EX-99.2 3 ex99_2.htm SUPPLEMENTAL FINANCIAL INFORMATION
PROTECTIVE LIFE CORPORATION
                              
Quarterly Financial Highlights
                          
4/27/2006
  
(Dollars in Thousands)
                          
Page 1
  
(Unaudited)
                              
                               
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
3 MOS
  
3 MOS
  
   
2005
  
2005
  
2005
  
2005
  
2006
  
2005
  
2006
  
Pretax Operating Income *
                                            
                                             
                                             
Life Marketing
  
$
39,141
  
$
38,332
  
$
38,014
  
$
48,174
  
$
40,781
  
$
39,141
  
$
40,781
  
Acquisitions
    
21,035
   
21,473
   
19,510
   
18,593
   
19,906
   
21,035
   
19,906
 
Annuities
    
4,064
   
8,145
   
4,927
   
14,797
   
4,741
   
4,064
   
4,741
 
Stable Value Contracts
    
14,399
   
13,484
   
13,743
   
13,172
   
12,344
   
14,399
   
12,344
 
Asset Protection
    
6,172
   
6,292
   
6,102
   
6,335
   
8,738
   
6,172
   
8,738
 
Corporate & Other
    
11,645
   
9,380
   
16,236
   
9,968
   
11,663
   
11,645
   
11,663
 
Total Pretax Operating Income
  
$
96,456
  
$
97,106
  
$
98,532
  
$
111,039
  
$
98,173
  
$
96,456
  
$
98,173
  
                                             
Balance Sheet Data
                                            
                                             
Total GAAP Assets
  
$
27,863,074
  
$
28,551,847
  
$
28,592,528
  
$
28,966,993
  
$
28,952,024
              
Share Owners' Equity
  
$
2,124,402
  
$
2,299,265
  
$
2,200,866
  
$
2,183,660
  
$
2,104,270
              
Share Owners' Equity (excluding accumulated other comprehensive income) **
  
$
1,925,428
  
$
1,959,487
  
$
2,016,355
  
$
2,078,440
  
$
2,139,512
              
                                             
Stock Data
                                            
                                             
Closing Price
  
$
39.30
  
$
42.22
  
$
41.18
  
$
43.77
  
$
49.74
  
$
39.30
  
$
49.74
  
Average Shares Outstanding
                                            
Basic
    
70,474,337
   
70,517,476
   
70,582,016
   
70,672,518
   
70,752,202
   
70,474,337
   
70,752,202
 
Diluted
    
71,273,760
   
71,279,363
   
71,350,044
   
71,496,555
   
71,559,255
   
71,273,760
   
71,559,255
 
                                             
                                             
* "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
                              
GAAP Consolidated Statements Of Income
                          
4/27/2006
  
(Dollars in thousands)
                          
Page 2
  
(Unaudited)
                              
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
3 MOS
  
3 MOS
  
   
2005
  
2005
  
2005
  
2005
  
2006
  
2005
  
2006
  
REVENUES
                              
Gross Premiums and Policy Fees
  
$
468,514
  
$
484,643
  
$
486,660
  
$
515,963
  
$
507,694
  
$
468,514
  
$
507,694
  
Reinsurance Ceded
    
(282,152
)
  
(312,511
)
  
(282,919
)
  
(349,275
)
  
(280,670
)
  
(282,152
)
  
(280,670
)
Net Premiums and Policy Fees
    
186,362
   
172,132
   
203,741
   
166,688
   
227,024
   
186,362
   
227,024
 
Net investment income
    
287,953
   
282,374
   
306,885
   
303,290
   
299,065
   
287,953
   
299,065
 
RIGL - Derivatives
    
(6,368
)
  
(26,021
)
  
7,662
   
(6,154
)
  
13,337
   
(6,368
)
  
13,337
 
RIGL - All Other Investments
    
27,878
   
12,480
   
3,612
   
5,423
   
5,153
   
27,878
   
5,153
 
Other income
    
44,284
   
45,505
   
47,377
   
44,101
   
48,536
   
44,284
   
48,536
 
Total Revenues
    
540,109
   
486,470
   
569,277
   
513,348
   
593,115
   
540,109
   
593,115
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
300,434
   
291,636
   
333,365
   
327,932
   
349,608
   
300,434
   
349,608
 
Amortization of deferred policy acquisition costs
    
74,251
   
51,867
   
57,950
   
14,435
   
50,031
   
74,251
   
50,031
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
60,456
   
55,911
   
55,513
   
51,805
   
67,188
   
60,456
   
67,188
 
Interest on indebtedness
    
13,098
   
13,614
   
15,582
   
14,342
   
15,631
   
13,098
   
15,631
 
Total Benefits and Expenses
    
448,239
   
413,028
   
462,410
   
408,514
   
482,458
   
448,239
   
482,458
 
                                             
INCOME BEFORE INCOME TAX
    
91,870
   
73,442
   
106,867
   
104,834
   
110,657
   
91,870
   
110,657
 
Income tax expense
    
31,787
   
25,411
   
36,976
   
36,272
   
38,520
   
31,787
   
38,520
 
Change in Acct Principle
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
NET INCOME
  
$
60,083
  
$
48,031
  
$
69,891
  
$
68,562
  
$
72,137
  
$
60,083
  
$
72,137
  
                                             
PER SHARE DATA FOR QUARTER
                                            
Operating income-diluted *
  
$
0.88
  
$
0.90
  
$
0.90
  
$
1.02
  
$
0.90
              
RIGL - Derivatives net of gains related to corp debt, investments and annuities
    
(0.09
)
  
(0.27
)
  
0.05
   
(0.07
)
  
0.11
             
RIGL - All Other Investments, net of participating income
    
0.05
   
0.05
   
0.03
   
0.01
   
0.00
             
Change in Accounting Principle
    
0.00
   
0.00
   
0.00
   
0.00
   
0.00
             
Net income-diluted
  
$
0.84
  
$
0.68
  
$
0.98
  
$
0.96
  
$
1.01
              
Average shares outstanding-diluted
    
71,273,760
   
71,279,363
   
71,350,044
   
71,496,555
   
71,559,255
             
Dividends paid
  
$
0.175
  
$
0.195
  
$
0.195
  
$
0.195
  
$
0.195
              
PER SHARE DATA FOR YTD
                                            
Operating income-diluted *
  
$
0.88
  
$
1.78
  
$
2.68
  
$
3.70
  
$
0.90
  
$
0.88
  
$
0.90
  
RIGL - Derivatives net of gains related to corp debt, investments and annuities
    
(0.09
)
  
(0.36
)
  
(0.31
)
  
(0.38
)
  
0.11
   
(0.09
)
  
0.11
 
RIGL - All Other Investments, net of participating income
    
0.05
   
0.10
   
0.13
   
0.14
   
0.00
   
0.05
   
0.00
 
Change in Accounting Principle
    
0.00
   
0.00
   
0.00
   
0.00
   
0.00
   
0.00
   
0.00
 
Net income-diluted
  
$
0.84
  
$
1.52
  
$
2.50
  
$
3.46
  
$
1.01
  
$
0.84
  
$
1.01
  
Average shares outstanding-diluted
    
71,273,760
   
71,276,577
   
71,301,335
   
71,350,541
   
71,559,255
   
71,273,760
   
71,559,255
 
Dividends paid
  
$
0.175
  
$
0.370
  
$
0.565
  
$
0.760
  
$
0.195
  
$
0.175
  
$
0.195
  
                                             
                                             
* "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
                      
GAAP Consolidated Balance Sheets
                  
4/27/2006
  
(Dollars in thousands)
                  
Page 3
  
(Unaudited)
                      
                       
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
   
2005
  
2005
  
2005
  
2005
  
2006
  
ASSETS
                      
Fixed maturities
  
$
15,263,694
  
$
15,686,373
  
$
15,824,420
  
$
15,472,386
  
$
14,965,927
  
Equity securities
    
59,605
   
115,758
   
115,570
   
121,012
   
123,536
 
Mortgage loans
    
3,042,584
   
3,124,877
   
3,101,823
   
3,287,745
   
3,411,337
 
Investment real estate
    
104,986
   
91,981
   
92,340
   
72,932
   
63,858
 
Policy loans
    
472,345
   
466,701
   
463,514
   
458,825
   
456,147
 
Other long-term investments
    
342,840
   
307,031
   
286,497
   
279,676
   
269,345
 
Long-term investments
    
19,286,054
   
19,792,721
   
19,884,164
   
19,692,576
   
19,290,150
 
Short-term investments
    
816,335
   
626,795
   
606,165
   
776,139
   
833,567
 
Total investments
    
20,102,389
   
20,419,516
   
20,490,329
   
20,468,715
   
20,123,717
 
Cash
    
53,673
   
98,316
   
63,565
   
83,670
   
37,118
 
Accrued investment income
    
202,008
   
192,454
   
201,037
   
189,038
   
198,708
 
Accounts and premiums receivable
    
50,271
   
348,688
   
58,883
   
82,080
   
59,236
 
Reinsurance receivable
    
2,835,979
   
2,883,648
   
2,862,674
   
3,020,685
   
3,146,444
 
Deferred policy acquisition costs
   
1,913,803
   
1,866,815
   
2,032,784
   
2,171,988
   
2,332,639
 
Goodwill
    
46,619
   
49,423
   
49,423
   
49,423
   
49,423
 
Property and equipment, net
    
44,520
   
46,878
   
47,304
   
47,010
   
45,941
 
Other assets
    
139,725
   
134,441
   
140,375
   
140,124
   
144,855
 
Income Tax Receivable
    
0
   
0
   
52,923
   
85,807
   
96,443
  
Assets Related to Separate Accounts
                                
Variable Annuity
    
2,256,920
   
2,286,141
   
2,352,287
   
2,377,124
   
2,447,968
 
Variable Universal Life
    
217,167
   
225,527
   
240,944
   
251,329
   
269,532
 
Other
    
0
   
0
   
0
   
0
   
0
 
                                 
TOTAL ASSETS
  
$
27,863,074
  
$
28,551,847
  
$
28,592,528
  
$
28,966,993
  
$
28,952,024
  
                                 

 

PROTECTIVE LIFE CORPORATION
                      
GAAP Consolidated Balance Sheets
                  
4/27/2006
  
(Dollars in thousands)
                  
Page 4
  
(Unaudited)
                      
                       
                       
LIABILITIES AND SHARE-OWNERS' EQUITY
                      
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
LIABILITIES
  
2005
  
2005
  
2005
  
2005
  
2006
  
Policy liabilities and accruals
                      
Future policy benefits and claims
  
$
10,222,011
  
$
10,499,494
  
$
10,797,527
  
$
11,155,074
  
$
11,447,516
  
Unearned premiums
    
673,841
   
679,916
   
671,971
   
740,071
   
767,074
 
Stable value product deposits
    
5,670,355
   
5,846,120
   
5,900,740
   
6,057,721
   
5,873,092
 
Annuity deposits
    
3,433,293
   
3,447,394
   
3,430,038
   
3,388,005
   
3,330,897
 
Other policyholders' funds
    
151,572
   
149,247
   
149,838
   
147,921
   
147,470
 
Securities sold under repurchase agreements
    
0
   
31,550
   
142,850
   
0
   
0
 
Other liabilities
    
1,556,736
   
1,482,085
   
1,043,260
   
954,716
   
881,146
  
Accrued income taxes
    
29,213
   
21,701
   
0
   
0
   
0
  
Deferred income taxes
    
256,453
   
311,146
   
287,976
   
317,317
   
280,219
  
Non-recourse funding obligations
    
0
   
0
   
100,000
   
125,000
   
150,000
 
Debt
    
451,424
   
469,317
   
471,808
   
482,532
   
473,032
 
Liabilities related to variable interest entities
    
481,921
   
465,078
   
464,747
   
448,093
   
442,383
 
Subordinated debt securities
    
324,743
   
324,743
   
324,743
   
324,743
   
324,743
 
Minority interest - subsidiaries
    
13,023
   
13,123
   
12,933
   
13,687
   
12,682
 
Liabilities related to separate accounts
                                
Variable annuity
    
2,256,920
   
2,286,141
   
2,352,287
   
2,377,124
   
2,447,968
 
Variable universal life
    
217,167
   
225,527
   
240,944
   
251,329
   
269,532
 
Other
    
0
   
0
   
0
   
0
   
0
 
TOTAL LIABILITIES
   
25,738,672
   
26,252,582
   
26,391,662
   
26,783,333
   
26,847,754
  
                                 
                                 
SHARE-OWNERS' EQUITY
                                
Common stock
    
36,626
   
36,626
   
36,626
   
36,626
   
36,626
 
Additional paid-in capital
    
433,467
   
433,040
   
433,363
   
440,475
   
441,964
 
Treasury stock
    
(13,041
)
  
(13,011
)
  
(12,768
)
  
(12,765
)
  
(12,079
)
Unallocated ESOP shares
    
(1,610
)
  
(1,610
)
  
(1,610
)
  
(1,610
)
  
(1,231
)
Retained earnings
    
1,469,986
   
1,504,442
   
1,560,744
   
1,615,714
   
1,674,232
 
Accumulated other comprehensive income
    
198,974
   
339,778
   
184,511
   
105,220
   
(35,242
)
                                 
                                 
Total Share-owners' Equity
    
2,124,402
   
2,299,265
   
2,200,866
   
2,183,660
   
2,104,270
  
                                 
TOTAL LIABILITIES AND EQUITY
 
$
27,863,074
  
$
28,551,847
  
$
28,592,528
  
$
28,966,993
  
$
28,952,024
  
                                 
SHARE-OWNERS' EQUITY PER SHARE
                                
Total Share-owners' Equity
 
$
30.52
  
$
33.02
  
$
31.58
  
$
31.33
  
$
30.11
  
Accumulated other comprehensive income
    
2.86
   
4.88
   
2.65
   
1.51
   
(0.50
)
Excluding accumulated other comprehensive income *
 
$
27.66
  
$
28.14
  
$
28.93
  
$
29.82
  
$
30.61
  
                                 
Total Share-owners' Equity
  
$
2,124,402
  
$
2,299,265
  
$
2,200,866
  
$
2,183,660
  
$
2,104,270
  
Accumulated other comprehensive income
    
198,974
   
339,778
   
184,511
   
105,220
   
(35,242
)
Share-owners' Equity (excluding accumulated other comprehensive income) *
  
$
1,925,428
  
$
1,959,487
  
$
2,016,355
  
$
2,078,440
  
$
2,139,512
  
                                 
Common shares outstanding
    
69,615,285
   
69,627,244
   
69,692,925
   
69,694,049
   
69,885,344
 
Treasury Stock shares
    
3,636,675
   
3,624,716
   
3,559,035
   
3,557,911
   
3,366,616
 
                                 
* "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
                              
Calculation of Operating Earnings Per Share
                          
4/27/2006
  
(Dollars in thousands)
                          
Page 5
  
(Unaudited)
                              
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
3 MOS
  
3 MOS
  
   
2005
  
2005
  
2005
  
2005
  
2006
  
2005
  
2006
  
                               
CALCULATION OF NET INCOME PER SHARE
                              
                               
Net income
  
$
60,083
  
$
48,031
  
$
69,891
  
$
68,562
  
$
72,137
  
$
60,083
  
$
72,137
  
                                             
Average shares outstanding-basic
    
70,474,337
   
70,517,476
   
70,582,016
   
70,672,518
   
70,752,202
   
70,474,337
   
70,752,202
 
Average shares outstanding-diluted
    
71,273,760
   
71,279,363
   
71,350,044
   
71,496,555
   
71,559,255
   
71,273,760
   
71,559,255
 
                                             
Net income per share-basic
  
$
0.85
  
$
0.68
  
$
0.99
  
$
0.97
  
$
1.02
  
$
0.85
  
$
1.02
  
Net income per share-diluted
  
$
0.84
  
$
0.68
  
$
0.98
  
$
0.96
  
$
1.01
  
$
0.84
  
$
1.01
  
                                             
Income from continuing operations
  
$
60,083
  
$
48,031
  
$
69,891
  
$
68,562
  
$
72,137
  
$
60,083
  
$
72,137
  
EPS (basic)
  
$
0.85
  
$
0.68
  
$
0.99
  
$
0.97
  
$
1.02
  
$
0.85
  
$
1.02
  
EPS (diluted)
  
$
0.84
  
$
0.68
  
$
0.98
  
$
0.96
  
$
1.01
  
$
0.84
  
$
1.01
  
                                             
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
                                            
                                             
RIGL - Derivatives
  
$
(6,368
)
$
(26,021
)
$
7,662
  
$
(6,154
)
$
13,337
  
$
(6,368
)
$
13,337
  
Derivative Gains related to Corporate Debt and Investments
    
(3,684
)
  
(2,960
)
  
(2,777
)
  
(1,972
)
  
(1,331
)
  
(3,684
)
  
(1,331
)
Derivative Gains related to Annuities
    
0
   
0
   
0
   
351
   
651
   
0
   
651
 
RIGL - All Other Investments, net of participating income
    
27,878
   
6,597
   
3,612
   
2,622
   
(173
)
  
27,878
   
(173
)
Related amortization of DAC
    
(22,412
)
  
(1,280
)
  
(162
)
  
(1,052
)
  
0
   
(22,412
)
  
0
 
     
(4,586
)
  
(23,664
)
  
8,335
   
(6,205
)
  
12,484
   
(4,586
)
  
12,484
 
Tax effect
   
1,605
   
8,283
   
(2,918
)
  
2,172
   
(4,369
)
  
1,605
   
(4,369
)
   
$
(2,981
)
$
(15,381
)
$
5,417
  
$
(4,033
)
$
8,115
  
$
(2,981
)
$
8,115
  
                                             
RIGL - Derivatives per share-diluted
 
$
(0.09
)
$
(0.27
)
$
0.05
  
$
(0.07
)
$
0.11
  
$
(0.09
)
$
0.11
  
RIGL - All Other Investments per share-diluted
 
$
0.05
  
$
0.05
  
$
0.03
  
$
0.01
  
$
0
  
$
0.05
  
$
-
  
                                             
                                             
                                             
OPERATING INCOME PER SHARE *
                                            
                                             
Net income per share-diluted
 
$
0.84
  
$
0.68
  
$
0.98
  
$
0.96
  
$
1.01
  
$
0.84
  
$
1.01
  
RIGL - Derivatives per share-diluted
    
(0.09
)
  
(0.27
)
  
0.05
   
(0.07
)
  
0.11
   
(0.09
)
  
0.11
 
RIGL - All Other Investments, net of participating income per share-diluted
    
0.05
   
0.05
   
0.03
   
0.01
   
0.00
   
0.05
   
0.00
 
Change in accounting principle
    
0.00
   
0.00
   
0.00
   
0.00
   
0.00
   
0.00
   
0.00
 
Operating income per share-diluted
 
$
0.88
  
$
0.90
  
$
0.90
  
$
1.02
  
$
0.90
  
$
0.88
  
$
0.90
  
                                             
                                             
NET OPERATING INCOME *
                                            
                                             
Net income
  
$
60,083
  
$
48,031
  
$
69,891
  
$
68,562
  
$
72,137
  
$
60,083
  
$
72,137
  
RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities
    
(6,534
)
  
(18,837
)
  
3,175
   
(5,054
)
  
8,227
   
(6,534
)
  
8,227
 
RIGL - All Other Investments net of tax, amortization, and participating income
    
3,553
   
3,456
   
2,242
   
1,021
   
(113
)
  
3,553
   
(113
)
Change in accounting principle
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Net operating income
  
$
63,064
  
$
63,412
  
$
64,474
  
$
72,595
  
$
64,023
  
$
63,064
  
$
64,023
  
                                             
                                             
PRETAX OPERATING INCOME **
                                            
                                             
Income before income tax
  
$
91,870
  
$
73,442
  
$
106,867
  
$
104,834
  
$
110,657
  
$
91,870
  
$
110,657
  
RIGL - Derivatives
    
(6,368
)
  
(26,021
)
  
7,662
   
(6,154
)
  
13,337
   
(6,368
)
  
13,337
 
Derivative gains related to corporate debt, investments & annuities
    
(3,684
)
  
(2,960
)
  
(2,777
)
  
(1,621
)
  
(680
)
  
(3,684
)
  
(680
)
RIGL - All Other Investments, net of participating income
    
27,878
   
6,597
   
3,612
   
2,622
   
(173
)
  
27,878
   
(173
)
Related amortization of DAC
    
(22,412
)
  
(1,280
)
  
(162
)
  
(1,052
)
  
0
   
(22,412
)
  
0
 
Pretax operating income
  
$
96,456
  
$
97,106
  
$
98,532
  
$
111,039
  
$
98,173
  
$
96,456
  
$
98,173
  
                                             
                                             
* "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
                      
Invested Asset Summary
                  
4/27/2006
  
(Dollars in millions)
                  
Page 6
 
(Unaudited)
                      
                       
   
1ST QTR
 
2ND QTR
 
3RD QTR
 
4TH QTR
 
1ST QTR
 
   
2005
 
2005
 
2005
 
2005
 
2006
 
Total Portfolio
                      
                       
Fixed Income
  
$
15,263.7
  
$
15,686.4
  
$
15,824.4
  
$
15,472.4
  
$
14,965.9
  
Mortgage Loans
    
3,042.6
    
3,124.9
    
3,101.8
    
3,287.7
    
3,411.3
  
Real Estate
    
105.0
    
92.0
    
92.3
    
72.9
    
63.9
  
Equities
    
59.6
    
115.7
    
115.6
    
121.0
    
123.5
  
Policy Loans
    
472.4
    
466.7
    
463.5
    
458.8
    
456.1
  
Short Term Investments
    
816.3
    
626.8
    
606.2
    
776.1
    
833.6
  
Other Long Term Investments
    
222.9
    
186.0
    
286.5
    
279.7
    
269.3
  
Total Invested Assets
  
$
19,982.5
  
$
20,298.5
  
$
20,490.3
  
$
20,468.7
  
$
20,123.7
  
                                 
Fixed Income
                                
                                 
Corporate Bonds
  
$
7,209.4
  
$
7,597.3
  
$
7,489.8
  
$
6,821.4
  
$
7,054.1
  
Mortgage Backed Securities
    
6,201.5
    
6,094.3
    
6,348.2
    
6,050.8
    
6,050.9
  
US Govt Bonds
    
94.7
    
88.5
    
88.3
    
843.0
    
199.7
  
Public Utilities
    
1,705.6
    
1,852.7
    
1,844.4
    
1,704.3
    
1,615.9
  
States, Municipals and Political Subdivisions
    
49.6
    
52.2
    
50.9
    
50.2
    
45.0
  
Preferred Securities
    
2.7
    
1.2
    
2.6
    
2.5
    
0.1
  
Convertibles and Bonds with Warrants
    
0.2
    
0.2
    
0.2
    
0.2
    
0.2
  
Total Fixed Income Portfolio
  
$
15,263.7
  
$
15,686.4
  
$
15,824.4
  
$
15,472.4
  
$
14,965.9
  
                                 
Fixed Income - Quality
                                
                                 
AAA
   
40.9
%
  
40.0
%
  
40.9
%
  
44.7
%
  
41.9
%
AA
    
6.0
%
  
3.7
%
  
4.4
%
  
3.6
%
  
3.6
%
A
    
21.0
%
  
17.8
%
  
17.0
%
  
15.0
%
  
16.7
%
BBB
    
25.8
%
  
31.1
%
  
30.5
%
  
29.6
%
  
30.3
%
BB or Less
    
6.3
%
  
7.4
%
  
7.2
%
  
7.1
%
  
7.5
%
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
    
69.6
%
  
69.2
%
  
68.6
%
  
68.3
%
  
68.2
%
Apartments
    
11.7
%
  
12.5
%
  
12.3
%
  
11.9
%
  
10.9
%
Office Buildings
    
9.4
%
  
9.2
%
  
9.8
%
  
10.3
%
  
10.7
%
Warehouses
    
8.3
%
  
7.9
%
  
8.2
%
  
8.1
%
  
8.0
%
Miscellaneous
    
1.0
%
  
1.2
%
  
1.1
%
  
1.4
%
  
2.2
%
     
100.0
%
  
100.0
%
  
100.0
%
  
100.0
%
  
100.0
%
                                 
Problem Mortgage Loans
                                
                                 
60 Days Past Due
  
$
1.9
  
$
1.9
  
$
1.9
  
$
3.1
  
$
0.0
  
90 Days Past Due
    
8.2
    
2.6
    
5.4
    
5.1
    
5.4
  
Renegotiated Loans
    
5.4
    
8.3
    
5.5
    
5.6
    
5.6
  
Foreclosed Real Estate
    
0.0
    
4.3
    
5.0
    
8.4
    
1.6
  
   
$
15.5
  
$
17.1
  
$
17.8
  
$
22.2
  
$
12.6
  



PROTECTIVE LIFE CORPORATION
                              
Life Marketing and Acquisitions - Quarterly Earnings Trends
                          
4/27/2006
  
(Dollars in thousands)
                          
Page 7
 
(Unaudited)
                              
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
3 MOS
  
3 MOS
  
   
2005
  
2005
  
2005
  
2005
  
2006
  
2005
  
2006
  
LIFE MARKETING
                              
                               
REVENUES
                              
Gross Premiums and Policy Fees
  
$
273,769
  
$
290,333
  
$
297,098
  
$
329,423
  
$
325,364
  
$
273,769
  
$
325,364
  
Reinsurance Ceded
    
(199,746
)
  
(235,968
)
  
(204,572
)
  
(261,769
)
  
(208,631
)
  
(199,746
)
  
(208,631
)
Net Premiums and Policy Fees
    
74,023
   
54,365
   
92,526
   
67,654
   
116,733
   
74,023
   
116,733
 
Net investment income
    
61,153
   
62,541
   
66,847
   
71,318
   
72,853
   
61,153
   
72,853
 
Realized investment gains (losses)
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other income
    
28,556
   
27,107
   
27,577
   
27,962
   
29,339
   
28,556
   
29,339
 
Total Revenues
    
163,732
   
144,013
   
186,950
   
166,934
   
218,925
   
163,732
   
218,925
 
 
                                            
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
89,783
   
72,994
   
112,119
   
117,552
   
135,899
   
89,783
   
135,899
 
Amortization of deferred policy acquisition costs
    
17,827
   
21,413
   
23,831
   
(7,383
)
  
19,466
   
17,827
   
19,466
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
16,981
   
11,274
   
12,986
   
8,591
   
22,779
   
16,981
   
22,779
 
Total Benefits and Expenses
    
124,591
   
105,681
   
148,936
   
118,760
   
178,144
   
124,591
   
178,144
 
                                             
INCOME BEFORE INCOME TAX
 
$
39,141
  
$
38,332
  
$
38,014
  
$
48,174
  
$
40,781
  
$
39,141
  
$
40,781
  
                                             
                                             
ACQUISITIONS
                                            
                                             
REVENUES
                                            
Gross Premiums and Policy Fees
  
$
65,500
  
$
66,104
  
$
64,265
  
$
65,134
  
$
62,986
  
$
65,500
  
$
62,986
  
Reinsurance Ceded
    
(20,029
)
  
(17,257
)
  
(17,668
)
  
(19,245
)
  
(16,642
)
  
(20,029
)
  
(16,642
)
Net Premiums and Policy Fees
    
45,471
   
48,847
   
46,597
   
45,889
   
46,344
   
45,471
   
46,344
 
Net investment income
    
56,714
   
56,099
   
55,366
   
55,022
   
54,490
   
56,714
   
54,490
 
Realized investment gains (losses)
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other income
    
361
   
453
   
251
   
540
   
617
   
361
   
617
 
Total Revenues
    
102,546
   
105,399
   
102,214
   
101,451
   
101,451
   
102,546
   
101,451
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
66,399
   
68,784
   
69,312
   
69,131
   
67,454
   
66,399
   
67,454
 
Amortization of deferred policy acquisition costs
    
7,071
   
7,185
   
6,197
   
6,619
   
6,335
   
7,071
   
6,335
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
8,041
   
7,957
   
7,195
   
7,108
   
7,756
   
8,041
   
7,756
 
Total Benefits and Expenses
    
81,511
   
83,926
   
82,704
   
82,858
   
81,545
   
81,511
   
81,545
 
                                             
INCOME BEFORE INCOME TAX
 
$
21,035
  
$
21,473
  
$
19,510
  
$
18,593
  
$
19,906
  
$
21,035
  
$
19,906
  
                                             
 

PROTECTIVE LIFE CORPORATION
                              
Life Marketing and Annuities Data
                          
4/27/2006
  
(Dollars in thousands)
                          
Page 8
  
(Unaudited)
                              
                               
                               
   
2005
  
2005
  
2005
  
2005
  
2006
  
3 MOS
  
3 MOS
  
   
1ST QTR
 
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
2005
  
2006
  
LIFE MARKETING
                              
                               
                               
SALES BY PRODUCT
                              
Term
  
$
34,508
  
$
26,861
  
$
27,975
  
$
34,538
  
$
37,476
  
$
34,508
  
$
37,476
  
U/L
    
32,747
   
41,639
   
50,308
   
40,674
   
31,488
   
32,747
   
31,488
 
VUL
    
1,138
   
1,197
   
1,698
   
1,432
   
1,285
   
1,138
   
1,285
 
Total
  
$
68,393
  
$
69,697
  
$
79,981
  
$
76,644
  
$
70,249
  
$
68,393
  
$
70,249
  
                                             
SALES BY DISTRIBUTION
                                           
Brokerage general agents
  
$
36,172
  
$
29,495
  
$
36,072
  
$
38,836
  
$
38,179
  
$
36,172
  
$
38,179
  
Independent agents
    
17,309
   
18,815
   
21,788
   
17,652
   
13,800
   
17,309
   
13,800
 
Stockbrokers/banks
    
12,627
   
17,936
   
19,741
   
15,663
   
13,567
   
12,627
   
13,567
 
Direct Response & BOLI
    
2,285
   
3,451
   
2,380
   
4,493
   
4,703
   
2,285
   
4,703
 
Total
  
$
68,393
  
$
69,697
  
$
79,981
  
$
76,644
  
$
70,249
  
$
68,393
  
$
70,249
  
                                             
                                             
ANNUITIES
                                            
                                             
                                             
SALES
                                            
Variable Annuity
 
$
77,003
  
$
90,329
  
$
74,659
  
$
70,220
  
$
73,731
  
$
77,003
  
$
73,731
  
Immediate Annuity
   
32,476
   
21,194
   
25,606
   
32,653
   
45,045
   
32,476
   
45,045
 
Market Value Adjusted Annuity
   
26,483
   
33,065
   
23,032
   
31,644
   
28,373
   
26,483
   
28,373
 
Equity Indexed Annuity
    
609
   
6,582
   
21,188
   
20,506
   
18,672
   
609
   
18,672
 
Total
  
$
136,571
  
$
151,170
  
$
144,485
  
$
155,023
  
$
165,821
  
$
136,571
  
$
165,821
  
                                             
PRETAX OPERATING INCOME
                                            
Variable Annuity
 
$
3,735
  
$
4,274
  
$
3,555
  
$
14,440
  
$
5,252
  
$
3,735
  
$
5,252
  
Fixed Annuity
   
329
   
3,871
   
1,372
   
357
   
(598
)
  
329
   
(598
)
Total
  
$
4,064
  
$
8,145
  
$
4,927
  
$
14,797
  
$
4,654
  
$
4,064
  
$
4,654
  
                                             
DEPOSIT BALANCE
                                            
VA Fixed Annuity
 
$
251,822
  
$
250,556
  
$
232,578
  
$
226,437
  
$
223,265
              
VA Separate Account Annuity
   
2,176,065
   
2,210,639
   
2,280,264
   
2,310,117
   
2,382,736
             
Sub-total
    
2,427,887
   
2,461,195
   
2,512,842
   
2,536,554
 
$
2,606,001
              
Fixed Annuity
   
3,195,043
   
3,202,752
   
3,217,052
   
3,207,784
   
3,201,516
             
Total
  
$
5,622,930
  
$
5,663,947
  
$
5,729,894
  
$
5,744,338
  
$
5,807,517
              
                                             

 


PROTECTIVE LIFE CORPORATION
                              
Annuities, Stable Value Contracts, and Asset Protection
                          
4/27/2006
  
Quarterly Earnings Trends (Dollars in thousands)
                          
Page 9
  
(Unaudited)
                              
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
3 MOS
  
3 MOS
  
   
2005
  
2005
  
2005
  
2005
  
2006
  
2005
  
2006
  
ANNUITIES
                              
                               
REVENUES
                              
Gross Premiums and Policy Fees
 
$
7,840
  
$
7,866
  
$
8,057
  
$
8,047
  
$
8,144
  
$
7,840
  
$
8,144
  
Reinsurance Ceded
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Net Premiums and Policy Fees
    
7,840
   
7,866
   
8,057
   
8,047
   
8,144
   
7,840
   
8,144
 
Net investment income
    
56,150
   
54,786
   
54,008
   
53,756
   
53,494
   
56,150
   
53,494
 
RIGL - Derivatives
    
(162
)
  
0
   
163
   
(352
)
  
(651
)
  
(162
)
  
(651
)
RIGL - All Other Investments
    
27,624
   
1,474
   
70
   
1,812
   
(90
)
  
27,624
   
(90
)
Other income
    
1,726
   
2,264
   
2,133
   
1,649
   
2,899
   
1,726
   
2,899
 
Total Revenues
    
93,178
   
66,390
   
64,431
   
64,912
   
63,796
   
93,178
   
63,796
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
48,080
   
48,687
   
44,596
   
46,428
   
47,313
   
48,080
   
47,313
 
Amortization of deferred policy acquisition costs
    
29,638
   
3,453
   
7,663
   
(3,242
)
  
5,126
   
29,638
   
5,126
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
6,346
   
5,911
   
7,174
   
6,170
   
6,706
   
6,346
   
6,706
 
Total Benefits and Expenses
    
84,064
   
58,051
   
59,433
   
49,356
   
59,145
   
84,064
   
59,145
 
                                             
INCOME BEFORE INCOME TAX
   
9,114
   
8,339
   
4,998
   
15,556
   
4,651
   
9,114
   
4,651
 
                                             
Adjustments to Reconcile to Operating Income:
                                            
Less: RIGL - Derivatives
    
(162
)
  
0
   
163
   
(352
)
  
(651
)
  
(162
)
  
(651
)
Add back: Derivative gains related to equity indexed annuities
    
0
   
0
   
0
   
(351
)
  
(651
)
  
0
   
(651
)
Less: RIGL - All Other Investments
    
27,624
   
1,474
   
70
   
1,812
   
(90
)
  
27,624
   
(90
)
Add back: Related amortization of deferred policy acquisition costs
    
22,412
   
1,280
   
162
   
1,052
   
0
   
22,412
   
0
 
                                             
PRETAX OPERATING INCOME
  
$
4,064
  
$
8,145
  
$
4,927
  
$
14,797
  
$
4,741
  
$
4,064
  
$
4,741
  
                                             
STABLE VALUE CONTRACTS
                                            
                                             
REVENUES
                                            
Gross Premiums and Policy Fees
 
$
0
  
$
0
  
$
0
  
$
0
  
$
0
  
$
0
  
$
0
  
Reinsurance Ceded
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Net Premiums and Policy Fees
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Net investment income
    
73,875
   
76,081
   
79,118
   
81,641
   
82,233
   
73,875
   
82,233
 
RIGL - Derivatives
    
292
   
(310
)
  
416
   
(147
)
  
312
   
292
   
312
 
RIGL - All Other Investments
    
327
   
2,395
   
884
   
(19,922
)
  
(5,166
)
  
327
   
(5,166
)
Other income
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Total Revenues
    
74,494
   
78,166
   
80,418
   
61,572
   
77,379
   
74,494
   
77,379
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
57,169
   
60,084
   
62,747
   
66,134
   
67,463
   
57,169
   
67,463
 
Amortization of deferred policy acquisition costs
    
1,084
   
1,121
   
1,240
   
1,249
   
1,229
   
1,084
   
1,229
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
1,223
   
1,392
   
1,388
   
1,086
   
1,197
   
1,223
   
1,197
 
Total Benefits and Expenses
    
59,476
   
62,597
   
65,375
   
68,469
   
69,889
   
59,476
   
69,889
 
                                             
INCOME BEFORE INCOME TAX
    
15,018
   
15,569
   
15,043
   
(6,897
)
  
7,490
   
15,018
   
7,490
 
                                             
Adjustments to Reconcile to Operating Income:
                                            
Less: RIGL-Derivatives
    
292
   
(310
)
  
416
   
(147
)
  
312
   
292
   
312
 
Less: RIGL-All Other Investments
    
327
   
2,395
   
884
   
(19,922
)
  
(5,166
)
  
327
   
(5,166
)
                                             
PRETAX OPERATING INCOME
  
$
14,399
  
$
13,484
  
$
13,743
  
$
13,172
  
$
12,344
  
$
14,399
  
$
12,344
  
                                             
ASSET PROTECTION
                                            
                                             
                                             
REVENUES
                                            
Gross Premiums and Policy Fees
  
$
110,375
  
$
109,846
  
$
106,685
  
$
102,997
  
$
100,690
  
$
110,375
  
$
100,690
  
Reinsurance Ceded
    
(62,302
)
  
(59,233
)
  
(60,661
)
  
(68,234
)
  
(55,393
)
  
(62,302
)
  
(55,393
)
Net Premiums and Policy Fees
    
48,073
   
50,613
   
46,024
   
34,763
   
45,297
   
48,073
   
45,297
 
Net investment income
    
7,600
   
8,602
   
8,075
   
8,112
   
7,808
   
7,600
   
7,808
 
Realized investment gains (losses)
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other income
    
9,405
   
12,732
   
13,624
   
10,475
   
12,044
   
9,405
   
12,044
 
Total Revenues
    
65,078
   
71,947
   
67,723
   
53,350
   
65,149
   
65,078
   
65,149
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
26,529
   
29,851
   
27,560
   
17,537
   
22,209
   
26,529
   
22,209
 
Amortization of deferred policy acquisition costs
    
17,546
   
17,669
   
18,052
   
16,207
   
16,920
   
17,546
   
16,920
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
14,831
   
18,135
   
16,009
   
13,271
   
17,282
   
14,831
   
17,282
 
Total Benefits and Expenses
    
58,906
   
65,655
   
61,621
   
47,015
   
56,411
   
58,906
   
56,411
 
                                             
INCOME BEFORE INCOME TAX
 
$
6,172
  
$
6,292
  
$
6,102
  
$
6,335
  
$
8,738
  
$
6,172
  
$
8,738
  
                                             


PROTECTIVE LIFE CORPORATION
                              
Stable Value Contracts and Asset Protection Data
                          
4/27/2006
  
(Dollars in thousands)
                          
Page 10
  
(Unaudited)
                              
                               
                               
   
2005
  
2005
  
2005
  
2005
  
2006
  
3 MOS
  
3 MOS
  
   
1ST QTR
  
2NDQTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
2005
  
2006
  
STABLE VALUE CONTRACTS
                              
                               
SALES
                              
GIC
  
$
24,050
  
$
5,000
  
$
20,500
  
$
46,800
  
$
46,200
  
$
24,050
  
$
46,200
  
GFA - Direct Institutional
    
0
   
0
   
0
   
100,000
   
0
   
0
   
0
 
GFA - Non-Registered
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
GFA - Registered - Institutional
    
350,000
   
350,000
   
300,000
   
35,000
   
0
   
350,000
   
0
 
GFA - Registered - Retail
    
31,845
   
96,795
   
20,790
   
31,501
   
40,841
   
31,845
   
40,841
 
Total
 
$
405,895
  
$
451,795
  
$
341,290
  
$
213,301
  
$
87,041
  
$
405,895
  
$
87,041
  
                                             
                                             
DEPOSIT BALANCE
                                            
Quarter End Balance
 
$
5,670,355
  
$
5,846,120
  
$
5,900,740
  
$
6,057,721
  
$
5,873,092
  
$
5,670,355
  
$
5,873,092
  
Average Daily Balance
 
$
5,716,571
  
$
5,808,943
  
$
5,973,325
  
$
5,985,502
  
$
5,976,606
  
$
5,716,571
  
$
5,976,606
  
                                             
OPERATING SPREAD
    
1.04
%
  
0.95
%
  
0.94
%
  
0.90
%
  
0.84
%
  
1.04
%
  
0.84
%
                                             
                                             
     
2005
    
2005
    
2005
    
2005
    
2006
    
3 MOS
    
3 MOS
  
 
    
1STQTR
    
2ND QTR
    
3RD QTR
    
4TH QTR
    
1ST QTR
    
2005
    
2006
  
ASSET PROTECTION
                                            
                                             
SALES
                                           
Credit
  
$
50,106
  
$
51,421
  
$
56,749
  
$
50,602
  
$
31,847
  
$
50,106
  
$
31,847
  
Service Contracts
    
47,138
   
62,437
   
65,301
   
53,780
   
53,717
   
47,138
   
53,717
 
Other
    
9,075
   
13,567
   
14,812
   
13,776
   
16,921
   
9,075
   
16,921
 
Total
  
$
106,319
  
$
127,425
  
$
136,862
  
$
118,158
  
$
102,485
  
$
106,319
  
$
102,485
  
                                             
 

PROTECTIVE LIFE CORPORATION
                              
Corporate & Other Segment - Quarterly Earnings Trends
                          
4/27/2006
  
(Dollars in thousands)
                          
Page 11
  
(Unaudited)
                              
   
1ST QTR
  
2ND QTR
  
3RD QTR
  
4TH QTR
  
1ST QTR
  
3 MOS
  
3 MOS
  
   
2005
  
2005
  
2005
  
2005
  
2006
  
2005
  
2006
  
                               
                               
REVENUES
                              
Gross Premiums and Policy Fees
 
$
11,030
  
$
10,494
  
$
10,555
  
$
10,362
  
$
10,510
  
$
11,030
  
$
10,510
  
Reinsurance Ceded
    
(75
)
  
(53
)
  
(18
)
  
(27
)
  
(4
)
  
(75
)
  
(4
)
Net Premiums and Policy Fees
    
10,955
   
10,441
   
10,537
   
10,335
   
10,506
   
10,955
   
10,506
 
Net investment income
    
32,461
   
24,265
   
43,471
   
33,441
   
28,187
   
32,461
   
28,187
 
RIGL - Derivatives
    
(6,498
)
  
(25,711
)
  
7,083
   
(5,655
)
  
13,676
   
(6,498
)
  
13,676
 
RIGL - All Other Investments
    
(73
)
  
8,611
   
2,658
   
23,533
   
10,409
   
(73
)
  
10,409
 
Other income
    
4,236
   
2,949
   
3,792
   
3,475
   
3,637
   
4,236
   
3,637
 
Total Revenues
    
41,081
   
20,555
   
67,541
   
65,129
   
66,415
   
41,081
   
66,415
 
                                             
BENEFITS & EXPENSES
                                            
Benefits and settlement expenses
    
12,474
   
11,236
   
17,031
   
11,150
   
9,270
   
12,474
   
9,270
 
Amortization of deferred policy acquisition costs
    
1,085
   
1,026
   
967
   
985
   
955
   
1,085
   
955
 
Amortization of goodwill
    
0
   
0
   
0
   
0
   
0
   
0
   
0
 
Other operating expenses
    
26,132
   
24,856
   
26,343
   
29,921
   
27,099
   
26,132
   
27,099
 
Total Benefits and Expenses
    
39,691
   
37,118
   
44,341
   
42,056
   
37,324
   
39,691
   
37,324
 
                                             
INCOME BEFORE INCOME TAX
   
1,390
   
(16,563
)
  
23,200
   
23,073
   
29,091
   
1,390
   
29,091
 
                                             
Adjustments to Reconcile to Operating Income:
                                            
Less: RIGL-Derivatives
    
(6,498
)
  
(25,711
)
  
7,083
   
(5,655
)
  
13,676
   
(6,498
)
  
13,676
 
Less: RIGL-All Other Investments, net of participating income
    
(73
)
  
2,728
   
2,658
   
20,732
   
5,083
   
(73
)
  
5,083
 
Add back: Derivative gains related to corporate debt and investments
    
3,684
   
2,960
   
2,777
   
1,972
   
1,331
   
3,684
   
1,331
 
                                             
PRETAX OPERATING INCOME
  
$
11,645
  
$
9,380
  
$
16,236
  
$
9,968
  
$
11,663
  
$
11,645
  
$
11,663