(Source: Business Wire)The Phoenix Companies, Inc. (NYSE: PNX) today announced that the board of directors of Phoenix Life Insurance Company voted to maintain the current policy dividend scale effective January 1, 2010 for policies in the closed block of business, as well as participating policies in the open block. Phoenix has maintained its closed block dividend scale in seven out of the nine years since its demutualization, and the cumulative adjustment over that period is consistent with adjustments to other companies' participating policies.

"We remain pleased with the performance of the closed block, particularly in a year that had more than its share of challenges across the entire economy," said James D. Wehr, president and chief executive officer.

In addition, Phoenix is improving some rates on two optional policy features, Optionterm and Dividend Accumulation, also effective on January 1, 2010.

Optionterm is one-year term insurance, which enhances the participating policy's death benefit, and may be paid for through dividends. Phoenix is reducing the term insurance rates on classes of policies that have had more favorable mortality experience and is maintaining current rates on all other policies.

The Dividend Accumulation feature allows policyholders to set aside dividend payments in a separate account that pays interest on the funds held. Phoenix is increasing the interest rate paid on these funds from 3 percent to 3.5 percent, reflecting investment performance of the dividend accumulation assets.

"The improvements to the Optionterm and Dividend Accumulation rates are another way we can pass benefits along to our policyholders," Mr. Wehr said.

Phoenix projects it will pay its closed block policyholders approximately $300 million in dividends in 2010.

The closed block was established to fund policy dividends and guaranteed benefits, such as death benefits, for dividend paying policies after Phoenix demutualized in June 2001. The board of directors reviews the dividend scale annually to ensure an adequate level of assets in the closed block and fair and equitable distribution of dividends.

Phoenix's open block, consisting of business written after the demutualization, contains a small number of participating policies. The dividend scale for these policies is managed separately from the closed block.

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.