Seneca Capital Management Completes Investment Of Proceeds from $1.6 Billion CDO

The Phoenix Companies, Inc. (NYSE: PNX) announced that its affiliate, Seneca Capital Management LLC (SCM), has completed investment of the proceeds of Broderick CDO 2 Ltd., a $1.6 billion collateralized debt obligation (CDO) offering that closed on September 1. The proceeds of the offering were invested in a diversified portfolio of highly rated residential mortgage-backed securities (RMBS) and other asset-backed securities (ABS). Merrill Lynch & Co. acted as initial purchaser with respect to the offering. Broderick CDO 2 Ltd. follows the $1 billion offering of Broderick CDO 1 Ltd., issued in December 2005. "The positive response to Broderick CDO 1 Ltd. indicated that there was a market for a CDO backed by highly rated RMBS and other ABS,” said Albert Gutierrez, chief investment officer at SCM. "We knew that we had a unique opportunity to expand on the experience of Broderick CDO 1 Ltd. and develop a much larger offering.” "The team at SCM has again proved their ability to develop, structure and manage a sizeable, and highly complex vehicle,” said George R. Aylward, senior vice president, The Phoenix Companies, and president and chief operating officer of its investment management subsidiary, Phoenix Investment Partners. "This offering reinforces SCM’s research-intensive approach to portfolio management, a methodology that benefits their individual and institutional investor clients.” With the new CDO, SCM has approximately $3.6 billion in structured product assets under management. The securities were issued in a private offering not registered under the United States Securities Act of 1933, as amended (the Securities Act) and sold only to (a) to qualified institutional buyers (within the meaning of Rule 144A under the Securities Act), or, in certain cases, accredited investors (within the meaning of Rule 501 under the Securities Act) that in either case are qualified purchasers or, in certain cases, knowledgeable employees with respect to the Co-Issuers (in each case, within the meaning of the U.S. Investment Company Act of 1940, as amended, and the rules thereunder) and (b) outside the United States to non-U.S. persons in offshore transactions in accordance with Regulation S under the Securities Act. Founded in 1989 and located in San Francisco, Seneca Capital Management LLC provides investment management services to foundations, endowments, corporations, public funds, multi-employer plans, private clients and high net worth individuals. SCM specializes in earnings-driven growth equity and non-traditional fixed income investment management and has approximately $11.5 billion of assets under management. Phoenix offers a diversified mix of investments from 17 respected money managers, with a specialized expertise in alternative investments in addition to core investment strategies. This emphasis on quality and choice gives individuals, businesses and institutions access to products that fit their financial goals. With roots dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) helps individuals and institutions solve their often highly complex personal financial and business planning needs through its broad array of life insurance, annuities and investments. The company’s products and services reflect deep insights into the wants and needs of consumers and financial professionals gleaned from research, including its Phoenix Wealth Survey, conducted annually since 1999. Phoenix has been recognized for its people-friendly programs by Working Mother magazine, the National Association of Female Executives and The Princeton Review. In 2005, Phoenix had annual revenues of $2.6 billion and total assets of $27.7 billion. For more information, visit www.phoenixwm.com. This news release is not an offer to sell, or a solicitation to buy, the securities referred to herein or any other investment, in the United States or any other jurisdiction. The securities referred to herein have not been and will not be registered under the Securities Act and no offer or sale of such securities may be made in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of Section 5 of the Securities Act and in accordance with the restrictions contained in the final offering circular with respect to such securities.