Protective Life (PLPDZ) 8-K Protective Announces Second Quarter 2008 Earnings

PROTECTIVE LIFE CORPORATION																	DRAFT
Quarterly Financial Highlights
(Dollars in thousands)
(Unaudited)
	2ND QTR			3RD QTR		4TH QTR			1ST QTR			2ND QTR			6 MOS		6 MOS
	2007			2007		2007			2008			2008			2007		2008
Pretax Operating Income *
Life Marketing	$	37,834		$	39,974	$	46,098		$	46,449		$	38,127		$	103,114	$	84,576
Acquisitions		30,814			30,375		35,809			33,576			34,514			63,063		68,090
Annuities		6,669			6,436		4,340			2,489			9,487			12,275		11,976
Stable Value Contracts		12,355			13,107		12,583			16,216			17,545			24,541		33,761
Asset Protection		11,522			9,905		10,048			9,852			6,664			21,606		16,516
Corporate & Other		(1,300	)		2,342		(6,236	)		(29,973	)		(2,093	)		477		(32,066	)
Total Pretax Operating Income	$	97,894		$	102,139	$	102,642		$	78,609		$	104,244		$	225,076	$	182,853
Balance Sheet Data
Total GAAP Assets	$	40,237,283		$	41,461,169	$	41,786,041		$	41,749,006		$	42,636,077
ShareOwners' Equity	$	2,293,542		$	2,405,623	$	2,456,761		$	2,163,860		$	2,081,742
ShareOwners' Equity (excluding accumulated    other comprehensive income) **	$	2,432,674		$	2,491,334	$	2,537,290		$	2,543,808		$	2,567,964
Stock Data
Closing Price	$	47.81		$	42.44	$	41.02		$	40.56		$	38.05		$	47.81	$	38.05
Average Shares Outstanding
Basic		71,074,976			71,074,619		71,076,532			71,080,703			71,116,961			71,046,489		71,098,832
Diluted		71,490,467			71,467,009		71,467,783			71,453,824			71,442,599			71,488,786		71,448,211
* "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																		DRAFT
GAAP Consolidated Statement of Income
(Dollars in thousands)
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR				2ND QTR		6 MOS			6 MOS
	2007			2007			2007			2008			2008			2007			2008
REVENUES
Gross Premiums and Policy Fees	$	691,165		$	676,500		$	702,341		$	662,404		$	678,873		$	1,348,182		$	1,341,277
Reinsurance Ceded		(422,766	)		(368,878	)		(438,043	)		(371,072	)		(423,774	)		(793,763	)		(794,846	)
Net Premiums and Policy Fees		268,399			307,622			264,298			291,332			255,099			554,419			546,431
Net investment income		410,436			428,792			421,024			408,465			438,941			826,118			847,406
RIGL - Derivatives		76,281			(37,467	)		(28,054	)		(1,657	)		65,087			73,990			63,430
RIGL - All Other Investments		(66,609	)		43,114			18,803			(28,045	)		(112,411	)		(53,315	)		(140,456	)
Other income		57,452			51,874			49,239			45,509			47,983			131,244			93,492
Total Revenues		745,959			793,935			725,310			715,604			694,699			1,532,456			1,410,303
BENEFITS & EXPENSES
Benefits and settlement expenses		458,949			504,905			462,068			494,676			470,344			926,734			965,020
Amortization of deferred policy acquisition   costs and value of businesses acquired		78,036			73,863			71,991			68,370			71,450			154,416			139,820
Other operating expenses		80,130			70,663			61,178			65,068			60,268			165,268			125,336
Interest on indebtedness - subsidiaries		12,441			22,524			20,448			17,233			18,557			21,169			35,790
Interest on indebtedness - holding company -   other debt		5,561			5,162			6,322			7,267			7,200			11,298			14,467
Interest on indebtedness - holding company -   hybrid securities		9,401			9,401			9,401			9,401			9,401			18,802			18,802
Total Benefits and Expenses		644,518			686,518			631,408			662,015			637,220			1,297,687			1,299,235
INCOME BEFORE INCOME TAX		101,441			107,417			93,902			53,589			57,479			234,769			111,068
Income tax expense		36,336			34,425			33,016			17,707			19,295			79,081			37,002
Discontinued Operations		0			0			0			0			0			0			0
NET INCOME	$	65,105		$	72,992		$	60,886		$	35,882		$	38,184		$	155,688		$	74,066
PER SHARE DATA FOR QUARTER
Operating income-diluted *	$	0.88		$	0.97		$	0.93		$	0.73		$	0.96
RIGL - Derivatives net of gains related to corp   debt, investments and annuities		0.68			(0.34	)		(0.24	)		0.04			0.59
RIGL - All Other Investments, net of   participating income		(0.65	)		0.39			0.16			(0.27	)		(1.02	)
Discontinued Operations		0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	0.91		$	1.02		$	0.85		$	0.50		$	0.53
Average shares outstanding-diluted		71,490,467			71,467,009			71,467,783			71,453,824			71,442,599
Dividends paid	$	0.225		$	0.225		$	0.225		$	0.225		$	0.235
PER SHARE DATA FOR YTD
Operating income-diluted *	$	2.09		$	3.06		$	3.99		$	0.73		$	1.69		$	2.09		$	1.69
RIGL - Derivatives net of gains related to corp   debt, investments and annuities		0.65			0.31			0.07			0.04			0.63			0.65			0.63
RIGL - All Other Investments, net of   participating income		(0.56	)		(0.17	)		(0.01	)		(0.27	)		(1.28	)		(0.56	)		(1.28	)
Discontinued Operations		0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	2.18		$	3.20		$	4.05		$	0.50		$	1.04		$	2.18		$	1.04
Average shares outstanding-diluted		71,488,786			71,481,471			71,478,021			71,453,824			71,448,211			71,488,786			71,448,211
Dividends paid	$	0.440		$	0.665		$	0.890		$	0.225		$	0.460		$	0.440		$	0.460
* "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
(Dollars in thousands)
(Unaudited)
	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR
	2007		2007		2007		2008		2008
ASSETS
Fixed maturities	$	21,459,631	$	22,278,777	$	23,389,069	$	23,167,901	$	24,097,693
Equity securities		68,540		73,237		117,037		289,307		357,672
Mortgage loans		4,119,350		4,193,776		3,284,326		3,377,397		3,523,121
Investment real estate		12,067		9,735		8,026		7,975		7,834
Policy loans		819,387		816,958		818,280		813,107		805,105
Other long-term investments		185,958		183,667		185,892		193,364		222,770
Long-term investments		26,664,933		27,556,150		27,802,630		27,849,051		29,014,195
Short-term investments		809,957		1,105,393		1,236,443		1,121,138		839,973
Total investments		27,474,890		28,661,543		29,039,073		28,970,189		29,854,168
Cash		361,129		175,420		146,152		117,933		107,367
Accrued investment income		284,181		277,696		291,734		281,396		294,908
Accounts and premiums receivable		206,857		234,351		87,883		118,533		139,123
Reinsurance receivable		4,881,638		4,956,979		5,089,100		5,287,241		5,203,089
Deferred policy acquisition costs and value of businesses acquired		3,391,650		3,393,961		3,400,493		3,499,271		3,629,243
Goodwill		114,717		118,032		117,366		116,481		116,307
Property and equipment, net		43,328		42,510		42,795		42,027		40,924
Other assets		155,102		162,930		144,296		156,486		163,752
Income Tax Receivable		50,102		128,143		165,741		148,342		120,248
Assets Related to Separate Accounts
Variable Annuity		2,929,160		2,955,534		2,910,606		2,686,752		2,641,203
Variable Universal Life		344,529		354,070		350,802		324,355		325,745
TOTAL ASSETS	$	40,237,283	$	41,461,169	$	41,786,041	$	41,749,006	$	42,636,077

PROTECTIVE LIFE CORPORATION							DRAFT
GAAP Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
LIABILITIES AND SHARE-OWNERS' EQUITY
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR
LIABILITIES	2007			2007			2007			2008			2008
Policy liabilities and accruals
Future policy benefits and claims	$	15,644,544		$	15,898,097		$	16,249,495		$	16,728,276		$	16,772,722
Unearned premiums		1,093,468			1,131,611			1,179,812			1,188,886			1,222,142
Stable value product deposits		4,806,721			4,988,787			5,046,463			5,207,936			5,442,022
Annuity deposits		8,786,272			8,882,935			8,708,383			8,726,137			8,886,520
Other policyholders' funds		372,299			353,301			307,950			350,779			405,653
Securities sold under repurchase agreements		312,000			144,200			0			0			360,000
Other liabilities		1,357,877			1,310,059			1,189,206			1,116,630			1,306,493
Accrued income taxes		0			0			0			0			0
Deferred income taxes		312,154			439,495			512,156			361,038			317,531
Non-recourse funding obligations		600,000			1,175,000			1,375,000			1,375,000			1,375,000
Debt		444,852			482,852			559,852			579,852			559,852
Liabilities related to variable interest entities		400,000			400,000			400,000			400,000			400,000
Subordinated debt securities		524,743			524,743			524,743			524,743			524,743
Minority interest - subsidiaries		15,122			14,862			14,812			14,762			14,709
Liabilities related to separate accounts
Variable annuity		2,929,160			2,955,534			2,910,606			2,686,752			2,641,203
Variable universal life		344,529			354,070			350,802			324,355			325,745
TOTAL LIABILITIES		37,943,741			39,055,546			39,329,280			39,585,146		$	40,554,335
SHAREOWNERS' EQUITY
Common stock		36,626			36,626			36,626			36,626			36,626
Additional paid-in-capital		442,504			443,912			444,765			446,191			447,914
Treasury stock		(11,181	)		(11,140	)		(11,140	)		(27,998	)		(27,334	)
Cumulative Effect Adjustments		2,146			2,146			2,146			3,616			3,616
Unallocated ESOP shares		(852	)		(852	)		(852	)		(474	)		(474	)
Retained earnings		1,963,431			2,020,642			2,065,745			2,085,847			2,107,616
Accumulated other comprehensive income		(139,132	)		(85,711	)		(80,529	)		(379,948	)		(486,222	)
Total Shareowners' Equity		2,293,542			2,405,623			2,456,761			2,163,860			2,081,742
TOTAL LIABILITIES AND EQUITY	$	40,237,283		$	41,461,169		$	41,786,041		$	41,749,006		$	42,636,077
SHAREOWNERS' EQUITY PER SHARE
Total Shareowners' Equity	$	32.70		$	34.29		$	35.02		$	30.99		$	29.80
Less: Accumulated other comprehensive income		(1.98	)		(1.23	)		(1.15	)		(5.44	)		(6.96	)
Excluding accumulated other comprehensive income *	$	34.68		$	35.52		$	36.17		$	36.43		$	36.76
Total Shareowners' Equity	$	2,293,542		$	2,405,623		$	2,456,761		$	2,163,860		$	2,081,742
Less: Accumulated other comprehensive income		(139,132	)		(85,711	)		(80,529	)		(379,948	)		(486,222	)
Share-owners' Equity (excluding accumulated other comprehensive   income) *	$	2,432,674		$	2,491,334		$	2,537,290		$	2,543,808		$	2,567,964
Common shares outstanding		70,140,728			70,147,926			70,149,062			69,829,037			69,864,518
Treasury Stock shares		3,111,232			3,104,034			3,102,898			3,422,923			3,387,442
* "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
(Dollars in thousands)
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR				2ND QTR		6 MOS			6 MOS
	2007			2007			2007			2008			2008			2007			2008
CALCULATION OF NET INCOME PER SHARE
Net income	$	65,105		$	72,992		$	60,886		$	35,882		$	38,184		$	155,688		$	74,066
Average shares outstanding-basic		71,074,976			71,074,619			71,076,532			71,080,703			71,116,961			71,046,489			71,098,832
Average shares outstanding-diluted		71,490,467			71,467,009			71,467,783			71,453,824			71,442,599			71,488,786			71,448,211
Net income per share-basic	$	0.92		$	1.03		$	0.85		$	0.50		$	0.54		$	2.19		$	1.04
Net income per share-diluted	$	0.91		$	1.02		$	0.85		$	0.50		$	0.53		$	2.18		$	1.04
Income from continuing operations	$	65,105		$	72,992		$	60,886		$	35,882		$	38,184		$	155,688		$	74,066
EPS (basic)	$	0.92		$	1.03		$	0.85		$	0.50		$	0.54		$	2.19		$	1.04
EPS (diluted)	$	0.91		$	1.02		$	0.85		$	0.50		$	0.53		$	2.18		$	1.04
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
RIGL - Derivatives	$	76,281		$	(37,467	)	$	(28,054	)	$	(1,657	)	$	65,087		$	73,990		$	63,430
Derivative Gains related to Corporate Debt and Investments		(237	)		(132	)		(195	)		(484	)		(1,786	)		(494	)		(2,270	)
Derivative Gains related to Annuities		(1,351	)		(193	)		1,866			6,240			1,850			(1,605	)		8,090
RIGL - All Other Investments, net of participating income		(70,316	)		43,114			18,803			(28,045	)		(112,411	)		(60,172	)		(140,456	)
Related amortization of DAC & VOBA		(830	)		(44	)		(1,160	)		(1,074	)		495			(2,026	)		(579	)
		3,547			5,278			(8,740	)		(25,020	)		(46,765	)		9,693			(71,785	)
Tax effect		(1,242	)		(1,847	)		3,059			8,757			16,368			(3,393	)		25,125
	$	2,305		$	3,431		$	(5,681	)	$	(16,263	)	$	(30,397	)	$	6,300		$	(46,660	)
RIGL - Derivatives per share-diluted	$	0.68		$	(0.34	)	$	(0.24	)	$	0.04		$	0.59		$	0.65		$	0.63
RIGL - All Other Investments per share-diluted	$	(0.65	)	$	0.39		$	0.16		$	(0.27	)	$	(1.02	)	$	(0.56	)	$	(1.28	)
OPERATING INCOME PER SHARE *
Net income per share-diluted	$	0.91		$	1.02		$	0.85		$	0.50		$	0.53		$	2.18		$	1.04
Discontinued operations		-			-			-			-			-			-			-
RIGL - Derivatives per share-diluted		0.68			(0.34	)		(0.24	)		0.04			0.59			0.65			0.63
RIGL - All Other Investments, net of participating income per share-diluted		(0.65	)		0.39			0.16			(0.27	)		(1.02	)		(0.56	)		(1.28	)
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		$	0.97		$	0.93		$	0.73		$	0.96		$	2.09		$	1.69
NET OPERATING INCOME *
Net income	$	65,105		$	72,992		$	60,886		$	35,882		$	38,184		$	155,688		$	74,066
Less: RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities		48,551			(24,565	)		(17,149	)		2,664			42,349			46,729			45,013
Less: RIGL - All Other Investments net of tax, amortization, and participating income		(46,245	)		27,996			11,468			(18,927	)		(72,746	)		(40,429	)		(91,673	)
Net operating income	$	62,799		$	69,561		$	66,567		$	52,145		$	68,581		$	149,388		$	120,726
PRETAX OPERATING INCOME **
Income before income tax and discontinued operations	$	101,441		$	107,417		$	93,902		$	53,589		$	57,479		$	234,769		$	111,068
Less: RIGL - Derivatives		76,281			(37,467	)		(28,054	)		(1,657	)		65,087			73,990			63,430
Less: Derivative gains related to corporate debt, investments & annuities		(1,588	)		(325	)		1,671			5,756			64			(2,099	)		5,820
Less: RIGL - All Other Investments, net of participating income		(70,316	)		43,114			18,803			(28,045	)		(112,411	)		(60,172	)		(140,456	)
Less: Related amortization of DAC & VOBA		(830	)		(44	)		(1,160	)		(1,074	)		495			(2,026	)		(579	)
Pretax operating income	$	97,894		$	102,139		$	102,642		$	78,609		$	104,244		$	225,076		$	182,853
* "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
(Dollars in millions)
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR
	2007			2007			2007			2008			2008
Total Portfolio
Fixed Income	$	21,459.6		$	22,278.8		$	23,389.1		$	23,167.9		$	24,097.7
Mortgage Loans		4,119.3			4,193.8			3,284.3			3,377.4			3,523.1
Real Estate		12.1			9.7			8.0			8.0			7.8
Equities		68.5			73.2			117.0			289.3			357.7
Policy Loans		819.4			817.0			818.3			813.1			805.1
Short Term Investments		810.0			1,105.4			1,236.4			1,121.1			840.0
Other Long Term Investments		186.0			183.6			185.9			193.4			222.8
Total Invested Assets	$	27,474.9		$	28,661.5		$	29,039.0		$	28,970.2		$	29,854.2
Fixed Income
Corporate Bonds	$	10,972.0		$	11,474.8		$	11,778.6		$	11,978.3		$	12,607.8
Residential Mortgage Backed Securities*		8,004.5			8,597.5			7,040.4			6,216.0			6,587.1
Commercial Mortgage Backed Securities*								1,481.3			1,232.7			1,206.3
Asset Backed Securities*								842.2			1,486.1			1,316.5
US Govt Bonds		570.8			260.4			321.8			317.7			313.3
Public Utilities		1,820.3			1,853.8			1,836.1			1,874.1			2,035.1
States, Municipals and Political Subdivisions		91.7			92.0			88.4			62.9			31.5
Preferred Securities		0.1			0.1			0.1			0.1			0.1
Convertibles and Bonds with Warrants		0.2			0.2			0.2			0.0			0.0
Total Fixed Income Portfolio	$	21,459.6		$	22,278.8		$	23,389.1		$	23,167.9		$	24,097.7
Fixed Income - Quality
AAA		42.5	%		42.3	%		43.4	%		42.2	%		40.9	%
AA		8.5	%		9.5	%		8.8	%		8.2	%		7.3	%
A		19.8	%		18.5	%		18.5	%		17.8	%		18.1	%
BBB		26.7	%		26.6	%		25.7	%		27.0	%		28.4	%
BB or Lower		2.5	%		3.1	%		3.6	%		4.8	%		5.3	%
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		65.9	%		66.4	%		64.8	%		64.5	%		64.4	%
Apartments		11.6	%		10.2	%		10.5	%		10.8	%		10.6	%
Office Buildings		12.8	%		13.0	%		13.8	%		13.8	%		13.8	%
Warehouses		7.6	%		8.2	%		8.1	%		8.0	%		8.3	%
Miscellaneous		2.1	%		2.2	%		2.8	%		2.9	%		2.9	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Problem Mortgage Loans
60 Days Past Due	$	-		$	-		$	7.5		$	7.4		$	-
90 Days Past Due		-			21.6			-			-			7.4
Renegotiated Loans		2.1			2.1			-			-			-
Foreclosed Real Estate		-			-			-			-			-
	$	2.1		$	23.7		$	7.5		$	7.4		$	7.4
Trading Portfolio Composition (excl. Modco Trading
Portfolio)
Asset Class
AAA	$	194.4		$	191.1		$	186.6		$	182.3		$	192.4
AA		20.0			31.7			31.4			16.6			17.1
A		56.3			46.1			56.8			62.4			58.1
BBB		132.8			137.8			136.7			153.7			153.9
BB		5.0			5.0			-			-			-
B		-			-			-			-			-
Short term investments		4.2			6.2			15.0			17.6			2.0
Swaps		6.7			3.2			(4.7	)		(13.9	)		(5.7	)
Total	$	419.4		$	421.1		$	421.8		$	418.7		$	417.8
* 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										DRAFT
Life Marketing and Acquisitions - Quarterly Earnings Trends
(Dollars in thousands)
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2007			2007			2007			2008			2008			2007			2008
LIFE MARKETING
REVENUES
Gross Premiums and Policy Fees	$	361,624		$	360,450		$	385,268		$	358,783		$	377,807		$	707,309		$	736,590
Reinsurance Ceded		(239,702	)		(203,285	)		(262,649	)		(207,865	)		(255,739	)		(447,316	)		(463,604	)
Net Premiums and Policy Fees		121,922			157,165			122,619			150,918			122,068			259,993			272,986
Net investment income		82,291			79,437			82,287			84,956			86,989			163,394			171,945
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		30,992			27,514			28,485			25,045			26,010			82,357			51,055
Total Revenues		235,205			264,116			233,391			260,919			235,067			505,744			495,986
BENEFITS & EXPENSES
Benefits and settlement expenses		152,147			182,010			151,577			177,778			161,861			301,476			339,639
Amortization of deferred policy acquisition costs   and value of businesses acquired		25,564			27,807			24,025			26,923			27,234			54,262			54,157
Other operating expenses		19,660			14,325			11,691			9,769			7,845			46,892			17,614
Total Benefits and Expenses		197,371			224,142			187,293			214,470			196,940			402,630			411,410
INCOME BEFORE INCOME TAX	$	37,834		$	39,974		$	46,098		$	46,449		$	38,127		$	103,114		$	84,576
ACQUISITIONS
REVENUES
Gross Premiums and Policy Fees	$	214,465		$	198,381		$	203,370		$	191,492		$	193,516		$	408,946		$	385,008
Reinsurance Ceded		(137,371	)		(122,347	)		(132,582	)		(115,763	)		(125,079	)		(255,612	)		(240,842	)
Net Premiums and Policy Fees		77,094			76,034			70,788			75,729			68,437			153,334			144,166
Net investment income		145,263			143,342			141,374			136,213			134,482			294,249			270,695
RIGL - Derivatives		71,782			(38,782	)		(22,675	)		28,590			46,499			68,079			75,089
RIGL - All Other Investments		(69,216	)		38,431			20,080			(36,318	)		(50,323	)		(61,283	)		(86,641	)
Other income		2,525			2,405			2,284			1,421			1,847			4,773			3,268
Total Revenues		227,448			221,430			211,851			205,635			200,942			459,152			406,577
BENEFITS & EXPENSES
Benefits and settlement expenses		158,284			162,460			151,323			154,420			142,801			320,188			297,221
Amortization of deferred policy acquisition costs   and value of businesses acquired		19,977			18,435			20,273			19,596			19,977			40,531			39,573
Other operating expenses		16,584			10,772			7,478			6,865			6,939			29,957			13,804
Total Benefits and Expenses		194,845			191,667			179,074			180,881			169,717			390,676			350,598
INCOME BEFORE INCOME TAX		32,603			29,763			32,777			24,754			31,225			68,476			55,979
Adjustments to Reconcile to Operating Income:
Less:  RIGL - Derivatives		71,782			(38,782	)		(22,675	)		28,590			46,499			68,079			75,089
Less: RIGL - All Other Investments		(69,216	)		38,341			20,080			(36,318	)		(50,323	)		(61,283	)		(86,641	)
Add back: Related amortization of deferred policy  acquisition costs and value of businesses  acquired		777			261			437			1,094			(535	)		1,383			559
PRETAX OPERATING INCOME	$	30,814		$	30,375		$	35,809		$	33,576		$	34,514		$	63,063		$	68,090

PROTECTIVE LIFE CORPORATION															DRAFT
Life Marketing and Annuities Data
(Dollars in thousands)
(Unaudited)
	2ND QTR		3RD QTR		4TH QTR			1ST QTR			2ND QTR		6 MOS		6 MOS
	2007		2007		2007			2008			2008		2007		2008
LIFE MARKETING
SALES BY PRODUCT
Term	$	43,955	$	36,326	$	31,544		$	27,008		$	26,881	$	77,447	$	53,889
U/L		18,515		24,761		18,290			14,663			12,581		32,712		27,244
VUL		2,181		1,826		1,850			1,604			1,679		4,009		3,283
Total	$	64,651	$	62,913	$	51,684		$	43,275		$	41,141	$	114,168	$	84,416
SALES BY DISTRIBUTION
Brokerage general agents	$	41,210	$	35,919	$	31,250		$	24,396		$	23,545	$	71,089	$	47,941
Independent agents		10,629		11,461		8,843			8,852			9,331		18,957		18,183
Stockbrokers/banks		9,452		9,651		8,760			8,447			7,307		17,945		15,754
Direct Response & BOLI		3,360		5,882		2,831			1,580			958		6,177		2,538
Total	$	64,651	$	62,913	$	51,684		$	43,275		$	41,141	$	114,168	$	84,416
ANNUITIES
SALES
Variable Annuity	$	123,263	$	147,275	$	122,962		$	92,792		$	115,448	$	202,245	$	208,240
Immediate Annuity		61,517		58,292		103,115			225,759			41,731		115,521		267,490
Single Premium Deferred Annuity		114,326		130,293		65,016			81,891			185,468		184,186		267,359
Market Value Adjusted Annuity		121,839		170,122		116,472			208,423			205,866		226,715		414,289
Equity Indexed Annuity		7,872		4,987		3,900			3,175			3,723		15,323		6,898
Total	$	428,817	$	510,969	$	411,465		$	612,040		$	552,236	$	743,990	$	1,164,276
PRETAX OPERATING INCOME
Variable Annuity	$	5,114	$	3,565	$	5,828		$	4,068		$	5,436	$	9,787	$	9,504
Fixed Annuity		1,555		2,871		(1,488	)		(1,579	)		4,051		2,488		2,472
Total	$	6,669	$	6,436	$	4,340		$	2,489		$	9,487	$	12,275	$	11,976
DEPOSIT BALANCE
VA Fixed Annuity	$	214,966	$	234,950	$	214,220		$	190,968		$	201,171
VA Separate Account Annuity		2,725,302		2,750,591		2,706,239			2,501,975			2,464,467
Sub-total		2,940,268		2,985,541		2,920,459			2,692,943			2,665,638
Fixed Annuity		4,164,402		4,468,045		4,682,912			5,114,313			5,443,137
Total	$	7,104,670	$	7,453,586	$	7,603,371		$	7,807,256		$	8,108,775

PROTECTIVE LIFE CORPORATION										DRAFT
Annuities, Stable Value Contracts, and Asset Protection
Quarterly Earnings Trends (Dollars in thousands)
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR				2ND QTR		6 MOS			6 MOS
	2007			2007			2007			2008			2008			2007			2008
ANNUITIES
REVENUES
Gross Premiums and Policy Fees	$	8,633		$	8,481		$	8,787		$	8,191		$	8,449		$	16,895		$	16,640
Reinsurance Ceded		-			-			-			-			-			-			-
Net Premiums and Policy Fees		8,633			8,481			8,787			8,191			8,449			16,895			16,640
Net investment income		64,890			69,313			72,244			77,286			85,007			125,751			162,293
RIGL - Derivatives		1,351			193			(1,866	)		(6,240	)		(1,850	)		1,605			(8,090	)
RIGL - All Other Investments		53			(266	)		557			20			1,095			1,717			1,115
Other income		2,797			2,769			3,006			3,003			3,255			5,510			6,258
Total Revenues		77,724			80,490			82,728			82,260			95,956			151,478			178,216
BENEFITS & EXPENSES
Benefits and settlement expenses		56,101			62,731			65,429			67,416			71,842			112,050			139,258
Amortization of deferred policy acquisition costs    and value of   businesses acquired		9,909			5,022			7,626			5,901			7,239			15,037			13,140
Other operating expenses		5,045			6,350			5,499			6,414			6,333			11,042			12,747
Total Benefits and Expenses		71,055			74,103			78,554			79,731			85,414			138,129			165,145
INCOME BEFORE INCOME TAX		6,669			6,387			4,174			2,529			10,542			13,349			13,071
Adjustments to Reconcile to Operating Income:
Less:  RIGL - Derivatives		1,351			193			(1,866	)		(6,240	)		(1,850	)		1,605			(8,090	)
Add back:  Derivative gains related to equity    indexed annuities		1,351			193			(1,866	)		(6,240	)		(1,850	)		1,605			(8,090	)
Less:  RIGL - All Other Investments		53			(266	)		557			20			1,095			1,717			1,115
Add back:  Related amortization of deferred    policy acquisition costs		53			(217	)		723			(20	)		40			643			20
PRETAX OPERATING INCOME	$	6,669		$	6,436		$	4,340		$	2,489		$	9,487		$	12,275		$	11,976
STABLE VALUE CONTRACTS
REVENUES
Gross Premiums and Policy Fees	$	-		$	-		$	-		$	-		$	-		$	-		$	-
Reinsurance Ceded		-			-			-			-			-			-			-
Net Premiums and Policy Fees		-			-			-			-			-			-			-
Net investment income		71,478			73,501			76,121			78,361			77,747			150,579			156,108
RIGL - Derivatives		(104	)		(148	)		237			220			354			4,166			574
RIGL - All Other Investments		(479	)		(185	)		648			5,213			1,469			(3,324	)		6,682
Other income		-			-			-			-			-			-			-
Total Revenues		70,895			73,168			77,006			83,794			79,570			151,421			163,364
BENEFITS & EXPENSES
Benefits and settlement expenses		57,097			58,340			61,304			59,929			57,485			121,816			117,414
Amortization of deferred policy acquisition costs   and value of businesses acquired		987			985			1,059			1,067			1,095			2,155			2,162
Other operating expenses		1,039			1,069			1,175			1,149			1,622			2,067			2,771
Total Benefits and Expenses		59,123			60,394			63,538			62,145			60,202			126,038			122,347
INCOME BEFORE INCOME TAX		11,772			12,774			13,468			21,649			19,368			25,383			41,017
Adjustments to Reconcile to Operating Income:
Less:  RIGL-Derivatives		(104	)		(148	)		237			220			354			4,166			574
Less:  RIGL-All Other Investments		(479	)		(185	)		648			5,213			1,469			(3,324	)		6,682
PRETAX OPERATING INCOME	$	12,355		$	13,107		$	12,583		$	16,216		$	17,545		$	24,541		$	33,761
ASSET PROTECTION
REVENUES
Gross Premiums and Policy Fees	$	97,985		$	101,189		$	96,518		$	95,335		$	91,110		$	197,405		$	186,445
Reinsurance Ceded		(45,689	)		(43,244	)		(42,808	)		(47,443	)		(42,954	)		(90,827	)		(90,397	)
Net Premiums and Policy Fees		52,296			57,945			53,710			47,892			48,156			106,578			96,048
Net investment income		9,467			10,188			10,233			9,905			9,808			18,679			19,713
Realized investment gains (losses)		-			-			-			-			-			-			-
Other income		20,455			19,330			15,740			15,136			17,379			36,984			32,515
Total Revenues		82,218			87,463			79,683			72,933			75,343			162,241			148,276
BENEFITS & EXPENSES
Benefits and settlement expenses		26,113			30,779			24,105			24,766			27,662			51,928			52,428
Amortization of deferred policy acquisition costs   and value of  businesses acquired		21,464			21,291			18,822			14,332			15,341			42,167			29,673
Other operating expenses		23,119			25,488			26,708			23,983			25,676			46,540			49,659
Total Benefits and Expenses		70,696			77,558			69,635			63,081			68,679			140,635			131,760
INCOME BEFORE INCOME TAX	$	11,522		$	9,905		$	10,048		$	9,852		$	6,664		$	21,606		$	16,516

PROTECTIVE LIFE CORPORATION																			DRAFT
Stable Value Contracts and Asset Protection Data
(Dollars in thousands)
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2007			2007			2007			2008			2008			2007			2008
STABLE VALUE CONTRACTS
SALES
GIC	$	75,000		$	54,500		$	800		$	74,232		$	11,113		$	77,500		$	85,345
GFA - Direct Institutional		0			0			182,179			0			425,000			-			425,000
GFA - Registered - Institutional		50,000			475,000			0			450,000			0			50,000			450,000
GFA - Registered - Retail		10,014			42,735			20,796			113,404			151,725			23,134			265,129
Total	$	135,014		$	572,235		$	203,775		$	637,636		$	587,838		$	150,634		$	1,225,474
DEPOSIT BALANCE
Quarter End Balance	$	4,806,721		$	4,988,787		$	5,046,463		$	5,207,936		$	5,442,022		$	4,806,721		$	5,442,022
Average Daily Balance	$	4,780,565		$	4,826,108		$	4,964,733		$	5,140,310		$	5,139,017		$	5,119,688		$	5,139,290
OPERATING SPREAD		1.04	%		1.09	%		1.02	%		1.26	%		1.34	%		0.98	%		1.30	%
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2007			2007			2007			2008			2008			2007			2008
ASSET PROTECTION
SALES
Credit	$	31,579		$	27,686		$	26,271		$	22,790		$	18,381		$	59,661		$	41,171
Service Contracts		90,588			96,189			79,772			71,663			82,199			165,395			153,862
Other		28,046			20,763			18,347			16,262			19,055			58,232			35,317
Total	$	150,213		$	144,638		$	124,390		$	110,715		$	119,635		$	283,288		$	230,350
Note: The Asset Protection sales amounts relating to Service Contracts and Other lines for 2Q07 thru 3Q07 have been adjusted to provide a consistent presentation with 4Q07 and 2Q08.

PROTECTIVE LIFE CORPORATION																			DRAFT
Corporate & Other Segment - Quarterly Earnings Trends
(Dollars in thousands)
(Unaudited)
	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS			6 MOS
	2007			2007			2007			2008			2008			2007			2008
REVENUES
Gross Premiums and Policy Fees	$	8,458		$	7,999		$	8,399		$	8,603		$	7,991		$	17,627		$	16,594
Reinsurance Ceded		(4	)		(2	)		(5	)		(1	)		(2	)		(8	)		(3	)
Net Premiums and Policy Fees		8,454			7,997			8,394			8,602			7,989			17,619			16,591
Net investment income		37,047			53,011			38,765			21,744			44,908			73,466			66,652
RIGL - Derivatives		3,252			1,270			(3,751	)		(24,227	)		20,084			140			(4,143	)
RIGL - All Other Investments		3,033			5,134			(2,482	)		3,040			(64,652	)		9,575			(61,612	)
Other income		683			(144	)		(276	)		904			(508	)		1,620			396
Total Revenues		52,469			67,268			40,650			10,063			7,821			102,420			17,884
BENEFITS & EXPENSES																��
Benefits and settlement expenses		9,207			8,585			8,330			10,367			8,693			19,276			19,060
Amortization of deferred policy acquisition costs     and value of businesses acquired		135			323			186			551			564			264			1,115
Other operating expenses		42,086			49,746			44,798			50,789			47,011			80,039			97,800
Total Benefits and Expenses		51,428			58,654			53,314			61,707			56,268			99,579			117,975
INCOME BEFORE INCOME TAX		1,041			8,614			(12,664	)		(51,644	)		(48,447	)		2,841			(100,091	)
Adjustments to Reconcile to Operating Income:
Less:  RIGL-Derivatives		3,252			1,270			(3,751	)		(24,227	)		20,084			140			(4,143	)
Less:  RIGL-All Other Investments, net of     participating income		(674	)		5,134			(2,482	)		3,040			(64,652	)		2,718			(61,612	)
Add back:  Derivative gains related to corporate     debt and investments		237			132			195			484			1,786			494			2,270
PRETAX OPERATING INCOME	$	(1,300	)	$	2,342		$	(6,236	)	$	(29,973	)	$	(2,093	)	$	477		$	(32,066	)