EX-99.2 3 ex99_2.htm SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Financial Information
 
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