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PHOENIX HOME LIFE ACHIEVES SOLID FINANCIAL RESULTS IN 1992, THE YEAR OF ITS MERGER

 HARTFORD, Conn., Feb. 22 /PRNewswire/ -- Phoenix Home Life Mutual Life Insurance Company increased its surplus by 7.4 percent to $650.3 million in 1992, John Gummere, chairman and chief executive officer, reported during the company's annual policyholders' meeting today.
 Phoenix Home Life achieved the increase in the same year that the company was fromed -- the product of the largest merger of U.S. mutual life insurance companies in the history of the industry.
 "The major objective of the merger is to produce a stronger, more efficient company that delivers superior products and services at lower cost," Mr. Gummere said, "a company with a broader distribution network and greater management depth. These attributes translate directly into advantages for our policyholders, the owners of the company."
 And, he said, the merger has already produced significant savings. "From the outset, the company had an objective of achieving $70 million in annual savings from the merger. It is well on its way to reaching that goal. Annual savings of $15 million were realized simply by consolidating three data processing centers into one."
 These and other savings, he continued, "will ultimately result in lower unit costs and produce higher dividends than could otherwise be paid," he continued.
 Among the other financial results of 1992:
 -- The company's ratio of surplus to assets -- adjusted to remove policy loans and separate account assets, which require no surplus -- was 8.19 percent, an increase from the combined 7.52 percent achieved by the two companies in 1991. This surplus to adjusted assets ratio is a key measure of an insurance company's financial strength.
 -- Assets under management grew $3 billion to a record $19.2 billion.
 -- The company's gain from operations after taxes and before dividends was $260 million, down from $328 million in 1991. This decrease can be attributed to a $34 million increase in federal taxes, the expenses of the merger and a somewhat higher mortality experience during the year.
 -- Dividends paid to policyholders totaled $242.4 million, which amounted to 93 percent of profit after taxes. The high level of these payments is "a strong indication of the real value a mutual company provides to its policyholders," Mr. Gummere said.
 -- Investment income decreased by $85.4 million to $659.9 million, "reflecting the low-interest-rate environment, the weak economy, particularly in real estate, and the company's ongoing exit from the Guaranteed Investment Contract business," the chairman explained.
 -- In the area of individual life insurance -- the company's primary business, total new annualized premium increased to $76.1 million. Variable universal life insurance annualized premium increased 170 percent to $11.1 million.
 Mr. Gummere told policyholders that the company's financial strength is increased by its expertise at investing in and operating a number of lines of business and subsidiaries. Profits from those businesses help support Phoenix Home Life's dividend scale.
 The Phoenix Home Life group operation produced $118 million in new premiums, up 29 percent over 1991. The Phoenix Home Life Group generated pre-tax profits of $32.8 million.
 Mr. Gummere reported that during 1992, the company's profitable Home Life Group operation was placed in a subsidiary, Home Life Financial Assurance Corporation (HLFAC). The company recently announced a tentative agreement to sell HLFAC to Community Mutual Insurance Company of Cincinnati, with closing expected during the first half of the year.
 The company's mutual fund operation continued its tremendous growth in 1992, with $2.5 billion in sales, more than double the 1991 figure. Total mutual fund assets reached $5.9 billion, and the operation contributed $22.8 million in pre-tax profits to the company.
 In the area of institutional investment management, the company received $437 million in new deposits, a 30 percent increase over 1991. The company's American Phoenix subsidiary saw revenues grow by 27 percent to $14.8 million. And Phoenix Home Life's reinsurance operations turned in a pre-tax profit of $11 million.
 Mr. Gummere reported several pieces of good news regarding investments. Mortgages 60 days delinquent decreased from 10 percent of the company's mortgage portfolio in 1991 to 8.1 percent in 1992. Foreclosed real estate totaled $121 million, down from the 1991 total of $135 million.
 The company also reduced the size of its mortgages portfolio, from $2.4 billion in 1991 to $2.2 billion at the end of 1992.
 During 1992, the company continued to invest virtually all new money in investment-grade bonds and, as a result, more than 42 percent of its investment portfolio is now composed of bonds.
 Phoenix Home Life is the 12th-largest mutual life insurance company in the United States. Through its offices and agents across the country, it offers a diverse portfolio of business and personal life insurance products, employee benefits, group pensions and individual investment products.
 -0- 2/22/93
 /CONTACT: Tom Gariepy, manager - communications of Phoenix Home Life, 203-275-5946, or home, 203-659-9566/


CO: Phoenix Home Life Mutual Life Insurance Company ST: Connecticut IN: INS SU:

GK-WB -- NY044 -- 8941 02/22/93 11:59 EST
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Date:Feb 22, 1993
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