Protective Life (PLPDZ) 8-K Protective Reports Results for the Second Quarter of 2009

Exhibit 99.2

Draft

8/04/2009

Supplemental Schedules

Second Quarter 2009

	Draft
	8/04/2009
	Page 1

Quarterly Financial Highlights

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR		6 MOS
(Unaudited)	2008			2008			2008			2009			2009		2008			2009
Pre-tax Operating Income *
Life Marketing	$	38,127		$	52,222		$	51,737		$	42,510		$	37,179	$	84,576		$	79,689
Acquisitions	34,514			33,021			35,368			33,621			35,041		68,090			68,662
Annuities	9,487			556			6,175			(575		)	21,495		11,976			20,920
Stable Value Products	17,545			28,184			27,866			20,207			16,976		33,761			37,183
Asset Protection	6,664			8,186			6,087			6,280			4,656		16,516			10,936
Corporate & Other	(2,093		)	(32,173		)	(41,747		)	(9,247		)	9,648		(32,066		)	401
Total Pre-tax Operating Income	$	104,244		$	89,996		$	85,486		$	92,796		$	124,995	$	182,853		$	217,791
Balance Sheet Data
Total GAAP Assets	$	42,636,077		$	41,152,791		$	39,572,449		$	38,760,243		$	40,392,169
Shareowners’ Equity	$	2,081,742		$	1,524,655		$	761,095		$	783,178		$	1,628,375
Shareowners’ Equity (excluding accumulated other comprehensive income (loss)) **	$	2,567,964		$	2,452,860		$	2,428,151		$	2,443,382		$	2,660,094
Stock Data
Closing Price	$	38.05		$	28.51		$	14.35		$	5.25		$	11.44
Average Shares Outstanding
Basic	71,116,961			71,115,365			71,122,593			70,850,571			77,893,480		71,098,832			74,391,481
Diluted	71,442,599			71,380,898			71,122,593			71,392,134			78,528,511		71,448,211			74,980,036

* “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”.

	Draft
	8/04/2009
	Page 2

Financial Strength Ratings as of June 30, 2009

	A.M. Best	Fitch	Standard & Poor’s	Moody’s
Legal Entity
Insurance companies:
Protective Life Insurance Company	A+	A+	AA-	A2
West Coast Life Insurance Company	A+	A+	AA-	A2
Protective Life and Annuity Insurance Company	A+	A+	AA-	—
Lyndon Property Insurance Company	A-	—	—	—

Credit Ratings as of June 30, 2009

	A.M. Best	Fitch	Standard & Poor’s	Moody’s
Legal Entity
Protective Life Corporation	a-	A-/BBB+ (1)	A-	Baa2
Protective Life Insurance Company	aa-	—	AA-	—

(1)  The default rating is A-.  The BBB+ rating is related to our senior notes due at 2013, 2014, and 2018.

	Draft
	8/04/2009
	Page 3

GAAP Consolidated Statements of Income (Loss)

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
(Unaudited)	2008			2008			2008			2009			2009			2008			2009
REVENUES
Gross Premiums and Policy Fees	$	678,873		$	664,464		$	686,812		$	659,152		$	679,989		$	1,341,277		$	1,339,141
Reinsurance Ceded	(423,774		)	(366,734		)	(421,230		)	(358,299		)	(394,225		)	(794,846		)	(752,524		)
Net Premiums and Policy Fees	255,099			297,730			265,582			300,853			285,764			546,431			586,617
Net investment income	438,941			423,522			404,236			421,685			431,144			847,406			852,829
RIGL - Derivatives	65,087			91,991			(38,764		)	92,433			(97,991		)	63,430			(5,558		)
RIGL - All Other Investments	(32,425		)	(148,458		)	(63,766		)	(41,843		)	167,799			(60,470		)	125,956
OTTI losses	(79,986		)	(202,644		)	(29,168		)	(117,314		)	(48,877		)	(79,986		)	(166,191		)
OTTI losses recognized in OCI (before taxes)	—			—			—			27,488			7,906			—			35,394
Net OTTI losses recognized in earnings	(79,986		)	(202,644		)	(29,168		)	(89,826		)	(40,971		)	(79,986		)	(130,797		)
Other income	47,983			47,943			47,057			38,663			39,586			93,492			78,249
Total Revenues	694,699			510,084			585,177			721,965			785,331			1,410,303			1,507,296
BENEFITS & EXPENSES
Benefits and settlement expenses	470,344			535,839			475,682			504,359			478,148			965,020			982,507
Amortization of deferred policy acquisition costs and value of businesses acquired	71,450			39,331			54,591			113,648			89,949			139,820			203,597
Other operating expenses	60,204			60,788			47,120			46,671			49,647			125,272			96,318
Interest on indebtedness - subsidiaries	18,554			16,990			14,698			7,991			10,782			35,787			18,773
Interest on indebtedness - holding company - other debt	7,267			7,677			9,942			7,740			7,186			14,534			14,926
Interest on indebtedness - holding company - hybrid securities	9,401			9,401			9,401			9,400			9,401			18,802			18,801
Total Benefits and Expenses	637,220			670,026			611,434			689,809			645,113			1,299,235			1,334,922
INCOME (LOSS) BEFORE INCOME TAX	57,479			(159,942		)	(26,257		)	32,156			140,218			111,068			172,374
Income tax expense (benefit)	19,295			(59,934		)	(10,344		)	10,021			49,461			37,002			59,482
NET INCOME (LOSS)	$	38,184		$	(100,008	)	$	(15,913	)	$	22,135		$	90,757		$	74,066		$	112,892
PER SHARE DATA FOR QUARTER
Operating income-diluted *	$	0.96		$	0.88		$	0.80		$	0.86		$	1.03
RIGL - Derivatives net of gains related to corp debt, investments and annuities	0.59			0.91			(0.15		)	0.65			1.06
RIGL - All Other Investments, net of participating income	(1.02		)	(3.19		)	(0.87		)	(1.20		)	(0.93		)
Net income (loss)-diluted	$	0.53		$	(1.40	)	$	(0.22	)	$	0.31		$	1.16
Average shares outstanding-diluted	71,442,599			71,380,898			71,122,593			71,392,134			78,528,511
Dividends paid	$	0.235		$	0.235		$	0.12		$	0.12		$	0.12
PER SHARE DATA FOR YTD
Operating income-diluted *	$	1.69		$	2.57		$	3.37		$	0.86		$	1.90
RIGL - Derivatives net of gains related to corp debt, investments and annuities	0.63			1.54			1.39			0.65			(0.36		)
RIGL - All Other Investments, net of participating income	(1.28		)	(4.47		)	(5.35		)	(1.20		)	(0.03		)
Net income (loss)-diluted	$	1.04		$	(0.36	)	$	(0.59	)	$	0.31		$	1.51
Average shares outstanding-diluted	71,448,211			71,425,610			71,108,961			71,392,134			74,980,036
Dividends paid	$	0.46		$	0.695		$	0.815		$	0.12		$	0.24

* “Operating Income” is a non-GAAP financial measure.  “Net Income (loss)” is a GAAP financial measure to which “Operating Income” may be compared.

	Draft
	8/04/2009
	Page 4

GAAP Consolidated Balance Sheets

(Dollars In Thousands)	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR
(Unaudited)	2008		2008		2008		2009		2009
ASSETS
Fixed maturities	$	24,097,693	$	22,084,909	$	20,098,980	$	19,571,798	$	20,561,840
Equity securities	357,672		312,389		302,132		268,211		269,108
Mortgage loans	3,523,121		3,653,919		3,848,288		3,858,573		3,846,417
Investment real estate	7,834		7,793		14,810		14,769		17,427
Policy loans	805,105		811,846		810,933		800,617		792,853
Other long-term investments	222,770		329,259		432,137		451,847		346,037
Long-term investments	29,014,195		27,200,115		25,507,280		24,965,815		25,833,682
Short-term investments	839,973		987,604		1,059,506		845,558		1,841,149
Total investments	29,854,168		28,187,719		26,566,786		25,811,373		27,674,831
Cash	107,367		86,587		149,358		180,648		206,540
Accrued investment income	294,908		308,144		287,543		286,363		270,698
Accounts and premiums receivable	139,123		163,258		55,017		59,867		90,237
Reinsurance receivable	5,203,089		5,227,020		5,254,788		5,273,817		5,309,360
Deferred policy acquisition costs and value of businesses acquired	3,629,243		3,965,955		4,200,321		4,243,218		3,900,088
Goodwill	116,307		122,128		120,954		120,179		119,405
Property and equipment, net	40,924		40,274		39,707		37,795		38,401
Other assets	163,752		172,759		174,035		174,777		196,235
Current/Deferred income tax	120,248		154,454		453,526		440,110		69,004
Assets related to separate accounts
Variable annuity	2,641,203		2,426,806		2,027,470		1,907,272		2,257,859
Variable universal life	325,745		297,687		242,944		224,824		259,511
TOTAL ASSETS	$	42,636,077	$	41,152,791	$	39,572,449	$	38,760,243	$	40,392,169

Draft 8/04/2009 Page 5

GAAP Consolidated Balance Sheets - Continued

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR
(Unaudited)	2008			2008			2008			2009			2009
LIABILITIES
Policy liabilities and accruals
Future policy benefits and claims	$	16,772,722		$	16,882,724		$	17,008,524		$	17,118,094		$	17,169,737
Unearned premiums	1,222,142			1,248,942			1,251,855			1,230,108			1,221,101
Stable value product deposits	5,442,022			6,021,834			4,960,405			4,360,658			4,138,131
Annuity deposits	8,886,520			8,976,496			9,357,427			9,316,791			9,596,476
Other policyholders’ funds	405,653			424,185			421,313			443,173			473,105
Securities sold under repurchase agreements	360,000			—			—			—			—
Other liabilities	1,321,202			741,120			926,821			719,550			922,242
Accrued income taxes	—			—			—			—			—
Deferred income taxes	317,531			58,747			—			—			36,037
Non-recourse funding obligations	1,375,000			1,375,000			1,375,000			1,375,000			1,375,000
Debt	559,852			649,852			714,852			756,852			789,852
Liabilities related to variable interest entities	400,000			—			—			—			—
Subordinated Debt Securities	524,743			524,743			524,743			524,743			524,743
Liabilities related to separate accounts
Variable annuity	2,641,203			2,426,806			2,027,470			1,907,272			2,257,859
Variable universal life	325,745			297,687			242,944			224,824			259,511
TOTAL LIABILITIES	40,554,335			39,628,136			38,811,354			37,977,065			38,763,794
SHAREOWNERS’ EQUITY
Common stock	36,626			36,626			36,626			36,626			44,388
Additional paid-in-capital	447,914			448,887			448,481			449,009			575,064
Treasury stock	(27,334		)	(26,978		)	(26,978		)	(26,490		)	(25,945		)
Cumulative Effect Adjustments	3,616			3,616			3,616			3,616			3,616
Unallocated ESOP shares	(474		)	(474		)	(474		)	—			—
Retained earnings	2,107,616			1,991,183			1,966,880			1,980,621			2,062,971
Accumulated other comprehensive income (loss)	(486,222		)	(928,205		)	(1,667,056		)	(1,660,204		)	(1,031,719		)
TOTAL SHAREOWNERS’ EQUITY	2,081,742			1,524,655			761,095			783,178			1,628,375
TOTAL LIABILITIES AND SHAREOWNERS’ EQUITY	$	42,636,077		$	41,152,791		$	39,572,449		$	38,760,243		$	40,392,169
SHAREOWNERS’ EQUITY PER SHARE
Total Shareowners’ Equity	$	29.80		$	21.81		$	10.89		$	11.19		$	19.03
Less: Accumulated other comprehensive income (loss)	(6.96		)	(13.28		)	(23.85		)	(23.72		)	(12.05		)
Excluding accumulated other comprehensive income (loss)*	$	36.76		$	35.09		$	34.74		$	34.91		$	31.08
Total Shareowners’ Equity	$	2,081,742		$	1,524,655		$	761,095		$	783,178		$	1,628,375
Less: Accumulated other comprehensive income (loss)	(486,222		)	(928,205		)	(1,667,056		)	(1,660,204		)	(1,031,719		)
Shareowners’ Equity (excluding accumulated other comprehensive income (loss)) *	$	2,567,964		$	2,452,860		$	2,428,151		$	2,443,382		$	2,660,094
Common shares outstanding	69,864,518			69,903,431			69,905,807			69,986,429			85,578,907
Treasury Stock shares	3,387,442			3,348,529			3,346,153			3,265,531			3,198,053

* “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.

Draft 8/04/2009 Page 6

Calculation of Operating Earnings (Loss) Per Share

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
(Unaudited)	2008			2008			2008			2009			2009			2008			2009
CALCULATION OF NET INCOME (LOSS) PER SHARE
Net income (loss)	$	38,184		$	(100,008	)	$	(15,913	)	$	22,135		$	90,757		$	74,066		$	112,892
Average shares outstanding-basic	71,116,961			71,115,365			71,122,593			70,850,571			77,893,480			71,098,832			74,391,481
Average shares outstanding-diluted	71,442,599			71,380,898			71,122,593			71,392,134			78,528,511			71,448,211			74,980,036
Net income (loss) per share-basic	$	0.54		$	(1.41	)	$	(0.22	)	$	0.31		$	1.17		$	1.04		$	1.52
Net income (loss) per share-diluted	$	0.53		$	(1.40	)	$	(0.22	)	$	0.31		$	1.16		$	1.04		$	1.51
Income (loss) from continuing operations	$	38,184		$	(100,008	)	$	(15,913	)	$	22,135		$	90,757		$	74,066		$	112,892
EPS (basic)	$	0.54		$	(1.41	)	$	(0.22	)	$	0.31		$	1.17		$	1.04		$	1.52
EPS (diluted)	$	0.53		$	(1.40	)	$	(0.22	)	$	0.31		$	1.16		$	1.04		$	1.51
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
RIGL - Derivatives	$	65,087		$	91,991		$	(38,764	)	$	92,433		$	(97,991	)	$	63,430		$	(5,558	)
Derivative Gains related to Corporate Debt and Investments	(1,786		)	(1,915		)	(1,569		)	(2,238		)	(1,163		)	(2,270		)	(3,401		)
Derivative Gains related to Annuities	1,850			10,385			22,496			(19,088		)	(13,393		)	8,090			(32,481		)
RIGL - All Other Investments, net of participating income	(112,411		)	(351,102		)	(92,934		)	(131,669		)	126,828			(140,456		)	(4,841		)
Related amortization of DAC & VOBA	495			703			(972		)	(78		)	942			(579		)	864
	(46,765		)	(249,938		)	(111,743		)	(60,640		)	15,223			(71,785		)	(45,417		)
Tax effect	16,368			87,478			39,110			21,224			(5,328		)	25,125			15,896
	$	(30,397	)	$	(162,460	)	$	(72,633	)	$	(39,416	)	$	9,895		$	(46,660	)	$	(29,521	)
RIGL - Derivatives per share-diluted	$	0.59		$	0.91		$	(0.15	)	$	0.65		$	(0.93	)	$	0.63		$	(0.36	)
RIGL - All Other Investments per share-diluted	$	(1.02	)	$	(3.19	)	$	(0.87	)	$	(1.20	)	$	1.06		$	(1.28	)	$	(0.03	)
OPERATING INCOME PER SHARE *
Net income (loss) per share-diluted	$	0.53		$	(1.40	)	$	(0.22	)	$	0.31		$	1.16		$	1.04		$	1.51
RIGL - Derivatives per share-diluted	0.59			0.91			(0.15		)	0.65			(0.93		)	0.63			(0.36		)
RIGL - All Other Investments, net of participating income per share-diluted	(1.02		)	(3.19		)	(0.87		)	(1.20		)	1.06			(1.28		)	(0.03		)
Operating income per share-diluted	$	0.96		$	0.88		$	0.80		$	0.86		$	1.03		$	1.69		$	1.90
NET OPERATING INCOME *
Net income (loss)	$	38,184		$	(100,008	)	$	(15,913	)	$	22,135		$	90,757		$	74,066		$	112,892
Less: RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities	42,349			65,299			(11,594		)	46,220			(73,156		)	45,013			(26,936		)
Less: RIGL - All Other Investments net of tax, amortization, and participating income	(72,746		)	(227,759		)	(61,039		)	(85,636		)	83,051			(91,673		)	(2,585		)
Net operating income	$	68,581		$	62,452		$	56,720		$	61,551		$	80,862		$	120,726		$	142,413
PRE-TAX OPERATING INCOME **
Income (loss) before income tax and discontinued operations	$	57,479		$	(159,942	)	$	(26,257	)	$	32,156		$	140,218		$	111,068		$	172,374
Less: RIGL - Derivatives	65,087			91,991			(38,764		)	92,433			(97,991		)	63,430			(5,558		)
Less: Derivative gains related to corporate debt, investments & annuities	64			8,470			20,927			(21,326		)	(14,556		)	5,820			(35,882		)
Less: RIGL - All Other Investments, net of participating income	(112,411		)	(351,102		)	(92,934		)	(131,669		)	126,828			(140,456		)	(4,841		)
Less: Related amortization of DAC & VOBA	495			703			(972		)	(78		)	942			(579		)	864
Pre-tax operating income	$	104,244		$	89,996		$	85,486		$	92,796		$	124,995		$	182,853		$	217,791

* “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.

Draft 8/04/2009 Page 7

Invested Asset Summary

(Dollars In Millions)	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR
(Unaudited)	2008		2008		2008		2009		2009
Total Portfolio
Fixed Income	$	24,097.7	$	22,084.9	$	20,099.0	$	19,571.8	$	20,561.8
Mortgage Loans	3,523.1		3,653.9		3,848.3		3,858.6		3,846.4
Real Estate	7.8		7.8		14.8		14.8		17.4
Equities	357.7		312.4		302.1		268.2		269.1
Policy Loans	805.1		811.8		810.9		800.6		792.9
Short-Term Investments	840.0		987.6		1,059.5		845.6		1,841.2
Other Long-Term Investments	222.8		329.3		432.1		451.8		346.0
Total Invested Assets	$	29,854.2	$	28,187.7	$	26,566.7	$	25,811.4	$	27,674.8

Draft 8/04/2009 Page 8

Invested Asset Summary - Fixed Income

(Dollars In Millions)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR
(Unaudited)	2008			2008			2008			2009			2009
Fixed Income
Corporate Bonds	$	14,642.9		$	13,552.4		$	12,306.3		$	12,042.8		$	13,374.3		65%
Residential Mortgage-Backed Securities	6,587.1			5,652.5			4,960.2			4,731.9			4,340.1			21%
Commercial Mortgage-Backed Securities	1,206.3			1,249.5			1,184.9			1,164.2			1,109.3			5%
Asset-Backed Securities	1,316.5			1,209.0			1,132.7			1,175.2			1,151.8			6%
US Govt Bonds	313.3			390.2			484.9			427.5			429.7			2%
States, Municipals and Political Subdivisions	31.5			31.3			30.0			30.2			156.6			1%
Preferred Securities	0.1			—			—			—			—			0%
Convertibles and Bonds with Warrants	—			—			—			—			—			0%
Total Fixed Income Portfolio	$	24,097.7		$	22,084.9		$	20,099.0		$	19,571.8		$	20,561.8		100%
Fixed Income - Quality
AAA	40.9		%	38.6		%	35.2		%	33.7		%	24.2		%
AA	7.3		%	7.1		%	6.6		%	6.1		%	6.7		%
A	18.1		%	18.8		%	19.8		%	19.0		%	20.2		%
BBB	28.4		%	30.3		%	33.0		%	33.6		%	36.0		%
Below investment grade	5.3		%	5.2		%	5.4		%	7.6		%	12.9		%
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Note:  Prior quarter public utilities securities have been reclassed to Corporate Bonds

Draft 8/04/2009 Page 9

Invested Asset Summary - Mortgages

(Dollars In Millions)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR
(Unaudited)	2008			2008			2008			2009			2009
Mortgage Loans - Type
Retail	64.4		%	64.9		%	65.2		%	64.8		%	64.6		%
Apartments	10.6		%	10.4		%	10.1		%	10.7		%	10.7		%
Office Buildings	13.8		%	14.0		%	14.3		%	14.4		%	14.4		%
Warehouses	8.3		%	8.1		%	7.9		%	7.7		%	7.8		%
Miscellaneous	2.9		%	2.6		%	2.5		%	2.4		%	2.5		%
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Problem Mortgage Loans
60 Days Past Due	$	—		$	7.8		$	—		$	0.7		$	4.0
90 Days Past Due	7.4			7.4			7.4			10.7			8.8
Renegotiated Loans	—			—			—			—			—
Foreclosed Real Estate	—			—			7.8			—			2.7
	$	7.4		$	15.2		$	15.2		$	11.4		$	15.5

Draft 8/04/2009 Page 10

Invested Asset Summary - Trading Portfolios

(Dollars In Millions)	2ND QTR			3RD QTR		4TH QTR		1ST QTR		2ND QTR
(Unaudited)	2008			2008		2008		2009		2009
Trading Portfolio Composition (excl. Modco Trading Portfolio)
Rating
AAA	$	192.4		$	183.4	$	148.6	$	138.7	$	52.0	16%
AA	17.1			19.2		—		3.6		40.2		12%
A	58.1			81.9		55.3		48.6		65.3		20%
BBB	153.9			103.0		137.5		134.5		113.9		35%
Below investment grade	—			—		—		5.8		56.8		17%
Short-term investments	2.0			—		—		—		—		0%
Swaps	(5.7		)	—		—		—		—		0%
Total	$	417.8		$	387.5	$	341.4	$	331.2	$	328.2	100%
Modco Trading Portfolio
Rating
AAA	$	1,477.5		$	1,330.5	$	1,357.1	$	1,079.0	$	878.4	32%
AA	249.6			200.2		147.3		134.1		164.6		6%
A	713.3			654.9		591.5		563.6		600.5		22%	��
BBB	837.3			792.5		743.5		837.2		822.8		30%
Below investment grade	46.7			53.2		55.6		112.1		280.5		10%
Total	$	3,324.4		$	3,031.3	$	2,895.0	$	2,726.0	$	2,746.8	100%

Draft 8/04/2009 Page 11

Invested Asset Summary - MBS - Alt-A

Mortgage-backed Securities Collateralized by Alt-A Mortgage Loans as of June 30, 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	$	24.0		$	—		$	—		$	—	$	—	$	24.0
A	12.7			—			—			—		—		12.7
BBB	34.0			—			—			—		—		34.0
Below investment grade	5.5			236.9			152.8			—		—		395.2
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	76.2		$	236.9		$	152.8		$	—	$	—	$	465.9
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
Rating
AAA	$	(4.5	)	$	—		$	—		$	—	$	—	$	(4.5	)
A	(2.1		)	—			—			—		—		(2.1		)
BBB	(4.9		)	—			—			—		—		(4.9		)
Below investment grade	(2.7		)	(82.7		)	(53.9		)	—		—		(139.3		)
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	(14.2	)	$	(82.7	)	$	(53.9	)	$	—	$	—	$	(150.8	)

Draft 8/04/2009 Page 12

Invested Asset Summary - MBS - Subprime

Mortgage-backed Securities Collateralized by Subprime Loans as of June 30, 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	$	3.1		$	—		$	—		$	—	$	—	$	3.1
AA	0.8			1.4			—			—		—		2.2
BBB	0.1			4.4			—			—		—		4.5
Below investment grade	1.2			11.4			9.8			—		—		22.4
Total mortgage-backed securities collateralized by sub-prime mortgage loans	$	5.2		$	17.2		$	9.8		$	—	$	—	$	32.2
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
Rating
AAA	$	(1.1	)	$	—		$	—		$	—	$	—	$	(1.1	)
AA	(0.7		)	(0.3		)	—			—		—		(1.0		)
BBB	(0.1		)	(2.5		)	—			—		—		(2.6		)
Below investment grade	(1.5		)	(8.7		)	(24.8		)	—		—		(35.0		)
Total mortgage-backed securities collateralized by sub-prime mortgage loans	$	(3.4	)	$	(11.5	)	$	(24.8	)	$	—	$	—	$	(39.7	)

	Draft
	8/04/2009
	Page 13

Invested Asset Summary - MBS - Prime

Mortgage-backed Securities Collateralized by Prime Loans as of June 30, 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	$	1,680.4		$	256.2		$	22.6		$	3.6	$	—	$	1,962.8
AA	105.4			40.5			30.9			—		—		176.8
A	194.6			67.1			27.9			—		—		289.6
BBB	288.2			103.7			37.3			—		—		429.2
Below investment grade	158.3			566.4			258.8			—		—		983.5
Total mortgage-backed securities collateralized by prime loans	$	2,426.9		$	1,033.9		$	377.5		$	3.6	$	—	$	3,841.9
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
Rating
AAA	$	(5.6	)	$	(7.9	)	$	(0.7	)	$	0.1	$	—	$	(14.1	)
AA	(46.6		)	(4.1		)	(1.5		)	—		—		(52.2		)
A	(20.7		)	(3.3		)	(5.4		)	—		—		(29.4		)
BBB	(67.3		)	(18.6		)	(7.0		)	—		—		(92.9		)
Below investment grade	(20.0		)	(186.9		)	(80.7		)	—		—		(287.6		)
Total mortgage-backed securities collateralized by prime loans	$	(160.2	)	$	(220.8	)	$	(95.3	)	$	0.1	$	—	$	(476.2	)

	Draft
	8/04/2009
	Page 14

Invested Asset Summary - External CMBS

External Commercial Mortgage-backed Securities as of June 30, 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	$	233.5		$	12.9		$	—	$	39.9	$	—		$	286.3
BBB	5.4			—			—		—		—			5.4
Total external commercial mortgage-backed securities	$	238.9		$	12.9		$	—	$	39.9	$	—		$	291.7
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
Rating
AAA	$	1.3		$	(0.8	)	$	—	$	—	$	(4.3	)	$	(3.8	)
BBB	(1.6		)	—			—		—		—			(1.6		)
Total external commercial mortgage-backed securities	$	(0.3	)	$	(0.8	)	$	—	$	—	$	(4.3	)	$	(5.4	)

Draft 8/04/2009 Page 15

Invested Asset Summary - ABS*

Asset-backed Securities* as of June 30, 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	$	683.4		$	40.8		$	326.9		$	49.9		$	—	$	1,101.0
AA	16.6			—			—			—			—		16.6
A	1.8			—			—			—			—		1.8
BBB	2.9			5.1			18.3			—			—		26.3
Below investment grade	—			1.0			5.1			—			—		6.1
Total asset-backed securities	$	704.7		$	46.9		$	350.3		$	49.9		$	—	$	1,151.8
Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
Rating
AAA	$	(17.9	)	$	0.8		$	(17.4	)	$	(0.1	)	$	—	$	(34.6	)
AA	0.5			—			—			—			—		0.5
BBB	(0.3		)	(1.9		)	(0.2		)	—			—		(2.4		)
Below investment grade	—			(0.3		)	(1.9		)	—			—		(2.2		)
Total asset-backed securities	$	(17.7	)	$	(1.4	)	$	(19.5	)	$	(0.1	)	$	—	$	(38.7	)

* Excludes Residential and Commercial mortgage-backed securities

Draft 8/04/2009 Page 16

Invested Asset Summary - Other

(Dollars In Millions) (Unaudited) (Excludes Modco portfolio)	GAAP Amortized Cost		Market Value		Unrealized Gain / (Loss)
Hybrid / Preferred Securities
Domestic Exposure
Tier 1	$	987.7	$	720.6	$	(267.1	)
Preferred Stock	142.6		124.0		(18.6		)
Total Domestic Exposure	$	1,130.3	$	844.6	$	(285.7	)
European Exposure
Upper Tier 2	$	8.2	$	5.6	$	(2.6	)
Tier 1	282.3		149.2		(133.1		)
Preferred Stock	64.5		57.5		(7.0		)
Total European Exposure	$	355.0	$	212.3	$	(142.7	)
Other Foreign Exposure
Tier 1	$	66.2	$	52.5	$	(13.7	)
Preferred Stock	0.1		0.1		—
Total Other Foreign Exposure	$	66.3	$	52.6	$	(13.7	)
Total Domestic, European and Other Exposure
Upper Tier 2	$	8.2	$	5.6	$	(2.6	)
Tier 1	1,336.2		922.3		(413.9		)
Preferred Stock	207.2		181.6		(25.6		)
Total Domestic, European and Other Exposure	$	1,551.6	$	1,109.5	$	(442.1	)

Draft 8/04/2009 Page 17

Life Marketing Quarterly Trends

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
(Unaudited)	2008			2008			2008			2009			2009			2008			2009
REVENUES
Gross Premiums and Policy Fees	$	377,807		$	372,674		$	391,302		$	375,658		$	397,195		$	736,590		$	772,853
Reinsurance Ceded	(255,739		)	(205,699		)	(254,723		)	(207,164		)	(241,002		)	(463,604		)	(448,166		)
Net Premiums and Policy Fees	122,068			166,975			136,579			168,494			156,193			272,986			324,687
Net investment income	86,989			88,825			89,283			93,527			90,833			171,945			184,360
Realized investment gains (losses)	—			—			—			—			—			—			—
Other income	26,010			23,507			22,184			19,830			20,168			51,055			39,998
Total Revenues	235,067			279,307			248,046			281,851			267,194			495,986			549,045
BENEFITS & EXPENSES
Benefits and settlement expenses	161,861			212,201			153,115			195,410			189,101			339,639			384,511
Amortization of deferred policy acquisition costs and value of businesses acquired	27,234			5,009			35,256			35,728			33,404			54,157			69,132
Other operating expenses	7,845			9,875			7,938			8,203			7,510			17,614			15,713
Total Benefits and Expenses	196,940			227,085			196,309			239,341			230,015			411,410			469,356
INCOME BEFORE INCOME TAX	$	38,127		$	52,222		$	51,737		$	42,510		$	37,179		$	84,576		$	79,689

Life Marketing Key Data

(Dollars In Thousands)	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR		6 MOS
(Unaudited)	2008		2008		2008		2009		2009		2008		2009
SALES BY PRODUCT
Traditional	$	26,881	$	23,039	$	22,274	$	23,151	$	26,102	$	53,889	$	49,253
Universal life	12,581		11,092		14,496		12,819		12,796		27,244		25,615
Variable universal life	1,679		1,222		1,162		642		854		3,283		1,496
Total	$	41,141	$	35,353	$	37,932	$	36,612	$	39,752	$	84,416	$	76,364
SALES BY DISTRIBUTION
Brokerage general agents	$	23,545	$	20,805	$	20,549	$	21,464	$	25,783	$	47,941	$	47,247
Independent agents	9,331		7,403		7,515		7,280		7,084		18,183		14,364
Stockbrokers/banks	7,307		6,587		8,205		7,173		6,509		15,754		13,682
BOLI/other	958		558		1,663		695		376		2,538		1,071
Total	$	41,141	$	35,353	$	37,932	$	36,612	$	39,752	$	84,416	$	76,364

Draft
8/04/2009 Page 18

Annuities Quarterly Trends

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
(Unaudited)	2008			2008			2008			2009			2009			2008			2009
REVENUES
Gross Premiums and Policy Fees	$	8,449		$	7,885		$	10,013		$	10,985		$	7,406		$	16,640		$	18,391
Reinsurance Ceded	—			—			(206		)	(42		)	(42		)	—			(84		)
Net Premiums and Policy Fees	8,449			7,885			9,807			10,943			7,364			16,640			18,307
Net investment income	85,007			89,742			95,516			102,982			108,588			162,293			211,570
RIGL - Derivatives	(1,850		)	(10,385		)	(22,496		)	19,088			13,393			(8,090		)	32,481
RIGL - All Other Investments	1,095			(14,419		)	387			(6,448		)	925			1,115			(5,523		)
Other income	3,255			3,366			3,137			3,380			4,215			6,258			7,595
Total Revenues	95,956			76,189			86,351			129,945			134,485			178,216			264,430
BENEFITS & EXPENSES
Benefits and settlement expenses	71,842			81,441			90,101			85,808			78,759			139,258			164,567
Amortization of deferred policy acquisition costs and value of businesses acquired	7,239			3,034			(15,558		)	45,085			26,568			13,140			71,653
Other operating expenses	6,333			6,650			6,225			5,975			6,068			12,747			12,043
Total Benefits and Expenses	85,414			91,125			80,768			136,868			111,395			165,145			248,263
INCOME BEFORE INCOME TAX	10,542			(14,936		)	5,583			(6,923		)	23,090			13,071			16,167
Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives	(1,850		)	(10,385		)	(22,496		)	19,088			13,393			(8,090		)	32,481
Add back: Derivative gains related to annuities	(1,850		)	(10,385		)	(22,496		)	19,088			13,393			(8,090		)	32,481
Less: RIGL - All Other Investments	1,095			(14,419		)	387			(6,448		)	925			1,115			(5,523		)
Add back: Related amortization of deferred acquisition costs	40			1,073			979			(100		)	(670		)	20			(770		)
PRE-TAX OPERATING INCOME	$	9,487		$	556		$	6,175		$	(575	)	$	21,495		$	11,976		$	20,920

Annuities Key Data

	2ND QTR		3RD QTR			4TH QTR			1ST QTR			2ND QTR		6 MOS
	2008		2008			2008			2009			2009		2008		2009
SALES
Variable Annuity	$	115,448	$	132,374		$	111,794		$	139,056		$	177,306	$	208,240	$	316,362
Immediate Annuity	41,731		34,727			47,642			26,043			17,918		267,490		43,961
Single Premium Deferred Annuity	185,468		58,854			400,638			151,016			264,326		267,359		415,342
Market Value Adjusted Annuity	205,866		240,639			411,145			117,305			150,129		414,289		267,434
Equity Indexed Annuity	3,723		5,565			4,911			3,316			—		6,898		3,316
Total	$	552,236	$	472,159		$	976,130		$	436,736		$	609,679	$	1,164,276	$	1,046,415
PRE-TAX OPERATING INCOME
Variable Annuity	$	5,436	$	(5,737	)	$	(7,056	)	$	(5,841	)	$	15,230	$	9,504	$	9,389
Fixed Annuity	4,051		6,293			13,231			5,266			6,265		2,472		11,531
Total	$	9,487	$	556		$	6,175		$	(575	)	$	21,495	$	11,976	$	20,920
DEPOSIT BALANCE
VA Fixed Annuity	$	201,171	$	212,011		$	202,395		$	226,707		$	242,491
VA Separate Account Annuity	2,464,467		2,265,765			2,098,203			1,786,993			2,128,899
Sub-total	2,665,638		2,477,776			2,300,598			2,013,700			2,371,390
Fixed Annuity	5,443,137		5,703,702			6,195,293			6,530,391			6,882,551
Total	$	8,108,775	$	8,181,478		$	8,495,891		$	8,544,091		$	9,253,941

Draft
8/04/2009 Page 19

Stable Value Products Quarterly Trends

(Dollars In Thousands)	2ND QTR		3RD QTR			4TH QTR			1ST QTR		2ND QTR			6 MOS
(Unaudited)	2008		2008			2008			2009		2009			2008		2009
REVENUES
Net investment income	$	77,747	$	88,254		$	83,991		$	63,176	$	57,550		$	156,108	$	120,726
RIGL - Derivatives	354		(3,196		)	(1,451		)	707		247			574		954
RIGL - All Other Investments	1,469		8,180			(17,216		)	1,155		(647		)	6,682		508
Other income	—		3,000			6,360			1,526		340			—		1,866
Total Revenues	79,570		96,238			71,684			66,564		57,490			163,364		124,054
BENEFITS & EXPENSES
Benefits and settlement expenses	57,485		60,128			60,066			42,585		39,206			117,414		81,791
Amortization of deferred policy acquisition costs and value of businesses acquired	1,095		1,211			1,094			927		844			2,162		1,771
Other operating expenses	1,622		1,731			1,325			983		864			2,771		1,847
Total Benefits and Expenses	60,202		63,070			62,485			44,495		40,914			122,347		85,409
INCOME BEFORE INCOME TAX	19,368		33,168			9,199			22,069		16,576			41,017		38,645
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives	354		(3,196		)	(1,451		)	707		247			574		954
Less: RIGL-All Other Investments	1,469		8,180			(17,216		)	1,155		(647		)	6,682		508
PRE-TAX OPERATING INCOME	$	17,545	$	28,184		$	27,866		$	20,207	$	16,976		$	33,761	$	37,183

Stable Value Products Key Data

	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
	2008			2008			2008			2008			2009			2008		2009
SALES
GIC	$	11,113		$	22,600		$	58,339		$	—		$	—		$	85,345	$	—
GFA - Direct Institutional	425,000			636,651			—			—			—			425,000		—
GFA - Registered - Institutional	—			—			—			—			—			450,000		—
GFA - Registered - Retail	151,725			25,719			—			—			—			265,129		—
Total	$	587,838		$	684,970		$	58,339		$	—		$	—		$	1,225,474	$	—
DEPOSIT BALANCE
Quarter End Balance	$	5,442,022		$	6,021,834		$	4,960,405		$	4,360,658		$	4,138,131
Average Daily Balance	$	5,139,017		$	5,824,533		$	5,666,809		$	4,523,563		$	4,224,897
OPERATING SPREAD	1.34		%	1.70		%(1)	1.52		%(1)	1.65		%(1)	1.57		%(1)

(1)Excludes one-time funding agreement retirement gains

Draft
8/04/2009 Page 20

Asset Protection Quarterly Trends

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
(Unaudited)	2008			2008			2008			2009			2009			2008			2009
REVENUES
Gross Premiums and Policy Fees	$	91,110		$	88,763		$	87,961		$	86,935		$	84,240		$	186,445		$	171,175
Reinsurance Ceded	(42,954		)	(40,249		)	(40,229		)	(41,485		)	(37,698		)	(90,397		)	(79,183		)
Net Premiums and Policy Fees	48,156			48,514			47,732			45,450			46,542			96,048			91,992
Net investment income	9,808			9,595			9,348			8,932			8,407			19,713			17,339
Realized investment gains (losses)	—			—			—			—			—			—			—
Other income	17,379			16,445			13,311			12,473			13,199			32,515			25,672
Total Revenues	75,343			74,554			70,391			66,855			68,148			148,276			135,003
BENEFITS & EXPENSES
Benefits and settlement expenses	27,662			28,021			26,288			34,110			29,363			52,428			63,473
Amortization of deferred policy acquisition costs and value of businesses acquired	15,341			14,154			13,877			13,683			14,104			29,673			27,787
Other operating expenses	25,676			24,193			24,139			12,782			20,025			49,659			32,807
Total Benefits and Expenses	68,679			66,368			64,304			60,575			63,492			131,760			124,067
INCOME BEFORE INCOME TAX	$	6,664		$	8,186		$	6,087		$	6,280		$	4,656		$	16,516		$	10,936

Asset Protection Key Data

	2ND QTR		3RD QTR		4TH QTR		1ST QTR		2ND QTR		6 MOS
	2008		2008		2008		2009		2009		2008		2009
SALES
Credit insurance	$	18,381	$	15,628	$	10,518	$	8,483	$	8,721	$	41,171	$	17,204
Service contracts	82,199		72,483		53,517		48,076		56,368		153,862		104,444
Other products	19,055		16,126		12,025		11,781		11,091		35,317		22,872
Total	$	119,635	$	104,237	$	76,060	$	68,340	$	76,180	$	230,350	$	144,520

	Draft
	8/04/2009
	Page 21

Acquisitions Quarterly Trends

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
(Unaudited)	2008			2008			2008			2009			2009			2008			2009
REVENUES
Gross Premiums and Policy Fees	$	193,516		$	188,377		$	191,053		$	178,676		$	184,484		$	385,008		$	363,160
Reinsurance Ceded	(125,079		)	(120,785		)	(126,071		)	(109,607		)	(115,482		)	(240,842		)	(225,089		)
Net Premiums and Policy Fees	68,437			67,592			64,982			69,069			69,002			144,166			138,071
Net investment income	134,482			132,177			127,156			123,541			119,515			270,695			243,056
RIGL - Derivatives	46,499			106,974			27,737			57,684			(146,462		)	75,089			(88,778		)
RIGL - All Other Investments	(50,323		)	(146,976		)	(72,964		)	(52,463		)	157,871			(86,641		)	105,408
Other income	1,847			1,605			1,862			1,403			1,592			3,268			2,995
Total Revenues	200,942			161,372			148,773			199,234			201,518			406,577			400,752
BENEFITS & EXPENSES
Benefits and settlement expenses	142,801			145,153			137,897			138,731			135,773			297,221			274,504
Amortization of deferred policy acquisition costs and value of businesses acquired	19,977			15,405			19,406			17,741			14,560			39,573			32,301
Other operating expenses	6,939			6,019			1,322			4,098			4,463			13,804			8,561
Total Benefits and Expenses	169,717			166,577			158,625			160,570			154,796			350,598			315,366
INCOME (LOSS) BEFORE INCOME TAX	31,225			(5,205		)	(9,852		)	38,664			46,722			55,979			85,386
Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives	46,499			106,974			27,737			57,684			(146,462		)	75,089			(88,778		)
Less: RIGL - All Other Investments	(50,323		)	(146,976		)	(72,964		)	(52,463		)	157,871			(86,641		)	105,408
Add back: Related amortization of deferred policy acquisition costs and value of businesses acquired	(535		)	(1,776		)	(7		)	178			(272		)	559			(94		)
PRE-TAX OPERATING INCOME	$	34,514		$	33,021		$	35,368		$	33,621		$	35,041		$	68,090		$	68,662

	Draft
	8/04/2009
	Page 22

Corporate & Other Quarterly Trends

(Dollars In Thousands)	2ND QTR			3RD QTR			4TH QTR			1ST QTR			2ND QTR			6 MOS
(Unaudited)	2008			2008			2008			2009			2009			2008			2009
REVENUES
Gross Premiums and Policy Fees	$	7,991		$	6,765		$	6,483		$	6,898		$	6,664		$	16,594		$	13,562
Reinsurance Ceded	(2		)	(1		)	(1		)	(1		)	(1		)	(3		)	(2		)
Net Premiums and Policy Fees	7,989			6,764			6,482			6,897			6,663			16,591			13,560
Net investment income	44,908			14,929			(1,058		)	29,527			46,251			66,652			75,778
RIGL - Derivatives	20,084			(1,402		)	(42,554		)	14,954			34,832			(4,143		)	49,786
RIGL - All Other Investments	(64,652		)	(197,887		)	(3,141		)	(73,913		)	(31,322		)	(61,612		)	(105,235		)
Other income	(508		)	20			203			51			72			396			123
Total Revenues	7,821			(177,576		)	(40,068		)	(22,484		)	56,496			17,884			34,012
BENEFITS & EXPENSES
Benefits and settlement expenses	8,693			8,895			8,215			7,715			5,946			19,060			13,661
Amortization of deferred policy acquisition costs and value of businesses acquired	564			518			516			484			469			1,115			953
Other operating expenses	47,011			46,388			40,212			39,761			38,086			97,800			77,847
Total Benefits and Expenses	56,268			55,801			48,943			47,960			44,501			117,975			92,461
INCOME (LOSS) BEFORE INCOME TAX	(48,447		)	(233,377		)	(89,011		)	(70,444		)	11,995			(100,091		)	(58,449		)
Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives	20,084			(1,402		)	(42,554		)	14,954			34,832			(4,143		)	49,786
Less: RIGL-All Other Investments, net of participating income	(64,652		)	(197,887		)	(3,141		)	(73,913		)	(31,322		)	(61,612		)	(105,235		)
Add back: Derivative gains related to corporate debt and investments	1,786			1,915			1,569			2,238			1,163			2,270			3,401
PRE-TAX OPERATING INCOME (LOSS)	$	(2,093	)	$	(32,173	)	$	(41,747	)	$	(9,247	)	$	9,648		$	(32,066	)	$	401