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.