Protective Life 8K Protective Reports Results for the Third Quarter of 2010 | PLPDZ 4 Nov 10

Exhibit 99.2

Draft 11/3/2010

Quarterly Financial Highlights

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR		1ST QTR			2ND QTR		3RD QTR		9 MOS
	2009			2009		2010			2010		2010		2009			2010

Pre-tax Operating Income (Loss) *

Life Marketing	$	26,544		$	31,593	$	40,678		$	35,755	$	30,868	$	106,233		$	107,301
Acquisitions	33,061			32,037		31,369			30,190		27,866		101,723			89,425
Annuities	16,075			19,647		18,187			605		22,704		36,995			41,496
Stable Value Products	14,339			10,441		11,027			10,979		8,339		51,522			30,345
Asset Protection	5,731			6,562		13,067			6,616		5,154		16,667			24,837
Corporate & Other	(22,826		)	104,405		(16,132		)	377		405		(22,425		)	(15,350		)
Total Pre-tax Operating Income	$	72,924		$	204,685	$	98,196		$	84,522	$	95,336	$	290,715		$	278,054

Balance Sheet Data

Total GAAP Assets	$	41,787,606		$	42,311,587	$	43,617,727		$	44,576,236	$	45,932,314
Total Protective Life Corporation’s Shareowners’ Equity	$	2,302,799		$	2,478,821	$	2,821,033		$	3,085,599	$	3,571,392
Total Protective Life Corporation’s Shareowners’ Equity (excluding accumulated other comprehensive income (loss))**	$	2,678,271		$	2,799,990	$	2,876,749		$	2,908,109	$	2,969,428

Stock Data

Closing Price	$	21.42		$	16.55	$	21.99		$	21.39	$	21.76
Average Shares Outstanding
Basic	86,481,240			86,491,754		86,500,199			86,562,379		86,603,569		78,465,685			86,555,761
Diluted	87,372,659			87,459,899		87,551,386			87,666,035		87,701,592		79,156,305			87,640,221

* “Pre-tax Operating Income (Loss)” 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 6 for a reconciliation of “Pre-tax Operating Income” to “Income (loss) Before Income Tax”.

** “Total Protective Life Corporation’s Shareowners’ equity excluding accumulated other comprehensive income (loss)” is a non-GAAP financial measure. “Total Protective Life Corporation’s Shareowners’ equity” is a GAAP financial measure to which “Total Protective Life Corporation’s Shareowners’ equity excluding accumulated other comprehensive income (loss)” may be compared.

See Page 5 for a reconciliation of “Total Protective Life Corporation’s Shareowners’ equity excluding accumulated other comprehensive income (loss)” to “Total Protective Life Corporation’s Shareowners’ equity”.

Draft 11/3/2010

Financial Strength Ratings as of September 30, 2010

	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-	—	—	—

Draft 11/3/2010

GAAP Consolidated Statements of Income

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

REVENUES
Gross Premiums and Policy Fees	$	652,497		$	698,061		$	628,772		$	679,241		$	640,265		$	1,991,638		$	1,948,278
Reinsurance Ceded	(351,664		)	(422,865		)	(305,829		)	(379,729		)	(334,040		)	(1,104,188		)	(1,019,598		)
Net Premiums and Policy Fees	300,833			275,196			322,943			299,512			306,225			887,450			928,680
Net investment income	409,956			402,251			411,997			422,500			429,548			1,262,785			1,264,045
RIGL - Derivatives	(195,540		)	23,145			(23,072		)	(119,888		)	(94,034		)	(201,098		)	(236,994		)
RIGL - All Other Investments	165,576			8,662			47,899			67,704			110,787			291,532			226,390

OTTI losses	(14,873		)	(46,706		)	(21,856		)	(36,683		)	(12,898		)	(181,064		)	(71,437		)
OTTI losses/(gains) recognized in OCI (before taxes)	(16,095		)	28,426			9,987			19,885			5,283			19,299			35,155
Net OTTI losses recognized in earnings	(30,968		)	(18,280		)	(11,869		)	(16,798		)	(7,615		)	(161,765		)	(36,282		)
Other income	41,222			178,677			43,872			59,072			58,190			119,471			161,134
Total Revenues	691,079			869,651			791,770			712,102			803,101			2,198,375			2,306,973

BENEFITS & EXPENSES
Benefits and settlement expenses	521,218			474,254			507,295			525,371			549,567			1,503,725			1,582,233
Amortization of deferred policy acquisition costs and value of businesses acquired	47,240			94,732			81,289			23,086			42,386			250,837			146,761
Other operating expenses	54,459			62,832			66,680			61,084			65,213			150,777			192,977
Interest expense - subsidiaries	9,615			2,469			2,158			5,183			6,073			28,388			13,414
Interest expense - holding company - other debt	7,510			23,195			23,671			23,517			23,463			22,436			70,651
Interest expense - holding company - hybrid securities	9,401			9,401			9,401			9,401			9,402			28,202			28,204
Total Benefits and Expenses	649,443			666,883			690,494			647,642			696,104			1,984,365			2,034,240

INCOME BEFORE INCOME TAX	41,636			202,768			101,276			64,460			106,997			214,010			272,733
Income tax expense	14,051			71,757			31,570			23,216			36,626			73,533			91,412
NET INCOME	27,585			131,011			69,706			41,244			70,371			140,477			181,321
Less: Net Income (loss) attributable to noncontrolling interests	—			—			(73		)	(127		)	(77		)	—			(277		)
NET INCOME AVAILABLE TO PLC’S COMMON SHAREOWNERS	$	27,585		$	131,011		$	69,779		$	41,371		$	70,448		$	140,477		$	181,598

PER SHARE DATA FOR QUARTER
Operating income-diluted *	$	0.55		$	1.51		$	0.78		$	0.62		$	0.71
RIGL - Derivatives net of gains related to corp debt, investments and annuities	(1.24		)	0.03			(0.24		)	(0.52		)	(0.67		)
RIGL - All Other Investments	1.01			(0.04		)	0.26			0.37			0.76
Net income available to PLC’s common shareowners-diluted	$	0.32		$	1.50		$	0.80		$	0.47		$	0.80
Average shares outstanding-diluted	87,372,659			87,459,899			87,551,386			87,666,035			87,701,592
Dividends paid	$	0.12		$	0.12		$	0.12		$	0.14		$	0.14

PER SHARE DATA FOR YTD
Operating income-diluted *	$	2.40		$	3.97		$	0.78		$	1.39		$	2.11
RIGL - Derivatives net of gains related to corp debt, investments and annuities	(1.71		)	(1.63		)	(0.24		)	(0.77		)	(1.43		)
RIGL - All Other Investments	1.08			1.00			0.26			0.65			1.39
Net income available to PLC’s common shareowners-diluted	$	1.77		$	3.34		$	0.80		$	1.27		$	2.07
Average shares outstanding-diluted	79,156,305			81,249,265			87,551,386			87,609,027			87,640,221
Dividends paid	$	0.36		$	0.48		$	0.12		$	0.26		$	0.40

* “Operating Income” is a non-GAAP financial measure. “Net income available to PLC’s common shareowners” is a GAAP financial measure to which “Operating Income” may be compared.

Draft 11/3/2010

GAAP Consolidated Balance Sheets

(Dollars In Thousands)

(Unaudited)

	3RD QTR		4TH QTR		1ST QTR		2ND QTR		3RD QTR
	2009		2009		2010		2010		2010
ASSETS

Fixed maturities	$	22,560,159	$	22,830,427	$	23,203,026	$	23,687,528	$	24,838,626
Equity securities	270,057		275,497		280,703		308,951		335,151
Mortgage loans	3,849,349		3,877,087		4,861,699		4,905,276		4,884,102
Investment real estate	19,651		25,188		25,068		22,431		24,669
Policy loans	788,402		794,276		783,580		775,105		767,214
Other long-term investments	232,927		204,754		198,014		182,075		256,093
Long-term investments	27,720,545		28,007,229		29,352,090		29,881,366		31,105,855
Short-term investments	1,076,621		1,049,609		647,952		972,804		483,698
Total investments	28,797,166		29,056,838		30,000,042		30,854,170		31,589,553
Cash	225,302		205,325		202,934		156,524		151,340
Accrued investment income	283,559		285,350		308,779		303,916		320,668
Accounts and premiums receivable	113,847		56,216		49,941		38,817		65,948
Reinsurance receivable	5,336,371		5,333,401		5,445,109		5,553,385		5,563,824
Deferred policy acquisition costs and value of businesses acquired	3,660,267		3,663,350		3,634,057		3,671,153		3,642,484
Goodwill	118,630		117,856		117,081		116,307		115,532
Property and equipment, net	38,031		37,037		36,909		37,831		37,722
Other assets	172,002		176,303		168,274		188,862		207,198
Current/Deferred income tax	47,358		115,447		14,225		43,609		2,438
Assets related to separate accounts
Variable annuity	2,694,715		2,948,457		3,306,242		3,307,239		3,899,308
Variable universal life	300,358		316,007		334,134		304,423		336,299

TOTAL ASSETS	$	41,787,606	$	42,311,587	$	43,617,727	$	44,576,236	$	45,932,314

Draft 11/3/2010

GAAP Consolidated Balance Sheets - Continued

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR
	2009			2009			2010			2010			2010

LIABILITIES
Policy liabilities and accruals
Future policy benefits and claims	$	17,220,814		$	17,327,279		$	17,456,391		$	17,679,905		$	17,824,414
Unearned premiums	1,231,165			1,220,988			1,220,255			1,258,161			1,305,092
Stable value product deposits	3,863,329			3,581,150			3,453,950			3,487,963			3,105,822
Annuity deposits	9,726,082			9,911,040			10,035,799			10,309,546			10,451,322
Other policyholders’ funds	491,216			515,078			534,740			551,860			577,275
Other liabilities	852,449			715,110			907,330			1,059,034			1,115,755
Mortgage loan backed certificates	—			—			110,679			85,873			74,324
Deferred income taxes	400,084			553,062			718,070			891,177			1,113,532
Non-recourse funding obligations	1,375,000			575,000			575,000			556,600			548,000
Debt	804,852			1,644,852			1,619,852			1,474,852			1,485,852
Subordinated Debt Securities	524,743			524,743			524,743			524,743			524,743
Liabilities related to separate accounts
Variable annuity	2,694,715			2,948,457			3,306,242			3,307,239			3,899,308
Variable universal life	300,358			316,007			334,134			304,423			336,299
TOTAL LIABILITIES	39,484,807			39,832,766			40,797,185			41,491,376			42,361,738

SHAREOWNERS’ EQUITY
Common stock	44,388			44,388			44,388			44,388			44,388
Additional paid-in-capital	575,915			576,887			579,915			581,646			584,865
Treasury stock	(25,936		)	(25,929		)	(25,997		)	(25,745		)	(26,101		)
Retained earnings	2,083,904			2,204,644			2,278,443			2,307,820			2,366,276
Accumulated other comprehensive income (loss)	(375,472		)	(321,169		)	(55,716		)	177,490			601,964
TOTAL PROTECTIVE LIFE CORPORATION’S SHAREOWNERS’ EQUITY	2,302,799			2,478,821			2,821,033			3,085,599			3,571,392
Noncontrolling interest	—			—			(491		)	(739		)	(816		)
TOTAL EQUITY	2,302,799			2,478,821			2,820,542			3,084,860			3,570,576
TOTAL LIABILITIES AND SHAREOWNERS’ EQUITY	$	41,787,606		$	42,311,587		$	43,617,727		$	44,576,236		$	45,932,314

PROTECTIVE LIFE CORPORATION’S SHAREOWNERS’ EQUITY PER SHARE
Total Protective Life Corporation’s Shareowners’ Equity	$	26.91		$	28.96		$	32.96		$	36.02		$	41.69
Less: Accumulated other comprehensive income (loss)	(4.39		)	(3.76		)	(0.65		)	2.07			7.03
Excluding accumulated other comprehensive income (loss)*	$	31.30		$	32.72		$	33.61		$	33.95		$	34.66

Total Protective Life Corporation’s Shareowners’ Equity	$	2,302,799		$	2,478,821		$	2,821,033		$	3,085,599		$	3,571,392
Less: Accumulated other comprehensive income (loss)	(375,472		)	(321,169		)	(55,716		)	177,490			601,964
Total Protective Life Corporation’s Shareowners’ Equity (excluding accumulated other comprehensive income (loss)) *	$	2,678,271		$	2,799,990		$	2,876,749		$	2,908,109		$	2,969,428

Common shares outstanding	85,579,870			85,580,803			85,601,358			85,662,191			85,664,518
Treasury Stock shares	3,197,090			3,196,157			3,175,602			3,114,769			3,112,442

* “Total Protective Life Corporation’s Shareowners’ equity” excluding accumulated other comprehensive income (loss)” is a non-GAAP financial measure. “Total Protective Life Corporation’s Shareowners’ equity” is a GAAP financial measure to which “Total Protective Life Corporation’s Shareowners’ equity excluding accumulated other comprehensive income (loss)” may be compared.

Draft 11/3/2010

Calculation of Operating Earnings Per Share

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

CALCULATION OF NET INCOME PER SHARE

Net income available to PLC’s common shareowners	$	27,585		$	131,011		$	69,779		$	41,371		$	70,448		$	140,477		$	181,598

Average shares outstanding-basic	86,481,240			86,491,754			86,500,199			86,562,379			86,603,569			78,465,685			86,555,761
Average shares outstanding-diluted	87,372,659			87,459,899			87,551,386			87,666,035			87,701,592			79,156,305			87,640,221

Net income available to PLC’s common shareowners per share-basic	$	0.32		$	1.51		$	0.81		$	0.48		$	0.81		$	1.79		$	2.10
Net income available to PLC’s common shareowners per share-diluted	$	0.32		$	1.50		$	0.80		$	0.47		$	0.80		$	1.77		$	2.07

Income from continuing operations	$	27,585		$	131,011		$	69,779		$	41,371		$	70,448		$	140,477		$	181,598

EPS (basic)	$	0.32		$	1.51		$	0.81		$	0.48		$	0.81		$	1.79		$	2.10
EPS (diluted)	$	0.32		$	1.50		$	0.80		$	0.47		$	0.80		$	1.77		$	2.07

CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE

RIGL - Derivatives	$	(195,540	)	$	23,145		$	(23,072	)	$	(119,888	)	$	(94,034	)	$	(201,098	)	$	(236,994	)
Derivative Gains related to Corporate Debt and Investments	—			—			(42		)	(42		)	(42		)	(3,401		)	(126		)
Derivative Gains related to Annuities	28,864			(19,003		)	(9,549		)	49,417			4,248			(3,617		)	44,116
RIGL - All Other Investments	134,608			(9,618		)	36,030			50,906			103,172			129,767			190,108
Related amortization of DAC & VOBA	780			3,559			(214		)	(328		)	(1,606		)	1,644			(2,148		)
	(31,288		)	(1,917		)	3,153			(19,935		)	11,738			(76,705		)	(5,044		)
Tax effect	10,951			671			(1,104		)	$	6,977		(4,108		)	26,847			1,765
	$	(20,337	)	$	(1,246	)	$	2,049		$	(12,958	)	$	7,630		$	(49,858	)	$	(3,279	)

RIGL - Derivatives per share-diluted	$	(1.24	)	$	0.03		$	(0.24	)	$	(0.52	)	$	(0.67	)	$	(1.71	)	$	(1.43	)
RIGL - All Other Investments per share-diluted	$	1.01		$	(0.04	)	$	0.26		$	0.37		$	0.76		$	1.08		$	1.39

OPERATING INCOME PER SHARE *

Net income available to PLC’s common shareowners per share-diluted	$	0.32		$	1.50		$	0.80		$	0.47		$	0.80		$	1.77		$	2.07
RIGL - Derivatives per share-diluted	(1.24		)	0.03			(0.24		)	(0.52		)	(0.67		)	(1.71		)	(1.43		)
RIGL - All Other Investments -diluted	1.01			(0.04		)	0.26			0.37			0.76			1.08			1.39
Operating income per share-diluted	$	0.55		$	1.51		$	0.78		$	0.62		$	0.71		$	2.40		$	2.11

NET OPERATING INCOME *

Net income available to PLC’s common shareowners	$	27,585		$	131,011		$	69,779		$	41,371		$	70,448		$	140,477		$	181,598
Less: RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities	(108,339		)	2,692			(21,231		)	(45,833		)	(58,388		)	(135,275		)	(125,452		)
Less: RIGL - All Other Investments net of tax and amortization	88,002			(3,938		)	23,280			32,877			66,018			85,417			122,175
Net operating income	$	47,922		$	132,257		$	67,730		$	54,327		$	62,818		$	190,335		$	184,875

PRE-TAX OPERATING INCOME **

Income before income tax and discontinued operations	$	41,636		$	202,768		$	101,275		$	64,461		$	106,997		$	214,010		$	272,733
Less: RIGL - Derivatives	(195,540		)	23,145			(23,072		)	(119,888		)	(94,034		)	(201,098		)	(236,994		)
Less: Derivative gains related to corporate debt, investments & annuities	28,864			(19,003		)	(9,591		)	49,375			4,206			(7,018		)	43,990
Less: RIGL - All Other Investments	134,608			(9,618		)	36,030			50,906			103,172			129,767			190,108
Less: Related amortization of DAC & VOBA	780			3,559			(214		)	(328		)	(1,606		)	1,644			(2,148		)
Less: Minority Interest	—			—			(74		)	(126		)	(77		)	—			(277		)
Pre-tax operating income	$	72,924		$	204,685		$	98,196		$	84,522		$	95,336		$	290,715		$	278,054

* “Net Operating Income” and “Operating Income Per Share” are non-GAAP financial measures. “Net Income available to PLC’s common shareowners” and “Net Income available to PLC’s common shareowners 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 Before Income Tax” is a GAAP financial measure to which “Pre-tax Operating Income” may be compared.

Draft 11/3/2010

Invested Asset Summary

(Dollars In Millions)

(Unaudited)

	3RD QTR		4TH QTR		1ST QTR		2ND QTR		3RD QTR
	2009		2009		2010		2010		2010

Total Portfolio

Fixed Maturities	$	22,560.2	$	22,830.4	$	23,203.0	$	23,687.5	$	24,838.6	79	%
Mortgage Loans	3,849.3		3,877.1		4,861.7		4,905.3		4,884.1		15	%
Investment Real Estate	19.7		25.2		25.1		22.4		24.7		0	%
Equity Securities	270.1		275.5		280.7		309.0		335.2		1	%
Policy Loans	788.4		794.3		783.6		775.1		767.2		2	%
Short-Term Investments	1,076.6		1,049.6		647.9		972.8		483.7		2	%
Other Long-Term Investments	232.9		204.7		198.0		182.1		256.1		1	%
Total Invested Assets	$	28,797.2	$	29,056.8	$	30,000.0	$	30,854.2	$	31,589.6	100	%

Draft 11/3/2010

Invested Asset Summary - Fixed Income

(Dollars In Millions)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR
	2009			2009			2010			2010			2010

Fixed Income

Corporate Bonds	$	14,419.5		$	14,847.8		$	15,724.6		$	15,950.7		$	17,255.7		69	%
Residential Mortgage-Backed Securities	4,153.7			3,917.5			3,720.4			3,511.4			3,363.0			14	%
Commercial Mortgage-Backed Securities	1,108.5			1,124.3			270.9			297.0			312.2			1	%
Other Asset-Backed Securities	1,176.9			1,120.8			959.2			951.6			877.2			4	%
U.S. Government-related Securities	889.4			811.3			1,579.4			1,824.2			1,718.5			7	%
Other Government-related Securities	538.5			608.5			307.1			368.8			362.0			1	%
States, Municipals and Political Subdivisions	273.7			400.2			641.4			783.8			950.0			4	%
Total Fixed Income Portfolio	$	22,560.2		$	22,830.4		$	23,203.0		$	23,687.5		$	24,838.6		100	%

Fixed Income - Quality

AAA	22.5		%	19.9		%	14.7		%	14.7		%	13.3		%
AA	6.1		%	4.9		%	4.0		%	4.6		%	4.7		%
A	20.1		%	18.7		%	21.9		%	21.6		%	21.8		%
BBB	38.3		%	42.9		%	45.6		%	45.1		%	46.6		%
Below investment grade	13.0		%	13.6		%	13.8		%	14.0		%	13.6		%
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Note: Prior periods restated to be consistent with current quarter presentation.

Draft 11/3/2010

Invested Asset Summary - Mortgages

(Dollars In Millions)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR
	2009			2009			2010			2010			2010

Mortgage Loans - Type

Retail	64.7		%	64.5		%	66.4		%	66.3		%	66.3		%
Apartments	10.5		%	11.3		%	10.9		%	11.6		%	12.2		%
Office Buildings	14.6		%	14.4		%	13.3		%	13.0		%	12.9		%
Warehouses	7.8		%	7.4		%	7.4		%	7.1		%	7.2		%
Miscellaneous	2.4		%	2.4		%	2.0		%	2.0		%	1.4		%
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Delinquent Loans & Foreclosed Properties

60 Days Past Due	$	14.3		$	5.9		$	23.8		$	21.0		$	—
90 Days Past Due	7.1			6.5			21.4			8.2			16.5
Renegotiated Loans	—			—			—			35.7			35.7
Foreclosed Real Estate	5.0			10.7			—			0.7			3.3
	$	26.4		$	23.1		$	45.2		$	65.6		$	55.5	(1)

(1) Includes $35.7 million of loans being restructured under the terms of a pooling and servicing agreement.

Draft 11/3/2010

Invested Asset Summary - Trading Portfolios

(Dollars In Millions)

(Unaudited)

	3RD QTR		4TH QTR		1ST QTR		2ND QTR		3RD QTR
	2009		2009		2010		2010		2010

Trading Portfolio Composition (excl. Modco Trading Portfolio)

Rating
AAA	$	23.9	$	21.6	$	19.6	$	17.4	$	14.8
AA	16.3		6.2		6.3		6.4		1.3
A	88.8		43.2		23.8		12.6		—
BBB	132.2		120.3		82.8		65.0		47.5
Below investment grade	61.2		81.3		84.8		80.0		69.3
Total	$	322.4	$	272.6	$	217.3	$	181.4	$	132.9

Modco Trading Portfolio

Rating
AAA	$	838.2	$	834.7	$	711.9	$	725.3	$	729.7
AA	166.0		73.2		117.2		133.7		182.0
A	568.7		544.1		642.8		759.8		805.2
BBB	872.5		950.3		969.9		978.2		996.3
Below investment grade	351.2		281.5		291.6		275.8		292.7
Short-term investments	242.7		250.8		236.5		130.5		71.5
Total	$	3,039.3	$	2,934.6	$	2,969.9	$	3,003.3	$	3,077.4

Draft 11/3/2010

Invested Asset Summary - MBS - Alt-A

Mortgage-backed Securities Collateralized by Alt-A Mortgage Loans as of September 30, 2010:

(Dollars In Millions)

(Unaudited)

	2006 and
	Prior			2007			2008		2009		2010		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	6.2		$	—		$	—	$	—	$	—	$	6.2
A	4.3			—			—		—		—		4.3
BBB	1.0			—			—		—		—		1.0
Below investment grade	256.1			145.5			—		—		—		401.6
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	267.6		$	145.5		$	—	$	—	$	—	$	413.1

Estimated Unrealized Gain (Loss) of Security by Year of Security Origination

Rating
AAA	$	(0.1	)	$	—		$	—	$	—	$	—	$	(0.1	)
A	0.7			—			—		—		—		0.7
BBB	(1.0		)	—			—		—		—		(1.0		)
Below investment grade	(31.2		)	(13.3		)	—		—		—		(44.5		)
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	(31.6	)	$	(13.3	)	$	—	$	—	$	—	$	(44.9	)

Draft 11/3/2010

Invested Asset Summary - MBS - Sub-prime

Mortgage-backed Securities Collateralized by Sub-prime Loans as of September 30, 2010:

(Dollars In Millions)

(Unaudited)

	2006 and
	Prior			2007			2008		2009		2010		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	0.3		$	—		$	—	$	—	$	—	$	0.3
AA	2.1			—			—		—		—		2.1
BBB	2.2			—			—		—		—		2.2
Below investment grade	17.0			15.2			—		—		—		32.2
Total mortgage-backed securities collateralized by sub-prime mortgage loans	$	21.6		$	15.2		$	—	$	—	$	—	$	36.8

Estimated Unrealized Gain (Loss) of Security by Year of Security Origination

Rating
AAA	$	—		$	—		$	—	$	—	$	—	$	—
AA	(0.2		)	—			—		—		—		(0.2		)
BBB	(0.5		)	—			—		—		—		(0.5		)
Below investment grade	(6.4		)	(19.4		)	—		—		—		(25.8		)
Total mortgage-backed securities collateralized by sub-prime mortgage loans	$	(7.1	)	$	(19.4	)	$	—	$	—	$	—	$	(26.5	)

Draft 11/3/2010

Invested Asset Summary - MBS - Prime

Mortgage-backed Securities Collateralized by Prime Loans as of September 30, 2010:

(Dollars In Millions)

(Unaudited)

	2006 and
	Prior			2007			2008		2009		2010		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	1,062.6		$	7.4		$	—	$	4.0	$	89.0	$	1,163.0
AA	169.8			—			—		—		—		169.8
A	10.0			5.8			—		—		—		15.8
BBB	181.5			—			—		—		—		181.5
Below investment grade	1,126.8			256.3			—		—		—		1,383.1
Total mortgage-backed securities collateralized by prime loans	$	2,550.7		$	269.5		$	—	$	4.0	$	89.0	$	2,913.2

Includes $887.4 million of agency mortgage backed securities.

Estimated Unrealized Gain (Loss) of Security by Year of Security Origination

Rating
AAA	$	64.0		$	0.5		$	—	$	—	$	0.5	$	65.0
AA	2.7			—			—		—		—		2.7
A	0.5			0.3			—		—		—		0.8
BBB	0.5			—			—		—		—		0.5
Below investment grade	(95.3		)	(25.1		)	—		—		—		(120.4		)
Total mortgage-backed securities collateralized by prime loans	$	(27.6	)	$	(24.3	)	$	—	$	—	$	0.5	$	(51.4	)

Draft 11/3/2010

Invested Asset Summary - CMBS

Commercial Mortgage-backed Securities as of September 30, 2010:

(Dollars In Millions)

(Unaudited)

	2006 and
	Prior		2007		2008		2009		2010		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	200.5	$	—	$	47.6	$	—	$	58.2	$	306.3
AA	2.8		—		—		—		3.1		5.9
Total commercial mortgage-backed securities	$	203.3	$	—	$	47.6	$	—	$	61.3	$	312.2

Estimated Unrealized Gain (Loss) of Security by Year of Security Origination

Rating
AAA	$	8.5	$	—	$	3.5	$	—	$	2.4	$	14.4
AA	—		—		—		—		—		—
Total commercial mortgage-backed securities	$	8.5	$	—	$	3.5	$	—	$	2.4	$	14.4

Draft 11/3/2010

Invested Asset Summary - ABS*

Other Asset-backed Securities* as of September 30, 2010:

(Dollars In Millions)

(Unaudited)

	2006 and
	Prior			2007			2008		2009		2010		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	638.8		$	154.3		$	5.5	$	—	$	25.0	$	823.6
AA	32.4			—			—		—		—		32.4
A	6.3			—			—		—		—		6.3
BBB	5.9			0.4			—		—		—		6.3
Below investment grade	0.5			8.1			—		—		—		8.6
Total other asset-backed securities	$	683.9		$	162.8		$	5.5	$	—	$	25.0	$	877.2

Estimated Unrealized Gain (Loss) of Security by Year of Security Origination

Rating
AAA	$	(32.6	)	$	(20.9	)	$	—	$	—	$	—	$	(53.5	)
AA	2.8			—			—		—		—		2.8
A	0.3			—			—		—		—		0.3
BBB	(1.1		)	—			—		—		—		(1.1		)
Below investment grade	(0.2		)	(13.8		)	—		—		—		(14.0		)
Total other asset-backed securities	$	(30.8	)	$	(34.7	)	$	—	$	—	$	—	$	(65.5	)

* Excludes Residential and Commercial mortgage-backed securities

Draft 11/3/2010

Invested Asset Summary - Other

(Dollars In Millions)

(Unaudited)

(Excludes Modco portfolio)

Hybrid / Preferred Securities as of September 30, 2010	GAAP Amortized Cost		Market Value		Unrealized Gain / (Loss)

Domestic Exposure
Tier 1	$	964.6	$	952.8	$	(11.8	)
Preferred Stock	157.1		160.5		3.4
Total Domestic Exposure	$	1,121.7	$	1,113.3	$	(8.4	)

European Exposure
Upper Tier 2	$	53.2	$	62.9	$	9.7
Tier 1	183.0		172.0		(11.0		)
Preferred Stock	64.4		70.1		5.7
Total European Exposure	$	300.6	$	305.0	$	4.4

Other Foreign Exposure
Tier 1	$	65.2	$	67.0	$	1.8
Preferred Stock	0.1		0.1		—
Total Other Foreign Exposure	$	65.3	$	67.1	$	1.8

Total Domestic, European and Other Exposure
Upper Tier 2	$	53.2	$	62.9	$	9.7
Tier 1	1,212.8		1,191.8		(21.0		)
Preferred Stock	221.6		230.7		9.1
Total Domestic, European and Other Exposure	$	1,487.6	$	1,485.4	$	(2.2	)

Draft 11/3/2010

Life Marketing Quarterly Trends

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

REVENUES
Gross Premiums and Policy Fees	$	379,823		$	412,468		$	373,390		$	407,900		$	379,745		$	1,152,676		$	1,161,035
Reinsurance Ceded	(202,708		)	(260,829		)	(176,752		)	(227,543		)	(190,877		)	(650,874		)	(595,172		)
Net Premiums and Policy Fees	177,115			151,639			196,638			180,357			188,868			501,802			565,863
Net investment income	89,035			88,713			91,144			94,763			96,977			273,395			282,884
Other income	19,587			21,262			21,222			23,008			24,141			59,585			68,371
Total Revenues	285,737			261,614			309,004			298,128			309,986			834,782			917,118

BENEFITS & EXPENSES
Benefits and settlement expenses	215,567			182,294			220,556			217,032			260,177			600,078			697,765
Amortization of deferred policy acquisition costs and value of businesses acquired	40,142			34,851			34,078			30,892			1,172			109,274			66,142
Other operating expenses	3,484			12,876			13,692			14,449			17,769			19,197			45,910
Total Benefits and Expenses	259,193			230,021			268,326			262,373			279,118			728,549			809,817

INCOME BEFORE INCOME TAX	$	26,544		$	31,593		$	40,678		$	35,755		$	30,868		$	106,233		$	107,301

Life Marketing Key Data

(Dollars In Thousands)

(Unaudited)

	3RD QTR		4TH QTR		1ST QTR		2ND QTR		3RD QTR		9 MOS
	2009		2009		2010		2010		2010		2009		2010

SALES BY PRODUCT
Traditional	$	25,589	$	22,090	$	20,764	$	17,627	$	8,291	$	74,842	$	46,682
Universal life	15,383		21,027		21,267		23,951		30,427		40,998		75,645
Variable universal life	912		1,235		936		1,334		1,113		2,408		3,383
Total	$	41,884	$	44,352	$	42,967	$	42,912	$	39,831	$	118,248	$	125,710

SALES BY DISTRIBUTION
Brokerage general agents	$	26,301	$	27,833	$	26,351	$	26,654	$	24,033	$	73,548	$	77,038
Independent agents	6,923		6,478		6,691		6,254		5,369		21,287		18,314
Stockbrokers/banks	7,753		8,696		8,971		8,031		8,425		21,435		25,427
BOLI/other	907		1,345		954		1,973		2,004		1,978		4,931
Total	$	41,884	$	44,352	$	42,967	$	42,912	$	39,831	$	118,248	$	125,710

Draft 11/3/2010

Annuities Quarterly Trends

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

REVENUES
Gross Premiums and Policy Fees	$	7,416		$	8,176		$	8,775		$	9,800		$	11,086		$	25,807		$	29,661
Reinsurance Ceded	(29		)	(39		)	(37		)	(38		)	(41		)	(113		)	(116		)
Net Premiums and Policy Fees	7,387			8,137			8,738			9,762			11,045			25,694			29,545
Net investment income	113,272			115,255			116,197			118,719			122,662			324,842			357,578
RIGL - Derivatives	(28,864		)	19,003			9,549			(49,417		)	(4,248		)	3,617			(44,116		)
RIGL - All Other Investments	(482		)	717			102			(524		)	3,610			(6,005		)	3,188
Other income	4,737			5,264			5,994			6,935			8,060			12,332			20,989
Total Revenues	96,050			148,376			140,580			85,475			141,129			360,480			367,184

BENEFITS & EXPENSES
Benefits and settlement expenses	96,118			90,165			94,241			114,534			98,023			260,685			306,798
Amortization of deferred policy acquisition costs and value of businesses acquired	(20,176		)	30,451			19,671			(37,549		)	8,616			51,477			(9,262		)
Other operating expenses	6,855			7,396			8,450			9,003			8,789			18,898			26,242
Total Benefits and Expenses	82,797			128,012			122,362			85,988			115,428			331,060			323,778

INCOME (LOSS) BEFORE INCOME TAX	13,253			20,364			18,218			(513		)	25,701			29,420			43,406

Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives	(28,864		)	19,003			9,549			(49,417		)	(4,248		)	3,617			(44,116		)
Add back: Derivative gains related to annuities	(28,864		)	19,003			9,549			(49,417		)	(4,248		)	3,617			(44,116		)
Less: RIGL - All Other Investments	(482		)	717			102			(524		)	3,610			(6,005		)	3,188
Add back: Related amortization of deferred acquisition costs	2,340			—			71			594			613			1,570			1,278

PRE-TAX OPERATING INCOME	$	16,075		$	19,647		$	18,187		$	605		$	22,704		$	36,995		$	41,496

Annuities Key Data

	3RD QTR		4TH QTR		1ST QTR		2ND QTR			3RD QTR		9 MOS
	2009		2009		2010		2010			2010		2009		2010

SALES
Variable Annuity	$	194,430	$	285,454	$	349,936	$	412,789		$	436,350	$	510,792	$	1,199,075
Immediate Annuity	20,497		11,886		9,347		13,270			20,949		64,458		43,566
Single Premium Deferred Annuity	165,990		202,483		183,828		261,673			194,919		581,332		640,420
Market Value Adjusted Annuity	71,447		22,409		24,713		50,057			24,951		338,881		99,721
Equity Indexed Annuity	212		233		141		299			66		3,528		506
Total	$	452,576	$	522,465	$	567,965	$	738,088		$	677,235	$	1,498,991	$	1,983,288

PRE-TAX OPERATING INCOME (LOSS)
Variable Annuity	$	285	$	11,607	$	11,710	$	(7,762	)	$	8,792	$	9,674	$	12,740
Fixed Annuity	15,790		8,040		6,477		8,367			13,912		27,321		28,756
Total	$	16,075	$	19,647	$	18,187	$	605		$	22,704	$	36,995	$	41,496

DEPOSIT BALANCE
VA Fixed Annuity	$	240,899	$	291,733	$	332,711	$	382,064		$	433,120
VA Separate Account Annuity	2,554,411		2,808,123		3,164,958		3,177,824			3,765,148
Sub-total	2,795,310		3,099,856		3,497,669		3,559,888			4,198,268
Fixed Annuity	7,074,803		7,252,246		7,364,042		7,599,107			7,715,622
Total	$	9,870,113	$	10,352,102	$	10,861,711	$	11,158,995		$	11,913,890

Draft 11/3/2010

Stable Value Products Quarterly Trends

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR		1ST QTR		2ND QTR			3RD QTR		9 MOS
	2009			2009		2010		2010			2010		2009			2010

REVENUES
Net investment income	$	54,024		$	46,938	$	46,420	$	45,724		$	41,100	$	174,750		$	133,244
RIGL - Derivatives	87			529		360		(696		)	26		1,041			(310		)
RIGL - All Other Investments	(5,036		)	261		1,176		(7,755		)	905		(4,528		)	(5,674		)
Other income	—			—		—		—			—		1,866			—
Total Revenues	49,075			47,728		47,956		37,273			42,031		173,129			127,260

BENEFITS & EXPENSES
Benefits and settlement expenses	37,972			34,792		33,731		32,972			30,442		119,763			97,145
Amortization of deferred policy acquisition costs and value of businesses acquired	893			807		979		882			1,398		2,664			3,259
Other operating expenses	820			898		683		891			921		2,667			2,495
Total Benefits and Expenses	39,685			36,497		35,393		34,745			32,761		125,094			102,899

INCOME BEFORE INCOME TAX	9,390			11,231		12,563		2,528			9,270		48,035			24,361

Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives	87			529		360		(696		)	26		1,041			(310		)
Less: RIGL-All Other Investments	(5,036		)	261		1,176		(7,755		)	905		(4,528		)	(5,674		)

PRE-TAX OPERATING INCOME	$	14,339		$	10,441	$	11,027	$	10,979		$	8,339	$	51,522		$	30,345

Stable Value Products Key Data

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009		2010

SALES
GIC	$	—		$	—		$	1,000		$	6,500		$	66,477		$	—	$	73,977
GFA - Direct Institutional	—			—			150,000			250,000			—			—		400,000
GFA - Registered - Institutional	—			—			—			—			—			—
GFA - Registered - Retail	—			—			—			—			—			—
Total	$	—		$	—		$	151,000		$	256,500		$	66,477		$	—	$	473,977

DEPOSIT BALANCE
Quarter End Balance	$	3,863,612		$	3,581,409		$	3,454,186		$	3,488,175		$	3,105,822
Average Daily Balance	$	4,025,344		$	3,602,681		$	3,494,977		$	3,497,115		$	3,331,250

OPERATING SPREAD	1.42		%	1.16		%	1.26		%	1.26		%	1.00		%

Draft 11/3/2010

Asset Protection Quarterly Trends

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

REVENUES
Gross Premiums and Policy Fees	$	83,020		$	85,321		$	79,515		$	76,984		$	75,601		$	254,195		$	232,100
Reinsurance Ceded	(36,600		)	(36,439		)	(35,906		)	(34,654		)	(34,826		)	(115,783		)	(105,386		)
Net Premiums and Policy Fees	46,420			48,882			43,609			42,330			40,775			138,412			126,714
Net investment income	8,038			7,780			7,497			7,316			7,065			25,377			21,878
Other income	15,161			15,719			15,325			18,123			19,916			40,833			53,364
Total Revenues	69,619			72,381			66,431			67,769			67,756			204,622			201,956

BENEFITS & EXPENSES
Benefits and settlement expenses	31,009			32,832			18,756			26,836			28,942			94,482			74,534
Amortization of deferred policy acquisition costs and value of businesses acquired	13,446			13,887			12,775			12,807			12,250			41,233			37,832
Other operating expenses	19,433			19,100			21,907			21,627			21,487			52,240			65,021
Total Benefits and Expenses	63,888			65,819			53,438			61,270			62,679			187,955			177,387

INCOME BEFORE INCOME TAX	5,731			6,562			12,993			6,499			5,077			16,667			24,569
Less: noncontrolling interests	—			—			(74		)	(117		)	(77		)	—			(268		)
OPERATING INCOME	$	5,731		$	6,562		$	13,067		$	6,616		$	5,154		$	16,667		$	24,837

Asset Protection Key Data

	3RD QTR		4TH QTR		1ST QTR		2ND QTR		3RD QTR		9 MOS
	2009		2009		2010		2010		2010		2009		2010

SALES
Credit insurance	$	10,345	$	7,830	$	7,692	$	9,693	$	10,099	$	27,549	$	27,484
Service contracts	64,853		57,507		52,539		65,353		71,384		169,286		189,276
Other products	11,038		8,911		11,459		13,363		15,861		33,920		40,683
Total	$	86,236	$	74,248	$	71,690	$	88,409	$	97,344	$	230,755	$	257,443

Draft 11/3/2010

Acquisitions Quarterly Trends

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

REVENUES
Gross Premiums and Policy Fees	$	175,521		$	185,807		$	160,721		$	178,389		$	167,985		$	538,681		$	507,095
Reinsurance Ceded	(112,325		)	(125,558		)	(93,134		)	(117,492		)	(108,296		)	(337,414		)	(318,922		)
Net Premiums and Policy Fees	63,196			60,249			67,587			60,897			59,689			201,267			188,173
Net investment income	118,202			118,485			115,401			116,748			114,045			361,258			346,194
RIGL - Derivatives	(156,504		)	(6,818		)	(30,063		)	(62,593		)	(85,352		)	(245,282		)	(178,008		)
RIGL - All Other Investments	163,529			13,026			44,519			61,152			97,784			268,937			203,455
Other income	1,519			1,545			1,273			1,375			2,011			4,514			4,659
Total Revenues	189,942			186,487			198,717			177,579			188,177			590,694			564,473

BENEFITS & EXPENSES
Benefits and settlement expenses	131,786			126,702			133,474			127,554			125,234			406,290			386,262
Amortization of deferred policy acquisition costs and value of businesses acquired	12,427			14,297			13,338			15,602			18,551			44,728			47,491
Other operating expenses	2,523			3,684			6,223			5,408			5,087			11,084			16,718
Total Benefits and Expenses	146,736			144,683			153,035			148,564			148,872			462,102			450,471

INCOME BEFORE INCOME TAX	43,206			41,804			45,682			29,015			39,305			128,592			114,002

Adjustments to Reconcile to Operating Income:
Less: RIGL - Derivatives	(156,504		)	(6,818		)	(30,063		)	(62,593		)	(85,352		)	(245,282		)	(178,008		)
Less: RIGL - All Other Investments	163,529			13,026			44,519			61,152			97,784			268,937			203,455
Add back: Related amortization of deferred policy acquisition costs and value of businesses acquired	(3,120		)	(3,559		)	143			(266		)	993			(3,214		)	870

PRE-TAX OPERATING INCOME	$	33,061		$	32,037		$	31,369		$	30,190		$	27,866		$	101,723		$	89,425

Draft 11/3/2010

Corporate & Other Quarterly Trends

(Dollars In Thousands)

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

REVENUES
Gross Premiums and Policy Fees	$	6,717		$	6,289		$	6,371		$	6,168		$	5,848		$	20,279		$	18,387
Reinsurance Ceded	(2		)	—			—			(2		)	—			(4		)	(2		)
Net Premiums and Policy Fees	6,715			6,289			6,371			6,166			5,848			20,275			18,385
Net investment income	27,385			25,080			35,338			39,230			47,699			103,163			122,267
RIGL - Derivatives	(10,259		)	10,430			(2,918		)	(7,182		)	(4,460		)	39,527			(14,560		)
RIGL - All Other Investments	(23,403		)	(23,621		)	(9,767		)	(1,967		)	873			(128,638		)	(10,861		)
Other income	218			134,887			58			9,631			4,062			341			13,751
Total Revenues	656			153,065			29,082			45,878			54,022			34,668			128,982

BENEFITS & EXPENSES
Benefits and settlement expenses	8,766			7,469			6,537			6,443			6,749			22,427			19,729
Amortization of deferred policy acquisition costs and value of businesses acquired	508			439			448			452			399			1,461			1,299
Other operating expenses	47,870			53,943			50,955			47,807			50,098			125,717			148,860
Total Benefits and Expenses	57,144			61,851			57,940			54,702			57,246			149,605			169,888

INCOME (LOSS) BEFORE INCOME TAX	(56,488		)	91,214			(28,858		)	(8,824		)	(3,224		)	(114,937		)	(40,906		)

Adjustments to Reconcile to Operating Income:
Less: RIGL-Derivatives	(10,259		)	10,430			(2,918		)	(7,182		)	(4,460		)	39,527			(14,560		)
Less: RIGL-All Other Investments	(23,403		)	(23,621		)	(9,767		)	(1,967		)	873			(128,638		)	(10,861		)
Add back: Derivative gains related to corporate debt and investments	—			—			42			42			42			3,401			126
Less: noncontrolling interests	—			—			1			(10		)	—						(9		)

PRE-TAX OPERATING INCOME (LOSS)	$	(22,826	)	$	104,405		$	(16,132	)	$	377		$	405		$	(22,425	)	$	(15,350	)

Draft 11/3/2010

INFORMATION RELATED TO CERTAIN NON-GAAP DISCLOSURES

The following pages contain information related to certain non-GAAP disclosures (consolidated and segment operating income, operating income per diluted share, shareowners’ equity per share excluding accumulated other comprehensive income (loss), operating income return on average equity, and net income return on average equity).

All income per share results are presented on a diluted basis, unless otherwise noted.

CONSOLIDATED AND SEGMENT OPERATING INCOME AND OPERATING INCOME PER DILUTED SHARE

Consolidated and segment operating income and operating income per diluted share (hereinafter collectively referred to as “consolidated and segment operating income”) are defined as income before income tax excluding net realized investment gains (losses) (net of the related amortization of deferred policy acquisition costs (“DAC”) and value of businesses acquired (“VOBA”) and participating income from real estate ventures), and the cumulative effect of any change in accounting principle. Periodic settlements of derivatives associated with corporate debt and certain investments and annuity products are included in realized gains (losses), but are considered part of consolidated and segment operating income because the derivatives are used to mitigate risk in items affecting consolidated and segment operating income. Management believes that consolidated and segment operating income (loss) provides relevant and useful information to investors, as it represents the basis on which the performance of the Company’s business is internally assessed. Although the items excluded from consolidated and segment operating income may be significant components in understanding and assessing the Company’s overall financial performance, management believes that consolidated and segment operating income enhances an investor’s understanding of the Company’s results of operations by highlighting the income (loss) generally attributable to the normal, recurring operations of the Company’s business.

SHAREOWNERS’ EQUITY PER SHARE EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

As prescribed by GAAP, certain investments are recorded at their market values with the resulting unrealized gains (losses) affected by a related adjustment to DAC and VOBA, net of income tax, reported as a component of shareowners’ equity. The market values of fixed maturities increase or decrease as interest rates change. The Company believes that an insurance company’s shareowners’ equity per share may be difficult to analyze without disclosing the effects of recording accumulated other comprehensive income (loss), including unrealized gains (losses) on investments. Therefore, the Company reports the non-GAAP measure shareowners’ equity per share excluding accumulated other comprehensive income (loss), including unrealized gains (losses) on investments. This non-GAAP measure may be reconciled to the GAAP measure, shareowners’ equity per share by including accumulated other comprehensive income (loss), including unrealized gains (losses) on investments.

OPERATING INCOME RETURN ON AVERAGE EQUITY

Operating income return on average equity is a measure used by management to evaluate the Company’s performance. It is calculated by dividing operating income (as defined above) for a rolling twelve month period by the average ending balance of shareowners’ equity excluding accumulated other comprehensive income (loss) for the five most recent quarters.

NET INCOME RETURN ON AVERAGE EQUITY

Net income return on average equity is a measure used by management to evaluate the Company’s performance. It is calculated by dividing net income for a rolling twelve month period by the average ending balance of shareowners’ equity excluding accumulated other comprehensive income (loss) for the five most recent quarters.

Draft 11/3/2010

Reconciliation of Segment Operating Income (Loss) to Net Income available to PLC’s common shareowners

(Dollars In Thousands)

(Unaudited)

	3RD QTR			3RD QTR			9 MOS
	2009			2010			2009			2010

Life Marketing	$	26,544		$	30,868		$	106,233		$	107,301
Acquisitions	33,061			27,866			101,723			89,425
Annuities	16,075			22,704			36,995			41,496
Stable Value Products	14,339			8,339			51,522			30,345
Asset Protection	5,731			5,154			16,667			24,837
Corporate & Other	(22,826		)	405			(22,425		)	(15,350		)

Total Pre-tax operating income	72,924			95,336			290,715			278,054

Realized Investment Gains (Losses) - Investments	135,388			101,566			131,411			187,960
Realized Investment Gains (Losses) - Derivatives	(166,676		)	(89,828		)	(208,116		)	(193,004		)
Income Tax Expense	(14,051		)	(36,626		)	(73,533		)	(91,412		)

Net income available to PLC’s common shareowners	$	27,585		$	70,448		$	140,477		$	181,598

Draft 11/3/2010

Reconciliation of Operating Income per Diluted Share to Net Income Available to PLC’s Common Shareowners per Diluted Share

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS
	2009			2009			2010			2010			2010			2009			2010

OPERATING INCOME PER SHARE

Operating income per share-diluted	$	0.55		$	1.51		$	0.78		$	0.62		$	0.71		$	2.40		$	2.11
RIGL - Derivatives per share-diluted	(1.24		)	0.03			(0.24		)	(0.52		)	(0.67		)	(1.71		)	(1.43		)
RIGL - All Other Investments-diluted	1.01			(0.04		)	0.26			0.37			0.76			1.08			1.39
Net income available to PLC’s common shareowners per share-diluted	$	0.32		$	1.50		$	0.80		$	0.47		$	0.80		$	1.77		$	2.07

Draft 11/3/2010

Reconciliation of Total Protective Life Corporation’s Shareowners’ Equity per Share to Total Protective Life Corporation’s Shareowners’ Equity (Excl. AOCI) per share

(Unaudited)

	3RD QTR			4TH QTR			1ST QTR			2ND QTR		3RD QTR
	2009			2009			2010			2010		2010

PROTECTIVE LIFE CORPORATION’S SHAREOWNERS’ EQUITY PER SHARE
Total Protective Life Corporation’s Shareowners’ Equity	$	26.91		$	28.96		$	32.96		$	36.02	$	41.69
Less: Accumulated other comprehensive income (loss)	(4.39		)	(3.76		)	(0.65		)	2.07		7.03
Excluding accumulated other comprehensive income (loss)	$	31.30		$	32.72		$	33.61		$	33.95	$	34.66

Draft 11/3/2010

Calculation of Operating Income Return on Average Equity Rolling Twelve Months Ended September 30, 2010

(Dollars In Thousands)

(Unaudited)

	Three Months												Twelve Months
	12/31/2009			3/31/2010			6/30/2010			9/30/2010			9/30/2010
NUMERATOR:
Net income available to PLC’s common shareowners	$	131,011		$	69,779		$	41,371		$	70,448		$	312,609
Less:
Realized investment gains (losses), net of income tax
Investments	(6,251		)	23,420			33,089			67,062			117,320
Derivatives	2,692			(21,204		)	(45,806		)	(58,361		)	(122,679		)
Related amortization of DAC and VOBA, net of income tax	2,313			(140		)	(212		)	(1,044		)	917
Add back:
Derivative gains related to Corp. debt and investments, net of income tax	—			27			27			27			81
Operating Income	$	132,257		$	67,730		$	54,327		$	62,818		$	317,132

						Total
						Protective Life
						Corporation’s
	Total					Shareowners’
	Protective Life		Accumulated			Equity Excluding
	Corporation’s		Other			Accumulated Other
	Shareowners’		Comprehensive			Comprehensive
	Equity		Income (Loss)			Income (Loss)
DENOMINATOR:
September 30, 2009	$	2,302,799	$	(375,472	)	$	2,678,271
December 31, 2009	2,478,821		(321,169		)	2,799,990
March 31, 2010	2,821,033		(55,716		)	2,876,749
June 30, 2010	3,085,599		177,490			2,908,109
September 30, 2010	3,571,392		601,964			2,969,428
Total						$	14,232,547

Average						$	2,846,509

Operating Income Return on Average Equity						11.1		%

Draft 11/3/2010

Calculation of Operating Income Return on Average Equity Rolling Twelve Months Ended September 30, 2009

(Dollars In Thousands)

(Unaudited)

	Three Months												Twelve Months
	12/31/2008			3/31/2009			6/30/2009			9/30/2009			9/30/2009
NUMERATOR:
Net income (loss) available to PLC’s common shareowners	$	(15,913	)	$	22,135		$	90,757		$	27,585		$	124,564
Less:
Realized investment gains (losses), net of income tax
Investments	(60,407		)	(85,585		)	82,439			87,495			23,942
Derivatives	(10,574		)	47,675			(72,400		)	(108,339		)	(143,638		)
Related amortization of DAC and VOBA, net of income tax	(632		)	(51		)	612			507			436
Add back:
Derivative gains related to Corp. debt and investments, net of income tax	1,020			1,455			756			—			3,231
Operating Income	$	56,720		$	61,551		$	80,862		$	47,922		$	247,055

						Total
						Protective Life
						Corporation’s
	Total					Shareowners’
	Protective Life		Accumulated			Equity Excluding
	Corporation’s		Other			Accumulated Other
	Shareowners’		Comprehensive			Comprehensive
	Equity		Income (Loss)			Income (Loss)
DENOMINATOR:
September 30, 2008	$	1,524,655	$	(928,205	)	$	2,452,860
December 31, 2008	761,095		(1,667,056		)	2,428,151
March 31, 2009	783,178		(1,660,204		)	2,443,382
June 30, 2009	1,628,375		(1,031,719		)	2,660,094
September 30, 2009	2,302,799		(375,472		)	2,678,271
Total						$	12,662,758

Average						$	2,532,552

Operating Income Return on Average Equity						9.8		%

Draft 11/3/2010

Calculation of Net Income Available to PLC’s common shareowners Return on Average Equity Rolling Twelve Months Ended September 30, 2010

(Dollars In Thousands)

(Unaudited)

	Three Months								Twelve Months
	12/31/2009		3/31/2010		6/30/2010		9/30/2010		9/30/2010
NUMERATOR:
Net income available to PLC’s common shareowners	$	131,011	$	69,779	$	41,371	$	70,448	$	312,609

						Total
						Protective Life
						Corporation’s
	Total					Shareowners’
	Protective Life		Accumulated			Equity Excluding
	Corporation’s		Other			Accumulated Other
	Shareowners’		Comprehensive			Comprehensive
	Equity		Income (Loss)			Income (Loss)
DENOMINATOR:
September 30, 2009	$	2,302,799	$	(375,472	)	$	2,678,271
December 31, 2009	2,478,821		(321,169		)	2,799,990
March 31, 2010	2,821,033		(55,716		)	2,876,749
June 30, 2010	3,085,599		177,490			2,908,109
September 30, 2010	3,571,392		601,964			2,969,428
Total						$	14,232,547

Average						$	2,846,509

Net income available to PLC’s common shareowners Return on Average Equity						11.0		%

Draft 11/3/2010

Calculation of Net Income (Loss) available to PLC’s common shareowners Return on Average Equity Rolling Twelve Months Ended September 30, 2009

(Dollars In Thousands)

(Unaudited)

	Three Months									Twelve Months
	12/31/2008			3/31/2009		6/30/2009		9/30/2009		9/30/2009
NUMERATOR:
Net income (loss) available to PLC’s common shareowners	$	(15,913	)	$	22,135	$	90,757	$	27,585	$	124,564

						Total
						Protective Life
						Corporation’s
	Total					Shareowners’
	Protective Life		Accumulated			Equity Excluding
	Corporation’s		Other			Accumulated Other
	Shareowners’		Comprehensive			Comprehensive
	Equity		Income (Loss)			Income (Loss)
DENOMINATOR:
September 30, 2008	$	1,524,655	$	(928,205	)	$	2,452,860
December 31, 2008	761,095		(1,667,056		)	2,428,151
March 31, 2009	783,178		(1,660,204		)	2,443,382
June 30, 2009	1,628,375		(1,031,719		)	2,660,094
September 30, 2009	2,302,799		(375,472		)	2,678,271
Total						$	12,662,758

Average						$	2,532,552

Net income (loss) available to PLC’s common shareowners Return on Average Equity						4.9		%

Protective Life (PLPDZ) 8-KProtective Reports Results for the Third Quarter of 2010