EX-99.2 3 exh99_2.htm EXHIBIT 99.2 SUPPLEMENTAL FINANCIAL INFORMATION Exhibit 99.2 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 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