-----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, Q0ma5U9zOmHjXnnBQhUuvckxXnT78u8tR9/OQmSzjzj2IddD3sJ7sZ/h+YnYjJhB rTJnNdPFVcWDGlDIArTqSQ== 0000355429-03-000227.txt : 20031030 0000355429-03-000227.hdr.sgml : 20031030 20031030081449 ACCESSION NUMBER: 0000355429-03-000227 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030930 ITEM INFORMATION: FILED AS OF DATE: 20031030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROTECTIVE LIFE CORP CENTRAL INDEX KEY: 0000355429 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 952492236 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12332 FILM NUMBER: 03965126 BUSINESS ADDRESS: STREET 1: 2801 HGWY 280 S 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 f8kernrlse.htm PROTECTIVE LIFE CORPORATION 8-K

___________________________________________________________________

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

  Date of Report  (Date of earliest event reported)       October 30, 2003


PROTECTIVE LIFE CORPORATION

(Exact name of registrant as specified in its charter)


Delaware 1-12332 95-2492236
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)

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.)


___________________________________________________________________









Item 12. Results of Operations and Financial Condition.

        On October 30, 2003, Registrant issued a press release and made available supplemental financial information with respect to its financial results for the quarter ended September 30, 2003. This information is included as Exhibit 99.1 and 99.2 to this Current Report and incorporated by reference herein.

        In accordance with General Instruction B.2 of Form 8-K, the information included or incorporated in this report, including Exhibits 99.1 and 99.2 shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, nor shall such information and exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be set forth by specific reference in such a filing.





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 CORPORATION
BY/s/Steven G. Walker
Steven G. Walker
Vice President and Controller

Dated:   October 30, 2003









Exhibit Index


Exhibit Number Description Page Number
99.1 Press Release Dated October 30, 2003
99.2 Supplemental Financial Information Dated October 30, 2003









EX-99 3 f8kex99093003.htm PRESS RELEASE Exhibit 99

Exhibit 99.1

PROTECTIVE ANNOUNCES THIRD QUARTER
2003 EARNINGS

BIRMINGHAM, Alabama (October 30, 2003) Protective Life Corporation (NYSE: PL) today reported results for the third quarter of 2003. Highlights for the quarter include:

o Net income for the quarter was $52.4 million, or $.74 per diluted share, as compared to $51.0 million, or $.73 per diluted share for the same period last year. Net income in the third quarter of 2002 included $.07 per share arising from the recovery of overpayments of reinsurance premiums on a block of universal life insurance policies. Net income in the current quarter included $.04 of net realized investment gains.

o Operating income for the quarter was $.70 per diluted share compared to $.72 per share in the third quarter of 2002. Operating income differs from the GAAP measure, net income, in that it excludes realized investment gains and losses and related amortization. The tables below reconcile operating income to net income for the Company and its business segments.

o Life insurance pretax operating income, which includes operating income from the Life Marketing and Acquisitions segments, was $64.3 million for the quarter. Third quarter 2002 life insurance pretax operating income was $65.6 million, including $7.2 million related to the recovery of the reinsurance overpayments. Third quarter life insurance sales were $77.7 million, an increase of 46.7% over the prior year’s third quarter. For the second consecutive quarter, the Company’s life marketing operations set a sales record for the highest level of life insurance sales in the Company’s history.

o The Asset Protection Division reported pretax operating income of $4.0 million for the quarter compared to a loss of $2.1 million in the prior year quarter. Core continuing operations contributed $5.5 million of earnings, compared to $3.8 million in earnings in the second quarter of 2003. The segment’s ancillary runoff lines of business reported a loss of $1.5 million, compared to a loss of $2.1 million in the prior quarter (excluding a reserve strengthening charge of $25.4 million).

  The Company also announced that it has entered into an agreement with Life of the South Corporation (“LOTS”) under the terms of which LOTS will assume the administration and marketing responsibilities for the Asset Protection Division’s financial institutions credit insurance business that is based in Raleigh, North Carolina. The Company anticipates that the transfer of both the administration and marketing responsibilities will be completed by year-end 2003.

o At September 30, 2003, the Company’s assets totaled $23.3 billion, compared to $21.4 billion at September 30, 2002, an increase of 8.9%.

o At September 30, 2003, share-owners’ equity per share was $23.31 (excluding $5.22 per share of accumulated other comprehensive income, primarily unrealized gains on investments), an increase of 9.4% over share-owners’ equity per share at September 30, 2002. At September 30, 2003, total share-owners’ equity per share was $28.53 as compared to $25.09 at September 30, 2002, an increase of 13.7%.

o Protective experienced no significant credit defaults in its investment portfolio during the quarter. At September 30, 2003, below investment grade securities were approximately six percent of invested assets, and problem mortgage loans and foreclosed properties remained less than one percent of invested assets.

John D. Johns, Protective’s President and Chief Executive Officer, stated:

“We are pleased to report very solid results in the third quarter. Notwithstanding price increases and changes in underwriting requirements in some of our life insurance product lines, life insurances sales continued at record levels in the quarter. Our Stable Value segment performed well in what continues to be a volatile and challenging interest rate environment. Sales of fixed annuities continue to be negatively affected by the current interest rate environment, and we are making every effort to manage costs in that operation. We continue to see encouraging signs in the core, continuing lines of business in our Asset Protection Division. In addition, we are pleased to announce an agreement with Life of the South which will enable us substantially to exit the financial institutions credit insurance business. This transaction is part of an ongoing process to evaluate strategic alternatives for certain under-performing product lines in the Asset Protection Division, and we expect that the transaction will have a positive effect on operating results beginning in early 2004. Overall, we believe the Company is well positioned for a solid finish to the year.”

Information Relating to Non-GAAP and Other Disclosures in This Press Release

All per share results are presented on a diluted basis.

Throughout this press release, GAAP refers to accounting principles generally accepted in the United States of America. Consolidated and segment operating income excludes net realized investment gains (losses) and the related amortization of deferred policy acquisition costs and gains (losses) on derivative instruments because fluctuations in these items are due to changes in interest rates and other financial market factors instead of mortality and morbidity. Management believes that consolidated and segment operating income (loss) enhances an investor’s and the Company’s understanding of the Company’s results of operations by highlighting the income (loss) attributable to the normal, recurring operations of the Company’s business.

As prescribed by generally accepted accounting principles, certain investments are recorded at their market values with the resulting unrealized gains (losses) affected by a related adjustment to deferred policy acquisition costs, net of income tax, reported as a component of share-owners’ equity. The market values of fixed maturities increase or decrease as interest rates rise or fall. The Company believes that an insurance company’s share-owners’ equity per share may be difficult to analyze without disclosing the effects of recording accumulated other comprehensive income, including unrealized gains (losses) on investments.

The sales statistics given in this press release are used by the Company to measure the relative progress of its marketing efforts. These statistics were derived from the Company’s various sales tracking and administrative systems and were not derived from the Company’s financial reporting systems or financial statements. These statistics attempt to measure only one of many factors that may affect future business segment profitability, and therefore are not intended to be predictive of future profitability.

THIRD QUARTER CONSOLIDATED RESULTS

($ in thousands; net of income tax) 
                                                                            3Q2003             3Q2002
                                                                            ------             ------

              Operating income                                             $49,132            $50,481
              Realized investment gains (losses)
                and related amortization                                     3,277                494
                                                                            ------             ------
              Net income                                                   $52,409            $50,975
                                                                           =======            =======
($ per share; net of income tax) 
                                                                            3Q2003             3Q2002
                                                                            ------             ------

              Operating income                                                $.70               $.72
              Realized investment gains (losses) and
                related amortization
                Investments                                                    .17                .01
                Derivatives                                                   (.13)               .00
                                                                            ------             ------
              Net income                                                      $.74               $.73
                                                                           =======            =======

BUSINESS SEGMENT OPERATING INCOME (LOSS) BEFORE INCOME TAX

The table below sets forth business segment operating income (loss) before income tax for the periods shown:

OPERATING INCOME (LOSS) BEFORE INCOME TAX

($ in thousands) 
                                                                            3Q2003             3Q2002
                                                                           -------            -------

              LIFE MARKETING                                               $39,501            $40,458
              ACQUISITIONS                                                  24,831             25,118
              ANNUITIES                                                      2,633              2,683
              STABLE VALUE CONTRACTS                                         9,523             11,423
              ASSET PROTECTION                                               4,015             (2,112)
              CORPORATE AND OTHER                                           (6,752)              (694)
                                                                           -------            -------
                                                                           $73,751            $76,876
                                                                           =======            =======

In the Life Marketing, Asset Protection, and Corporate and Other segments pretax operating income equals segment income before income tax for all periods. In the Annuities and Stable Value Contracts segments, operating income excludes realized investment gains and losses and related amortization as set forth in the table below. Income before income tax for the Annuities segment equaled $3.0 million for the third quarter of 2003 and $2.7 million for the third quarter of 2002. Income before income tax for the Stable Value segment equaled $19.3 million for the third quarter of 2003 and $5.1 million for the third quarter of 2002. All other realized investment gains and losses are not allocated to a business segment. 

($ in thousands)                                                            3Q2003             3Q2002
                                                                           -------            -------

              Operating income before income tax                           $73,751            $76,876
              Realized investment gains (losses)
                and related amortization
                  Annuities                                                    415                 (2)
                  Stable Value Contracts                                     9,745             (6,366)
                  Unallocated                                               (5,119)             7,128
                                                                           -------            -------
              Income before income tax                                     $78,792            $77,636
                                                                           =======            =======

SALES

The table below sets forth business segment sales for the periods shown:

($ in millions) 
                                                                            3Q2003             3Q2002
                                                                            ------             ------

              LIFE INSURANCE                                              $ 77.7              $ 53.0
              ANNUITIES                                                    103.4               204.8
              STABLE VALUE CONTRACTS                                       125.0                92.0
              ASSET PROTECTION                                             135.4               137.8

BUSINESS SEGMENT HIGHLIGHTS

LIFE MARKETING: Third quarter pretax operating income for the Life Marketing segment decreased 2.4% compared to the third quarter of 2002. The prior year quarter’s earnings included $7.2 million related to the recovery of previously disclosed overpayment of certain reinsurance premiums. Excluding this amount, pretax operating income increased year over year by 18.6%. This increase is primarily attributable to growth in business-in-force due to strong sales in prior periods and lower expense variances. Total life insurance sales were $77.7 million in the quarter, compared to sales of $53.0 million during the third quarter of 2002, an increase of 46.7%. Mortality experience during the quarter was $0.1 million worse than pricing, $5.8 million less favorable than in the prior year quarter.

ACQUISITIONS: Pretax operating income in the quarter was $24.8 million compared to $25.1 million in the third quarter of 2002. Mortality experience during the quarter was approximately equal to pricing, $0.9 million less favorable than the prior year quarter.

ANNUITIES: Pretax operating income in the Annuities segment was $2.6 million in the third quarter of 2003, compared to $2.7 million in the third quarter of 2002.

Total annuity sales in the third quarter were $103.4 million, compared to $204.8 million in the same period last year. Fixed annuity sales decreased from $107.9 million in the third quarter of 2002 to $15.9 million reflecting the Company’s continued focus on earning adequate returns in a challenging interest rate environment. The Company’s variable annuity sales decreased 9.7% over the prior year quarter.

STABLE VALUE CONTRACTS: Pretax operating income decreased from $10.1 million in the second quarter of 2003 to $9.5 million in the third quarter due to spreads narrowing from 101 basis points to 95 basis points as a result of prepayments in the Company’s mortgage backed securities portfolio.

ASSET PROTECTION: The Asset Protection segment reported pretax operating income of $4.0 million in the third quarter of 2003 compared to a loss of $2.1 million in the third quarter of 2002. Core operations contributed $5.5 million to earnings in the third quarter of 2003, compared to $3.8 million in the second quarter of 2003. Non-core and ancillary lines experienced a loss for the quarter of $1.5 million, compared to a loss of $5.5 million in the third quarter of 2002.

CORPORATE AND OTHER: This segment consists primarily of net investment income on capital, interest expense on all debt, and various other items not associated with the other segments. The segment reported a loss of $6.8 million in the third quarter compared to a loss of $0.7 million in the third quarter of 2002. The decrease is a result of a decline in participating mortgage income, lower investment income on unallocated capital, and an increase in corporate interest expense.

CONFERENCE CALL

There will be a conference call for management to discuss the quarter’s results with analysts and professional investors on Thursday, October 30 at 10:00 a.m. Eastern. Analysts and professional investors may participate in this call by calling 1-800-299-9086 (international callers 1-617-786-2903) shortly before that time. A recording of the call will be available from 12:00 p.m. Eastern October 30 until midnight November 6. The recording may be accessed by calling 1-888-286-8010 (international callers 1-617-801-6888) and giving the code number 27741323.

The public may listen to a simultaneous webcast of the call on the Company’s web site at www.protective.com. A recording of the webcast will also be available until midnight November 6, 2003.

Supplemental financial information will be available at release time through the Company’s web site at www.protective.com.

FORWARD-LOOKING STATEMENTS

This release and the supplemental financial information provided 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 trends and uncertainties: we are exposed to the risks of natural disasters, malicious and terrorist acts that could adversely affect our operations; we operate in a mature, highly competitive industry, which could limit our ability to gain or maintain our position in the industry; a ratings downgrade could adversely affect our ability to compete; our policy claims fluctuate from period to period, and actual results could differ from our expectations; our results could be negatively affected should actual experience differ from management’s assumptions and estimates; the use of reinsurance introduces variability in our statements of income; we could be forced to sell investments at a loss to cover policyholder withdrawals; interest rate fluctuations could negatively affect our spread income or otherwise impact our business; equity market volatility could negatively impact our business; a deficiency in our systems could result in over- or underpayments of amounts owed to or by us and/or errors in our critical assumptions or reported financial results; insurance companies are highly regulated; changes to tax law or interpretations of existing tax law could adversely affect the Company and its ability to compete with non-insurance products or reduce the demand for certain insurance products; financial services companies are frequently the targets of litigation, including class action litigation, which could result in substantial judgments; our ability to maintain low unit costs is dependent upon the level of new sales and persistency of existing business; our investments are subject to market and credit risks; we may not realize our anticipated financial results from our acquisitions strategy; we are dependent on the performance of others; our reinsurers could fail to meet assumed obligations, increase rates or be subject to adverse developments that could affect us; computer viruses could affect our data processing systems or our business partners. Please refer to Exhibit 99 of the Company’s most recent Form 10-K/10-Q for more information about these factors which could affect future results.

CONTACTS:

Allen Ritchie
Executive Vice President and Chief Financial Officer
(205) 268-3500

Sheri Cook
Vice President, Corporate Finance/Investor Relations
(205) 268-3773

EX-99 4 f8kex992093003.htm SUPPLEMENTAL FINANCIAL INFORMATION Exhibit 99

Exhibit 99.2

SUPPLEMENTAL FINANCIAL INFORMATION

The following document contains supplemental quarterly statistical financial information for the quarter ended September 30, 2003. This document is dated October 30, 2003. Protective does not undertake a duty to update such information after such date.

All per share results are presented on a diluted basis.

Throughout this document, GAAP refers to accounting principles generally accepted in the United States of America. Consolidated and segment operating income excludes net realized investment gains (losses) and the related amortization of deferred policy acquisition costs and gains (losses) on derivative instruments because fluctuations in these items are due to changes in interest rates and other financial market factors instead of mortality and morbidity. Management believes that consolidated and segment operating income (loss) enhances an investor's and the Company’s understanding of the Company’s results of operations by highlighting the income (loss) attributable to the normal, recurring operations of the Company’s business.

As prescribed by generally accepted accounting principles, certain investments are recorded at their market values with the resulting unrealized gains (losses) reduced by a related adjustment to deferred policy acquisition costs, net of income tax, reported as a component of share-owners’ equity. The market values of fixed maturities increase or decrease as interest rates rise or fall. The Company believes that an insurance company’s share-owners’ equity may be difficult to analyze without disclosing the effects of recording accumulated other comprehensive income, including unrealized gains (losses) on investments.

The sales statistics given in this document are used by the Company to measure the relative progress of its marketing efforts. These statistics and certain other information reported herein were derived from the Company’s various sales tracking and administrative systems and were not derived from the Company’s financial reporting systems or financial statements. These statistics attempt to measure only one of many factors that may affect future business segment profitability, and therefore are not intended to be predictive of future profitability. Certain reclassifications have been made in the previously reported financial information to make the prior period amounts comparable to those of the current period. Such reclassifications had no effect on previously reported net income, total assets, or share-owners’ equity. 


- -----------------------------------------------------------------------------------------
PROTECTIVE LIFE CORPORATION                                                                                                                                                                       Draft
Quarterly Financial Highlights                                                                                                                                                                  10/28/2003
(Dollars in Thousands)                                                                                                                                                                            Page 1
(Unaudited)
- -----------------------------------------------------------------------------------------

                                                                                         -------------------------------------------------------------------------------      -------------------------------
                                                                                                 3RD QTR        4TH QTR         1ST QTR         2ND QTR         3RD QTR                 9 MOS          9 MOS
                                                                                                    2002           2002            2003            2003            2003                  2002           2003
                                                                                         -------------------------------------------------------------------------------      -------------------------------
- -----------------------------------------------------------------------------------------
Pretax Operating Income *
- -----------------------------------------------------------------------------------------



   Life Marketing                                                                                $40,458        $36,725         $30,635         $46,116         $39,501               $88,825       $116,252
   Acquisitions                                                                                   25,118         26,441          22,772          24,281          24,831                68,656         71,884
   Annuities                                                                                       2,683          3,034           3,715           2,991           2,633                12,660          9,339
   Stable Value Contracts                                                                         11,423         11,334           9,138          10,098           9,523                30,938         28,759
   Asset Protection                                                                               (2,112)       (31,995)            858         (16,913)          4,015                 8,617        (12,040)
   Corporate & Other                                                                                (694)         3,592           1,344           4,113          (6,752)                2,051         (1,295)
                                                                                         -------------------------------------------------------------------------------      -------------------------------
Total Pretax Operating Income                                                                    $76,876        $49,131         $68,462         $70,686         $73,751              $211,747       $212,899



- -----------------------------------------------------------------------------------------
Balance Sheet Data
- -----------------------------------------------------------------------------------------

  Total GAAP Assets                                                                          $21,369,140    $21,904,581     $22,748,452     $23,287,560     $23,295,984
  Share Owners' Equity                                                                        $1,723,168     $1,720,702      $1,810,480      $2,026,445      $1,965,756
  Share Owners' Equity (excluding accumulated other comprehensive income)                     $1,462,608     $1,484,788      $1,513,566      $1,564,910      $1,606,569



- -----------------------------------------------------------------------------------------
Stock Data
- -----------------------------------------------------------------------------------------

  Closing Price                                                                                  $ 30.77        $ 27.52         $ 28.55         $ 26.75         $ 29.85               $ 30.77        $ 29.85
  Average Shares Outstanding
     Basic                                                                                    69,948,982     69,959,056      69,956,505      70,004,109      70,091,080            69,912,126     70,017,724
     Diluted                                                                                  70,491,409     70,488,160      70,483,448      70,561,795      70,722,885            70,454,250     70,590,253


* "Pretax Operating Income" is a non-GAAP financial measure.  "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating Income" may be compared.
See Page 4 for a reconciliation of "Pretax Operating Income" to "Income Before Income Tax".



- --------------------------------------------------------------------------------------
PROTECTIVE LIFE CORPORATION                                                                                                                                                                     Draft
GAAP Consolidated Statements Of Income                                                                                                                                                        10/29/2003
(Dollars in thousands)                                                                                                                                                                          Page 2
(Unaudited)
- --------------------------------------------------------------------------------------
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
                                                                                              3RD QTR          4TH QTR          1ST QTR         2ND QTR          3RD QTR              9 MOS          9 MOS
                                                                                                 2002             2002             2003            2003             2003               2002           2003
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
REVENUES
  Gross Premiums and Policy Fees                                                            $ 392,131        $ 415,172        $ 382,256       $ 392,082        $ 434,998         $1,146,545     $1,209,336
  Reinsurance Ceded                                                                          (121,744)        (252,657)        (184,854)       (199,905)        (247,922)          (498,739)      (632,681)
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
  Net Premiums and Policy Fees                                                                270,387          162,515          197,402         192,177          187,076            647,806        576,655
  Net investment income                                                                       263,066          271,443          260,560         265,217          251,539            759,761        777,316
  RIGL - Derivatives                                                                             (981)          (4,209)         (10,514)         (1,551)         (13,834)             9,445        (25,899)
  RIGL - All Other Investments                                                                  2,106             (985)          (1,178)         29,524           27,042              1,895         55,388
  Other income                                                                                 23,927           21,432           25,309          39,981           26,128             78,764         91,418
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
    Total Revenues                                                                            558,505          450,196          471,579         525,348          477,951          1,497,671      1,474,878
                                                                                      -----------------------------------------------------------------------------------    ------------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                            305,952          293,601          296,998         304,726          282,175            873,484        883,899
  Amortization of deferred policy acquisition costs                                           112,021           53,495           55,759          64,803           56,241            214,167        176,803
  Amortization of goodwill                                                                          -                -                -               -                -                  -              -
  Other operating expenses                                                                     56,191           52,355           55,297          58,697           51,872            169,885        165,866
  Interest on indebtedness                                                                      6,705            7,105            7,486           7,830            8,871             18,732         24,187
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
    Total Benefits and Expenses                                                               480,869          406,556          415,540         436,056          399,159          1,276,268      1,250,755
                                                                                      -----------------------------------------------------------------------------------    ------------------------------

INCOME BEFORE INCOME TAX                                                                       77,636           43,640           56,039          89,292           78,792            221,403        224,123
  Income tax expense                                                                           26,661           13,296           18,334          29,916           26,383             74,392         74,633
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
NET INCOME                                                                                   $ 50,975         $ 30,344         $ 37,705        $ 59,376         $ 52,409          $ 147,011      $ 149,490
                                                                                      ===================================================================================    ==============================

PER SHARE DATA FOR QUARTER
  Operating income-diluted *                                                                   $ 0.72           $ 0.48           $ 0.65          $ 0.67           $ 0.70
  RIGL - Derivatives                                                                                -            (0.04)           (0.10)          (0.01)           (0.13)
  RIGL - All Other Investments                                                                   0.01            (0.01)           (0.02)           0.19             0.17
                                                                                      -----------------------------------------------------------------------------------
  Net income-diluted                                                                           $ 0.73           $ 0.43           $ 0.53          $ 0.85           $ 0.74
  Average shares outstanding-diluted                                                       70,491,409       70,488,160       70,483,448      70,561,795       70,722,885
  Dividends paid                                                                               $ 0.15           $ 0.15           $ 0.15          $ 0.16           $ 0.16
PER SHARE DATA FOR YTD
  Operating income-diluted *                                                                   $ 2.00           $ 2.48           $ 0.65          $ 1.32           $ 2.02             $ 2.00         $ 2.02
  RIGL - Derivatives                                                                             0.09             0.05            (0.10)          (0.11)           (0.24)              0.09          (0.24)
  RIGL - All Other Investments                                                                      -            (0.01)           (0.02)           0.17             0.34                  -           0.34
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
  Net income-diluted                                                                           $ 2.09           $ 2.52           $ 0.53          $ 1.38           $ 2.12             $ 2.09         $ 2.12
  Average shares outstanding-diluted                                                       70,454,250       70,462,797       70,483,448      70,522,838       70,590,253         70,454,250     70,590,253
  Dividends paid                                                                               $ 0.44           $ 0.59           $ 0.15          $ 0.31           $ 0.47             $ 0.44         $ 0.47



* "Operating Income" is a non-GAAP financial measure.  "Net Income" is a GAAP financial measure to which "Operating Income" may be compared.


- --------------------------------------------------------------------------------------
PROTECTIVE LIFE CORPORATION                                                                                                                                  Draft
GAAP Consolidated Balance Sheets                                                                                                                           10/29/2003
(Dollars in thousands)                                                                                                                                       Page 3
(Unaudited)
- --------------------------------------------------------------------------------------

                                                                                      -----------------------------------------------------------------------------------
                                                                                              3RD QTR          4TH QTR          1ST QTR         2ND QTR          3RD QTR
                                                                                                 2002             2002             2003            2003             2003
                                                                                      -----------------------------------------------------------------------------------
ASSETS
Fixed maturities                                                                          $11,451,339      $11,664,065      $12,146,120     $12,504,655      $12,452,180
Equity securities                                                                              70,326           64,523           55,416          56,248           52,460
Mortgage loans                                                                              2,591,417        2,518,152        2,483,630       2,543,013        2,678,360
Investment real estate                                                                         20,536           20,711           19,485          16,930           16,781
Policy loans                                                                                  546,302          543,161          536,085         532,981          523,869
Other long-term investments                                                                   176,443          222,490          227,554         258,897          246,177
                                                                                      -----------------------------------------------------------------------------------
Long-term investments                                                                      14,856,363       15,033,102       15,468,290      15,912,724       15,969,827
Short-term investments                                                                        455,494          448,399          912,999         804,923          582,830
                                                                                      -----------------------------------------------------------------------------------
     Total investments                                                                     15,311,857       15,481,501       16,381,289      16,717,647       16,552,657
Cash                                                                                           78,353          101,953           55,830          91,093          105,019
Accrued investment income                                                                     190,908          181,966          196,107         185,300          194,115
Accounts and premiums receivable                                                               74,207           61,425           63,186          63,464           55,879
Reinsurance receivable                                                                      2,280,223        2,368,068        2,402,371       2,270,817        2,299,140
Deferred policy acquisition costs                                                           1,644,367        1,678,723        1,703,410       1,727,076        1,815,071
Goodwill                                                                                       47,312           47,312           47,312          47,312           47,312
Property and equipment, net                                                                    41,615           41,324           44,279          46,392           45,663
Other assets                                                                                  183,273          309,791          282,602         278,554          214,499
Assets Related to Separate Accounts
  Variable Annuity                                                                          1,412,028        1,513,824        1,452,098       1,718,478        1,813,738
  Variable Universal Life                                                                     100,781          114,364          115,591         137,027          148,511
  Other                                                                                         4,216            4,330            4,377           4,400            4,380
                                                                                      -----------------------------------------------------------------------------------
     TOTAL ASSETS                                                                         $21,369,140      $21,904,581      $22,748,452     $23,287,560      $23,295,984
                                                                                      ===================================================================================


LIABILITIES AND SHARE-OWNERS' EQUITY

LIABILITIES
Policy liabilities and accruals
  Future policy benefits and claims                                                        $8,032,378       $8,219,652       $8,416,509      $8,626,989       $8,752,643
  Unearned premiums                                                                           790,360          875,956          848,457         782,440          786,396
Stable value product deposits                                                               3,860,241        4,018,552        4,106,685       4,214,470        4,135,212
Annuity deposits                                                                            3,680,025        3,697,495        3,714,368       3,636,423        3,538,368
Other policyholders' funds                                                                    134,771          174,140          172,849         164,840          160,946
Securities sold under repurchase agreements                                                    42,000                -                -               -          111,725
Other liabilities                                                                             648,697          697,578        1,175,568         969,069          901,997
Accrued income taxes                                                                           23,219            3,186           24,911         (19,843)         (43,155)
Deferred income taxes                                                                         250,023          242,593          264,342         374,306          362,991
Debt                                                                                          376,137          406,110          426,103         436,394          440,344
Trust Originated Preferred Securities                                                         290,000          215,000          215,000         215,000          215,000
                                                                                      -----------------------------------------------------------------------------------
   Total guaranteed preferred beneficial interests                                            290,000          215,000          215,000         215,000          215,000
                                                                                      -----------------------------------------------------------------------------------
Minority interest - subsidiaries                                                                1,096            1,099            1,114           1,122            1,131
Liabilities related to separate accounts
  Variable annuity                                                                          1,412,028        1,513,824        1,452,098       1,718,478        1,813,738
  Variable universal life                                                                     100,781          114,364          115,591         137,027          148,511
  Other                                                                                         4,216            4,330            4,377           4,400            4,380
                                                                                      -----------------------------------------------------------------------------------
     TOTAL LIABILITIES                                                                    $19,645,972      $20,183,879      $20,937,972     $21,261,115      $21,330,227
                                                                                      -----------------------------------------------------------------------------------


- --------------------------------------------------------------------------------------
SHARE-OWNERS' EQUITY
- --------------------------------------------------------------------------------------
Preferred stock                                                                                     -                -                -               -                -
Common stock                                                                                   36,626           36,626           36,626          36,626           36,626
Additional paid-in capital                                                                    406,000          408,397          409,007         412,282          412,368
Treasury stock                                                                                (16,402)         (16,402)         (15,631)        (15,578)         (15,558)
Stock Held in Trust                                                                            (2,157)          (2,417)          (2,812)         (3,149)          (2,979)
Unallocated ESOP shares                                                                        (2,777)          (2,777)          (2,367)         (2,367)          (2,367)
Retained earnings                                                                           1,041,318        1,061,361        1,088,743       1,137,096        1,178,479
Accumulated other comprehensive income                                                        260,560          235,914          296,914         461,535          359,187
                                                                                      -----------------------------------------------------------------------------------
       Total Share-owners' Equity                                                           1,723,168        1,720,702        1,810,480       2,026,445        1,965,756
                                                                                      -----------------------------------------------------------------------------------
       TOTAL LIABILITIES AND EQUITY                                                       $21,369,140      $21,904,581      $22,748,452     $23,287,560      $23,295,983
                                                                                      ===================================================================================

SHARE-OWNERS' EQUITY PER SHARE
Total Share-owners' Equity                                                                    $ 25.09          $ 25.06          $ 26.28         $ 29.41          $ 28.53
Excluding accumulated other comprehensive income                                              $ 21.30          $ 21.62          $ 21.97         $ 22.71          $ 23.31

Share-owners' Equity (excluding accumulated other comprehensive income)                    $1,462,608       $1,484,788       $1,513,566      $1,564,910       $1,606,569

Common shares outstanding                                                                  68,675,894       68,675,894       68,891,149      68,907,294       68,912,705
Treasury Stock Shares                                                                       4,576,066        4,576,066        4,360,811       4,344,666        4,339,255



PROTECTIVE LIFE CORPORATION                                                                                                                                                                     Draft
Calculation of Operating Earnings Per Share                                                                                                                                                   10/29/2003
(Dollars in thousands)                                                                                                                                                                          Page 4
(Unaudited)
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
                                                                                              3RD QTR          4TH QTR          1ST QTR         2ND QTR          3RD QTR              9 MOS          9 MOS
                                                                                                 2002             2002             2003            2003             2003               2002           2003
                                                                                      -----------------------------------------------------------------------------------    ------------------------------

CALCULATION OF NET INCOME PER SHARE

Net income                                                                                   $ 50,975         $ 30,344         $ 37,705        $ 59,376         $ 52,409          $ 147,011      $ 149,490

Average shares outstanding-basic                                                           69,948,982       69,959,056       69,956,505      70,004,109       70,091,080         69,912,126     70,017,724
Average shares outstanding-diluted                                                         70,491,409       70,488,160       70,483,448      70,561,795       70,722,885         70,454,250     70,590,253

Net income per share-basic                                                                     $ 0.73           $ 0.44           $ 0.54          $ 0.85           $ 0.75             $ 2.10         $ 2.14
Net income per share-diluted                                                                   $ 0.73           $ 0.43           $ 0.53          $ 0.85           $ 0.74             $ 2.09         $ 2.12

Income from continuing operations                                                            $ 50,975         $ 30,344         $ 37,705        $ 59,376         $ 52,409          $ 147,011      $ 149,490
Change in accounting principle/extraordinary loss                                                   -                -                -               -                -                  -              -
EPS (basic)                                                                                    $ 0.73           $ 0.44           $ 0.54          $ 0.85           $ 0.75             $ 2.10         $ 2.14
EPS (diluted)                                                                                    0.73             0.43             0.53            0.85             0.74               2.09           2.12

CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE

RIGL - Derivatives                                                                             $ (981)        $ (4,209)       $ (10,514)       $ (1,551)       $ (13,834)           $ 9,445      $ (25,899)
RIGL - All Other Investments                                                                    2,106             (985)          (1,178)         29,524           27,042              1,895         55,388
Related amortization of DAC                                                                      (365)            (297)            (731)         (9,367)          (8,167)            (1,684)       (18,265)
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
                                                                                                  760           (5,491)         (12,423)         18,606            5,041              9,656         11,224
Tax effect                                                                                       (266)           1,922            4,348          (6,512)          (1,764)            (3,380)        (3,928)
                                                                                      -----------------------------------------------------------------------------------    ------------------------------
                                                                                                $ 494         $ (3,569)        $ (8,075)       $ 12,094          $ 3,277            $ 6,276        $ 7,296
                                                                                      -----------------------------------------------------------------------------------    ------------------------------

RIGL - Derivatives per share-diluted                                                              $ -          $ (0.04)         $ (0.10)        $ (0.01)         $ (0.13)            $ 0.09        $ (0.24)
RIGL - All Other Investments per share-diluted                                                 $ 0.01          $ (0.01)         $ (0.02)         $ 0.19           $ 0.17                $ -         $ 0.34



OPERATING INCOME PER SHARE

Net income per share-diluted                                                                   $ 0.73           $ 0.43           $ 0.53          $ 0.85           $ 0.74             $ 2.09         $ 2.12
RIGL - Derivatives per share-diluted                                                                -            (0.04)           (0.10)          (0.01)           (0.13)              0.09          (0.24)
RIGL - All Other Investments per share-diluted                                                   0.01            (0.01)           (0.02)           0.19             0.17                  -           0.34

                                                                                      -----------------------------------------------------------------------------------    ------------------------------
Operating income per share-diluted                                                             $ 0.72           $ 0.48           $ 0.65          $ 0.67           $ 0.70             $ 2.00         $ 2.02
                                                                                      -----------------------------------------------------------------------------------    ------------------------------


NET OPERATING INCOME *

Net income                                                                                   $ 50,975         $ 30,344         $ 37,705        $ 59,376         $ 52,409          $ 147,011      $ 149,490
RIGL - Derivatives net of tax                                                                    (638)          (2,736)          (6,834)         (1,008)          (8,992)             6,139        (16,834)
RIGL - All Other Investments net of tax and amortization                                        1,132             (833)          (1,241)         13,102           12,269                137         24,130


                                                                                      -----------------------------------------------------------------------------------    ------------------------------
Net operating income                                                                         $ 50,481         $ 33,913         $ 45,780        $ 47,282         $ 49,132          $ 140,735      $ 142,194
                                                                                      -----------------------------------------------------------------------------------    ------------------------------


PRETAX OPERATING INCOME **

Income before income tax                                                                     $ 77,636         $ 43,640         $ 56,039        $ 89,292         $ 78,792          $ 221,403      $ 224,123
RIGL - Derivatives                                                                               (981)          (4,209)         (10,514)         (1,551)         (13,834)             9,445        (25,899)
RIGL - All Other Investments                                                                    2,106             (985)          (1,178)         29,524           27,042              1,895         55,388
Related amortization of DAC                                                                      (365)            (297)            (731)         (9,367)          (8,167)            (1,684)       (18,265)

                                                                                      -----------------------------------------------------------------------------------    ------------------------------
Pretax operating income                                                                      $ 76,876         $ 49,131         $ 68,462        $ 70,686         $ 73,751          $ 211,747      $ 212,899
                                                                                      -----------------------------------------------------------------------------------    ------------------------------



* "Net Operating Income" is a non-GAAP financial measure.  "Net Income" is a GAAP financial measure to which "Net Operating Income" may be compared.
** "Pretax Operating Income" is a non-GAAP financial measure.  "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating



- -----------------------------------------------------------------
PROTECTIVE LIFE CORPORATION                                                                                               Draft
Invested Asset Summary                                                                                                 10/29/2003
(Dollars in millions)                                                                                                    Page 5
(Unaudited)
- -----------------------------------------------------------------

                                                                 -------------------------------------------------------------------
                                                                      3RD QTR       4TH QTR      1ST QTR      2ND QTR       3RD QTR
                                                                         2002          2002         2003         2003          2003
                                                                 -------------------------------------------------------------------
- -----------------------------------------------------------------
Total Portfolio
- -----------------------------------------------------------------

Fixed Income                                                        $11,451.4     $11,664.0    $12,146.1    $12,504.7     $12,452.2
Mortgage Loans                                                        2,591.4       2,518.2      2,483.6      2,543.0       2,678.4
Real Estate                                                              20.5          20.7         19.5         16.9          16.8
Equities                                                                 70.3          64.5         55.4         56.2          52.4
Policy Loans                                                            546.3         543.2        536.1        533.0         523.9
Short Term Investments                                                  455.5         448.4        913.0        804.9         582.8
Other Long Term Investments                                             176.5         222.5        227.6        258.9         246.2
                                                                 -------------------------------------------------------------------
  Total Invested Assets                                             $15,311.9     $15,481.5    $16,381.3    $16,717.6     $16,552.7

- -----------------------------------------------------------------
Fixed Income
- -----------------------------------------------------------------

  Corporate Bonds                                                    $5,792.6      $5,911.4     $6,082.8     $6,620.5      $6,516.6
  Mortgage Backed Securities                                          4,319.0       4,339.0      4,546.8      4,248.9       4,307.2
  US Govt Bonds                                                         123.2          96.5         92.6         95.2          90.8
  Public Utilities                                                    1,120.6       1,173.4      1,282.3      1,420.3       1,414.2
  States, Municipals and Political Subdivisions                          19.8          29.4         25.8         23.6          27.3
  Preferred Securities                                                    2.2           1.8          1.8          2.1           0.7
  Convertibles and Bonds with Warrants                                   74.0         112.5        114.0         94.1          95.4
                                                                 -------------------------------------------------------------------
Total Fixed Income Portfolio                                        $11,451.4     $11,664.0    $12,146.1    $12,504.7     $12,452.2

- -----------------------------------------------------------------
Fixed Income - Quality
- -----------------------------------------------------------------

AAA                                                                     38.1%         37.7%        37.7%        34.3%         34.9%
AA                                                                       5.3%          5.1%         4.9%         5.1%          5.7%
A                                                                       23.0%         22.0%        21.8%        22.2%         22.8%
BBB                                                                     28.3%         27.7%        27.5%        28.9%         28.3%
BB or Less                                                               5.2%          7.4%         8.0%         9.5%          8.3%
Redeemable Preferred Stock                                               0.1%          0.1%         0.1%         0.0%          0.0%
                                                                 -------------------------------------------------------------------
                                                                       100.0%        100.0%       100.0%       100.0%        100.0%

- -----------------------------------------------------------------
Mortgage Loans - Type
- -----------------------------------------------------------------

Retail                                                                  76.4%         76.2%        75.7%        76.0%         74.2%
Apartments                                                               8.7%          7.5%         7.2%         7.2%          8.0%
Office Buildings                                                         6.7%          7.4%         7.8%         7.2%          8.4%
Warehouses                                                               6.9%          7.4%         7.5%         7.9%          7.9%
Miscellaneous                                                            1.3%          1.5%         1.8%         1.7%          1.5%
                                                                 -------------------------------------------------------------------
                                                                       100.0%        100.0%       100.0%       100.0%        100.0%

- -----------------------------------------------------------------
Problem Mortgage Loans
- -----------------------------------------------------------------

90 Days Past Due                                                         $9.6          $1.9         $1.2         $5.2          $7.3
Renegotiated Loans                                                        5.9           5.7          5.7          5.7           5.7
Foreclosures                                                              9.8            13         11.7          8.9           8.8
                                                                 -------------------------------------------------------------------
                                                                        $25.3         $20.6        $18.6        $19.8         $21.8






- --------------------------------------------------------------------------------
PROTECTIVE LIFE CORPORATION                                                                                                                                            Draft
Life Marketing and Annuities - Quarterly Earnings Trends                                                                                                            10/29/2003
(Dollars in thousands)                                                                                                                                                Page 6
(Unaudited)
- --------------------------------------------------------------------------------
                                                                                -----------------------------------------------------------------     ---------------------------
                                                                                     3RD QTR      4TH QTR      1ST QTR      2ND QTR      3RD QTR             9 MOS         9 MOS
                                                                                        2002         2002         2003         2003         2003              2002          2003
                                                                                -----------------------------------------------------------------     ---------------------------
INDIVIDUAL LIFE

REVENUES
  Gross Premiums and Policy Fees                                                    $116,775     $126,273     $123,430     $131,580     $158,256          $339,019     $ 413,266
  Reinsurance Ceded                                                                  (12,655)    (107,043)     (75,660)     (85,517)    (121,066)         (169,280)     (282,243)
                                                                                -----------------------------------------------------------------     ---------------------------
  Net Premiums and Policy Fees                                                       104,120       19,230       47,770       46,063       37,190           169,739       131,023
  Net investment income                                                               21,452       21,907       22,389       22,674       24,195            65,330        69,258
  Realized investment gains (losses)                                                       -            -            -            -            -                 -             -
  Other income                                                                        13,409       13,277       13,972       16,972       13,613            42,659        44,557
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Revenues                                                                   138,981       54,414       84,131       85,709       74,998           277,728       244,838
                                                                                -----------------------------------------------------------------     ---------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                    28,810       21,908       40,283       29,952       35,464            94,993       105,699
  Amortization of deferred policy acquisition costs                                   72,551        7,749       15,237       11,609        5,643            92,121        32,489
  Amortization of goodwill                                                                 -            -            -            -            -                 -             -
  Other operating expenses                                                             8,376        5,291       11,739       12,218       12,704            34,838        36,661
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Benefits and Expenses                                                      109,737       34,948       67,259       53,779       53,811           221,952       174,849
                                                                                -----------------------------------------------------------------     ---------------------------
INCOME BEFORE INCOME TAX                                                             $29,244      $19,466      $16,872      $31,930      $21,187           $55,776      $ 69,989
                                                                                =================================================================     ===========================

WEST COAST

REVENUES
  Gross Premiums and Policy Fees                                                     $48,127      $72,944      $58,279      $64,663      $71,562          $135,176     $ 194,504
  Reinsurance Ceded                                                                  (39,304)     (71,083)     (43,815)     (51,021)     (56,566)         (105,822)     (151,402)
                                                                                -----------------------------------------------------------------     ---------------------------
  Net Premiums and Policy Fees                                                         8,823        1,861       14,464       13,642       14,996            29,354        43,102
  Net investment income                                                               31,103       32,767       34,149       34,841       34,504            88,998       103,494
  Realized investment gains (losses)                                                       -            -            -            -            -                 -             -
  Other income                                                                           101          335            -            9          (43)              101           (34)
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Revenues                                                                    40,027       34,963       48,613       48,492       49,457           118,453       146,562
                                                                                -----------------------------------------------------------------     ---------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                    28,554       25,061       34,664       31,717       33,559            86,262        99,940
  Amortization of deferred policy acquisition costs                                    3,670        5,569        5,647        7,424        7,145            12,397        20,216
  Amortization of goodwill                                                                 -            -            -            -            -                 -             -
  Other operating expenses                                                            (3,411)     (12,926)      (5,461)      (4,835)      (9,561)          (13,255)      (19,857)
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Benefits and Expenses                                                       28,813       17,704       34,850       34,306       31,143            85,404       100,299
                                                                                -----------------------------------------------------------------     ---------------------------
INCOME BEFORE INCOME TAX                                                             $11,214      $17,259      $13,763      $14,186      $18,314           $33,049      $ 46,263
                                                                                =================================================================     ===========================

ACQUISITIONS

REVENUES
  Gross Premiums and Policy Fees                                                     $79,341      $77,218      $73,063      $71,326      $71,903          $223,600     $ 216,292
  Reinsurance Ceded                                                                  (12,468)     (27,973)     (18,626)     (18,531)     (17,573)          (48,360)      (54,730)
                                                                                -----------------------------------------------------------------     ---------------------------
  Net Premiums and Policy Fees                                                        66,873       49,245       54,437       52,795       54,330           175,240       161,562
  Net investment income                                                               67,128       67,508       62,296       62,520       61,004           184,639       185,820
  Realized investment gains (losses)                                                       -            -            -            -            -                 -             -
  Other income                                                                           168          395          905        1,542         (329)            1,241         2,118
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Revenues                                                                   134,169      117,148      117,638      116,857      115,005           361,120       349,500
                                                                                -----------------------------------------------------------------     ---------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                    83,335       73,802       72,619       72,951       72,500           227,599       218,070
  Amortization of deferred policy acquisition costs                                   11,891        6,648       10,081        8,474        7,817            28,597        26,372
  Amortization of goodwill                                                                 -            -            -            -            -                 -             -
  Other operating expenses                                                            13,825       10,257       12,166       11,151        9,857            36,268        33,174
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Benefits and Expenses                                                      109,051       90,707       94,866       92,576       90,174           292,464       277,616
                                                                                -----------------------------------------------------------------     ---------------------------
INCOME BEFORE INCOME TAX                                                             $25,118      $26,441      $22,772      $24,281      $24,831           $68,656      $ 71,884
                                                                                =================================================================     ===========================




PROTECTIVE LIFE CORPORATION                                                                                                                                            Draft
Life Marketing and Annuities                                                                                                                                         10/29/2003
(Dollars in thousands)                                                                                                                                                 Page 7
(Unaudited)
                                                                   ----------------------------------------------------------------------------     ------------------------------
                                                                          3RD QTR         4TH QTR        1ST QTR        2ND QTR        3RD QTR               9 MOS          9 MOS
                                                                             2002            2002           2003           2003           2003                2002           2003
                                                                   ----------------------------------------------------------------------------     ------------------------------
INDIVIDUAL LIFE


SALES BY PRODUCT
   Term                                                                  $ 19,536        $ 19,652       $ 21,904       $ 32,718       $ 35,168            $ 61,198       $ 89,790
   U/L                                                                      7,372           8,929          8,288          9,440         10,489              20,176         28,217
   VUL                                                                      1,683           1,605            876          1,105          1,245               5,095          3,226
                                                                   ----------------------------------------------------------------------------     ------------------------------
         Total                                                           $ 28,591        $ 30,186       $ 31,068       $ 43,263       $ 46,902            $ 86,469      $ 121,233
                                                                   ----------------------------------------------------------------------------     ------------------------------

SALES BY DISTRIBUTION
   RSM System                                                             $ 9,673        $ 10,335       $ 10,301       $ 12,180       $ 12,917            $ 28,863       $ 35,398
   Empire General                                                          10,978          12,026         14,307         22,672         26,081              35,100         63,060
   Stockbrokers                                                             5,079           4,887          4,500          6,746          6,634              13,273         17,880
   Direct Response                                                          2,756           2,567          1,950          1,665          1,272               8,936          4,887
   All Other                                                                  105             371             10              0             (2)                297              8
                                                                   ----------------------------------------------------------------------------     ------------------------------
             Total                                                       $ 28,591        $ 30,186       $ 31,068       $ 43,263       $ 46,902            $ 86,469      $ 121,233
                                                                   ----------------------------------------------------------------------------     ------------------------------




WEST COAST


SALES BY PRODUCT
   Term                                                                  $ 16,033        $ 19,305       $ 19,306       $ 20,276       $ 21,204            $ 46,125       $ 60,786
   U/L                                                                      8,348          14,493          7,627         11,004          9,609              27,559         28,240
                                                                   ----------------------------------------------------------------------------     ------------------------------
         Total                                                           $ 24,381        $ 33,798       $ 26,933       $ 31,280       $ 30,813            $ 73,684       $ 89,026
                                                                   ----------------------------------------------------------------------------     ------------------------------

SALES BY DISTRIBUTION
   BGA                                                                   $ 21,233        $ 22,781       $ 22,420       $ 24,362       $ 26,346            $ 61,897       $ 73,128
   BOLI                                                                     3,148          11,017          4,513          6,918          4,467              11,787         15,898
                                                                   ----------------------------------------------------------------------------     ------------------------------
      Total                                                              $ 24,381        $ 33,798       $ 26,933       $ 31,280       $ 30,813            $ 73,684       $ 89,026
                                                                   ----------------------------------------------------------------------------     ------------------------------

ANNUITIES


SALES
    Variable Annuity                                                     $ 96,902        $ 78,348      $ 102,525       $ 94,336       $ 87,459           $ 246,159      $ 284,320
    Immediate Annuity                                                      24,499          22,934         26,839         26,092         12,709              77,275         65,640
    Fixed Annuity                                                          83,371          50,156         49,529         21,326          3,239             478,002         74,094
                                                                   ----------------------------------------------------------------------------     ------------------------------
      Total                                                             $ 204,772       $ 151,438      $ 178,893      $ 141,754      $ 103,407           $ 801,436      $ 424,054
                                                                   ----------------------------------------------------------------------------     ------------------------------

EARNINGS BEFORE INCOME TAX
    Variable Annuity                                                     $ (1,167)         $ (318)        $ (211)        $ (123)         $ 232             $ 1,177         $ (102)
    Fixed Annuity                                                           3,850           3,352          3,926          3,114          2,401              11,483          9,441
                                                                   ----------------------------------------------------------------------------     ------------------------------
      Total                                                               $ 2,683         $ 3,034        $ 3,715        $ 2,991        $ 2,633            $ 12,660        $ 9,339
                                                                   ----------------------------------------------------------------------------     ------------------------------

DEPOSIT BALANCE
    VA Fixed Annuity                                                    $ 311,977       $ 321,586      $ 363,741      $ 357,937      $ 334,644           $ 311,977      $ 334,644
    VA Sep Acct Annuity                                                 1,296,572       1,397,586      1,366,633      1,611,964      1,714,999           1,296,572      1,714,999
                                                                   ----------------------------------------------------------------------------     ------------------------------
           Sub-total                                                    1,608,549       1,719,172      1,730,374      1,969,901      2,049,643           1,608,549      2,049,643
    Fixed Annuity                                                       2,928,945       2,986,596      3,005,278      2,989,964      2,904,016           2,928,945      2,904,016
                                                                   ----------------------------------------------------------------------------     ------------------------------
      Total                                                            $4,537,494      $4,705,768     $4,735,652     $4,959,865     $4,953,659          $4,537,494     $4,953,659
                                                                   ----------------------------------------------------------------------------     ------------------------------




- --------------------------------------------------------------------------------
PROTECTIVE LIFE CORPORATION                                                                                                                                            Draft
Acquisitions, Stable Value Contracts, and Asset Protection                                                                                                          10/29/2003
Quarterly Earnings Trends  (Dollars in thousands)                                                                                                                     Page 8
(Unaudited)
- --------------------------------------------------------------------------------
                                                                                -----------------------------------------------------------------     ---------------------------
                                                                                     3RD QTR      4TH QTR      1ST QTR      2ND QTR      3RD QTR             9 MOS         9 MOS
                                                                                        2002         2002         2003         2003         2003              2002          2003
                                                                                -----------------------------------------------------------------     ---------------------------
ANNUITIES

REVENUES
  Gross Premiums and Policy Fees                                                     $ 6,415      $ 5,962      $ 5,883      $ 6,387      $ 6,864           $19,864      $ 19,134
  Reinsurance Ceded                                                                        -            -            -            -            -                 -             -
                                                                                -----------------------------------------------------------------     ---------------------------
  Net Premiums and Policy Fees                                                         6,415        5,962        5,883        6,387        6,864            19,864        19,134
  Net investment income                                                               56,759       58,223       58,442       57,780       54,660           162,224       170,882
  RIGL - All Other Investments                                                           363       (1,324)          27       11,206        8,582             3,601        19,815
  Other income                                                                         2,060        1,922        1,941        2,075        2,368             6,954         6,384
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Revenues                                                                    65,597       64,783       66,293       77,448       72,474           192,643       216,215
                                                                                -----------------------------------------------------------------     ---------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                    48,466       50,193       52,986       51,339       48,385           135,914       152,710
  Amortization of deferred policy acquisition costs                                    5,734        5,258        4,386       13,967       13,508            19,411        31,861
  Amortization of goodwill                                                                 -            -            -            -            -                 -             -
  Other operating expenses                                                             8,716        7,919        5,910        7,312        7,533            22,741        20,755
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Benefits and Expenses                                                       62,916       63,370       63,282       72,618       69,426           178,066       205,326

                                                                                -----------------------------------------------------------------     ---------------------------
INCOME BEFORE INCOME TAX                                                               2,681        1,413        3,011        4,830        3,048            14,577        10,889

Adjustments to Reconcile to Operating Income:
  Less:  RIGL - All Other Investments                                                    363       (1,324)          27       11,206        8,582             3,601        19,815
  Add back:  Related amortization of deferred policy acquisition costs                   365          297          731        9,367        8,167             1,684        18,265
                                                                                -----------------------------------------------------------------     ---------------------------
PRETAX OPERATING INCOME *                                                            $ 2,683      $ 3,034      $ 3,715      $ 2,991      $ 2,633           $12,660       $ 9,339
                                                                                =================================================================     ===========================


STABLE VALUE CONTRACTS

REVENUES
  Gross Premiums and Policy Fees                                                         $ -          $ -          $ -          $ -          $ -               $ -           $ -
  Reinsurance Ceded                                                                        -            -            -            -            -                 -             -
                                                                                -----------------------------------------------------------------     ---------------------------
  Net Premiums and Policy Fees                                                             -            -            -            -            -                 -             -
  Net investment income                                                               61,725       62,840       58,532       59,090       56,441           183,258       174,063
  RIGL - Derivatives                                                                  (2,338)       1,363         (661)         940          523            (5,436)          802
  RIGL - All Other Investments                                                        (4,028)      (2,314)      (6,041)       3,320        9,222              (674)        6,501
  Other income                                                                             -            -            -            -            -                 -             -
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Revenues                                                                    55,359       61,889       51,830       63,350       66,186           177,148       181,366
                                                                                -----------------------------------------------------------------     ---------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                    48,290       49,375       47,765       46,957       45,374           147,201       140,096
  Amortization of deferred policy acquisition costs                                      581          563          599          519          542             1,741         1,660
  Amortization of goodwill                                                                 -            -            -            -            -                 -             -
  Other operating expenses                                                             1,431        1,568        1,030        1,516        1,002             3,378         3,548
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Benefits and Expenses                                                       50,302       51,506       49,394       48,992       46,918           152,320       145,304

                                                                                -----------------------------------------------------------------     ---------------------------
INCOME BEFORE INCOME TAX                                                               5,057       10,383        2,436       14,358       19,268            24,828        36,062

Adjustments to Reconcile to Operating Income:
  Less:  RIGL-Derivatives                                                             (2,338)       1,363         (661)         940          523            (5,436)          802
  Less:  RIGL-All Other Investments                                                   (4,028)      (2,314)      (6,041)       3,320        9,222              (674)        6,501
                                                                                -----------------------------------------------------------------     ---------------------------
PRETAX OPERATING INCOME *                                                            $11,423      $11,334      $ 9,138      $10,098      $ 9,523           $30,938      $ 28,759
                                                                                =================================================================     ===========================




ASSET PROTECTION

REVENUES
  Gross Premiums and Policy Fees                                                    $127,534     $119,972     $110,409     $108,775     $117,437          $386,332     $ 336,621
  Reinsurance Ceded                                                                  (52,304)     (42,694)     (44,276)     (44,135)     (52,234)         (159,881)     (140,645)
                                                                                -----------------------------------------------------------------     ---------------------------
  Net Premiums and Policy Fees                                                        75,230       77,278       66,133       64,640       65,203           226,451       195,976
  Net investment income                                                               11,095       10,874        9,834        9,729       10,338            33,422        29,901
  Realized investment gains (losses)                                                       -            -            -            -            -                 -             -
  Other income                                                                         7,259        4,826        6,971       18,167        8,833            26,041        33,971
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Revenues                                                                    93,584       92,978       82,938       92,536       84,374           285,914       259,848
                                                                                -----------------------------------------------------------------     ---------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                    57,751       66,666       40,398       64,295       39,302           153,675       143,995
  Amortization of deferred policy acquisition costs                                   17,267       27,366       19,479       22,491       21,354            58,763        63,324
  Amortization of goodwill                                                                 -            -            -            -            -                 -             -
  Other operating expenses                                                            20,678       30,941       22,203       22,663       19,703            64,859        64,569
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Benefits and Expenses                                                       95,696      124,973       82,080      109,449       80,359           277,297       271,888
                                                                                -----------------------------------------------------------------     ---------------------------
INCOME BEFORE INCOME TAX                                                            $ (2,112)   $ (31,995)       $ 858    $ (16,913)     $ 4,015           $ 8,617      $(12,040)
                                                                                =================================================================     ===========================



* "Pretax Operating Income" is a non-GAAP financial measure.  "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating
Income" may be compared.




PROTECTIVE LIFE CORPORATION                                                                                                                                            Draft
Stable Value Contracts and Asset Protection Data                                                                                                                     10/29/2003
(Dollar in thousands unless otherwise noted)                                                                                                                           Page 9
(Unaudited)




                                                                   ----------------------------------------------------------------------------     ------------------------------
                                                                          3RD QTR         4TH QTR        1ST QTR        2ND QTR        3RD QTR               9 MOS          9 MOS
                                                                             2002            2002           2003           2003           2003                2002           2003
                                                                   ----------------------------------------------------------------------------     ------------------------------
STABLE VALUE CONTRACTS

SALES (millions)
    GIC                                                                      $ 92            $ 91          $ 219           $ 30           $ 25               $ 176          $ 274
    GFA                                                                         -             300            225            100            100                 588            425
                                                                   ----------------------------------------------------------------------------     ------------------------------
       Total                                                                 $ 92           $ 391          $ 444          $ 130          $ 125               $ 764          $ 699
                                                                   ----------------------------------------------------------------------------     ------------------------------

DEPOSIT BALANCE (thous)
        Total                                                          $3,806,275      $3,930,668     $3,999,054     $4,071,061     $4,010,185          $3,806,275     $4,010,185

OPERATING SPREAD                                                            1.17%           1.12%          0.93%          1.01%          0.95%               1.05%          0.96%



                                                                   ----------------------------------------------------------------------------     ------------------------------
                                                                          3RD QTR         4TH QTR        1ST QTR        2ND QTR        3RD QTR               9 MOS          9 MOS
                                                                             2002            2002           2003           2003           2003                2002           2003
                                                                   ----------------------------------------------------------------------------     ------------------------------
ASSET PROTECTION

SALES
    Credit                                                               $ 48,297        $ 37,990       $ 45,642       $ 51,168       $ 53,418           $ 139,732      $ 150,228
    Service Contracts                                                      57,754          40,729         38,709         53,869         59,421             155,074        151,999
    Other                                                                  31,734          34,627         23,552         30,313         22,601              82,130         76,466
                                                                   ----------------------------------------------------------------------------     ------------------------------
             Total                                                      $ 137,785       $ 113,346      $ 107,903      $ 135,350      $ 135,440           $ 376,936      $ 378,693
                                                                   ----------------------------------------------------------------------------     ------------------------------


PROTECTIVE LIFE CORPORATION                                                                                                                                            Draft
Corp & Other Segment - Quarterly Earnings Trends                                                                                                                    10/29/2003
(Dollars in thousands)                                                                                                                                                Page 10
(Unaudited)
                                                                                -----------------------------------------------------------------     ---------------------------
                                                                                     3RD QTR      4TH QTR      1ST QTR      2ND QTR      3RD QTR             9 MOS         9 MOS
                                                                                        2002         2002         2003         2003         2003              2002          2003
                                                                                -----------------------------------------------------------------     ---------------------------
REVENUES
  Gross Premiums and Policy Fees                                                     $13,939      $12,803      $11,192      $ 9,351      $ 8,976           $42,554      $ 29,519
  Reinsurance Ceded                                                                   (5,013)      (3,864)      (2,477)        (701)        (483)          (15,396)       (3,661)
                                                                                -----------------------------------------------------------------     ---------------------------
  Net Premiums and Policy Fees                                                         8,926        8,939        8,715        8,650        8,493            27,158        25,858
  Net investment income                                                               13,804       17,324       14,918       18,583       10,397            41,890        43,898
  Realized investment gains (losses)                                                       0            0            0            0            0                 0             0
  Other income                                                                           930          677        1,520        1,216        1,686             1,768         4,422
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Revenues                                                                    23,660       26,940       25,153       28,449       20,576            70,816        74,178
                                                                                -----------------------------------------------------------------     ---------------------------

BENEFITS & EXPENSES
  Benefits and settlement expenses                                                    10,746        6,596        8,283        7,515        7,591            27,840        23,389
  Amortization of deferred policy acquisition costs                                      327          342          330          319          232             1,137           881
  Amortization of goodwill                                                                 0            0            0            0            0                 0             0
  Other operating expenses                                                            13,281       16,410       15,196       16,502       19,505            39,788        51,203
                                                                                -----------------------------------------------------------------     ---------------------------
    Total Benefits and Expenses                                                       24,354       23,348       23,809       24,336       27,328            68,765        75,473
                                                                                -----------------------------------------------------------------     ---------------------------

INCOME BEFORE INCOME TAX                                                              $ (694)     $ 3,592      $ 1,344      $ 4,113     $ (6,752)          $ 2,051      $ (1,295)
                                                                                =================================================================     ===========================

UNALLOCATED RIGL - DERIVATIVES>                                                       $ 1,357     $ (5,572)    $ (9,853)    $ (2,491)   $ (14,357)          $14,881      $(26,701)
UNALLOCATED RIGL - ALL OTHER INVESTMENTS                                                5,771        2,653        4,836       14,998        9,238            (1,032)       29,072
-----END PRIVACY-ENHANCED MESSAGE-----