Hartford, Conn., June 1, 2011 – The Phoenix Companies announced today the introduction of the Phoenix Personal Income Annuity. This new offering is a single premium indexed annuity with six indexed accounts, a fixed account, principal protection from investment loss and an optional guaranteed lifetime withdrawal benefit (GLWB). The annuity also includes two GLWB rider options that allow an individual to either draw income immediately or begin at a future date. The new product will be distributed through Saybrus Partners, Phoenix’s distribution subsidiary.

“Over the last year, retirees and pre-retirees have continued to express their desire for tools that will provide a stream of retirement income and the flexibility to customize the product to meet their individual needs,” said Mark Fitzgerald, national sales manager for Saybrus Partners. “We believe the Phoenix Personal Income Annuity provides the added income customization customers want while offering the principal protection and potential for upside growth they expect from an indexed annuity.”

The Phoenix Personal Income Annuity features two unique rider options that allow for increased income customization:

• “Income Strategy: Today” – Designed for individuals looking for guaranteed income within three years of issuance, the Income Strategy: Today rider offers the flexibility to elect income immediately or, for greater income potential, delay withdrawals for up to two years. It credits the Benefit Base with a cumulative bonus of 30 percent at issue, 37½ percent after the first year and 45 percent after the second year.
• “Income Strategy: Tomorrow” – Provides future income predictability for individuals planning to delay income for three or more years. Furthermore, it credits the Benefit Base annually with 14 percent simple interest roll-ups during the first 10 years, provided that no withdrawals are taken in this period.

Phoenix Personal Income Annuity offers customers a choice of accounts including six indexed accounts with earnings based on a one year point-to-point crediting method and one indexed account with earnings based on a monthly point-to-point crediting method. Depending on the state in which it is purchased, either an indexed account with earnings based on a two year point-to-point crediting method or an indexed account with earnings based on a five year point-to-point credit method are also available. In addition, the Phoenix Personal Income Annuity offers a fixed account that credits interest daily at a specified rate guaranteed for one year.

The full premium for the Phoenix Personal Income Annuity is paid when the annuity is issued, with a minimum of $15,000 and a maximum of $1 million. If the individual makes an excess withdrawal or surrenders the contract during the surrender charge period, the withdrawal or surrender will be subject to a market value adjustment.

“Our industry continues to see demand for not only new, but innovative products, that meet the needs of today’s retiree,” said Fitzgerald. “We are committed to staying ahead of this ‘innovation curve’ and producing products that offer flexibility and stability to the customer.”

To learn more about Phoenix Personal Income Annuity and other annuity products available from Phoenix, agents and financial advisors can contact their Phoenix wholesaler, the Life and Annuity Sales Desk at 800-417-4769, or visit www.phoenixwm.com.

Background on indexed annuities

An indexed annuity allows individuals to benefit from growth in the market without the risk of direct investment in the market. It guarantees that principal will be protected because the account value increases as a result of positive index performance but never loses value due to market downturns. When the index shows a positive performance over the particular indexed account’s segment duration (either one-, two- or five-year), “index credits” that are based on that performance are added to the account value. Unlike direct investments, the account does not lose any value when the markets go down because the index credit can never be negative – keeping the account value intact.

The Guaranteed Lifetime Withdrawal Benefit Riders are options that may be added to the basic annuity in exchange for a fee that will be deducted from the annuity’s contract value. Each rider guarantees that once guaranteed withdrawals begin, they can continue for the life of the insured even if the annuity’s contract value is reduced to zero base on the insurer’s claims-paying ability. The rider fee in combination with 0 percent return from the indexed accounts over time could result in loss of principal invested but no reduction in guarantees. Each rider has a unique benefit base growth method and a separate age-based withdrawal rate that will determine the amount of the lifetime withdrawal guarantee. The benefit base is not a guarantee of contract value or an amount available for withdrawal and is only used to determine the fees and guarantees applicable to the rider.

The single premium and interest credited to the contract are allocated to a Separate Account. Under state law, the Separate Account assets are segregated from the General Account and consequently the Separate Account assets may not be used to pay liabilities arising out of other business Phoenix may conduct and are insulated from any creditors of the Phoenix Companies. Guarantees are based on the claims-paying ability of PHL Variable Insurance Company.

About Phoenix

Dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) provides financial solutions using life insurance and annuities. Phoenix offers a complete suite of annuity products with a full spectrum of optional guarantees. Phoenix annuity products are designed with maximum flexibility to help customers meet a range of retirement income needs. Saybrus Partners, Inc. and PHL Variable Insurance Company are subsidiaries. For more information, visit www.phoenixwm.com and www.saybruspartners.com.