Exhibit 99.2
Draft
5/03/2009
Supplemental Schedules
First Quarter 2009
Draft
5/03/2009
Quarterly Financial Highlights
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
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(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
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Pre-tax Operating Income * |
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Life Marketing |
| $ | 46,449 |
| $ | 38,127 |
| $ | 52,222 |
| $ | 51,737 |
| $ | 42,510 |
| $ | 46,449 |
| $ | 42,510 |
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Acquisitions |
| 33,576 |
| 34,514 |
| 33,021 |
| 35,368 |
| 33,621 |
| 33,576 |
| 33,621 |
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Annuities |
| 2,489 |
| 9,487 |
| 556 |
| 6,175 |
| (575 | ) | 2,489 |
| (575 | ) | |||||||
Stable Value Products |
| 16,216 |
| 17,545 |
| 28,184 |
| 27,866 |
| 20,207 |
| 16,216 |
| 20,207 |
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Asset Protection |
| 9,852 |
| 6,664 |
| 8,186 |
| 6,087 |
| 6,280 |
| 9,852 |
| 6,280 |
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Corporate & Other |
| (29,973 | ) | (2,093 | ) | (32,173 | ) | (41,747 | ) | (9,247 | ) | (29,973 | ) | (9,247 | ) | |||||||
Total Pre-tax Operating Income |
| $ | 78,609 |
| $ | 104,244 |
| $ | 89,996 |
| $ | 85,486 |
| $ | 92,796 |
| $ | 78,609 |
| $ | 92,796 |
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Balance Sheet Data |
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Total GAAP Assets |
| $ | 41,749,006 |
| $ | 42,636,077 |
| $ | 41,152,791 |
| $ | 39,572,449 |
| $ | 38,760,243 |
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Shareowners’ Equity |
| $ | 2,163,860 |
| $ | 2,081,742 |
| $ | 1,524,655 |
| $ | 761,095 |
| $ | 783,178 |
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Shareowners’ Equity (excluding accumulated other comprehensive income (loss)) ** |
| $ | 2,543,808 |
| $ | 2,567,964 |
| $ | 2,452,860 |
| $ | 2,428,151 |
| $ | 2,443,382 |
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Stock Data |
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Closing Price |
| $ | 40.56 |
| $ | 38.05 |
| $ | 28.51 |
| $ | 14.35 |
| $ | 5.25 |
| $ | 40.56 |
| $ | 5.25 |
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Average Shares Outstanding |
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Basic |
| 71,080,703 |
| 71,116,961 |
| 71,115,365 |
| 71,122,593 |
| 70,850,571 |
| 71,080,703 |
| 70,850,571 |
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Diluted |
| 71,453,824 |
| 71,442,599 |
| 71,380,898 |
| 71,122,593 |
| 71,392,134 |
| 71,453,824 |
| 71,392,134 |
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* “Pre-tax Operating Income” is a non-GAAP financial measure. “Income (loss) Before Income Tax” is a GAAP financial measure to which “Pre-tax Operating Income” may be compared.
See Page 5 for a reconciliation of “Pre-tax Operating Income” to “Income (loss) Before Income Tax”.
** “Shareowners’ equity excluding accumulated other comprehensive income (loss)” is a non-GAAP financial measure. “Shareowners’ equity” is a GAAP financial measure to which “Shareowners’ equity excluding accumulated other comprehensive income (loss)” may be compared.
See Page 4 for a reconciliation of “Shareowners’ equity excluding accumulated other comprehensive income (loss)” to “Shareowners’ equity”.
1
Draft
5/03/2009
Financial Strength Ratings as of March 31, 2009
Legal Entity |
| A.M. Best |
| Fitch |
| Standard & Poor’s |
| Moody’s |
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Insurance companies: |
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Protective Life Insurance Company |
| A+ |
| A+ |
| AA- |
| A2 |
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West Coast Life Insurance Company |
| A+ |
| A+ |
| AA- |
| A2 |
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Protective Life and Annuity Insurance Company |
| A+ |
| A+ |
| AA- |
| — |
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Lyndon Property Insurance Company |
| A- |
| — |
| — |
| — |
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Credit Ratings as of March 31, 2009
Legal Entity |
| A.M. Best |
| Fitch |
| Standard & Poor’s |
| Moody’s |
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Protective Life Corporation |
| a- |
| A-/BBB+ (1) |
| A- |
| Baa2 |
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Protective Life Insurance Company |
| aa- |
| — |
| AA- |
| — |
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(1) The default rating is A-. The BBB+ rating is related to our senior notes due at 2013, 2014, and 2018.
2
Draft
5/03/2009
GAAP Consolidated Statements of Income (Loss)
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
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(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
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REVENUES |
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Gross Premiums and Policy Fees |
| $ | 662,404 |
| $ | 678,873 |
| $ | 664,464 |
| $ | 686,812 |
| $ | 697,271 |
| $ | 662,404 |
| $ | 697,271 |
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Reinsurance Ceded |
| (371,072 | ) | (423,774 | ) | (366,734 | ) | (421,230 | ) | (355,302 | ) | (371,072 | ) | (355,302 | ) | |||||||
Net Premiums and Policy Fees |
| 291,332 |
| 255,099 |
| 297,730 |
| 265,582 |
| 341,969 |
| 291,332 |
| 341,969 |
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Net investment income |
| 408,465 |
| 438,941 |
| 423,522 |
| 404,236 |
| 421,685 |
| 408,465 |
| 421,685 |
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RIGL - Derivatives |
| (1,657 | ) | 65,087 |
| 91,991 |
| (38,764 | ) | 92,433 |
| (1,657 | ) | 92,433 |
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RIGL - All Other Investments |
| (28,045 | ) | (32,425 | ) | (148,458 | ) | (63,766 | ) | (41,843 | ) | (28,045 | ) | (41,843 | ) | |||||||
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OTTI losses |
| — |
| (79,986 | ) | (202,644 | ) | (29,168 | ) | (117,314 | ) | — |
| (117,314 | ) | |||||||
OTTI losses recognized in OCI (before taxes) |
| — |
| — |
| — |
| — |
| 27,488 |
| — |
| 27,488 |
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Net OTTI losses recognized in earnings |
| — |
| (79,986 | ) | (202,644 | ) | (29,168 | ) | (89,826 | ) | — |
| (89,826 | ) | |||||||
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Other income |
| 45,509 |
| 47,983 |
| 47,943 |
| 47,057 |
| 38,663 |
| 45,509 |
| 38,663 |
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Total Revenues |
| 715,604 |
| 694,699 |
| 510,084 |
| 585,177 |
| 763,081 |
| 715,604 |
| 763,081 |
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BENEFITS & EXPENSES |
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Benefits and settlement expenses |
| 494,676 |
| 470,344 |
| 535,839 |
| 475,682 |
| 545,475 |
| 494,676 |
| 545,475 |
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Amortization of deferred policy acquisition costs and value of businesses acquired |
| 68,370 |
| 71,450 |
| 39,331 |
| 54,591 |
| 113,648 |
| 68,370 |
| 113,648 |
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Other operating expenses |
| 65,068 |
| 60,204 |
| 60,788 |
| 47,120 |
| 46,671 |
| 65,068 |
| 46,671 |
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Interest on indebtedness - subsidiaries |
| 17,233 |
| 18,554 |
| 16,990 |
| 14,698 |
| 7,991 |
| 17,233 |
| 7,991 |
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Interest on indebtedness - holding company - other debt |
| 7,267 |
| 7,267 |
| 7,677 |
| 9,942 |
| 7,740 |
| 7,267 |
| 7,740 |
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Interest on indebtedness - holding company - hybrid securities |
| 9,401 |
| 9,401 |
| 9,401 |
| 9,401 |
| 9,400 |
| 9,401 |
| 9,400 |
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Total Benefits and Expenses |
| 662,015 |
| 637,220 |
| 670,026 |
| 611,434 |
| 730,925 |
| 662,015 |
| 730,925 |
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INCOME (LOSS) BEFORE INCOME TAX |
| 53,589 |
| 57,479 |
| (159,942 | ) | (26,257 | ) | 32,156 |
| 53,589 |
| 32,156 |
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Income tax expense (benefit) |
| 17,707 |
| 19,295 |
| (59,934 | ) | (10,344 | ) | 10,021 |
| 17,707 |
| 10,021 |
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NET INCOME (LOSS) |
| $ | 35,882 |
| $ | 38,184 |
| $ | (100,008 | ) | $ | (15,913 | ) | $ | 22,135 |
| $ | 35,882 |
| $ | 22,135 |
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PER SHARE DATA FOR QUARTER |
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Operating income-diluted * |
| $ | 0.73 |
| $ | 0.96 |
| $ | 0.88 |
| $ | 0.80 |
| $ | 0.86 |
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RIGL - Derivatives net of gains related to corp debt, investments and annuities |
| 0.04 |
| 0.59 |
| 0.91 |
| (0.15 | ) | 0.65 |
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RIGL - All Other Investments, net of participating income |
| (0.27 | ) | (1.02 | ) | (3.19 | ) | (0.87 | ) | (1.20 | ) |
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Net income (loss)-diluted |
| $ | 0.50 |
| $ | 0.53 |
| $ | (1.40 | ) | $ | (0.22 | ) | $ | 0.31 |
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Average shares outstanding-diluted |
| 71,453,824 |
| 71,442,599 |
| 71,380,898 |
| 71,122,593 |
| 71,392,134 |
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Dividends paid |
| $ | 0.225 |
| $ | 0.235 |
| $ | 0.235 |
| $ | 0.12 |
| $ | 0.12 |
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PER SHARE DATA FOR YTD |
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Operating income-diluted * |
| $ | 0.73 |
| $ | 1.69 |
| $ | 2.57 |
| $ | 3.37 |
| $ | 0.86 |
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RIGL - Derivatives net of gains related to corp debt, investments and annuities |
| 0.04 |
| 0.63 |
| 1.54 |
| 1.39 |
| 0.65 |
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RIGL - All Other Investments, net of participating income |
| (0.27 | ) | (1.28 | ) | (4.47 | ) | (5.35 | ) | (1.20 | ) |
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Net income (loss)-diluted |
| $ | 0.50 |
| $ | 1.04 |
| $ | (0.36 | ) | $ | (0.59 | ) | $ | 0.31 |
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Average shares outstanding-diluted |
| 71,453,824 |
| 71,448,211 |
| 71,425,610 |
| 71,108,961 |
| 71,392,134 |
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Dividends paid |
| $ | 0.225 |
| $ | 0.460 |
| $ | 0.695 |
| $ | 0.815 |
| $ | 0.12 |
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* “Operating Income” is a non-GAAP financial measure. “Net Income (loss)” is a GAAP financial measure to which “Operating Income” may be compared.
3
Draft
5/03/2009
GAAP Consolidated Balance Sheets
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
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(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
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ASSETS |
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Fixed maturities |
| $ | 23,167,901 |
| $ | 24,097,693 |
| $ | 22,084,909 |
| $ | 20,098,980 |
| $ | 19,571,798 |
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Equity securities |
| 289,307 |
| 357,672 |
| 312,389 |
| 302,132 |
| 268,211 |
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Mortgage loans |
| 3,377,397 |
| 3,523,121 |
| 3,653,919 |
| 3,848,288 |
| 3,858,573 |
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Investment real estate |
| 7,975 |
| 7,834 |
| 7,793 |
| 14,810 |
| 14,769 |
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Policy loans |
| 813,107 |
| 805,105 |
| 811,846 |
| 810,933 |
| 800,617 |
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Other long-term investments |
| 193,364 |
| 222,770 |
| 329,259 |
| 432,137 |
| 451,847 |
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Long-term investments |
| 27,849,051 |
| 29,014,195 |
| 27,200,115 |
| 25,507,280 |
| 24,965,815 |
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Short-term investments |
| 1,121,138 |
| 839,973 |
| 987,604 |
| 1,059,506 |
| 845,558 |
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Total investments |
| 28,970,189 |
| 29,854,168 |
| 28,187,719 |
| 26,566,786 |
| 25,811,373 |
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Cash |
| 117,933 |
| 107,367 |
| 86,587 |
| 149,358 |
| 180,648 |
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Accrued investment income |
| 281,396 |
| 294,908 |
| 308,144 |
| 287,543 |
| 286,363 |
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Accounts and premiums receivable |
| 118,533 |
| 139,123 |
| 163,258 |
| 55,017 |
| 59,867 |
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Reinsurance receivable |
| 5,287,241 |
| 5,203,089 |
| 5,227,020 |
| 5,254,788 |
| 5,273,817 |
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Deferred policy acquisition costs and value of businesses acquired |
| 3,499,271 |
| 3,629,243 |
| 3,965,955 |
| 4,200,321 |
| 4,243,218 |
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Goodwill |
| 116,481 |
| 116,307 |
| 122,128 |
| 120,954 |
| 120,179 |
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Property and equipment, net |
| 42,027 |
| 40,924 |
| 40,274 |
| 39,707 |
| 37,795 |
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Other assets |
| 156,486 |
| 163,752 |
| 172,759 |
| 174,035 |
| 174,777 |
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Current/Deferred income tax |
| 148,342 |
| 120,248 |
| 154,454 |
| 453,526 |
| 440,110 |
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Assets related to separate accounts |
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Variable annuity |
| 2,686,752 |
| 2,641,203 |
| 2,426,806 |
| 2,027,470 |
| 1,907,272 |
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Variable universal life |
| 324,355 |
| 325,745 |
| 297,687 |
| 242,944 |
| 224,824 |
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TOTAL ASSETS |
| $ | 41,749,006 |
| $ | 42,636,077 |
| $ | 41,152,791 |
| $ | 39,572,449 |
| $ | 38,760,243 |
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4
Draft
5/03/2009
GAAP Consolidated Balance Sheets - Continued
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
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(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
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LIABILITIES |
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Policy liabilities and accruals |
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Future policy benefits and claims |
| $ | 16,728,276 |
| $ | 16,772,722 |
| $ | 16,882,724 |
| $ | 17,008,524 |
| $ | 17,118,094 |
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Unearned premiums |
| 1,188,886 |
| 1,222,142 |
| 1,248,942 |
| 1,251,855 |
| 1,230,108 |
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Stable value product deposits |
| 5,207,936 |
| 5,442,022 |
| 6,021,834 |
| 4,960,405 |
| 4,360,658 |
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Annuity deposits |
| 8,726,137 |
| 8,886,520 |
| 8,976,496 |
| 9,357,427 |
| 9,316,791 |
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Other policyholders’ funds |
| 350,779 |
| 405,653 |
| 424,185 |
| 421,313 |
| 443,173 |
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Securities sold under repurchase agreements |
| — |
| 360,000 |
| — |
| — |
| — |
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Other liabilities |
| 1,116,630 |
| 1,306,493 |
| 741,120 |
| 926,821 |
| 719,550 |
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Accrued income taxes |
| — |
| — |
| — |
| — |
| — |
| |||||
Deferred income taxes |
| 361,038 |
| 317,531 |
| 58,747 |
| — |
| — |
| |||||
Non-recourse funding obligations |
| 1,375,000 |
| 1,375,000 |
| 1,375,000 |
| 1,375,000 |
| 1,375,000 |
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Debt |
| 579,852 |
| 559,852 |
| 649,852 |
| 714,852 |
| 756,852 |
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Liabilities related to variable interest entities |
| 400,000 |
| 400,000 |
| — |
| — |
| — |
| |||||
Subordinated Debt Securities |
| 524,743 |
| 524,743 |
| 524,743 |
| 524,743 |
| 524,743 |
| |||||
Minority interest - subsidiaries |
| 14,762 |
| 14,709 |
| — |
| — |
| — |
| |||||
Liabilities related to separate accounts |
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Variable annuity |
| 2,686,752 |
| 2,641,203 |
| 2,426,806 |
| 2,027,470 |
| 1,907,272 |
| |||||
Variable universal life |
| 324,355 |
| 325,745 |
| 297,687 |
| 242,944 |
| 224,824 |
| |||||
TOTAL LIABILITIES |
| 39,585,146 |
| 40,554,335 |
| 39,628,136 |
| 38,811,354 |
| 37,977,065 |
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SHAREOWNERS’ EQUITY |
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Common stock |
| 36,626 |
| 36,626 |
| 36,626 |
| 36,626 |
| 36,626 |
| |||||
Additional paid-in-capital |
| 446,191 |
| 447,914 |
| 448,887 |
| 448,481 |
| 449,009 |
| |||||
Treasury stock |
| (27,998 | ) | (27,334 | ) | (26,978 | ) | (26,978 | ) | (26,490 | ) | |||||
Cumulative Effect Adjustments |
| 3,616 |
| 3,616 |
| 3,616 |
| 3,616 |
| 3,616 |
| |||||
Unallocated ESOP shares |
| (474 | ) | (474 | ) | (474 | ) | (474 | ) | — |
| |||||
Retained earnings |
| 2,085,847 |
| 2,107,616 |
| 1,991,183 |
| 1,966,880 |
| 1,980,621 |
| |||||
Accumulated other comprehensive income (loss) |
| (379,948 | ) | (486,222 | ) | (928,205 | ) | (1,667,056 | ) | (1,660,204 | ) | |||||
TOTAL SHAREOWNERS’ EQUITY |
| 2,163,860 |
| 2,081,742 |
| 1,524,655 |
| 761,095 |
| 783,178 |
| |||||
TOTAL LIABILITIES AND SHAREOWNERS’ EQUITY |
| $ | 41,749,006 |
| $ | 42,636,077 |
| $ | 41,152,791 |
| $ | 39,572,449 |
| $ | 38,760,243 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
SHAREOWNERS’ EQUITY PER SHARE |
|
|
|
|
|
|
|
|
|
|
| |||||
Total Shareowners’ Equity |
| $ | 30.99 |
| $ | 29.80 |
| $ | 21.81 |
| $ | 10.89 |
| $ | 11.19 |
|
Less: Accumulated other comprehensive income (loss) |
| (5.44 | ) | (6.96 | ) | (13.28 | ) | (23.85 | ) | (23.72 | ) | |||||
Excluding accumulated other comprehensive income (loss)* |
| $ | 36.43 |
| $ | 36.76 |
| $ | 35.09 |
| $ | 34.74 |
| $ | 34.91 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Shareowners’ Equity |
| $ | 2,163,860 |
| $ | 2,081,742 |
| $ | 1,524,655 |
| $ | 761,095 |
| $ | 783,178 |
|
Less: Accumulated other comprehensive income (loss) |
| (379,948 | ) | (486,222 | ) | (928,205 | ) | (1,667,056 | ) | (1,660,204 | ) | |||||
Shareowners’ Equity (excluding accumulated other comprehensive income (loss)) * |
| $ | 2,543,808 |
| $ | 2,567,964 |
| $ | 2,452,860 |
| $ | 2,428,151 |
| $ | 2,443,382 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common shares outstanding |
| 69,829,037 |
| 69,864,518 |
| 69,903,431 |
| 69,905,807 |
| 69,986,429 |
| |||||
Treasury Stock shares |
| 3,422,923 |
| 3,387,442 |
| 3,348,529 |
| 3,346,153 |
| 3,265,531 |
|
* “Shareowners’ equity excluding accumulated other comprehensive income (loss)” is a non-GAAP financial measure. “Shareowners’ equity” is a GAAP financial measure to which “Shareowners’ equity excluding accumulated other comprehensive income (loss)” may be compared.
5
Draft
5/03/2009
Calculation of Operating Earnings (Loss) Per Share
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
CALCULATION OF NET INCOME (LOSS) PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income (loss) |
| $ | 35,882 |
| $ | 38,184 |
| $ | (100,008 | ) | $ | (15,913 | ) | $ | 22,135 |
| $ | 35,882 |
| $ | 22,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Average shares outstanding-basic |
| 71,080,703 |
| 71,116,961 |
| 71,115,365 |
| 71,122,593 |
| 70,850,571 |
| 71,080,703 |
| 70,850,571 |
| |||||||
Average shares outstanding-diluted |
| 71,453,824 |
| 71,442,599 |
| 71,380,898 |
| 71,122,593 |
| 71,392,134 |
| 71,453,824 |
| 71,392,134 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income (loss) per share-basic |
| $ | 0.50 |
| $ | 0.54 |
| $ | (1.41 | ) | $ | (0.22 | ) | $ | 0.31 |
| $ | 0.50 |
| $ | 0.31 |
|
Net income (loss) per share-diluted |
| $ | 0.50 |
| $ | 0.53 |
| $ | (1.40 | ) | $ | (0.22 | ) | $ | 0.31 |
| $ | 0.50 |
| $ | 0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income (loss) from continuing operations |
| $ | 35,882 |
| $ | 38,184 |
| $ | (100,008 | ) | $ | (15,913 | ) | $ | 22,135 |
| $ | 35,882 |
| $ | 22,135 |
|
EPS (basic) |
| $ | 0.50 |
| $ | 0.54 |
| $ | (1.41 | ) | $ | (0.22 | ) | $ | 0.31 |
| $ | 0.50 |
| $ | 0.31 |
|
EPS (diluted) |
| $ | 0.50 |
| $ | 0.53 |
| $ | (1.40 | ) | $ | (0.22 | ) | $ | 0.31 |
| $ | 0.50 |
| $ | 0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
RIGL - Derivatives |
| $ | (1,657 | ) | $ | 65,087 |
| $ | 91,991 |
| $ | (38,764 | ) | $ | 92,433 |
| $ | (1,657 | ) | $ | 92,433 |
|
Derivative Gains related to Corporate Debt and Investments |
| (484 | ) | (1,786 | ) | (1,915 | ) | (1,569 | ) | (2,238 | ) | (484 | ) | (2,238 | ) | |||||||
Derivative Gains related to Annuities |
| 6,240 |
| 1,850 |
| 10,385 |
| 22,496 |
| (19,088 | ) | 6,240 |
| (19,088 | ) | |||||||
RIGL - All Other Investments, net of participating income |
| (28,045 | ) | (112,411 | ) | (351,102 | ) | (92,934 | ) | (131,669 | ) | (28,045 | ) | (131,669 | ) | |||||||
Related amortization of DAC & VOBA |
| (1,074 | ) | 495 |
| 703 |
| (972 | ) | (78 | ) | (1,074 | ) | (78 | ) | |||||||
|
| (25,020 | ) | (46,765 | ) | (249,938 | ) | (111,743 | ) | (60,640 | ) | (25,020 | ) | (60,640 | ) | |||||||
Tax effect |
| 8,757 |
| 16,368 |
| 87,478 |
| 39,110 |
| 21,224 |
| 8,757 |
| 21,224 |
| |||||||
|
| $ | (16,263 | ) | $ | (30,397 | ) | $ | (162,460 | ) | $ | (72,633 | ) | $ | (39,416 | ) | $ | (16,263 | ) | $ | (39,416 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
RIGL - Derivatives per share-diluted |
| $ | 0.04 |
| $ | 0.59 |
| $ | 0.91 |
| $ | (0.15 | ) | $ | 0.65 |
| $ | 0.04 |
| $ | 0.65 |
|
RIGL - All Other Investments per share-diluted |
| $ | (0.27 | ) | $ | (1.02 | ) | $ | (3.19 | ) | $ | (0.87 | ) | $ | (1.20 | ) | $ | (0.27 | ) | $ | (1.20 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
OPERATING INCOME PER SHARE * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income (loss) per share-diluted |
| $ | 0.50 |
| $ | 0.53 |
| $ | (1.40 | ) | $ | (0.22 | ) | $ | 0.31 |
| $ | 0.50 |
| $ | 0.31 |
|
RIGL - Derivatives per share-diluted |
| 0.04 |
| 0.59 |
| 0.91 |
| (0.15 | ) | 0.65 |
| 0.04 |
| 0.65 |
| |||||||
RIGL - All Other Investments, net of participating income per share-diluted |
| (0.27 | ) | (1.02 | ) | (3.19 | ) | (0.87 | ) | (1.20 | ) | (0.27 | ) | (1.20 | ) | |||||||
Operating income per share-diluted |
| $ | 0.73 |
| $ | 0.96 |
| $ | 0.88 |
| $ | 0.80 |
| $ | 0.86 |
| $ | 0.73 |
| $ | 0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
NET OPERATING INCOME * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income (loss) |
| $ | 35,882 |
| $ | 38,184 |
| $ | (100,008 | ) | $ | (15,913 | ) | $ | 22,135 |
| $ | 35,882 |
| $ | 22,135 |
|
Less: RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities |
| 2,664 |
| 42,349 |
| 65,299 |
| (11,594 | ) | 46,220 |
| 2,664 |
| 46,220 |
| |||||||
Less: RIGL - All Other Investments net of tax, amortization, and participating income |
| (18,927 | ) | (72,746 | ) | (227,759 | ) | (61,039 | ) | (85,636 | ) | (18,927 | ) | (85,636 | ) | |||||||
Net operating income |
| $ | 52,145 |
| $ | 68,581 |
| $ | 62,452 |
| $ | 56,720 |
| $ | 61,551 |
| $ | 52,145 |
| $ | 61,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
PRE-TAX OPERATING INCOME ** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income (loss) before income tax and discontinued operations |
| $ | 53,589 |
| $ | 57,479 |
| $ | (159,942 | ) | $ | (26,257 | ) | $ | 32,156 |
| $ | 53,589 |
| $ | 32,156 |
|
Less: RIGL - Derivatives |
| (1,657 | ) | 65,087 |
| 91,991 |
| (38,764 | ) | 92,433 |
| (1,657 | ) | 92,433 |
| |||||||
Less: Derivative gains related to corporate debt, investments & annuities |
| 5,756 |
| 64 |
| 8,470 |
| 20,927 |
| (21,326 | ) | 5,756 |
| (21,326 | ) | |||||||
Less: RIGL - All Other Investments, net of participating income |
| (28,045 | ) | (112,411 | ) | (351,102 | ) | (92,934 | ) | (131,669 | ) | (28,045 | ) | (131,669 | ) | |||||||
Less: Related amortization of DAC & VOBA |
| (1,074 | ) | 495 |
| 703 |
| (972 | ) | (78 | ) | (1,074 | ) | (78 | ) | |||||||
Pre-tax operating income |
| $ | 78,609 |
| $ | 104,244 |
| $ | 89,996 |
| $ | 85,486 |
| $ | 92,796 |
| $ | 78,609 |
| $ | 92,796 |
|
* “Net Operating Income” and “Operating Income Per Share” are non-GAAP financial measures. “Net Income (Loss)” and “Net Income (Loss) Per Share” are GAAP financial measures to which “Net Operating Income” and “Operating Income Per Share” may be compared.
** “Pre-tax Operating Income” is a non-GAAP financial measure. “Income (Loss) Before Income Tax” is a GAAP financial measure to which “Pre-tax Operating Income” may be compared.
6
Draft
5/03/2009
Invested Asset Summary
(Dollars In Millions) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| |||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Portfolio |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed Income |
| $ | 23,167.9 |
| $ | 24,097.7 |
| $ | 22,084.9 |
| $ | 20,099.0 |
| $ | 19,571.8 |
|
Mortgage Loans |
| 3,377.4 |
| 3,523.1 |
| 3,653.9 |
| 3,848.3 |
| 3,858.6 |
| |||||
Real Estate |
| 8.0 |
| 7.8 |
| 7.8 |
| 14.8 |
| 14.8 |
| |||||
Equities |
| 289.3 |
| 357.7 |
| 312.4 |
| 302.1 |
| 268.2 |
| |||||
Policy Loans |
| 813.1 |
| 805.1 |
| 811.8 |
| 810.9 |
| 800.6 |
| |||||
Short-Term Investments |
| 1,121.1 |
| 840.0 |
| 987.6 |
| 1,059.5 |
| 845.6 |
| |||||
Other Long-Term Investments |
| 193.4 |
| 222.8 |
| 329.3 |
| 432.1 |
| 451.8 |
| |||||
Total Invested Assets |
| $ | 28,970.2 |
| $ | 29,854.2 |
| $ | 28,187.7 |
| $ | 26,566.7 |
| $ | 25,811.4 |
|
7
Draft
5/03/2009
Invested Asset Summary - Fixed Income
(Dollars In Millions) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| |||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed Income |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Corporate Bonds |
| $ | 13,852.4 |
| $ | 14,642.9 |
| $ | 13,552.4 |
| $ | 12,306.3 |
| $ | 12,042.8 |
|
Residential Mortgage-Backed Securities |
| 6,216.0 |
| 6,587.1 |
| 5,652.5 |
| 4,960.2 |
| 4,731.9 |
| |||||
Commercial Mortgage-Backed Securities |
| 1,232.7 |
| 1,206.3 |
| 1,249.5 |
| 1,184.9 |
| 1,164.2 |
| |||||
Asset-Backed Securities |
| 1,486.1 |
| 1,316.5 |
| 1,209.0 |
| 1,132.7 |
| 1,175.2 |
| |||||
US Govt Bonds |
| 317.7 |
| 313.3 |
| 390.2 |
| 484.9 |
| 427.5 |
| |||||
States, Municipals and Political Subdivisions |
| 62.9 |
| 31.5 |
| 31.3 |
| 30.0 |
| 30.2 |
| |||||
Preferred Securities |
| 0.1 |
| 0.1 |
| — |
| — |
| — |
| |||||
Convertibles and Bonds with Warrants |
| — |
| — |
| — |
| — |
| — |
| |||||
Total Fixed Income Portfolio |
| $ | 23,167.9 |
| $ | 24,097.7 |
| $ | 22,084.9 |
| $ | 20,099.0 |
| $ | 19,571.8 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed Income - Quality |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
AAA |
| 42.2 | % | 40.9 | % | 38.6 | % | 35.2 | % | 33.7 | % | |||||
AA |
| 8.2 | % | 7.3 | % | 7.1 | % | 6.6 | % | 6.1 | % | |||||
A |
| 17.8 | % | 18.1 | % | 18.8 | % | 19.8 | % | 19.0 | % | |||||
BBB |
| 27.0 | % | 28.4 | % | 30.3 | % | 33.0 | % | 33.6 | % | |||||
Below investment grade |
| 4.8 | % | 5.3 | % | 5.2 | % | 5.4 | % | 7.6 | % | |||||
|
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Note: Prior quarter public utilities securities have been reclassed to Corporate Bonds
8
Draft
5/03/2009
Invested Asset Summary - Mortgages
(Dollars In Millions) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| |||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Mortgage Loans - Type |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Retail |
| 64.5 | % | 64.4 | % | 64.9 | % | 65.2 | % | 64.8 | % | |||||
Apartments |
| 10.8 | % | 10.6 | % | 10.4 | % | 10.1 | % | 10.7 | % | |||||
Office Buildings |
| 13.8 | % | 13.8 | % | 14.0 | % | 14.3 | % | 14.4 | % | |||||
Warehouses |
| 8.0 | % | 8.3 | % | 8.1 | % | 7.9 | % | 7.7 | % | |||||
Miscellaneous |
| 2.9 | % | 2.9 | % | 2.6 | % | 2.5 | % | 2.4 | % | |||||
|
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Problem Mortgage Loans |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
60 Days Past Due |
| $ | 7.4 |
| $ | — |
| $ | 7.8 |
| $ | — |
| $ | 0.7 |
|
90 Days Past Due |
| — |
| 7.4 |
| 7.4 |
| 7.4 |
| 10.7 |
| |||||
Renegotiated Loans |
| — |
| — |
| — |
| — |
| — |
| |||||
Foreclosed Real Estate |
| — |
| — |
| — |
| 7.8 |
| — |
| |||||
|
| $ | 7.4 |
| $ | 7.4 |
| $ | 15.2 |
| $ | 15.2 |
| $ | 11.4 |
|
9
Draft
5/03/2009
Invested Asset Summary - Trading Portfolios
(Dollars In Millions) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| |||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Trading Portfolio Composition (excl. Modco Trading Portfolio) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Asset Class |
|
|
|
|
|
|
|
|
|
|
| |||||
AAA |
| $ | 182.3 |
| $ | 192.4 |
| $ | 183.4 |
| $ | 148.6 |
| $ | 138.7 |
|
AA |
| 16.6 |
| 17.1 |
| 19.2 |
| — |
| 3.6 |
| |||||
A |
| 62.4 |
| 58.1 |
| 81.9 |
| 55.3 |
| 48.6 |
| |||||
BBB |
| 153.7 |
| 153.9 |
| 103.0 |
| 137.5 |
| 134.5 |
| |||||
Below investment grade |
| — |
| — |
| — |
| — |
| 5.8 |
| |||||
Short-term investments |
| 17.6 |
| 2.0 |
| — |
| — |
| — |
| |||||
Swaps |
| (13.9 | ) | (5.7 | ) | — |
| — |
| — |
| |||||
Total |
| $ | 418.7 |
| $ | 417.8 |
| $ | 387.5 |
| $ | 341.4 |
| $ | 331.2 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Modco Trading Portfolio |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Asset Class |
|
|
|
|
|
|
|
|
|
|
| |||||
AAA |
| $ | 1,527.2 |
| $ | 1,477.5 |
| $ | 1,330.5 |
| $ | 1,357.1 |
| $ | 1,079.0 |
|
AA |
| 263.8 |
| 249.6 |
| 200.2 |
| 147.3 |
| 134.1 |
| |||||
A |
| 754.0 |
| 713.3 |
| 654.9 |
| 591.5 |
| 563.6 |
| |||||
BBB |
| 806.5 |
| 837.3 |
| 792.5 |
| 743.5 |
| 837.2 |
| |||||
Below investment grade |
| 29.9 |
| 46.7 |
| 53.2 |
| 55.6 |
| 112.1 |
| |||||
Total |
| $ | 3,381.4 |
| $ | 3,324.4 |
| $ | 3,031.3 |
| $ | 2,895.0 |
| $ | 2,726.0 |
|
10
Draft
5/03/2009
Invested Asset Summary - MBS - Alt-A
Mortgage-backed Securities Collateralized by Alt-A Mortgage Loans as of March 31, 2009:
(Dollars In Millions) |
| 2005 and |
|
|
|
|
|
|
|
|
|
|
| ||||||
(Unaudited) |
| Prior |
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Fair Value of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | 26.7 |
| $ | 70.6 |
| $ | 70.6 |
| $ | — |
| $ | — |
| $ | 167.9 |
|
AA |
| — |
| — |
| — |
| — |
| — |
| — |
| ||||||
A |
| 10.8 |
| — |
| — |
| — |
| — |
| 10.8 |
| ||||||
BBB |
| 34.6 |
| — |
| — |
| — |
| — |
| 34.6 |
| ||||||
Below investment grade |
| 5.7 |
| 162.5 |
| 114.9 |
| — |
| — |
| 283.1 |
| ||||||
Total mortgage-backed securities collateralized by Alt-A mortgage loans |
| $ | 77.8 |
| $ | 233.1 |
| $ | 185.5 |
| $ | — |
| $ | — |
| $ | 496.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | (4.4 | ) | $ | (11.0 | ) | $ | (11.0 | ) | $ | — |
| $ | — |
| $ | (26.4 | ) |
AA |
| — |
|
|
|
|
|
|
| — |
| — |
| ||||||
A |
| (3.5 | ) | — |
| — |
| — |
| — |
| (3.5 | ) | ||||||
BBB |
| (7.3 | ) | — |
| — |
| — |
| — |
| (7.3 | ) | ||||||
Below investment grade |
| (4.4 | ) | (88.1 | ) | (59.4 | ) | — |
| — |
| (151.9 | ) | ||||||
Total mortgage-backed securities collateralized by Alt-A mortgage loans |
| $ | (19.6 | ) | $ | (99.1 | ) | $ | (70.4 | ) | $ | — |
| $ | — |
| $ | (189.1 | ) |
11
Draft
5/03/2009
Invested Asset Summary - MBS - Subprime
Mortgage-backed Securities Collateralized by Subprime Loans as of March 31, 2009:
(Dollars In Millions) |
| 2005 and |
|
|
|
|
|
|
|
|
|
|
| ||||||
(Unaudited) |
| Prior |
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Fair Value of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | 3.4 |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | 3.4 |
|
AA |
| 0.9 |
| 1.5 |
| 3.3 |
| — |
| — |
| 5.7 |
| ||||||
A |
| — |
| 6.1 |
| — |
| — |
| — |
| 6.1 |
| ||||||
BBB |
| 0.1 |
| 5.2 |
| 3.0 |
| — |
| — |
| 8.3 |
| ||||||
Below investment grade |
| 1.2 |
| 8.8 |
| 6.4 |
| — |
| — |
| 16.4 |
| ||||||
Total mortgage-backed securities collateralized by sub-prime mortgage loans |
| $ | 5.6 |
| $ | 21.6 |
| $ | 12.7 |
| $ | — |
| $ | — |
| $ | 39.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | (1.1 | ) | $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | (1.1 | ) |
AA |
| (0.7 | ) | (0.4 | ) | (6.8 | ) | — |
| — |
| (7.9 | ) | ||||||
A |
| — |
| (1.2 | ) | — |
| — |
| — |
| (1.2 | ) | ||||||
BBB |
| (0.1 | ) | (2.0 | ) | (8.0 | ) | — |
| — |
| (10.1 | ) | ||||||
Below investment grade |
| (1.4 | ) | (5.3 | ) | (7.0 | ) | — |
| — |
| (13.7 | ) | ||||||
Total mortgage-backed securities collateralized by sub-prime mortgage loans |
| $ | (3.3 | ) | $ | (8.9 | ) | $ | (21.8 | ) | $ | — |
| $ | — |
| $ | (34.0 | ) |
12
Draft
5/03/2009
Invested Asset Summary - MBS - Prime
Mortgage-backed Securities Collateralized by Prime Loans as of March 31, 2009:
(Dollars In Millions) |
| 2005 and |
|
|
|
|
|
|
|
|
|
|
| ||||||
(Unaudited) |
| Prior |
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Fair Value of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | 2,673.8 |
| $ | 594.8 |
| $ | 213.6 |
| $ | 3.8 |
| $ | — |
| $ | 3,486.0 |
|
AA |
| 5.8 |
| 68.0 |
| — |
| — |
| — |
| 73.8 |
| ||||||
A |
| 1.6 |
| 120.8 |
| 6.7 |
| — |
| — |
| 129.1 |
| ||||||
BBB |
| 1.4 |
| 178.8 |
| 77.2 |
| — |
| — |
| 257.4 |
| ||||||
Below investment grade |
| 19.4 |
| 140.6 |
| 89.3 |
| — |
| — |
| 249.3 |
| ||||||
Total mortgage-backed securities collateralized by prime loans |
| $ | 2,702.0 |
| $ | 1,103.0 |
| $ | 386.8 |
| $ | 3.8 |
| $ | — |
| $ | 4,195.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | (144.6 | ) | $ | (75.7 | ) | $ | (40.6 | ) | $ | 0.2 |
| $ | — |
| $ | (260.7 | ) |
AA |
| (11.8 | ) | (28.5 | ) | — |
| — |
| — |
| (40.3 | ) | ||||||
A |
| (0.3 | ) | (29.1 | ) | (1.7 | ) | — |
| — |
| (31.1 | ) | ||||||
BBB |
| 0.2 |
| (39.8 | ) | (25.9 | ) | — |
| — |
| (65.5 | ) | ||||||
Below investment grade |
| (3.1 | ) | (34.8 | ) | (41.7 | ) | — |
| — |
| (79.6 | ) | ||||||
Total mortgage-backed securities collateralized by prime loans |
| $ | (159.6 | ) | $ | (207.9 | ) | $ | (109.9 | ) | $ | 0.2 |
| $ | — |
| $ | (477.2 | ) |
13
Draft
5/03/2009
Invested Asset Summary - External CMBS
External Commercial Mortgage-backed Securities as of March 31, 2009:
(Dollars In Millions) |
| 2005 and |
|
|
|
|
|
|
|
|
|
|
| ||||||
(Unaudited) |
| Prior |
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Fair Value of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | 258.6 |
| $ | 12.1 |
| $ | — |
| $ | 37.0 |
| $ | — |
| $ | 307.7 |
|
BBB |
| 4.8 |
| — |
| — |
| — |
| — |
| 4.8 |
| ||||||
Total external commercial mortgage-backed securities |
| $ | 263.4 |
| $ | 12.1 |
| $ | — |
| $ | 37.0 |
| $ | — |
| $ | 312.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | (4.8 | ) | $ | (1.6 | ) | $ | — |
| $ | (7.2 | ) | $ | — |
| $ | (13.6 | ) |
BBB |
| (2.2 | ) | — |
| — |
| — |
| — |
| (2.2 | ) | ||||||
Total external commercial mortgage-backed securities |
| $ | (7.0 | ) | $ | (1.6 | ) | $ | — |
| $ | (7.2 | ) | $ | — |
| $ | (15.8 | ) |
14
Draft
5/03/2009
Invested Asset Summary - ABS*
Asset-backed Securities* as of March 31, 2009:
(Dollars In Millions) |
| 2005 and |
|
|
|
|
|
|
|
|
|
|
| ||||||
(Unaudited) |
| Prior |
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Fair Value of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | 634.4 |
| $ | 40.8 |
| $ | 373.1 |
| $ | 47.7 |
| $ | — |
| $ | 1,096.0 |
|
AA |
| 6.6 |
| — |
| — |
| — |
| — |
| 6.6 |
| ||||||
A |
| 1.8 |
| — |
| — |
| — |
| — |
| 1.8 |
| ||||||
BBB |
| 3.1 |
| 5.8 |
| 24.3 |
| — |
| — |
| 33.2 |
| ||||||
Below investment grade |
| — |
| 25.8 |
| 11.8 |
| — |
| — |
| 37.6 |
| ||||||
Total asset-backed securities |
| $ | 645.9 |
| $ | 72.4 |
| $ | 409.2 |
| $ | 47.7 |
| $ | — |
| $ | 1,175.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AAA |
| $ | (29.2 | ) | $ | (1.9 | ) | $ | (36.5 | ) | $ | (2.3 | ) | $ | — |
| $ | (69.9 | ) |
AA |
| (0.7 | ) | — |
| — |
| — |
| — |
| (0.7 | ) | ||||||
A |
| (0.2 | ) | — |
| — |
| — |
| — |
| (0.2 | ) | ||||||
BBB |
| (1.2 | ) | (2.0 | ) | (2.8 | ) | — |
| — |
| (6.0 | ) | ||||||
Below investment grade |
| — |
| (37.2 | ) | (3.6 | ) | — |
| — |
| (40.8 | ) | ||||||
Total asset-backed securities |
| $ | (31.3 | ) | $ | (41.1 | ) | $ | (42.9 | ) | $ | (2.3 | ) | $ | — |
| $ | (117.6 | ) |
* Excludes Residential and Commercial mortgage-backed securities
15
Draft
5/03/02009
Invested Asset Summary - Other
(Dollars In Millions) |
| GAAP |
| Market |
| Unrealized |
| |||
Hybrid / Preferred Securities |
|
|
|
|
|
|
| |||
Domestic Exposure |
|
|
|
|
|
|
| |||
Upper Tier 2 |
| $ | — |
| $ | — |
| $ | — |
|
Tier 1 |
| 987.6 |
| 491.2 |
| (496.4 | ) | |||
Preferred Stock |
| 178.7 |
| 122.2 |
| (56.5 | ) | |||
Total Domestic Exposure |
| $ | 1,166.3 |
| $ | 613.4 |
| $ | (552.9 | ) |
|
|
|
|
|
|
|
| |||
European Exposure |
|
|
|
|
|
|
| |||
Upper Tier 2 |
| $ | 8.3 |
| $ | 4.9 |
| $ | (3.4 | ) |
Tier 1 |
| 282.3 |
| 88.2 |
| (194.1 | ) | |||
Preferred Stock |
| 64.5 |
| 43.0 |
| (21.5 | ) | |||
Total European Exposure |
| $ | 355.1 |
| $ | 136.1 |
| $ | (219.0 | ) |
|
|
|
|
|
|
|
| |||
Other Foreign Exposure |
|
|
|
|
|
|
| |||
Upper Tier 2 |
| $ | — |
| $ | — |
| $ | — |
|
Tier 1 |
| 66.2 |
| 35.0 |
| (31.2 | ) | |||
Preferred Stock |
| 0.1 |
| — |
| (0.1 | ) | |||
Total Other Foreign Exposure |
| $ | 66.3 |
| $ | 35.0 |
| $ | (31.3 | ) |
|
|
|
|
|
|
|
| |||
Total Domestic, European and Other Exposure |
|
|
|
|
|
|
| |||
Upper Tier 2 |
| $ | 8.3 |
| $ | 4.9 |
| $ | (3.4 | ) |
Tier 1 |
| 1,336.1 |
| 614.4 |
| (721.7 | ) | |||
Preferred Stock |
| 243.3 |
| 165.2 |
| (78.1 | ) | |||
Total Domestic, European and Other Exposure |
| $ | 1,587.7 |
| $ | 784.5 |
| $ | (803.2 | ) |
16
Draft
5/03/2009
Life Marketing Quarterly Trends
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Gross Premiums and Policy Fees |
| $ | 358,783 |
| $ | 377,807 |
| $ | 372,674 |
| $ | 391,302 |
| $ | 413,777 |
| $ | 358,783 |
| $ | 413,777 |
|
Reinsurance Ceded |
| (207,865 | ) | (255,739 | ) | (205,699 | ) | (254,723 | ) | (204,167 | ) | (207,865 | ) | (204,167 | ) | |||||||
Net Premiums and Policy Fees |
| 150,918 |
| 122,068 |
| 166,975 |
| 136,579 |
| 209,610 |
| 150,918 |
| 209,610 |
| |||||||
Net investment income |
| 84,956 |
| 86,989 |
| 88,825 |
| 89,283 |
| 93,527 |
| 84,956 |
| 93,527 |
| |||||||
Realized investment gains (losses) |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| |||||||
Other income |
| 25,045 |
| 26,010 |
| 23,507 |
| 22,184 |
| 19,830 |
| 25,045 |
| 19,830 |
| |||||||
Total Revenues |
| 260,919 |
| 235,067 |
| 279,307 |
| 248,046 |
| 322,967 |
| 260,919 |
| 322,967 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
BENEFITS & EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and settlement expenses |
| 177,778 |
| 161,861 |
| 212,201 |
| 153,115 |
| 236,526 |
| 177,778 |
| 236,526 |
| |||||||
Amortization of deferred policy acquisition costs and value of businesses acquired |
| 26,923 |
| 27,234 |
| 5,009 |
| 35,256 |
| 35,728 |
| 26,923 |
| 35,728 |
| |||||||
Other operating expenses |
| 9,769 |
| 7,845 |
| 9,875 |
| 7,938 |
| 8,203 |
| 9,769 |
| 8,203 |
| |||||||
Total Benefits and Expenses |
| 214,470 |
| 196,940 |
| 227,085 |
| 196,309 |
| 280,457 |
| 214,470 |
| 280,457 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
INCOME BEFORE INCOME TAX |
| $ | 46,449 |
| $ | 38,127 |
| $ | 52,222 |
| $ | 51,737 |
| $ | 42,510 |
| $ | 46,449 |
| $ | 42,510 |
|
Life Marketing Key Data
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
SALES BY PRODUCT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Traditional |
| $ | 27,008 |
| $ | 26,881 |
| $ | 23,039 |
| $ | 22,274 |
| $ | 23,151 |
| $ | 27,008 |
| $ | 23,151 |
|
Universal life |
| 14,663 |
| 12,581 |
| 11,092 |
| 14,496 |
| 12,819 |
| 14,663 |
| 12,819 |
| |||||||
Variable universal life |
| 1,604 |
| 1,679 |
| 1,222 |
| 1,162 |
| 642 |
| 1,604 |
| 642 |
| |||||||
Total |
| $ | 43,275 |
| $ | 41,141 |
| $ | 35,353 |
| $ | 37,932 |
| $ | 36,612 |
| $ | 43,275 |
| $ | 36,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
SALES BY DISTRIBUTION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Brokerage general agents |
| $ | 24,396 |
| $ | 23,545 |
| $ | 20,805 |
| $ | 20,549 |
| $ | 21,464 |
| $ | 24,396 |
| $ | 21,464 |
|
Independent agents |
| 8,852 |
| 9,331 |
| 7,403 |
| 7,515 |
| 7,280 |
| 8,852 |
| 7,280 |
| |||||||
Stockbrokers/banks |
| 8,447 |
| 7,307 |
| 6,587 |
| 8,205 |
| 7,173 |
| 8,447 |
| 7,173 |
| |||||||
BOLI/other |
| 1,580 |
| 958 |
| 558 |
| 1,663 |
| 695 |
| 1,580 |
| 695 |
| |||||||
Total |
| $ | 43,275 |
| $ | 41,141 |
| $ | 35,353 |
| $ | 37,932 |
| $ | 36,612 |
| $ | 43,275 |
| $ | 36,612 |
|
17
Draft
5/03/2009
Annuities Quarterly Trends
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Gross Premiums and Policy Fees |
| $ | 8,191 |
| $ | 8,449 |
| $ | 7,885 |
| $ | 10,013 |
| $ | 10,985 |
| $ | 8,191 |
| $ | 10,985 |
|
Reinsurance Ceded |
| — |
| — |
| — |
| (206 | ) | (42 | ) | — |
| (42 | ) | |||||||
Net Premiums and Policy Fees |
| 8,191 |
| 8,449 |
| 7,885 |
| 9,807 |
| 10,943 |
| 8,191 |
| 10,943 |
| |||||||
Net investment income |
| 77,286 |
| 85,007 |
| 89,742 |
| 95,516 |
| 102,982 |
| 77,286 |
| 102,982 |
| |||||||
RIGL - Derivatives |
| (6,240 | ) | (1,850 | ) | (10,385 | ) | (22,496 | ) | 19,088 |
| (6,240 | ) | 19,088 |
| |||||||
RIGL - All Other Investments |
| 20 |
| 1,095 |
| (14,419 | ) | 387 |
| (6,448 | ) | 20 |
| (6,448 | ) | |||||||
Other income |
| 3,003 |
| 3,255 |
| 3,366 |
| 3,137 |
| 3,380 |
| 3,003 |
| 3,380 |
| |||||||
Total Revenues |
| 82,260 |
| 95,956 |
| 76,189 |
| 86,351 |
| 129,945 |
| 82,260 |
| 129,945 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
BENEFITS & EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and settlement expenses |
| 67,416 |
| 71,842 |
| 81,441 |
| 90,101 |
| 85,808 |
| 67,416 |
| 85,808 |
| |||||||
Amortization of deferred policy acquisition costs and value of businesses acquired |
| 5,901 |
| 7,239 |
| 3,034 |
| (15,558 | ) | 45,085 |
| 5,901 |
| 45,085 |
| |||||||
Other operating expenses |
| 6,414 |
| 6,333 |
| 6,650 |
| 6,225 |
| 5,975 |
| 6,414 |
| 5,975 |
| |||||||
Total Benefits and Expenses |
| 79,731 |
| 85,414 |
| 91,125 |
| 80,768 |
| 136,868 |
| 79,731 |
| 136,868 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
INCOME BEFORE INCOME TAX |
| 2,529 |
| 10,542 |
| (14,936 | ) | 5,583 |
| (6,923 | ) | 2,529 |
| (6,923 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjustments to Reconcile to Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Less: RIGL - Derivatives |
| (6,240 | ) | (1,850 | ) | (10,385 | ) | (22,496 | ) | 19,088 |
| (6,240 | ) | 19,088 |
| |||||||
Add back: Derivative gains related to annuities |
| (6,240 | ) | (1,850 | ) | (10,385 | ) | (22,496 | ) | 19,088 |
| (6,240 | ) | 19,088 |
| |||||||
Less: RIGL - All Other Investments |
| 20 |
| 1,095 |
| (14,419 | ) | 387 |
| (6,448 | ) | 20 |
| (6,448 | ) | |||||||
Add back: Related amortization of deferred acquisition costs |
| (20 | ) | 40 |
| 1,073 |
| 979 |
| (100 | ) | (20 | ) | (100 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
PRE-TAX OPERATING INCOME |
| $ | 2,489 |
| $ | 9,487 |
| $ | 556 |
| $ | 6,175 |
| $ | (575 | ) | $ | 2,489 |
| $ | (575 | ) |
Annuities Key Data
|
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
|
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Variable Annuity |
| $ | 92,792 |
| $ | 115,448 |
| $ | 132,374 |
| $ | 111,794 |
| $ | 139,056 |
| $ | 92,792 |
| $ | 139,056 |
|
Immediate Annuity |
| 225,759 |
| 41,731 |
| 34,727 |
| 47,642 |
| 26,043 |
| 225,759 |
| 26,043 |
| |||||||
Single Premium Deferred Annuity |
| 81,891 |
| 185,468 |
| 58,854 |
| 400,638 |
| 151,016 |
| 81,891 |
| 151,016 |
| |||||||
Market Value Adjusted Annuity |
| 208,423 |
| 205,866 |
| 240,639 |
| 411,145 |
| 117,305 |
| 208,423 |
| 117,305 |
| |||||||
Equity Indexed Annuity |
| 3,175 |
| 3,723 |
| 5,565 |
| 4,911 |
| 3,316 |
| 3,175 |
| 3,316 |
| |||||||
Total |
| $ | 612,040 |
| $ | 552,236 |
| $ | 472,159 |
| $ | 976,130 |
| $ | 436,736 |
| $ | 612,040 |
| $ | 436,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
PRE-TAX OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Variable Annuity |
| $ | 4,068 |
| $ | 5,436 |
| $ | (5,737 | ) | $ | (7,056 | ) | $ | (5,841 | ) | $ | 4,068 |
| $ | (5,841 | ) |
Fixed Annuity |
| (1,579 | ) | 4,051 |
| 6,293 |
| 13,231 |
| 5,266 |
| (1,579 | ) | 5,266 |
| |||||||
Total |
| $ | 2,489 |
| $ | 9,487 |
| $ | 556 |
| $ | 6,175 |
| $ | (575 | ) | $ | 2,489 |
| $ | (575 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
DEPOSIT BALANCE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
VA Fixed Annuity |
| $ | 190,968 |
| $ | 201,171 |
| $ | 212,011 |
| $ | 202,395 |
| $ | 226,707 |
|
|
|
|
| ||
VA Separate Account Annuity |
| 2,501,975 |
| 2,464,467 |
| 2,265,765 |
| 2,098,203 |
| 1,786,993 |
|
|
|
|
| |||||||
Sub-total |
| 2,692,943 |
| 2,665,638 |
| 2,477,776 |
| 2,300,598 |
| 2,013,700 |
|
|
|
|
| |||||||
Fixed Annuity |
| 5,114,313 |
| 5,443,137 |
| 5,703,702 |
| 6,195,293 |
| 6,530,391 |
|
|
|
|
| |||||||
Total |
| $ | 7,807,256 |
| $ | 8,108,775 |
| $ | 8,181,478 |
| $ | 8,495,891 |
| $ | 8,544,091 |
|
|
|
|
|
18
Draft
5/03/2009
Stable Value Products Quarterly Trends
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net investment income |
| $ | 78,361 |
| $ | 77,747 |
| $ | 88,254 |
| $ | 83,991 |
| $ | 63,176 |
| $ | 78,361 |
| $ | 63,176 |
|
RIGL - Derivatives |
| 220 |
| 354 |
| (3,196 | ) | (1,451 | ) | 707 |
| 220 |
| 707 |
| |||||||
RIGL - All Other Investments |
| 5,213 |
| 1,469 |
| 8,180 |
| (17,216 | ) | 1,155 |
| 5,213 |
| 1,155 |
| |||||||
Other income |
| — |
| — |
| 3,000 |
| 6,360 |
| 1,526 |
| — |
| 1,526 |
| |||||||
Total Revenues |
| 83,794 |
| 79,570 |
| 96,238 |
| 71,684 |
| 66,564 |
| 83,794 |
| 66,564 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
BENEFITS & EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and settlement expenses |
| 59,929 |
| 57,485 |
| 60,128 |
| 60,066 |
| 42,585 |
| 59,929 |
| 42,585 |
| |||||||
Amortization of deferred policy acquisition costs and value of businesses acquired |
| 1,067 |
| 1,095 |
| 1,211 |
| 1,094 |
| 927 |
| 1,067 |
| 927 |
| |||||||
Other operating expenses |
| 1,149 |
| 1,622 |
| 1,731 |
| 1,325 |
| 983 |
| 1,149 |
| 983 |
| |||||||
Total Benefits and Expenses |
| 62,145 |
| 60,202 |
| 63,070 |
| 62,485 |
| 44,495 |
| 62,145 |
| 44,495 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
INCOME BEFORE INCOME TAX |
| 21,649 |
| 19,368 |
| 33,168 |
| 9,199 |
| 22,069 |
| 21,649 |
| 22,069 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjustments to Reconcile to Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Less: RIGL-Derivatives |
| 220 |
| 354 |
| (3,196 | ) | (1,451 | ) | 707 |
| 220 |
| 707 |
| |||||||
Less: RIGL-All Other Investments |
| 5,213 |
| 1,469 |
| 8,180 |
| (17,216 | ) | 1,155 |
| 5,213 |
| 1,155 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
PRE-TAX OPERATING INCOME |
| $ | 16,216 |
| $ | 17,545 |
| $ | 28,184 |
| $ | 27,866 |
| $ | 20,207 |
| $ | 16,216 |
| $ | 20,207 |
|
Stable Value Products Key Data
|
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
|
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
GIC |
| $ | 74,232 |
| $ | 11,113 |
| $ | 22,600 |
| $ | 58,339 |
| $ | — |
| $ | 74,232 |
| $ | — |
|
GFA - Direct Institutional |
| — |
| 425,000 |
| 636,651 |
| — |
| — |
| — |
| — |
| |||||||
GFA - Registered - Institutional |
| 450,000 |
| — |
| — |
| — |
| — |
| 450,000 |
| — |
| |||||||
GFA - Registered - Retail |
| 113,404 |
| 151,725 |
| 25,719 |
| — |
| — |
| 113,404 |
| — |
| |||||||
Total |
| $ | 637,636 |
| $ | 587,838 |
| $ | 684,970 |
| $ | 58,339 |
| $ | — |
| $ | 637,636 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
DEPOSIT BALANCE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Quarter End Balance |
| $ | 5,207,936 |
| $ | 5,442,022 |
| $ | 6,021,834 |
| $ | 4,960,405 |
| $ | 4,360,658 |
|
|
|
|
| ||
Average Daily Balance |
| $ | 5,140,310 |
| $ | 5,139,017 |
| $ | 5,824,533 |
| $ | 5,666,809 |
| $ | 4,523,563 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
OPERATING SPREAD |
| 1.26 | % | 1.34 | % | 1.70 | %(1) | 1.52 | %(1) | 1.65 | %(1) |
|
|
|
|
(1) Excludes one-time funding agreement retirement gains
19
Draft
5/03/2009
Asset Protection Quarterly Trends
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Gross Premiums and Policy Fees |
| $ | 95,335 |
| $ | 91,110 |
| $ | 88,763 |
| $ | 87,961 |
| $ | 86,935 |
| $ | 95,335 |
| $ | 86,935 |
|
Reinsurance Ceded |
| (47,443 | ) | (42,954 | ) | (40,249 | ) | (40,229 | ) | (41,485 | ) | (47,443 | ) | (41,485 | ) | |||||||
Net Premiums and Policy Fees |
| 47,892 |
| 48,156 |
| 48,514 |
| 47,732 |
| 45,450 |
| 47,892 |
| 45,450 |
| |||||||
Net investment income |
| 9,905 |
| 9,808 |
| 9,595 |
| 9,348 |
| 8,932 |
| 9,905 |
| 8,932 |
| |||||||
Realized investment gains (losses) |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| |||||||
Other income |
| 15,136 |
| 17,379 |
| 16,445 |
| 13,311 |
| 12,473 |
| 15,136 |
| 12,473 |
| |||||||
Total Revenues |
| 72,933 |
| 75,343 |
| 74,554 |
| 70,391 |
| 66,855 |
| 72,933 |
| 66,855 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
BENEFITS & EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and settlement expenses |
| 24,766 |
| 27,662 |
| 28,021 |
| 26,288 |
| 34,110 |
| 24,766 |
| 34,110 |
| |||||||
Amortization of deferred policy acquisition costs and value of businesses acquired |
| 14,332 |
| 15,341 |
| 14,154 |
| 13,877 |
| 13,683 |
| 14,332 |
| 13,683 |
| |||||||
Other operating expenses |
| 23,983 |
| 25,676 |
| 24,193 |
| 24,139 |
| 12,782 |
| 23,983 |
| 12,782 |
| |||||||
Total Benefits and Expenses |
| 63,081 |
| 68,679 |
| 66,368 |
| 64,304 |
| 60,575 |
| 63,081 |
| 60,575 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
INCOME BEFORE INCOME TAX |
| $ | 9,852 |
| $ | 6,664 |
| $ | 8,186 |
| $ | 6,087 |
| $ | 6,280 |
| $ | 9,852 |
| $ | 6,280 |
|
Asset Protection Key Data
|
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
|
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Credit insurance |
| $ | 22,790 |
| $ | 18,381 |
| $ | 15,628 |
| $ | 10,518 |
| $ | 8,483 |
| $ | 22,790 |
| $ | 8,483 |
|
Service contracts |
| 71,663 |
| 82,199 |
| 72,483 |
| 53,517 |
| 48,076 |
| 71,663 |
| 48,076 |
| |||||||
Other products |
| 16,262 |
| 19,055 |
| 16,126 |
| 12,025 |
| 11,781 |
| 16,262 |
| 11,781 |
| |||||||
Total |
| $ | 110,715 |
| $ | 119,635 |
| $ | 104,237 |
| $ | 76,060 |
| $ | 68,340 |
| $ | 110,715 |
| $ | 68,340 |
|
20
Draft
5/03/2009
Acquisitions Quarterly Trends
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Gross Premiums and Policy Fees |
| $ | 191,492 |
| $ | 193,516 |
| $ | 188,377 |
| $ | 191,053 |
| $ | 178,676 |
| $ | 191,492 |
| $ | 178,676 |
|
Reinsurance Ceded |
| (115,763 | ) | (125,079 | ) | (120,785 | ) | (126,071 | ) | (109,607 | ) | (115,763 | ) | (109,607 | ) | |||||||
Net Premiums and Policy Fees |
| 75,729 |
| 68,437 |
| 67,592 |
| 64,982 |
| 69,069 |
| 75,729 |
| 69,069 |
| |||||||
Net investment income |
| 136,213 |
| 134,482 |
| 132,177 |
| 127,156 |
| 123,541 |
| 136,213 |
| 123,541 |
| |||||||
RIGL - Derivatives |
| 28,590 |
| 46,499 |
| 106,974 |
| 27,737 |
| 57,684 |
| 28,590 |
| 57,684 |
| |||||||
RIGL - All Other Investments |
| (36,318 | ) | (50,323 | ) | (146,976 | ) | (72,964 | ) | (52,463 | ) | (36,318 | ) | (52,463 | ) | |||||||
Other income |
| 1,421 |
| 1,847 |
| 1,605 |
| 1,862 |
| 1,403 |
| 1,421 |
| 1,403 |
| |||||||
Total Revenues |
| 205,635 |
| 200,942 |
| 161,372 |
| 148,773 |
| 199,234 |
| 205,635 |
| 199,234 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
BENEFITS & EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and settlement expenses |
| 154,420 |
| 142,801 |
| 145,153 |
| 137,897 |
| 138,731 |
| 154,420 |
| 138,731 |
| |||||||
Amortization of deferred policy acquisition costs and value of businesses acquired |
| 19,596 |
| 19,977 |
| 15,405 |
| 19,406 |
| 17,741 |
| 19,596 |
| 17,741 |
| |||||||
Other operating expenses |
| 6,865 |
| 6,939 |
| 6,019 |
| 1,322 |
| 4,098 |
| 6,865 |
| 4,098 |
| |||||||
Total Benefits and Expenses |
| 180,881 |
| 169,717 |
| 166,577 |
| 158,625 |
| 160,570 |
| 180,881 |
| 160,570 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
INCOME (LOSS) BEFORE INCOME TAX |
| 24,754 |
| 31,225 |
| (5,205 | ) | (9,852 | ) | 38,664 |
| 24,754 |
| 38,664 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjustments to Reconcile to Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Less: RIGL - Derivatives |
| 28,590 |
| 46,499 |
| 106,974 |
| 27,737 |
| 57,684 |
| 28,590 |
| 57,684 |
| |||||||
Less: RIGL - All Other Investments |
| (36,318 | ) | (50,323 | ) | (146,976 | ) | (72,964 | ) | (52,463 | ) | (36,318 | ) | (52,463 | ) | |||||||
Add back: Related amortization of deferred policy acquisition costs and value of businesses acquired |
| 1,094 |
| (535 | ) | (1,776 | ) | (7 | ) | 178 |
| 1,094 |
| 178 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
PRE-TAX OPERATING INCOME |
| $ | 33,576 |
| $ | 34,514 |
| $ | 33,021 |
| $ | 35,368 |
| $ | 33,621 |
| $ | 33,576 |
| $ | 33,621 |
|
21
Draft
5/03/2009
Corporate & Other Quarterly Trends
(Dollars In Thousands) |
| 1ST QTR |
| 2ND QTR |
| 3RD QTR |
| 4TH QTR |
| 1ST QTR |
| 3 MOS |
| |||||||||
(Unaudited) |
| 2008 |
| 2008 |
| 2008 |
| 2008 |
| 2009 |
| 2008 |
| 2009 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Gross Premiums and Policy Fees |
| $ | 8,603 |
| $ | 7,991 |
| $ | 6,765 |
| $ | 6,483 |
| $ | 6,898 |
| $ | 8,603 |
| $ | 6,898 |
|
Reinsurance Ceded |
| (1 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||
Net Premiums and Policy Fees |
| 8,602 |
| 7,989 |
| 6,764 |
| 6,482 |
| 6,897 |
| 8,602 |
| 6,897 |
| |||||||
Net investment income |
| 21,744 |
| 44,908 |
| 14,929 |
| (1,058 | ) | 29,527 |
| 21,744 |
| 29,527 |
| |||||||
RIGL - Derivatives |
| (24,227 | ) | 20,084 |
| (1,402 | ) | (42,554 | ) | 14,954 |
| (24,227 | ) | 14,954 |
| |||||||
RIGL - All Other Investments |
| 3,040 |
| (64,652 | ) | (197,887 | ) | (3,141 | ) | (73,913 | ) | 3,040 |
| (73,913 | ) | |||||||
Other income |
| 904 |
| (508 | ) | 20 |
| 203 |
| 51 |
| 904 |
| 51 |
| |||||||
Total Revenues |
| 10,063 |
| 7,821 |
| (177,576 | ) | (40,068 | ) | (22,484 | ) | 10,063 |
| (22,484 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
BENEFITS & EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and settlement expenses |
| 10,367 |
| 8,693 |
| 8,895 |
| 8,215 |
| 7,715 |
| 10,367 |
| 7,715 |
| |||||||
Amortization of deferred policy acquisition costs and value of businesses acquired |
| 551 |
| 564 |
| 518 |
| 516 |
| 484 |
| 551 |
| 484 |
| |||||||
Other operating expenses |
| 50,789 |
| 47,011 |
| 46,388 |
| 40,212 |
| 39,761 |
| 50,789 |
| 39,761 |
| |||||||
Total Benefits and Expenses |
| 61,707 |
| 56,268 |
| 55,801 |
| 48,943 |
| 47,960 |
| 61,707 |
| 47,960 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
INCOME (LOSS) BEFORE INCOME TAX |
| (51,644 | ) | (48,447 | ) | (233,377 | ) | (89,011 | ) | (70,444 | ) | (51,644 | ) | (70,444 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjustments to Reconcile to Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Less: RIGL-Derivatives |
| (24,227 | ) | 20,084 |
| (1,402 | ) | (42,554 | ) | 14,954 |
| (24,227 | ) | 14,954 |
| |||||||
Less: RIGL-All Other Investments, net of participating income |
| 3,040 |
| (64,652 | ) | (197,887 | ) | (3,141 | ) | (73,913 | ) | 3,040 |
| (73,913 | ) | |||||||
Add back: Derivative gains related to corporate debt and investments |
| 484 |
| 1,786 |
| 1,915 |
| 1,569 |
| 2,238 |
| 484 |
| 2,238 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
PRE-TAX OPERATING INCOME (LOSS) |
| $ | (29,973 | ) | $ | (2,093 | ) | $ | (32,173 | ) | $ | (41,747 | ) | $ | (9,247 | ) | $ | (29,973 | ) | $ | (9,247 | ) |
22