-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JRKBKpf2XY7I8LKBGiTWGxdO9EIZI9hAhcZT0QEh//rchaqSnOclgl43Zr3DFAEb jsPeAW81PDAYRnQq5LA5Kg== 0001104659-08-059027.txt : 20080916 0001104659-08-059027.hdr.sgml : 20080916 20080916171025 ACCESSION NUMBER: 0001104659-08-059027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080916 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080916 DATE AS OF CHANGE: 20080916 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROTECTIVE LIFE INSURANCE CO CENTRAL INDEX KEY: 0000310826 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 630169720 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31901 FILM NUMBER: 081074675 BUSINESS ADDRESS: STREET 1: 2801 HIGHWAY 280 SOUTH CITY: BIRMINGHAM STATE: AL ZIP: 35223 BUSINESS PHONE: 2058799230 MAIL ADDRESS: STREET 1: PO BOX 2606 CITY: BIRMINGHAM STATE: AL ZIP: 35202 8-K 1 a08-23635_28k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

September 16, 2008
Date of Report (Date of earliest event reported)

 

Protective Life Insurance Company

(Exact name of registrant as specified in its charter)

 

Tennessee

 

001-31901

 

63-0169720

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 

Protective Life Insurance Company

2801 Highway 280 South

Birmingham, Alabama 35223

(Address of principal executive offices and zip code)

 

(205) 268-1000

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CF 240.14d-2(b))

 

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 8.01 Other Events

 

BIRMINGHAM, Alabama, (September 16, 2008) Protective Life Insurance Company today announced that its parent, Protective Life Corporation (NYSE:PL), confirmed its credit exposures relating to its investments in preferred stock issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), debt and preferred stock issued by Lehman Brothers Holdings, Inc. (Lehman), and debt and preferred stock issued by American International Group, Inc. (AIG).

 

For more information, see the attached press release including supplemental investment portfolio information, which can also be located at www.protective.com. The Registrant will determine the amount of any impairment charge as of September 30, 2008. Protective Life Corporation’s credit exposures for these securities includes the Registrant’s exposures, in addition to $0.3 million held by another direct subsidiary of Protective Life Corporation.

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits:

 

99.1 – Press Release Dated September 16, 2008

 

2



 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

PROTECTIVE LIFE INSURANCE COMPANY

 

/s/Steven G. Walker

 

Steven G. Walker

 

Senior Vice President, Controller
and Chief Accounting Officer

 

 

Dated: September 16, 2008

 

3


EX-99.1 2 a08-23635_2ex99d1.htm PRESS RELEASE DATED SEPTEMBER 16, 2008

Exhibit 99.1

 

 

Protective Life Corporation
Post Office Box 2606
Birmingham, AL 35202
205-268-1000

 

FOR IMMEDIATE RELEASE

 

PROTECTIVE CONFIRMS CREDIT EXPOSURES TO

FANNIE MAE, FREDDIE MAC, LEHMAN BROTHERS AND AIG

 

BIRMINGHAM, Alabama, (September 16, 2008) Protective Life Corporation (NYSE:PL) today confirmed its credit exposures relating to its investments in preferred stock issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), debt and preferred stock issued by Lehman Brothers Holdings, Inc., (Lehman) and debt and preferred stock issued by American International Group, Inc. (AIG).

 

In the event that there is no recovery with respect to such securities (an outcome that the Company believes is unlikely), the Company expects that the resulting charge would reduce the Company’s share-owners’ equity per share by approximately $2.12 as indicated in the attached table and at www.protective.com.  The Company’s share-owners’ equity per share excluding accumulated other comprehensive income (AOCI) at June 30, 2008 was $36.76.  AOCI was ($6.96) per share at June 30, 2008.  The Company will determine the amount of any impairment charge relating to these securities as of September 30, 2008.

 

Share-owners’ equity per share excluding AOCI is a non-GAAP financial measure. Share-owners’ equity per share is a GAAP financial measure to which share-owners’ equity per share excluding AOCI may be compared. Share-owners’ equity per share at June 30, 2008, which includes AOCI, was $29.80.

 

FORWARD-LOOKING STATEMENTS

 

This release includes “forward-looking statements” which express expectations of future events and/or results. All statements based on future expectations rather than on historical facts are forward-looking statements that involve a number of risks and uncertainties, and the Company cannot give assurance that such statements will prove to be correct. The factors which could affect the Company’s future results include, but are not limited to, general economic conditions and the following known trends and uncertainties: the Company’s investments, including, but not limited to, the Company’s invested assets, derivative financial instruments and commercial mortgage loan portfolio, are subject to market and credit risks; the Company is dependent on the performance of others, including, but not limited to, reinsurers; and, as with all financial services companies, its ability to conduct business is dependent upon consumer confidence in the industry and its products; the Company’s reinsurers could fail to meet assumed obligations, increase rates, or be subject to adverse developments that could affect the Company, and the Company’s ability to compete is dependent on the availability of reinsurance, which has become more costly and less available in recent years, or other substitute capital market solutions; the success of the Company’s captive reinsurance program and related marketing efforts is dependent on a number of factors outside the control of the Company, including, but not limited to, continued access to capital markets and the overall tax position of the Company; the Company’s ability to grow depends in large part upon the continued availability of capital which has

 



 

been negatively impacted by recent regulatory action and reserve increase related to certain discontinued lines of business and may be negatively impacted in the future by an increase in guaranteed minimum death benefit related policy liabilities resulting from negative performance in the equity markets, and future marketing plans are dependent on access to the capital markets through securitization; and new accounting or statutory rules or changes to existing accounting or statutory rules could negatively impact the Company; the Company’s risk management policies and procedures may leave it exposed to unidentified or unanticipated risk, which could negatively affect our business or result in losses; credit market volatility could cause market price and cash flow variability in the Company’s fixed income portfolio, resulting in defaults on principal or interest payments on those securities or adverse impact on the Company’s liquidity or ability to efficiently access the capital markets to issue long term debt or fund statutory reserves. Please refer to Exhibit 99 of the Company’s most recent Form 10-K/ 10-Q for more information about these and other factors which could affect future results.

 

CONTACTS:

Rich Bielen

Vice Chairman and Chief Financial Officer

(205) 268-3617

 

Eva Robertson

Vice President, Investor Relations

(205) 268-3912

 



 

Protective Life Corporation (“PLC”) - Supplemental Investment Portfolio Information

Fannie Mae, Freddie Mac, Lehman and AIG as of 9/15/08 - GAAP Amortized Cost as of 8/31/08

(Dollars in millions, except per share amounts)

(Unaudited)

 

 

 

Fannie Mae (2)

 

Freddie Mac (2)

 

Lehman (5)

 

AIG (3)

 

Senior Debt

 

n/a

 

n/a

 

$

44.3

 

$

94.0

 

Subordinated Debt

 

n/a

 

n/a

 

32.0

 

 

Junior Subordinated Debt

 

n/a

 

n/a

 

12.5

 

3.0

 

Preferred Stock

 

24.0

 

7.6

 

10.1

 

 

Other (Common Stock, GICs, CDS, Securities Lending)

 

 

 

 

 

PLC Total (1) (4)

 

$

24.0

 

$

7.6

 

$

98.9

 

$

97.0

 

 


(1) Excludes Modco Trading Portfolio Holdings of:

 

$

2.6

 

$

    

 

$

19.3

 

$

34.1

 

 

(The modco trading portfolio holdings support modified coinsurance arrangements and the investment results are passed directly to third-party reinsurers.)

 

(2) Excludes Debt of Fannie Mae and Freddie Mac since these securities are not believed to be at risk of default at this time.

 

(3) Includes $55.2 for American International Group, $39.5 for American General Finance, and $2.3 for International Lease Finance.

 

(4) In the event there is no recovery with respect to the securities (an outcome that the Company believes is unlikely), the Company expects that the resulting after-tax charge (assuming a 35% tax rate) would reduce share-owners’ equity per share by approximately $2.12.

 

(5) The total for Protective Life Insurance Company, on a stand-alone basis, is $98.6 million.

 


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