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) August 1, 2006

Protective Life Corporation

(Exact name of registrant as specified in its charter)

Delaware	001-11339	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 August 1, 2006, Registrant issued a press release and made available supplemental financial information with respect to its financial results for the quarter ended June 30, 2006. 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 August 1, 2006

99.2 - Supplemental Financial Information Dated August 1, 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:August 1, 2006

EX-99.1

                    

              Exhibit 99.1

Protective Life Corporation

Post Office Box 2606

Birmingham, AL 35202

205-268-1000

FOR IMMEDIATE RELEASE

PROTECTIVE ANNOUNCES SECOND QUARTER 2006 EARNINGS

BIRMINGHAM, Alabama (August 1, 2006) Protective Life Corporation (NYSE: PL) today reported results for the second quarter of 2006.  Highlights include:

·   Net income increased 38.2% to $0.94 per diluted share, compared to $0.68 per share in the second quarter of 2005. Included in the current quarter’s net income were net realized investment losses of $0.01 per share, compared to net realized investment losses of $0.22 per share one year ago.

·   Operating income increased to $0.95 per diluted share, compared to $0.90 per share in the second quarter of 2005. 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.

·   Life Insurance pretax operating income, which includes operating income from the Life Marketing and Acquisitions segments, was $70.2 million, an increase of 17.4% over the second quarter of 2005. Life insurance sales were $53.5 million compared to $69.7 million in the prior year’s quarter.

·   Pretax operating income in the Annuities segment was $6.2 million in the current quarter compared to $8.1 million in the prior year. Annuity sales were $217.8 million, an increase of 44.1% over the prior year’s quarter.

·   The Stable Value Products segment reported pretax operating income of $11.8 million in the second quarter of 2006 compared to $13.5 million in the same period last year.

·   The Asset Protection segment reported pretax operating income of $8.9 million, an increase of 41.5% over the prior year’s quarter.

·   Participating mortgage income increased to $9.2 million from $6.7 million in the second quarter of 2005.

·   As of June 30, 2006, share-owners’ equity per share, excluding accumulated other comprehensive income, was $31.37 compared with $28.14 a year ago. Share-owners’ equity per share, including accumulated other comprehensive income, was $29.23 compared with $33.02 a year ago.

·   Operating income return on average equity for the twelve months ended June 30, 2006 was 12.9%.

·   Net income return on average equity for the twelve months ended June 30, 2006 was 13.4%.

·   At June 30, 2006, below investment gradesecurities were less than four percent of invested assets, and problem mortgage loans and foreclosed properties remained less than one percent of the commercial mortgage loan portfolio.

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

“Our effort in the second quarter was focused on the completion of the Chase Insurance Group acquisition, which was completed in early July. This is the most significant acquisition in the Company’s history, and we are very excited about the opportunities it provides to grow earnings in our Acquisitions segment and our ongoing life and annuity marketing operations. We have re-established a solid competitive position in the term insurance market, and we expect to see our term application count and sales build as the year progresses. Sales of universal life products fell as expected as a result of pricing actions necessitated by AG38. We plan to introduce new, more competitive UL products in the fourth quarter, which should put us back in a solid competitive position. Sales of fixed annuities increased during the quarter, and we expect to benefit in the second half from new sales through the Chase retail system. We reported another strong quarter in the Asset Protection segment, and the completion of the Western General acquisition is expected to be immediately accretive to earnings. We experienced lower unallocated investment income in the Corporate and Other segment as a result of the redeployment of capital to our operating lines. Overall, we continue to believe that we are positioned to benefit from our recent acquisitions, new product offerings and expanding distribution capacity. Although industry issues remain challenging, we see many opportunities to expand sales and grow our franchise.”

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.

SECOND QUARTER CONSOLIDATED RESULTS

($ in thousands; net of income tax)

	2Q2006			2Q2005
Operating income	$	67,719		$	63,412
Realized investment gains (losses) and
related amortization, net of certain
derivative gains (losses)		(778	)		(15,381	)
Net Income	$	66,941		$	48,031

($ per share; net of income tax)

	2Q2006			2Q2005
Operating income	$	0.95		$	0.90
Realized investment gains (losses) and
related amortization
Investments		0.04			0.05
Derivatives		(0.05	)		(0.27	)
Net Income	$	0.94		$	0.68

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)

	2Q2006		2Q2005
LIFE MARKETING	$	51,225	$	38,332
ACQUISITIONS		18,958		21,473
ANNUITIES		6,150		8,145
STABLE VALUE PRODUCTS		11,800		13,484
ASSET PROTECTION		8,904		6,292
CORPORATE AND OTHER		6,848		9,380
	$	103,885	$	97,106

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)	2Q2006			2Q2005
Operating income before income tax	$	103,885		$	97,106
Realized investment gains (losses)
Stable Value Contracts		710			2,085
Annuities		1,598			1,474
Corporate and Other		(1,284	)		(22,983	)
Less: periodic settlements on derivatives
Corporate and Other		674			2,960
Related amortization of deferred policy acquisition costs
Annuities		(1,549	)		(1,280	)
Income before income tax	$	102,686		$	73,442

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 $6.2 million for the second quarter of 2006 and $8.3 million in the second quarter of 2005. Income before income tax for the Stable Value segment was $12.5 million for the second quarter of 2006 compared to $15.6 million for the second quarter of 2005. Income before income tax for the Corporate and Other segment was $4.9 million for the second quarter of 2006 and a loss of $16.6 million for the second quarter of 2005.

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)

	2Q2006		2Q2005
LIFE MARKETING	$	53.5	$	69.7
ANNUITIES		217.8		151.2
STABLE VALUE PRODUCTS		124.5		451.8
ASSET PROTECTION		136.2		127.4

BUSINESS SEGMENT HIGHLIGHTS

LIFE MARKETING: Pretax operating income for the Life Marketing segment was $51.2 million in the quarter, an increase of 33.6% over the prior year’s quarter. The current quarter included positive unlocking of deferred policy acquisition costs (“DAC”) related to universal life products partially offset by unfavorable mortality and certain one-time expenses in non-core marketing operations. The net effect of these items increased earnings approximately $10.8 million. The remainder of the increase is primarily attributable to higher investment income due to the related growth in life insurance reserves and growth in business in-force due to strong sales in prior periods.

Life insurance sales were $53.5 million for the quarter compared to $69.7 million in the second quarter of 2005. Term insurance sales in the current quarter were up 33.0% to $35.7 million. Universal life insurance sales in the second quarter of 2006 were $17.7 million compared to $42.8 million in the prior year’s quarter.

ACQUISITIONS: Pretax operating income in the Acquisitions segment was $19.0 million for the second quarter of 2006 compared to $21.5 million in the second quarter of 2005. The decrease in the quarter is primarily attributable to the run-off of the in-force block and lower investment income. Mortality was favorable by approximately $0.9 million, approximately $0.3 million less favorable than the same period last year.

ANNUITIES: Pretax operating income in the Annuities segment was $6.2 million in the second quarter of 2006 compared to $8.1 million in the second quarter of 2005. The prior year’s quarter included $5.0 million of positive DAC unlocking related to the fixed annuity portfolio. Excluding the positive DAC unlocking in the prior year’s quarter, the increase is primarily attributable to the increase in interest spreads, higher fees and lower DAC amortization. Mortality was $1.6 million unfavorable in the current quarter and was unchanged from the prior year’s quarter.

Total annuity sales increased 44.1% to $217.8 million in the second quarter of 2006. Variable annuity sales were $81.2 million in the second quarter of 2006 compared to $90.3 million in the second quarter of 2005. Fixed annuity sales were $136.6 million in the second quarter of 2006 compared to $60.8 million in the prior year’s quarter. Included in fixed annuity sales for the second quarter of 2006 and 2005 were indexed annuity sales of $29.0 million and $6.6 million, respectively. Annuity account balances were $5.8 billion as of June 30, 2006.

STABLE VALUE PRODUCTS: Pretax operating income in the Stable Value Products segment was $11.8 million in the second quarter of 2006 compared to $13.5 million in the second quarter of 2005. Spreads narrowed to 82 basis points in the second quarter of 2006 from 95 basis points in the second quarter of 2005. The decrease in spreads is attributable to higher credited interest. Average account balances ended the quarter at $5.9 billion, an increase of approximately $0.1 million over the same period in the prior year.

ASSET PROTECTION: The Asset Protection segment had pretax operating income of $8.9 million for the second quarter of 2006 compared to $6.3 million in the prior year’s quarter. The improvement over the prior year’s quarter is primarily attributable to higher volumes and lower loss ratios.

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 $6.8 million in the second quarter of 2006 compared to $9.4 million in the second quarter of 2005. The decrease is primarily attributable to an increase in interest expense and corporate overhead, partially offset by higher participating mortgage income and investment income on unallocated capital and improved results in certain run-off lines. Total participating mortgage income was $9.2 million in the second quarter of 2006 compared to $6.7 million in the prior year’s quarter. Investment income on unallocated capital was $21.2 million compared to $18.3 million in the second quarter of 2005. Interest expense increased $4.2 million in the second quarter of 2006 compared to the prior year’s quarter.

CONFERENCE CALL

There will be a conference call for management to discuss the quarterly results with analysts and professional investors on August 2, 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 August 2 until midnight August 9. The recording may be accessed by calling 1-800-925-9527 (international callers 1-402-220-5388).

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 August 2 until midnight August 9.

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 June 30, 2006)

Total share-owners’ equity per share	$	29.23
Less: Accumulated other comprehensive income per share		(2.14	)
Total share-owners’ equity per share excluding accumulated other comprehensive income	$	31.37

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 June 30, 2006 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 June 30, 2006, 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 JUNE 30, 2006

($ in thousands)

Numerator:

	Three Months Ended
	Sept. 30, 2005			Dec. 31, 2005			March 31, 2006			June 30, 2006			Rolling Twelve Months Ended June 30, 2006
Net income	$	69,891		$	68,562		$	72,137		$	66,941		$	277,531
Net of:
Realized investment gains (losses), net of income tax
Investments		2,347			1,704			(113	)		4,222			8,160
Derivatives		4,980			(3,772	)		9,092			(3,556	)		6,744
Related amortization of deferred policy acquisition costs,
net of income tax benefit		(105	)		(684	)		---			(1,007	)		(1,796	)
Add back:
Derivative gains related to Corp. debt and investments
net of income tax		1,805			1,281			865			437			4,388
Operating Income	$	64,474		$	72,595		$	64,023		$	67,719		$	268,811

Denominator:

	Share-Owners’ Equity		Accumulated Other Comprehensive Income			Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
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
March 31, 2006		2,104,270		(35,242	)		2,139,512
June 30, 2006		2,043,711		(149,324	)		2,193,035
Total						$	10,386,829
Average						$	2,077,366
Operating Income Return on Average Equity							12.9	%

CALCULATION OF NET INCOME RETURN ON AVERAGE EQUITY

ROLLING TWELVE MONTHS ENDED JUNE 30, 2006

($ in thousands)

Numerator:

Net income - three months ended September 30, 2005	$	69,891
Net income - three months ended December 31, 2005		68,562
Net income - three months ended March 31, 2006		72,137
Net income - three months ended June 30, 2006		66,941
Net income - rolling twelve months ended June 30, 2006	$	277,531

Denominator:	Share-Owners’ Equity		Accumulated Other Comprehensive Income			Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
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
March 31, 2006		2,104,270		(35,242	)		2,139,512
June 30, 2006		2,043,711		(149,324	)		2,193,035
Total						$	10,386,829
Average						$	2,077,366
Net Income Return on Average Equity							13.4	%

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

  Protective Life Corporation Post Office Box 2606 Birmingham, AL 35202 Phone 205-268-1000 Exhibit 99.2

SUPPLEMENTAL FINANCIAL INFORMATION

The following document contains supplemental quarterly statistical financial information for the quarter ended June 30, 2006. This document is dated August 1, 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													7/28/2006
(Dollars in Thousands)													Page 1
(Unaudited)
	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR		6 MOS		6 MOS
	2005		2005		2005		2006		2006		2005		2006
Pretax Operating Income *
Life Marketing	$	38,332	$	38,014	$	48,174	$	40,781	$	51,225	$	77,473	$	92,006
Acquisitions		21,473		19,510		18,593		19,906		18,958		42,508		38,864
Annuities		8,145		4,927		14,797		4,741		6,150		12,209		10,891
Stable Value Contracts		13,484		13,743		13,172		12,344		11,800		27,883		24,144
Asset Protection		6,292		6,102		6,335		8,738		8,904		12,464		17,642
Corporate & Other		9,380		16,236		9,968		11,663		6,848		21,025		18,511
Total Pretax Operating Income	$	97,106	$	98,532	$	111,039	$	98,173	$	103,885	$	193,562	$	202,058
Balance Sheet Data
Total GAAP Assets	$	28,551,847	$	28,592,528	$	28,966,993	$	28,952,024	$	29,072,914
Share Owners' Equity	$	2,299,265	$	2,200,866	$	2,183,660	$	2,104,270	$	2,043,711
Share Owners' Equity (excluding accumulated other comprehensive income) **	$	1,959,487	$	2,016,355	$	2,078,440	$	2,139,512	$	2,193,035
Stock Data
Closing Price	$	42.22	$	41.18	$	43.77	$	49.74	$	46.62	$	39.30	$	46.62
Average Shares Outstanding
Basic		70,517,476		70,582,016		70,672,518		70,752,202		70,805,802		70,498,881		70,779,151
Diluted		71,279,363		71,350,044		71,496,555		71,559,255		71,381,677		71,279,432		71,469,976
* "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																			7/28/2006
(Dollars in thousands)																			Page 2
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2005			2005			2005			2006			2006			2005			2006
REVENUES
Gross Premiums and Policy Fees	$	484,643		$	486,660		$	515,963		$	507,694		$	516,182		$	953,157		$	1,023,876
Reinsurance Ceded		(312,511	)		(282,919	)		(349,275	)		(280,670	)		(317,740	)		(594,663	)		(598,410	)
Net Premiums and Policy Fees		172,132			203,741			166,688			227,024			198,442			358,494			425,466
Net investment income		282,374			306,885			303,290			299,065			300,734			570,327			599,799
RIGL - Derivatives		(26,021	)		7,662			(6,154	)		13,337			(4,799	)		(32,389	)		8,538
RIGL - All Other Investments		12,480			3,612			5,423			5,153			14,663			40,358			19,816
Other income		45,505			47,377			44,101			48,536			53,599			89,789			102,135
Total Revenues		486,470			569,277			513,348			593,115			562,639			1,026,579			1,155,754
BENEFITS & EXPENSES
Benefits and settlement expenses		291,636			333,365			327,932			349,608			335,937			592,070			685,545
Amortization of deferred policy acquisition costs		51,867			57,950			14,435			50,031			34,153			126,118			84,184
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		55,911			55,513			51,805			67,188			74,807			116,367			141,995
Interest on indebtedness		13,614			15,582			14,342			15,631			15,056			26,712			30,687
Total Benefits and Expenses		413,028			462,410			408,514			482,458			459,953			861,267			942,411
INCOME BEFORE INCOME TAX		73,442			106,867			104,834			110,657			102,686			165,312			213,343
Income tax expense		25,411			36,976			36,272			38,520			35,745			57,198			74,265
Change in Acct Principle		0			0			0			0			0			0			0
NET INCOME	$	48,031		$	69,891		$	68,562		$	72,137		$	66,941		$	108,114		$	139,078
PER SHARE DATA FOR QUARTER
Operating income-diluted *	$	0.90		$	0.90		$	1.02		$	0.90		$	0.95
RIGL - Derivatives net of gains related to corp debt, investments and annuities		(0.27	)		0.05			(0.07	)		0.11			(0.05	)
RIGL - All Other Investments, net of participating income		0.05			0.03			0.01			0.00			0.04
Change in Accounting Principle		0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	0.68		$	0.98		$	0.96		$	1.01		$	0.94
Average shares outstanding-diluted		71,279,363			71,350,044			71,496,555			71,559,255			71,381,677
Dividends paid	$	0.195		$	0.195		$	0.195		$	0.195		$	0.215
PER SHARE DATA FOR YTD
Operating income-diluted *	$	1.78		$	2.68		$	3.70		$	0.90		$	1.85		$	1.78		$	1.85
RIGL - Derivatives net of gains related to corp debt, investments and annuities		(0.36	)		(0.31	)		(0.38	)		0.11			0.06			(0.36	)		0.06
RIGL - All Other Investments, net of participating income		0.10			0.13			0.14			0.00			0.04			0.15			0.04
Change in Accounting Principle		0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	1.52		$	2.50		$	3.46		$	1.01		$	1.95		$	1.52		$	1.95
Average shares outstanding-diluted		71,276,577			71,301,335			71,350,541			71,559,255			71,469,976			71,276,577			71,469,976
Dividends paid	$	0.370		$	0.565		$	0.760		$	0.195		$	0.410		$	0.370		$	0.410

PROTECTIVE LIFE CORPORATION									Draft
GAAP Consolidated Balance Sheets									7/28/2006
(Dollars in thousands)									Page 3
(Unaudited)
	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR
	2005		2005		2005		2006		2006
ASSETS
Fixed maturities	$	15,686,373	$	15,824,420	$	15,472,386	$	14,965,927	$	14,901,325
Equity securities		115,758		115,570		121,012		123,536		121,215
Mortgage loans		3,124,877		3,101,823		3,287,745		3,411,337		3,537,842
Investment real estate		91,981		92,340		72,932		63,858		57,059
Policy loans		466,701		463,514		458,825		456,147		454,225
Other long-term investments		307,031		286,497		279,676		269,345		290,427
Long-term investments		19,792,721		19,884,164		19,692,576		19,290,150		19,362,093
Short-term investments		626,795		606,165		776,139		833,567		734,021
Total investments		20,419,516		20,490,329		20,468,715		20,123,717		20,096,114
Cash		98,316		63,565		83,670		37,118		35,718
Accrued investment income		192,454		201,037		189,038		198,708		204,572
Accounts and premiums receivable		348,688		58,883		82,080		59,236		114,514
Reinsurance receivable		2,883,648		2,862,674		3,020,685		3,146,444		3,212,207
Deferred policy acquisition costs		1,866,815		2,032,784		2,171,988		2,332,639		2,475,843
Goodwill		49,423		49,423		49,423		49,423		49,423
Property and equipment, net		46,878		47,304		47,010		45,941		44,897
Other assets		134,441		140,375		140,124		144,855		151,499
Income Tax Receivable		0		52,923		85,807		96,443		21,581
Assets Related to Separate Accounts
Variable Annuity		2,286,141		2,352,287		2,377,124		2,447,968		2,391,285
Variable Universal Life		225,527		240,944		251,329		269,532		275,261
Other		0		0		0		0		0
TOTAL ASSETS	$	28,551,847	$	28,592,528	$	28,966,993	$	28,952,024	$	29,072,914

PROTECTIVE LIFE CORPORATION													Draft
GAAP Consolidated Balance Sheets													7/28/2006
(Dollars in thousands)													Page 4
(Unaudited)
LIABILITIES AND SHARE-OWNERS' EQUITY
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR
LIABILITIES	2005			2005			2005			2006			2006
Policy liabilities and accruals
Future policy benefits and claims	$	10,499,494		$	10,797,527		$	11,155,074		$	11,447,516		$	11,681,465
Unearned premiums		679,916			671,971			740,071			767,074			814,739
Stable value product deposits		5,846,120			5,900,740			6,057,721			5,873,092			5,764,856
Annuity deposits		3,447,394			3,430,038			3,388,005			3,330,897			3,328,479
Other policyholders' funds		149,247			149,838			147,921			147,470			144,951
Securities sold under repurchase agreements		31,550			142,850			0			0			0
Other liabilities		1,482,085			1,043,260			954,716			881,146			923,900
Accrued income taxes		21,701			0			0			0			0
Deferred income taxes		311,146			287,976			317,317			280,219			240,774
Non-recourse funding obligations		0			100,000			125,000			150,000			200,000
Debt		469,317			471,808			482,532			473,032			489,532
Liabilities related to variable interest entities		465,078			464,747			448,093			442,383			435,980
Subordinated debt securities		324,743			324,743			324,743			324,743			324,743
Minority interest - subsidiaries		13,123			12,933			13,687			12,682			13,238
Liabilities related to separate accounts
Variable annuity		2,286,141			2,352,287			2,377,124			2,447,968			2,391,285
Variable universal life		225,527			240,944			251,329			269,532			275,261
Other		0			0			0			0			0
TOTAL LIABILITIES		26,252,582			26,391,662			26,783,333			26,847,754			27,029,203
SHARE-OWNERS' EQUITY
Common stock		36,626			36,626			36,626			36,626			36,626
Additional paid-in capital		433,040			433,363			440,475			441,964			443,462
Treasury stock		(13,011	)		(12,768	)		(12,765	)		(12,079	)		(11,968	)
Unallocated ESOP shares		(1,610	)		(1,610	)		(1,610	)		(1,231	)		(1,231	)
Retained earnings		1,504,442			1,560,744			1,615,714			1,674,232			1,726,146
Accumulated other comprehensive income		339,778			184,511			105,220			(35,242	)		(149,324	)
Total Share-owners' Equity		2,299,265			2,200,866			2,183,660			2,104,270			2,043,711
TOTAL LIABILITIES AND EQUITY	$	28,551,847		$	28,592,528		$	28,966,993		$	28,952,024		$	29,072,914
SHARE-OWNERS' EQUITY PER SHARE
Total Share-owners' Equity	$	33.02		$	31.58		$	31.33		$	30.11		$	29.23
Accumulated other comprehensive income		4.88			2.65			1.51			(0.50	)		(2.14	)
Excluding accumulated other comprehensive income *	$	28.14		$	28.93		$	29.82		$	30.61		$	31.37
Total Share-owners' Equity	$	2,299,265		$	2,200,866		$	2,183,660		$	2,104,270		$	2,043,711
Accumulated other comprehensive income		339,778			184,511			105,220			(35,242	)		(149,324	)
Share-owners' Equity (excluding accumulated other comprehensive income) *	$	1,959,487		$	2,016,355		$	2,078,440		$	2,139,512		$	2,193,035
Common shares outstanding		69,627,244			69,692,925			69,694,049			69,885,344			69,916,577
Treasury Stock shares		3,624,716			3,559,035			3,557,911			3,366,616			3,335,383
* "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																			7/28/2006
(Dollars in thousands)																			Page 5
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2005			2005			2005			2006			2006			2005			2006
CALCULATION OF NET INCOME PER SHARE
Net income	$	48,031		$	69,891		$	68,562		$	72,137		$	66,941		$	108,114		$	139,078
Average shares outstanding-basic		70,517,476			70,582,016			70,672,518			70,752,202			70,805,802			70,498,881			70,779,151
Average shares outstanding-diluted		71,279,363			71,350,044			71,496,555			71,559,255			71,381,677			71,279,432			71,469,976
Net income per share-basic	$	0.68		$	0.99		$	0.97		$	1.02		$	0.94		$	1.53		$	1.96
Net income per share-diluted	$	0.68		$	0.98		$	0.96		$	1.01		$	0.94		$	1.52		$	1.95
Income from continuing operations	$	48,031		$	69,891		$	68,562		$	72,137		$	66,941		$	108,114		$	139,078
EPS (basic)	$	0.68		$	0.99		$	0.97		$	1.02		$	0.94		$	1.53		$	1.96
EPS (diluted)	$	0.68		$	0.98		$	0.96		$	1.01		$	0.94		$	1.52		$	1.95
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
RIGL - Derivatives	$	(26,021	)	$	7,662		$	(6,154	)	$	13,337		$	(4,799	)	$	(32,389	)	$	8,538
Derivative Gains related to Corporate Debt and Investments		(2,960	)		(2,777	)		(1,972	)		(1,331	)		(674	)		(6,644	)		(2,005	)
Derivative Gains related to Annuities		0			0			351			651			(672	)		0			(21	)
RIGL - All Other Investments, net of participating income		6,597			3,612			2,622			(173	)		6,495			40,358			6,322
Related amortization of DAC		(1,280	)		(162	)		(1,052	)		0			(1,549	)		(23,692	)		(1,549	)
		(23,664	)		8,335			(6,205	)		12,484			(1,199	)		(28,250	)		11,285
Tax effect		8,283			(2,918	)		2,172			(4,369	)		419			9,888			(3,950	)
	$	(15,381	)	$	5,417		$	(4,033	)	$	8,115		$	(780	)	$	(18,362	)	$	7,335
RIGL - Derivatives per share-diluted	$	(0.27	)	$	0.05		$	(0.07	)	$	0.11		$	(0.05	)	$	(0.36	)	$	0.06
RIGL - All Other Investments per share-diluted	$	0.05		$	0.05		$	0.03		$	-		$	0.04		$	0.15		$	0.04
OPERATING INCOME PER SHARE *
Net income per share-diluted	$	0.68		$	0.98		$	0.96		$	1.01		$	0.94		$	1.52		$	1.95
RIGL - Derivatives per share-diluted		(0.27	)		0.05			(0.07	)		0.11			(0.05	)		(0.36	)		0.06
RIGL - All Other Investments, net of participating income per share-diluted		0.05			0.03			0.01			0.00			0.04			0.15			0.04
Change in accounting principle		0.00			0.00			0.00			0.00			0.00			0.00			0.00
Operating income per share-diluted	$	0.90		$	0.90		$	1.02		$	0.90		$	0.95		$	1.78		$	1.85
NET OPERATING INCOME *
Net income	$	48,031		$	69,891		$	68,562		$	72,137		$	66,941		$	108,114		$	139,078
RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities		(18,837	)		3,175			(5,054	)		8,227			(3,994	)		(25,371	)		4,233
RIGL - All Other Investments net of tax, amortization, and participating income		3,456			2,242			1,021			(113	)		3,216			7,009			3,103
Change in accounting principle		0			0			0			0			0			0			0
Net operating income	$	63,412		$	64,474		$	72,595		$	64,023		$	67,719		$	126,476		$	131,742
PRETAX OPERATING INCOME **
Income before income tax	$	73,442		$	106,867		$	104,834		$	110,657		$	102,686		$	165,312		$	213,343
RIGL - Derivatives		(26,021	)		7,662			(6,154	)		13,337			(4,799	)		(32,389	)		8,538
Derivative gains related to corporate debt, investments & annuities		(2,960	)		(2,777	)		(1,621	)		(680	)		(1,346	)		(6,644	)		(2,026	)
RIGL - All Other Investments, net of participating income		6,597			3,612			2,622			(173	)		6,495			40,358			6,322
Related amortization of DAC		(1,280	)		(162	)		(1,052	)		0			(1,549	)		(23,692	)		(1,549	)
Pretax operating income	$	97,106		$	98,532		$	111,039		$	98,173		$	103,885		$	193,562		$	202,058
* "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													7/28/2006
(Dollars in millions)													Page 6
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR
	2005			2005			2005			2006			2006
Total Portfolio
Fixed Income	$	15,686.4		$	15,824.4		$	15,472.4		$	14,965.9		$	14,901.3
Mortgage Loans		3,124.9			3,101.8			3,287.7			3,411.3			3,537.8
Real Estate		92.0			92.3			72.9			63.9			57.1
Equities		115.7			115.6			121.0			123.5			121.2
Policy Loans		466.7			463.5			458.8			456.1			454.2
Short Term Investments		626.8			606.2			776.1			833.6			734.0
Other Long Term Investments		186.0			286.5			279.7			269.3			290.4
Total Invested Assets	$	20,298.4		$	20,490.3		$	20,468.7		$	20,123.7		$	20,096.1
Fixed Income
Corporate Bonds	$	7,597.3		$	7,489.8		$	6,821.4		$	7,054.1		$	6,571.3
Mortgage Backed Securities		6,094.3			6,348.2			6,050.8			6,050.9			5,900.0
US Govt Bonds		88.5			88.3			843.0			199.7			908.4
Public Utilities		1,852.7			1,844.4			1,704.3			1,615.9			1,477.2
States, Municipals and Political Subdivisions		52.2			50.9			50.2			45.0			44.1
Preferred Securities		1.2			2.6			2.5			0.1			0.1
Convertibles and Bonds with Warrants		0.2			0.2			0.2			0.2			0.2
Total Fixed Income Portfolio	$	15,686.4		$	15,824.4		$	15,472.4		$	14,965.9		$	14,901.3
Fixed Income - Quality
AAA		40.0	%		40.9	%		44.7	%		41.9	%		46.0	%
AA		3.7	%		4.4	%		3.6	%		3.6	%		3.4	%
A		17.8	%		17.0	%		15.0	%		16.7	%		16.2	%
BBB		31.1	%		30.5	%		29.6	%		30.3	%		29.6	%
BB or Less		7.4	%		7.2	%		7.1	%		7.5	%		4.8	%
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		69.2	%		68.6	%		68.3	%		68.2	%		68.1	%
Apartments		12.5	%		12.3	%		11.9	%		10.9	%		10.6	%
Office Buildings		9.2	%		9.8	%		10.3	%		10.7	%		11.2	%
Warehouses		7.9	%		8.2	%		8.1	%		8.0	%		7.8	%
Miscellaneous		1.2	%		1.1	%		1.4	%		2.2	%		2.3	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Problem Mortgage Loans
60 Days Past Due	$	1.9		$	1.9		$	3.1		$	0.0		$	0.0
90 Days Past Due		2.6			5.4			5.1			5.4			3.1
Renegotiated Loans		8.3			5.5			5.6			5.6			0.2
Foreclosed Real Estate		4.3			5.0			8.4			1.6			5.1
	$	17.1		$	17.8		$	22.2		$	12.6		$	8.3

PROTECTIVE LIFE CORPORATION																			Draft
Life Marketing and Acquisitions - Quarterly Earnings Trends																			7/28/2006
(Dollars in thousands)																			Page 7
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2005			2005			2005			2006			2006			2005			2006
LIFE MARKETING
REVENUES
Gross Premiums and Policy Fees	$	290,333		$	297,098		$	329,423		$	325,364		$	335,467		$	564,102		$	660,831
Reinsurance Ceded		(235,968	)		(204,572	)		(261,769	)		(208,631	)		(247,119	)		(435,714	)		(455,750	)
Net Premiums and Policy Fees		54,365			92,526			67,654			116,733			88,348			128,388			205,081
Net investment income		62,541			66,847			71,318			72,853			75,474			123,694			148,327
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		27,107			27,577			27,962			29,339			32,735			55,663			62,074
Total Revenues		144,013			186,950			166,934			218,925			196,557			307,745			415,482
BENEFITS & EXPENSES
Benefits and settlement expenses		72,994			112,119			117,552			135,899			122,432			162,777			258,331
Amortization of deferred policy acquisition costs		21,413			23,831			(7,383	)		19,466			1,636			39,240			21,102
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		11,274			12,986			8,591			22,779			21,264			28,255			44,043
Total Benefits and Expenses		105,681			148,936			118,760			178,144			145,332			230,272			323,476
INCOME BEFORE INCOME TAX	$	38,332		$	38,014		$	48,174		$	40,781		$	51,225		$	77,473		$	92,006
ACQUISITIONS
REVENUES
Gross Premiums and Policy Fees	$	66,104		$	64,265		$	65,134		$	62,986		$	63,203		$	131,604		$	126,189
Reinsurance Ceded		(17,257	)		(17,668	)		(19,245	)		(16,642	)		(16,617	)		(37,286	)		(33,259	)
Net Premiums and Policy Fees		48,847			46,597			45,889			46,344			46,586			94,318			92,930
Net investment income		56,099			55,366			55,022			54,490			53,626			112,813			108,116
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		453			251			540			617			293			814			910
Total Revenues		105,399			102,214			101,451			101,451			100,505			207,945			201,956
BENEFITS & EXPENSES
Benefits and settlement expenses		68,784			69,312			69,131			67,454			66,984			135,183			134,438
Amortization of deferred policy acquisition costs		7,185			6,197			6,619			6,335			6,809			14,256			13,144
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		7,957			7,195			7,108			7,756			7,754			15,998			15,510
Total Benefits and Expenses		83,926			82,704			82,858			81,545			81,547			165,437			163,092
INCOME BEFORE INCOME TAX	$	21,473		$	19,510		$	18,593		$	19,906		$	18,958		$	42,508		$	38,864

 

PROTECTIVE LIFE CORPORATION														Draft
Life Marketing and Annuities Data														7/28/2006
(Dollars in thousands)														Page 8
(Unaudited)
	2005		2005		2005		2006			2006		6 MOS		6 MOS
	2ND QTR		3RD QTR		4TH QTR		1ST QTR			2ND QTR		2005		2006
LIFE MARKETING
SALES BY PRODUCT
Term	$	26,861	$	27,975	$	34,538	$	37,476		$	35,733	$	61,369	$	73,209
U/L		41,639		50,308		40,674		31,488			16,109		74,386		47,597
VUL		1,197		1,698		1,432		1,285			1,628		2,335		2,913
Total	$	69,697	$	79,981	$	76,644	$	70,249		$	53,470	$	138,090	$	123,719
SALES BY DISTRIBUTION
Brokerage general agents	$	29,495	$	36,072	$	38,836	$	38,179		$	32,644	$	65,667	$	70,823
Independent agents		18,815		21,788		17,652		13,800			9,216		36,124		23,016
Stockbrokers/banks		17,936		19,741		15,663		13,567			8,082		30,563		21,649
Direct Response & BOLI		3,451		2,380		4,493		4,703			3,528		5,736		8,231
Total	$	69,697	$	79,981	$	76,644	$	70,249		$	53,470	$	138,090	$	123,719
ANNUITIES
SALES
Variable Annuity	$	90,329	$	74,659	$	70,220	$	73,731		$	81,206	$	167,332	$	154,937
Immediate Annuity		21,194		25,606		32,653		45,045			49,113		53,670		94,158
Market Value Adjusted Annuity		33,065		23,032		31,644		28,373			58,464		59,548		86,837
Equity Indexed Annuity		6,582		21,188		20,506		18,672			29,002		7,191		47,674
Total	$	151,170	$	144,485	$	155,023	$	165,821		$	217,785	$	287,741	$	383,606
PRETAX OPERATING INCOME
Variable Annuity	$	4,274	$	3,555	$	14,440	$	5,280		$	5,425	$	8,009	$	10,705
Fixed Annuity		3,871		1,372		357		(539	)		725		4,200		186
Total	$	8,145	$	4,927	$	14,797	$	4,741		$	6,150	$	12,209	$	10,891
DEPOSIT BALANCE
VA Fixed Annuity	$	250,556	$	232,578	$	226,437	$	223,265		$	218,951
VA Separate Account Annuity		2,210,639		2,280,264		2,310,117		2,382,736			2,331,932
Sub-total		2,461,195		2,512,842		2,536,554		2,606,001			2,550,883
Fixed Annuity		3,202,752		3,217,052		3,207,784		3,201,516			3,256,655
Total	$	5,663,947	$	5,729,894	$	5,744,338	$	5,807,517		$	5,807,538

PROTECTIVE LIFE CORPORATION																			Draft
Annuities, Stable Value Contracts, and Asset Protection																			7/28/2006
Quarterly Earnings Trends (Dollars in thousands)																			Page 9
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2005			2005			2005			2006			2006			2005			2006
ANNUITIES
REVENUES
Gross Premiums and Policy Fees	$	7,866		$	8,057		$	8,047		$	8,144		$	8,000		$	15,706		$	16,144
Reinsurance Ceded		0			0			0			0			0			0			0
Net Premiums and Policy Fees		7,866			8,057			8,047			8,144			8,000			15,706			16,144
Net investment income		54,786			54,008			53,756			53,494			54,865			110,936			108,359
RIGL - Derivatives		0			163			(352	)		(651	)		672			(162	)		21
RIGL - All Other Investments		1,474			70			1,812			(90	)		1,598			29,098			1,508
Other income		2,264			2,133			1,649			2,899			2,343			3,990			5,242
Total Revenues		66,390			64,431			64,912			63,796			67,478			159,568			131,274
BENEFITS & EXPENSES
Benefits and settlement expenses		48,687			44,596			46,428			47,313			46,883			96,767			94,196
Amortization of deferred policy acquisition costs		3,453			7,663			(3,242	)		5,126			7,383			33,091			12,509
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		5,911			7,174			6,170			6,706			7,013			12,257			13,719
Total Benefits and Expenses		58,051			59,433			49,356			59,145			61,279			142,115			120,424
INCOME BEFORE INCOME TAX		8,339			4,998			15,556			4,651			6,199			17,453			10,850
Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives		0			163			(352	)		(651	)		672			(162	)		21
Add back: Derivative gains related to equity indexed annuities		0			0			(351	)		(651	)		672			0			21
Less: RIGL - All Other Investments		1,474			70			1,812			(90	)		1,598			29,098			1,508
Add back: Related amortization of deferred policy acquisition costs		1,280			162			1,052			0			1,549			23,692			1,549
PRETAX OPERATING INCOME	$	8,145		$	4,927		$	14,797		$	4,741		$	6,150		$	12,209		$	10,891
STABLE VALUE CONTRACTS
REVENUES
Gross Premiums and Policy Fees	$	-		$	-		$	-		$	-		$	-		$	-		$	-
Reinsurance Ceded		0			0			0			0			0			0			0
Net Premiums and Policy Fees		0			0			0			0			0			0			0
Net investment income		76,081			79,118			81,641			82,233			82,350			149,956			164,583
RIGL - Derivatives		(310	)		416			(147	)		312			98			(18	)		410
RIGL - All Other Investments		2,395			884			(19,922	)		(5,166	)		612			2,722			(4,554	)
Other income		0			0			0			0			0			0			0
Total Revenues		78,166			80,418			61,572			77,379			83,060			152,660			160,439
BENEFITS & EXPENSES
Benefits and settlement expenses		60,084			62,747			66,134			67,463			68,415			117,253			135,878
Amortization of deferred policy acquisition costs		1,121			1,240			1,249			1,229			1,136			2,205			2,365
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		1,392			1,388			1,086			1,197			999			2,615			2,196
Total Benefits and Expenses		62,597			65,375			68,469			69,889			70,550			122,073			140,439
INCOME BEFORE INCOME TAX		15,569			15,043			(6,897	)		7,490			12,510			30,587			20,000
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives		(310	)		416			(147	)		312			98			(18	)		410
Less: RIGL-All Other Investments		2,395			884			(19,922	)		(5,166	)		612			2,722			(4,554	)
PRETAX OPERATING INCOME	$	13,484		$	13,743		$	13,172		$	12,344		$	11,800		$	27,883		$	24,144
ASSET PROTECTION
REVENUES
Gross Premiums and Policy Fees	$	109,846		$	106,685		$	102,997		$	100,690		$	100,203		$	220,221		$	200,893
Reinsurance Ceded		(59,233	)		(60,661	)		(68,234	)		(55,393	)		(53,997	)		(121,535	)		(109,390	)
Net Premiums and Policy Fees		50,613			46,024			34,763			45,297			46,206			98,686			91,503
Net investment income		8,602			8,075			8,112			7,808			8,076			16,202			15,884
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		12,732			13,624			10,475			12,044			16,021			22,137			28,065
Total Revenues		71,947			67,723			53,350			65,149			70,303			137,025			135,452
BENEFITS & EXPENSES
Benefits and settlement expenses		29,851			27,560			17,537			22,209			22,870			56,380			45,079
Amortization of deferred policy acquisition costs		17,669			18,052			16,207			16,920			16,321			35,215			33,241
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		18,135			16,009			13,271			17,282			22,208			32,966			39,490
Total Benefits and Expenses		65,655			61,621			47,015			56,411			61,399			124,561			117,810
INCOME BEFORE INCOME TAX	$	6,292		$	6,102		$	6,335		$	8,738		$	8,904		$	12,464		$	17,642

PROTECTIVE LIFE CORPORATION																			Draft
Stable Value Contracts and Asset Protection Data																			7/28/2006
(Dollars in thousands)																			Page 10
(Unaudited)
	2005			2005			2005			2006			2006			6 MOS			6 MOS
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			2005			2006
STABLE VALUE CONTRACTS
SALES
GIC	$	5,000		$	20,500		$	46,800		$	46,200		$	111,400		$	29,050		$	157,600
GFA - Direct Institutional		0			0			100,000			0			0			0			0
GFA - Non-Registered		0			0			0			0			0			0			0
GFA - Registered - Institutional		350,000			300,000			35,000			0			0			700,000			0
GFA - Registered - Retail		96,795			20,790			31,501			40,841			13,078			128,640			53,919
Total	$	451,795		$	341,290		$	213,301		$	87,041		$	124,478		$	857,690		$	211,519
DEPOSIT BALANCE
Quarter End Balance	$	5,846,120		$	5,900,740		$	6,057,721		$	5,873,092		$	5,764,856		$	5,846,120		$	5,764,856
Average Daily Balance	$	5,808,943		$	5,973,325		$	5,985,502		$	5,976,606		$	5,853,111		$	5,763,519		$	5,914,749
OPERATING SPREAD		0.95	%		0.94	%		0.90	%		0.84	%		0.82	%		0.99	%		0.83	%

	2005		2005		2005		2006		2006		6 MOS		6 MOS
	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR		2005		2006
ASSET PROTECTION
SALES
Credit	$	51,421	$	56,749	$	50,602	$	31,847	$	39,952	$	101,527	$	71,799
Service Contracts		62,437		65,301		53,780		53,717		73,347		109,575		127,064
Other		13,567		14,812		13,776		16,921		22,900		22,642		39,821
Total	$	127,425	$	136,862	$	118,158	$	102,485	$	136,199	$	233,744	$	238,684

PROTECTIVE LIFE CORPORATION																			Draft
Corporate & Other Segment - Quarterly Earnings Trends																			7/28/2006
(Dollars in thousands)																			Page 11
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2005			2005			2005			2006			2006			2005			2006
REVENUES
Gross Premiums and Policy Fees	$	10,494		$	10,555		$	10,362		$	10,510		$	9,309		$	21,524		$	19,819
Reinsurance Ceded		(53	)		(18	)		(27	)		(4	)		(7	)		(128	)		(11	)
Net Premiums and Policy Fees		10,441			10,537			10,335			10,506			9,302			21,396			19,808
Net investment income		24,265			43,471			33,441			28,187			26,343			56,726			54,530
RIGL - Derivatives		(25,711	)		7,083			(5,655	)		13,676			(5,569	)		(32,209	)		8,107
RIGL - All Other Investments		8,611			2,658			23,533			10,409			12,453			8,538			22,862
Other income		2,949			3,792			3,475			3,637			2,207			7,185			5,844
Total Revenues		20,555			67,541			65,129			66,415			44,736			61,636			111,151
BENEFITS & EXPENSES
Benefits and settlement expenses		11,236			17,031			11,150			9,270			8,353			23,710			17,623
Amortization of deferred policy acquisition costs		1,026			967			985			955			868			2,111			1,823
Amortization of goodwill		0			0			0			0			0			0			0
Other operating expenses		24,856			26,343			29,921			27,099			30,625			50,988			57,724
Total Benefits and Expenses		37,118			44,341			42,056			37,324			39,846			76,809			77,170
INCOME BEFORE INCOME TAX		(16,563	)		23,200			23,073			29,091			4,890			(15,173	)		33,981
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives		(25,711	)		7,083			(5,655	)		13,676			(5,569	)		(32,209	)		8,107
Less: RIGL-All Other Investments, net of participating income		2,728			2,658			20,732			5,083			4,285			2,655			9,368
Add back: Derivative gains related to corporate debt and investments		2,960			2,777			1,972			1,331			674			6,644			2,005
PRETAX OPERATING INCOME	$	9,380		$	16,236		$	9,968		$	11,663		$	6,848		$	21,025		$	18,511