additional paid-in capital		2,630.5			—			2,630.5			—			2,630.5
Accumulated other comprehensive income (loss)		(170.7	)		(103.5	)		(274.2	)		43.5			(230.7	)
Accumulated deficit		(1,155.4	)		(163.3	)		(1,318.7	)		(210.0	)		(1,528.7	)
Treasury stock, at cost: 0.6 million shares(5)		(179.5	)		—			(179.5	)		—			(179.5	)
Total The Phoenix Companies, Inc. stockholders’ equity		1,126.2			(266.8	)		859.4			(166.5	)		692.9
Noncontrolling interests		—			2.8			2.8			—			2.8
Total stockholders’ equity		1,126.2			(264.0	)		862.2			(166.5	)		695.7
Total liabilities and stockholders’ equity	$	21,439.9		$	233.8		$	21,673.7		$	(185.7	)	$	21,488.0

———————

(1)

Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26). See footnote 2 below for additional information regarding these amounts and the retrospective adoption.

(2)

Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26), have been updated from those originally disclosed in the First Quarter 2012 Quarterly Report on Form 10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.

(3)	Included within policyholder liabilities and accruals is the post-ASU gross profits followed by losses reserve of $211.8 million. The corresponding net post-ASU amount of $200.5 million reported within the consolidated financial statements includes $(11.2) million of shadow profits followed by losses, both of which are discussed further within the “Actuarial Finance” section of this Note.
(4)	Dividend obligations were previously included in policy liabilities and accruals.

(5)   All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012.

	Consolidated Statement of Comprehensive Income
($ in millions, except share data)	Three months ended September 30, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the retrospective adoption			Retrospective Adoption(2)			As restated and amended
REVENUES:
Premiums	$	117.4		$	(5.5	)	$	111.9		$	—		$	111.9
Fee income		147.6			(1.1	)		146.5			—			146.5
Net investment income		201.0			2.5			203.5			—			203.5
Net realized investment gains (losses):
Total OTTI losses		(31.0	)		0.1			(30.9	)		—			(30.9	)
Portion of OTTI losses recognized in OCI		22.6			(1.4	)		21.2			—			21.2
Net OTTI losses recognized in earnings		(8.4	)		(1.3	)		(9.7	)		—			(9.7	)
Net realized investment gains (losses), excluding OTTI losses		14.5			(14.9	)		(0.4	)		—			(0.4	)
Net realized investment losses		6.1			(16.2	)		(10.1	)		—			(10.1	)
Gain on debt repurchase		—			—			—			—			—
Total revenues		472.1			(20.3	)		451.8			—			451.8
BENEFITS AND EXPENSES:
Policy benefits, excluding policyholder dividends		268.2			25.1			293.3			(0.2	)		293.1
Policyholder dividends		51.5			2.0			53.5			—			53.5
Policy acquisition cost amortization		57.5			(14.9	)		42.6			(7.5	)		35.1
Interest expense on indebtedness		7.9			—			7.9			—			7.9
Other operating expenses		57.2			(0.2	)		57.0			0.4			57.4
Total benefits and expenses		442.3			12.0			454.3			(7.3	)		447.0
Income (loss) from continuing operations before income taxes		29.8			(32.3	)		(2.5	)		7.3			4.8
Income tax benefit		(6.7	)		(1.2	)		(7.9	)		1.1			(6.8	)
Income (loss) from continuing operations		36.5			(31.1	)		5.4			6.2			11.6
Income (loss) from discontinued operations, net of income taxes		(4.7	)		0.8			(3.9	)		—			(3.9	)
Net income (loss)		31.8			(30.3	)		1.5			6.2			7.7
Less: Net income (loss) attributable to noncontrolling interests		—			(0.3	)		(0.3	)		—			(0.3	)
Net income (loss) attributable to The Phoenix Companies, Inc.	$	31.8		$	(30.0	)	$	1.8		$	6.2		$	8.0

(Continued from previous page)	Consolidated Statement of Comprehensive Income
($ in millions, except share data)	Three months September 30, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the retrospective adoption			Retrospective Adoption(2)			As restated and amended
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	31.8		$	(30.0	)	$	1.8		$	6.2		$	8.0
Less: Net income (loss) attributable to noncontrolling interests		—			(0.3	)		(0.3	)		—			(0.3	)
Net income (loss)		31.8			(30.3	)		1.5			6.2			7.7
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes(5)		(13.3	)		17.7			4.4			1.6			6.0
Non-credit portion of OTTI losses recognized in OCI before income taxes(5)		22.4			(43.6	)		(21.2	)		—			(21.2	)
Net pension liability adjustment before income taxes		1.1			(9.2	)		(8.1	)		—			(8.1	)
Net unrealized other gains (losses) before income taxes		—			—			—			—			—
Net unrealized derivative instruments gains (losses) before income taxes(5)		1.1			(1.1	)		—			—			—
Other comprehensive income (loss) before income taxes		11.3			(36.2	)		(24.9	)		1.6			(23.3	)
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses)		(42.2	)		20.8			(21.4	)		(1.2	)		(22.6	)
Non-credit portion of OTTI losses recognized in OCI(5)		7.8			(15.3	)		(7.5	)		—			(7.5	)
Net pension liability adjustment(5)		—			—			—			—			—
Net unrealized other gains (losses)		—			—			—			—			—
Net unrealized derivative instruments gains (losses)		—			—			—			—			—
Total income tax benefit		(34.4	)		5.5			(28.9	)		(1.2	)		(30.1	)
Other comprehensive income (loss), net of income taxes		45.7			(41.7	)		4.0			2.8			6.8
Comprehensive income (loss)		77.5			(72.0	)		5.5			9.0			14.5
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income taxes		—			(0.3	)		(0.3	)		—			(0.3	)
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.	$	77.5		$	(71.7	)	$	5.8		$	9.0		$	14.8

(Continued from previous page)	Consolidated Statement of Comprehensive Income
($ in millions, except share data)	Three months ended September 30, 2011
	As previously reported			Correction of errors (1)			Adjusted prior to the retrospective adoption	Retrospective Adoption(2)		As restated and amended
EARNINGS (LOSS) PER SHARE: (3)
Earnings (loss) from continuing operations – basic	$	6.25		$	(5.35	)		$	1.07	$	1.99
Earnings (loss) from continuing operations – diluted	$	6.23		$	(5.28	)		$	1.05	$	1.97
Earnings (loss) from discontinued operations – basic	$	(0.80	)	$	0.14			$	—	$	(0.67	)
Earnings (loss) from discontinued operations – diluted	$	(0.80	)	$	0.14			$	—	$	(0.66	)
Net earnings (loss) attributable to The Phoenix Companies, Inc. – basic	$	5.44		$	(5.16	)		$	1.07	$	1.38
Net earnings (loss) attributable to The Phoenix Companies, Inc. – diluted	$	5.43		$	(5.09	)		$	1.05	$	1.36
Basic weighted-average common shares outstanding (in thousands)		5,844			5,816	(4)			5,816		5,816
Diluted weighted-average common shares outstanding (in thousands)		5,856			5,890	(4)			5,890		5,890

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26). See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26).

(3)	All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012.
(4)	Weighted-average common shares outstanding have been updated to reflect the impact of an error which had no material impact to EPS information, basic or diluted, for any period presented.

(5)   In addition to adjustments described within this footnote the correction of errors column contains reclassifications related to changes in presentation of components of other comprehensive income.

	Consolidated Statement of Comprehensive Income
($ in millions, except share data)	Nine months ended September 30, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the retrospective adoption			Retrospective Adoption(2)			As restated and amended
REVENUES:
Premiums	$	337.7		$	(14.1	)	$	323.6		$	—		$	323.6
Fee income		456.0			(0.2	)		455.8			—			455.8
Net investment income		612.6			15.5			628.1			—			628.1
Net realized investment gains (losses):
Total OTTI losses		(45.0	)		0.4			(44.6	)		—			(44.6	)
Portion of OTTI losses recognized in OCI		27.9			(1.8	)		26.1			—			26.1
Net OTTI losses recognized in earnings		(17.1	)		(1.4	)		(18.5	)		—			(18.5	)
Net realized investment gains (losses), excluding OTTI losses		10.1			(9.6	)		0.5			—			0.5
Net realized investment losses		(7.0	)		(11.0	)		(18.0	)		—			(18.0	)
Gain on debt repurchase		—			—			—			—			—
Total revenues		1,399.3			(9.8	)		1,389.5			—			1,389.5
BENEFITS AND EXPENSES:
Policy benefits, excluding policyholder dividends		800.0			45.4			845.4			3.2			848.6
Policyholder dividends		188.8			10.2			199.0			—			199.0
Policy acquisition cost amortization		172.0			(15.6	)		156.4			(29.4	)		127.0
Interest expense on indebtedness		23.7			—			23.7			—			23.7
Other operating expenses		175.4			10.6			186.0			1.1			187.1
Total benefits and expenses		1,359.9			50.6			1,410.5			(25.1	)		1,385.4
Income (loss) from continuing operations before income taxes		39.4			(60.4	)		(21.0	)		25.1			4.1
Income tax expense (benefit)		2.4			(0.3	)		2.1			7.4			9.5
Income (loss) from continuing operations		37.0			(60.1	)		(23.1	)		17.7			(5.4	)
Income (loss) from discontinued operations, net of income taxes		(6.9	)		0.8			(6.1	)		—			(6.1	)
Net income (loss)		30.1			(59.3	)		(29.2	)		17.7			(11.5	)
Less: Net income (loss) attributable to noncontrolling interests		—			(0.4	)		(0.4	)		—			(0.4	)
Net income (loss) attributable to The Phoenix Companies, Inc.	$	30.1		$	(58.9	)	$	(28.8	)	$	17.7		$	(11.1	)

(Continued from previous page)	Consolidated Statement of Comprehensive Income
($ in millions, except share data)	Nine months ended September 30, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the retrospective adoption			Retrospective Adoption(2)			As restated and amended
COMPREHENSIVE INCOME (LOSS):
Net income (loss) attributable to The Phoenix Companies, Inc.	$	30.1		$	(58.9	)	$	(28.8	)	$	17.7		$	(11.1	)
Net income (loss) attributable to noncontrolling interests		—			(0.4	)		(0.4	)		—			(0.4	)
Net income (loss)		30.1		$	(59.3	)	$	(29.2	)	$	17.7		$	(11.5	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes(5)		19.9			36.0			55.9			4.4			60.3
Non-credit portion of OTTI losses recognized in OCI before income taxes(5)		23.4			(44.9	)		(21.5	)		—			(21.5	)
Net pension liability adjustment before income taxes		5.2			(7.4	)		(2.2	)		—			(2.2	)
Net unrealized other gains (losses) before income taxes		—			—			—			—			—
Net unrealized derivative instruments gains (losses) before income taxes(5)		(0.1	)		0.1			—			—			—
Other comprehensive income (loss) before income taxes		48.4			(16.2	)		32.2			4.4			36.6
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses)(5)		(13.4	)		29.6			16.2			(7.5	)		8.7
Non-credit portion of OTTI losses recognized in OCI(5)		8.2			(15.8	)		(7.6	)		—			(7.6	)
Net pension liability adjustment		—			—			—			—			—
Net unrealized other gains (losses)		—			—			—			—			—
Net unrealized derivative instruments gains (losses)		—			—			—			—			—
Total income tax expense (benefit)		(5.2	)		13.8			8.6			(7.5	)		1.1
Other comprehensive income net of income taxes		53.6			(30.0	)		23.6			11.9			35.5
Comprehensive income (loss)		83.7		$	(89.3	)	$	(5.6	)	$	29.6		$	24.0
Less: Comprehensive income attributable to noncontrolling interests, net of income taxes		—			(0.4	)		(0.4	)		—			(0.4	)
Comprehensive income (loss) attributable to The Phoenix Companies, Inc.	$	83.7		$	(88.9	)	$	(5.2	)	$	29.6		$	24.4

(Continued from previous page)	Consolidated Statement of Comprehensive Income
($ in millions, except share data)	Nine months ended September 30, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the retrospective adoption	Retrospective Adoption(2)		As restated and amended
EARNINGS (LOSS) PER SHARE: (3)
Earnings (loss) from continuing operations – basic	$	6.34		$	(10.34	)		$	3.04	$	(0.93	)
Earnings (loss) from continuing operations – diluted	$	6.33		$	(10.34	)		$	3.04	$	(0.93	)
Earnings (loss) from discontinued operations – basic	$	(1.18	)	$	0.14			$	—	$	(1.05	)
Earnings (loss) from discontinued operations –  diluted	$	(1.18	)	$	0.14			$	—	$	(1.05	)
Net earnings (loss) attributable to The Phoenix Companies, Inc. – basic	$	5.15		$	(10.13	)		$	3.04	$	(1.91	)
Net earnings (loss) attributable to The Phoenix Companies, Inc. – diluted	$	5.15		$	(10.13	)		$	3.04	$	(1.91	)
Basic weighted-average common shares outstanding (in thousands)		5,840			5,814	(4)			5,814		5,814
Diluted weighted-average common shares outstanding (in thousands)		5,849			5,814	(4)			5,814		5,814

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26). See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26).

(3)	All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012.
(4)	Weighted-average common shares outstanding have been updated to reflect the impact of an error which had no material impact to EPS information, basic or diluted, for any period presented.

(5)   In addition to adjustments described within this footnote the correction of errors column contains reclassifications related to changes in presentation of components of other comprehensive income.

	Consolidated Statement of Cash Flows
($ in millions)	For the period ended September 30, 2011
	As previously Reported(1)			Correction of errors(2)			Adjusted prior to the retrospective adoption			Retrospective Adoption(3)			As restated and amended
OPERATING ACTIVITIES:
Net income (loss)	$	30.1		$	(58.9	)	$	(28.8	)	$	17.7		$	(11.1	)
Net realized investment gains		7.0			11.0			18.0			—			18.0
Gain on debt repurchase		—			—			—			—			—
Policy acquisition costs deferred		(104.3	)		38.6			(65.7	)		1.1			(64.6	)
Amortization of deferred policy acquisition costs		172.0			(15.6	)		156.4			(29.4	)		127.0
Amortization and depreciation		9.1			—			9.1			—			9.1
Interest credited		—			89.4			89.4			—			89.4
Equity in earnings of limited partnerships and other investments		—			(48.2	)		(48.2	)		—			(48.2	)
Change in:
Accrued investment income		(66.9	)		(42.9	)		(109.8	)		—			(109.8	)
Deferred income taxes		1.3			(11.4	)		(10.1	)		7.4			(2.7	)
Receivables		(7.6	)		18.2			10.6			—			10.6
Policy liabilities and accruals		(175.9	)		(190.8	)		(366.7	)		3.2			(363.5	)
Dividend obligations		—			16.2			16.2			—			16.2
Impact of operating activities of consolidated investment entities, net		—			(2.7	)		(2.7	)		—			(2.7	)
Other operating activities, net		(10.4	)		(23.8	)		(34.2	)		—			(34.2	)
Cash from (for) continuing operations		(145.6	)		(220.9	)		(366.5	)		—			(366.5	)
Discontinued operations, net		6.2			(6.2	)		—			—			—
Cash used for operating activities		(139.4	)		(227.1	)		(366.5	)		—			(366.5	)
INVESTING ACTIVITIES:
Purchases of:
Available-for-sale debt securities		(5,017.7	)		2,763.8			(2,253.9	)		—			(2,253.9	)
Available-for-sale equity securities		—			(5.7	)		(5.7	)		—			(5.7	)
Derivative instruments		—			(32.9	)		(32.9	)		—			(32.9	)
Fair value investments		—			(35.0	)		(35.0	)		—			(35.0	)
Other investments		—			(1.1	)		(1.1	)		—			(1.1	)
Sales, repayments and maturities of:
Available-for-sale debt securities		4,540.3			(2,778.1	)		1,762.2			—			1,762.2
Available-for-sale equity securities		—			1.9			1.9			—			1.9
Derivative instruments		—			61.4			61.4			—			61.4
Fair value investments		—			10.9			10.9			—			10.9
Other investments		—			22.0			22.0			—			22.0
Contributions to limited partnerships and limited liability corporations		—			(67.1	)		(67.1	)		—			(67.1	)
Distributions from limited partnerships and limited liability corporations		—			78.7			78.7			—			78.7
Policy loans, net		34.1			67.7			101.8			—			101.8
Impact of investing activities of consolidated investment entities, net		—			—			—			—			—
Other investing activities, net		—			(4.6	)		(4.6	)		—			(4.6	)
Premises and equipment additions		(3.4	)		3.4			—			—			—
Discontinued operations, net		(4.9	)		4.9			—			—			—
Cash provided by (used for) investing activities		(451.6	)		90.2			(361.4	)		—			(361.4	)
($ in millions)	For the period ended September 30, 2011
	As previously reported			Correction of errors(2)			Adjusted prior to the retrospective adoption			Retrospective Adoption(3)			As restated and amended
FINANCING ACTIVITIES:
Policyholder deposit fund deposits		1,068.6			267.7			1,336.3			—			1,336.3
Policyholder deposit fund withdrawals		(450.7	)		(469.7	)		(920.4	)		—			(920.4	)
Net transfers to/from separate accounts		—			344.1			344.1			—			344.1
Impact of financing activities of consolidated investment entities, net		—			1.3			1.3			—			1.3
Cash provided by financing activities		617.9			143.4			761.3			—			761.3
Change in cash and cash equivalents		26.9			6.5			33.4			—			33.4
Change in cash included in discontinued operations assets		—			1.2			1.2			—			1.2
Cash and cash equivalents, beginning of period		121.9			(28.2	)		93.7			—			93.7
Cash and cash equivalents, end of period	$	148.8		$	(20.5	)	$	128.3		$	—		$	128.3
Supplemental Disclosure of Cash Flow Information
Income taxes paid	$	(6.2	)	$	—		$	(6.2	)	$	—		$	(6.2	)
Interest expense on indebtedness paid	$	(23.0	)	$	2.6		$	(20.4	)	$	—		$	(20.4	)
Non-Cash Transactions During the Year
Investment exchanges	$	—		$	54.5		$	54.5		$	—		$	54.5

———————

(1)	Operating activities of the consolidated statement of cash flows for the period ended September 30, 2011 was previously reported using the direct method. Reported numbers herein reflect adjustment to indirect method currently presented.
(2)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26). See footnote 3 for additional information regarding these amounts and the retrospective adoption.

(3)   Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26).

	Consolidated Statement of Changes in Stockholders’ Equity
($ in millions, except share data)	For the period ended September 30, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the retrospective adoption			Retrospective Adoption(2)			As restated and amended
COMMON STOCK:(3)
Balance, beginning of period	$	1.3		$	—		$	1.3		$	—		$	1.3
Adjustment for reverse stock split		—			—			—			—			—
Balance, end of period	$	1.3		$	—		$	1.3		$	—		$	1.3
ADDITIONAL PAID-IN CAPITAL:
Balance, beginning of period	$	2,631.0		$	—		$	2,631.0		$	—		$	2,631.0
Issuance of shares and compensation expense on stock compensation awards		1.8			—			1.8			—			1.8
Adjustment for reverse stock split		—			—			—			—			—
Balance, end of period	$	2,632.8		$	—		$	2,632.8		$	—		$	2,632.8
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
Balance, beginning of period	$	(133.8	)	$	(50.7	)	$	(184.5	)	$	28.3		$	(156.2	)
Adjustment for initial application of accounting changes		—			—			—			—			—
Other comprehensive income (loss)		53.6			(30.0	)		23.6			11.9			35.5
Balance, end of period	$	(80.2	)	$	(80.7	)	$	(160.9	)	$	40.2		$	(120.7	)
ACCUMULATED DEFICIT:
Balance, beginning of period	$	(1,163.5	)	$	(102.1	)	$	(1,265.6	)	$	(232.4	)	$	(1,498.0	)
Adjustment for initial application of accounting changes		—			—			—			—			—
Net income (loss)		30.1			(58.9	)		(28.8	)		17.7			(11.1	)
Balance, end of period	$	(1,133.4	)	$	(161.0	)	$	(1,294.4	)	$	(214.7	)	$	(1,509.1	)
TREASURY STOCK, AT COST: (3)
Balance, beginning of period	$	(179.5	)	$	—		$	(179.5	)	$	—		$	(179.5	)
Change in treasury stock		—			—			—			—			—
Balance, end of period	$	(179.5	)	$	—		$	(179.5	)	$	—		$	(179.5	)
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO THE PHOENIX COMPANIES, INC.:
Balance, beginning of period	$	1,155.5		$	(152.8	)	$	1,002.7		$	(204.1	)	$	798.6
Adjustment for initial application of accounting changes		—			—			—			—			—
Change in stockholders’ equity attributable to
The Phoenix Companies, Inc.		85.5			(88.9	)		(3.4	)		29.6			26.2
Stockholders’ equity, end of period	$	1,241.0		$	(241.7	)	$	999.3		$	(174.5	)	$	824.8
NONCONTROLLING INTERESTS:
Balance, beginning of period	$	—		$	1.8		$	1.8			—		$	1.8
Change in noncontrolling interests		—			0.8			0.8			—			0.8
Balance, end of period	$	—		$	2.6		$	2.6		$	—		$	2.6
TOTAL STOCKHOLDERS’ EQUITY:
Balance, beginning of period	$	1,155.5		$	(151.0	)	$	1,004.5		$	(204.1	)	$	800.4
Adjustment for initial application of accounting changes		—			—			—			—			—
Change in stockholders’ equity		85.5			(88.1	)		(2.6	)		29.6			27.0
Stockholders’ equity, end of period	$	1,241.0		$	(239.1	)	$	1,001.9		$	(174.5	)	$	827.4

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26). See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance (ASU 2010-26).

(3)   Reflects the 1-for-20 reverse stock split, which was effective August 10, 2012.