PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Quarterly Financial Highlights | 4/27/2006 | |||||||||||||||||||||
(Dollars in Thousands) | Page 1 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 2005 | 2006 | ||||||||||||||||
Pretax Operating Income * | ||||||||||||||||||||||
Life Marketing | $ | 39,141 | $ | 38,332 | $ | 38,014 | $ | 48,174 | $ | 40,781 | $ | 39,141 | $ | 40,781 | ||||||||
Acquisitions | 21,035 | 21,473 | 19,510 | 18,593 | 19,906 | 21,035 | 19,906 | |||||||||||||||
Annuities | 4,064 | 8,145 | 4,927 | 14,797 | 4,741 | 4,064 | 4,741 | |||||||||||||||
Stable Value Contracts | 14,399 | 13,484 | 13,743 | 13,172 | 12,344 | 14,399 | 12,344 | |||||||||||||||
Asset Protection | 6,172 | 6,292 | 6,102 | 6,335 | 8,738 | 6,172 | 8,738 | |||||||||||||||
Corporate & Other | 11,645 | 9,380 | 16,236 | 9,968 | 11,663 | 11,645 | 11,663 | |||||||||||||||
Total Pretax Operating Income | $ | 96,456 | $ | 97,106 | $ | 98,532 | $ | 111,039 | $ | 98,173 | $ | 96,456 | $ | 98,173 | ||||||||
Balance Sheet Data | ||||||||||||||||||||||
Total GAAP Assets | $ | 27,863,074 | $ | 28,551,847 | $ | 28,592,528 | $ | 28,966,993 | $ | 28,952,024 | ||||||||||||
Share Owners' Equity | $ | 2,124,402 | $ | 2,299,265 | $ | 2,200,866 | $ | 2,183,660 | $ | 2,104,270 | ||||||||||||
Share Owners' Equity (excluding accumulated other comprehensive income) ** | $ | 1,925,428 | $ | 1,959,487 | $ | 2,016,355 | $ | 2,078,440 | $ | 2,139,512 | ||||||||||||
Stock Data | ||||||||||||||||||||||
Closing Price | $ | 39.30 | $ | 42.22 | $ | 41.18 | $ | 43.77 | $ | 49.74 | $ | 39.30 | $ | 49.74 | ||||||||
Average Shares Outstanding | ||||||||||||||||||||||
Basic | 70,474,337 | 70,517,476 | 70,582,016 | 70,672,518 | 70,752,202 | 70,474,337 | 70,752,202 | |||||||||||||||
Diluted | 71,273,760 | 71,279,363 | 71,350,044 | 71,496,555 | 71,559,255 | 71,273,760 | 71,559,255 | |||||||||||||||
* "Pretax Operating Income" is a non-GAAP financial measure. "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating Income" may be compared. | ||||||||||||||||||||||
See Page 5 for a reconciliation of "Pretax Operating Income" to "Income Before Income Tax". | ||||||||||||||||||||||
** "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which | ||||||||||||||||||||||
"Share-owners' equity excluding accumulated other comprehensive income" may be compared. | ||||||||||||||||||||||
See Page 4 for a reconciliation of "Share-owners' equity excluding accumulated other comprehensive income" to "Share-owners' equity". |
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
GAAP Consolidated Statements Of Income | 4/27/2006 | |||||||||||||||||||||
(Dollars in thousands) | Page 2 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 2005 | 2006 | ||||||||||||||||
REVENUES | ||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 468,514 | $ | 484,643 | $ | 486,660 | $ | 515,963 | $ | 507,694 | $ | 468,514 | $ | 507,694 | ||||||||
Reinsurance Ceded | (282,152 | ) | (312,511 | ) | (282,919 | ) | (349,275 | ) | (280,670 | ) | (282,152 | ) | (280,670 | ) | ||||||||
Net Premiums and Policy Fees | 186,362 | 172,132 | 203,741 | 166,688 | 227,024 | 186,362 | 227,024 | |||||||||||||||
Net investment income | 287,953 | 282,374 | 306,885 | 303,290 | 299,065 | 287,953 | 299,065 | |||||||||||||||
RIGL - Derivatives | (6,368 | ) | (26,021 | ) | 7,662 | (6,154 | ) | 13,337 | (6,368 | ) | 13,337 | |||||||||||
RIGL - All Other Investments | 27,878 | 12,480 | 3,612 | 5,423 | 5,153 | 27,878 | 5,153 | |||||||||||||||
Other income | 44,284 | 45,505 | 47,377 | 44,101 | 48,536 | 44,284 | 48,536 | |||||||||||||||
Total Revenues | 540,109 | 486,470 | 569,277 | 513,348 | 593,115 | 540,109 | 593,115 | |||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||
Benefits and settlement expenses | 300,434 | 291,636 | 333,365 | 327,932 | 349,608 | 300,434 | 349,608 | |||||||||||||||
Amortization of deferred policy acquisition costs | 74,251 | 51,867 | 57,950 | 14,435 | 50,031 | 74,251 | 50,031 | |||||||||||||||
Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other operating expenses | 60,456 | 55,911 | 55,513 | 51,805 | 67,188 | 60,456 | 67,188 | |||||||||||||||
Interest on indebtedness | 13,098 | 13,614 | 15,582 | 14,342 | 15,631 | 13,098 | 15,631 | |||||||||||||||
Total Benefits and Expenses | 448,239 | 413,028 | 462,410 | 408,514 | 482,458 | 448,239 | 482,458 | |||||||||||||||
INCOME BEFORE INCOME TAX | 91,870 | 73,442 | 106,867 | 104,834 | 110,657 | 91,870 | 110,657 | |||||||||||||||
Income tax expense | 31,787 | 25,411 | 36,976 | 36,272 | 38,520 | 31,787 | 38,520 | |||||||||||||||
Change in Acct Principle | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
NET INCOME | $ | 60,083 | $ | 48,031 | $ | 69,891 | $ | 68,562 | $ | 72,137 | $ | 60,083 | $ | 72,137 | ||||||||
PER SHARE DATA FOR QUARTER | ||||||||||||||||||||||
Operating income-diluted * | $ | 0.88 | $ | 0.90 | $ | 0.90 | $ | 1.02 | $ | 0.90 | ||||||||||||
RIGL - Derivatives net of gains related to corp debt, investments and annuities | (0.09 | ) | (0.27 | ) | 0.05 | (0.07 | ) | 0.11 | ||||||||||||||
RIGL - All Other Investments, net of participating income | 0.05 | 0.05 | 0.03 | 0.01 | 0.00 | |||||||||||||||||
Change in Accounting Principle | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||
Net income-diluted | $ | 0.84 | $ | 0.68 | $ | 0.98 | $ | 0.96 | $ | 1.01 | ||||||||||||
Average shares outstanding-diluted | 71,273,760 | 71,279,363 | 71,350,044 | 71,496,555 | 71,559,255 | |||||||||||||||||
Dividends paid | $ | 0.175 | $ | 0.195 | $ | 0.195 | $ | 0.195 | $ | 0.195 | ||||||||||||
PER SHARE DATA FOR YTD | ||||||||||||||||||||||
Operating income-diluted * | $ | 0.88 | $ | 1.78 | $ | 2.68 | $ | 3.70 | $ | 0.90 | $ | 0.88 | $ | 0.90 | ||||||||
RIGL - Derivatives net of gains related to corp debt, investments and annuities | (0.09 | ) | (0.36 | ) | (0.31 | ) | (0.38 | ) | 0.11 | (0.09 | ) | 0.11 | ||||||||||
RIGL - All Other Investments, net of participating income | 0.05 | 0.10 | 0.13 | 0.14 | 0.00 | 0.05 | 0.00 | |||||||||||||||
Change in Accounting Principle | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
Net income-diluted | $ | 0.84 | $ | 1.52 | $ | 2.50 | $ | 3.46 | $ | 1.01 | $ | 0.84 | $ | 1.01 | ||||||||
Average shares outstanding-diluted | 71,273,760 | 71,276,577 | 71,301,335 | 71,350,541 | 71,559,255 | 71,273,760 | 71,559,255 | |||||||||||||||
Dividends paid | $ | 0.175 | $ | 0.370 | $ | 0.565 | $ | 0.760 | $ | 0.195 | $ | 0.175 | $ | 0.195 | ||||||||
* "Operating Income" is a non-GAAP financial measure. "Net Income" is a GAAP financial measure to which "Operating Income" may be compared. |
PROTECTIVE LIFE CORPORATION | ||||||||||||||||
GAAP Consolidated Balance Sheets | 4/27/2006 | |||||||||||||||
(Dollars in thousands) | Page 3 | |||||||||||||||
(Unaudited) | ||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | ||||||||||||
ASSETS | ||||||||||||||||
Fixed maturities | $ | 15,263,694 | $ | 15,686,373 | $ | 15,824,420 | $ | 15,472,386 | $ | 14,965,927 | ||||||
Equity securities | 59,605 | 115,758 | 115,570 | 121,012 | 123,536 | |||||||||||
Mortgage loans | 3,042,584 | 3,124,877 | 3,101,823 | 3,287,745 | 3,411,337 | |||||||||||
Investment real estate | 104,986 | 91,981 | 92,340 | 72,932 | 63,858 | |||||||||||
Policy loans | 472,345 | 466,701 | 463,514 | 458,825 | 456,147 | |||||||||||
Other long-term investments | 342,840 | 307,031 | 286,497 | 279,676 | 269,345 | |||||||||||
Long-term investments | 19,286,054 | 19,792,721 | 19,884,164 | 19,692,576 | 19,290,150 | |||||||||||
Short-term investments | 816,335 | 626,795 | 606,165 | 776,139 | 833,567 | |||||||||||
Total investments | 20,102,389 | 20,419,516 | 20,490,329 | 20,468,715 | 20,123,717 | |||||||||||
Cash | 53,673 | 98,316 | 63,565 | 83,670 | 37,118 | |||||||||||
Accrued investment income | 202,008 | 192,454 | 201,037 | 189,038 | 198,708 | |||||||||||
Accounts and premiums receivable | 50,271 | 348,688 | 58,883 | 82,080 | 59,236 | |||||||||||
Reinsurance receivable | 2,835,979 | 2,883,648 | 2,862,674 | 3,020,685 | 3,146,444 | |||||||||||
Deferred policy acquisition costs | 1,913,803 | 1,866,815 | 2,032,784 | 2,171,988 | 2,332,639 | |||||||||||
Goodwill | 46,619 | 49,423 | 49,423 | 49,423 | 49,423 | |||||||||||
Property and equipment, net | 44,520 | 46,878 | 47,304 | 47,010 | 45,941 | |||||||||||
Other assets | 139,725 | 134,441 | 140,375 | 140,124 | 144,855 | |||||||||||
Income Tax Receivable | 0 | 0 | 52,923 | 85,807 | 96,443 | |||||||||||
Assets Related to Separate Accounts | ||||||||||||||||
Variable Annuity | 2,256,920 | 2,286,141 | 2,352,287 | 2,377,124 | 2,447,968 | |||||||||||
Variable Universal Life | 217,167 | 225,527 | 240,944 | 251,329 | 269,532 | |||||||||||
Other | 0 | 0 | 0 | 0 | 0 | |||||||||||
TOTAL ASSETS | $ | 27,863,074 | $ | 28,551,847 | $ | 28,592,528 | $ | 28,966,993 | $ | 28,952,024 | ||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||
GAAP Consolidated Balance Sheets | 4/27/2006 | |||||||||||||||
(Dollars in thousands) | Page 4 | |||||||||||||||
(Unaudited) | ||||||||||||||||
LIABILITIES AND SHARE-OWNERS' EQUITY | ||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||
LIABILITIES | 2005 | �� | 2005 | 2005 | 2005 | 2006 | ||||||||||
Policy liabilities and accruals | ||||||||||||||||
Future policy benefits and claims | $ | 10,222,011 | $ | 10,499,494 | $ | 10,797,527 | $ | 11,155,074 | $ | 11,447,516 | ||||||
Unearned premiums | 673,841 | 679,916 | 671,971 | 740,071 | 767,074 | |||||||||||
Stable value product deposits | 5,670,355 | 5,846,120 | 5,900,740 | 6,057,721 | 5,873,092 | |||||||||||
Annuity deposits | 3,433,293 | 3,447,394 | 3,430,038 | 3,388,005 | 3,330,897 | |||||||||||
Other policyholders' funds | 151,572 | 149,247 | 149,838 | 147,921 | 147,470 | |||||||||||
Securities sold under repurchase agreements | 0 | 31,550 | 142,850 | 0 | 0 | |||||||||||
Other liabilities | 1,556,736 | 1,482,085 | 1,043,260 | 954,716 | 881,146 | |||||||||||
Accrued income taxes | 29,213 | 21,701 | 0 | 0 | 0 | |||||||||||
Deferred income taxes | 256,453 | 311,146 | 287,976 | 317,317 | 280,219 | |||||||||||
Non-recourse funding obligations | 0 | 0 | 100,000 | 125,000 | 150,000 | |||||||||||
Debt | 451,424 | 469,317 | 471,808 | 482,532 | 473,032 | |||||||||||
Liabilities related to variable interest entities | 481,921 | 465,078 | 464,747 | 448,093 | 442,383 | |||||||||||
Subordinated debt securities | 324,743 | 324,743 | 324,743 | 324,743 | 324,743 | |||||||||||
Minority interest - subsidiaries | 13,023 | 13,123 | 12,933 | 13,687 | 12,682 | |||||||||||
Liabilities related to separate accounts | ||||||||||||||||
Variable annuity | 2,256,920 | 2,286,141 | 2,352,287 | 2,377,124 | 2,447,968 | |||||||||||
Variable universal life | 217,167 | 225,527 | 240,944 | 251,329 | 269,532 | |||||||||||
Other | 0 | 0 | 0 | 0 | 0 | |||||||||||
TOTAL LIABILITIES | 25,738,672 | 26,252,582 | 26,391,662 | 26,783,333 | 26,847,754 | |||||||||||
SHARE-OWNERS' EQUITY | ||||||||||||||||
Common stock | 36,626 | 36,626 | 36,626 | 36,626 | 36,626 | |||||||||||
Additional paid-in capital | 433,467 | 433,040 | 433,363 | 440,475 | 441,964 | |||||||||||
Treasury stock | (13,041 | ) | (13,011 | ) | (12,768 | ) | (12,765 | ) | (12,079 | ) | ||||||
Unallocated ESOP shares | (1,610 | ) | (1,610 | ) | (1,610 | ) | (1,610 | ) | (1,231 | ) | ||||||
Retained earnings | 1,469,986 | 1,504,442 | 1,560,744 | 1,615,714 | 1,674,232 | |||||||||||
Accumulated other comprehensive income | 198,974 | 339,778 | 184,511 | 105,220 | (35,242 | ) | ||||||||||
Total Share-owners' Equity | 2,124,402 | 2,299,265 | 2,200,866 | 2,183,660 | 2,104,270 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 27,863,074 | $ | 28,551,847 | $ | 28,592,528 | $ | 28,966,993 | $ | 28,952,024 | ||||||
SHARE-OWNERS' EQUITY PER SHARE | ||||||||||||||||
Total Share-owners' Equity | $ | 30.52 | $ | 33.02 | $ | 31.58 | $ | 31.33 | $ | 30.11 | ||||||
Accumulated other comprehensive income | 2.86 | 4.88 | 2.65 | 1.51 | (0.50 | ) | ||||||||||
Excluding accumulated other comprehensive income * | $ | 27.66 | $ | 28.14 | $ | 28.93 | $ | 29.82 | $ | 30.61 | ||||||
Total Share-owners' Equity | $ | 2,124,402 | $ | 2,299,265 | $ | 2,200,866 | $ | 2,183,660 | $ | 2,104,270 | ||||||
Accumulated other comprehensive income | 198,974 | 339,778 | 184,511 | 105,220 | (35,242 | ) | ||||||||||
Share-owners' Equity (excluding accumulated other comprehensive income) * | $ | 1,925,428 | $ | 1,959,487 | $ | 2,016,355 | $ | 2,078,440 | $ | 2,139,512 | ||||||
Common shares outstanding | 69,615,285 | 69,627,244 | 69,692,925 | 69,694,049 | 69,885,344 | |||||||||||
Treasury Stock shares | 3,636,675 | 3,624,716 | 3,559,035 | 3,557,911 | 3,366,616 | |||||||||||
* "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which | ||||||||||||||||
"Share-owners' equity excluding accumulated other comprehensive income" may be compared. |
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Calculation of Operating Earnings Per Share | 4/27/2006 | |||||||||||||||||||||
(Dollars in thousands) | Page 5 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 2005 | 2006 | ||||||||||||||||
CALCULATION OF NET INCOME PER SHARE | ||||||||||||||||||||||
Net income | $ | 60,083 | $ | 48,031 | $ | 69,891 | $ | 68,562 | $ | 72,137 | $ | 60,083 | $ | 72,137 | ||||||||
Average shares outstanding-basic | 70,474,337 | 70,517,476 | 70,582,016 | 70,672,518 | 70,752,202 | 70,474,337 | 70,752,202 | |||||||||||||||
Average shares outstanding-diluted | 71,273,760 | 71,279,363 | 71,350,044 | 71,496,555 | 71,559,255 | 71,273,760 | 71,559,255 | |||||||||||||||
Net income per share-basic | $ | 0.85 | $ | 0.68 | $ | 0.99 | $ | 0.97 | $ | 1.02 | $ | 0.85 | $ | 1.02 | ||||||||
Net income per share-diluted | $ | 0.84 | $ | 0.68 | $ | 0.98 | $ | 0.96 | $ | 1.01 | $ | 0.84 | $ | 1.01 | ||||||||
Income from continuing operations | $ | 60,083 | $ | 48,031 | $ | 69,891 | $ | 68,562 | $ | 72,137 | $ | 60,083 | $ | 72,137 | ||||||||
EPS (basic) | $ | 0.85 | $ | 0.68 | $ | 0.99 | $ | 0.97 | $ | 1.02 | $ | 0.85 | $ | 1.02 | ||||||||
EPS (diluted) | $ | 0.84 | $ | 0.68 | $ | 0.98 | $ | 0.96 | $ | 1.01 | $ | 0.84 | $ | 1.01 | ||||||||
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE | ||||||||||||||||||||||
RIGL - Derivatives | $ | (6,368 | ) | $ | (26,021 | ) | $ | 7,662 | $ | (6,154 | ) | $ | 13,337 | $ | (6,368 | ) | $ | 13,337 | ||||
Derivative Gains related to Corporate Debt and Investments | (3,684 | ) | (2,960 | ) | (2,777 | ) | (1,972 | ) | (1,331 | ) | (3,684 | ) | (1,331 | ) | ||||||||
Derivative Gains related to Annuities | 0 | 0 | 0 | 351 | 651 | 0 | 651 | |||||||||||||||
RIGL - All Other Investments, net of participating income | 27,878 | 6,597 | 3,612 | 2,622 | (173 | ) | 27,878 | (173 | ) | |||||||||||||
Related amortization of DAC | (22,412 | ) | (1,280 | ) | (162 | ) | (1,052 | ) | 0 | (22,412 | ) | 0 | ||||||||||
(4,586 | ) | (23,664 | ) | 8,335 | (6,205 | ) | 12,484 | (4,586 | ) | 12,484 | ||||||||||||
Tax effect | 1,605 | 8,283 | (2,918 | ) | 2,172 | (4,369 | ) | 1,605 | (4,369 | ) | ||||||||||||
$ | (2,981 | ) | $ | (15,381 | ) | $ | 5,417 | $ | (4,033 | ) | $ | 8,115 | $ | (2,981 | ) | $ | 8,115 | |||||
RIGL - Derivatives per share-diluted | $ | (0.09 | ) | $ | (0.27 | ) | $ | 0.05 | $ | (0.07 | ) | $ | 0.11 | $ | (0.09 | ) | $ | 0.11 | ||||
RIGL - All Other Investments per share-diluted | $ | 0.05 | $ | 0.05 | $ | 0.03 | $ | 0.01 | $ | 0 | $ | 0.05 | $ | - | ||||||||
OPERATING INCOME PER SHARE * | ||||||||||||||||||||||
Net income per share-diluted | $ | 0.84 | $ | 0.68 | $ | 0.98 | $ | 0.96 | $ | 1.01 | $ | 0.84 | $ | 1.01 | ||||||||
RIGL - Derivatives per share-diluted | (0.09 | ) | (0.27 | ) | 0.05 | (0.07 | ) | 0.11 | (0.09 | ) | 0.11 | |||||||||||
RIGL - All Other Investments, net of participating income per share-diluted | 0.05 | 0.05 | 0.03 | 0.01 | 0.00 | 0.05 | 0.00 | |||||||||||||||
Change in accounting principle | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
Operating income per share-diluted | $ | 0.88 | $ | 0.90 | $ | 0.90 | $ | 1.02 | $ | 0.90 | $ | 0.88 | $ | 0.90 | ||||||||
NET OPERATING INCOME * | ||||||||||||||||||||||
Net income | $ | 60,083 | $ | 48,031 | $ | 69,891 | $ | 68,562 | $ | 72,137 | $ | 60,083 | $ | 72,137 | ||||||||
RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities | (6,534 | ) | (18,837 | ) | 3,175 | (5,054 | ) | 8,227 | (6,534 | ) | 8,227 | |||||||||||
RIGL - All Other Investments net of tax, amortization, and participating income | 3,553 | 3,456 | 2,242 | 1,021 | (113 | ) | 3,553 | (113 | ) | |||||||||||||
Change in accounting principle | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Net operating income | $ | 63,064 | $ | 63,412 | $ | 64,474 | $ | 72,595 | $ | 64,023 | $ | 63,064 | $ | 64,023 | ||||||||
PRETAX OPERATING INCOME ** | ||||||||||||||||||||||
Income before income tax | $ | 91,870 | $ | 73,442 | $ | 106,867 | $ | 104,834 | $ | 110,657 | $ | 91,870 | $ | 110,657 | ||||||||
RIGL - Derivatives | (6,368 | ) | (26,021 | ) | 7,662 | (6,154 | ) | 13,337 | (6,368 | ) | 13,337 | |||||||||||
Derivative gains related to corporate debt, investments & annuities | (3,684 | ) | (2,960 | ) | (2,777 | ) | (1,621 | ) | (680 | ) | (3,684 | ) | (680 | ) | ||||||||
RIGL - All Other Investments, net of participating income | 27,878 | 6,597 | 3,612 | 2,622 | (173 | ) | 27,878 | (173 | ) | |||||||||||||
Related amortization of DAC | (22,412 | ) | (1,280 | ) | (162 | ) | (1,052 | ) | 0 | (22,412 | ) | 0 | ||||||||||
Pretax operating income | $ | 96,456 | $ | 97,106 | $ | 98,532 | $ | 111,039 | $ | 98,173 | $ | 96,456 | $ | 98,173 | ||||||||
* "Net Operating Income" and "Operating Income Per Share" are non-GAAP financial measures. "Net Income" and "Net Income Per Share" are GAAP | ||||||||||||||||||||||
financial measures to which "Net Operating Income" and "Operating Income Per Share" may be compared. | ||||||||||||||||||||||
** "Pretax Operating Income" is a non-GAAP financial measure. "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating | ||||||||||||||||||||||
Income" may be compared. |
PROTECTIVE LIFE CORPORATION | ||||||||||||||||
Invested Asset Summary | 4/27/2006 | |||||||||||||||
(Dollars in millions) | Page 6 | |||||||||||||||
(Unaudited) | ||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | ||||||||||||
Total Portfolio | ||||||||||||||||
Fixed Income | $ | 15,263.7 | $ | 15,686.4 | $ | 15,824.4 | $ | 15,472.4 | $ | 14,965.9 | ||||||
Mortgage Loans | 3,042.6 | 3,124.9 | 3,101.8 | 3,287.7 | 3,411.3 | |||||||||||
Real Estate | 105.0 | 92.0 | 92.3 | 72.9 | 63.9 | |||||||||||
Equities | 59.6 | 115.7 | 115.6 | 121.0 | 123.5 | |||||||||||
Policy Loans | 472.4 | 466.7 | 463.5 | 458.8 | 456.1 | |||||||||||
Short Term Investments | 816.3 | 626.8 | 606.2 | 776.1 | 833.6 | |||||||||||
Other Long Term Investments | 222.9 | 186.0 | 286.5 | 279.7 | 269.3 | |||||||||||
Total Invested Assets | $ | 19,982.5 | $ | 20,298.5 | $ | 20,490.3 | $ | 20,468.7 | $ | 20,123.7 | ||||||
Fixed Income | ||||||||||||||||
Corporate Bonds | $ | 7,209.4 | $ | 7,597.3 | $ | 7,489.8 | $ | 6,821.4 | $ | 7,054.1 | ||||||
Mortgage Backed Securities | 6,201.5 | 6,094.3 | 6,348.2 | 6,050.8 | 6,050.9 | |||||||||||
US Govt Bonds | 94.7 | 88.5 | 88.3 | 843.0 | 199.7 | |||||||||||
Public Utilities | 1,705.6 | 1,852.7 | 1,844.4 | 1,704.3 | 1,615.9 | |||||||||||
States, Municipals and Political Subdivisions | 49.6 | 52.2 | 50.9 | 50.2 | 45.0 | |||||||||||
Preferred Securities | 2.7 | 1.2 | 2.6 | 2.5 | 0.1 | |||||||||||
Convertibles and Bonds with Warrants | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||
Total Fixed Income Portfolio | $ | 15,263.7 | $ | 15,686.4 | $ | 15,824.4 | $ | 15,472.4 | $ | 14,965.9 | ||||||
Fixed Income - Quality | ||||||||||||||||
AAA | 40.9 | % | 40.0 | % | 40.9 | % | 44.7 | % | 41.9 | % | ||||||
AA | 6.0 | % | 3.7 | % | 4.4 | % | 3.6 | % | 3.6 | % | ||||||
A | 21.0 | % | 17.8 | % | 17.0 | % | 15.0 | % | 16.7 | % | ||||||
BBB | 25.8 | % | 31.1 | % | 30.5 | % | 29.6 | % | 30.3 | % | ||||||
BB or Less | 6.3 | % | 7.4 | % | 7.2 | % | 7.1 | % | 7.5 | % | ||||||
Redeemable Preferred Stock | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
Mortgage Loans - Type | ||||||||||||||||
Retail | 69.6 | % | 69.2 | % | 68.6 | % | 68.3 | % | 68.2 | % | ||||||
Apartments | 11.7 | % | 12.5 | % | 12.3 | % | 11.9 | % | 10.9 | % | ||||||
Office Buildings | 9.4 | % | 9.2 | % | 9.8 | % | 10.3 | % | 10.7 | % | ||||||
Warehouses | 8.3 | % | 7.9 | % | 8.2 | % | 8.1 | % | 8.0 | % | ||||||
Miscellaneous | 1.0 | % | 1.2 | % | 1.1 | % | 1.4 | % | 2.2 | % | ||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
Problem Mortgage Loans | ||||||||||||||||
60 Days Past Due | $ | 1.9 | $ | 1.9 | $ | 1.9 | $ | 3.1 | $ | 0.0 | ||||||
90 Days Past Due | 8.2 | 2.6 | 5.4 | 5.1 | 5.4 | |||||||||||
Renegotiated Loans | 5.4 | 8.3 | 5.5 | 5.6 | 5.6 | |||||||||||
Foreclosed Real Estate | 0.0 | 4.3 | 5.0 | 8.4 | 1.6 | |||||||||||
$ | 15.5 | $ | 17.1 | $ | 17.8 | $ | 22.2 | $ | 12.6 |
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Life Marketing and Acquisitions - Quarterly Earnings Trends | 4/27/2006 | |||||||||||||||||||||
(Dollars in thousands) | Page 7 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 2005 | 2006 | ||||||||||||||||
LIFE MARKETING | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 273,769 | $ | 290,333 | $ | 297,098 | $ | 329,423 | $ | 325,364 | $ | 273,769 | $ | 325,364 | ||||||||
Reinsurance Ceded | (199,746 | ) | (235,968 | ) | (204,572 | ) | (261,769 | ) | (208,631 | ) | (199,746 | ) | (208,631 | ) | ||||||||
Net Premiums and Policy Fees | 74,023 | 54,365 | 92,526 | 67,654 | 116,733 | 74,023 | 116,733 | |||||||||||||||
Net investment income | 61,153 | 62,541 | 66,847 | 71,318 | 72,853 | 61,153 | 72,853 | |||||||||||||||
Realized investment gains (losses) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other income | 28,556 | 27,107 | 27,577 | 27,962 | 29,339 | 28,556 | 29,339 | |||||||||||||||
Total Revenues | 163,732 | 144,013 | 186,950 | 166,934 | 218,925 | 163,732 | 218,925 | |||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||
Benefits and settlement expenses | 89,783 | 72,994 | 112,119 | 117,552 | 135,899 | 89,783 | 135,899 | |||||||||||||||
Amortization of deferred policy acquisition costs | 17,827 | 21,413 | 23,831 | (7,383 | ) | 19,466 | 17,827 | 19,466 | ||||||||||||||
Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other operating expenses | 16,981 | 11,274 | 12,986 | 8,591 | 22,779 | 16,981 | 22,779 | |||||||||||||||
Total Benefits and Expenses | 124,591 | 105,681 | 148,936 | 118,760 | 178,144 | 124,591 | 178,144 | |||||||||||||||
INCOME BEFORE INCOME TAX | $ | 39,141 | $ | 38,332 | $ | 38,014 | $ | 48,174 | $ | 40,781 | $ | 39,141 | $ | 40,781 | ||||||||
ACQUISITIONS | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 65,500 | $ | 66,104 | $ | 64,265 | $ | 65,134 | $ | 62,986 | $ | 65,500 | $ | 62,986 | ||||||||
Reinsurance Ceded | (20,029 | ) | (17,257 | ) | (17,668 | ) | (19,245 | ) | (16,642 | ) | (20,029 | ) | (16,642 | ) | ||||||||
Net Premiums and Policy Fees | 45,471 | 48,847 | 46,597 | 45,889 | 46,344 | 45,471 | 46,344 | |||||||||||||||
Net investment income | 56,714 | 56,099 | 55,366 | 55,022 | 54,490 | 56,714 | 54,490 | |||||||||||||||
Realized investment gains (losses) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other income | 361 | 453 | 251 | 540 | 617 | 361 | 617 | |||||||||||||||
Total Revenues | 102,546 | 105,399 | 102,214 | 101,451 | 101,451 | 102,546 | 101,451 | |||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||
Benefits and settlement expenses | 66,399 | 68,784 | 69,312 | 69,131 | 67,454 | 66,399 | 67,454 | |||||||||||||||
Amortization of deferred policy acquisition costs | 7,071 | 7,185 | 6,197 | 6,619 | 6,335 | 7,071 | 6,335 | |||||||||||||||
Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other operating expenses | 8,041 | 7,957 | 7,195 | 7,108 | 7,756 | 8,041 | 7,756 | |||||||||||||||
Total Benefits and Expenses | 81,511 | 83,926 | 82,704 | 82,858 | 81,545 | 81,511 | 81,545 | |||||||||||||||
INCOME BEFORE INCOME TAX | $ | 21,035 | $ | 21,473 | $ | 19,510 | $ | 18,593 | $ | 19,906 | $ | 21,035 | $ | 19,906 | ||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Life Marketing and Annuities Data | 4/27/2006 | |||||||||||||||||||||
(Dollars in thousands) | Page 8 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 3 MOS | 3 MOS | ||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2005 | 2006 | ||||||||||||||||
LIFE MARKETING | ||||||||||||||||||||||
SALES BY PRODUCT | ||||||||||||||||||||||
Term | $ | 34,508 | $ | 26,861 | $ | 27,975 | $ | 34,538 | $ | 37,476 | $ | 34,508 | $ | 37,476 | ||||||||
U/L | 32,747 | 41,639 | 50,308 | 40,674 | 31,488 | 32,747 | 31,488 | |||||||||||||||
VUL | 1,138 | 1,197 | 1,698 | 1,432 | 1,285 | 1,138 | 1,285 | |||||||||||||||
Total | $ | 68,393 | $ | 69,697 | $ | 79,981 | $ | 76,644 | $ | 70,249 | $ | 68,393 | $ | 70,249 | ||||||||
SALES BY DISTRIBUTION | ||||||||||||||||||||||
Brokerage general agents | $ | 36,172 | $ | 29,495 | $ | 36,072 | $ | 38,836 | $ | 38,179 | $ | 36,172 | $ | 38,179 | ||||||||
Independent agents | 17,309 | 18,815 | 21,788 | 17,652 | 13,800 | 17,309 | 13,800 | |||||||||||||||
Stockbrokers/banks | 12,627 | 17,936 | 19,741 | 15,663 | 13,567 | 12,627 | 13,567 | |||||||||||||||
Direct Response & BOLI | 2,285 | 3,451 | 2,380 | 4,493 | 4,703 | 2,285 | 4,703 | |||||||||||||||
Total | $ | 68,393 | $ | 69,697 | $ | 79,981 | $ | 76,644 | $ | 70,249 | $ | 68,393 | $ | 70,249 | ||||||||
ANNUITIES | ||||||||||||||||||||||
SALES | ||||||||||||||||||||||
Variable Annuity | $ | 77,003 | $ | 90,329 | $ | 74,659 | $ | 70,220 | $ | 73,731 | $ | 77,003 | $ | 73,731 | ||||||||
Immediate Annuity | 32,476 | 21,194 | 25,606 | 32,653 | 45,045 | 32,476 | 45,045 | |||||||||||||||
Market Value Adjusted Annuity | 26,483 | 33,065 | 23,032 | 31,644 | 28,373 | 26,483 | 28,373 | |||||||||||||||
Equity Indexed Annuity | 609 | 6,582 | 21,188 | 20,506 | 18,672 | 609 | 18,672 | |||||||||||||||
Total | $ | 136,571 | $ | 151,170 | $ | 144,485 | $ | 155,023 | $ | 165,821 | $ | 136,571 | $ | 165,821 | ||||||||
PRETAX OPERATING INCOME | ||||||||||||||||||||||
Variable Annuity | $ | 3,735 | $ | 4,274 | $ | 3,555 | $ | 14,440 | $ | 5,252 | $ | 3,735 | $ | 5,252 | ||||||||
Fixed Annuity | 329 | 3,871 | 1,372 | 357 | (598 | ) | 329 | (598 | ) | |||||||||||||
Total | $ | 4,064 | $ | 8,145 | $ | 4,927 | $ | 14,797 | $ | 4,654 | $ | 4,064 | $ | 4,654 | ||||||||
DEPOSIT BALANCE | ||||||||||||||||||||||
VA Fixed Annuity | $ | 251,822 | $ | 250,556 | $ | 232,578 | $ | 226,437 | $ | 223,265 | ||||||||||||
VA Separate Account Annuity | 2,176,065 | 2,210,639 | 2,280,264 | 2,310,117 | 2,382,736 | |||||||||||||||||
Sub-total | 2,427,887 | 2,461,195 | 2,512,842 | 2,536,554 | $ | 2,606,001 | ||||||||||||||||
Fixed Annuity | 3,195,043 | 3,202,752 | 3,217,052 | 3,207,784 | 3,201,516 | |||||||||||||||||
Total | $ | 5,622,930 | $ | 5,663,947 | $ | 5,729,894 | $ | 5,744,338 | $ | 5,807,517 | ||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Annuities, Stable Value Contracts, and Asset Protection | 4/27/2006 | |||||||||||||||||||||
Quarterly Earnings Trends (Dollars in thousands) | Page 9 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 2005 | 2006 | ||||||||||||||||
ANNUITIES | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 7,840 | $ | 7,866 | $ | 8,057 | $ | 8,047 | $ | 8,144 | $ | 7,840 | $ | 8,144 | ||||||||
Reinsurance Ceded | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Net Premiums and Policy Fees | 7,840 | 7,866 | 8,057 | 8,047 | 8,144 | 7,840 | 8,144 | |||||||||||||||
Net investment income | 56,150 | 54,786 | 54,008 | 53,756 | 53,494 | 56,150 | 53,494 | |||||||||||||||
RIGL - Derivatives | (162 | ) | 0 | 163 | (352 | ) | (651 | ) | (162 | ) | (651 | ) | ||||||||||
RIGL - All Other Investments | 27,624 | 1,474 | 70 | 1,812 | (90 | ) | 27,624 | (90 | ) | |||||||||||||
Other income | 1,726 | 2,264 | 2,133 | 1,649 | 2,899 | 1,726 | 2,899 | |||||||||||||||
Total Revenues | 93,178 | 66,390 | 64,431 | 64,912 | 63,796 | 93,178 | 63,796 | |||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||
Benefits and settlement expenses | 48,080 | 48,687 | 44,596 | 46,428 | 47,313 | 48,080 | 47,313 | |||||||||||||||
Amortization of deferred policy acquisition costs | 29,638 | 3,453 | 7,663 | (3,242 | ) | 5,126 | 29,638 | 5,126 | ||||||||||||||
Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other operating expenses | 6,346 | 5,911 | 7,174 | 6,170 | 6,706 | 6,346 | 6,706 | |||||||||||||||
Total Benefits and Expenses | 84,064 | 58,051 | 59,433 | 49,356 | 59,145 | 84,064 | 59,145 | |||||||||||||||
INCOME BEFORE INCOME TAX | 9,114 | 8,339 | 4,998 | 15,556 | 4,651 | 9,114 | 4,651 | |||||||||||||||
Adjustments to Reconcile to Operating Income: | ||||||||||||||||||||||
Less: RIGL - Derivatives | (162 | ) | 0 | 163 | (352 | ) | (651 | ) | (162 | ) | (651 | ) | ||||||||||
Add back: Derivative gains related to equity indexed annuities | 0 | 0 | 0 | (351 | ) | (651 | ) | 0 | (651 | ) | ||||||||||||
Less: RIGL - All Other Investments | 27,624 | 1,474 | 70 | 1,812 | (90 | ) | 27,624 | (90 | ) | |||||||||||||
Add back: Related amortization of deferred policy acquisition costs | 22,412 | 1,280 | 162 | 1,052 | 0 | 22,412 | 0 | |||||||||||||||
PRETAX OPERATING INCOME | $ | 4,064 | $ | 8,145 | $ | 4,927 | $ | 14,797 | $ | 4,741 | $ | 4,064 | $ | 4,741 | ||||||||
STABLE VALUE CONTRACTS | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Reinsurance Ceded | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Net Premiums and Policy Fees | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Net investment income | 73,875 | 76,081 | 79,118 | 81,641 | 82,233 | 73,875 | 82,233 | |||||||||||||||
RIGL - Derivatives | 292 | (310 | ) | 416 | (147 | ) | 312 | 292 | 312 | |||||||||||||
RIGL - All Other Investments | 327 | 2,395 | 884 | (19,922 | ) | (5,166 | ) | 327 | (5,166 | ) | ||||||||||||
Other income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total Revenues | 74,494 | 78,166 | 80,418 | 61,572 | 77,379 | 74,494 | 77,379 | |||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||
Benefits and settlement expenses | 57,169 | 60,084 | 62,747 | 66,134 | 67,463 | 57,169 | 67,463 | |||||||||||||||
Amortization of deferred policy acquisition costs | 1,084 | 1,121 | 1,240 | 1,249 | 1,229 | 1,084 | 1,229 | |||||||||||||||
Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other operating expenses | 1,223 | 1,392 | 1,388 | 1,086 | 1,197 | 1,223 | 1,197 | |||||||||||||||
Total Benefits and Expenses | 59,476 | 62,597 | 65,375 | 68,469 | 69,889 | 59,476 | 69,889 | |||||||||||||||
INCOME BEFORE INCOME TAX | 15,018 | 15,569 | 15,043 | (6,897 | ) | 7,490 | 15,018 | 7,490 | ||||||||||||||
Adjustments to Reconcile to Operating Income: | ||||||||||||||||||||||
Less: RIGL-Derivatives | 292 | (310 | ) | 416 | (147 | ) | 312 | 292 | 312 | |||||||||||||
Less: RIGL-All Other Investments | 327 | 2,395 | 884 | (19,922 | ) | (5,166 | ) | 327 | (5,166 | ) | ||||||||||||
PRETAX OPERATING INCOME | $ | 14,399 | $ | 13,484 | $ | 13,743 | $ | 13,172 | $ | 12,344 | $ | 14,399 | $ | 12,344 | ||||||||
ASSET PROTECTION | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 110,375 | $ | 109,846 | $ | 106,685 | $ | 102,997 | $ | 100,690 | $ | 110,375 | $ | 100,690 | ||||||||
Reinsurance Ceded | (62,302 | ) | (59,233 | ) | (60,661 | ) | (68,234 | ) | (55,393 | ) | (62,302 | ) | (55,393 | ) | ||||||||
Net Premiums and Policy Fees | 48,073 | 50,613 | 46,024 | 34,763 | 45,297 | 48,073 | 45,297 | |||||||||||||||
Net investment income | 7,600 | 8,602 | 8,075 | 8,112 | 7,808 | 7,600 | 7,808 | |||||||||||||||
Realized investment gains (losses) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other income | 9,405 | 12,732 | 13,624 | 10,475 | 12,044 | 9,405 | 12,044 | |||||||||||||||
Total Revenues | 65,078 | 71,947 | 67,723 | 53,350 | 65,149 | 65,078 | 65,149 | |||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||
Benefits and settlement expenses | 26,529 | 29,851 | 27,560 | 17,537 | 22,209 | 26,529 | 22,209 | |||||||||||||||
Amortization of deferred policy acquisition costs | 17,546 | 17,669 | 18,052 | 16,207 | 16,920 | 17,546 | 16,920 | |||||||||||||||
Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other operating expenses | 14,831 | 18,135 | 16,009 | 13,271 | 17,282 | 14,831 | 17,282 | |||||||||||||||
Total Benefits and Expenses | 58,906 | 65,655 | 61,621 | 47,015 | 56,411 | 58,906 | 56,411 | |||||||||||||||
INCOME BEFORE INCOME TAX | $ | 6,172 | $ | 6,292 | $ | 6,102 | $ | 6,335 | $ | 8,738 | $ | 6,172 | $ | 8,738 | ||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Stable Value Contracts and Asset Protection Data | 4/27/2006 | |||||||||||||||||||||
(Dollars in thousands) | Page 10 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 3 MOS | 3 MOS | ||||||||||||||||
1ST QTR | 2NDQTR | 3RD QTR | 4TH QTR | 1ST QTR | 2005 | 2006 | ||||||||||||||||
STABLE VALUE CONTRACTS | ||||||||||||||||||||||
SALES | ||||||||||||||||||||||
GIC | $ | 24,050 | $ | 5,000 | $ | 20,500 | $ | 46,800 | $ | 46,200 | $ | 24,050 | $ | 46,200 | ||||||||
GFA - Direct Institutional | 0 | 0 | 0 | 100,000 | 0 | 0 | 0 | |||||||||||||||
GFA - Non-Registered | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
GFA - Registered - Institutional | 350,000 | 350,000 | 300,000 | 35,000 | 0 | 350,000 | 0 | |||||||||||||||
GFA - Registered - Retail | 31,845 | 96,795 | 20,790 | 31,501 | 40,841 | 31,845 | 40,841 | |||||||||||||||
Total | $ | 405,895 | $ | 451,795 | $ | 341,290 | $ | 213,301 | $ | 87,041 | $ | 405,895 | $ | 87,041 | ||||||||
DEPOSIT BALANCE | ||||||||||||||||||||||
Quarter End Balance | $ | 5,670,355 | $ | 5,846,120 | $ | 5,900,740 | $ | 6,057,721 | $ | 5,873,092 | $ | 5,670,355 | $ | 5,873,092 | ||||||||
Average Daily Balance | $ | 5,716,571 | $ | 5,808,943 | $ | 5,973,325 | $ | 5,985,502 | $ | 5,976,606 | $ | 5,716,571 | $ | 5,976,606 | ||||||||
OPERATING SPREAD | 1.04 | % | 0.95 | % | 0.94 | % | 0.90 | % | 0.84 | % | 1.04 | % | 0.84 | % | ||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 3 MOS | 3 MOS | ||||||||||||||||
1STQTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2005 | 2006 | ||||||||||||||||
ASSET PROTECTION | ||||||||||||||||||||||
SALES | ||||||||||||||||||||||
Credit | $ | 50,106 | $ | 51,421 | $ | 56,749 | $ | 50,602 | $ | 31,847 | $ | 50,106 | $ | 31,847 | ||||||||
Service Contracts | 47,138 | 62,437 | 65,301 | 53,780 | 53,717 | 47,138 | 53,717 | |||||||||||||||
Other | 9,075 | 13,567 | 14,812 | 13,776 | 16,921 | 9,075 | 16,921 | |||||||||||||||
Total | $ | 106,319 | $ | 127,425 | $ | 136,862 | $ | 118,158 | $ | 102,485 | $ | 106,319 | $ | 102,485 | ||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Corporate & Other Segment - Quarterly Earnings Trends | 4/27/2006 | |||||||||||||||||||||
(Dollars in thousands) | Page 11 | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2006 | 2005 | 2006 | ||||||||||||||||
REVENUES | ||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 11,030 | $ | 10,494 | $ | 10,555 | $ | 10,362 | $ | 10,510 | $ | 11,030 | $ | 10,510 | ||||||||
Reinsurance Ceded | (75 | ) | (53 | ) | (18 | ) | (27 | ) | (4 | ) | (75 | ) | (4 | ) | ||||||||
Net Premiums and Policy Fees | 10,955 | 10,441 | 10,537 | 10,335 | 10,506 | 10,955 | 10,506 | |||||||||||||||
Net investment income | 32,461 | 24,265 | 43,471 | 33,441 | 28,187 | 32,461 | 28,187 | |||||||||||||||
RIGL - Derivatives | (6,498 | ) | (25,711 | ) | 7,083 | (5,655 | ) | 13,676 | (6,498 | ) | 13,676 | |||||||||||
RIGL - All Other Investments | (73 | ) | 8,611 | 2,658 | 23,533 | 10,409 | (73 | ) | 10,409 | |||||||||||||
Other income | 4,236 | 2,949 | 3,792 | 3,475 | 3,637 | 4,236 | 3,637 | |||||||||||||||
Total Revenues | 41,081 | 20,555 | 67,541 | 65,129 | 66,415 | 41,081 | 66,415 | |||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||
Benefits and settlement expenses | 12,474 | 11,236 | 17,031 | 11,150 | 9,270 | 12,474 | 9,270 | |||||||||||||||
Amortization of deferred policy acquisition costs | 1,085 | 1,026 | 967 | 985 | 955 | 1,085 | 955 | |||||||||||||||
Amortization of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other operating expenses | 26,132 | 24,856 | 26,343 | 29,921 | 27,099 | 26,132 | 27,099 | |||||||||||||||
Total Benefits and Expenses | 39,691 | 37,118 | 44,341 | 42,056 | 37,324 | 39,691 | 37,324 | |||||||||||||||
INCOME BEFORE INCOME TAX | 1,390 | (16,563 | ) | 23,200 | 23,073 | 29,091 | 1,390 | 29,091 | ||||||||||||||
Adjustments to Reconcile to Operating Income: | ||||||||||||||||||||||
Less: RIGL-Derivatives | (6,498 | ) | (25,711 | ) | 7,083 | (5,655 | ) | 13,676 | (6,498 | ) | 13,676 | |||||||||||
Less: RIGL-All Other Investments, net of participating income | (73 | ) | 2,728 | 2,658 | 20,732 | 5,083 | (73 | ) | 5,083 | |||||||||||||
Add back: Derivative gains related to corporate debt and investments | 3,684 | 2,960 | 2,777 | 1,972 | 1,331 | 3,684 | 1,331 | |||||||||||||||
PRETAX OPERATING INCOME | $ | 11,645 | $ | 9,380 | $ | 16,236 | $ | 9,968 | $ | 11,663 | $ | 11,645 | $ | 11,663 | ||||||||