EX-99.2 3 ex99_2.htm SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Financial Information
Exhibit 99.2
 
Protective Life Corporation
Post Office Box 2606
Birmingham, AL 35202
Phone 205-268-1000
  


 

SUPPLEMENTAL FINANCIAL INFORMATION


The following document contains supplemental quarterly statistical financial information for the quarter ended September 30, 2005. This document is dated October 31, 2005. Protective does not undertake a duty to update such information after such date.

All income per share results are presented on a diluted basis.

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.

Information About Non-GAAP Financial Measures

Throughout this document, GAAP refers to accounting principles generally accepted in the United States of America. Operating income differs from the GAAP measure, net income, in that it excludes realized investment gains and losses (net of the related amortization of deferred acquisition costs (“DAC”) and participating income from real estate ventures) and the cumulative effect of change in accounting principle. Consolidated and segment operating income excludes net realized investment gains (losses) (net of the related amortization of DAC and participating income from real estate ventures) and the cumulative effect of change in accounting principle. Periodic settlements of interest rate swaps associated with corporate debt and certain investments are included in realized gains (losses) but are considered part of operating income because the swaps are used to mitigate risk in items affecting operating income. 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, as it represents the basis on which the performance of the Company’s business is internally assessed.

As prescribed by GAAP, 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. Therefore, the Company reports the non-GAAP measure share owners’ equity per share excluding accumulated other comprehensive income,including unrealized gains (losses) on investments. This non-GAAP measure may be reconciled to the GAAP measure, share owners’ equity per share by including accumulated other comprehensive income, including unrealized gains (losses) on investments.

From time to time, the Company provides additional financial information, which is available on the Company’s web site at www.protective.com in the Analyst/Investor section under the financial report library titled Company Overview.
 

 
PROTECTIVE LIFE CORPORATION
                          
Draft
  
Quarterly Financial Highlights
                          
10/27/2005
  
(Dollars in Thousands)
                          
Page 1
  
(Unaudited)
                              
                               
   
3RD QTR
 
4TH QTR
 
1ST QTR
 
2ND QTR
 
3RD QTR
 
9 MOS
 
9 MOS
 
 
 
2004
 
2004
 
2005
 
2005
 
2005
 
2004
 
2005
  
Pretax Operating Income *
                              
                               
                               
                               
Life Marketing
  
$
38,818
  
$
41,881
  
$
39,141
  
$
38,332
  
$
38,014
  
$
124,016
  
$
115,487
  
Acquisitions
    
21,262
   
21,374
   
21,035
   
21,473
   
19,510
   
65,926
   
62,018
 
Annuities
    
4,008
   
4,671
   
4,064
   
8,145
   
4,927
   
11,796
   
17,136
 
Stable Value Contracts
    
13,313
   
14,221
   
14,399
   
13,484
   
13,743
   
38,938
   
41,626
 
Asset Protection
    
5,425
   
4,680
   
6,172
   
6,292
   
6,102
   
14,399
   
18,566
 
Corporate & Other
    
12,325
   
1,802
   
11,645
   
9,380
   
16,236
   
19,758
   
37,261
 
Total Pretax Operating Income
  
$
95,151
  
$
88,629
  
$
96,456
  
$
97,106
  
$
98,532
  
$
274,833
  
$
292,094
  
                                             
                                             
                                             
Balance Sheet Data
                                            
                                             
Total GAAP Assets
  
$
25,967,529
  
$
27,211,378
  
$
27,863,074
  
$
28,551,847
  
$
28,592,534
              
Share Owners' Equity
  
$
2,117,109
  
$
2,166,327
  
$
2,124,402
  
$
2,299,265
  
$
2,200,866
              
Share Owners' Equity (excluding accumulated other comprehensive income) **
  
$
1,823,064
  
$
1,870,016
  
$
1,925,428
  
$
1,959,487
  
$
2,016,355
              
                                             
                                             
                                             
Stock Data
                                            
                                             
Closing Price
  
$
39.31
  
$
42.69
  
$
39.30
  
$
42.22
  
$
41.18
  
$
39.31
  
$
41.18
  
Average Shares Outstanding
                                            
Basic
    
70,337,248
   
70,431,763
   
70,474,337
   
70,517,476
   
70,582,016
   
70,255,051
   
70,525,004
 
Diluted
    
71,115,468
   
71,221,826
   
71,273,760
   
71,279,363
   
71,350,044
   
71,011,727
   
71,301,335
 
                                             
                                             
* "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 5 for a reconciliation of "Pretax Operating Income" to "Income Before Income Tax".
                                    
                                             
** "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which
  
"Share-owners' equity excluding accumulated other comprehensive income" may be compared.
                                
See Page 4 for a reconciliation of "Share-owners' equity excluding accumulated other comprehensive income" to "Share-owners' equity".
                    
 

PROTECTIVE LIFE CORPORATION
                          
Draft
  
GAAP Consolidated Statements Of Income
                          
10/27/2005
  
(Dollars in thousands)
                          
Page 2
  
(Unaudited)
                              
   
3RD QTR
  
4TH QTR
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
9 MOS
  
9 MOS
  
 
  
2004
  
2004
  
2005
  
2005
  
2005
  
2004
  
2005
  
REVENUES
                              
Gross Premiums and Policy Fees
  
$
456,193
  
$
476,709
  
$
472,143
  
$
481,014
  
$
486,660
  
$
1,344,385
  
$
1,439,817
  
Reinsurance Ceded
    
(272,846
)
  
(327,817
)
  
(284,913
)
  
(309,750
)
  
(282,919
)
  
(797,829
)
  
(877,582
)
Net Premiums and Policy Fees
    
183,347
   
148,892
   
187,230
   
171,264
   
203,741
   
546,556
   
562,235
 
Net investment income
    
279,271
   
274,439
   
287,953
   
282,374
   
306,885
   
809,778
   
877,212
 
RIGL - Derivatives
    
6,287
   
(519
)
  
(6,368
)
  
(26,021
)
  
7,662
   
20,110
   
(24,727
)
RIGL - All Other Investments
    
8,181
   
4,420
   
27,878
   
12,480
   
3,612
   
23,885
   
43,970
 
Other income
    
41,622
   
42,443
   
43,416
   
46,373
   
47,377
   
118,571
   
137,166
 
Total Revenues
    
518,708
   
469,675
   
540,109
   
486,470
   
569,277
   
1,518,900
   
1,595,856
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
288,455
   
272,197
   
300,434
   
291,636
   
333,365
   
858,240
   
925,435
 
Amortization of deferred policy acquisition costs
    
52,375
   
42,908
   
74,251
   
51,867
   
57,950
   
157,222
   
184,068
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
63,177
   
53,419
   
60,456
   
55,911
   
55,513
   
169,672
   
171,880
 
Interest on indebtedness
    
12,435
   
12,985
   
13,098
   
13,614
   
15,582
   
36,731
   
42,294
 
Total Benefits and Expenses
    
416,442
   
381,509
   
448,239
   
413,028
   
462,410
   
1,221,865
   
1,323,677
 
                                             
INCOME BEFORE INCOME TAX
    
102,266
   
88,166
   
91,870
   
73,442
   
106,867
   
297,035
   
272,179
 
Income tax expense
    
35,793
   
30,858
   
31,787
   
25,411
   
36,976
   
103,962
   
94,174
 
Change in Acct Principle
    
0
   
(0
)
  
0
   
0
   
0
   
(15,801
)
  
-
 
NET INCOME
  
$
66,473
  
$
57,308
  
$
60,083
  
$
48,031
  
$
69,891
  
$
177,272
  
$
178,005
  
                                             
PER SHARE DATA FOR QUARTER
                                            
Operating income-diluted *
  
$
0.88
  
$
0.80
  
$
0.88
  
$
0.90
  
$
0.90
              
RIGL - Derivatives net of gains related to corp debt and investments
    
0.02
   
(0.05
)
  
(0.09
)
  
(0.27
)
  
0.05
             
RIGL - All Other Investments, net of participating income
    
0.04
   
0.05
   
0.05
   
0.05
   
0.03
             
Change in Accounting Principle
    
0.00
   
0.00
   
0.00
   
0.00
   
0.00
             
Net income-diluted
  
$
0.94
  
$
0.80
  
$
0.84
  
$
0.68
  
$
0.98
              
Average shares outstanding-diluted
    
71,115,468
   
71,221,826
   
71,273,760
   
71,279,363
   
71,350,044
             
Dividends paid
  
$
0.175
  
$
0.175
  
$
0.175
  
$
0.195
  
$
0.195
              
                                             
PER SHARE DATA FOR YTD
                                            
Operating income-diluted *
  
$
2.52
  
$
3.32
  
$
0.88
  
$
1.78
  
$
2.68
  
$
2.52
  
$
2.68
  
RIGL - Derivatives net of gains related to corp debt and investments
    
0.05
   
0.00
   
(0.09
)
  
(0.36
)
  
(0.31
)
  
0.05
   
(0.31
)
RIGL - All Other Investments, net of participating income
    
0.15
   
0.20
   
0.05
   
0.10
   
0.13
   
0.15
   
0.13
 
Change in Accounting Principle
    
(0.22
)
  
(0.22
)
  
0.00
   
0.00
   
0.00
   
(0.22
)
  
-
 
Net income-diluted
  
$
2.50
  
$
3.30
  
$
0.84
  
$
1.52
  
$
2.50
  
$
2.50
  
$
2.50
  
Average shares outstanding-diluted
    
71,011,727
   
71,064,539
   
71,273,760
   
71,276,577
   
71,301,335
   
71,011,727
   
71,301,335
 
Dividends paid
  
$
0.510
  
$
0.685
  
$
0.175
  
$
0.370
  
$
0.565
  
$
0.510
  
$
0.565
  
                                             
                                             
                                             
* "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
                  
10/27/2005
  
(Dollars in thousands)
                  
Page 3
  
(Unaudited)
                      
                       
   
3RD QTR
  
4TH QTR
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
 
  
2004
  
2004
  
2005
  
2005
  
2005
  
ASSETS
                      
Fixed maturities
  
$
13,679,358
  
$
14,412,605
  
$
15,263,694
  
$
15,686,373
  
$
15,824,420
  
Equity securities
    
59,635
   
58,941
   
59,605
   
115,758
   
115,570
 
Mortgage loans
    
2,904,729
   
3,005,418
   
3,042,584
   
3,124,877
   
3,101,823
 
Investment real estate
    
107,220
   
107,246
   
104,986
   
91,981
   
92,340
 
Policy loans
    
485,282
   
482,780
   
472,345
   
466,701
   
463,514
 
Other long-term investments
    
334,734
   
377,724
   
342,840
   
307,031
   
286,497
 
Long-term investments
    
17,570,958
   
18,444,714
   
19,286,054
   
19,792,721
   
19,884,164
 
Short-term investments
    
1,042,278
   
1,059,557
   
816,335
   
626,795
   
606,165
 
Total investments
    
18,613,236
   
19,504,271
   
20,102,389
   
20,419,516
   
20,490,329
 
Cash
    
117,118
   
130,596
   
53,673
   
98,316
   
63,565
 
Accrued investment income
    
204,977
   
196,076
   
202,008
   
192,454
   
201,037
 
Accounts and premiums receivable
    
51,504
   
44,364
   
50,271
   
348,688
   
58,889
 
Reinsurance receivable
    
2,631,037
   
2,750,260
   
2,835,979
   
2,883,648
   
2,862,674
  
Deferred policy acquisition costs
   
1,792,335
   
1,821,972
   
1,913,803
   
1,866,815
   
2,032,784
 
Goodwill
    
46,619
   
46,619
   
46,619
   
49,423
   
49,423
 
Property and equipment, net
    
46,359
   
45,454
   
44,520
   
46,878
   
47,304
 
Other assets
    
157,451
   
145,813
   
139,725
   
134,441
   
193,298
  
Assets Related to Separate Accounts
                                
Variable Annuity
    
2,110,082
   
2,308,858
   
2,256,920
   
2,286,141
   
2,352,287
 
Variable Universal Life
    
192,478
   
217,095
   
217,167
   
225,527
   
240,944
 
Other
    
4,333
   
0
   
0
   
0
   
0
 
                                 
TOTAL ASSETS
  
$
25,967,529
  
$
27,211,378
  
$
27,863,074
  
$
28,551,847
  
$
28,592,534
  
                                 

PROTECTIVE LIFE CORPORATION
                  
Draft
  
GAAP Consolidated Balance Sheets
                  
10/27/2005
  
(Dollars in thousands)
                  
Page 4
  
(Unaudited)
                      
                       
                       
LIABILITIES AND SHARE-OWNERS' EQUITY
                      
   
3RD QTR
 
4TH QTR
 
1ST QTR
 
2ND QTR
 
3RD QTR
 
 
2004
 
2004
 
2005
 
2005
 
2005
  
 LIABILITIES                      
Policy liabilities and accruals
                      
Future policy benefits and claims
  
$
9,682,429
  
$
10,014,106
  
$
10,222,011
  
$
10,499,494
  
$
10,797,532
  
Unearned premiums
    
635,364
   
666,560
   
673,841
   
679,916
   
671,971
  
Stable value product deposits
    
5,143,367
   
5,562,997
   
5,670,355
   
5,846,120
   
5,900,740
 
Annuity deposits
    
3,429,473
   
3,463,477
   
3,433,293
   
3,447,394
   
3,430,039
  
Other policyholders' funds
    
155,952
   
151,660
   
151,572
   
149,247
   
149,838
 
Securities sold under repurchase agreements
    
0
   
0
   
0
   
31,550
   
142,850
 
Other liabilities
    
950,556
   
1,062,706
   
1,556,736
   
1,482,085
   
1,043,260
 
Accrued income taxes
    
0
  
13,195
   
29,213
   
21,701
   
0
  
Deferred income taxes
    
329,272
   
312,544
   
256,453
   
311,146
   
287,976
  
Non-recourse funding obligations
    
0
   
0
   
0
   
0
   
100,000
 
Debt
    
401,541
   
451,433
   
451,424
   
469,317
   
471,808
 
Liabilities related to variable interest entities
    
475,953
   
482,434
   
481,921
   
465,078
   
464,747
 
Subordinated debt securities
    
324,743
   
324,743
   
324,743
   
324,743
   
324,743
 
     
0
   
0
   
0
   
0
   
0
 
                                 
Minority interest - subsidiaries
    
14,877
   
13,243
   
13,023
   
13,123
   
12,933
 
Liabilities related to separate accounts
                                
Variable annuity
    
2,110,082
   
2,308,858
   
2,256,920
   
2,286,141
   
2,352,287
 
Variable universal life
    
192,478
   
217,095
   
217,167
   
225,527
   
240,944
 
Other
    
4,333
   
0
   
0
   
0
   
0
 
TOTAL LIABILITIES
  
$
23,850,420
  
$
25,045,051
  
$
25,738,672
  
$
26,252,582
  
$
26,391,668
  
                                 
                                 
SHARE-OWNERS' EQUITY
                                
Preferred stock
    
0
   
0
   
0
   
0
   
0
 
Common stock
    
36,626
   
36,626
   
36,626
   
36,626
   
36,626
 
Additional paid-in capital
    
425,181
   
426,927
   
433,467
   
433,040
   
433,363
 
Treasury stock
    
(13,684
)
  
(13,632
)
  
(13,041
)
  
(13,011
)
  
(12,768
)
Stock held in trust
    
0
   
0
   
0
   
0
   
0
 
Unallocated ESOP shares
    
(1,989
)
  
(1,989
)
  
(1,610
)
  
(1,610
)
  
(1,610
)
Retained earnings
    
1,376,930
   
1,422,084
   
1,469,986
   
1,504,442
   
1,560,744
 
Accumulated other comprehensive income
    
294,045
   
296,311
   
198,974
   
339,778
   
184,511
 
                                 
Total Share-owners' Equity
    
2,117,109
   
2,166,327
   
2,124,402
   
2,299,265
   
2,200,866
 
                                 
TOTAL LIABILITIES AND EQUITY
  
$
25,967,529
  
$
27,211,378
  
$
27,863,074
  
$
28,551,847
  
$
28,592,534
  
                                 
SHARE-OWNERS' EQUITY PER SHARE
                                
Total Share-owners' Equity
  
$
30.49
  
$
31.19
  
$
30.52
  
$
33.02
  
$
31.58
  
Accumulated other comprehensive income
    
4.23
   
4.26
   
2.86
   
4.88
   
2.65
 
Excluding accumulated other comprehensive income *
  
$
26.26
  
$
26.93
  
$
27.66
  
$
28.14
  
$
28.93
  
                                 
Total Share-owners' Equity
  
$
2,117,109
  
$
2,166,327
  
$
2,124,402
  
$
2,299,265
  
$
2,200,866
  
Accumulated other comprehensive income
    
294,045
   
296,311
   
198,974
   
339,778
   
184,511
 
Share-owners' Equity (excluding accumulated other comprehensive income) *
  
$
1,823,064
  
$
1,870,016
  
$
1,925,428
  
$
1,959,487
  
$
2,016,355
  
                                 
Common shares outstanding
    
69,435,440
   
69,449,889
   
69,615,285
   
69,627,244
   
69,692,925
 
Treasury Stock shares
    
3,816,520
   
3,802,071
   
3,636,675
   
3,624,716
   
3,559,035
 
                                 
* "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which
  
"Share-owners' equity excluding accumulated other comprehensive income" may be compared.
                        
                                 
 
                                             
PROTECTIVE LIFE CORPORATION
                                        
Draft
  
Calculation of Operating Earnings Per Share
                                        
10/27/2005
  
(Dollars in thousands)
                                        
Page 5
  
(Unaudited)
                                            
    3RD QTR     
4TH QTR
    
1ST QTR
    
2ND QTR
    
3RD QTR
    
9 MOS
    
9 MOS
  
     
2004
    
2004
    
2005
    
2005
    
2005
    
2004
    
2005
  
                                             
CALCULATION OF NET INCOME PER SHARE
                                            
                                             
Net income
  
$
66,473
  
$
57,308
  
$
60,083
  
$
48,031
  
$
69,891
  
$
177,272
  
$
178,005
  
                                             
Average shares outstanding-basic
    
70,337,248
   
70,431,763
   
70,474,337
   
70,517,476
   
70,582,016
   
70,255,051
   
70,525,004
 
Average shares outstanding-diluted
    
71,115,468
   
71,221,826
   
71,273,760
   
71,279,363
   
71,350,044
   
71,011,727
   
71,301,335
 
                                             
Net income per share-basic
  
$
0.95
  
$
0.81
  
$
0.85
  
$
0.68
  
$
0.99
  
$
2.53
  
$
2.52
  
Net income per share-diluted
  
$
0.94
  
$
0.80
  
$
0.84
  
$
0.68
  
$
0.98
  
$
2.50
  
$
2.50
  
                                             
Income from continuing operations
  
$
66,473
  
$
57,308
  
$
60,083
  
$
48,031
  
$
69,891
  
$
193,073
  
$
178,005
  
EPS (basic)
  
$
0.95
  
$
0.81
  
$
0.85
  
$
0.68
  
$
0.99
  
$
2.75
  
$
2.52
  
EPS (diluted)
  
$
0.94
  
$
0.80
  
$
0.84
  
$
0.68
  
$
0.98
  
$
2.72
  
$
2.50
  
                                             
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
                                            
                                             
RIGL - Derivatives
  
$
6,287
  
$
(519
)
$
(6,368
)
$
(26,021
)
$
7,662
  
$
20,110
  
$
(24,727
)
Derivative Gains related to Corporate Debt and Investments
    
(4,684
)
  
(4,309
)
  
(3,684
)
  
(2,960
)
  
(2,777
)
  
(14,913
)
  
(9,421
)
RIGL - All Other Investments, net of participating income
    
8,181
   
4,420
   
27,878
   
6,597
   
3,612
   
23,885
   
38,087
 
Related amortization of DAC
    
(2,669
)
  
(55
)
  
(22,412
)
  
(1,280
)
  
(162
)
  
(6,880
)
  
(23,854
)
     
7,115
   
(463
)
  
(4,586
)
  
(23,664
)
  
8,335
   
22,202
   
(19,915
)
Tax effect
   
(2,491
)
  
162
   
1,605
   
8,283
   
(2,918
)
  
(7,771
)
  
6,970
 
   
$
4,624
  
$
(301
)
$
(2,981
)
$
(15,381
)
$
5,417
  
$
14,431
  
$
(12,945
)
                                             
RIGL - Derivatives per share-diluted
  
$
0.02
  
$
(0.05
)
$
(0.09
)
$
(0.27
)
$
0.05
  
$
0.05
  
$
(0.31
)
RIGL - All Other Investments per share-diluted
  
$
0.04
  
$
0.05
  
$
0.05
  
$
0.05
  
$
0.03
  
$
0.15
  
$
0.13
  
                                             
                                             
                                             
OPERATING INCOME PER SHARE *
                                            
                                             
Net income per share-diluted
  
$
0.94
  
$
0.80
  
$
0.84
  
$
0.68
  
$
0.98
  
$
2.50
  
$
2.50
  
RIGL - Derivatives per share-diluted
    
0.02
   
(0.05
)
  
(0.09
)
  
(0.27
)
  
0.05
   
0.05
   
(0.31
)
RIGL - All Other Investments, net of participating income per share-diluted
    
0.04
   
0.05
   
0.05
   
0.05
   
0.03
   
0.15
   
0.13
 
Change in accounting principle
    
-
   
-
   
-
   
-
   
-
   
(0.22
)
  
-
 
Operating income per share-diluted
  
$
0.88
  
$
0.80
  
$
0.88
  
$
0.90
  
$
0.90
  
$
2.52
  
$
2.68
  
                                             
                                             
NET OPERATING INCOME *
                                            
                                             
Net income
  
$
66,473
  
$
57,308
  
$
60,083
  
$
48,031
  
$
69,891
  
$
177,272
  
$
178,005
  
RIGL - Derivatives net of tax & gains related to corp debt & investments
    
1,042
   
(3,138
)
  
(6,534
)
  
(18,837
)
  
3,175
   
3,378
   
(22,196
)
RIGL - All Other Investments net of tax, amortization, and participating income
    
3,583
   
2,838
   
3,553
   
3,456
   
2,242
   
11,053
   
9,251
 
Change in accounting principle
    
-
   
-
   
-
   
-
   
-
   
(15,801
)
  
-
 
Net operating income
  
$
61,848
  
$
57,608
  
$
63,064
  
$
63,412
  
$
64,474
  
$
178,642
  
$
190,950
  
                                             
                                             
PRETAX OPERATING INCOME **
                                            
                                             
Income before income tax
  
$
102,266
  
$
88,166
  
$
91,870
  
$
73,442
  
$
106,867
  
$
297,035
  
$
272,179
  
RIGL - Derivatives
    
6,287
   
(519
)
  
(6,368
)
  
(26,021
)
  
7,662
   
20,110
   
(24,727
)
Derivative Gains related to Corporate Debt and Investments
    
(4,684
)
  
(4,309
)
  
(3,684
)
  
(2,960
)
  
(2,777
)
  
(14,913
)
  
(9,421
)
RIGL - All Other Investments, net of participating income
    
8,181
   
4,420
   
27,878
   
6,597
   
3,612
   
23,885
   
38,087
 
Related amortization of DAC
    
(2,669
)
  
(55
)
  
(22,412
)
  
(1,280
)
  
(162
)
  
(6,880
)
  
(23,854
)
Pretax operating income
  
$
95,151
  
$
88,629
  
$
96,456
  
$
97,106
  
$
98,532
  
$
274,833
  
$
292,094
  
                                             
                                             
* "Net Operating Income" and "Operating Income Per Share" are non-GAAP financial measures. "Net Income" and "Net Income Per Share" are GAAP
            
financial measures to which "Net Operating Income" and "Operating Income Per Share" 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
Income" may be compared.
                                           
                                             
 
 
 

PROTECTIVE LIFE CORPORATION
                  
Draft
  
Invested Asset Summary
                  
10/27/2005
  
(Dollars in millions)
                  
Page 6
 
(Unaudited)
                      
                       
   
3RD QTR
 
4TH QTR
 
1ST QTR
 
2ND QTR
 
3RD QTR
 
   
2004
 
2004
 
2005
 
2005
 
2005
 
Total Portfolio
                      
                       
Fixed Income
  
$
13,679.4
  
$
14,412.6
  
$
15,263.7
  
$
15,686.4
  
$
15,824.4
  
Mortgage Loans
    
2,904.7
    
3,005.4
    
3,042.6
    
3,124.9
    
3,101.8
  
Real Estate
    
107.2
    
107.3
    
105.0
    
92.0
    
92.3
  
Equities
    
59.6
    
58.9
    
59.6
    
115.7
    
115.6
  
Policy Loans
    
485.3
    
482.8
    
472.4
    
466.7
    
463.5
  
Short Term Investments
    
1,042.3
    
1,059.6
    
816.3
    
626.8
    
606.2
  
Other Long Term Investments
    
217.3
    
377.7
    
222.9
    
186.0
    
286.5
  
Total Invested Assets
  
$
18,495.8
  
$
19,504.3
  
$
19,982.5
  
$
20,298.5
  
$
20,490.3
  
                                 
Fixed Income
                                
                                 
Corporate Bonds
  
$
7,200.4
  
$
7,466.0
  
$
7,209.4
  
$
7,597.3
  
$
7,489.8
  
Mortgage Backed Securities
    
4,598.3
    
5,070.2
    
6,201.5
    
6,094.3
    
6,348.2
  
US Govt Bonds
    
79.3
    
86.0
    
94.7
    
88.5
    
88.3
  
Public Utilities
    
1,759.2
    
1,745.5
    
1,705.6
    
1,852.7
    
1,844.4
  
States, Municipals and Political Subdivisions
    
27.7
    
30.4
    
49.6
    
52.2
    
50.9
  
Preferred Securities
    
3.5
    
3.6
    
2.7
    
1.2
    
2.6
  
Convertibles and Bonds with Warrants
    
11.0
    
10.9
    
0.2
    
0.2
    
0.2
  
Total Fixed Income Portfolio
  
$
13,679.4
  
$
14,412.6
  
$
15,263.7
  
$
15,686.4
  
$
15,824.4
  
                                 
Fixed Income - Quality
                                
                                 
AAA
   
34.6
%
  
35.9
%
  
40.9
%
  
40.0
%
  
40.9
%
AA
    
6.4
%
  
6.2
%
  
6.0
%
  
3.7
%
  
4.4
%
A
    
23.5
%
  
22.2
%
  
21.0
%
  
17.8
%
  
17.0
%
BBB
    
28.6
%
  
28.9
%
  
25.8
%
  
31.1
%
  
30.5
%
BB or Less
    
6.9
%
  
6.8
%
  
6.3
%
  
7.4
%
  
7.2
%
Redeemable Preferred Stock
    
0.0
%
  
0.0
%
  
0.0
%
  
0.0
%
  
0.0
%
     
100.0
%
  
100.0
%
  
100.0
%
  
100.0
%
  
100.0
%
                                 
Mortgage Loans - Type
                                
                                 
Retail
    
71.2
%
  
70.7
%
  
69.6
%
  
69.2
%
  
68.6
%
Apartments
    
10.1
%
  
10.2
%
  
11.7
%
  
12.5
%
  
12.3
%
Office Buildings
    
8.7
%
  
9.2
%
  
9.4
%
  
9.2
%
  
9.8
%
Warehouses
    
8.5
%
  
8.4
%
  
8.3
%
  
7.9
%
  
8.2
%
Miscellaneous
    
1.5
%
  
1.5
%
  
1.0
%
  
1.2
%
  
1.1
%
     
100.0
%
  
100.0
%
  
100.0
%
  
100.0
%
  
100.0
%
                                 
Problem Mortgage Loans
                                
                                 
60 Days Past Due
  
$
5.4
  
$
1.9
  
$
1.9
  
$
1.9
  
$
1.9
  
90 Days Past Due
    
1.9
    
1.9
    
8.2
    
2.6
    
5.4
  
Renegotiated Loans
    
5.7
    
5.6
    
5.4
    
8.3
    
5.5
  
Foreclosed Real Estate
    
1.3
    
1.4
    
0.0
    
4.3
    
5.0
  
   
$
14.3
  
$
10.8
  
$
15.5
  
$
17.1
  
$
17.8
  
 


PROTECTIVE LIFE CORPORATION
                          
Draft
  
Life Marketing and Acquisitions - Quarterly Earnings Trends
                          
10/27/2005
  
(Dollars in thousands)
                          
Page 7
 
(Unaudited)
                              
   
3RD QTR
  
4TH QTR
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
9 MOS
  
9 MOS
  
 
  
2004
  
2004
  
2005
  
2005
  
2005
  
2004
  
2005
  
LIFE MARKETING
                              
                               
REVENUES
                              
Gross Premiums and Policy Fees
  
$
253,952
  
$
286,020
  
$
273,769
  
$
290,333
  
$
297,098
  
$
740,869
  
$
861,200
  
Reinsurance Ceded
    
(191,228
)
  
(253,121
)
  
(199,746
)
  
(235,968
)
  
(204,572
)
  
(565,086
)
  
(640,286
)
Net Premiums and Policy Fees
    
62,724
   
32,899
   
74,023
   
54,365
   
92,526
   
175,783
   
220,914
 
Net investment income
    
59,985
   
61,339
   
61,153
   
62,541
   
66,847
   
176,854
   
190,541
 
Realized investment gains (losses)
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other income
    
25,151
   
26,053
   
28,556
   
27,107
   
27,577
   
68,642
   
83,240
 
Total Revenues
    
147,860
   
120,291
   
163,732
   
144,013
   
186,950
   
421,279
   
494,695
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
78,361
   
57,505
   
89,783
   
72,994
   
112,119
   
217,079
   
274,896
 
Amortization of deferred policy acquisition costs
    
14,823
   
12,140
   
17,827
   
21,413
   
23,831
   
46,830
   
63,071
 
Amortization of goodwill
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other operating expenses
    
15,858
   
8,765
   
16,981
   
11,274
   
12,986
   
33,354
   
41,241
 
Total Benefits and Expenses
    
109,042
   
78,410
   
124,591
   
105,681
   
148,936
   
297,263
   
379,208
 
                                             
INCOME BEFORE INCOME TAX
 
$
38,818
  
$
41,881
  
$
39,141
  
$
38,332
  
$
38,014
  
$
124,016
  
$
115,487
  
                                             
                                             
ACQUISITIONS
                                            
                                             
REVENUES
                                            
Gross Premiums and Policy Fees
  
$
66,985
  
$
70,281
  
$
65,500
  
$
66,104
  
$
64,265
  
$
206,113
  
$
195,869
  
Reinsurance Ceded
    
(16,562
)
  
(20,559
)
  
(20,029
)
  
(17,257
)
  
(17,668
)
  
(51,503
)
  
(54,954
)
Net Premiums and Policy Fees
    
50,423
   
49,722
   
45,471
   
48,847
   
46,597
   
154,610
   
140,915
 
Net investment income
    
57,682
   
57,458
   
56,714
   
56,099
   
55,366
   
175,041
   
168,179
 
Realized investment gains (losses)
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other income
    
655
   
432
   
361
   
453
   
251
   
1,840
   
1,065
 
Total Revenues
    
108,760
   
107,612
   
102,546
   
105,399
   
102,214
   
331,491
   
310,159
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
71,571
   
71,425
   
66,399
   
68,784
   
69,312
   
215,931
   
204,495
 
Amortization of deferred policy acquisition costs
    
7,056
   
6,271
   
7,071
   
7,185
   
6,197
   
22,381
   
20,453
 
Amortization of goodwill
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other operating expenses
    
8,871
   
8,542
   
8,041
   
7,957
   
7,195
   
27,253
   
23,193
 
Total Benefits and Expenses
    
87,498
   
86,238
   
81,511
   
83,926
   
82,704
   
265,565
   
248,141
 
                                             
INCOME BEFORE INCOME TAX
 
$
21,262
  
$
21,374
  
$
21,035
  
$
21,473
  
$
19,510
  
$
65,926
  
$
62,018
  
                                             
                                             
 


PROTECTIVE LIFE CORPORATION
                                  
Draft
  
Life Marketing and Annuities Data
                                  
10/27/2005
  
(Dollars in thousands)
                                  
Page 8
  
(Unaudited)
                                      
                                       
                                       
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
2005
 
2005
 
9MOS
 
9 MOS
 
 
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
2004
  
2005
  
LIFE MARKETING
                                      
                                       
                                       
SALES BY PRODUCT
                                      
Term
  
$
46,835
  
$
42,208
  
$
41,046
  
$
41,794
  
$
34,508
  
$
26,861
  
$
27,975
  
$
130,089
  
$
89,344
  
U/L
    
17,697
   
19,266
   
16,364
   
31,212
   
32,747
   
41,639
   
50,308
   
53,327
   
124,694
 
VUL
    
1,125
   
1,474
   
1,491
   
1,146
   
1,138
   
1,197
   
1,698
   
4,090
   
4,033
 
Total
  
$
65,657
  
$
62,948
  
$
58,901
  
$
74,152
  
$
68,393
  
$
69,697
  
$
79,981
  
$
187,506
  
$
218,071
  
                                                         
SALES BY DISTRIBUTION
                                                       
Brokerage general agents
  
$
42,747
  
$
39,580
  
$
37,843
  
$
40,975
  
$
36,172
  
$
29,495
  
$
36,072
  
$
120,170
  
$
101,739
  
Independent agents
    
12,740
   
12,570
   
12,615
   
18,004
   
17,309
   
18,815
   
21,788
   
37,925
   
57,912
 
Stockbrokers/banks
    
6,059
   
6,782
   
7,016
   
11,854
   
12,627
   
17,936
   
19,741
   
19,857
   
50,304
 
Direct Response & BOLI
    
4,111
   
4,016
   
1,427
   
3,319
   
2,285
   
3,451
   
2,380
   
9,554
   
8,116
 
Total
  
$
65,657
  
$
62,948
  
$
58,901
  
$
74,152
  
$
68,393
  
$
69,697
  
$
79,981
  
$
187,506
  
$
218,071
  
                                                         
                                                         
ANNUITIES
                                                        
                                                         
                                                         
SALES
                                                        
Variable Annuity
 
$
61,724
  
$
63,317
  
$
74,231
  
$
83,654
  
$
77,003
  
$
90,329
  
$
74,659
  
$
199,272
  
$
241,991
  
Immediate Annuity
   
10,966
   
33,576
   
23,216
   
150,179
   
32,476
   
21,194
   
25,606
   
67,758
   
79,276
 
Market Value Adjusted Annuity
   
5,128
   
74,729
   
83,175
   
62,201
   
26,483
   
33,065
   
23,032
   
163,032
   
82,580
 
Equity Indexed Annuity
                            
609
   
6,582
   
21,188
   
0
   
28,379
 
Total
  
$
77,818
  
$
171,622
  
$
180,622
  
$
296,034
  
$
136,571
  
$
151,170
  
$
144,485
  
$
430,062
  
$
432,226
  
                                                         
PRETAX OPERATING INCOME
                                                        
Variable Annuity
 
$
625
  
$
3,492
  
$
2,901
  
$
3,417
  
$
3,735
  
$
4,274
  
$
3,555
  
$
7,018
  
$
11,564
  
Fixed Annuity
   
2,188
   
1,483
   
1,107
   
1,254
   
329
   
3,871
   
1,372
   
4,778
   
5,572
 
Total
  
$
2,813
  
$
4,975
  
$
4,008
  
$
4,671
  
$
4,064
  
$
8,145
  
$
4,927
  
$
11,796
  
$
17,136
  
                                                         
DEPOSIT BALANCE
                                                        
VA Fixed Annuity
 
$
275,462
  
$
269,353
  
$
269,363
  
$
262,295
  
$
251,822
  
$
250,556
  
$
232,578
              
VA Separate Account Annuity
   
2,012,396
   
2,026,781
   
2,023,325
   
2,222,102
   
2,176,065
   
2,210,639
   
2,280,264
             
Sub-total
    
2,287,858
   
2,296,134
   
2,292,688
   
2,484,397
   
2,427,887
   
2,461,195
 
$
2,512,842
              
Fixed Annuity
   
2,877,159
   
2,930,544
   
2,986,179
   
3,173,862
   
3,195,043
   
3,202,752
   
3,217,052
             
Total
  
$
5,165,017
  
$
5,226,678
  
$
5,278,867
  
$
5,658,259
  
$
5,622,930
  
$
5,663,947
  
$
5,729,894
              
                                                         
 

PROTECTIVE LIFE CORPORATION
                          
Draft
  
Annuities, Stable Value Contracts, and Asset Protection
                          
10/27/2005
  
Quarterly Earnings Trends (Dollars in thousands)
                          
Page 9
  
(Unaudited)
                              
 
 
3RD QTR
 
4TH QTR
 
1ST QTR
 
2ND QTR
 
3RD QTR
 
9 MOS
 
9 MOS
 
 
 
2004
 
2004
 
2005
 
2005
 
2005
 
2004
 
2005
  
ANNUITIES
                              
                               
REVENUES
                              
Gross Premiums and Policy Fees
  
$
7,370
  
$
7,749
  
$
7,840
  
$
7,866
  
$
8,057
  
$
22,592
  
$
23,763
  
Reinsurance Ceded
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Net Premiums and Policy Fees
    
7,370
   
7,749
   
7,840
   
7,866
   
8,057
   
22,592
   
23,763
 
Net investment income
    
52,854
   
54,923
   
56,150
   
54,786
   
54,008
   
155,965
   
164,944
 
RIGL - Derivatives
    
-
   
-
   
(162
)
  
-
   
163
   
-
   
1
 
RIGL - All Other Investments
    
3,524
   
55
   
27,624
   
1,474
   
70
   
9,818
   
29,168
 
Other income
    
1,556
   
2,108
   
1,726
   
2,264
   
2,133
   
4,896
   
6,123
 
Total Revenues
    
65,304
   
64,835
   
93,178
   
66,390
   
64,431
   
193,271
   
223,999
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
46,526
   
46,243
   
48,080
   
48,687
   
44,596
   
137,028
   
141,363
 
Amortization of deferred policy acquisition costs
    
8,459
   
7,636
   
29,638
   
3,453
   
7,663
   
24,635
   
40,754
 
Amortization of goodwill
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other operating expenses
    
5,456
   
6,285
   
6,346
   
5,911
   
7,174
   
16,874
   
19,431
 
Total Benefits and Expenses
    
60,441
   
60,164
   
84,064
   
58,051
   
59,433
   
178,537
   
201,548
 
                                             
INCOME BEFORE INCOME TAX
   
4,863
   
4,671
   
9,114
   
8,339
   
4,998
   
14,734
   
22,451
 
                                             
Adjustments to Reconcile to Operating Income:
                                            
Less: RIGL - Derivatives
    
-
   
-
   
(162
)
  
-
   
163
   
-
   
1
 
Less: RIGL - All Other Investments
    
3,524
   
55
   
27,624
   
1,474
   
70
   
9,818
   
29,168
 
Add back: Related amortization of deferred policy acquisition costs
    
2,669
   
55
   
22,412
   
1,280
   
162
   
6,880
   
23,854
 
                                             
PRETAX OPERATING INCOME
  
$
4,008
  
$
4,671
  
$
4,064
  
$
8,145
  
$
4,927
  
$
11,796
  
$
17,136
  
                                             
STABLE VALUE CONTRACTS
                                            
                                             
REVENUES
                                            
Gross Premiums and Policy Fees
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
Reinsurance Ceded
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Net Premiums and Policy Fees
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Net investment income
    
66,472
   
71,013
   
73,875
   
76,081
   
79,118
   
197,171
   
229,074
 
RIGL - Derivatives
    
700
   
53
   
292
   
(310
)
  
416
   
1,106
   
398
 
RIGL - All Other Investments
    
6,292
   
279
   
327
   
2,395
   
884
   
11,787
   
3,606
 
Other income
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Total Revenues
    
73,464
   
71,345
   
74,494
   
78,166
   
80,418
   
210,064
   
233,078
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
50,301
   
54,378
   
57,169
   
60,084
   
62,747
   
150,790
   
180,000
 
Amortization of deferred policy acquisition costs
    
894
   
1,022
   
1,084
   
1,121
   
1,240
   
2,458
   
3,445
 
Amortization of goodwill
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other operating expenses
    
1,964
   
1,392
   
1,223
   
1,392
   
1,388
   
4,985
   
4,003
 
Total Benefits and Expenses
    
53,159
   
56,792
   
59,476
   
62,597
   
65,375
   
158,233
   
187,448
 
                                             
INCOME BEFORE INCOME TAX
    
20,305
   
14,553
   
15,018
   
15,569
   
15,043
   
51,831
   
45,630
 
                                             
Adjustments to Reconcile to Operating Income:
                                            
Less: RIGL-Derivatives
    
700
   
53
   
292
   
(310
)
  
416
   
1,106
   
398
 
Less: RIGL-All Other Investments
    
6,292
   
279
   
327
   
2,395
   
884
   
11,787
   
3,606
 
                                             
PRETAX OPERATING INCOME
  
$
13,313
  
$
14,221
  
$
14,399
  
$
13,484
  
$
13,743
  
$
38,938
  
$
41,626
  
                                             
ASSET PROTECTION
                                            
                                             
                                             
REVENUES
                                            
Gross Premiums and Policy Fees
  
$
115,967
  
$
101,271
  
$
110,375
  
$
109,846
  
$
106,685
  
$
337,808
  
$
326,906
  
Reinsurance Ceded
    
(64,865
)
  
(53,979
)
  
(62,302
)
  
(59,233
)
  
(60,661
)
  
(180,366
)
  
(182,196
)
Net Premiums and Policy Fees
    
51,102
   
47,292
   
48,073
   
50,613
   
46,024
   
157,442
   
144,710
 
Net investment income
    
7,922
   
7,976
   
7,600
   
8,602
   
8,075
   
22,963
   
24,277
 
Realized investment gains (losses)
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other income
    
10,266
   
9,268
   
9,405
   
12,732
   
13,624
   
30,412
   
35,761
 
Total Revenues
    
69,290
   
64,536
   
65,078
   
71,947
   
67,723
   
210,817
   
204,748
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
29,226
   
26,219
   
26,529
   
29,851
   
27,560
   
94,788
   
83,940
 
Amortization of deferred policy acquisition costs
    
20,042
   
14,753
   
17,546
   
17,669
   
18,052
   
57,520
   
53,267
 
Amortization of goodwill
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other operating expenses
    
14,597
   
18,884
   
14,831
   
18,135
   
16,009
   
44,110
   
48,975
 
Total Benefits and Expenses
    
63,865
   
59,856
   
58,906
   
65,655
   
61,621
   
196,418
   
186,182
 
                                             
INCOME BEFORE INCOME TAX
 
$
5,425
  
$
4,680
  
$
6,172
  
$
6,292
  
$
6,102
  
$
14,399
  
$
18,566
  
                                             

PROTECTIVE LIFE CORPORATION
                                  
Draft
  
Stable Value Contracts and Asset Protection Data
                                  
10/27/2005
  
(Dollars in thousands)
                                  
Page 10
  
(Unaudited)
                                      
                                       
                                       
                                       
                                       
   
2004
 
2004
  
2004
  
2004
  
2005
  
2005
  
2005
  
9 MOS
  
9 MOS
  
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
2004
  
2005
  
STABLE VALUE CONTRACTS
                                      
                                       
SALES
                                                        
GIC
  
$
-
  
$
39,000
  
$
15,000
  
$
5,000
  
$
24,050
  
$
5,000
  
$
20,500
  
$
54,000
  
$
49,550
  
GFA - Direct Institutional
    
-
   
960
   
-
   
66,060
   
-
   
-
   
-
   
960
   
0
 
GFA - Non-Registered
    
-
   
-
   
-
   
-
   
-
   
-
   
-
   
0
   
0
 
GFA - Registered - Institutional
    
300,000
   
-
   
625,000
   
-
   
350,000
   
350,000
   
300,000
   
925,000
   
1,000,000
 
GFA - Registered - Retail
    
221,500
   
68,250
   
135,520
   
106,290
   
31,845
   
96,795
   
20,790
   
425,270
   
149,430
 
Total
 
$
521,500
  
$
108,210
  
$
775,520
  
$
177,350
  
$
405,895
  
$
451,795
  
$
341,290
  
$
1,405,230
  
$
1,198,980
  
                                                         
                                                         
DEPOSIT BALANCE
                                                        
Quarter End Balance
  
$
4,923,231
  
$
4,921,166
  
$
5,143,367
  
$
5,562,997
  
$
5,670,355
  
$
5,846,120
  
$
5,900,740
              
Average Daily Balance
  
$
4,851,592
  
$
5,062,014
  
$
5,112,019
  
$
5,455,427
  
$
5,716,571
  
$
5,808,943
  
$
5,973,325
  
$
5,009,546
  
$
5,834,429
  
                                                         
OPERATING SPREAD
    
0.99
%
  
1.13
%
  
1.07
%
  
1.07
%
  
1.04
%
  
0.95
%
  
0.94
%
  
1.07
%
  
0.98
%
                                                         
 
                                       
   
2003
  
2004
  
2004
  
2004
  
2005
  
2005
  
2005
  
9 MOS
  
9 MOS
  
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
2004
  
2005
  
                                       
                                       
ASSET PROTECTION
                                      
                                       
SALES
                                     
Credit
  
$
51,246
  
$
59,035
  
$
59,543
  
$
47,761
  
$
50,106
  
$
51,421
  
$
56,749
  
$
169,824
  
$
158,276
  
Service Contracts
    
44,275
   
54,861
   
56,627
   
47,220
   
47,138
   
62,437
   
65,301
   
155,763
   
174,876
 
Other
    
8,152
   
8,940
   
8,883
   
13,780
   
9,075
   
13,567
   
14,812
   
25,975
   
37,454
 
Total
  
$
103,673
  
$
122,836
  
$
125,053
  
$
108,761
  
$
106,319
  
$
127,425
  
$
136,862
  
$
351,562
  
$
370,606
  
                                                         

 
PROTECTIVE LIFE CORPORATION
                          
Draft
  
Corporate & Other Segment - Quarterly Earnings Trends
                          
10/27/2005
  
(Dollars in thousands)
                          
Page 11
  
(Unaudited)
                              
   
3RD QTR
  
4TH QTR
  
1ST QTR
  
2ND QTR
  
3RD QTR
  
9 MOS
  
9 MOS
  
   
2004
  
2004
  
2005
  
2005
  
2005
  
2004
  
2005
  
                               
                               
REVENUES
                              
Gross Premiums and Policy Fees
  
$
11,919
  
$
11,373
  
$
11,030
  
$
10,494
  
$
10,555
  
$
37,003
  
$
32,079
  
Reinsurance Ceded
    
(191
)
  
(143
)
  
(75
)
  
(53
)
  
(18
)
  
(874
)
  
(146
)
Net Premiums and Policy Fees
    
11,728
   
11,230
   
10,955
   
10,441
   
10,537
   
36,129
   
31,933
 
Net investment income
    
34,356
   
21,730
   
32,461
   
24,265
   
43,471
   
81,784
   
100,197
 
RIGL - Derivatives
    
5,587
   
(572
)
  
(6,498
)
  
(25,711
)
  
7,083
   
19,004
   
(25,126
)
RIGL - All Other Investments
    
(1,635
)
  
4,086
   
(73
)
  
8,611
   
2,658
   
2,280
   
11,196
 
Other income
    
3,994
   
4,582
   
4,236
   
2,949
   
3,792
   
12,781
   
10,977
 
Total Revenues
    
54,030
   
41,056
   
41,081
   
20,555
   
67,541
   
151,978
   
129,177
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
12,470
   
16,427
   
12,474
   
11,236
   
17,031
   
42,624
   
40,741
 
Amortization of deferred policy acquisition costs
    
1,101
   
1,086
   
1,085
   
1,026
   
967
   
3,398
   
3,078
 
Amortization of goodwill
    
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other operating expenses
    
28,866
   
22,536
   
26,132
   
24,856
   
26,343
   
79,827
   
77,331
 
Total Benefits and Expenses
    
42,437
   
40,049
   
39,691
   
37,118
   
44,341
   
125,849
   
121,150
 
                                             
INCOME BEFORE INCOME TAX
   
11,593
   
1,007
   
1,390
   
(16,563
)
  
23,200
   
26,129
   
8,027
 
                                             
Adjustments to Reconcile to Operating Income:
                                            
Less: RIGL-Derivatives
    
5,587
   
(572
)
  
(6,498
)
  
(25,711
)
  
7,083
   
19,004
   
(25,126
)
Less: RIGL-All Other Investments, net of participating income
    
(1,635
)
  
4,086
   
(73
)
  
2,728
   
2,658
   
2,280
   
5,313
 
Add back: Derivative gains related to corporate debt and investments
    
4,684
   
4,309
   
3,684
   
2,960
   
2,777
   
14,913
   
9,421
 
                                             
PRETAX OPERATING INCOME
  
$
12,325
  
$
1,802
  
$
11,645
  
$
9,380
  
$
16,236
  
$
19,758
  
$
37,261