SUPPLEMENTAL FINANCIAL INFORMATION
The following document contains supplemental quarterly statistical financial information for the quarter ended March 31, 2005. This document is dated May 2, 2005. 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 and related amortization and gains and losses related to certain derivative financial instruments, and the cumulative effect of change in accounting principle. Consolidated and segment operating income excludes net realized investment gains (losses) and the related amortization of deferred policy acquisition costs and gains (losses) on derivative instruments. Periodic settlements of interest rate swaps associated with corporate debt and certain investments are included in realized gains (losses) but are considered part of operating income because the swaps 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 generally accepted accounting principles, 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 measureshare 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.
PROTECTIVE LIFE CORPORATION | Draft | ||||||||||||||||||||||||||||||
Quarterly Financial Highlights | 5/2/2005 | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | Page 1 | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||||||||
Pretax Operating Income * | |||||||||||||||||||||||||||||||
| Life Marketing | $ | 46,116 | $ | 39,501 | $ | 42,905 | $ | 41,601 | $ | 43,597 | $ | 38,818 | $ | 41,881 | $ | 39,141 | $ | 41,601 | $ | 39,141 | |||||||||||
| Acquisitions | 24,281 | 24,831 | 23,266 | 21,203 | 23,461 | 21,262 | 21,374 | 21,035 | 21,203 | 21,035 | |||||||||||||||||||||
| Annuities | 2,991 | 2,633 | 4,034 | 2,813 | 4,975 | 4,008 | 4,671 | 4,064 | 2,813 | 4,064 | |||||||||||||||||||||
| Stable Value Contracts | 10,098 | 9,523 | 10,152 | 11,699 | 13,926 | 13,313 | 14,221 | 14,399 | 11,699 | 14,399 | |||||||||||||||||||||
| Asset Protection | 9,761 | 5,112 | 4,078 | 4,603 | 4,371 | 5,425 | 4,680 | 6,172 | 4,603 | 6,172 | |||||||||||||||||||||
| Corporate & Other | (22,561 | ) | (7,849 | ) | (2,502 | ) | 4,305 | 3,128 | 12,325 | 1,802 | 11,645 | 4,305 | 11,645 | ||||||||||||||||||
| Total Pretax Operating Income | $ | 70,686 | $ | 73,751 | $ | 81,933 | $ | 86,224 | $ | 93,458 | $ | 95,151 | $ | 88,629 | $ | 96,456 | $ | 86,224 | $ | 96,456 | |||||||||||
Balance Sheet Data | |||||||||||||||||||||||||||||||
| Total GAAP Assets | $ | 23,238,499 | $ | 23,242,879 | $ | 24,517,615 | $ | 25,372,264 | $ | 25,091,026 | $ | 25,936,586 | $ | 27,211,378 | $ | 27,863,074 | |||||||||||||||
| Share Owners' Equity | $ | 2,026,445 | $ | 1,965,756 | $ | 2,002,144 | $ | 2,196,492 | $ | 1,884,869 | $ | 2,117,109 | $ | 2,166,327 | $ | 2,124,402 | |||||||||||||||
| Share Owners' Equity (excluding accumulated other comprehensive income) ** | $ | 1,564,910 | $ | 1,606,569 | $ | 1,669,559 | $ | 1,710,946 | $ | 1,763,863 | $ | 1,823,064 | $ | 1,870,016 | $ | 1,925,428 | |||||||||||||||
Stock Data | |||||||||||||||||||||||||||||||
| Closing Price | $ | 28.55 | $ | 26.75 | $ | 29.85 | $ | 37.45 | $ | 38.67 | $ | 39.31 | $ | 42.69 | $ | 39.30 | $ | 37.45 | $ | 39.30 | |||||||||||
| Average Shares Outstanding | |||||||||||||||||||||||||||||||
| Basic | 70,004,109 | 70,091,080 | 70,079,471 | 70,142,108 | 70,284,893 | 70,337,248 | 70,431,763 | 70,474,337 | 70,142,108 | 70,474,337 | |||||||||||||||||||||
| Diluted | 70,561,795 | 70,722,885 | 70,806,034 | 70,887,591 | 71,030,983 | 71,115,468 | 71,221,826 | 71,273,760 | 70,887,591 | 71,273,760 | |||||||||||||||||||||
| * "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 | 5/2/2005 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Page 2 | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | 397,652 | $ | 424,590 | $ | 460,976 | $ | 443,796 | $ | 456,088 | $ | 460,784 | $ | 480,628 | $ | 472,143 | $ | 443,796 | $ | 472,143 | |||||||||||
| Reinsurance Ceded | (205,268 | ) | (237,996 | ) | (301,754 | ) | (249,339 | ) | (285,369 | ) | (276,736 | ) | (331,200 | ) | (284,913 | ) | (249,339 | ) | (284,913 | ) | |||||||||||
| Net Premiums and Policy Fees | 192,384 | 186,594 | 159,222 | 194,457 | 170,719 | 184,048 | 149,428 | 187,230 | 194,457 | 187,230 | |||||||||||||||||||||
| Net investment income | 262,744 | 248,915 | 261,392 | 264,608 | 265,899 | 279,271 | 274,439 | 287,953 | 264,608 | 287,953 | |||||||||||||||||||||
| RIGL - Derivatives | 4,334 | (9,048 | ) | 22,144 | 5,083 | 8,740 | 6,287 | (519 | ) | (6,368 | ) | 5,083 | (6,368 | ) | |||||||||||||||||
| RIGL - All Other Investments | 29,524 | 27,042 | 2,676 | 16,627 | (923 | ) | 8,181 | 4,420 | 27,878 | 16,627 | 27,878 | ||||||||||||||||||||
| Other income | 39,981 | 26,128 | 28,864 | 37,419 | 37,563 | 40,921 | 41,907 | 43,416 | 37,419 | 43,416 | |||||||||||||||||||||
| Total Revenues | 528,967 | 479,631 | 474,298 | 518,194 | 481,998 | 518,708 | 469,675 | 540,109 | 518,194 | 540,109 | |||||||||||||||||||||
BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 304,933 | 281,693 | 267,675 | 287,316 | 282,469 | 288,455 | 272,197 | 300,434 | 287,316 | 300,434 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 64,803 | 56,241 | 48,304 | 59,794 | 45,053 | 52,375 | 42,908 | 74,251 | 59,794 | 74,251 | |||||||||||||||||||||
| Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Other operating expenses | 58,697 | 51,872 | 45,946 | 59,726 | 46,769 | 63,177 | 53,419 | 60,456 | 59,726 | 60,456 | |||||||||||||||||||||
| Interest on indebtedness | 11,242 | 11,033 | 11,084 | 11,959 | 12,337 | 12,435 | 12,985 | 13,098 | 11,959 | 13,098 | |||||||||||||||||||||
| Total Benefits and Expenses | 439,675 | 400,839 | 373,009 | 418,795 | 386,628 | 416,442 | 381,509 | 448,239 | 418,795 | 448,239 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | 89,292 | 78,792 | 101,289 | 99,399 | 95,370 | 102,266 | 88,166 | 91,870 | 99,399 | 91,870 | |||||||||||||||||||||
| Income tax expense | 29,916 | 26,383 | 33,729 | 34,094 | 34,075 | 35,793 | 30,858 | 31,787 | 34,094 | 31,787 | |||||||||||||||||||||
| Change in Acct Principle | 0 | 0 | 0 | (15,801 | ) | 0 | 0 | 0 | 0 | (15,801 | ) | - | |||||||||||||||||||
NET INCOME | $ | 59,376 | $ | 52,409 | $ | 67,560 | $ | 49,504 | $ | 61,295 | $ | 66,473 | $ | 57,308 | $ | 60,083 | $ | 49,504 | $ | 60,083 | |||||||||||
PER SHARE DATA FOR QUARTER | |||||||||||||||||||||||||||||||
| Operating income-diluted * | $ | 0.67 | $ | 0.70 | $ | 0.77 | $ | 0.80 | $ | 0.84 | $ | 0.88 | $ | 0.80 | $ | 0.88 | |||||||||||||||
| RIGL - Derivatives net of gains related to corp debt and investments | (0.01 | ) | (0.13 | ) | 0.16 | 0.00 | 0.03 | 0.02 | (0.05 | ) | (0.09 | ) | |||||||||||||||||||
| RIGL - All Other Investments | 0.19 | 0.17 | 0.02 | 0.12 | (0.01 | ) | 0.04 | 0.05 | 0.05 | ||||||||||||||||||||||
| Change in Accounting Principle | 0.00 | 0.00 | 0.00 | (0.22 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
| Net income-diluted | $ | 0.85 | $ | 0.74 | $ | 0.95 | $ | 0.70 | $ | 0.86 | $ | 0.94 | $ | 0.80 | $ | 0.84 | |||||||||||||||
| Average shares outstanding-diluted | 70,561,795 | 70,722,885 | 70,806,034 | 70,887,591 | 71,030,983 | 71,115,468 | 71,221,826 | 71,273,760 | |||||||||||||||||||||||
| Dividends paid | $ | 0.160 | $ | 0.160 | $ | 0.160 | $ | 0.160 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | |||||||||||||||
PER SHARE DATA FOR YTD | |||||||||||||||||||||||||||||||
| Operating income-diluted * | $ | 1.32 | $ | 2.02 | $ | 2.79 | $ | 0.80 | $ | 1.64 | $ | 2.52 | $ | 3.32 | $ | 0.88 | $ | 0.80 | $ | 0.88 | |||||||||||
| RIGL - Derivatives net of gains related to corp debt and investments | (0.11 | ) | (0.24 | ) | (0.08 | ) | 0.00 | 0.03 | 0.05 | 0.00 | (0.09 | ) | - | (0.09 | ) | ||||||||||||||||
| RIGL - All Other Investments | 0.17 | 0.34 | 0.36 | 0.12 | 0.11 | 0.15 | 0.20 | 0.05 | 0.12 | 0.05 | |||||||||||||||||||||
| Change in Accounting Principle | 0.00 | 0.00 | 0.00 | (0.22 | ) | (0.22 | ) | (0.22 | ) | (0.22 | ) | 0.00 | (0.22 | ) | - | ||||||||||||||||
| Net income-diluted | $ | 1.38 | $ | 2.12 | $ | 3.07 | $ | 0.70 | $ | 1.56 | $ | 2.50 | $ | 3.30 | $ | 0.84 | $ | 0.70 | $ | 0.84 | |||||||||||
| Average shares outstanding-diluted | 70,522,838 | 70,590,253 | 70,644,642 | 70,887,591 | 70,959,287 | 71,011,727 | 71,064,539 | 71,273,760 | 70,887,591 | 71,273,760 | |||||||||||||||||||||
| Dividends paid | $ | 0.310 | $ | 0.470 | $ | 0.630 | $ | 0.160 | $ | 0.335 | $ | 0.510 | $ | 0.685 | $ | 0.175 | $ | 0.160 | $ | 0.175 | |||||||||||
| * "Operating Income" is a non-GAAP financial measure. "Net Income" is a GAAP financial measure to which "Operating Income" may be compared. | |||||||||||||||||||||||||||||||
PROTECTIVE LIFE CORPORATION | Draft | ||||||||||||||||||||||||
GAAP Consolidated Balance Sheets | 5/2/2005 | ||||||||||||||||||||||||
(Dollars in thousands) | Page 3 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | ||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
| Fixed maturities | $ | 12,504,655 | $ | 12,452,180 | $ | 13,355,911 | $ | 13,875,517 | $ | 13,295,606 | $ | 13,679,358 | $ | 14,412,605 | $ | 15,263,694 | |||||||||
| Equity securities | 56,248 | 52,460 | 46,731 | 58,362 | 57,802 | 59,635 | 58,941 | 59,605 | |||||||||||||||||
| Mortgage loans | 2,543,013 | 2,678,360 | 2,733,722 | 2,746,706 | 2,836,683 | 2,904,729 | 3,005,418 | 3,042,584 | |||||||||||||||||
| Investment real estate | 16,930 | 16,781 | 18,126 | 108,098 | 107,163 | 107,220 | 107,246 | 104,986 | |||||||||||||||||
| Policy loans | 532,981 | 523,869 | 502,748 | 492,782 | 486,661 | 485,282 | 482,780 | 472,345 | |||||||||||||||||
| Other long-term investments | 258,897 | 246,177 | 249,494 | 231,161 | 197,246 | 217,270 | 259,025 | 222,943 | |||||||||||||||||
| Long-term investments | 15,912,724 | 15,969,827 | 16,906,732 | 17,512,626 | 16,981,161 | 17,453,494 | 18,326,015 | 19,166,157 | |||||||||||||||||
| Short-term investments | 804,923 | 582,830 | 519,419 | 516,988 | 694,002 | 1,042,278 | 1,059,557 | 816,335 | |||||||||||||||||
| Total investments | 16,717,647 | 16,552,657 | 17,426,151 | 18,029,614 | 17,675,163 | 18,495,772 | 19,385,572 | 19,982,492 | |||||||||||||||||
| Cash | 91,093 | 105,019 | 136,698 | 114,972 | 105,518 | 117,118 | 130,596 | 53,673 | |||||||||||||||||
| Accrued investment income | 185,300 | 194,115 | 189,232 | 198,564 | 194,403 | 204,977 | 196,076 | 202,008 | |||||||||||||||||
| Accounts and premiums receivable | 63,464 | 55,879 | 57,944 | 95,943 | 53,958 | 51,504 | 44,364 | 50,271 | |||||||||||||||||
| Reinsurance receivable | 2,270,817 | 2,299,140 | 2,350,606 | 2,473,372 | 2,526,722 | 2,631,037 | 2,750,260 | 2,835,979 | |||||||||||||||||
| Deferred policy acquisition costs | 1,690,297 | 1,774,727 | 1,817,990 | 1,824,319 | 1,886,854 | 1,792,335 | 1,821,972 | 1,913,803 | |||||||||||||||||
| Goodwill | 47,312 | 47,312 | 47,312 | 46,619 | 46,619 | 46,619 | 46,619 | 46,619 | |||||||||||||||||
| Property and equipment, net | 46,392 | 45,663 | 45,640 | 45,143 | 46,821 | 46,359 | 45,454 | 44,520 | |||||||||||||||||
| Other assets | 266,272 | 201,738 | 225,235 | 243,275 | 240,139 | 243,972 | 264,512 | 259,622 | |||||||||||||||||
| Assets Related to Separate Accounts | |||||||||||||||||||||||||
| Variable Annuity | 1,718,478 | 1,813,738 | 2,045,038 | 2,113,413 | 2,121,517 | 2,110,082 | 2,308,858 | 2,256,920 | |||||||||||||||||
| Variable Universal Life | 137,027 | 148,511 | 171,408 | 182,665 | 188,963 | 192,478 | 217,095 | 217,167 | |||||||||||||||||
| Other | 4,400 | 4,380 | 4,361 | 4,365 | 4,349 | 4,333 | 0 | 0 | |||||||||||||||||
TOTAL ASSETS | $ | 23,238,499 | $ | 23,242,879 | $ | 24,517,615 | $ | 25,372,264 | $ | 25,091,026 | $ | 25,936,586 | $ | 27,211,378 | $ | 27,863,074 | |||||||||
PROTECTIVE LIFE CORPORATION | Draft | ||||||||||||||||||||||||
GAAP Consolidated Balance Sheets | 5/2/2005 | ||||||||||||||||||||||||
(Dollars in thousands) | Page 4 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
LIABILITIES AND SHARE-OWNERS' EQUITY | |||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | ||||||||||||||||||
LIABILITIES | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | |||||||||||||||||
| Policy liabilities and accruals | |||||||||||||||||||||||||
| Future policy benefits and claims | $ | 8,626,989 | $ | 8,752,643 | $ | 8,948,131 | $ | 9,279,904 | $ | 9,473,878 | $ | 9,682,429 | $ | 10,014,106 | $ | 10,222,011 | |||||||||
| Unearned premiums | 733,379 | 733,291 | 728,190 | 643,831 | 634,779 | 635,364 | 666,560 | 673,841 | |||||||||||||||||
| Stable value product deposits | 4,214,470 | 4,135,212 | 4,676,531 | 4,923,231 | 4,921,166 | 5,143,367 | 5,562,997 | 5,670,355 | |||||||||||||||||
| Annuity deposits | 3,636,423 | 3,538,368 | 3,480,577 | 3,412,553 | 3,419,225 | 3,429,473 | 3,463,477 | 3,433,293 | |||||||||||||||||
| Other policyholders' funds | 164,840 | 160,946 | 158,875 | 159,458 | 157,612 | 155,952 | 151,660 | 151,572 | |||||||||||||||||
| Securities sold under repurchase agreements | 0 | 111,725 | 0 | 8,660 | 0 | 0 | 0 | 0 | |||||||||||||||||
| Other liabilities | 969,069 | 901,997 | 859,034 | 799,288 | 884,200 | 950,556 | 1,062,706 | 1,556,637 | |||||||||||||||||
| Accrued income taxes | (19,843 | ) | (43,154 | ) | (34,261 | ) | 42,262 | (12,074 | ) | (30,943 | ) | 13,195 | 20,544 | ||||||||||||
| Deferred income taxes | 374,306 | 362,991 | 377,990 | 412,794 | 210,912 | 329,272 | 312,544 | 265,221 | |||||||||||||||||
| Debt | 436,394 | 440,344 | 461,329 | 376,457 | 385,449 | 401,541 | 451,433 | 451,424 | |||||||||||||||||
| Liabilities related to variable interest entities | 0 | 0 | 400,000 | 477,128 | 476,591 | 475,953 | 482,434 | 481,921 | |||||||||||||||||
| Subordinated debt securities | 215,000 | 215,000 | 221,650 | 324,743 | 324,743 | 324,743 | 324,743 | 324,743 | |||||||||||||||||
| Minority interest - subsidiaries | 1,122 | 1,131 | 16,618 | 15,020 | 14,847 | 14,877 | 13,243 | 13,023 | |||||||||||||||||
| Liabilities related to separate accounts | |||||||||||||||||||||||||
| Variable annuity | 1,718,478 | 1,813,738 | 2,045,038 | 2,113,413 | 2,121,517 | 2,110,082 | 2,308,858 | 2,256,920 | |||||||||||||||||
| Variable universal life | 137,027 | 148,511 | 171,408 | 182,665 | 188,963 | 192,478 | 217,095 | 217,167 | |||||||||||||||||
| Other | 4,400 | 4,380 | 4,361 | 4,365 | 4,349 | 4,333 | 0 | 0 | |||||||||||||||||
| TOTAL LIABILITIES | $ | 21,212,054 | $ | 21,277,123 | $ | 22,515,471 | $ | 23,175,772 | $ | 23,206,157 | $ | 23,819,477 | $ | 25,045,051 | $ | 25,738,672 | |||||||||
SHARE-OWNERS' EQUITY | |||||||||||||||||||||||||
| Preferred stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
| Common stock | 36,626 | 36,626 | 36,626 | 36,626 | 36,626 | 36,626 | 36,626 | 36,626 | |||||||||||||||||
| Additional paid-in capital | 412,282 | 412,368 | 418,351 | 419,147 | 423,257 | 425,181 | 426,927 | 433,467 | |||||||||||||||||
| Treasury stock | (15,578 | ) | (15,558 | ) | (15,275 | ) | (13,931 | ) | (13,783 | ) | (13,684 | ) | (13,632 | ) | (13,041 | ) | |||||||||
| Stock held in trust | (3,149 | ) | (2,979 | ) | (2,788 | ) | (2,365 | ) | (2,855 | ) | 0 | 0 | 0 | ||||||||||||
| Unallocated ESOP shares | (2,367 | ) | (2,367 | ) | (2,367 | ) | (1,989 | ) | (1,989 | ) | (1,989 | ) | (1,989 | ) | (1,610 | ) | |||||||||
| Retained earnings | 1,137,096 | 1,178,479 | 1,235,012 | 1,273,458 | 1,322,607 | 1,376,930 | 1,422,084 | 1,469,986 | |||||||||||||||||
| Accumulated other comprehensive income | 461,535 | 359,187 | 332,585 | 485,546 | 121,006 | 294,045 | 296,311 | 198,974 | |||||||||||||||||
| Total Share-owners' Equity | 2,026,445 | 1,965,756 | 2,002,144 | 2,196,492 | 1,884,869 | 2,117,109 | 2,166,327 | 2,124,402 | |||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 23,238,499 | $ | 23,242,879 | $ | 24,517,615 | $ | 25,372,264 | $ | 25,091,026 | $ | 25,936,586 | $ | 27,211,378 | $ | 27,863,074 | |||||||||
SHARE-OWNERS' EQUITY PER SHARE | |||||||||||||||||||||||||
| Total Share-owners' Equity | $ | 29.41 | $ | 28.53 | $ | 29.02 | $ | 31.67 | $ | 27.16 | $ | 30.49 | $ | 31.19 | $ | 30.52 | |||||||||
| Accumulated other comprehensive income | 6.70 | 5.21 | 4.82 | 7.00 | 1.74 | 4.23 | 4.27 | 2.86 | |||||||||||||||||
| Excluding accumulated other comprehensive income * | $ | 22.71 | $ | 23.31 | $ | 24.20 | $ | 24.67 | $ | 25.41 | $ | 26.26 | $ | 26.93 | $ | 27.66 | |||||||||
| Total Share-owners' Equity | $ | 2,026,445 | $ | 1,965,756 | $ | 2,002,144 | $ | 2,196,492 | $ | 1,884,869 | $ | 2,117,109 | $ | 2,166,327 | $ | 2,124,402 | |||||||||
| Accumulated other comprehensive income | 461,535 | 359,187 | 332,585 | 485,546 | 121,006 | 294,045 | 296,311 | 198,974 | |||||||||||||||||
| Share-owners' Equity (excluding accumulated other comprehensive income) * | $ | 1,564,910 | $ | 1,606,569 | $ | 1,669,559 | $ | 1,710,946 | $ | 1,763,863 | $ | 1,823,064 | $ | 1,870,016 | $ | 1,925,428 | |||||||||
| Common shares outstanding | 68,907,294 | 68,912,705 | 68,991,701 | 69,366,395 | 69,407,945 | 69,435,440 | 69,449,889 | 69,615,285 | |||||||||||||||||
| Treasury Stock shares | 4,344,666 | 4,339,255 | 4,260,259 | 3,885,565 | 3,844,015 | 3,816,520 | 3,802,071 | 3,636,675 | |||||||||||||||||
| * "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 | 5/2/2005 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Page 5 | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||||||||
CALCULATION OF NET INCOME PER SHARE | |||||||||||||||||||||||||||||||
| Net income | $ | 59,376 | $ | 52,409 | $ | 67,560 | $ | 49,504 | $ | 61,295 | $ | 66,473 | $ | 57,308 | $ | 60,083 | $ | 49,504 | $ | 60,083 | |||||||||||
| Average shares outstanding-basic | 70,004,109 | 70,091,080 | 70,079,471 | 70,142,108 | 70,284,893 | 70,337,248 | 70,431,763 | 70,474,337 | 70,142,108 | 70,474,337 | |||||||||||||||||||||
| Average shares outstanding-diluted | 70,561,795 | 70,722,885 | 70,806,034 | 70,887,591 | 71,030,983 | 71,115,468 | 71,221,826 | 71,273,760 | 70,887,591 | 71,273,760 | |||||||||||||||||||||
| Net income per share-basic | $ | 0.85 | $ | 0.75 | $ | 0.96 | $ | 0.71 | $ | 0.87 | $ | 0.94 | $ | 0.82 | $ | 0.85 | $ | 0.71 | $ | 0.85 | |||||||||||
| Net income per share-diluted | $ | 0.85 | $ | 0.74 | $ | 0.95 | $ | 0.70 | $ | 0.86 | $ | 0.94 | $ | 0.80 | $ | 0.84 | $ | 0.70 | $ | 0.84 | |||||||||||
| Income from continuing operations | $ | 59,376 | $ | 52,409 | $ | 67,560 | $ | 65,305 | $ | 61,295 | $ | 66,473 | $ | 57,308 | $ | 60,083 | $ | 65,305 | $ | 60,083 | |||||||||||
| EPS (basic) | $ | 0.85 | $ | 0.75 | $ | 0.96 | $ | 0.93 | $ | 0.87 | $ | 0.95 | $ | 0.81 | $ | 0.85 | $ | 0.93 | $ | 0.85 | |||||||||||
| EPS (diluted) | $ | 0.85 | $ | 0.74 | $ | 0.95 | $ | 0.92 | $ | 0.86 | $ | 0.94 | $ | 0.80 | $ | 0.84 | $ | 0.92 | $ | 0.84 | |||||||||||
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE | |||||||||||||||||||||||||||||||
| RIGL - Derivatives | $ | 4,334 | $ | (9,048 | ) | $ | 22,144 | $ | 5,083 | $ | 8,740 | $ | 6,287 | $ | (519 | ) | $ | (6,368 | ) | $ | 5,083 | $ | (6,368 | ) | |||||||
| Derivative Gains related to Corporate Debt and Investments | (5,885 | ) | (4,786 | ) | (4,782 | ) | (4,875 | ) | (5,354 | ) | (4,684 | ) | (4,309 | ) | (3,684 | ) | (4,875 | ) | (3,684 | ) | |||||||||||
| RIGL - All Other Investments | 29,524 | 27,042 | 2,676 | 16,627 | (923 | ) | 8,181 | 4,420 | 27,878 | 16,627 | 27,878 | ||||||||||||||||||||
| Related amortization of DAC | (9,367 | ) | (8,167 | ) | (682 | ) | (3,660 | ) | (551 | ) | (2,669 | ) | (55 | ) | (22,412 | ) | (3,660 | ) | (22,412 | ) | |||||||||||
| 18,606 | 5,041 | 19,356 | 13,175 | 1,912 | 7,115 | (463 | ) | (4,586 | ) | 13,175 | (4,586 | ) | |||||||||||||||||||
| Tax effect | (6,512 | ) | (1,764 | ) | (6,775 | ) | (4,611 | ) | (669 | ) | (2,491 | ) | 162 | 1,605 | (4,611 | ) | 1,605 | ||||||||||||||
| $ | 12,094 | $ | 3,277 | $ | 12,581 | $ | 8,564 | $ | 1,243 | $ | 4,624 | $ | (301 | ) | $ | (2,981 | ) | $ | 8,564 | $ | (2,981 | ) | |||||||||
| RIGL - Derivatives per share-diluted | $ | (0.01 | ) | $ | (0.13 | ) | $ | 0.16 | $ | - | $ | 0.03 | $ | 0.02 | $ | (0.05 | ) | $ | (0.09 | ) | $ | - | $ | (0.09 | ) | ||||||
| RIGL - All Other Investments per share-diluted | $ | 0.19 | $ | 0.17 | $ | 0.02 | $ | 0.12 | $ | (0.01 | ) | $ | 0.04 | $ | 0.05 | $ | 0.05 | $ | 0.12 | $ | 0.05 | ||||||||||
OPERATING INCOME PER SHARE * | |||||||||||||||||||||||||||||||
| Net income per share-diluted | $ | 0.85 | $ | 0.74 | $ | 0.95 | $ | 0.70 | $ | 0.86 | $ | 0.94 | $ | 0.80 | $ | 0.84 | $ | 0.70 | $ | 0.84 | |||||||||||
| RIGL - Derivatives per share-diluted | (0.01 | ) | (0.13 | ) | 0.16 | - | 0.03 | 0.02 | (0.05 | ) | (0.09 | ) | - | (0.09 | ) | ||||||||||||||||
| RIGL - All Other Investments per share-diluted | 0.19 | 0.17 | 0.02 | 0.12 | (0.01 | ) | 0.04 | 0.05 | 0.05 | 0.12 | 0.05 | ||||||||||||||||||||
| Change in accounting principle | - | - | - | (0.22 | ) | - | - | - | - | (0.22 | ) | - | |||||||||||||||||||
| Operating income per share-diluted | $ | 0.67 | $ | 0.70 | $ | 0.77 | $ | 0.80 | $ | 0.84 | $ | 0.88 | $ | 0.80 | $ | 0.88 | $ | 0.80 | $ | 0.88 | |||||||||||
NET OPERATING INCOME * | |||||||||||||||||||||||||||||||
| Net income | $ | 59,376 | $ | 52,409 | $ | 67,560 | $ | 49,504 | $ | 61,295 | $ | 66,473 | $ | 57,308 | $ | 60,083 | $ | 49,504 | $ | 60,083 | |||||||||||
| RIGL - Derivatives net of tax & gains related to corp debt & investments | (1,008 | ) | (8,992 | ) | 11,285 | 135 | 2,201 | 1,042 | (3,138 | ) | (6,534 | ) | 135 | (6,534 | ) | ||||||||||||||||
| RIGL - All Other Investments net of tax and amortization | 13,102 | 12,269 | 1,296 | 8,429 | (959 | ) | 3,583 | 2,838 | 3,553 | 8,429 | 3,553 | ||||||||||||||||||||
| Change in accounting principle | - | - | - | (15,801 | ) | - | - | - | - | (15,801 | ) | - | |||||||||||||||||||
| Net operating income | $ | 47,282 | $ | 49,132 | $ | 54,979 | $ | 56,741 | $ | 60,053 | $ | 61,848 | $ | 57,608 | $ | 63,064 | $ | 56,741 | $ | 63,064 | |||||||||||
PRETAX OPERATING INCOME ** | |||||||||||||||||||||||||||||||
| Income before income tax | $ | 89,292 | $ | 78,792 | $ | 101,289 | $ | 99,399 | $ | 95,370 | $ | 102,266 | $ | 88,166 | $ | 91,870 | $ | 99,399 | $ | 91,870 | |||||||||||
| RIGL - Derivatives | 4,334 | (9,048 | ) | 22,144 | 5,083 | 8,740 | 6,287 | (519 | ) | (6,368 | ) | 5,083 | (6,368 | ) | |||||||||||||||||
| Derivative Gains related to Corporate Debt and Investments | (5,885 | ) | (4,786 | ) | (4,782 | ) | (4,875 | ) | (5,354 | ) | (4,684 | ) | (4,309 | ) | (3,684 | ) | (4,875 | ) | (3,684 | ) | |||||||||||
| RIGL - All Other Investments | 29,524 | 27,042 | 2,676 | 16,627 | (923 | ) | 8,181 | 4,420 | 27,878 | 16,627 | 27,878 | ||||||||||||||||||||
| Related amortization of DAC | (9,367 | ) | (8,167 | ) | (682 | ) | (3,660 | ) | (551 | ) | (2,669 | ) | (55 | ) | (22,412 | ) | (3,660 | ) | (22,412 | ) | |||||||||||
| Pretax operating income | $ | 70,686 | $ | 73,751 | $ | 81,933 | $ | 86,224 | $ | 93,458 | $ | 95,151 | $ | 88,629 | $ | 96,456 | $ | 86,224 | $ | 96,456 | |||||||||||
| * "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 | 5/2/2005 | ||||||||||||||||||||||||
(Dollars in millions) | Page 6 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | ||||||||||||||||||
Total Portfolio | |||||||||||||||||||||||||
| Fixed Income | $ | 12,504.7 | $ | 12,452.2 | $ | 13,355.9 | $ | 13,875.5 | $ | 13,295.6 | $ | 13,679.4 | $ | 14,412.6 | $ | 15,263.7 | |||||||||
| Mortgage Loans | 2,543.0 | 2,678.4 | 2,733.7 | 2,746.7 | 2,836.7 | 2,904.7 | 3,005.4 | 3,042.6 | |||||||||||||||||
| Real Estate | 16.9 | 16.8 | 18.1 | 108.1 | 107.2 | 107.2 | 107.3 | 105.0 | |||||||||||||||||
| Equities | 56.2 | 52.4 | 46.7 | 58.4 | 57.8 | 59.6 | 58.9 | 59.6 | |||||||||||||||||
| Policy Loans | 533.0 | 523.9 | 502.8 | 492.8 | 486.7 | 485.3 | 482.8 | 472.4 | |||||||||||||||||
| Short Term Investments | 804.9 | 582.8 | 519.4 | 517.0 | 694.0 | 1,042.3 | 1,059.6 | 816.3 | |||||||||||||||||
| Other Long Term Investments | 258.9 | 246.2 | 249.5 | 231.1 | 197.2 | 217.3 | 259.0 | 222.9 | |||||||||||||||||
| Total Invested Assets | $ | 16,717.6 | $ | 16,552.7 | $ | 17,426.1 | $ | 18,029.6 | $ | 17,675.2 | $ | 18,495.8 | $ | 19,385.6 | $ | 19,982.5 | |||||||||
Fixed Income | |||||||||||||||||||||||||
| Corporate Bonds | $ | 6,620.5 | $ | 6,516.6 | $ | 6,882.0 | $ | 6,951.2 | $ | 7,051.5 | $ | 7,200.4 | $ | 7,466.0 | $ | 7,198.0 | |||||||||
| Mortgage Backed Securities | 4,248.9 | 4,307.2 | 4,782.6 | 5,130.8 | 4,451.7 | 4,598.3 | 5,070.2 | 5,919.3 | |||||||||||||||||
| US Govt Bonds | 95.2 | 90.8 | 90.2 | 87.8 | 77.4 | 79.3 | 86.0 | 388.3 | |||||||||||||||||
| Public Utilities | 1,420.3 | 1,414.2 | 1,526.9 | 1,663.8 | 1,673.8 | 1,759.2 | 1,745.5 | 1,705.6 | |||||||||||||||||
| States, Municipals and Political Subdivisions | 23.6 | 27.3 | 27.1 | 27.5 | 26.9 | 27.7 | 30.4 | 49.6 | |||||||||||||||||
| Preferred Securities | 2.1 | 0.7 | 3.2 | 3.3 | 3.4 | 3.5 | 3.6 | 2.7 | |||||||||||||||||
| Convertibles and Bonds with Warrants | 94.1 | 95.4 | 43.9 | 11.1 | 10.9 | 11.0 | 10.9 | 0.2 | |||||||||||||||||
| Total Fixed Income Portfolio | $ | 12,504.7 | $ | 12,452.2 | $ | 13,355.9 | $ | 13,875.5 | $ | 13,295.6 | $ | 13,679.4 | $ | 14,412.6 | $ | 15,263.7 | |||||||||
Fixed Income - Quality | |||||||||||||||||||||||||
| AAA | 34.3 | % | 34.9 | % | 36.9 | % | 37.8 | % | 34.2 | % | 34.6 | % | 35.9 | % | 40.9 | % | |||||||||
| AA | 5.1 | % | 5.7 | % | 5.9 | % | 5.9 | % | 6.4 | % | 6.4 | % | 6.2 | % | 6.0 | % | |||||||||
| A | 22.2 | % | 22.8 | % | 22.9 | % | 21.8 | % | 23.5 | % | 23.5 | % | 22.2 | % | 21.0 | % | |||||||||
| BBB | 28.9 | % | 28.3 | % | 26.8 | % | 27.4 | % | 28.6 | % | 28.6 | % | 28.9 | % | 25.8 | % | |||||||||
| BB or Less | 9.5 | % | 8.3 | % | 7.5 | % | 7.1 | % | 7.3 | % | 6.9 | % | 6.8 | % | 6.3 | % | |||||||||
| Redeemable Preferred Stock | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Mortgage Loans - Type | |||||||||||||||||||||||||
| Retail | 76.0 | % | 74.2 | % | 74.7 | % | 73.0 | % | 73.2 | % | 71.2 | % | 70.7 | % | 69.6 | % | |||||||||
| Apartments | 7.2 | % | 8.0 | % | 7.9 | % | 9.4 | % | 9.2 | % | 10.1 | % | 10.2 | % | 11.7 | % | |||||||||
| Office Buildings | 7.2 | % | 8.4 | % | 8.0 | % | 8.3 | % | 8.7 | % | 8.7 | % | 9.2 | % | 9.4 | % | |||||||||
| Warehouses | 7.9 | % | 7.9 | % | 8.0 | % | 7.8 | % | 7.4 | % | 8.5 | % | 8.4 | % | 8.3 | % | |||||||||
| Miscellaneous | 1.7 | % | 1.5 | % | 1.4 | % | 1.5 | % | 1.5 | % | 1.5 | % | 1.5 | % | 1.0 | % | |||||||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Problem Mortgage Loans | |||||||||||||||||||||||||
| 60 Days Past Due | $ | 2.6 | $ | 0.0 | $ | 0.0 | $ | 7.5 | $ | 0.0 | $ | 5.4 | $ | 1.9 | $ | 1.9 | |||||||||
| 90 Days Past Due | 5.3 | 7.3 | 1.3 | 1.3 | 3.2 | 1.9 | 1.9 | 8.2 | |||||||||||||||||
| Renegotiated Loans | 5.7 | 5.7 | 5.7 | 6.9 | 5.7 | 5.7 | 5.6 | 5.4 | |||||||||||||||||
| Foreclosed Real Estate | 0.0 | 0.0 | 4.8 | 0.0 | 0.0 | 1.3 | 1.4 | 0.0 | |||||||||||||||||
| $ | 13.6 | $ | 13.0 | $ | 11.8 | $ | 15.7 | $ | 8.9 | $ | 14.3 | $ | 10.8 | $ | 15.5 | ||||||||||
PROTECTIVE LIFE CORPORATION | Draft | ||||||||||||||||||||||||||||||
Life Marketing and Acquisitions - Quarterly Earnings Trends | 5/2/2005 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Page 7 | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||||||||
INDIVIDUAL LIFE | |||||||||||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | 137,150 | $ | 147,848 | $ | 156,051 | $ | 155,620 | $ | 165,924 | �� | $ | 165,006 | $ | 171,228 | $ | 174,971 | $ | 155,620 | $ | 174,971 | ||||||||||
| Reinsurance Ceded | (90,880 | ) | (111,140 | ) | (135,537 | ) | (106,125 | ) | (136,547 | ) | (117,796 | ) | (141,985 | ) | (120,416 | ) | (106,125 | ) | (120,416 | ) | |||||||||||
| Net Premiums and Policy Fees | 46,270 | 36,708 | 20,514 | 49,495 | 29,377 | 47,210 | 29,243 | 54,555 | 49,495 | 54,555 | |||||||||||||||||||||
| Net investment income | 22,674 | 24,195 | 23,256 | 21,903 | 22,389 | 22,834 | 23,048 | 23,407 | 21,903 | 23,407 | |||||||||||||||||||||
| Realized investment gains (losses) | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other income | 16,972 | 13,613 | 15,239 | 21,243 | 22,348 | 25,151 | 26,053 | 28,556 | 21,243 | 28,556 | |||||||||||||||||||||
| Total Revenues | 85,916 | 74,516 | 59,009 | 92,641 | 74,114 | 95,195 | 78,344 | 106,518 | 92,641 | 106,518 | |||||||||||||||||||||
| BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 30,159 | 34,982 | 23,111 | 38,485 | 31,494 | 42,090 | 32,621 | 53,776 | 38,485 | 53,776 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 11,609 | 5,643 | 4,254 | 12,206 | 4,588 | 7,466 | 3,356 | 9,806 | 12,206 | 9,806 | |||||||||||||||||||||
| Amortization of goodwill | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | 12,218 | 12,704 | 8,736 | 20,442 | 15,000 | 27,787 | 21,719 | 23,810 | 20,442 | 23,810 | |||||||||||||||||||||
| Total Benefits and Expenses | 53,986 | 53,329 | 36,101 | 71,133 | 51,082 | 77,343 | 57,696 | 87,392 | 71,133 | 87,392 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAX | $ | 31,930 | $ | 21,187 | $ | 22,908 | $ | 21,508 | $ | 23,032 | $ | 17,852 | $ | 20,648 | $ | 19,126 | $ | 21,508 | $ | 19,126 | |||||||||||
WEST COAST | |||||||||||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | 64,663 | $ | 71,562 | $ | 92,610 | $ | 80,366 | $ | 85,007 | $ | 88,946 | $ | 114,792 | $ | 98,798 | $ | 80,366 | $ | 98,798 | |||||||||||
| Reinsurance Ceded | (51,021 | ) | (56,566 | ) | (88,596 | ) | (62,661 | ) | (68,525 | ) | (73,432 | ) | (111,136 | ) | (79,330 | ) | (62,661 | ) | (79,330 | ) | |||||||||||
| Net Premiums and Policy Fees | 13,642 | 14,996 | 4,014 | 17,705 | 16,482 | 15,514 | 3,656 | 19,468 | 17,705 | 19,468 | |||||||||||||||||||||
| Net investment income | 34,841 | 34,504 | 35,230 | 36,037 | 36,540 | 37,151 | 38,291 | 37,746 | 36,037 | 37,746 | |||||||||||||||||||||
| Realized investment gains (losses) | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other income | 9 | (43 | ) | 199 | (100 | ) | - | - | - | - | (100 | ) | - | ||||||||||||||||||
| Total Revenues | 48,492 | 49,457 | 39,443 | 53,642 | 53,022 | 52,665 | 41,947 | 57,214 | 53,642 | 57,214 | |||||||||||||||||||||
| BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 31,717 | 33,559 | 25,035 | 33,541 | 35,198 | 36,271 | 24,884 | 36,007 | 33,541 | 36,007 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 7,424 | 7,145 | 9,119 | 8,875 | 6,338 | 7,357 | 8,784 | 8,021 | 8,875 | 8,021 | |||||||||||||||||||||
| Amortization of goodwill | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | (4,835 | ) | (9,561 | ) | (14,708 | ) | (8,867 | ) | (9,079 | ) | (11,929 | ) | (12,954 | ) | (6,829 | ) | (8,867 | ) | (6,829 | ) | |||||||||||
| Total Benefits and Expenses | 34,306 | 31,143 | 19,446 | 33,549 | 32,457 | 31,699 | 20,714 | 37,199 | 33,549 | 37,199 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAX | $ | 14,186 | $ | 18,314 | $ | 19,997 | $ | 20,093 | $ | 20,565 | $ | 20,966 | $ | 21,233 | $ | 20,015 | $ | 20,093 | $ | 20,015 | |||||||||||
ACQUISITIONS | |||||||||||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | 71,326 | $ | 71,903 | $ | 73,614 | $ | 69,469 | $ | 69,659 | $ | 66,985 | $ | 70,281 | $ | 65,500 | $ | 69,469 | $ | 65,500 | |||||||||||
| Reinsurance Ceded | (18,531 | ) | (17,573 | ) | (21,264 | ) | (17,101 | ) | (17,840 | ) | (16,562 | ) | (20,559 | ) | (20,029 | ) | (17,101 | ) | (20,029 | ) | |||||||||||
| Net Premiums and Policy Fees | 52,795 | 54,330 | 52,350 | 52,368 | 51,819 | 50,423 | 49,722 | 45,471 | 52,368 | 45,471 | |||||||||||||||||||||
| Net investment income | 62,520 | 61,004 | 60,323 | 58,655 | 58,704 | 57,682 | 57,458 | 56,714 | 58,655 | 56,714 | |||||||||||||||||||||
| Realized investment gains (losses) | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other income | 1,542 | (329 | ) | 522 | 717 | 468 | 655 | 432 | 361 | 717 | 361 | ||||||||||||||||||||
| Total Revenues | 116,857 | 115,005 | 113,195 | 111,740 | 110,991 | 108,760 | 107,612 | 102,546 | 111,740 | 102,546 | |||||||||||||||||||||
| BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 72,951 | 72,500 | 73,698 | 73,020 | 71,340 | 71,571 | 71,425 | 66,399 | 73,020 | 66,399 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 8,474 | 7,817 | 6,318 | 7,849 | 7,476 | 7,056 | 6,271 | 7,071 | 7,849 | 7,071 | |||||||||||||||||||||
| Amortization of goodwill | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | 11,151 | 9,857 | 9,913 | 9,668 | 8,714 | 8,871 | 8,542 | 8,041 | 9,668 | 8,041 | |||||||||||||||||||||
| Total Benefits and Expenses | 92,576 | 90,174 | 89,929 | 90,537 | 87,530 | 87,498 | 86,238 | 81,511 | 90,537 | 81,511 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAX | $ | 24,281 | $ | 24,831 | $ | 23,266 | $ | 21,203 | $ | 23,461 | $ | 21,262 | $ | 21,374 | $ | 21,035 | $ | 21,203 | $ | 21,035 | |||||||||||
PROTECTIVE LIFE CORPORATION | Draft | |||||||||||||||||||||
Life Marketing and Annuities Data | 5/2/2005 | |||||||||||||||||||||
(Dollars in thousands) | Page 8 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
| 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||
INDIVIDUAL LIFE | ||||||||||||||||||||||
SALES BY PRODUCT | ||||||||||||||||||||||
| Term | $ | 24,687 | $ | 22,413 | $ | 21,085 | $ | 17,734 | $ | 14,564 | $ | 24,687 | $ | 14,564 | ||||||||
| U/L | 10,353 | 10,710 | 11,272 | 24,304 | 28,350 | 10,353 | 28,350 | |||||||||||||||
| VUL | 1,125 | 1,474 | 1,492 | 1,145 | 1,138 | 1,125 | 1,138 | |||||||||||||||
| Total | $ | 36,165 | $ | 34,597 | $ | 33,849 | $ | 43,183 | $ | 44,052 | $ | 36,165 | $ | 44,052 | ||||||||
SALES BY DISTRIBUTION | ||||||||||||||||||||||
| RSM System | $ | 12,740 | $ | 12,569 | $ | 12,616 | $ | 18,000 | $ | 17,309 | $ | 12,740 | $ | 17,309 | ||||||||
| Empire General | 16,733 | 15,027 | 14,130 | 13,171 | 14,073 | 16,733 | 14,073 | |||||||||||||||
| Stockbrokers | 6,059 | 6,780 | 7,018 | 11,854 | 12,670 | 6,059 | 12,670 | |||||||||||||||
| Direct Response | 633 | 221 | 85 | 158 | 0 | 633 | 0 | |||||||||||||||
| All Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Total | $ | 36,166 | $ | 34,597 | $ | 33,849 | $ | 43,183 | $ | 44,052 | $ | 36,165 | $ | 44,052 | ||||||||
WEST COAST | ||||||||||||||||||||||
SALES BY PRODUCT | ||||||||||||||||||||||
| Term | $ | 22,148 | $ | 19,794 | $ | 19,961 | $ | 24,060 | $ | 19,944 | $ | 22,148 | $ | 19,944 | ||||||||
| U/L | 7,344 | 8,556 | 5,058 | 6,972 | 4,397 | 7,344 | 4,397 | |||||||||||||||
| Total | $ | 29,492 | $ | 28,350 | $ | 25,019 | $ | 31,032 | $ | 24,341 | $ | 29,492 | $ | 24,341 | ||||||||
SALES BY DISTRIBUTION | ||||||||||||||||||||||
| BGA | $ | 26,014 | $ | 24,553 | $ | 23,678 | $ | 27,868 | $ | 22,100 | $ | 26,014 | $ | 22,100 | ||||||||
| BOLI | 3,478 | 3,797 | 1,341 | 3,164 | 2,241 | 3,478 | 2,241 | |||||||||||||||
| Total | $ | 29,492 | $ | 28,350 | $ | 25,019 | $ | 31,032 | $ | 24,341 | $ | 29,492 | $ | 24,341 | ||||||||
ANNUITIES | ||||||||||||||||||||||
SALES | ||||||||||||||||||||||
| Variable Annuity | $ | 61,724 | $ | 63,317 | $ | 74,231 | $ | 83,654 | $ | 77,003 | $ | 61,724 | $ | 77,003 | ||||||||
| Immediate Annuity | 10,966 | 33,576 | 23,216 | 150,179 | 32,476 | 10,966 | 32,476 | |||||||||||||||
| Market Value Adjusted Annuity | 5,128 | 74,729 | 83,175 | 62,201 | 26,483 | 5,128 | 26,483 | |||||||||||||||
| Equity Indexed Annuity | 609 | 0 | 609 | |||||||||||||||||||
| Total | $ | 77,818 | $ | 171,622 | $ | 180,622 | $ | 296,034 | $ | 136,571 | $ | 77,818 | $ | 136,571 | ||||||||
PRETAX OPERATING INCOME | ||||||||||||||||||||||
| Variable Annuity | $ | 625 | $ | 3,492 | $ | 2,901 | $ | 3,417 | $ | 3,735 | $ | 625 | $ | 3,735 | ||||||||
| Fixed Annuity | 2,188 | 1,483 | 1,107 | 1,254 | 329 | 2,188 | 329 | |||||||||||||||
| Total | $ | 2,813 | $ | 4,975 | $ | 4,008 | $ | 4,671 | $ | 4,064 | $ | 2,813 | $ | 4,064 | ||||||||
DEPOSIT BALANCE | ||||||||||||||||||||||
| VA Fixed Annuity | $ | 275,462 | $ | 269,353 | $ | 269,363 | $ | 262,295 | $ | 251,822 | ||||||||||||
| VA Separate Account Annuity | 2,012,396 | 2,026,781 | 2,023,325 | 2,222,102 | 2,176,065 | |||||||||||||||||
| Sub-total | 2,287,858 | 2,296,134 | 2,292,688 | 2,484,397 | 2,427,887 | |||||||||||||||||
| Fixed Annuity | 2,877,159 | 2,930,544 | 2,986,179 | 3,173,862 | 3,195,043 | |||||||||||||||||
| Total | $ | 5,165,017 | $ | 5,226,678 | $ | 5,278,867 | $ | 5,658,259 | $ | 5,622,930 | ||||||||||||
PROTECTIVE LIFE CORPORATION | Draft | ||||||||||||||||||||||||||||||
Annuities, Stable Value Contracts, and Asset Protection | 5/2/2005 | ||||||||||||||||||||||||||||||
Quarterly Earnings Trends (Dollars in thousands) | Page 9 | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||||||||
ANNUITIES | |||||||||||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | 6,387 | $ | 6,864 | $ | 7,131 | $ | 7,628 | $ | 7,594 | $ | 7,370 | $ | 7,749 | $ | 7,840 | $ | 7,628 | $ | 7,840 | |||||||||||
| Reinsurance Ceded | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Net Premiums and Policy Fees | 6,387 | 6,864 | 7,131 | 7,628 | 7,594 | 7,370 | 7,749 | 7,840 | 7,628 | 7,840 | |||||||||||||||||||||
| Net investment income | 57,780 | 54,660 | 53,450 | 51,588 | 51,523 | 52,854 | 54,923 | 56,150 | 51,588 | 56,150 | |||||||||||||||||||||
| RIGL - Derivatives | - | - | - | - | - | - | - | (162 | ) | - | (162 | ) | |||||||||||||||||||
| RIGL - All Other Investments | 11,206 | 8,582 | 2,918 | 6,004 | 290 | 3,524 | 55 | 27,624 | 6,004 | 27,624 | |||||||||||||||||||||
| Other income | 2,075 | 2,368 | 2,361 | 1,785 | 1,555 | 1,556 | 2,108 | 1,726 | 1,785 | 1,726 | |||||||||||||||||||||
| Total Revenues | 77,448 | 72,474 | 65,860 | 67,005 | 60,962 | 65,304 | 64,835 | 93,178 | 67,005 | 93,178 | |||||||||||||||||||||
| BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 51,339 | 48,385 | 45,245 | 46,046 | 44,456 | 46,526 | 46,243 | 48,080 | 46,046 | 48,080 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 13,967 | 13,508 | 6,335 | 9,057 | 7,119 | 8,459 | 7,636 | 29,638 | 9,057 | 29,638 | |||||||||||||||||||||
| Amortization of goodwill | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | 7,312 | 7,533 | 8,010 | 6,745 | 4,673 | 5,456 | 6,285 | 6,346 | 6,745 | 6,346 | |||||||||||||||||||||
| Total Benefits and Expenses | 72,618 | 69,426 | 59,590 | 61,848 | 56,248 | 60,441 | 60,164 | 84,064 | 61,848 | 84,064 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAX | 4,830 | 3,048 | 6,270 | 5,157 | 4,714 | 4,863 | 4,671 | 9,114 | 5,157 | 9,114 | |||||||||||||||||||||
| Adjustments to Reconcile to Operating Income: | |||||||||||||||||||||||||||||||
| Less: RIGL - Derivatives | - | - | - | - | - | - | - | (162 | ) | - | (162 | ) | |||||||||||||||||||
| Less: RIGL - All Other Investments | 11,206 | 8,582 | 2,918 | 6,004 | 290 | 3,524 | 55 | 27,624 | 6,004 | 27,624 | |||||||||||||||||||||
| Add back: Related amortization of deferred policy acquisition costs | 9,367 | 8,167 | 682 | 3,660 | 551 | 2,669 | 55 | 22,412 | 3,660 | 22,412 | |||||||||||||||||||||
| PRETAX OPERATING INCOME | $ | 2,991 | $ | 2,633 | $ | 4,034 | $ | 2,813 | $ | 4,975 | $ | 4,008 | $ | 4,671 | $ | 4,064 | $ | 2,813 | $ | 4,064 | |||||||||||
STABLE VALUE CONTRACTS | |||||||||||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
| Reinsurance Ceded | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Net Premiums and Policy Fees | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Net investment income | 59,090 | 56,441 | 59,041 | 64,033 | 66,666 | 66,472 | 71,013 | 73,875 | 64,033 | 73,875 | |||||||||||||||||||||
| RIGL - Derivatives | 940 | 523 | 173 | 271 | 135 | 700 | 53 | 292 | 271 | 292 | |||||||||||||||||||||
| RIGL - All Other Investments | 3,320 | 9,222 | 2,280 | 3,608 | 1,887 | 6,292 | 279 | 327 | 3,608 | 327 | |||||||||||||||||||||
| Other income | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total Revenues | 63,350 | 66,186 | 61,494 | 67,912 | 68,688 | 73,464 | 71,345 | 74,494 | 67,912 | 74,494 | |||||||||||||||||||||
| BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 46,957 | 45,374 | 46,469 | 49,769 | 50,720 | 50,301 | 54,378 | 57,169 | 49,769 | 57,169 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 519 | 542 | 619 | 761 | 803 | 894 | 1,022 | 1,084 | 761 | 1,084 | |||||||||||||||||||||
| Amortization of goodwill | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | 1,516 | 1,002 | 1,801 | 1,804 | 1,217 | 1,964 | 1,392 | 1,223 | 1,804 | 1,223 | |||||||||||||||||||||
| Total Benefits and Expenses | 48,992 | 46,918 | 48,889 | 52,334 | 52,740 | 53,159 | 56,792 | 59,476 | 52,334 | 59,476 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAX | 14,358 | 19,268 | 12,605 | 15,578 | 15,948 | 20,305 | 14,553 | 15,018 | 15,578 | 15,018 | |||||||||||||||||||||
| Adjustments to Reconcile to Operating Income: | |||||||||||||||||||||||||||||||
| Less: RIGL-Derivatives | 940 | 523 | 173 | 271 | 135 | 700 | 53 | 292 | 271 | 292 | |||||||||||||||||||||
| Less: RIGL-All Other Investments | 3,320 | 9,222 | 2,280 | 3,608 | 1,887 | 6,292 | 279 | 327 | 3,608 | 327 | |||||||||||||||||||||
| PRETAX OPERATING INCOME | $ | 10,098 | $ | 9,523 | $ | 10,152 | $ | 11,699 | $ | 13,926 | $ | 13,313 | $ | 14,221 | $ | 14,399 | $ | 11,699 | $ | 14,399 | |||||||||||
ASSET PROTECTION | |||||||||||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | 104,153 | $ | 112,850 | $ | 118,276 | $ | 118,179 | $ | 115,354 | $ | 120,558 | $ | 105,190 | $ | 114,004 | $ | 118,179 | $ | 114,004 | |||||||||||
| Reinsurance Ceded | (44,026 | ) | (52,128 | ) | (56,128 | ) | (63,106 | ) | (62,120 | ) | (68,755 | ) | (57,362 | ) | (65,063 | ) | (63,106 | ) | (65,063 | ) | |||||||||||
| Net Premiums and Policy Fees | 60,127 | 60,722 | 62,148 | 55,073 | 53,234 | 51,803 | 47,828 | 48,941 | 55,073 | 48,941 | |||||||||||||||||||||
| Net investment income | 9,132 | 9,484 | 8,790 | 7,541 | 7,500 | 7,922 | 7,976 | 7,600 | 7,541 | 7,600 | |||||||||||||||||||||
| Realized investment gains (losses) | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other income | 18,167 | 8,833 | 8,267 | 9,062 | 9,117 | 9,565 | 8,732 | 8,537 | 9,062 | 8,537 | |||||||||||||||||||||
| Total Revenues | 87,426 | 79,039 | 79,205 | 71,676 | 69,851 | 69,290 | 64,536 | 65,078 | 71,676 | 65,078 | |||||||||||||||||||||
| BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 33,868 | 34,676 | 37,164 | 32,199 | 33,363 | 29,226 | 26,219 | 26,529 | 32,199 | 26,529 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 21,425 | 19,838 | 20,574 | 19,956 | 17,522 | 20,042 | 14,753 | 17,546 | 19,956 | 17,546 | |||||||||||||||||||||
| Amortization of goodwill | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | 22,372 | 19,413 | 17,389 | 14,918 | 14,595 | 14,597 | 18,884 | 14,831 | 14,918 | 14,831 | |||||||||||||||||||||
| Total Benefits and Expenses | 77,665 | 73,927 | 75,127 | 67,073 | 65,480 | 63,865 | 59,856 | 58,906 | 67,073 | 58,906 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAX | $ | 9,761 | $ | 5,112 | $ | 4,078 | $ | 4,603 | $ | 4,371 | $ | 5,425 | $ | 4,680 | $ | 6,172 | $ | 4,603 | $ | 6,172 | |||||||||||
PROTECTIVE LIFE CORPORATION | Draft | |||||||||||||||||||||
Stable Value Contracts and Asset Protection Data | 5/2/2005 | |||||||||||||||||||||
(Dollars in thousands) | Page 10 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
| 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||
STABLE VALUE CONTRACTS | ||||||||||||||||||||||
SALES | ||||||||||||||||||||||
| GIC | $ | - | $ | 39,000 | $ | 15,000 | $ | 5,000 | $ | 24,050 | $ | - | $ | 24,050 | ||||||||
| GFA - Direct Institutional | - | 960 | - | 66,060 | - | 0 | 0 | |||||||||||||||
| GFA - Non-Registered | - | - | - | - | - | 0 | 0 | |||||||||||||||
| GFA - Registered - Institutional | 300,000 | - | 625,000 | - | 350,000 | 300,000 | 350,000 | |||||||||||||||
| GFA - Registered - Retail | 221,500 | 68,250 | 135,520 | 106,290 | 31,800 | 221,500 | 31,800 | |||||||||||||||
| Total | $ | 521,500 | $ | 108,210 | $ | 775,520 | $ | 177,350 | $ | 405,850 | $ | 521,500 | $ | 405,850 | ||||||||
DEPOSIT BALANCE | ||||||||||||||||||||||
| Quarter End Balance | $ | 4,923,231 | $ | 4,921,166 | $ | 5,143,367 | $ | 5,562,997 | $ | 5,670,355 | ||||||||||||
| Average Daily Balance | $ | 4,851,592 | $ | 5,062,014 | $ | 5,112,019 | $ | 5,455,427 | $ | 5,716,571 | $ | 4,851,592 | $ | 5,716,571 | ||||||||
OPERATING SPREAD | 0.99 | % | 1.13 | % | 1.07 | % | 1.07 | % | 1.04 | % | 0.99 | % | 1.04 | % | ||||||||
| 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||
ASSET PROTECTION | ||||||||||||||||||||||
SALES | ||||||||||||||||||||||
| Credit | $ | 51,246 | $ | 59,035 | $ | 59,543 | $ | 47,761 | $ | 50,106 | $ | 51,246 | $ | 50,106 | ||||||||
| Service Contracts | 44,275 | 54,861 | 56,627 | 47,220 | 47,138 | 44,275 | 47,138 | |||||||||||||||
| Other | 8,151 | 8,941 | 8,883 | 13,780 | 9,075 | 8,151 | 9,075 | |||||||||||||||
| Total | $ | 103,672 | $ | 122,837 | $ | 125,053 | $ | 108,761 | $ | 106,319 | $ | 103,672 | $ | 106,319 | ||||||||
PROTECTIVE LIFE CORPORATION | Draft | ||||||||||||||||||||||||||||||
Corporate & Other Segment - Quarterly Earnings Trends | 5/2/2005 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Page 11 | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
| 2003 | 2003 | 2003 | 2004 | 2004 | 2004 | 2004 | 2005 | 3 MOS | 3 MOS | ||||||||||||||||||||||
| 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2004 | 2005 | ||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||||||||
| Gross Premiums and Policy Fees | $ | 13,973 | $ | 13,563 | $ | 13,294 | $ | 12,534 | $ | 12,550 | $ | 11,919 | $ | 11,373 | $ | 11,030 | $ | 12,534 | $ | 11,030 | |||||||||||
| Reinsurance Ceded | (810 | ) | (589 | ) | (229 | ) | (346 | ) | (337 | ) | (191 | ) | (143 | ) | (75 | ) | (346 | ) | (75 | ) | |||||||||||
| Net Premiums and Policy Fees | 13,163 | 12,974 | 13,065 | 12,188 | 12,213 | 11,728 | 11,230 | 10,955 | 12,188 | 10,955 | |||||||||||||||||||||
| Net investment income | 16,707 | 8,627 | 21,302 | 24,851 | 22,577 | 34,356 | 21,730 | 32,461 | 24,851 | 32,461 | |||||||||||||||||||||
| RIGL - Derivatives | 3,394 | (9,571 | ) | 21,971 | 4,812 | 8,605 | 5,587 | (572 | ) | (6,498 | ) | 4,812 | (6,498 | ) | |||||||||||||||||
| RIGL - All Other Investments | 14,998 | 9,238 | (2,522 | ) | 7,015 | (3,100 | ) | (1,635 | ) | 4,086 | (73 | ) | 7,015 | (73 | ) | ||||||||||||||||
| Other income | 1,216 | 1,686 | 2,276 | 4,712 | 4,075 | 3,994 | 4,582 | 4,236 | 4,712 | 4,236 | |||||||||||||||||||||
| Total Revenues | 49,478 | 22,954 | 56,092 | 53,578 | 44,370 | 54,030 | 41,056 | 41,081 | 53,578 | 41,081 | |||||||||||||||||||||
| BENEFITS & EXPENSES | |||||||||||||||||||||||||||||||
| Benefits and settlement expenses | 37,942 | 12,217 | 16,953 | 14,256 | 15,898 | 12,470 | 16,427 | 12,474 | 14,256 | 12,474 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 1,385 | 1,748 | 1,085 | 1,090 | 1,207 | 1,101 | 1,086 | 1,085 | 1,090 | 1,085 | |||||||||||||||||||||
| Amortization of goodwill | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | 20,205 | 21,957 | 25,889 | 26,975 | 23,986 | 28,866 | 22,536 | 26,132 | 26,975 | 26,132 | |||||||||||||||||||||
| Total Benefits and Expenses | 59,532 | 35,922 | 43,927 | 42,321 | 41,091 | 42,437 | 40,049 | 39,691 | 42,321 | 39,691 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAX | (10,054 | ) | (12,968 | ) | 12,165 | 11,257 | 3,279 | 11,593 | 1,007 | 1,390 | 11,257 | 1,390 | |||||||||||||||||||
| Adjustments to Reconcile to Operating Income: | |||||||||||||||||||||||||||||||
| Less: RIGL-Derivatives | 3,394 | (9,571 | ) | 21,971 | 4,812 | 8,605 | 5,587 | (572 | ) | (6,498 | ) | 4,812 | (6,498 | ) | |||||||||||||||||
| Less: RIGL-All Other Investments | 14,998 | 9,238 | (2,522 | ) | 7,015 | (3,100 | ) | (1,635 | ) | 4,086 | (73 | ) | 7,015 | (73 | ) | ||||||||||||||||
| Add back: Derivative gains related to corporate debt and investments | 5,885 | 4,786 | 4,782 | 4,875 | 5,354 | 4,684 | 4,309 | 3,684 | 4,875 | 3,684 | |||||||||||||||||||||
| PRETAX OPERATING INCOME | $ | (22,561 | ) | $ | (7,849 | ) | $ | (2,502 | ) | $ | 4,305 | $ | 3,128 | $ | 12,325 | $ | 1,802 | $ | 11,645 | $ | 4,305 | $ | 11,645 | ||||||||