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) May 8, 2007

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 May 8, 2007, Registrant issued a press release and made available supplemental financial information with respect to its financial results for the quarter ended March 31, 2007. 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 May 8, 2007

   99.2 - Supplemental Financial Information Dated May 8, 2007

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

/s/Steven G. Walker

Steven G. Walker

Senior Vice President, Controller

and Chief Accounting Officer

Dated:May 8, 2007

EX-99.1

  Protective Life Corporation Post Office Box 2606 Birmingham, AL 35202 Phone 205-268-1000 Exhibit 99.1

FOR IMMEDIATE RELEASE

PROTECTIVE ANNOUNCES FIRST QUARTER 2007 EARNINGS

BIRMINGHAM, Alabama (May 8, 2007) Protective Life Corporation (NYSE: PL) today reported results for the first quarter of 2007. Highlights include:

·   Net income increased 25.6% to a record $1.27 per diluted share, compared to $1.01 per share in the first quarter of 2006. Included in the current quarter’s net income were net realized investment gains of $0.06 per share, compared to net realized investment gains of $0.11 per share in the first quarter of 2006.

·   Operating income for the first quarter was $1.21 per diluted share, compared to $0.90 per share in the first quarter of 2006. 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 Marketing pretax operating income was $65.3 million, an increase of 60.1% over the same period last year. Included in the current quarter’s results is a pretax gain of $15.7 million on the sale of Matrix Direct. Life Insurance sales were $49.5 million as compared to $70.3 million in the first quarter of 2006.

·   Pretax operating income in the Acquisitions segment was $32.2 million in the current quarter, an increase of 62% compared to $19.9 million in the same period last year.

·   Pretax operating income in the Annuities segment increased 18.2% to $5.6 million in the current quarter. Annuity sales were $323.5 million, an increase of 95.1% over the first quarter of 2006.

·   The Stable Value Products segment reported pretax operating income of $12.2 million in the first quarter of 2007 compared to $12.3 million in the same period last year.

·   The Asset Protection segment reported pretax operating income of $10.1 million, an increase of 15.4% over the same period last year.

·   As of March 31, 2007, the Company’s assets were $39.8 billion, compared to $29.0 billion at March 31, 2006, an increase of 37.4%.

·   As of March 31, 2007, share-owners’ equity per share, excluding accumulated other comprehensive income, was $33.99 compared with $30.61 a year ago. Share-owners’ equity per share, including accumulated other comprehensive income, was $34.53 compared with $30.11 a year ago.

·   Operating income return on average equity for the twelve months ended March 31, 2007 was 11.8%.

·   Net income return on average equity for the twelve months ended March 31, 2007 was 13.3%.

·   At March 31, 2007, below investment gradesecurities were two 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:

“We are pleased to announce very good results for the first quarter. Both net income per share and operating income per share were at record levels in the quarter. Excluding a one-time gain arising from the sale of Matrix Direct, operating earnings per share were at the second highest level in our history. As compared to the first quarter last year, we saw very strong operating earnings growth in our Life Marketing, Annuities, Acquisitions and Asset Protection segments.

While individual life sales were essentially flat sequentially, based on the level of submissions in the first quarter, we expect to see a resumption of growth in life sales in the second quarter.

Annuity sales in the first quarter were almost double the level achieved in the first quarter of 2006. The growth came largely from growth in sales of our fixed annuity products, especially in the bank and stockbroker distribution channels.

The Chase acquisition continues to meet or exceed our expectations. We made substantial progress in the quarter on the integration of this business.

The Asset Protection segment also provided solid results in the quarter, driven in large part by good results in the extended service contract line.

In the Stable Value segment, an expansion in spreads largely offset the decline in account balance that resulted from our decision to limit new sales last year.

Overall, the company’s performance was very solid in the quarter.”

REVISION OF 2007 GUIDANCE

Based on current information, Protective is revising its previous guidance and expects 2007 operating income per diluted share to be between $3.90 and $4.10. Protective’s 2007 guidance excludes any reserve adjustments or unusual or unpredictable benefits or charges that might occur during the year. The 2007 guidance range is based upon actual first quarter performance and many assumptions relating to the remaining three quarters, including but not limited to: the expected pattern of financial results in the life insurance business written under our capital markets securitization structure in which profitability is expected to emerge more gradually after business is written, while results continue to be affected on an ongoing basis by the ordinary course run-off of older, profitable policies; competitive pressure on pricing in our term life insurance business; and our view and expectations as to the likely effect of the interest rate environment on our business (including our view and expectations of credit spreads, the yield curve, and the volume of prepayments and income from our participating mortgage loan portfolio). The 2007 guidance range also assumes no further positive or negative unlocking of deferred acquisition costs (“DAC”) or adjustments to value of businesses acquired (“VOBA”), and diluted weighted average shares outstanding of 71.5 million.

The Company’s actual experience in 2007 will almost certainly differ from many of the assumptions described above, due to a number of factors including, but not limited to, the risk factors set forth under “Forward Looking Statements” below and in the Company’s Form 10-K and Form 10-Q, significant changes in estimated future earnings on investment products caused by changes in the equity markets, DAC and VOBA amortization and our effective tax rate, up and down, that are difficult to anticipate or forecast.

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.

FIRST QUARTER CONSOLIDATED RESULTS

	1Q2007		1Q2006
	($ in thousands; net of income tax)
Operating income	$	86,589	$	64,023
Realized investment gains (losses) and
related amortization, net of certain
derivative gains (losses)		3,994		8,114
Net Income	$	90,583	$	72,137

	1Q2007			1Q2006
	($ per share; net of income tax)
Operating income	$	1.21		$	0.90
Realized investment gains (losses) and
related amortization
Investments		0.09			---
Derivatives		(0.03	)		0.11
Net Income	$	1.27		$	1.01

BUSINESS SEGMENT OPERATING INCOME BEFORE INCOME TAX

The table below sets forth business segment operating income before income tax for the periods shown:

OPERATING INCOME Before Income Tax

	1Q2007		1Q2006
	($ in thousands)
LIFE MARKETING	$	65,280	$	40,781
ACQUISITIONS		32,249		19,906
ANNUITIES		5,606		4,741
STABLE VALUE PRODUCTS		12,186		12,344
ASSET PROTECTION		10,084		8,738
CORPORATE AND OTHER		1,777		11,663
	$	127,182	$	98,173

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

	1Q2007		1Q2006
	($ in thousands)
Operating income before
income tax	$	127,182	$	98,173
Realized investment gains (losses)
Stable Value Contracts		1,425		(4,854	)
Annuities		1,664		(90	)
Acquisitions		4,230		---
Corporate and Other		280		18,759
Less: periodic settlements on derivatives
Corporate and Other		257		1,331
Related amortization of deferred policy
acquisition costs and value of businesses acquired
Acquisitions		606		---
Annuities		590		---
Income before income tax	$	133,328	$	110,657

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 value of businesses acquired (“VOBA”) and participating income from real estate ventures) for the Acquisitions segment was $35.9 million for the first quarter of 2007 and $19.9 million for the first quarter of 2006. Income before income tax for the Annuities segment was $6.7 million for the first quarter of 2007 and $4.7 million for the first quarter of 2006. Income before income tax for the Stable Value segment was $13.6 million for the first quarter of 2007 and $7.5 million for the first quarter of 2006. Income before income tax for the Corporate and Other segment was $1.8 million for the first quarter of 2007 and $29.1 million for the first quarter of 2006.

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:

	1Q2007		1Q2006
	($ in millions)
LIFE MARKETING	$	49.5	$	70.3
ANNUITIES		323.5		165.8
STABLE VALUE PRODUCTS		15.6		87.0
ASSET PROTECTION		139.0		102.5

BUSINESS SEGMENT HIGHLIGHTS

LIFE MARKETING: Pretax operating income for the Life Marketing segment was $65.3 million in the quarter, an increase of 60.1% over the prior year’s quarter. The quarter was favorably impacted by a $15.7 million gain on the sale of Matrix Direct. Mortality had a favorable $7.5 million impact to earnings in the first quarter of 2007; approximately $8.0 million more favorable than the prior year’s quarter.

Life insurance sales were $49.5 million for the quarter compared to $70.3 million in the first quarter of 2006. Term insurance sales in the current quarter were $33.5 million compared to $37.5 million in the prior year’s quarter. Universal and variable universal life insurance sales in the first quarter of 2007 were $16.0 million compared to $32.8 million in the first quarter of 2007.

ACQUISITIONS: Pretax operating income was $32.2 million for the first quarter of 2007 compared to $19.9 million in the first quarter of 2006. The increase for the quarter is attributable to the acquisition of the Chase Insurance Group block of business in the second half of 2006.

ANNUITIES: Pretax operating income in the Annuities segment increased to $5.6 million in the first quarter of 2007, from $4.7 million in the first quarter of 2006. Average annuity account balances were $6.6 billion as of March 31, 2007, an increase of 14.6% over the prior year.

Total annuity sales increased 95.1% to $323.5 million in the first quarter of 2007 as compared to the prior year’s quarter. Variable annuity sales were $79.7 million in the first quarter of 2007 compared to $73.7 million in the first quarter of 2006. Fixed annuity sales were $243.8 million in the first quarter of 2007 compared to $92.1 million in the prior year’s quarter.

STABLE VALUE PRODUCTS: Pretax operating income in the Stable Value Products segment was $12.2 million in the first quarter of 2007 compared to $12.3 million in the first quarter of 2006. While average account balances ended the quarter at $5.5 billion as compared to $6.0 billion in the first quarter of 2006, spreads in the first quarter of 2007 were 92 basis points as compared to 84 basis points in the first quarter of 2006.

ASSET PROTECTION: The Asset Protection segment had pretax operating income of $10.1 million for the first quarter of 2007 compared to $8.7 million in the prior year’s quarter. The increase in earnings was primarily attributable to improvement in service contract lines and additional earnings provided by Western General.

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 $1.8 million in the first quarter of 2007 compared to $11.7 million in the first quarter of 2006. The decrease in pretax operating income is attributable to an increase in interest expense, slightly lower participating mortgage income and higher corporate overhead offset by higher investment income on unallocated capital. The increase in interest expense for the quarter as compared to the same period in the prior year is primarily due to the issuance of $200 million of Subordinated Debt Securities to finance the Chase Insurance Group transaction in the third quarter of 2006 and the issuance of non-recourse funding obligations to support the Company’s Regulation XXX transaction. Interest expense increased $12.2 million in the first quarter of 2007 compared to the prior year’s quarter. Investment income on unallocated capital was $23.3 million compared to $16.1 million in the first quarter of 2006.

CONFERENCE CALL

There will be a conference call for management to discuss the quarterly results with analysts and professional investors on May 9, 2007 at 8:00 a.m. Eastern. Analysts and professional investors may access this call by calling 1-800-895-4790 (international callers 1-785-424-1071 and giving the conference ID: Protective. A recording of the call will be available from 12:00 p.m. Eastern May 9 until midnight May 16. The recording may be accessed by calling 1-800-283-8183 (international callers 1-402-220-0867).

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 May 9 until midnight May 16.

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 value of businesses acquired (“VOBA”) and participating income from real estate ventures. 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 and VOBA, 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.

The 2007 earnings guidance presented in this release is based on the financial measure operating income per diluted share. Net income per diluted share is the most directly comparable GAAP measure. A quantitative reconciliation of Protective’s net income per diluted share to operating income per diluted share is not calculable on a forward-looking basis because it is not possible to provide a reliable forecast of realized investment gains and losses, which typically vary substantially from period to period.

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

Total share-owners’ equity per share	$	34.53
Less: Accumulated other comprehensive income per share		0.54
Total share-owners' equity per share
excluding accumulated other comprehensive income	$	33.99

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 March 31, 2007 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 March 31, 2007, 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 MARCH 31, 2007

Numerator:

	Three Months Ended
	June 30, 2006			Sept. 30, 2006			Dec. 31, 2006			March 31, 2007			Rolling Twelve Months Ended March 31, 2007
	($ in thousands)
Net income	$	66,941		$	57,301		$	85,182		$	90,583		$	300,007
Net of:
Realized investment gains
(losses), net of income tax
Investments		4,222			51,119			3,655			6,592			65,588
Derivatives		(3,556	)		(34,772	)		17,035			(1,654	)		(22,947	)
Related amortization of
deferred policy
acquisition costs,
net of income tax benefit		(1,007	)		(4,147	)		(829	)		(777	)		(6,760	)
Add back:
Derivative gains related
to Corp. debt and investments
net of income tax		437			425			50			167			1,079
Operating Income	$	67,719		$	45,526		$	65,371		$	86,589		$	265,205

Denominator:	Share-Owners’ Equity		Accumulated Other Comprehensive Income			Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
	($ in thousands)
March 31, 2006	$	2,104,270	$	(35,242	)	$	2,139,512
June 30, 2006		2,043,711		(149,324	)		2,193,035
September 30, 2006		2,271,889		38,395			2,233,494
December 31, 2006		2,313,075		12,431			2,300,644
March 31, 2007		2,419,317		37,954			2,381,363
Total						$	11,248,048
Average						$	2,249,610
Operating Income Return on Average Equity							11.8	%

CALCULATION OF NET INCOME RETURN ON AVERAGE EQUITY

ROLLING TWELVE MONTHS ENDED MARCH 31, 2007

Numerator:		($ in thousands)
Net income - three months ended June 30, 2006	$	66,941
Net income - three months ended September 30, 2006		57,301
Net income - three months ended December 31, 2006		85,182
Net income - three months ended March 31, 2007		90,583
Net income - rolling twelve months ended March 31, 2007	$	300,007

Denominator:	Share-Owners’ Equity		Accumulated Other Comprehensive Income			Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
		($ in thousands)
March 31, 2006	$	2,104,270	$	(35,242	)	$	2,139,512
June 30, 2006		2,043,711		(149,324	)		2,193,035
September 30, 2006		2,271,889		38,395			2,233,494
December 31, 2006		2,313,075		12,431			2,300,644
March 31, 2007		2,419,317		37,954			2,381,363
Total						$	11,248,048
Average						$	2,249,610
Net Income Return on Average Equity							13.3	%

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, pandemics, 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 resulting in earnings volatility, and actual results could differ from its expectations, including, but not limited to, expectations of mortality, morbidity, casualty losses, persistency, lapses, customer mix and behavior and projected level of used vehicle values; the Company’s results may be negatively affected should actual experience differ from management’s assumptions and estimates which by their nature are imprecise and subject to changes and revision over time; the use of reinsurance, and any change in the magnitude 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, including, but not limited to, the volume of sales, the profitability of products, investment performance, and asset liability management; equity market volatility could negatively impact the Company’s business, particularly with respect to the Company’s variable products; insurance companies are highly regulated and subject to numerous legal restrictions and regulations, including, but not limited to, restrictions relating to premium rates, reserve requirements, marketing practices, advertising, privacy, policy forms, reinsurance reserve requirements, acquisitions, and capital adequacy, and the Company cannot predict whether or when regulatory actions may be taken that could adversely affect the Company or its operations; changes to tax law or interpretations of existing tax law could adversely affect the Company, including, but not limited to, the demand for and profitability of its insurance products and the Company’s 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, but not limited to, class action litigation, which could result in substantial judgments, and the Company, like other financial services companies, in the ordinary course of business is involved in litigation and arbitration; publicly held companies in general and the financial services industry in particular are 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, and a change in persistency may result in higher claims and/or higher or more rapid amortization of deferred policy acquisition costs and thus higher unit costs and lower reported earnings; the Company’s investments, including, but not limited to, the Company’s invested assets, derivative financial instruments and commercial mortgage loan portfolio, are subject to market and credit risks; the Company may not realize its anticipated financial results from its acquisitions strategy, which is dependent on factors such as the availability of suitable acquisitions, the availability of capital to fund acquisitions and the realization of assumptions relating to the acquisition; the Company may not be able to achieve the expected results from its recent acquisition; the Company is dependent on the performance of others, including, but not limited to, distributors, third-party administrators, fund managers, reinsurers and other service providers, and, as with all financial services companies, its ability to conduct business is dependent upon consumer confidence in the industry and its products; the Company’s reinsurers could fail to meet assumed obligations, increase rates, or be subject to adverse developments that could affect the Company, and the Company’s ability to compete is dependent on the availability of reinsurance, which has become more costly and less available in recent years, or other substitute capital market solutions; the success of the Company’s captive reinsurance program and related marketing efforts is dependent on a number of factors outside the control of the Company, including, but not limited to, continued access to capital markets and the overall tax position of the Company; computer viruses or network security breaches could affect the data processing systems of the Company or its business partners, destroying valuable data or making it difficult to conduct business; the Company’s ability to grow depends in large part upon the continued availability of capital, which has been negatively impacted by recent regulatory action, and future marketing plans are dependent on access to the capital markets through securitization; and new accounting or statutory rules or changes to existing accounting or statutory rules could negatively impact the Company. The Company’s risk management policies and procedures may leave it exposed to unidentified or unanticipated risk, which could negatively affect our business or result in losses. 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:

Gary Corsi

Executive Vice President and Chief Financial Officer

(205) 268-2226

Rob Shirley

Vice President, Investor Relations

(205) 268-6259

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 March 31, 2007. This document is dated May 8, 2007. 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 value of businesses acquired ("VOBA") and participating income from real estate ventures). Consolidated and segment operating income excludes net realized investment gains (losses) (net of the related amortization of DAC and value of businesses acquired ("VOBA") and participating income from real estate ventures). 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 DAC and VOBA, 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
Quarterly Financial Highlights
(Dollars in thousands)
(Unaudited)
	1ST QTR	2ND QTR	3RD QTR	4TH QTR	1ST QTR	3 MOS	3 MOS
	2006	2006	2006	2006	2007	2006	2007
Pretax Operating Income *
Life Marketing	$40,781	$51,225	$40,270	$41,913	$65,280	$40,781	$65,280
Acquisitions	19,906	18,958	32,060	33,610	32,249	19,906	32,249
Annuities	4,741	6,150	5,351	8,403	5,606	4,741	5,606
Stable Value Contracts	12,344	11,800	10,429	12,500	12,186	12,344	12,186
Asset Protection	8,738	8,904	(14,401)	6,570	10,084	8,738	10,084
Corporate & Other	11,663	6,848	(3,928)	(2,807)	1,777	11,663	1,777
Total Pretax Operating Income	$98,173	$103,885	$69,781	$100,189	$127,182	$98,173	$127,182
Balance Sheet Data
Total GAAP Assets	$28,952,024	$29,070,910	$38,805,973	$39,795,294	$39,791,832
Share Owners' Equity	$2,104,270	$2,043,711	$2,271,889	$2,313,075	$2,419,317
Share Owners' Equity (excluding accumulated other comprehensive income) **	$2,139,512	$2,193,035	$2,233,494	$2,300,644	$2,381,363
Stock Data
Closing Price	$49.74	$46.62	$45.75	$47.50	$44.04	$49.74	$44.04
Average Shares Outstanding
Basic	70,752,202	70,805,802	70,811,292	70,811,686	71,017,662	70,752,202	71,017,662
Diluted	71,559,255	71,381,677	71,355,221	71,269,472	71,487,063	71,559,255	71,487,063

* "Pretax Operating Income" is a non-GAAP financial measure. "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating Income" may be compared. See Page 5 for a reconciliation of "Pretax Operating Income" to "Income Before Income Tax".

** "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which "Share-owners' equity excluding accumulated other comprehensive income" may be compared. See Page 4 for a reconciliation of "Share-owners' equity excluding accumulated other comprehensive income" to "Share-owners' equity".

PROTECTIVE LIFE CORPORATION
GAAP Consolidated Statements Of Income
(Dollars in thousands)
(Unaudited)
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR				3 MOS		3 MOS
		2006			2006			2006			2006			2007			2006			2007
REVENUES
Gross Premiums and Policy Fees	$	507,694		$	506,211		$	637,457		$	665,975		$	660,824		$	507,694		$	660,824
Reinsurance Ceded		(280,670	)		(307,769	)		(371,688	)		(411,088	)		(370,997	)		(280,670	)		(370,997	)
Net Premiums and Policy Fees		227,024			198,442			265,769			254,887			289,827			227,024			289,827
Net investment income		299,065			300,734			410,746			409,233			415,682			299,065			415,682
RIGL - Derivatives		13,337			(4,799	)		(55,302	)		25,248			(2,291	)		13,337			(2,291	)
RIGL - All Other Investments		5,153			14,663			78,645			5,623			13,294			5,153			13,294
Other income		48,536			53,599			62,355			66,175			76,263			48,536			76,263
Total Revenues		593,115			562,639			762,213			761,166			792,775			593,115			792,775
BENEFITS & EXPENSES
Benefits and settlement expenses		349,608			335,937			488,948			462,722			472,770			349,608			472,770
Amortization of deferred policy acquisition costs and value of businesses acquired		50,031			34,153			67,199			74,421			69,753			50,031			69,753
Other operating expenses		67,188			74,807			97,711			71,720			93,058			67,188			93,058
Interest on indebtedness - subsidiaries		4,320			3,926			5,898			6,489			8,728			4,320			8,728
Interest on indebtedness - holding company - other debt		5,565			5,383			5,198			5,746			5,737			5,565			5,737
Interest on indebtedness - holding company - hybrid securities		5,746			5,746			9,361			9,402			9,401			5,746			9,401
Total Benefits and Expenses		482,458			459,953			674,315			630,499			659,447			482,458			659,447
INCOME BEFORE INCOME TAX		110,657			102,686			87,898			130,667			133,328			110,657			133,328
Income tax expense		38,520			35,745			30,597			45,485			42,745			38,520			42,745
Discontinued Operations		0			0			0			0			0			0			0
NET INCOME	$	72,137		$	66,941		$	57,301		$	85,182		$	90,583		$	72,137		$	90,583
PER SHARE DATA FOR QUARTER
Operating income-diluted *	$	0.90		$	0.95		$	0.63		$	0.91		$	1.21
RIGL - Derivatives net of gains related to corp debt, investments and annuities		0.11			(0.05	)		(0.49	)		0.23			(0.03	)
RIGL - All Other Investments, net of participating income		0.00			0.04			0.66			0.05			0.09
Discontinued Operations		0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	1.01		$	0.94		$	0.80		$	1.19		$	1.27
Average shares outstanding-diluted		71,559,255			71,381,677			71,355,221			71,269,472			71,487,063
Dividends paid	$	0.195		$	0.215		$	0.215		$	0.215		$	0.215
PER SHARE DATA FOR YTD
Operating income-diluted *	$	0.90		$	1.85		$	2.48		$	3.39		$	1.21		$	0.90		$	1.21
RIGL - Derivatives net of gains related to corp debt, investments and annuities		0.11			0.06			(0.43	)		(0.20	)		(0.03	)		0.11			(0.03	)
RIGL - All Other Investments, net of participating income		0.00			0.04			0.70			0.75			0.09			0.00			0.09
Discontinued Operations		0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	1.01		$	1.95		$	2.75		$	3.94		$	1.27		$	1.01		$	1.27
Average shares outstanding-diluted		71,559,255			71,469,976			71,431,304			71,390,513			71,487,063			71,559,255			71,487,063
Dividends paid	$	0.195		$	0.410		$	0.625		$	0.840		$	0.215		$	0.195		$	0.215

* "Operating Income" is a non-GAAP financial measure. "Net Income" is a GAAP financial measure to which "Operating Income" may be compared.

PROTECTIVE LIFE CORPORATION
GAAP Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR
	2006		2006		2006		2006		2007
ASSETS
Fixed maturities	$	14,965,927	$	14,901,325	$	21,146,307	$	21,367,263	$	21,570,487
Equity securities		123,536		121,215		124,495		128,695		69,211
Mortgage loans		3,411,337		3,537,842		3,650,356		3,880,028		4,025,025
Investment real estate		63,858		57,059		52,263		38,918		38,828
Policy loans		456,147		454,225		835,817		839,502		822,930
Other long-term investments		269,345		290,427		290,304		310,255		167,571
Long-term investments		19,290,150		19,362,093		26,099,542		26,564,631		26,694,052
Short-term investments		833,567		734,021		1,377,210		1,381,073		1,064,768
Total investments		20,123,717		20,096,114		27,476,752		27,945,704		27,758,820
Cash		37,118		35,718		39,285		69,516		120,190
Accrued investment income		198,708		204,572		266,688		284,529		265,772
Accounts and premiums receivable		59,236		114,514		130,427		194,447		121,051
Reinsurance receivable		3,146,444		3,212,207		4,541,415		4,618,122		4,780,956
Deferred policy acquisition costs and value of businesses acquired		2,332,639		2,475,843		3,099,726		3,198,735		3,212,048
Goodwill		49,423		49,423		68,472		100,479		100,318
Property and equipment, net		45,941		44,897		44,569		43,796		42,245
Other assets		144,855		151,499		248,197		165,656		163,543
Income Tax Receivable		96,443		19,577		0		116,318		116,684
Assets Related to Separate Accounts
Variable Annuity		2,447,968		2,391,285		2,604,488		2,750,129		2,790,233
Variable Universal Life		269,532		275,261		285,954		307,863		319,972
TOTAL ASSETS	$	28,952,024	$	29,070,910	$	38,805,973	$	39,795,294	$	39,791,832

PROTECTIVE LIFE CORPORATION
GAAP Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR
	2006			2006			2006			2006			2007
LIABILITIES AND SHARE-OWNERS' EQUITY
LIABILITIES
Policy liabilities and accruals
Future policy benefits and claims	$	11,447,516		$	11,681,465		$	14,761,428		$	15,120,996		$	15,285,420
Unearned premiums		767,074			814,739			906,542			938,934			1,020,401
Stable value product deposits		5,873,092			5,764,856			5,515,633			5,513,464			5,055,382
Annuity deposits		3,330,897			3,328,479			8,943,078			8,958,089			8,966,309
Other policyholders' funds		147,470			144,951			340,756			328,664			323,898
Securities sold under repurchase agreements		0			0			0			16,949			2,844
Other liabilities		881,146			923,900			1,110,058			1,310,145			1,227,373
Accrued income taxes		0			(2,004	)		99,428			0			0
Deferred income taxes		280,219			240,774			271,894			374,486			429,481
Non-recourse funding obligations		150,000			200,000			250,000			425,000			525,000
Debt		473,032			489,532			471,132			479,132			466,532
Liabilities related to variable interest entities		442,383			435,980			435,756			420,395			421,684
Subordinated debt securities		324,743			324,743			524,743			524,743			524,743
Minority interest - subsidiaries		12,682			13,238			13,194			13,230			13,243
Liabilities related to separate accounts
Variable annuity		2,447,968			2,391,285			2,604,488			2,750,129			2,790,233
Variable universal life		269,532			275,261			285,954			307,863			319,972
Total Liabilities		26,847,754			27,027,199			36,534,084			37,482,219			37,372,515
SHARE-OWNERS' EQUITY
Common stock		36,626			36,626			36,626			36,626			36,626
Additional paid-in capital		441,964			443,462			441,589			438,485			440,813
Treasury stock		(12,079	)		(11,968	)		(11,906	)		(11,796	)		(11,468	)
Cumulative Effect Adjustments - FAS 155 & FIN 48		0			0			0			0			2,146
Unallocated ESOP shares		(1,231	)		(1,231	)		(1,231	)		(1,231	)		(853	)
Retained earnings		1,674,232			1,726,146			1,768,416			1,838,560			1,914,099
Accumulated other comprehensive income		(35,242	)		(149,324	)		38,395			12,431			37,954
Total Share-owners' Equity		2,104,270			2,043,711			2,271,889			2,313,075			2,419,317
TOTAL LIABILITIES AND EQUITY	$	28,952,024		$	29,070,910		$	38,805,973		$	39,795,294		$	39,791,832
SHARE-OWNERS' EQUITY PER SHARE
Total Share-owners' Equity	$	30.11		$	29.23		$	32.49		$	33.06		$	34.53
Accumulated other comprehensive income		(0.50	)		(2.14	)		0.55			0.18			0.54
Excluding accumulated other comprehensive income *	$	30.61		$	31.37		$	31.94		$	32.88		$	33.99
Total Share-owners' Equity	$	2,104,270		$	2,043,711		$	2,271,889		$	2,313,075		$	2,419,317
Accumulated other comprehensive income		(35,242	)		(149,324	)		38,395			12,431			37,954
Share-owners' Equity (excluding accumulated other comprehensive income) *	$	2,139,512		$	2,193,035		$	2,233,494		$	2,300,644		$	2,381,363
Common shares outstanding		69,885,344			69,916,577			69,934,277			69,964,648			70,056,891
Treasury Stock shares		3,366,616			3,335,383			3,317,683			3,287,312			3,195,069

* "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which "Share-owners' equity excluding accumulated other comprehensive income" may be compared.

PROTECTIVE LIFE CORPORATION
Calculation of Operating Earnings Per Share
(Dollars in thousands)
(Unaudited)
		1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS			3 MOS
		2006			2006			2006			2006			2007			2006			2007
CALCULATION OF NET INCOME PER SHARE
Net income	$	72,137		$	66,941		$	57,301		$	85,182		$	90,583		$	72,137		$	90,583
Average shares outstanding-basic		70,752,202			70,805,802			70,811,292			70,811,686			71,017,662			70,752,202			71,017,662
Average shares outstanding-diluted		71,559,255			71,381,677			71,355,221			71,269,472			71,487,063			71,559,255			71,487,063
Net income per share-basic	$	1.02		$	0.94		$	0.81		$	1.21		$	1.28		$	1.02		$	1.28
Net income per share-diluted	$	1.01		$	0.94		$	0.80		$	1.19		$	1.27		$	1.01		$	1.27
Income from continuing operations	$	72,137		$	66,941		$	57,301		$	85,182		$	90,583		$	72,137		$	90,583
EPS (basic)	$	1.02		$	0.94		$	0.81		$	1.21		$	1.28		$	1.02		$	1.28
EPS (diluted)	$	1.01		$	0.94		$	0.80		$	1.19		$	1.27		$	1.01		$	1.27
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
RIGL - Derivatives	$	13,337		$	(4,799	)	$	(55,302	)	$	25,248		$	(2,291	)	$	13,337		$	(2,291	)
Derivative Gains related to Corporate Debt and Investments		(1,331	)		(674	)		(654	)		(77	)		(257	)		(1,331	)		(257	)
Derivative Gains related to Annuities		651			(672	)		1,808			960			(254	)		651			(254	)
RIGL - All Other Investments, net of participating income		(173	)		6,495			78,645			5,623			10,144			(173	)		10,144
Related amortization of DAC & VOBA		0			(1,549	)		(6,379	)		(1,276	)		(1,196	)		0			(1,196	)
		12,484			(1,199	)		18,118			30,478			6,146			12,484			6,146
Tax effect		(4,369	)		419			(6,341	)		(10,667	)		(2,151	)		(4,369	)		(2,151	)
	$	8,115		$	(780	)	$	11,777		$	19,811		$	3,995		$	8,115		$	3,995
RIGL - Derivatives per share-diluted	$	0.11		$	(0.05	)	$	(0.49	)	$	0.23		$	(0.03	)	$	0.11		$	(0.03	)
RIGL - All Other Investments per share-diluted	$	-		$	0.04		$	0.66		$	0.05		$	0.09		$	-		$	0.09
OPERATING INCOME PER SHARE *
Net income per share-diluted	$	1.01		$	0.94		$	0.80		$	1.19		$	1.27		$	1.01		$	1.27
Discontinued operations		-			-			-			-			-			-			-
RIGL - Derivatives per share-diluted		0.11			(0.05	)		(0.49	)		0.23			(0.03	)		0.11			(0.03	)
RIGL - All Other Investments, net of participating income per share-diluted		0.00			0.04			0.66			0.05			0.09			0.00			0.09
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		$	0.95		$	0.63		$	0.91		$	1.21		$	0.90		$	1.21
NET OPERATING INCOME *
Net income	$	72,137		$	66,941		$	57,301		$	85,182		$	90,583		$	72,137		$	90,583
RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities		8,227			(3,994	)		(35,197	)		16,985			(1,822	)		8,227			(1,822	)
RIGL - All Other Investments net of tax, amortization, and participating income		(113	)		3,216			46,972			2,826			5,816			(113	)		5,816
Discontinued operations		0			0			0			0			0			0			0
Change in accounting principle		0			0			0			0			0			0			0
Net operating income	$	64,023		$	67,719		$	45,526		$	65,371		$	86,589		$	64,023		$	86,589
PRETAX OPERATING INCOME **
Income before income tax and discontinued operations	$	110,657		$	102,686		$	87,898		$	130,667		$	133,328		$	110,657		$	133,328
RIGL - Derivatives		13,337			(4,799	)		(55,302	)		25,248			(2,291	)		13,337			(2,291	)
Derivative gains related to corporate debt, investments & annuities		(680	)		(1,346	)		1,153			883			(511	)		(680	)		(511	)
RIGL - All Other Investments, net of participating income		(173	)		6,495			78,645			5,623			10,144			(173	)		10,144
Related amortization of DAC & VOBA		0			(1,549	)		(6,379	)		(1,276	)		(1,196	)		0			(1,196	)
Pretax operating income	$	98,173		$	103,885		$	69,781		$	100,189		$	127,182		$	98,173		$	127,182

* "Net Operating Income" and "Operating Income Per Share" are non-GAAP financial measures. "Net Income" and "Net Income Per Share" are GAAP financial measures to which "Net Operating Income" and "Operating Income Per Share" may be compared.

** "Pretax Operating Income" is a non-GAAP financial measure. "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating Income" may be compared.

PROTECTIVE LIFE CORPORATION
Invested Asset Summary
(Dollars in millions)
(Unaudited)
	1ST QTR	2ND QTR	3RD QTR	4TH QTR	1ST QTR
	2006	2006	2006	2006	2007
Total Portfolio
Fixed Income	$14,965.9	$14,901.3	$21,146.3	$21,367.3	$21,570.5
Mortgage Loans	3,411.3	3,537.8	3,650.4	3,880.0	4,025.0
Real Estate	63.9	57.1	52.3	38.9	38.8
Equities	123.5	121.2	124.5	128.7	69.2
Policy Loans	456.1	454.2	835.8	839.5	822.9
Short Term Investments	833.6	734.0	1,377.2	1,381.1	1,064.8
Other Long Term Investments	269.3	290.4	290.3	310.2	167.6
Total Invested Assets	$20,123.7	$20,096.1	$27,476.8	$27,945.7	$27,758.8
Fixed Income
Corporate Bonds	$7,054.1	$6,571.3	$10,247.2	$10,223.1	$10,796.0
Mortgage Backed Securities	6,050.9	5,900.0	8,299.4	7,870.3	8,331.8
US Govt Bonds	199.7	908.4	654.4	1,373.8	529.4
Public Utilities	1,615.9	1,477.2	1,821.0	1,784.5	1,794.4
States, Municipals and Political Subdivisions	45.0	44.1	124.0	115.3	118.6
Preferred Securities	0.1	0.1	0.1	0.1	0.1
Convertibles and Bonds with Warrants	0.2	0.2	0.2	0.2	0.2
Total Fixed Income Portfolio	$14,965.9	$14,901.3	$21,146.3	$21,367.3	$21,570.5
Fixed Income - Quality
AAA	41.9%	46.0%	44.8%	46.2%	44.1%
AA	3.6%	3.4%	6.6%	6.8%	8.4%
A	16.7%	16.2%	18.5%	18.4%	19.1%
BBB	30.3%	29.6%	28.1%	27.0%	26.7%
BB or Less	7.5%	4.8%	2.0%	1.6%	1.7%
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	68.2%	68.1%	68.1%	68.3%	66.9%
Apartments	10.9%	10.6%	10.6%	10.0%	11.2%
Office Buildings	10.7%	11.2%	11.7%	11.9%	12.2%
Warehouses	8.0%	7.8%	7.2%	7.1%	7.0%
Miscellaneous	2.2%	2.3%	2.4%	2.7%	2.7%
	100.0%	100.0%	100.0%	100.0%	100.0%
Problem Mortgage Loans
60 Days Past Due	$0.0	$0.0	$0.0	$0.0	$2.0
90 Days Past Due	5.4	3.1	6.6	0.0	0.0
Renegotiated Loans	5.6	0.2	0.2	0.1	0.1
Foreclosed Real Estate	1.6	5.1	5.1	15.7	0.0
	$12.6	$8.3	$11.8	$15.8	$2.1

PROTECTIVE LIFE CORPORATION
Life Marketing and Acquisitions - Quarterly Earnings Trends
(Dollars in thousands)
(Unaudited)
		1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS			3 MOS
		2006			2006			2006			2006			2007			2006			2007
LIFE MARKETING
REVENUES
Gross Premiums and Policy Fees	$	325,364		$	325,496		$	327,355		$	349,650		$	345,685		$	325,364		$	345,685
Reinsurance Ceded		(208,631	)		(237,148	)		(206,269	)		(254,542	)		(207,614	)		(208,631	)		(207,614	)
Net Premiums and Policy Fees		116,733			88,348			121,086			95,108			138,071			116,733			138,071
Net investment income		72,853			75,474			80,444			79,726			81,103			72,853			81,103
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		29,339			32,735			32,278			43,539			51,365			29,339			51,365
Total Revenues		218,925			196,557			233,808			218,373			270,539			218,925			270,539
BENEFITS & EXPENSES
Benefits and settlement expenses		135,899			122,432			147,213			130,396			149,329			135,899			149,329
Amortization of deferred policy acquisition costs and value of businesses acquired		19,466			1,636			21,689			17,436			28,698			19,466			28,698
Other operating expenses		22,779			21,264			24,636			28,628			27,232			22,779			27,232
Total Benefits and Expenses		178,144			145,332			193,538			176,460			205,259			178,144			205,259
INCOME BEFORE INCOME TAX	$	40,781		$	51,225		$	40,270		$	41,913		$	65,280		$	40,781		$	65,280
ACQUISITIONS
REVENUES
Gross Premiums and Policy Fees	$	62,986		$	63,203		$	188,491		$	199,891		$	198,288		$	62,986		$	198,288
Reinsurance Ceded		(16,642	)		(16,617	)		(112,636	)		(110,416	)		(118,241	)		(16,642	)		(118,241	)
Net Premiums and Policy Fees		46,344			46,586			75,855			89,475			80,047			46,344			80,047
Net investment income		54,490			53,626			152,834			152,686			148,986			54,490			148,986
RIGL - Derivatives		0			0			(58,544	)		13,379			(3,703	)		0			(3,703	)
RIGL - All Other Investments		0			0			74,628			(747	)		7,933			0			7,933
Other income		617			293			4,774			354			4,719			617			4,719
Total Revenues		101,451			100,505			249,547			255,147			237,982			101,451			237,982
BENEFITS & EXPENSES
Benefits and settlement expenses		67,454			66,984			178,946			181,149			166,889			67,454			166,889
Amortization of deferred policy acquisition costs and value of businesses acquired		6,335			6,809			15,142			30,528			13,927			6,335			13,927
Other operating expenses		7,756			7,754			12,501			(1,182	)		21,293			7,756			21,293
Total Benefits and Expenses		81,545			81,547			206,589			210,495			202,109			81,545			202,109
INCOME BEFORE INCOME TAX		19,906			18,958			42,958			44,652			35,873			19,906			35,873
Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives		0			0			(58,544	)		13,379			(3,703	)		0			(3,703	)
Less: RIGL - All Other Investments		0			0			74,628			(747	)		7,933			0			7,933
Add back: Related amortization of deferred policy acquisition costs		0			0			5,186			1,590			606			0			606
PRETAX OPERATING INCOME	$	19,906		$	18,958		$	32,060		$	33,610		$	32,249		$	19,906		$	32,249

PROTECTIVE LIFE CORPORATION
Life Marketing and Annuities Data
(Dollars in thousands)
(Unaudited)
		2006			2006		2006		2006		2007		3 MOS			3 MOS
		1ST QTR			2ND QTR		3RD QTR		4TH QTR		1ST QTR		2006			2007
LIFE MARKETING
SALES BY PRODUCT
Term	$	37,477		$	35,733	$	39,552	$	32,618	$	33,492	$	37,477		$	33,492
U/L		31,488			16,109		13,028		15,090		14,197		31,488			14,197
VUL		1,285			1,628		1,697		1,914		1,828		1,285			1,828
Total	$	70,250		$	53,470	$	54,277	$	49,622	$	49,517	$	70,250		$	49,517
SALES BY DISTRIBUTION
Brokerage general agents	$	38,180		$	32,644	$	33,733	$	29,438	$	29,879	$	38,180		$	29,879
Independent agents		13,800			9,216		7,814		9,932		8,328		13,800			8,328
Stockbrokers/banks		13,567			8,082		7,116		6,983		8,493		13,567			8,493
Direct Response & BOLI		4,703			3,528		5,614		3,269		2,817		4,703			2,817
Total	$	70,250		$	53,470	$	54,277	$	49,622	$	49,517	$	70,250		$	49,517
ANNUITIES
SALES
Variable Annuity	$	73,731		$	81,206	$	76,299	$	91,526	$	79,671	$	73,731		$	79,671
Immediate Annuity		45,045			49,113		59,292		73,057		55,201		45,045			55,201
Single Premium Deferred Annuity		0			0		151,172		124,688		75,838		-			75,838
Market Value Adjusted Annuity		28,373			58,464		112,511		99,166		105,195		28,373			105,195
Equity Indexed Annuity		18,672			29,002		16,975		12,648		7,628		18,672			7,628
Total	$	165,821		$	217,785	$	416,249	$	401,085	$	323,533	$	165,821		$	323,533
PRETAX OPERATING INCOME
Variable Annuity	$	5,280		$	5,425	$	3,484	$	5,701	$	4,673	$	5,280		$	4,673
Fixed Annuity		(539	)		725		1,867		2,702		933		(539	)		933
Total	$	4,741		$	6,150	$	5,351	$	8,403	$	5,606	$	4,741		$	5,606
DEPOSIT BALANCE
VA Fixed Annuity	$	223,265		$	218,951	$	209,135	$	206,237	$	194,479
VA Separate Account Annuity		2,382,736			2,331,932		2,424,837		2,559,452		2,594,554
Sub-total		2,606,001			2,550,883		2,633,972		2,765,689		2,789,033
Fixed Annuity		3,201,516			3,256,655		3,521,346		3,780,062		3,929,194
Total	$	5,807,517		$	5,807,538	$	6,155,318	$	6,545,751	$	6,718,227

PROTECTIVE LIFE CORPORATION
Annuities, Stable Value Contracts, and Asset Protection
Quarterly Earnings Trends (Dollars in thousands)
(Unaudited)
	1ST QTR			2ND QTR		3RD QTR			4TH QTR			1ST QTR		3 MOS			3 MOS
	2006			2006		2006			2006			2007		2006			2007
ANNUITIES
REVENUES
Gross Premiums and Policy Fees	$	8,144		$	8,000	$	7,794		$	8,136		$	8,262	$	8,144		$	8,262
Reinsurance Ceded		0			0		0			0			0		0			0
Net Premiums and Policy Fees		8,144			8,000		7,794			8,136			8,262		8,144			8,262
Net investment income		53,494			54,865		56,475			60,326			60,861		53,494			60,861
RIGL - Derivatives		(651	)		672		(1,808	)		(960	)		254		(651	)		254
RIGL - All Other Investments		(90	)		1,598		3,412			(223	)		1,664		(90	)		1,664
Other income		2,899			2,343		2,469			2,725			2,713		2,899			2,713
Total Revenues		63,796			67,478		68,342			70,004			73,754		63,796			73,754
BENEFITS & EXPENSES
Benefits and settlement expenses		47,313			46,883		48,233			48,809			55,949		47,313			55,949
Amortization of deferred policy acquisition costs and value of businesses acquired		5,126			7,383		7,778			7,585			5,128		5,126			5,128
Other operating expenses		6,706			7,013		4,761			5,116			5,997		6,706			5,997
Total Benefits and Expenses		59,145			61,279		60,772			61,510			67,074		59,145			67,074
INCOME BEFORE INCOME TAX		4,651			6,199		7,570			8,494			6,680		4,651			6,680
Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives		(651	)		672		(1,808	)		(960	)		254		(651	)		254
Add back: Derivative gains related to equity indexed annuities		(651	)		672		(1,808	)		(960	)		254		(651	)		254
Less: RIGL - All Other Investments		(90	)		1,598		3,412			(223	)		1,664		(90	)		1,664
Add back: Related amortization of deferred policy acquisition costs		0			1,549		1,193			(314	)		590		0			590
PRETAX OPERATING INCOME	$	4,741		$	6,150	$	5,351		$	8,403		$	5,606	$	4,741		$	5,606

		1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS			3 MOS
		2006			2006			2006			2006			2007			2006			2007
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		82,233			82,350			80,734			80,336			79,101			82,233			79,101
RIGL - Derivatives		312			98			(13	)		210			4,270			312			4,270
RIGL - All Other Investments		(5,166	)		612			4,534			574			(2,845	)		(5,166	)		(2,845	)
Other income		0			0			0			0			0			0			0
Total Revenues		77,379			83,060			85,255			81,120			80,526			77,379			80,526
BENEFITS & EXPENSES
Benefits and settlement expenses		67,463			68,415			68,154			65,819			64,719			67,463			64,719
Amortization of deferred policy acquisition costs and value of businesses acquired		1,229			1,136			1,064			1,009			1,168			1,229			1,168
Other operating expenses		1,197			999			1,087			1,008			1,028			1,197			1,028
Total Benefits and Expenses		69,889			70,550			70,305			67,836			66,915			69,889			66,915
INCOME BEFORE INCOME TAX		7,490			12,510			14,950			13,284			13,611			7,490			13,611
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives		312			98			(13	)		210			4,270			312			4,270
Less: RIGL-All Other Investments		(5,166	)		612			4,534			574			(2,845	)		(5,166	)		(2,845	)
PRETAX OPERATING INCOME	$	12,344		$	11,800		$	10,429		$	12,500		$	12,186		$	12,344		$	12,186
ASSET PROTECTION
REVENUES
Gross Premiums and Policy Fees	$	100,690		$	100,203		$	104,564		$	99,067		$	99,420		$	100,690		$	99,420
Reinsurance Ceded		(55,393	)		(53,997	)		(52,775	)		(46,126	)		(45.138	)		(55,393	)		(45,138	)
Net Premiums and Policy Fees		45,297			46,206			51,789			52,941			54,282			45,297			54,282
Net investment income		7,808			8,076			8,649			8,812			9,212			7,808			9,212
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		12,044			16,021			20,597			18,087			16,529			12,044			16,529
Total Revenues		65,149			70,303			81,035			79,840			80,023			65,149			80,023
BENEFITS & EXPENSES
Benefits and settlement expenses		22,209			22,870			26,137			27,202			25,815			22,209			25,815
Amortization of deferred policy acquisition costs and value of businesses acquired		16,920			16,321			20,713			17,111			20,703			16, 920			20,703
Other operating expenses		17,282			22,208			48,586			28,957			23,421			17,282			23,421
Total Benefits and Expenses		56,411			61,399			95,436			73,270			69,939			56,411			69,939
INCOME BEFORE INCOME TAX	$	8,738		$	8,904		$	(14,401	)	$	6,570		$	10,084		$	8,738		$	10,084

PROTECTIVE LIFE CORPORATION
Stable Value Contracts and Asset Protection Data
(Dollars in thousands)
(Unaudited)
	2006			2006			2006			2006			2007			3 MOS			3 MOS
	1ST QTR			2ND  QTR			3RD QTR			4TH QTR			1ST QTR			2006			2007
STABLE VALUE CONTRACTS
SALES
GIC	$	46,200		$	111,400		$	107,500		$	29,000		$	2,500		$	46,200		$	2,500
GFA - Direct Institutional		0			0			0			0			0			0			0
GFA - Non-Registered		0			0			0			0			0			0			0
GFA - Registered - Institutional		0			0			0			0			0			0			0
GFA - Registered - Retail		40,841			13,078			54,743			31,164			13,120			40,841			13,120
Total	$	87,041		$	124,478		$	162,243		$	60,164		$	15,620		$	87,041		$	15,620
DEPOSIT BALANCE
Quarter End Balance	$	5,873,092		$	5,764,856		$	5,515,633		$	5,513,464		$	5,055,382		$	5,873,092		$	5,055,382
Average Daily Balance	$	5,976,606		$	5,853,111		$	5,662,236		$	5,520,061		$	5,461,832		$	5,976,606		$	5,461,832
OPERATING SPREAD		0.84	%		0.82	%		0.75	%		0.93	%		0.92	%		0.84	%		0.92	%
	2006			2006			2006			2006			2007			3 MOS			3 MOS
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			2006			2007
ASSET PROTECTION
SALES
Credit	$	31,847		$	39,952		$	41,488		$	27,482		$	28,082		$	31,847		$	28,082
Service Contracts		53,717			73,347			79,183			73,534			72,937			53,717			72,937
Other		16,921			22,900			35,792			39,456			38,030			16,921			38,030
Total	$	102,485		$	136,199		$	156,463		$	140,472		$	139,049		$	102,485		$	139,049

PROTECTIVE LIFE CORPORATION
Corporate & Other Segment - Quarterly Earnings Trends
(Dollars in thousands)
(Unaudited)
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS			3 MOS
	2006			2006			2006			2006			2007			2006			2007
REVENUES
Gross Premiums and Policy Fees	$	10,510		$	9,309		$	9,253		$	9,231		$	9,169		$	10,510		$	9,169
Reinsurance Ceded		(4	)		(7	)		(8	)		(4	)		(4	)		(4	)		(4	)
Net Premiums and Policy Fees		10,506			9,302			9,245			9,227			9,165			10,506			9,165
Net investment income		28,187			26,343			31,610			27,347			36,419			28,187			36,419
RIGL - Derivatives		13,676			(5,569	)		5,063			12,619			(3,112	)		13,676			(3,112	)
RIGL - All Other Investments		10,409			12,453			(3,929	)		6,019			6,542			10,409			6,542
Other income		3,637			2,207			2,237			1,470			937			3,637			937
Total Revenues		66,415			44,736			44,226			56,682			49,951			66,415			49,951
BENEFITS & EXPENSES
Benefits and settlement expenses		9,270			8,353			20,265			9,347			10,069			9,270			10,069
Amortization of deferred policy acquisition costs and value of businesses acquired		955			868			813			752			129			955			129
Other operating expenses		27,099			30,625			26,597			30,829			37,953			27,099			37,953
Total Benefits and Expenses		37,324			39,846			47,675			40,928			48,151			37,324			48,151
INCOME BEFORE INCOME TAX		29,091			4,890			(3,449	)		15,754			1,800			29,091			1,800
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives		13,676			(5,569	)		5,063			12,619			(3,112	)		13,676			(3,112	)
Less: RIGL-All Other Investments, net of participating income		5,083			4,285			(3,929	)		6,019			3,392			5,083			3,392
Add back: Derivative gains related to corporate debt and investments		1,331			674			654			77			257			1,331			257
PRETAX OPERATING INCOME	$	11,663		$	6,848		$	(3,929	)	$	(2,807	)	$	1,777		$	11,663		$	1,777