PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||||||||
Quarterly Financial Highlights | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 2007 | 2008 | ||||||||||||||||||||||
Pretax Operating Income * | ||||||||||||||||||||||||||||
Life Marketing | $ | 65,280 | $ | 37,834 | $ | 39,974 | $ | 46,098 | $ | 46,449 | $ | 65,280 | $ | 46,449 | ||||||||||||||
Acquisitions | 32,249 | 30,814 | 30,375 | 35,809 | 33,576 | 32,249 | 33,576 | |||||||||||||||||||||
Annuities | 5,606 | 6,669 | 6,436 | 4,340 | 2,489 | 5,606 | 2,489 | |||||||||||||||||||||
Stable Value Contracts | 12,186 | 12,355 | 13,107 | 12,583 | 16,216 | 12,186 | 16,216 | |||||||||||||||||||||
Asset Protection | 10,084 | 11,522 | 9,905 | 10,048 | 9,852 | 10,084 | 9,852 | |||||||||||||||||||||
Corporate & Other | 1,777 | (1,300 | ) | 2,342 | (6,236 | ) | (29,973 | ) | 1,777 | (29,973 | ) | |||||||||||||||||
Total Pretax Operating Income | $ | 127,182 | $ | 97,894 | $ | 102,139 | $ | 102,642 | $ | 78,609 | $ | 127,182 | $ | 78,609 | ||||||||||||||
Balance Sheet Data | ||||||||||||||||||||||||||||
Total GAAP Assets | $ | 39,791,832 | $ | 40,237,283 | $ | 41,461,169 | $ | 41,786,041 | $ | 41,749,006 | ||||||||||||||||||
ShareOwners' Equity | $ | 2,419,317 | $ | 2,293,542 | $ | 2,405,623 | $ | 2,456,761 | $ | 2,163,860 | ||||||||||||||||||
ShareOwners' Equity (excluding accumulated other comprehensive income)** | $ | 2,381,363 | $ | 2,432,674 | $ | 2,491,334 | $ | 2,537,290 | $ | 2,543,808 | ||||||||||||||||||
Stock Data | ||||||||||||||||||||||||||||
Closing Price | $ | 44.04 | $ | 47.81 | $ | 42.44 | $ | 41.02 | $ | 40.56 | $ | 44.04 | $ | 40.56 | ||||||||||||||
Average Shares Outstanding | ||||||||||||||||||||||||||||
Basic | 71,017,662 | 71,074,976 | 71,074,619 | 71,076,532 | 71,080,703 | 71,017,662 | 71,080,703 | |||||||||||||||||||||
Diluted | 71,487,063 | 71,490,467 | 71,467,009 | 71,467,783 | 71,453,824 | 71,487,063 | 71,453,824 | |||||||||||||||||||||
* "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". | ||||||||||||||||||||||||||||
** "Shareowners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Shareowners' equity" is a GAAP financial measure to which | ||||||||||||||||||||||||||||
"Shareowners' equity excluding accumulated other comprehensive income" may be compared. | ||||||||||||||||||||||||||||
See Page 4 for a reconciliation of "Shareowners' equity excluding accumulated other comprehensive income" to "Shareowners' equity". | ||||||||||||||||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||||||||
GAAP Consolidated Statements Of Income | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 2007 | 2008 | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 657,017 | $ | 691,165 | $ | 676,500 | $ | 702,341 | $ | 662,404 | $ | 657,017 | $ | 662,404 | ||||||||||||||
Reinsurance Ceded | (370,997 | ) | (422,766 | ) | (368,878 | ) | (438,043 | ) | (371,072 | ) | (370,997 | ) | (371,072 | ) | ||||||||||||||
Net Premiums and Policy Fees | 286,020 | 268,399 | 307,622 | 264,298 | 291,332 | 286,020 | 291,332 | |||||||||||||||||||||
Net investment income | 415,682 | 410,436 | 428,792 | 421,024 | 408,465 | 415,682 | 408,465 | |||||||||||||||||||||
RIGL - Derivatives | (2,291 | ) | 76,281 | (37,467 | ) | (28,054 | ) | (1,657 | ) | (2,291 | ) | (1,657 | ) | |||||||||||||||
RIGL - All Other Investments | 13,294 | (66,609 | ) | 43,114 | 18,803 | (28,045 | ) | 13,294 | (28,045 | ) | ||||||||||||||||||
Other income | 73,792 | 57,452 | 51,874 | 49,239 | 45,509 | 73,792 | 45,509 | |||||||||||||||||||||
Total Revenues | 786,497 | 745,959 | 793,935 | 725,310 | 715,604 | 786,497 | 715,604 | |||||||||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||||||||
Benefits and settlement expenses | 467,785 | 458,949 | 504,905 | 462,068 | 494,676 | 467,785 | 494,676 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs and value of business required | 76,380 | 78,036 | 73,863 | 71,991 | 68,370 | 76,380 | 68,370 | |||||||||||||||||||||
Other operating expenses | 85,138 | 80,130 | 70,663 | 61,178 | 65,068 | 85,138 | 65,068 | |||||||||||||||||||||
Interest on indebtedness - subsidiaries | 8,728 | 12,441 | 22,524 | 20,448 | 17,233 | 8,728 | 17,233 | |||||||||||||||||||||
Interest on indebtedness - holding company - other debt | 5,737 | 5,561 | 5,162 | 6,322 | 7,267 | 5,737 | 7,267 | |||||||||||||||||||||
Interest on indebtedness - holding company - hybrid securities | 9,401 | 9,401 | 9,401 | 9,401 | 9,401 | 9,401 | 9,401 | |||||||||||||||||||||
Total Benefits and Expenses | 653,169 | 644,518 | 686,518 | 631,408 | 662,015 | 653,169 | 662,015 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | 133,328 | 101,441 | 107,417 | 93,902 | 53,589 | 133,328 | 53,589 | |||||||||||||||||||||
Income tax expense | 42,745 | 36,336 | 34,425 | 33,016 | 17,707 | 42,745 | 17,707 | |||||||||||||||||||||
Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
NET INCOME | $ | 90,583 | $ | 65,105 | $ | 72,992 | $ | 60,886 | $ | 35,882 | $ | 90,583 | $ | 35,882 | ||||||||||||||
PER SHARE DATA FOR QUARTER | ||||||||||||||||||||||||||||
Operating income-diluted * | $ | 1.21 | $ | 0.88 | $ | 0.97 | $ | 0.93 | $ | 0.73 | ||||||||||||||||||
RIGL - Derivatives net of gains related to corp debt, investments and annuities | (0.03 | ) | 0.68 | (0.34 | ) | (0.24 | ) | 0.04 | ||||||||||||||||||||
RIGL - All Other Investments, net of participating income | 0.09 | (0.65 | ) | 0.39 | 0.16 | (0.27 | ) | |||||||||||||||||||||
Discontinued Operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||
Net income-diluted | $ | 1.27 | $ | 0.91 | $ | 1.02 | $ | 0.85 | $ | 0.50 | ||||||||||||||||||
Average shares outstanding-diluted | 71,487,063 | 71,490,467 | 71,467,009 | 71,467,783 | 71,453,824 | |||||||||||||||||||||||
Dividends paid | $ | 0.215 | $ | 0.225 | $ | 0.225 | $ | 0.225 | $ | 0.225 | ||||||||||||||||||
PER SHARE DATA FOR YTD | ||||||||||||||||||||||||||||
Operating income-diluted * | $ | 1.21 | $ | 2.09 | $ | 3.06 | $ | 3.99 | $ | 0.73 | $ | 1.21 | $ | 0.73 | ||||||||||||||
RIGL - Derivatives net of gains related to corp debt, investments and annuities | (0.03 | ) | 0.65 | 0.31 | 0.07 | 0.04 | (0.03 | ) | 0.04 | |||||||||||||||||||
RIGL - All Other Investments, net of participating income | 0.09 | (0.56 | ) | (0.17 | ) | (0.01 | ) | (0.27 | ) | 0.09 | (0.27 | ) | ||||||||||||||||
Discontinued Operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Net income-diluted | $ | 1.27 | $ | 2.18 | $ | 3.20 | $ | 4.05 | $ | 0.50 | $ | 1.27 | $ | 0.50 | ||||||||||||||
Average shares outstanding-diluted | 71,487,063 | 71,488,786 | 71,481,471 | 71,478,021 | 71,453,824 | 71,487,063 | 71,453,824 | |||||||||||||||||||||
Dividends paid | $ | 0.215 | $ | 0.440 | $ | 0.665 | $ | 0.890 | $ | 0.225 | $ | 0.215 | $ | 0.225 | ||||||||||||||
* "Operating Income" is a non-GAAP financial measure. "Net Income" is a GAAP financial measure to which "Operating Income" may be compared. | ||||||||||||||||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||
GAAP Consolidated Balance Sheets | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Fixed maturities | $ | 21,570,487 | $ | 21,459,631 | $ | 22,278,777 | $ | 23,389,069 | $ | 23,167,901 | ||||||||||
Equity securities | 69,211 | 68,540 | 73,237 | 117,037 | 289,307 | |||||||||||||||
Mortgage loans | 4,025,025 | 4,119,350 | 4,193,776 | 3,284,326 | 3,377,397 | |||||||||||||||
Investment real estate | 38,828 | 12,067 | 9,735 | 8,026 | 7,975 | |||||||||||||||
Policy loans | 822,930 | 819,387 | 816,958 | 818,280 | 813,107 | |||||||||||||||
Other long-term investments | 167,571 | 185,958 | 183,667 | 185,892 | 193,364 | |||||||||||||||
Long-term investments | 26,694,052 | 26,664,933 | 27,556,150 | 27,802,630 | 27,849,051 | |||||||||||||||
Short-term investments | 1,064,768 | 809,957 | 1,105,393 | 1,236,443 | 1,121,138 | |||||||||||||||
Total investments | 27,758,820 | 27,474,890 | 28,661,543 | 29,039,073 | 28,970,189 | |||||||||||||||
Cash | 120,190 | 361,129 | 175,420 | 146,152 | 117,933 | |||||||||||||||
Accrued investment income | 265,772 | 284,181 | 277,696 | 291,734 | 281,396 | |||||||||||||||
Accounts and premiums receivable | 121,051 | 206,857 | 234,351 | 87,883 | 118,533 | |||||||||||||||
Reinsurance receivable | 4,780,956 | 4,881,638 | 4,956,979 | 5,089,100 | 5,287,241 | |||||||||||||||
Deferred policy acquisition costs and value of businesses acquired | 3,212,048 | 3,391,650 | 3,393,961 | 3,400,493 | 3,499,271 | |||||||||||||||
Goodwill | 100,318 | 114,717 | 118,032 | 117,366 | 116,481 | |||||||||||||||
Property and equipment, net | 42,245 | 43,328 | 42,510 | 42,795 | 42,027 | |||||||||||||||
Other assets | 163,543 | 155,102 | 162,930 | 144,296 | 156,486 | |||||||||||||||
Income Tax Receivable | 116,684 | 50,102 | 128,143 | 165,741 | 148,342 | |||||||||||||||
Assets Related to Separate Accounts | ||||||||||||||||||||
Variable Annuity | 2,790,233 | 2,929,160 | 2,955,534 | 2,910,606 | 2,686,752 | |||||||||||||||
Variable Universal Life | 319,972 | 344,529 | 354,070 | 350,802 | 324,355 | |||||||||||||||
TOTAL ASSETS | $ | 39,791,832 | $ | 40,237,283 | $ | 41,461,169 | $ | 41,786,041 | $ | 41,749,006 | ||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||
GAAP Consolidated Balance Sheets | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
LIABILITIES AND SHARE-OWNERS' EQUITY | ||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||||||
LIABILITIES | 2007 | 2007 | 2007 | 2007 | 2008 | |||||||||||||||
Policy liabilities and accruals | ||||||||||||||||||||
Future policy benefits and claims | $ | 15,285,420 | $ | 15,644,544 | $ | 15,898,097 | $ | 16,249,495 | $ | 16,728,276 | ||||||||||
Unearned premiums | 1,020,401 | 1,093,468 | 1,131,611 | 1,179,812 | 1,188,886 | |||||||||||||||
Stable value product deposits | 5,055,382 | 4,806,721 | 4,988,787 | 5,046,463 | 5,207,936 | |||||||||||||||
Annuity deposits | 8,966,309 | 8,786,272 | 8,882,935 | 8,708,383 | 8,726,137 | |||||||||||||||
Other policyholders' funds | 323,898 | 372,299 | 353,301 | 307,950 | 350,779 | |||||||||||||||
Securities sold under repurchase agreements | 2,844 | 312,000 | 144,200 | 0 | 0 | |||||||||||||||
Other liabilities | 1,227,373 | 1,357,877 | 1,310,059 | 1,189,206 | 1,116,630 | |||||||||||||||
Accrued income taxes | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Deferred income taxes | 429,481 | 312,154 | 439,495 | 512,156 | 361,038 | |||||||||||||||
Non-recourse funding obligations | 525,000 | 600,000 | 1,175,000 | 1,375,000 | 1,375,000 | |||||||||||||||
Debt | 466,532 | 444,852 | 482,852 | 559,852 | 579,852 | |||||||||||||||
Liabilities related to variable interest entities | 421,684 | 400,000 | 400,000 | 400,000 | 400,000 | |||||||||||||||
Subordinated debt securities | 524,743 | 524,743 | 524,743 | 524,743 | 524,743 | |||||||||||||||
Minority interest - subsidiaries | 13,243 | 15,122 | 14,862 | 14,812 | 14,762 | |||||||||||||||
Liabilities related to separate accounts | ||||||||||||||||||||
Variable annuity | 2,790,233 | 2,929,160 | 2,955,534 | 2,910,606 | 2,686,752 | |||||||||||||||
Variable universal life | 319,972 | 344,529 | 354,070 | 350,802 | 324,355 | |||||||||||||||
TOTAL LIABILITIES | 37,372,515 | 37,943,741 | 39,055,546 | 39,329,280 | $ | 39,585,146 | ||||||||||||||
SHAREOWNERS' EQUITY | ||||||||||||||||||||
Common stock | 36,626 | 36,626 | 36,626 | 36,626 | 36,626 | |||||||||||||||
Additional paid-in-capital | 440,813 | 442,504 | 443,912 | 444,765 | 446,191 | |||||||||||||||
Treasury stock | (11,468 | ) | (11,181 | ) | (11,140 | ) | (11,140 | ) | (27,998 | ) | ||||||||||
Cumulative Effect Adjustments | 2,146 | 2,146 | 2,146 | 2,146 | 3,616 | |||||||||||||||
Unallocated ESOP shares | (853 | ) | (852 | ) | (852 | ) | (852 | ) | (474 | ) | ||||||||||
Retained earnings | 1,914,099 | 1,963,431 | 2,020,642 | 2,065,745 | 2,085,847 | |||||||||||||||
Accumulated other comprehensive income | 37,954 | (139,132 | ) | (85,711 | ) | (80,529 | ) | (379,948 | ) | |||||||||||
Total Shareowners' Equity | 2,419,317 | 2,293,542 | 2,405,623 | 2,456,761 | 2,163,860 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 39,791,832 | $ | 40,237,283 | $ | 41,461,169 | $ | 41,786,041 | $ | 41,749,006 | ||||||||||
SHAREOWNERS' EQUITY PER SHARE | ||||||||||||||||||||
Total Shareowners' Equity | $ | 34.53 | $ | 32.70 | $ | 34.29 | $ | 35.02 | $ | 30.99 | ||||||||||
Less: Accumulated other comprehensive income | 0.54 | (1.98 | ) | (1.23 | ) | (1.15 | ) | (5.44 | ) | |||||||||||
Excluding accumulated other comprehensive income * | $ | 33.99 | $ | 34.68 | $ | 35.52 | $ | 36.17 | $ | 36.43 | ||||||||||
Total Shareowners' Equity | $ | 2,419,317 | $ | 2,293,542 | $ | 2,405,623 | $ | 2,456,761 | $ | 2,163,860 | ||||||||||
Less: Accumulated other comprehensive income | 37,954 | (139,132 | ) | (85,711 | ) | (80,529 | ) | (379,948 | ) | |||||||||||
Share-owners' Equity (excluding accumulated other comprehensive income) * | $ | 2,381,363 | $ | 2,432,674 | $ | 2,491,334 | $ | 2,537,290 | $ | 2,543,808 | ||||||||||
Common shares outstanding | 70,056,891 | 70,140,728 | 70,147,926 | 70,149,062 | 69,829,037 | |||||||||||||||
Treasury Stock shares | 3,195,069 | 3,111,232 | 3,104,034 | 3,102,898 | 3,422,923 | |||||||||||||||
* "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which | ||||||||||||||||||||
"Share-owners' equity excluding accumulated other comprehensive income" may be compared. | ||||||||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||||||||
Calculation of Operating Earnings Per Share | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 2007 | 2008 | ||||||||||||||||||||||
CALCULATION OF NET INCOME PER SHARE | ||||||||||||||||||||||||||||
Net income | $ | 90,583 | $ | 65,105 | $ | 72,992 | $ | 60,886 | $ | 35,882 | $ | 90,583 | $ | 35,882 | ||||||||||||||
Average shares outstanding-basic | 71,017,662 | 71,074,976 | 71,074,619 | 71,076,532 | 71,080,703 | 71,017,662 | 71,080,703 | |||||||||||||||||||||
Average shares outstanding-diluted | 71,487,063 | 71,490,467 | 71,467,009 | 71,467,783 | 71,453,824 | 71,487,063 | 71,453,824 | |||||||||||||||||||||
Net income per share-basic | $ | 1.28 | $ | 0.92 | $ | 1.03 | $ | 0.85 | $ | 0.50 | $ | 1.28 | $ | 0.50 | ||||||||||||||
Net income per share-diluted | $ | 1.27 | $ | 0.91 | $ | 1.02 | $ | 0.85 | $ | 0.50 | $ | 1.27 | $ | 0.50 | ||||||||||||||
Income from continuing operations | $ | 90,583 | $ | 65,105 | $ | 72,992 | $ | 60,886 | $ | 35,882 | $ | 90,583 | $ | 35,882 | ||||||||||||||
EPS (basic) | $ | 1.28 | $ | 0.92 | $ | 1.03 | $ | 0.85 | $ | 0.50 | $ | 1.28 | $ | 0.50 | ||||||||||||||
EPS (diluted) | $ | 1.27 | $ | 0.91 | $ | 1.02 | $ | 0.85 | $ | 0.50 | $ | 1.27 | $ | 0.50 | ||||||||||||||
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE | ||||||||||||||||||||||||||||
RIGL - Derivatives | $ | (2,291 | ) | $ | 76,281 | $ | (37,467 | ) | $ | (28,054 | ) | $ | (1,657 | ) | $ | (2,291 | ) | $ | (1,657 | ) | ||||||||
Derivative Gains related to Corporate Debt and Investments | (257 | ) | (237 | ) | (132 | ) | (195 | ) | (484 | ) | (257 | ) | (484 | ) | ||||||||||||||
Derivative Gains related to Annuities | (254 | ) | (1,351 | ) | (193 | ) | 1,866 | 6,240 | (254 | ) | 6,240 | |||||||||||||||||
RIGL - All Other Investments, net of participating income | 10,144 | (70,316 | ) | 43,114 | 18,803 | (28,045 | ) | 10,144 | (28,045 | ) | ||||||||||||||||||
Related amortization of DAC & VOBA | (1,196 | ) | (830 | ) | (44 | ) | (1,160 | ) | (1,074 | ) | (1,196 | ) | (1,074 | ) | ||||||||||||||
6,146 | 3,547 | 5,278 | (8,740 | ) | (25,020 | ) | 6,146 | (25,020 | ) | |||||||||||||||||||
Tax effect | (2,151 | ) | (1,242 | ) | (1,847 | ) | 3,059 | 8,757 | (2,151 | ) | 8,757 | |||||||||||||||||
$ | 3,995 | $ | 2,305 | $ | 3,431 | $ | (5,681 | ) | $ | (16,263 | ) | $ | 3,995 | $ | (16,263 | ) | ||||||||||||
RIGL - Derivatives per share-diluted | $ | (0.03 | ) | $ | 0.68 | $ | (0.34 | ) | $ | (0.24 | ) | $ | 0.04 | $ | (0.03 | ) | $ | 0.04 | ||||||||||
RIGL - All Other Investments per share-diluted | $ | 0.09 | $ | 0.65 | $ | 0.39 | $ | 0.16 | $ | (0.27 | ) | $ | 0.09 | $ | (0.27 | ) | ||||||||||||
OPERATING INCOME PER SHARE * | ||||||||||||||||||||||||||||
Net income per share-diluted | $ | 1.27 | $ | 0.91 | $ | 1.02 | $ | 0.85 | $ | 0.50 | $ | 1.27 | $ | 0.50 | ||||||||||||||
Discontinued operations | - | - | - | - | - | - | - | |||||||||||||||||||||
RIGL - Derivatives per share-diluted | (0.03 | ) | 0.68 | (0.34 | ) | (0.24 | ) | 0.04 | (0.03 | ) | 0.04 | |||||||||||||||||
RIGL - All Other Investments, net of participating income per share-diluted | 0.09 | (0.65 | ) | 0.39 | 0.16 | (0.27 | ) | 0.09 | (0.27 | ) | ||||||||||||||||||
Change in accounting principle | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Operating income per share-diluted | $ | 1.21 | $ | 0.88 | $ | 0.97 | $ | 0.93 | $ | 0.73 | $ | 1.21 | $ | 0.73 | ||||||||||||||
NET OPERATING INCOME * | ||||||||||||||||||||||||||||
Net income | $ | 90,583 | $ | 65,105 | $ | 72,992 | $ | 60,886 | $ | 35,882 | $ | 90,583 | $ | 35,882 | ||||||||||||||
Less: RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities | (1,822 | ) | 48,551 | (24,565 | ) | (17,149 | ) | 2,664 | (1,822 | ) | 2,664 | |||||||||||||||||
Less: RIGL - All Other Investments net of tax, amortization, and participating income | 5,816 | (46,245 | ) | 27,996 | 11,468 | (18,927 | ) | 5,816 | (18,927 | ) | ||||||||||||||||||
Net operating income | $ | 86,589 | $ | 62,799 | $ | 69,561 | $ | 66,567 | $ | 52,145 | $ | 86,589 | $ | 52,145 | ||||||||||||||
PRETAX OPERATING INCOME ** | ||||||||||||||||||||||||||||
Income before income tax and discontinued operations | $ | 133,328 | $ | 101,441 | $ | 107,417 | $ | 93,902 | $ | 53,589 | $ | 133,328 | $ | 53,589 | ||||||||||||||
Less: RIGL - Derivatives | (2,291 | ) | 76,281 | (37,467 | ) | (28,054 | ) | (1,657 | ) | (2,291 | ) | (1,657 | ) | |||||||||||||||
Less: Derivative gains related to corporate debt, investments & annuities | (511 | ) | (1,588 | ) | (325 | ) | 1,671 | 5,756 | (511 | ) | 5,756 | |||||||||||||||||
Less: RIGL - All Other Investments, net of participating income | 10,144 | (70,316 | ) | 43,114 | 18,803 | (28,045 | ) | 10,144 | (28,045 | ) | ||||||||||||||||||
Less: Related amortization of DAC & VOBA | (1,196 | ) | (830 | ) | (44 | ) | (1,160 | ) | (1,074 | ) | (1,196 | ) | (1,074 | ) | ||||||||||||||
Pretax operating income | $ | 127,182 | $ | 97,894 | $ | 102,139 | $ | 102,642 | $ | 78,609 | $ | 127,182 | $ | 78,609 | ||||||||||||||
* "Net Operating Income" and "Operating Income Per Share" are non-GAAP financial measures. "Net Income" and "Net Income Per Share" are GAAP | ||||||||||||||||||||||||||||
financial measures to which "Net Operating Income" and "Operating Income Per Share" may be compared. | ||||||||||||||||||||||||||||
** "Pretax Operating Income" is a non-GAAP financial measure. "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating | ||||||||||||||||||||||||||||
Income" may be compared. | ||||||||||||||||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||
Invested Asset Summary | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | ||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | ||||||||||||||||||
Total Portfolio | ||||||||||||||||||||||
Fixed Income | $ | 21,570.5 | $ | 21,459.6 | $ | 22,278.8 | $ | 23,389.1 | $ | 23,167.9 | ||||||||||||
Mortgage Loans | 4,025.0 | 4,119.3 | 4,193.8 | 3,284.3 | 3,377.4 | |||||||||||||||||
Real Estate | 38.8 | 12.1 | 9.7 | 8.0 | 8.0 | |||||||||||||||||
Equities | 69.2 | 68.5 | 73.2 | 117.0 | 289.3 | |||||||||||||||||
Policy Loans | 822.9 | 819.4 | 817.0 | 818.3 | 813.1 | |||||||||||||||||
Short Term Investments | 1,064.8 | 810.0 | 1,105.4 | 1,236.4 | 1,121.1 | |||||||||||||||||
Other Long Term Investments | 167.6 | 186.0 | 183.6 | 185.9 | 193.4 | |||||||||||||||||
Total Invested Assets | $ | 27,758.8 | $ | 27,474.9 | $ | 28,661.5 | $ | 29,039.0 | $ | 28,970.2 | ||||||||||||
Fixed Income | ||||||||||||||||||||||
Corporate Bonds | $ | 10,796.0 | $ | 10,972.0 | $ | 11,474.8 | $ | 11,778.6 | $ | 11,978.3 | ||||||||||||
Residential Mortgage Backed Securities* | 8,331.8 | 8,004.5 | 8,597.5 | 7,040.4 | 6,216.0 | |||||||||||||||||
Commercial Mortgage Backed Securities* | 1,481.3 | 1,232.7 | ||||||||||||||||||||
Asset Backed Securities* | 842.2 | 1,486.1 | ||||||||||||||||||||
US Govt Bonds | 529.4 | 570.8 | 260.4 | 321.8 | 317.7 | |||||||||||||||||
Public Utilities | 1,794.4 | 1,820.3 | 1,853.8 | 1,836.1 | 1,874.1 | |||||||||||||||||
States, Municipals and Political Subdivisions | 118.6 | 91.7 | 92.0 | 88.4 | 62.9 | |||||||||||||||||
Preferred Securities | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||||
Convertibles and Bonds with Warrants | 0.2 | 0.2 | 0.2 | 0.2 | 0.0 | |||||||||||||||||
Total Fixed Income Portfolio | $ | 21,570.5 | $ | 21,459.6 | $ | 22,278.8 | $ | 23,389.1 | $ | 23,167.9 | ||||||||||||
Fixed Income - Quality | ||||||||||||||||||||||
AAA | 44.1 | % | 42.5 | % | 42.3 | % | 43.4 | % | 42.2 | % | ||||||||||||
AA | 8.4 | % | 8.5 | % | 9.5 | % | 8.8 | % | 8.2 | % | ||||||||||||
A | 19.1 | % | 19.8 | % | 18.5 | % | 18.5 | % | 17.8 | % | ||||||||||||
BBB | 26.7 | % | 26.7 | % | 26.6 | % | 25.7 | % | 27.0 | % | ||||||||||||
BB or Less | 1.7 | % | 2.5 | % | 3.1 | % | 3.6 | % | 4.8 | % | ||||||||||||
Redeemable Preferred Stock | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||
Mortgage Loans - Type | ||||||||||||||||||||||
Retail | 66.9 | % | 65.9 | % | 66.4 | % | 64.8 | % | 64.5 | % | ||||||||||||
Apartments | 11.2 | % | 11.6 | % | 10.2 | % | 10.5 | % | 10.8 | % | ||||||||||||
Office Buildings | 12.2 | % | 12.8 | % | 13.0 | % | 13.8 | % | 13.8 | % | ||||||||||||
Warehouses | 7.0 | % | 7.6 | % | 8.2 | % | 8.1 | % | 8.0 | % | ||||||||||||
Miscellaneous | 2.7 | % | 2.1 | % | 2.2 | % | 2.8 | % | 2.9 | % | ||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||
Problem Mortgage Loans | ||||||||||||||||||||||
60 Days Past Due | $ | 2.0 | $ | 0.0 | $ | 0.0 | $ | 7.5 | $ | 7.4 | ||||||||||||
90 Days Past Due | 0.0 | 0.0 | 21.6 | 0.0 | 0.0 | |||||||||||||||||
Renegotiated Loans | 0.1 | 2.1 | 2.1 | 0.0 | 0.0 | |||||||||||||||||
Foreclosed Real Estate | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||
$ | 2.1 | $ | 2.1 | $ | 23.7 | $ | 7.5 | $ | 7.4 | |||||||||||||
Trading Portfolio Composition (excl. Modco Trading Portfolio) | ||||||||||||||||||||||
Asset Class | ||||||||||||||||||||||
AAA | $ | 198.7 | $ | 194.4 | $ | 191.1 | $ | 186.6 | $ | 182.3 | ||||||||||||
AA | 20.0 | 20.0 | 31.7 | 31.4 | 16.6 | |||||||||||||||||
A | 56.8 | 56.3 | 46.1 | 56.8 | 62.4 | |||||||||||||||||
BBB | 121.7 | 132.8 | 137.8 | 136.7 | 153.7 | |||||||||||||||||
BB | 4.9 | 5.0 | 5.0 | 0.0 | 0.0 | |||||||||||||||||
B | 6.4 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||
Short term investments | 6.5 | 4.2 | 6.2 | 15.0 | 17.6 | |||||||||||||||||
Swaps | 3.5 | 6.7 | 3.2 | -4.7 | -13.9 | |||||||||||||||||
Total | $ | 418.5 | $ | 419.4 | $ | 421.1 | $ | 421.8 | $ | 418.7 | ||||||||||||
* Prior to 4th quarter 2007, Residential Mortgage Backed, Commercial Mortgage Backed, and Asset Backed Securities were included in Residential | ||||||||||||||||||||||
Mortgage Backed Securities. | ||||||||||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||||||||
Life Marketing and Acquisitions - Quarterly Earnings Trends | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 2007 | 2008 | ||||||||||||||||||||||
LIFE MARKETING | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 345,685 | $ | 361,624 | $ | 360,450 | $ | 385,268 | $ | 358,783 | $ | 345,685 | $ | 358,783 | ||||||||||||||
Reinsurance Ceded | (207,614 | ) | (239,702 | ) | (203,285 | ) | (262,649 | ) | (207,865 | ) | (207,614 | ) | (207,865 | ) | ||||||||||||||
Net Premiums and Policy Fees | 138,071 | 121,922 | 157,165 | 122,619 | 150,918 | 138,071 | 150,918 | |||||||||||||||||||||
Net investment income | 81,103 | 82,291 | 79,437 | 82,287 | 84,956 | 81,103 | 84,956 | |||||||||||||||||||||
Realized investment gains (losses) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Other income | 51,365 | 30,992 | 27,514 | 28,485 | 25,045 | 51,365 | 25,045 | |||||||||||||||||||||
Total Revenues | 270,539 | 235,205 | 264,116 | 233,391 | 260,919 | 270,539 | 260,919 | |||||||||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||||||||
Benefits and settlement expenses | 149,329 | 152,147 | 182,010 | 151,577 | 177,778 | 149,329 | 177,778 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs and value of businesses acquired | 28,698 | 25,564 | 27,807 | 24,025 | 26,923 | 28,698 | 26,923 | |||||||||||||||||||||
Other operating expenses | 27,232 | 19,660 | 14,325 | 11,691 | 9,769 | 27,232 | 9,769 | |||||||||||||||||||||
Total Benefits and Expenses | 205,259 | 197,371 | 224,142 | 187,293 | 214,470 | 205,259 | 214,470 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | $ | 65,280 | $ | 37,834 | $ | 39,974 | $ | 46,098 | $ | 46,449 | $ | 65,280 | $ | 46,449 | ||||||||||||||
ACQUISITIONS | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 194,481 | $ | 214,464 | $ | 198,381 | $ | 203,370 | $ | 191,492 | $ | 194,481 | $ | 191,492 | ||||||||||||||
Reinsurance Ceded | (118,241 | ) | (137,370 | ) | (122,347 | ) | (132,582 | ) | (115,763 | ) | (118,241 | ) | (115,763 | ) | ||||||||||||||
Net Premiums and Policy Fees | 76,240 | 77,094 | 76,034 | 70,788 | 75,729 | 76,240 | 75,729 | |||||||||||||||||||||
Net investment income | 148,986 | 145,263 | 143,342 | 141,374 | 136,213 | 148,986 | 136,213 | |||||||||||||||||||||
RIGL - Derivatives | (3,703 | ) | 71,782 | (38,782 | ) | (22,675 | ) | 28,590 | (3,703 | ) | 28,590 | |||||||||||||||||
RIGL - All Other Investments | 38,431 | 20,080 | (36,318 | ) | 7,933 | (36,318 | ) | |||||||||||||||||||||
Other income | 2,248 | 2,525 | 2,405 | 2,284 | 1,421 | 2,248 | 1,421 | |||||||||||||||||||||
Total Revenues | 231,704 | 227,448 | 221,430 | 211,851 | 205,635 | 231,704 | 205,635 | |||||||||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||||||||
Benefits and settlement expenses | 161,904 | 158,284 | 162,460 | 151,323 | 154,420 | 161,904 | 154,420 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs and value of businesses acquired | 20,554 | 19,977 | 18,435 | 20,273 | 19,596 | 20,554 | 19,596 | |||||||||||||||||||||
Other operating expenses | 13,373 | 16,584 | 10,772 | 7,478 | 6,865 | 13,373 | 6,865 | |||||||||||||||||||||
Total Benefits and Expenses | 195,831 | 194,845 | 191,667 | 179,074 | 180,881 | 195,831 | 180,881 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | 35,873 | 32,603 | 29,763 | 32,777 | 24,754 | 35,873 | 24,754 | |||||||||||||||||||||
Adjustments to Reconcile to Operating Income: | ||||||||||||||||||||||||||||
Less: RIGL - Derivatives | (3,703 | ) | 71,782 | (38,782 | ) | (22,675 | ) | 28,590 | (3,703 | ) | 28,590 | |||||||||||||||||
Less: RIGL - All Other Investments | 38,431 | 20,080 | (36,318 | ) | 7,933 | (36,318 | ) | |||||||||||||||||||||
Add back: Related amortization of deferred policy acquisition costs and value of businesses acquired | 261 | 437 | 1,094 | 606 | 1,094 | |||||||||||||||||||||||
PRETAX OPERATING INCOME | $ | 32,249 | $ | 30,814 | $ | 30,375 | $ | 35,809 | $ | 33,576 | $ | 32,249 | $ | 33,576 | ||||||||||||||
PROTECTIVE LIFE CORPORATION | |||||||||||||||||||||||||||||
Life Marketing and Annuities Data | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 3 MOS | 3 MOS | |||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2007 | 2008 | |||||||||||||||||||||||
LIFE MARKETING | |||||||||||||||||||||||||||||
SALES BY PRODUCT | |||||||||||||||||||||||||||||
Term | $ | 33,492 | $ | 43,955 | $ | 36,326 | $ | 31,544 | $ | 27,008 | $ | 33,492 | $ | 27,008 | |||||||||||||||
U/L | 14,197 | 18,515 | 24,761 | 18,290 | 14,663 | 14,197 | 14,663 | ||||||||||||||||||||||
VUL | 1,828 | 2,181 | 1,826 | 1,850 | 1,604 | 1,828 | 1,604 | ||||||||||||||||||||||
Total | $ | 49,517 | $ | 64,651 | $ | 62,913 | $ | 51,684 | $ | 43,275 | $ | 49,517 | $ | 43,275 | |||||||||||||||
SALES BY DISTRIBUTION | |||||||||||||||||||||||||||||
Brokerage general agents | $ | 29,879 | $ | 41,210 | $ | 35,919 | $ | 31,250 | $ | 24,396 | $ | 29,879 | $ | 24,396 | |||||||||||||||
Independent agents | 8,328 | 10,629 | 11,461 | 8,843 | 8,852 | 8,328 | 8,852 | ||||||||||||||||||||||
Stockbrokers/banks | 8,493 | 9,452 | 9,651 | 8,760 | 8,447 | 8,493 | 8,447 | ||||||||||||||||||||||
Direct Response & BOLI | 2,817 | 3,360 | 5,882 | 2,831 | 1,580 | 2,817 | 1,580 | ||||||||||||||||||||||
Total | $ | 49,517 | $ | 64,651 | $ | 62,913 | $ | 51,684 | $ | 43,275 | $ | 49,517 | $ | 43,275 | |||||||||||||||
ANNUITIES | |||||||||||||||||||||||||||||
SALES | |||||||||||||||||||||||||||||
Variable Annuity | $ | 78,982 | $ | 123,263 | $ | 147,275 | $ | 122,962 | $ | 92,792 | $ | 78,982 | $ | 92,792 | |||||||||||||||
Immediate Annuity | 54,004 | 61,517 | 58,292 | 103,115 | 225,759 | 54,004 | 225,759 | ||||||||||||||||||||||
Single Premium Deferred Annuity | 69,860 | 114,326 | 130,293 | 65,016 | 81,891 | 69,860 | 81,891 | ||||||||||||||||||||||
Market Value Adjusted Annuity | 104,876 | 121,839 | 170,122 | 116,472 | 208,423 | 104,876 | 208,423 | ||||||||||||||||||||||
Equity Indexed Annuity | 7,451 | 7,872 | 4,987 | 3,900 | 3,175 | 7,451 | 3,175 | ||||||||||||||||||||||
Total | $ | 315,173 | $ | 428,817 | $ | 510,969 | $ | 411,465 | $ | 612,040 | $ | 315,173 | $ | 612,040 | |||||||||||||||
PRETAX OPERATING INCOME | |||||||||||||||||||||||||||||
Variable Annuity | $ | 4,673 | $ | 5,114 | $ | 3,565 | $ | 5,828 | $ | 4,068 | $ | 4,673 | $ | 4,068 | |||||||||||||||
Fixed Annuity | 933 | 1,555 | 2,871 | (1,488 | ) | (1,579 | ) | 933 | (1,579 | ) | |||||||||||||||||||
Total | $ | 5,606 | $ | 6,669 | $ | 6,436 | $ | 4,340 | $ | 2,489 | $ | 5,606 | $ | 2,489 | |||||||||||||||
DEPOSIT BALANCE | |||||||||||||||||||||||||||||
VA Fixed Annuity | $ | 194,479 | $ | 214,966 | $ | 234,950 | $ | 214,220 | $ | 190,968 | |||||||||||||||||||
VA Separate Account Annuity | 2,594,554 | 2,725,302 | 2,750,591 | 2,706,239 | 2,501,975 | ||||||||||||||||||||||||
Sub-total | 2,789,033 | 2,940,268 | 2,985,541 | 2,920,459 | 2,692,943 | ||||||||||||||||||||||||
Fixed Annuity | 3,929,194 | 4,164,402 | 4,468,045 | 4,682,912 | 5,114,313 | ||||||||||||||||||||||||
Total | $ | 6,718,227 | $ | 7,104,670 | $ | 7,453,586 | $ | 7,603,371 | $ | 7,807,256 | |||||||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||||||||
Annuities, Stable Value Contracts, and Asset Protection | ||||||||||||||||||||||||||||
Quarterly Earnings Trends (Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 2007 | 2008 | ||||||||||||||||||||||
ANNUITIES | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 8,262 | $ | 8,633 | $ | 8,481 | $ | 8,787 | $ | 8,191 | $ | 8,262 | $ | 8,191 | ||||||||||||||
Reinsurance Ceded | - | - | - | - | - | - | - | |||||||||||||||||||||
Net Premiums and Policy Fees | 8,262 | 8,633 | 8,481 | 8,787 | 8,191 | 8,262 | 8,191 | |||||||||||||||||||||
Net investment income | 60,861 | 64,890 | 69,313 | 72,244 | 77,286 | 60,861 | 77,286 | |||||||||||||||||||||
RIGL - Derivatives | 254 | 1,351 | 193 | (1,866 | ) | (6,240 | ) | 254 | (6,240 | ) | ||||||||||||||||||
RIGL - All Other Investments | 1,664 | 53 | (266 | ) | 557 | 20 | 1,664 | 20 | ||||||||||||||||||||
Other income | 2,713 | 2,797 | 2,769 | 3,006 | 3,003 | 2,713 | 3,003 | |||||||||||||||||||||
Total Revenues | 73,754 | 77,724 | 80,490 | 82,728 | 82,260 | 73,754 | 82,260 | |||||||||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||||||||
Benefits and settlement expenses | 55,949 | 56,101 | 62,731 | 65,429 | 67,416 | 55,949 | 67,416 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs and value of businesses acquired | 5,128 | 9,909 | 5,022 | 7,626 | 5,901 | 5,128 | 5,901 | |||||||||||||||||||||
Other operating expenses | 5,997 | 5,045 | 6,350 | 5,499 | 6,414 | 5,997 | 6,414 | |||||||||||||||||||||
Total Benefits and Expenses | 67,074 | 71,055 | 74,103 | 78,554 | 79,731 | 67,074 | 79,731 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | 6,680 | 6,669 | 6,387 | 4,174 | 2,529 | 6,680 | 2,529 | |||||||||||||||||||||
Adjustments to Reconcile to Operating Income: | ||||||||||||||||||||||||||||
Less: RIGL - Derivatives | 254 | 1,351 | 193 | (1,866 | ) | (6,240 | ) | 254 | (6,240 | ) | ||||||||||||||||||
Add back: Derivative gains related to equity indexted annuities | 254 | 1,351 | 193 | (1,866 | ) | (6,240 | ) | 254 | (6,240 | ) | ||||||||||||||||||
Less: RIGL - All Other Investments | 1,664 | 53 | (266 | ) | 557 | 20 | 1,664 | 20 | ||||||||||||||||||||
Add back: Related amortization of deferred policy acquisition costs | 590 | 53 | (217 | ) | 723 | (20 | ) | 590 | (20 | ) | ||||||||||||||||||
PRETAX OPERATING INCOME | $ | 5,606 | $ | 6,669 | $ | 6,436 | $ | 4,340 | $ | 2,489 | $ | 5,606 | $ | 2,489 | ||||||||||||||
STABLE VALUE CONTRACTS | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Reinsurance Ceded | - | - | - | - | - | - | - | |||||||||||||||||||||
Net Premiums and Policy Fees | - | - | - | - | - | - | - | |||||||||||||||||||||
Net investment income | 79,101 | 71,478 | 73,501 | 76,121 | 78,361 | 79,101 | 78,361 | |||||||||||||||||||||
RIGL - Derivatives | 4,270 | (104 | ) | (148 | ) | 237 | 220 | 4,270 | 220 | |||||||||||||||||||
RIGL - All Other Investments | (2,845 | ) | (479 | ) | (185 | ) | 648 | 5,213 | (2,845 | ) | 5,213 | |||||||||||||||||
Other income | - | - | - | - | - | - | - | |||||||||||||||||||||
Total Revenues | 80,526 | 70,895 | 73,168 | 77,006 | 83,794 | 80,526 | 83,794 | |||||||||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||||||||
Benefits and settlement expenses | 64,719 | 57,097 | 58,340 | 61,304 | 59,929 | 64,719 | 59,929 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs and value of businesses acquired | 1,168 | 987 | 985 | 1,059 | 1,067 | 1,168 | 1,067 | |||||||||||||||||||||
Other operating expenses | 1,028 | 1,039 | 1,069 | 1,175 | 1,149 | 1,028 | 1,149 | |||||||||||||||||||||
Total Benefits and Expenses | 66,915 | 59,123 | 60,394 | 63,538 | 62,145 | 66,915 | 62,145 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | 13,611 | 11,772 | 12,774 | 13,468 | 21,649 | 13,611 | 21,649 | |||||||||||||||||||||
Adjustments to Reconcile to Operating Income: | ||||||||||||||||||||||||||||
Less: RIGL-Derivatives | 4,270 | (104 | ) | (148 | ) | 237 | 220 | 4,270 | 220 | |||||||||||||||||||
Less: RIGL-All Other Investments | (2,845 | ) | (479 | ) | (185 | ) | 648 | 5,213 | (2,845 | ) | 5,213 | |||||||||||||||||
PRETAX OPERATING INCOME | $ | 12,186 | $ | 12,355 | $ | 13,107 | $ | 12,583 | $ | 16,216 | $ | 12,186 | $ | 16,216 | ||||||||||||||
ASSET PROTECTION | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 99,420 | $ | 97,985 | $ | 101,189 | $ | 96,518 | $ | 95,335 | $ | 99,420 | $ | 95,335 | ||||||||||||||
Reinsurance Ceded | (45,138 | ) | (45,689 | ) | (43,244 | ) | (42,808 | ) | (47,443 | ) | (45,138 | ) | (47,443 | ) | ||||||||||||||
Net Premiums and Policy Fees | 54,282 | 52,296 | 57,945 | 53,710 | 47,892 | 54,282 | 47,892 | |||||||||||||||||||||
Net investment income | 9,212 | 9,467 | 10,188 | 10,233 | 9,905 | 9,212 | 9,905 | |||||||||||||||||||||
Realized investment gains (losses) | - | - | - | - | - | - | - | |||||||||||||||||||||
Other income | 16,529 | 20,455 | 19,330 | 15,740 | 15,136 | 16,529 | 15,136 | |||||||||||||||||||||
Total Revenues | 80,023 | 82,218 | 87,463 | 79,683 | 72,933 | 80,023 | 72,933 | |||||||||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||||||||
Benefits and settlement expenses | 25,815 | 26,113 | 30,779 | 24,105 | 24,766 | 25,815 | 24,766 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs and value of businesses acquired | 20,703 | 21,464 | 21,291 | 18,822 | 14,332 | 20,703 | 14,332 | |||||||||||||||||||||
Other operating expenses | 23,421 | 23,119 | 25,488 | 26,708 | 23,983 | 23,421 | 23,983 | |||||||||||||||||||||
Total Benefits and Expenses | 69,939 | 70,696 | 77,558 | 69,635 | 63,081 | 69,939 | 63,081 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | $ | 10,084 | $ | 11,522 | $ | 9,905 | $ | 10,048 | $ | 9,852 | $ | 10,084 | $ | 9,852 | ||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||||||||
Stable Value Contracts and Asset Protection Data | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 3 MOS | 3 MOS | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2007 | 2008 | ||||||||||||||||||||||
STABLE VALUE CONTRACTS | ||||||||||||||||||||||||||||
SALES | ||||||||||||||||||||||||||||
GIC | $ | 2,500 | $ | 75,000 | $ | 54,500 | $ | 800 | $ | 74,232 | $ | 2,500 | $ | 74,232 | ||||||||||||||
GFA - Direct Institutional | 0 | 0 | 0 | 182,179 | 0 | - | - | |||||||||||||||||||||
GFA - Non-Registered | 0 | 0 | 0 | 0 | 0 | - | - | |||||||||||||||||||||
GFA - Registered - Institutional | 0 | 50,000 | 475,000 | 0 | 450,000 | - | 450,000 | |||||||||||||||||||||
GFA - Registered - Retail | 13,120 | 10,014 | 42,735 | 20,796 | 113,404 | 13,120 | 113,404 | |||||||||||||||||||||
Total | $ | 15,620 | $ | 135,014 | $ | 572,235 | $ | 203,775 | $ | 637,636 | $ | 15,620 | $ | 637,636 | ||||||||||||||
DEPOSIT BALANCE | ||||||||||||||||||||||||||||
Quarter End Balance | $ | 5,055,382 | $ | 4,806,721 | $ | 4,988,787 | $ | 5,046,463 | $ | 5,207,936 | $ | 5,055,382 | $ | 5,207,936 | ||||||||||||||
Average Daily Balance | $ | 5,461,832 | $ | 4,780,565 | $ | 4,826,108 | $ | 4,964,733 | $ | 5,140,310 | $ | 5,461,832 | $ | 5,140,310 | ||||||||||||||
OPERATING SPREAD | 0.92 | % | 1.04 | % | 1.09 | % | 1.02 | % | 1.26 | % | 0.92 | % | 1.26 | % | ||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 3 MOS | 3 MOS | ||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 2007 | 2008 | ||||||||||||||||||||||
ASSET PROTECTION | ||||||||||||||||||||||||||||
SALES | ||||||||||||||||||||||||||||
Credit | $ | 28,082 | $ | 31,579 | $ | 27,686 | $ | 26,271 | $ | 22,790 | $ | 28,082 | $ | 22,790 | ||||||||||||||
Service Contracts | 74,807 | 90,588 | 96,189 | 79,772 | 71,663 | 74,807 | 71,663 | |||||||||||||||||||||
Other | 30,186 | 28,046 | 20,763 | 18,347 | 16,262 | 30,186 | 16,262 | |||||||||||||||||||||
Total | $ | 133,075 | $ | 150,213 | $ | 144,638 | $ | 124,390 | $ | 110,715 | $ | 133,075 | $ | 110,715 | ||||||||||||||
Note: The Asset Protection sales amounts relating to Service Contracts and Other lines for 1Q07 thru 3Q07 have been adjusted to provide a consistent presentation with 4Q07 and 1Q08. | ||||||||||||||||||||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||||||||||||||||||
Corporate & Other Segment - Quarterly Earnings Trends | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | 1ST QTR | 3 MOS | 3 MOS | ||||||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2008 | 2007 | 2008 | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Gross Premiums and Policy Fees | $ | 9,169 | $ | 8,458 | $ | 7,999 | $ | 8,399 | $ | 8,603 | $ | 9,169 | $ | 8,603 | ||||||||||||||
Reinsurance Ceded | (4 | ) | (4 | ) | (2 | ) | (5 | ) | (1 | ) | (4 | ) | (1 | ) | ||||||||||||||
Net Premiums and Policy Fees | 9,165 | 8,454 | 7,997 | 8,394 | 8,602 | 9,165 | 8,602 | |||||||||||||||||||||
Net investment income | 36,419 | 37,047 | 53,011 | 38,765 | 21,744 | 36,419 | 21,744 | |||||||||||||||||||||
RIGL - Derivatives | (3,112 | ) | 3,252 | 1,270 | (3,751 | ) | (24,227 | ) | (3,112 | ) | (24,227 | ) | ||||||||||||||||
RIGL - All Other Investments | 6,542 | 3,033 | 5,134 | (2,482 | ) | 3,040 | 6,542 | 3,040 | ||||||||||||||||||||
Other income | 937 | 683 | (144 | ) | (276 | ) | 904 | 937 | 904 | |||||||||||||||||||
Total Revenues | 49,951 | 52,469 | 67,268 | 40,650 | 10,063 | 49,951 | 10,063 | |||||||||||||||||||||
BENEFITS & EXPENSES | ||||||||||||||||||||||||||||
Benefits and settlement expenses | 10,069 | 9,207 | 8,585 | 8,330 | 10,367 | 10,069 | 10,367 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs and value of businesses acquired | 129 | 135 | 323 | 186 | 551 | 129 | 551 | |||||||||||||||||||||
Other operating expenses | 37,953 | 42,086 | 49,746 | 44,798 | 50,789 | 37,953 | 50,789 | |||||||||||||||||||||
Total Benefits and Expenses | 48,151 | 51,428 | 58,654 | 53,314 | 61,707 | 48,151 | 61,707 | |||||||||||||||||||||
INCOME BEFORE INCOME TAX | 1,800 | 1,041 | 8,614 | (12,664 | ) | (51,644 | ) | 1,800 | (51,644 | ) | ||||||||||||||||||
Adjustments to Reconcile to Operating Income: | ||||||||||||||||||||||||||||
Less: RIGL-Derivatives | (3,112 | ) | 3,252 | 1,270 | (3,751 | ) | (24,227 | ) | (3,112 | ) | (24,227 | ) | ||||||||||||||||
Less: RIGL-All Other Investments, net of participating income | 3,392 | (674 | ) | 5,134 | (2,482 | ) | 3,040 | 3,392 | 3,040 | |||||||||||||||||||
Add back: Derivative gains related to corporate debt and investments | 257 | 237 | 132 | 195 | 484 | 257 | 484 | |||||||||||||||||||||
PRETAX OPERATING INCOME | $ | 1,777 | $ | (1,300 | ) | $ | 2,342 | $ | (6,236 | ) | $ | (29,973 | ) | $ | 1,777 | $ | (29,973 | ) | ||||||||||