8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported) February 7, 2006

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.)

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

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

On February 7, 2006, Registrant issued a press release and made available supplemental financial information with respect to its financial results for the quarter ended December 31, 2005. 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 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.

Item 9.01 Financial Statements and Exhibits.

    (c)  Exhibits:

99.1 - Press Release Dated February 7, 2006

99.2 - Supplemental Financial Information Dated February 7, 2006

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

Senior Vice President, Controller

and Chief Accounting Officer

Dated:February 7, 2006

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

PROTECTIVE ANNOUNCES 2005 EARNINGS

BIRMINGHAM, Alabama (February 7, 2006) Protective Life Corporation (NYSE: PL) today reported results for 2005. Highlights include:

·   For the year, operating income increased 11.4% to a record $3.70 per diluted share, compared to $3.32 per share in 2004. Operating income for the fourth quarter was a record $1.02 per diluted share, compared to $0.80 per share in the fourth quarter of 2004. Operating income differs from the GAAP measure, net income, in that it excludes realized investment gains (losses) and related amortization. The tables below reconcile operating income to net income for the Company and its business segments.

·   Net income increased 4.8% to a record $3.46 per diluted share, compared to $3.30 per share in 2004. Net income for the fourth quarter was $0.96 per diluted share compared to $0.80 per share for the same period last year. Included in the current quarter’s net income were net realized investment losses of $0.06 per share, compared to no net realized investment gains or losses in the prior year.

·   Life Insurance sales were a record $294.7 million for 2005, an increase of 12.6% over the prior year. Life Insurance pretax operating income, which includes operating income from the Life Marketing and Acquisitions segments, was $66.8 million in the fourth quarter of 2005, an increase of 5.6% over the same period last year. Pretax operating income was $244.3 million in 2005, compared to $253.2 million in 2004.

·   Pretax operating income in the Annuities segment was $14.8 million in the current quarter compared to $4.7 million in the fourth quarter of 2004. Pretax operating income in 2005 was $31.9 million compared to $16.5 million in 2004. Annuity sales were $587.2 million in 2005.

·   The Stable Value Products segment reported pretax operating income of $13.2 million in the fourth quarter of 2005 compared to $14.2 million in the same period last year. Pretax operating income in 2005 was a record $54.8 million, an increase of 3.1% over the prior year and the segment ended the year with account balances of $6.1 billion, an increase of 8.9% over the prior year. The segment recorded sales of $1.3 billion under its registered funding agreement backed notes program in 2005.

·   The Asset Protection segment reported pretax operating income of $6.3 million in the fourth quarter of 2005 compared to $4.7 million in the fourth quarter of 2004 and $24.9 million for 2005, compared to $19.1 million in 2004, an increase of 30.5%.

·   As of December 31, 2005, the Company’s assets were $29.0 billion, compared to $27.2 billion at year-end 2004, an increase of 6.5%.

·   As of December 31, 2005, share-owners’ equity per share, excluding accumulated other comprehensive income, was $29.82 compared with $26.93 a year ago. Share-owners’ equity per share, including accumulated other comprehensive income, was $31.33 compared with $ 31.19 a year ago.

·   Operating income return on average equity for the twelve months ended December 31, 2005 was 13.4%.

·   Net income return on average equity for the twelve months ended December 31, 2005 was 12.5%.

·   At December 31, 2005, below investment gradesecurities were less than six percent of invested assets, and problem mortgage loans and foreclosed properties remained less than one percent of the commercial mortgage loan portfolio.

·   The Company also announced today, in a separate press release, the signing of an agreement to acquire from JPMorgan Chase the stock of five insurance companies.

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

“We are pleased to end 2005 on a positive note. Our emphasis in 2006 will be on the integration of the insurance companies to be acquired from JPMorgan Chase, the continued expansion of distribution in our life insurance and annuity lines, the development of efficient capital market solutions as a means to improve the competitiveness of our universal life products, building on the positive momentum achieved in 2005 in our Asset Protection segment and addressing the challenges presented by low interest rates and a flat yield curve. Overall, we believe that Protective is well positioned, tactically and strategically, to deal with the many challenges we face and to continue to produce solid and consistent results.”

For information relating to non-GAAP measures (operating income, share-owners’ equity per share excluding other comprehensive income, operating return on average equity, and net income return on average equity) in this press release, please refer to the disclosure at the end of this press release. All per share results used throughout this press release are presented on a diluted basis, unless otherwise noted.

FOURTH QUARTER AND FULL YEAR CONSOLIDATED RESULTS

($ in thousands; net of income tax)

	4Q2005			4Q2004			2005			2004
Operating income	$	72,595		$	57,608		$	263,545		$	236,250
Realized investment gains (losses) and
related amortization, net of certain
derivative gains (losses)		(4,033	)		(300	)		(16,978	)		14,131
Change in accounting principle		---			---			---			(15,801	)
Net Income	$	68,562		$	57,308		$	246,567		$	234,580

($ per share; net of income tax)

	4Q2005			4Q2004			2005			2004
Operating income	$	1.02		$	0.80		$	3.70		$	3.32
Realized investment gains (losses) and
related amortization
Investments		0.01			0.05			0.14			0.20
Derivatives		(0.07	)		(0.05	)		(0.38	)		---
Change in accounting principle		---			---			---			(0.22	)
Net Income	$	0.96		$	0.80		$	3.46		$	3.30

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)

	4Q2005		4Q2004		2005		2004
LIFE MARKETING	$	48,174	$	41,881	$	163,661	$	165,897
ACQUISITIONS		18,593		21,374		80,611		87,300
ANNUITIES		14,797		4,671		31,933		16,467
STABLE VALUE PRODUCTS		13,172		14,221		54,798		53,159
ASSET PROTECTION		6,335		4,680		24,901		19,079
CORPORATE AND OTHER		9,968		1,802		47,229		21,560
	$	111,039	$	88,629	$	403,133	$	363,462

In the Life Marketing, Acquisitions, and Asset Protection segments, pretax operating income equals segment income before income tax for all periods. In the Annuities, Stable Value Products, and Corporate and Other segments, operating income excludes realized investment gains (losses) and related amortization as set forth in the table below.

($ in thousands)	4Q2005			4Q2004		2005			2004
Operating income before
income tax	$	111,039		$	86,629	$	403,133		$	363,462
Realized investment gains (losses)
Stable Value Contracts		(20,069	)		332		(16,065	)		13,225
Annuities		1,811			55		30,980			9,873
Corporate and Other		15,077			3,514		(4,736	)		24,798
Less: settlements on certain interest
rate swaps
Corporate and Other		1,972			4,309		11,393			19,222
Related amortization of deferred policy
acquisition costs
Annuities		1,052			55		24,906			6,935
Income before income tax	$	104,834		$	88,166	$	377,013		$	385,201

Income before income tax (which, unlike operating income before income tax, does not exclude realized gains (losses) net of the related amortization of deferred policy acquisition costs (“DAC”) and participating income from real estate ventures) for the Annuities segment was $38.0 million for 2005 and $19.4 million for 2004 and $15.6 million for the fourth quarter of 2005 and $4.7 million in the fourth quarter of 2004. Income before income tax for the Stable Value segment was $38.7 million for 2005 compared to $66.4 million for 2004, and a loss of $6.9 million for the fourth quarter of 2005 compared to income of $14.6 million for the fourth quarter of 2004. Net realized investment losses in the Stable Value segment are attributable to realized losses as a result of rebalancing the segment’s investment portfolio. Income before income tax for the Corporate and Other segment was $31.1 million for 2005 and $27.1 million for 2004, and $23.1 million for the fourth quarter of 2005 and $1.0 million for the fourth quarter of 2004.

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.

SALES

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

($ in millions)

	4Q2005		4Q2004		2005		2004
LIFE MARKETING	$	76.6	$	74.2	$	294.7	$	261.7
ANNUITIES		155.0		296.0		587.2		726.1
STABLE VALUE PRODUCTS		213.3		177.4		1,412.3		1,582.6
ASSET PROTECTION		118.2		108.8		488.8		460.3

BUSINESS SEGMENT HIGHLIGHTS

LIFE MARKETING: Fourth quarter pretax operating income for the Life Marketing segment was $48.2 million compared to $41.9 million in the fourth quarter of 2004, an increase of 15.0%. For the full year, pretax operating income for the segment was $163.7 million compared to $165.9 million in 2004. The increase in the current quarter was primarily a result of increased sales and an increase in investment income as a result of the growth in related life insurance reserves. In the fourth quarter of 2005, mortality was favorable by approximately $3.3 million, approximately $0.4 million more favorable than the prior year’s quarter.

Life insurance sales in the fourth quarter of 2005 and for the full year of 2005 were $76.6 million and $294.7 million, respectively. Sales for the full year of 2005 increased 12.6% due to strong universal life sales and expanded distribution. During 2005, the independent agent distribution channel grew 35.1% and sales through stockbrokers and banks grew by 108.0%.

For the full year, mortality was favorable by approximately $4.5 million, approximately $2.8 million more favorable than 2004.

ACQUISITIONS: Pretax operating income was $18.6 million for the fourth quarter of 2005, as compared to $21.4 million in the fourth quarter of 2004. Pretax operating income for the full year was $80.6 million compared to $87.3 million in 2004. The decrease is primarily attributable to the run-off of the in-force block and lower investment income. For the full year, mortality was favorable by approximately $1.5 million, approximately $1.5 million less favorable than 2004.

ANNUITIES: Pretax operating income in the Annuities segment increased to $14.8 million in the fourth quarter of 2005, compared to $4.7 million in the fourth quarter of 2004. For the full year, pretax operating income increased to $31.9 million from $16.5 million in 2004. Included in the fourth quarter of 2005 and for the full year of 2005 is favorable unlocking of DAC of approximately $10.9 million and $15.9 million, respectively.

Total annuity sales were $155.0 million for the fourth quarter of 2005 compared to $296.0 million for the fourth quarter of 2004. For the full year, total annuity sales were $587.2 million compared to $726.1 million in 2004. Fixed annuity sales in the fourth quarter of 2005 were $84.8 million compared to $212.4 million in the prior year. Variable annuity sales in the fourth quarter of 2005 were $70.2 million compared to $83.7 million in the prior year. Year end account balances were $5.7 billion.

STABLE VALUE PRODUCTS: Pretax operating income in the Stable Value Products segment was $54.8 million for 2005 compared to $53.2 million in 2004. For the quarter, pretax operating income was $13.2 million compared to $14.2 million in the fourth quarter of 2004. Spreads in the fourth quarter of 2005 were 90 basis points compared to 107 basis points in the prior year’s quarter. For the full year, spreads were 96 basis points compared to 107 basis points in 2004. The decrease in spreads is attributable to higher interest expense. Account balances increased by $494.7 million in 2005 to $6.1 billion

ASSET PROTECTION: The Asset Protection segment had pretax operating income of $6.3 million in the fourth quarter of 2005 compared to $4.7 million in the fourth quarter of 2004. For the full year, pretax operating income increased 30.5% to $24.9 million in 2005 from $19.1 million in 2004. Included in 2004 earnings was a gain on the sale of an inactive charter of $1.2 million.

CORPORATE & OTHER: This segment consists primarily of net investment income on unallocated capital, interest expense on all debt, various other items not associated with the other segments and ancillary run-off lines of business. The segment reported pretax operating income of $10.0 million in the fourth quarter of 2005 compared to $1.8 million in the fourth quarter of 2004. The current quarter included a $3.8 million write-off of internally developed software costs. For the full year, pretax operating income was $47.2 million compared to $21.6 million in 2004. Total participating mortgage income increased to $35.1 million from $28.8 million in 2004. Investment income on unallocated capital was $88.2 million in 2005 compared to $67.5 million in 2004 primarily as a result of growth in available capital during the year.

CONFERENCE CALL

There will be a conference call for management to discuss the quarterly results with analysts and professional investors on February 8, 2006 at 9:00 a.m. Eastern. Analysts and professional investors may access this call by calling 1-800-895-1549 (international callers 1-785-424-1057 and giving the conference ID: Protective. A recording of the call will be available from 12:00 p.m. Eastern February 8 until midnight February 15. The recording may be accessed by calling 1-800-839-8708 (international callers 1-402-220-6077).

The public may listen to a simultaneous webcast of the call on the homepage of the Company's web site at www.protective.com. A recording of the webcast will also be available from 12:00 p.m. Eastern February 8 until midnight February 15.

Supplemental financial information is available on the Company’s web site at www.protective.com in the Analyst/Investor section under the financial report library titled Supplemental Financial Information.

INFORMATION RELATING TO NON-GAAP MEASURES

Throughout this press release, GAAP refers to accounting principles generally accepted in the United States of America. Consolidated and segment operating income are defined as income before income tax excluding net realized investment gains (losses) net of the related amortization of deferred policy acquisition costs (“DAC”) and participating income from real estate ventures, and the cumulative effect of change in accounting principle. Periodic settlements of derivatives associated with corporate debt and certain investments and annuity products are included in realized gains (losses) but are considered part of consolidated and segment operating income because the derivatives are used to mitigate risk in items affecting consolidated and segment operating income. Management believes that consolidated and segment operating income provides relevant and useful information to investors, as it represents the basis on which the performance of the Company’s business is internally assessed. Although the items excluded from consolidated and segment operating income may be significant components in understanding and assessing the Company’s overall financial performance, management believes that consolidated and segment operating income enhances an investor’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 GAAP, certain investments are recorded at their market values with the resulting unrealized gains (losses) affected by a related adjustment to DAC, net of income tax, reported as a component of share-owners’ equity. The market values of fixed maturities increase or decrease as interest rates change. 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.

RECONCILIATION OF SHARE-OWNERS’ EQUITY PER SHARE EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME PER SHARE

($ per common share outstanding as of December 31, 2005)

Total share-owners’ equity per share	$	31.33
Less: Accumulated other comprehensive income per share
Total share-owners’ equity per share		1.51
excluding accumulated other comprehensive income	$	29.82

Operating income return on average equity and net income return on average equity are measures used by management to evaluate the Company’s performance. Operating income return on average equity for the twelve months ended December 31, 2005 is calculated by dividing operating income for this period by the average ending balance of share-owners’ equity (excluding accumulated other comprehensive income) for the five most recent quarters. Net income return on average equity for the twelve months ended December 31, 2005, is calculated by dividing net income for this period by the average ending balance of share-owners’ equity (excluding accumulated other comprehensive income) for the five most recent quarters.

CALCULATION OF OPERATING INCOME RETURN ON AVERAGE EQUITY

ROLLING TWELVE MONTHS ENDED DECEMBER 31, 2005

($ in thousands)

Numerator:

	Three Months Ended
	March 31, 2005			June 30, 2005			Sept. 30, 2005			Dec. 31, 2005			Rolling Twelve Months Ended December 31, 2005
Net income	$	60,083		$	48,031		$	69,891			68,562		$	246,567
Net of:
Realized investment gains
(losses), net of income tax
Investments		18,121			4,288			2,347			1,704			26,460
Derivatives		(4,139	)		(16,913	)		4,980			(3,772	)		(19,844	)
Related amortization of
deferred policy
acquisition costs,
net of income tax benefit		(14,568	)		(832	)		(105	)		(684	)		(16,189	)
Add back:
Derivative gains related
to Corp. debt and investments
net of income tax		2,395			1,924			1,805			1,281			7,405
Operating Income	$	63,064		$	63,412		$	64,474		$	72,595		$	263,545

Denominator:

	Share-Owners’ Equity		Accumulated Other Comprehensive Income		Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
December 31, 2004	$	2,166,327	$	296,311	$	1,870,016
March 31, 2005		2,124,402		198,974		1,925,428
June 30, 2005		2,299,265		339,778		1,959,487
September 30, 2005		2,200,866		184,511		2,016,355
December 31, 2005		2,183,660		105,220		2,078,440
Total					$	9,849,726
Average					$	1,969,945
Operating Income Return on Average Equity						13.4	%

CALCULATION OF NET INCOME RETURN ON AVERAGE EQUITY

ROLLING TWELVE MONTHS ENDED DECEMBER 31, 2005

($ in thousands)

Numerator:

Net income - three months ended March 31, 2005	$	60,083
Net income - three months ended June 30, 2005		48,031
Net income - three months ended September 30, 2005		69,891
Net income - three months ended December 31, 2005		68,562
Net income - rolling twelve months ended December 31, 2005	$	246,567

Denominator:	Share-Owners’ Equity		Accumulated Other Comprehensive Income		Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
December 31, 2004		2,166,327		296,311		1,870,016
March 31, 2005		2,124,402		198,974		1,925,428
June 30, 2005		2,299,265		339,778		1,959,487
September 30, 2005		2,200,866		184,511		2,016,355
December 31, 2005		2,183,660		105,220		2,078,440
Total					$	9,849,726
Average					$	1,969,945
Net Income Return on Average Equity						12.5	%

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 known trends and uncertainties: the Company is exposed to the risks of natural disasters, malicious and terrorist acts that could adversely affect the Company’s operations; the Company operates in a mature, highly competitive industry, which could limit its ability to gain or maintain its position in the industry; a ratings downgrade could adversely affect the Company’s ability to compete; the Company’s policy claims fluctuate from period to period, and actual results could differ from its expectations; the Company’s results may be negatively affected should actual experience differ from management’s assumptions and estimates; the use of reinsurance introduces variability in the Company’s statements of income; the Company could be forced to sell investments at a loss to cover policyholder withdrawals; interest rate fluctuations could negatively affect the Company’s spread income or otherwise impact its business; equity market volatility could negatively impact the Company’s business; a deficiency in the Company’s systems could result in over or underpayments of amounts owed to or by the Company and/or errors in the Company’s critical assumptions or reported financial results; insurance companies are highly regulated and subject to numerous legal restrictions and regulations; the Company is exposed to potential risks from recent legislation requiring companies to evaluate their internal controls over financial reporting; 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; the financial services industry is sometimes the target of law enforcement investigations and the focus of increased regulatory scrutiny; the Company’s ability to maintain low unit costs is dependent upon the level of new sales and persistency of existing business; the Company’s investments are subject to market and credit risks; the Company may not realize its anticipated financial results from its acquisitions strategy; the Company is dependent on the performance of others; the Company’s reinsurers could fail to meet assumed obligations, increase rates, or be subject to adverse developments that could affect the Company; computer viruses or network security breaches could affect the data processing systems of the Company or its business partners; the Company’s ability to grow depends in large part upon the continued availability of capital; and new accounting rules or changes to existing accounting rules could negatively impact the Company. 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

Chip Wann

Vice President, Corporate Finance/Investor Relations

(205) 268-6461

EX-99.2

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 December 31, 2005. This document is dated February 7, 2006. 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 derivatives associated with corporate debt and certain investments and annuity products are included in realized gains (losses) but are considered part of operating income because the derivatives 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													2/2/2006
(Dollars in Thousands)													Page 1
(Unaudited)
	4TH QTR		1ST QTR		2ND QTR		3RD QTR		4TH QTR		12 MOS		12 MOS
	2004		2005		2005		2005		2005		2004		2005
Pretax Operating Income *
Life Marketing	$	41,881	$	39,141	$	38,332	$	38,014	$	48,174	$	165,897	$	163,661
Acquisitions		21,374		21,035		21,473		19,510		18,593		87,300		80,611
Annuities		4,671		4,064		8,145		4,927		14,797		16,467		31,933
Stable Value Contracts		14,221		14,399		13,484		13,743		13,172		53,159		54,798
Asset Protection		4,680		6,172		6,292		6,102		6,335		19,079		24,901
Corporate & Other		1,802		11,645		9,380		16,236		9,968		21,560		47,229
Total Pretax Operating Income	$	88,629	$	96,456	$	97,106	$	98,532	$	111,039	$	363,462	$	403,133
Balance Sheet Data
Total GAAP Assets	$	27,211,378	$	27,863,074	$	28,551,847	$	28,592,528	$	28,969,234
Share Owners' Equity	$	2,166,327	$	2,124,402	$	2,299,265	$	2,200,866	$	2,183,660
Share Owners' Equity (excluding accumulated other comprehensive inome) **	$	1,870,016	$	1,925,428	$	1,959,487	$	2,016,355	$	2,078,440
Stock Data
Closing Price	$	42.69	$	39.30	$	42.22	$	41.18	$	43.77	$	42.69	$	43.77
Average Shares Outstanding
Basic		70,431,763		70,474,337		70,517,476		70,582,016		70,672,518		70,299,470		70,562,186
Diluted		71,221,826		71,273,760		71,279,363		71,350,044		71,496,555		71,064,539		71,350,541
* "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																			2/2/2006
(Dollars in thousands)																			Page 2
(Unaudited)
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR			12 MOS			12 MOS
	2004			2005			2005			2005			2005			2004			2005
REVENUES
Gross Premiums and Policy Fees	$	476,709		$	468,514		$	484,643		$	486,660		$	515,963		$	1,821,094		$	1,955,780
Reinsurance Ceded		(327,817	)		(282,152	)		(312,511	)		(282,919	)		(349,275	)		(1,125,646	)		(1,226,857	)
Net Premiums and Policy Fees		148,892			186,362			172,132			203,741			166,688			695,448			728,923
Net investment income		274,439			287,953			282,374			306,885			303,290			1,084,217			1,180,502
RIGL - Derivatives		(519	)		(6,368	)		(26,021	)		7,662			(6,154	)		19,591			(30,881	)
RIGL - All Other Investments		4,420			27,878			12,480			3,612			5,423			28,305			49,393
Other income		42,443			44,284			45,505			47,377			44,101			161,014			181,267
Total Revenues		469,675			540,109			486,470			569,277			513,348			1,988,575			2,109,204
BENEFITS & EXPENSES
Benefits and settlement expenses		272,197			300,434			291,636			333,365			327,932			1,130,437			1,253,367
Amortization of deferred policy acquisition costs		42,908			74,251			51,867			57,950			14,435			200,130			198,503
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		53,419			60,456			55,911			55,513			51,805			223,091			223,685
Interest on indebtedness		12,985			13,098			13,614			15,582			14,342			49,716			56,636
Total Benefits and Expenses		381,509			448,239			413,028			462,410			408,514			1,603,374			1,732,191
INCOME BEFORE INCOME TAX		88,166			91,870			73,442			106,867			104,834			385,201			377,013
Income tax expense		30,858			31,787			25,411			36,976			36,272			134,820			130,446
Change in Acct Principle		(0	)		0			0			0			0			(15,801	)		-
NET INCOME	$	57,308		$	60,083		$	48,031		$	69,891		$	68,562		$	234,580		$	246,567
PER SHARE DATA FOR QUARTER
Operating income-diluted *	$	0.80		$	0.88		$	0.90		$	0.90		$	1.02
RIGL - Derivatives net of gains related to corp debt, investments and annuities		(0.05	)		(0.09	)		(0.27	)		0.05			(0.07	)
RIGL - All Other Investments, net of participating income		0.05			0.05			0.05			0.03			0.01
Change in Accounting Principle		0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	0.80		$	0.84		$	0.68		$	0.98		$	0.96
Average shares outstanding-diluted		71,221,826			71,273,760			71,279,363			71,350,044			71,496,555
Dividends paid	$	0.175		$	0.175		$	0.195		$	0.195		$	0.195
PER SHARE DATA FOR YTD
Operating income-diluted *	$	3.32		$	0.88		$	1.78		$	2.68		$	3.70		$	3.32		$	3.70
RIGL - Derivatives net of gains related to corp debt, investments and annuities		0.00			(0.09	)		(0.36	)		(0.31	)		(0.38	)		-			(0.38	)
RIGL - All Other Investments, net of participating income		0.20			0.05			0.10			0.13			0.14			0.20			0.14
Change in Accounting Principle		(0.22	)		0.00			0.00			0.00			0.00			(0.22	)		-
Net income-diluted	$	3.30		$	0.84		$	1.52		$	2.50		$	3.46		$	3.30		$	3.46
Average shares outstanding-diluted		71,064,539			71,273,760			71,276,577			71,301,335			71,350,541			71,064,539			71,350,541
Dividends paid	$	0.685		$	0.175		$	0.370		$	0.565		$	0.760		$	0.685		$	0.760
* "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									2/2/2006
(Dollars in thousands)									Page 3
(Unaudited)
	4TH QTR		1ST QTR		2ND QTR		3RD QTR		4TH QTR
	2004		2005		2005		2005		2005
ASSETS
Fixed maturities	$	14,412,605	$	15,263,694	$	15,686,373	$	15,824,420	$	15,472,386
Equity securities		58,941		59,605		115,758		115,570		121,012
Mortgage loans		3,005,418		3,042,584		3,124,877		3,101,823		3,287,745
Investment real estate		107,246		104,986		91,981		92,340		72,932
Policy loans		482,780		472,345		466,701		463,514		458,825
Other long-term investments		377,724		342,840		307,031		286,497		279,676
Long-term investments		18,444,714		19,286,054		19,792,721		19,884,164		19,692,576
Short-term investments		1,059,557		816,335		626,795		606,165		776,139
Total investments		19,504,271		20,102,389		20,419,516		20,490,329		20,468,715
Cash		130,596		53,673		98,316		63,565		83,670
Accrued investment income		196,076		202,008		192,454		201,037		189,038
Accounts and premiums receivable		44,364		50,271		348,688		58,883		84,321
Reinsurance receivable		2,750,260		2,835,979		2,883,648		2,862,674		3,020,685
Deferred policy acquisition costs		1,821,972		1,913,803		1,866,815		2,032,784		2,171,988
Goodwill		46,619		46,619		49,423		49,423		49,423
Property and equipment, net		45,454		44,520		46,878		47,304		47,010
Other assets		145,813		139,725		134,441		140,375		140,124
Income Tax Receivable		0		0		0		52,923		85,807
Assets Related to Separate Accounts
Variable Annuity		2,308,858		2,256,920		2,286,141		2,352,287		2,377,124
Variable Universal Life		217,095		217,167		225,527		240,944		251,329
Other		0		0		0		0		0
TOTAL ASSETS	$	27,211,378	$	27,863,074	$	28,551,847	$	28,592,528	$	28,969,234

PROTECTIVE LIFE CORPORATION													Draft
GAAP Consolidated Balance Sheets													2/2/2006
(Dollars in thousands)													Page 4
(Unaudited)
LIABILITIES AND SHARE-OWNERS' EQUITY
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR
LIABILITIES	2004			2005			2005			2005			2005
Policy liabilities and accruals
Future policy benefits and claims	$	10,014,106		$	10,222,011		$	10,499,494		$	10,797,527		$	11,155,074
Unearned premiums		666,560			673,841			679,916			671,971			740,071
Stable value product deposits		5,562,997			5,670,355			5,846,120			5,900,740			6,057,721
Annuity deposits		3,463,477			3,433,293			3,447,394			3,430,038			3,388,005
Other policyholders' funds		151,660			151,572			149,247			149,838			147,921
Securities sold under repurchase agreements		0			0			31,550			142,850			0
Other liabilities		1,062,706			1,556,736			1,482,085			1,043,260			954,716
Accrued income taxes		13,195			29,213			21,701			0			0
Deferred income taxes		312,544			256,453			311,146			287,976			319,558
Non-recourse funding obligations		0			0			0			100,000			125,000
Debt		451,433			451,424			469,317			471,808			482,532
Liabilities related to variable interest entities		482,434			481,921			465,078			464,747			448,093
Subordinated debt securities		324,743			324,743			324,743			324,743			324,743
		0			0			0			0			0
Minority interest - subsidiaries		13,243			13,023			13,123			12,933			13,687
Liabilities related to separate accounts
Variable annuity		2,308,858			2,256,920			2,286,141			2,352,287			2,377,124
Variable universal life		217,095			217,167			225,527			240,944			251,329
Other		0			0			0			0			0
TOTAL LIABILITIES	$	25,045,051		$	25,738,672		$	26,252,582		$	26,391,662		$	26,785,574
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		426,927			433,467			433,040			433,363			440,475
Treasury stock		(13,632	)		(13,041	)		(13,011	)		(12,768	)		(12,765	)
Stock held in trust		0			0			0			0			0
Unallocated ESOP shares		(1,989	)		(1,610	)		(1,610	)		(1,610	)		(1,610	)
Retained earnings		1,422,084			1,469,986			1,504,442			1,560,744			1,615,714
Accumulated other comprehensive income		296,311			198,974			339,778			184,511			105,220
Total Share-owners' Equity		2,166,327			2,124,402			2,299,265			2,200,866			2,183,660
TOTAL LIABILITIES AND EQUITY	$	27,211,378		$	27,863,074		$	28,551,847		$	28,592,528		$	28,969,234
SHARE-OWNERS' EQUITY PER SHARE
Total Share-owners' Equity	$	31.19		$	30.52		$	33.02		$	31.58		$	31.33
Accumulated other comprehensive income		4.26			2.86			4.88			2.65			1.51
Excluding accumulated other comprehensive income *	$	26.93		$	27.66		$	28.14		$	28.93		$	29.82
Total Share-owners' Equity	$	2,166,327		$	2,124,402		$	2,299,265		$	2,200,866		$	2,183,660
Accumulated other comprehensive income		296,311			198,974			339,778			184,511			105,220
Share-owners' Equity (excluding accumulated other comprehensive income) *	$	1,870,016		$	1,925,428		$	1,959,487		$	2,016,355		$	2,078,440
Common shares outstanding		69,449,889			69,615,285			69,627,244			69,692,925			69,694,049
Treasury Stock shares		3,802,071			3,636,675			3,624,716			3,559,035			3,557,911
* "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																			2/2/2006
(Dollars in thousands)																			Page 5
(Unaudited)
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR			12 MOS			12 MOS
	2004			2005			2005			2005			2005			2004			2005
CALCULATION OF NET INCOME PER SHARE
Net income	$	57,308		$	60,083		$	48,031		$	69,891		$	68,562		$	234,580		$	246,567
Average shares outstanding-basic		70,431,763			70,474,337			70,517,476			70,582,016			70,672,518			70,299,470			70,562,186
Average shares outstanding-diluted		71,221,826			71,273,760			71,279,363			71,350,044			71,496,555			71,064,539			71,350,541
Net income per share-basic	$	0.81		$	0.85		$	0.68		$	0.99		$	0.97		$	3.34		$	3.49
Net income per share-diluted	$	0.80		$	0.84		$	0.68		$	0.98		$	0.96		$	3.30		$	3.46
Income from continuing operations	$	57,308		$	60,083		$	48,031		$	69,891		$	68,562		$	250,381		$	246,567
EPS (basic)	$	0.81		$	0.85		$	0.68		$	0.99		$	0.97		$	3.56		$	3.49
EPS (diluted)	$	0.80		$	0.84		$	0.68		$	0.98		$	0.96		$	3.52		$	3.46
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
RIGL - Derivatives	$	(519	)	$	(6,368	)	$	(26,021	)	$	7,662		$	(6,154	)	$	19,591		$	(30,881	)
Derivative Gains related to Corporate Debt and Investments		(4,309	)		(3,684	)		(2,960	)		(2,777	)		(1,972	)		(19,222	)		(11,393	)
Derivative Gains related to Annuities		-			-			-			-			351			-			351
RIGL - All Other Investments, net of participating income		4,420			27,878			6,597			3,612			2,622			28,305			40,709
Related amortization of DAC		(55	)		(22,412	)		(1,280	)		(162	)		(1,052	)		(6,935	)		(24,906	)
		(463	)		(4,586	)		(23,664	)		8,335			(6,205	)		21,739			(26,120	)
Tax effect		162			1,605			8,283			(2,918	)		2,172			(7,609	)		9,142
	$	(301	)	$	(2,981	)	$	(15,381	)	$	5,417		$	(4,033	)	$	14,130		$	(16,978	)
RIGL - Derivatives per share-diluted	$	(0.05	)	$	(0.09	)	$	(0.27	)	$	0.05		$	(0.07	)	$	-		$	(0.38	)
RIGL - All Other Investments per share-diluted	$	0.05		$	0.05		$	0.05		$	0.03		$	0.01		$	0.20		$	0.14
OPERATING INCOME PER SHARE *
Net income per share-diluted	$	0.80		$	0.84		$	0.68		$	0.98		$	0.96		$	3.30		$	3.46
RIGL - Derivatives per share-diluted		(0.05	)		(0.09	)		(0.27	)		0.05			(0.07	)		-			(0.38	)
RIGL - All Other Investments, net of participating income per share-diluted		0.05			0.05			0.05			0.03			0.01			0.20			0.14
Change in accounting principle		-			-			-			-			-			(0.22	)		-
Operating income per share-diluted	$	0.80		$	0.88		$	0.90		$	0.90		$	1.02		$	3.32		$	3.70
NET OPERATING INCOME *
Net income	$	57,308		$	60,083		$	48,031		$	69,891		$	68,562		$	234,580		$	246,567
RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities		(3,138	)		(6,534	)		(18,837	)		3,175			(5,054	)		240			(27,250	)
RIGL - All Other Investments net of tax, amortization, and participating income		2,838			3,553			3,456			2,242			1,021			13,891			10,272
Change in accounting principle		(0.00	)		-			-			-			-			(15,801	)		-
Net operating income	$	57,608		$	63,064		$	63,412		$	64,474		$	72,595		$	236,250		$	263,545
PRETAX OPERATING INCOME **
Income before income tax	$	88,166		$	91,870		$	73,442		$	106,867		$	104,834		$	385,201		$	377,013
RIGL - Derivatives		(519	)		(6,368	)		(26,021	)		7,662			(6,154	)		19,591			(30,881	)
Derivative Gains related to corporate debt, investments, and annuities		(4,309	)		(3,684	)		(2,960	)		(2,777	)		(1,621	)		(19,222	)		(11,042	)
RIGL - All Other Investments, net of participating income		4,420			27,878			6,597			3,612			2,622			28,305			40,709
Related amortization of DAC		(55	)		(22,412	)		(1,280	)		(162	)		(1,052	)		(6,935	)		(24,906	)
Pretax operating income	$	88,629		$	96,456		$	97,106		$	98,532		$	111,039		$	363,462		$	403,133
* "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													2/2/2006
(Dollars in millions)													Page 6
(Unaudited)
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR
	2004			2005			2005			2005			2005
Total Portfolio
Fixed Income	$	14,412.6		$	15,263.7		$	15,686.4		$	15,824.4		$	15,472.4
Mortgage Loans		3,005.4			3,042.6			3,124.9			3,101.8			3,287.7
Real Estate		107.3			105.0			92.0			92.3			72.9
Equities		58.9			59.6			115.7			115.6			121.0
Policy Loans		482.8			472.4			466.7			463.5			458.8
Short Term Investments		1,059.6			816.3			626.8			606.2			776.1
Other Long Term Investments		377.7			222.9			186.0			286.5			279.7
Total Invested Assets	$	19,504.3		$	19,982.5		$	20,298.5		$	20,490.3		$	20,468.7
Fixed Income
Corporate Bonds	$	7,466.0		$	7,209.4		$	7,597.3		$	7,489.8		$	6,821.4
Mortgage Backed Securities		5,070.2			6,201.5			6,094.3			6,348.2			6,050.8
US Govt Bonds		86.0			94.7			88.5			88.3			843.0
Public Utilities		1,745.5			1,705.6			1,852.7			1,844.4			1,704.3
States, Municipals and Political Subdivisions		30.4			49.6			52.2			50.9			50.2
Preferred Securities		3.6			2.7			1.2			2.6			2.5
Convertibles and Bonds with Warrants		10.9			0.2			0.2			0.2			0.2
Total Fixed Income Portfolio	$	14,412.6		$	15,263.7		$	15,686.4		$	15,824.4		$	15,472.4
Fixed Income - Quality
AAA		35.9	%		40.9	%		40.0	%		40.9	%		44.7	%
AA		6.2	%		6.0	%		3.7	%		4.4	%		3.6	%
A		22.2	%		21.0	%		17.8	%		17.0	%		15.0	%
BBB		28.9	%		25.8	%		31.1	%		30.5	%		29.6	%
BB or Less		6.8	%		6.3	%		7.4	%		7.2	%		7.1	%
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		70.7	%		69.6	%		69.2	%		68.6	%		68.3	%
Apartments		10.2	%		11.7	%		12.5	%		12.3	%		11.9	%
Office Buildings		9.2	%		9.4	%		9.2	%		9.8	%		10.3	%
Warehouses		8.4	%		8.3	%		7.9	%		8.2	%		8.1	%
Miscellaneous		1.5	%		1.0	%		1.2	%		1.1	%		1.4	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Problem Mortgage Loans
60 Days Past Due	$	1.9		$	1.9		$	1.9		$	1.9		$	3.1
90 Days Past Due		1.9			8.2			2.6			5.4			5.1
Renegotiated Loans		5.6			5.4			8.3			5.5			5.6
Foreclosed Real Estate		1.4			0.0			4.3			5.0			8.4
	$	10.8		$	15.5		$	17.1		$	17.8		$	22.2

PROTECTIVE LIFE CORPORATION																			Draft
Life Marketing and Acquisitions - Quarterly Earnings Trends																			2/2/2006
(Dollars in thousands)																			Page 7
(Unaudited)
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR			12 MOS			12 MOS
	2004			2005			2005			2005			2005			2004			2005
LIFE MARKETING
REVENUES
Gross Premiums and Policy Fees	$	286,020		$	273,769		$	290,333		$	297,098		$	329,423		$	1,026,889		$	1,190,623
Reinsurance Ceded		(253,121	)		(199,746	)		(235,968	)		(204,572	)		(261,769	)		(818,207	)		(902,055	)
Net Premiums and Policy Fees		32,899			74,023			54,365			92,526			67,654			208,682			288,568
Net investment income		61,339			61,153			62,541			66,847			71,318			238,193			261,859
Realized investment gains (losses)		-			-			-			-			-			-			-
Other income		26,053			28,556			27,107			27,577			27,962			94,695			111,202
Total Revenues		120,291			163,732			144,013			186,950			166,934			541,570			661,629
BENEFITS & EXPENSES
Benefits and settlement expenses		57,505			89,783			72,994			112,119			117,552			274,584			392,448
Amortization of deferred policy acquisition costs		12,140			17,827			21,413			23,831			(7,383	)		58,970			55,688
Amortization of goodwill		-			-			-			-			-			-			-
Other operating expenses		8,765			16,981			11,274			12,986			8,591			42,119			49,832
Total Benefits and Expenses		78,410			124,591			105,681			148,936			118,760			375,673			497,968
INCOME BEFORE INCOME TAX	$	41,881		$	39,141		$	38,332		$	38,014		$	48,174		$	165,897		$	163,661
ACQUISITIONS
REVENUES
Gross Premiums and Policy Fees	$	70,281		$	65,500		$	66,104		$	64,265		$	65,134		$	276,394		$	261,003
Reinsurance Ceded		(20,559	)		(20,029	)		(17,257	)		(17,668	)		(19,245	)		(72,062	)		(74,199	)
Net Premiums and Policy Fees		49,722			45,471			48,847			46,597			45,889			204,332			186,804
Net investment income		57,458			56,714			56,099			55,366			55,022			232,499			223,201
Realized investment gains (losses)		-			-			-			-			-			-			-
Other income		432			361			453			251			540			2,272			1,605
Total Revenues		107,612			102,546			105,399			102,214			101,451			439,103			411,610
BENEFITS & EXPENSES
Benefits and settlement expenses		71,425			66,399			68,784			69,312			69,131			287,356			273,626
Amortization of deferred policy acquisition costs		6,271			7,071			7,185			6,197			6,619			28,652			27,072
Amortization of goodwill		-			-			-			-			-			-			-
Other operating expenses		8,542			8,041			7,957			7,195			7,108			35,795			30,301
Total Benefits and Expenses		86,238			81,511			83,926			82,704			82,858			351,803			330,999
INCOME BEFORE INCOME TAX	$	21,374		$	21,035		$	21,473		$	19,510		$	18,593		$	87,300		$	80,611

PROTECTIVE LIFE CORPORATION													Draft
Life Marketing and Annuities Data													2/2/2006
(Dollars in thousands)													Page 8
(Unaudited)
	2004		2005		2005		2005		2005		12 MOS		12 MOS
	4TH QTR		1ST QTR		2ND QTR		3RD QTR		4TH QTR		2004		2005
LIFE MARKETING
SALES BY PRODUCT
Term	$	41,794	$	34,508	$	26,861	$	27,975	$	34,538	$	171,883	$	123,882
U/L		31,212		32,747		41,639		50,308		40,674		84,539		165,368
VUL		1,146		1,138		1,197		1,698		1,432		5,236		5,465
Total	$	74,152	$	68,393	$	69,697	$	79,981	$	76,644	$	261,658	$	294,715
SALES BY DISTRIBUTION
Brokerage general agents	$	40,975	$	36,172	$	29,495	$	36,072	$	38,836	$	161,145	$	140,575
Independent agents		18,004		17,309		18,815		21,788		17,652		55,929		75,564
Stockbrokers/banks		11,854		12,627		17,936		19,741		15,663		31,711		65,967
Direct Response & BOLI		3,319		2,285		3,451		2,380		4,493		12,873		12,609
Total	$	74,152	$	68,393	$	69,697	$	79,981	$	76,644	$	261,658	$	294,715
ANNUITIES
SALES
Variable Annuity	$	83,654	$	77,003	$	90,329	$	74,659	$	70,220	$	282,926	$	312,211
Immediate Annuity		150,179		32,476		21,194		25,606		32,653		217,937		111,929
Market Value Adjusted Annuity		62,201		26,483		33,065		23,032		31,644		225,233		114,224
Equity Indexed Annuity				609		6,582		21,188		20,506		0		48,885
Total	$	296,034	$	136,571	$	151,170	$	144,485	$	155,023	$	726,096	$	587,249
PRETAX OPERATING INCOME
Variable Annuity	$	3,417	$	3,735	$	4,274	$	3,555	$	14,444	$	10,435	$	26,008
Fixed Annuity		1,254		329		3,871		1,372		705		6,032		6,277
Total	$	4,671	$	4,064	$	8,145	$	4,927	$	15,149	$	16,467	$	32,285
DEPOSIT BALANCE
VA Fixed Annuity	$	262,295	$	251,822	$	250,556	$	232,578	$	226,437
VA Separate Account Annuity		2,222,102		2,176,065		2,210,639		2,280,264		2,310,117
Sub-total		2,484,397		2,427,887		2,461,195		2,512,842	$	2,536,554
Fixed Annuity		3,173,862		3,195,043		3,202,752		3,217,052		3,207,784
Total	$	5,658,259	$	5,622,930	$	5,663,947	$	5,729,894	$	5,744,338

PROTECTIVE LIFE CORPORATION																			Draft
Annuities, Stable Value Contracts, and Asset Protection																			2/2/2006
Quarterly Earnings Trends (Dollars in thousands)																			Page 9
(Unaudited)
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR			12 MOS			12 MOS
	2004			2005			2005			2005			2005			2004			2005
ANNUITIES
REVENUES
Gross Premiums and Policy Fees	$	7,749		$	7,840		$	7,866		$	8,057		$	8,047		$	30,341		$	31,810
Reinsurance Ceded		-			-			-			-			-			-			-
Net Premiums and Policy Fees		7,749			7,840			7,866			8,057			8,047			30,341			31,810
Net investment income		54,923			56,150			54,786			54,008			53,756			210,888			218,700
RIGL - Derivatives		-			(162	)		-			163			(352	)		-			(351	)
RIGL - All Other Investments		55			27,624			1,474			70			1,812			9,873			30,980
Other income		2,108			1,726			2,264			2,133			1,649			7,004			7,772
Total Revenues		64,835			93,178			66,390			64,431			64,912			258,106			288,911
BENEFITS & EXPENSES
Benefits and settlement expenses		46,243			48,080			48,687			44,596			46,428			183,271			187,791
Amortization of deferred policy acquisition costs		7,636			29,638			3,453			7,663			(3,242	)		32,271			37,512
Amortization of goodwill		-			-			-			-			-			-			-
Other operating expenses		6,285			6,346			5,911			7,174			6,170			23,159			25,601
Total Benefits and Expenses		60,164			84,064			58,051			59,433			49,356			238,701			250,904
INCOME BEFORE INCOME TAX		4,671			9,114			8,339			4,998			15,556			19,405			38,007
Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives		-			(162	)		-			163			(352	)		-			(351	)
Add back: Derivative gains related to equity indexed annuities		-			-			-			-			(351	)		-			(351	)
Less: RIGL - All Other Investments		55			27,624			1,474			70			1,812			9,873			30,980
Add back: Related amortization of deferred policy acquisition costs		55			22,412			1,280			162			1,052			6,935			24,906
PRETAX OPERATING INCOME	$	4,671		$	4,064		$	8,145		$	4,927		$	14,797		$	16,467		$	31,933
STABLE VALUE CONTRACTS
REVENUES
Gross Premiums and Policy Fees	$	-		$	-		$	-		$	-		$	-		$	-		$	-
Reinsurance Ceded		-			-			-			-			-			-			-
Net Premiums and Policy Fees		-			-			-			-			-			-			-
Net investment income		71,013			73,875			76,081			79,118			81,641			268,184			310,715
RIGL - Derivatives		53			292			(310	)		416			(147	)		1,159			251
RIGL - All Other Investments		279			327			2,395			884			(19,922	)		12,066			(16,316	)
Other income		-			-			-			-			-			-			-
Total Revenues		71,345			74,494			78,166			80,418			61,572			281,409			294,650
BENEFITS & EXPENSES
Benefits and settlement expenses		54,378			57,169			60,084			62,747			66,134			205,168			246,134
Amortization of deferred policy acquisition costs		1,022			1,084			1,121			1,240			1,249			3,480			4,694
Amortization of goodwill		-			-			-			-			-			-			-
Other operating expenses		1,392			1,223			1,392			1,388			1,086			6,377			5,089
Total Benefits and Expenses		56,792			59,476			62,597			65,375			68,469			215,025			255,917
INCOME BEFORE INCOME TAX		14,553			15,018			15,569			15,043			(6,897	)		66,384			38,733
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives		53			292			(310	)		416			(147	)		1,159			251
Less: RIGL-All Other Investments		279			327			2,395			884			(19,922	)		12,066			(16,316	)
PRETAX OPERATING INCOME	$	14,221		$	14,399		$	13,484		$	13,743		$	13,172		$	53,159		$	54,798
ASSET PROTECTION
REVENUES
Gross Premiums and Policy Fees	$	101,271		$	110,375		$	109,846		$	106,685		$	102,997		$	439,079		$	429,903
Reinsurance Ceded		(53,979	)		(62,302	)		(59,233	)		(60,661	)		(68,234	)		(234,345	)		(250,430	)
Net Premiums and Policy Fees		47,292			48,073			50,613			46,024			34,763			204,734			179,473
Net investment income		7,976			7,600			8,602			8,075			8,112			30,939			32,389
Realized investment gains (losses)		-			-			-			-			-			-			-
Other income		9,268			9,405			12,732			13,624			10,475			39,680			46,236
Total Revenues		64,536			65,078			71,947			67,723			53,350			275,353			258,098
BENEFITS & EXPENSES
Benefits and settlement expenses		26,219			26,529			29,851			27,560			17,537			121,007			101,477
Amortization of deferred policy acquisition costs		14,753			17,546			17,669			18,052			16,207			72,273			69,474
Amortization of goodwill		-			-			-			-			-			-			-
Other operating expenses		18,884			14,831			18,135			16,009			13,271			62,994			62,246
Total Benefits and Expenses		59,856			58,906			65,655			61,621			47,015			256,274			233,197
INCOME BEFORE INCOME TAX	$	4,680		$	6,172		$	6,292		$	6,102		$	6,335		$	19,079		$	24,901

PROTECTIVE LIFE CORPORATION																			Draft
Stable Value Contracts and Asset Protection Data																			2/2/2006
(Dollars in thousands)																			Page 10
(Unaudited)
	2004			2005			2005			2005			2005			12 MOS			12 MOS
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR			2004			2005
STABLE VALUE CONTRACTS
SALES
GIC	$	5,000		$	24,050		$	5,000		$	20,500		$	46,800		$	59,000		$	96,350
GFA - Direct Institutional		66,060			-			-			-			100,000			67,020			100,000
GFA - Non-Registered		-			-			-			-			-			0			0
GFA - Registered - Institutional		-			350,000			350,000			300,000			35,000			925,000			1,035,000
GFA - Registered - Retail		106,290			31,845			96,795			20,790			31,501			531,560			180,931
Total	$	177,350		$	405,895		$	451,795		$	341,290		$	213,301		$	1,582,580		$	1,412,281
DEPOSIT BALANCE
Quarter End Balance	$	5,562,997		$	5,670,355		$	5,846,120		$	5,900,740		$	6,057,721
Average Daily Balance	$	5,455,427		$	5,716,571		$	5,808,943		$	5,973,325		$	5,985,502		$	5,112,170		$	5,872,635
OPERATING SPREAD		1.07	%		1.04	%		0.95	%		0.94	%		0.90	%		1.07	%		0.96	%

	2004		2005		2005		2005		2005		12MOS		12MOS
	4TH QTR		1ST QTR		2ND QTR		3RD QTR		4TH QTR		2004		2005
ASSET PROTECTION
SALES
Credit	$	47,761	$	50,106	$	51,421	$	56,749	$	50,602	$	217,585	$	208,878
Service Contracts		47,220		47,138		62,437		65,301		53,780		202,983		228,656
Other		13,780		9,075		13,567		14,812		13,776		39,755		51,230
Total	$	108,761	$	106,319	$	127,425	$	136,862	$	118,158	$	460,323	$	488,764

PROTECTIVE LIFE CORPORATION																			Draft
Corporate & Other Segment - Quarterly Earnings Trends																			2/2/2006
(Dollars in thousands)																			Page 11
(Unaudited)
	4TH QTR			1ST QTR			2ND QTR			3RD QTR			4TH QTR			12 MOS			12 MOS
	2004			2005			2005			2005			2005			2004			2005
REVENUES
Gross Premiums and Policy Fees	$	11,373		$	11,030		$	10,494		$	10,555		$	10,362		$	48,376		$	42,441
Reinsurance Ceded		(143	)		(75	)		(53	)		(18	)		(27	)		(1,017	)		(173	)
Net Premiums and Policy Fees		11,230			10,955			10,441			10,537			10,335			47,359			42,268
Net investment income		21,730			32,461			24,265			43,471			33,441			103,514			133,638
RIGL - Derivatives		(572	)		(6,498	)		(25,711	)		7,083			(5,655	)		18,432			(30,781	)
RIGL - All Other Investments		4,086			(73	)		8,611			2,658			23,533			6,366			34,729
Other income		4,582			4,236			2,949			3,792			3,475			17,363			14,452
Total Revenues		41,056			41,081			20,555			67,541			65,129			193,034			194,306
BENEFITS & EXPENSES
Benefits and settlement expenses		16,427			12,474			11,236			17,031			11,150			59,051			51,891
Amortization of deferred policy acquisition costs		1,086			1,085			1,026			967			985			4,484			4,063
Amortization of goodwill		-			-			-			-			-			-			-
Other operating expenses		22,536			26,132			24,856			26,343			29,921			102,363			107,252
Total Benefits and Expenses		40,049			39,691			37,118			44,341			42,056			165,898			163,206
INCOME BEFORE INCOME TAX		1,007			1,390			(16,563	)		23,200			23,073			27,136			31,100
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives		(572	)		(6,498	)		(25,711	)		7,083			(5,655	)		18,432			(30,781	)
Less: RIGL-All Other Investments, net of participating income		4,086			(73	)		2,728			2,658			20,732			6,366			26,045
Add back: Derivative gains related to corporate debt and investments		4,309			3,684			2,960			2,777			1,972			19,222			11,393
PRETAX OPERATING INCOME	$	1,802		$	11,645		$	9,380		$	16,236		$	9,968		$	21,560		$	47,229