Protective Life 8K Protective Reports First Quarter 2014 | PLPDZ 8 May 14

Exhibit 99.2

Draft 5/7/2014

Page 1

Quarterly Financial Highlights

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

Pre-tax Operating Income (Loss) (1)

Life Marketing	$	23,707		$	24,673		$	29,218		$	32,700		$	23,485		$	23,707		$	23,485
Acquisitions	34,377			29,435			29,429			60,762			60,996			34,377			60,996
Annuities	43,398			36,382			50,866			53,484			51,643			43,398			51,643
Stable Value Products	17,844			22,464			19,206			21,047			17,397			17,844			17,397
Asset Protection	6,081			7,384			6,827			6,503			6,369			6,081			6,369
Corporate & Other	(18,332		)	(2,483		)	(14,251		)	(5,496		)	(14,855		)	(18,332		)	(14,855		)
Total Pre-tax Operating Income	$	107,075		$	117,855		$	121,295		$	169,000		$	145,035		$	107,075		$	145,035

Balance Sheet Data

Total Assets	$	58,573,487		$	58,162,886		$	58,460,511		$	68,784,107		$	70,030,975
Total Shareowners’ Equity	$	4,541,292		$	3,837,991		$	3,638,532		$	3,714,794		$	4,265,066
Total Shareowners’ Equity (excluding accumulated other comprehensive income (loss)) (2)	$	2,941,969		$	3,036,797		$	3,112,444		$	3,220,728		$	3,288,302

Stock Data

Closing Price	$	35.80		$	38.41		$	42.55		$	50.66		$	52.59
Average Shares Outstanding
Basic	79,139,392			79,404,770			79,492,274			79,540,583			79,608,461			79,139,392			79,608,461
Diluted	80,706,744			81,087,238			80,852,078			81,053,787			80,872,152			80,706,744			80,872,152

(1) “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”.

(2) “Total Shareowners’ equity excluding accumulated other comprehensive income (loss)” is a non-GAAP financial measure. “Total Shareowners’ equity” is a GAAP financial measure to which “Total Shareowners’ equity excluding accumulated other comprehensive income (loss)” may be compared. See Page 5 for a reconciliation of “Total Shareowners’ equity excluding accumulated other comprehensive income (loss)” to “Total Shareowners’ equity”.

Draft 5/7/2014

Page 2

Financial Strength Ratings as of March 31, 2014

	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-	—	—	—
MONY Life Insurance Company	A+	A	A+	A2

Draft 5/7/2014

Page 3

Consolidated Statements of Income

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

REVENUES
Gross premiums and policy fees	$	726,847		$	756,331		$	657,218		$	841,255		$	815,896		$	726,847		$	815,896
Reinsurance ceded	(335,350		)	(390,490		)	(270,730		)	(380,625		)	(327,713		)	(335,350		)	(327,713		)
Net premiums and policy fees	391,497			365,841			386,488			460,630			488,183			391,497			488,183
Net investment income	457,634			466,220			454,275			539,952			538,163			457,634			538,163
RIGL - derivatives	7,385			143,881			41,326			(4,461		)	(105,350		)	7,385			(105,350		)
RIGL - all other investments	(4,145		)	(109,978		)	(19,508		)	10,094			72,114			(4,145		)	72,114

OTTI losses	(1,340		)	(1,789		)	(6,635		)	(1,177		)	(423		)	(1,340		)	(423		)
Portion recognized in OCI (before taxes)	(3,244		)	(2,211		)	(2,046		)	(4,005		)	(1,168		)	(3,244		)	(1,168		)
Net impairment losses recognized in earnings	(4,584		)	(4,000		)	(8,681		)	(5,182		)	(1,591		)	(4,584		)	(1,591		)
Other income	85,027			94,392			98,794			116,102			99,039			85,027			99,039
Total revenues	932,814			956,356			952,694			1,117,135			1,090,558			932,814			1,090,558

BENEFITS & EXPENSES
Benefits and settlement expenses	581,880			557,866			624,577			715,434			728,519			581,880			728,519
Amortization of deferred policy acquisition costs and value of business acquired	52,239			74,946			22,446			43,267			55,582			52,239			55,582
Other operating expenses	138,061			123,661			121,136			141,851			138,097			138,061			138,097
Interest expense - subsidiaries	11,105			11,511			12,169			12,707			12,599			11,105			12,599
Interest expense - holding company - other debt	23,434			22,891			21,777			21,796			22,088			23,434			22,088
Interest expense - holding company - subordinated debt	8,468			8,468			8,468			8,468			8,468			8,468			8,468
Total benefits and expenses	815,187			799,343			810,573			943,523			965,353			815,187			965,353

INCOME BEFORE INCOME TAX	117,627			157,013			142,121			173,612			125,205			117,627			125,205
Income tax expense	39,336			53,814			49,060			54,699			41,566			39,336			41,566
NET INCOME	$	78,291		$	103,199		$	93,061		$	118,913		$	83,639		$	78,291		$	83,639

PER SHARE DATA FOR QUARTER
Operating income - diluted (1)	$	0.89		$	0.96		$	0.98		$	1.43		$	1.19
RIGL - derivatives	0.16			1.27			0.46			0.10			(0.71		)
RIGL - all other investments	(0.08		)	(0.96		)	(0.29		)	(0.06		)	0.55
Net income-diluted	$	0.97		$	1.27		$	1.15		$	1.47		$	1.03
Average shares outstanding-diluted	80,706,744			81,087,238			80,852,078			81,053,787			80,872,152
Dividends paid	$	0.18		$	0.20		$	0.20		$	0.20		$	0.20
PER SHARE DATA FOR YTD
Operating income - diluted (1)	$	0.89		$	1.84		$	2.82		$	4.26		$	1.19
RIGL - derivatives	0.16			1.44			1.90			1.99			(0.71		)
RIGL - all other investments	(0.08		)	(1.04		)	(1.33		)	(1.39		)	0.55
Net income - diluted	$	0.97		$	2.24		$	3.39		$	4.86		$	1.03
Average shares outstanding - diluted	80,706,744			80,898,042			80,882,552			80,925,713			80,872,152
Dividends paid	$	0.18		$	0.38		$	0.58		$	0.78		$	0.20

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

Draft 5/7/2014

Page 4

Consolidated Balance Sheets

(Dollars In Thousands)	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR
(Unaudited)	2013		2013		2013		2013		2014
ASSETS

Fixed maturities, at fair value	$	30,065,491	$	28,922,966	$	28,323,215	$	34,815,931	$	36,076,644
Fixed maturities, at amortized cost	315,000		335,000		350,000		365,000		385,000
Equity securities	415,176		446,518		461,231		646,027		716,985
Mortgage loans	4,835,917		4,773,709		4,794,924		5,486,417		5,390,844
Investment real estate	18,952		16,178		18,750		20,413		20,351
Policy loans	862,202		855,780		856,333		1,815,744		1,793,110
Other long-term investments	348,394		429,987		482,367		521,811		509,766
Long-term investments	36,861,132		35,780,138		35,286,820		43,671,343		44,892,700
Short-term investments	161,506		172,011		216,224		134,146		194,299
Total investments	37,022,638		35,952,149		35,503,044		43,805,489		45,086,999
Cash	275,103		255,712		354,449		466,542		407,532
Accrued investment income	361,463		365,483		364,233		465,333		490,723
Accounts and premiums receivable	104,539		96,819		76,138		127,830		128,899
Reinsurance receivable	5,842,124		5,832,194		5,744,801		6,175,115		6,194,131
Deferred policy acquisition costs and value of business acquired	3,262,029		3,414,988		3,307,513		3,584,199		3,405,259
Goodwill	107,786		107,012		106,237		105,463		104,688
Property and equipment, net	48,590		49,492		51,806		52,403		53,611
Other assets	272,760		305,752		343,015		426,677		420,604
Current/Deferred income tax	—		—		23,970		—		—
Assets related to separate accounts
Variable annuity	10,670,833		11,162,856		11,921,925		12,791,438		12,946,329
Variable universal life	605,622		620,429		663,380		783,618		792,200

TOTAL ASSETS	$	58,573,487	$	58,162,886	$	58,460,511	$	68,784,107	$	70,030,975

Draft 5/7/2014

Page 5

Consolidated Balance Sheets - Continued

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR
(Unaudited)	2013			2013			2013			2013			2014

LIABILITIES
Policy liabilities and accruals
Future policy benefits and claims	$	21,793,320		$	21,932,062		$	22,029,491		$	29,699,025		$	29,811,041
Unearned premiums	1,426,496			1,454,003			1,512,909			1,549,815			1,560,585
Stable value product account balances	2,544,609			2,579,172			2,531,262			2,559,552			2,537,504
Annuity account balances	10,524,393			10,509,829			10,431,938			11,207,553			11,113,637
Other policyholders’ funds	569,533			577,821			602,978			1,214,380			1,301,773
Repurchase program borrowings	300,000			340,000			100,000			350,000			475,000
Other liabilities	1,375,962			1,225,042			1,177,807			1,142,887			1,227,464
Deferred income taxes	1,690,052			1,318,175			1,239,796			1,069,530			1,310,111
Income tax payable	4,782			13			—			13,474			57,235
Non-recourse funding obligations	596,000			604,900			619,900			562,448			582,437
Debt	1,390,000			1,460,000			1,450,000			1,585,000			1,510,000
Subordinated debt securities	540,593			540,593			540,593			540,593			540,593
Liabilities related to separate accounts
Variable annuity	10,670,833			11,162,856			11,921,925			12,791,438			12,946,329
Variable universal life	605,622			620,429			663,380			783,618			792,200
TOTAL LIABILITIES	54,032,195			54,324,895			54,821,979			65,069,313			65,765,909

SHAREOWNERS’ EQUITY
Common stock	44,388			44,388			44,388			44,388			44,388
Additional paid-in-capital	599,514			606,523			602,072			606,934			601,367
Treasury stock	(203,698		)	(203,385		)	(200,637		)	(200,416		)	(195,192		)
Retained earnings	2,501,765			2,589,271			2,666,621			2,769,822			2,837,739
Accumulated other comprehensive income (loss)	1,599,323			801,194			526,088			494,066			976,764
TOTAL SHAREOWNERS’ EQUITY	4,541,292			3,837,991			3,638,532			3,714,794			4,265,066
TOTAL LIABILITIES AND SHAREOWNERS’ EQUITY	$	58,573,487		$	58,162,886		$	58,460,511		$	68,784,107		$	70,030,975

SHAREOWNERS’ EQUITY PER SHARE
Total Shareowners’ Equity	$	57.89		$	48.91		$	46.31		$	47.28		$	54.09
Less: Accumulated other comprehensive income (loss)	20.39			10.21			6.69			6.29			12.38
Excluding accumulated other comprehensive income (loss) (1)	$	37.50		$	38.70		$	39.62		$	40.99		$	41.71

Total Shareowners’ Equity	$	4,541,292		$	3,837,991		$	3,638,532		$	3,714,794		$	4,265,066
Less: Accumulated other comprehensive income (loss)	1,599,323			801,194			526,088			494,066			976,764
Total Shareowners’ Equity (excluding accumulated other comprehensive income (loss)) (1)	$	2,941,969		$	3,036,797		$	3,112,444		$	3,220,728		$	3,288,302

Common shares outstanding	78,449,071			78,465,053			78,562,547			78,577,446			78,845,837
Treasury Stock shares	10,327,889			10,311,907			10,214,413			10,199,514			9,931,123

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

Draft 5/7/2014

Page 6

Calculation of Operating Earnings Per Share

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

CALCULATION OF NET INCOME PER SHARE

Net income	$	78,291		$	103,199		$	93,061		$	118,913		$	83,639		$	78,291		$	83,639

Average shares outstanding - basic	79,139,392			79,404,770			79,492,274			79,540,583			79,608,461			79,139,392			79,608,461
Average shares outstanding - diluted	80,706,744			81,087,238			80,852,078			81,053,787			80,872,152			80,706,744			80,872,152

Net income-basic	$	0.99		$	1.30		$	1.17		$	1.50		$	1.05		$	0.99		$	1.05
Net income-diluted	$	0.97		$	1.27		$	1.15		$	1.47		$	1.03		$	0.97		$	1.03

Income from continuing operations	$	78,291		$	103,199		$	93,061		$	118,913		$	83,639		$	78,291		$	83,639

EPS (basic)	$	0.99		$	1.30		$	1.17		$	1.50		$	1.05		$	0.99		$	1.05
EPS (diluted)	$	0.97		$	1.27		$	1.15		$	1.47		$	1.03		$	0.97		$	1.03

CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE

RIGL - derivatives	$	7,385		$	143,881		$	41,326		$	(4,461	)	$	(105,350	)	$	7,385		$	(105,350	)
VA GMWB economic cost	12,923			14,588			15,782			16,444			16,987			12,923			16,987
RIGL - all other investments	(8,729		)	(113,978		)	(28,189		)	4,912			70,523			(8,729		)	70,523
Amortization related to DAC/VOBA and benefits and settlement expenses	(1,027		)	(5,333		)	(8,093		)	(12,283		)	(1,990		)	(1,027		)	(1,990		)
	10,552			39,158			20,826			4,612			(19,830		)	10,552			(19,830		)
Tax effect	(3,693		)	(13,706		)	(7,289		)	(1,614		)	6,941			(3,693		)	6,941
	$	6,859		$	25,452		$	13,537		$	2,998		$	(12,889	)	$	6,859		$	(12,889	)

RIGL - derivatives per share-diluted	$	0.16		$	1.27		$	0.46		$	0.10		$	(0.71	)	$	0.16		$	(0.71	)
RIGL - all other investments per share-diluted	$	(0.08	)	$	(0.96	)	$	(0.29	)	$	(0.06	)	$	0.55		$	(0.08	)	$	0.55

OPERATING INCOME PER SHARE (1)

Net income-diluted	$	0.97		$	1.27		$	1.15		$	1.47		$	1.03		$	0.97		$	1.03
Less: RIGL - derivatives per share-diluted	0.16			1.27			0.46			0.10			(0.71		)	0.16			(0.71		)
Less: RIGL - all other investments per share-diluted	(0.08		)	(0.96		)	(0.29		)	(0.06		)	0.55			(0.08		)	0.55
Operating income per share-diluted	$	0.89		$	0.96		$	0.98		$	1.43		$	1.19		$	0.89		$	1.19

NET OPERATING INCOME (1)

Net income	$	78,291		$	103,199		$	93,061		$	118,913		$	83,639		$	78,291		$	83,639
Less: RIGL - derivatives net of tax	13,200			103,004			37,120			7,789			(57,436		)	13,200			(57,436		)
Less: RIGL - all other investments net of tax and amortization	(6,341		)	(77,552		)	(23,583		)	(4,791		)	44,547			(6,341		)	44,547
Net operating income	$	71,432		$	77,747		$	79,524		$	115,915		$	96,528		$	71,432		$	96,528

PRE-TAX OPERATING INCOME (2)

Income before income tax and discontinued operations	$	117,627		$	157,013		$	142,121		$	173,612		$	125,205		$	117,627		$	125,205
Less: RIGL - derivatives	7,385			143,881			41,326			(4,461		)	(105,350		)	7,385			(105,350		)
Less: VA GMWB economic cost	12,923			14,588			15,782			16,444			16,987			12,923			16,987
Less: RIGL - all other investments	(8,729		)	(113,978		)	(28,189		)	4,912			70,523			(8,729		)	70,523
Less: Amortization related to DAC/VOBA and benefits and settlement expenses	(1,027		)	(5,333		)	(8,093		)	(12,283		)	(1,990		)	(1,027		)	(1,990		)
Pre-tax operating income	$	107,075		$	117,855		$	121,295		$	169,000		$	145,035		$	107,075		$	145,035

(1) “Net Operating Income” and “Operating Income Per Share” are non-GAAP financial measures. “Net Income” and “Net Income Per Share” are GAAP financial measures to which “Net Operating Income” and “Operating Income Per Share” may be compared.

(2) “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 5/7/2014

Page 7

Invested Asset Summary

(Dollars In Millions)	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR
(Unaudited)	2013		2013		2013		2013		2014

Total Portfolio

Fixed Maturities	$	30,380.5	$	29,258.0	$	28,673.2	$	35,180.9	$	36,461.6	81	%
Mortgage Loans	4,835.9		4,773.7		4,794.9		5,486.4		5,390.8		12	%
Investment Real Estate	18.9		16.2		18.8		20.4		20.4		0	%
Equity Securities	415.2		446.5		461.2		646.0		717.0		2	%
Policy Loans	862.2		855.8		856.3		1,815.8		1,793.1		4	%
Short-Term Investments	161.5		172.0		216.2		134.2		194.3		0	%
Other Long-Term Investments	348.4		430.0		482.4		521.8		509.8		1	%
Total Invested Assets	$	37,022.6	$	35,952.2	$	35,503.0	$	43,805.5	$	45,087.0	100	%

Draft 5/7/2014

Page 8

Invested Asset Summary - Fixed Income

(Dollars In Millions)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR
(Unaudited)	2013			2013			2013			2013			2014

Fixed Income

Corporate Bonds	$	22,417.5		$	21,610.4		$	21,253.0		$	27,286.2		$	28,379.7		78	%
Residential Mortgage-Backed Securities	2,072.4			1,907.1			1,772.4			1,756.0			1,742.5			5	%
Commercial Mortgage-Backed Securities	1,093.2			1,113.8			1,080.6			1,129.2			1,183.5			3	%
Other Asset-Backed Securities	1,109.0			1,181.4			1,138.9			1,160.2			1,146.1			3	%
U.S. Government-related Securities	1,503.8			1,382.5			1,417.3			1,704.1			1,719.6			5	%
Other Government-related Securities	152.2			122.9			98.6			108.5			106.7			0	%
States, Municipals and Political Subdivisions	1,717.4			1,604.9			1,562.4			1,671.7			1,798.5			5	%
Other	315.0			335.0			350.0			365.0			385.0			1	%
Total Fixed Income Portfolio	$	30,380.5		$	29,258.0		$	28,673.2		$	35,180.9		$	36,461.6		100	%

Fixed Income - Quality

AAA	14.4		%	14.4		%	14.4		%	12.5		%	12.2		%
AA	7.0		%	6.9		%	6.9		%	7.0		%	7.1		%
A	31.5		%	30.9		%	30.3		%	32.2		%	32.6		%
BBB	39.6		%	40.6		%	41.0		%	41.7		%	41.7		%
Below investment grade	6.5		%	6.1		%	6.2		%	5.6		%	5.3		%
Not rated	1.0		%	1.1		%	1.2		%	1.0		%	1.1		%
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Note: Prior period ratings and investment classifications have been restated to be consistent with current quarter presentation.

Draft 5/7/2014

Page 9

Fixed Maturities by NAIC Rating

STAT Carry Value % of Total

	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR
(Unaudited)	2013		2013		2013		2013		2014

NAIC Rating
1	55.78	%	54.98	%	53.87	%	53.24	%	53.57	%
2	38.74	%	39.67	%	39.57	%	41.27	%	41.09	%
3	3.22	%	3.04	%	4.01	%	3.60	%	3.56	%
4	0.58	%	0.64	%	0.82	%	0.53	%	0.43	%
5	0.46	%	0.39	%	0.38	%	0.25	%	0.19	%
6	0.09	%	0.09	%	0.09	%	0.04	%	0.04	%
Not Rated (1)	1.13	%	1.19	%	1.26	%	1.07	%	1.12	%

	100.00	%	100.00	%	100.00	%	100.00	%	100.00	%

Below investment grade (using NAIC 3-6)	4.35	%	4.16	%	5.30	%	4.42	%	4.22	%

Note: NAIC Ratings reflect statutory carrying values

(1) Special purpose vehicle note held in Golden Gate V

Draft 5/7/2014

Page 10

Invested Asset Summary - Mortgages

(Dollars In Millions)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR
(Unaudited)	2013			2013			2013			2013			2014

Mortgage Loans - Type

Retail	68.0		%	67.8		%	67.1		%	60.6		%	60.5		%
Apartments	8.7		%	9.0		%	9.0		%	11.8		%	12.1		%
Office Buildings	13.9		%	13.8		%	13.6		%	14.9		%	14.7		%
Warehouses	7.3		%	7.4		%	8.2		%	7.4		%	7.2		%
Miscellaneous	2.1		%	2.0		%	2.1		%	5.3		%	5.5		%
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Delinquent Loans & Foreclosed Properties

60 Days Past Due	$	1.7		$	3.0		$	—		$	—		$	6.2
90 Days Past Due	19.5			14.6			9.3			2.2			2.2
Foreclosed Real Estate	—			—			3.9			10.5			—
	$	21.2		$	17.6		$	13.2		$	12.7		$	8.4	(1)

% of Commercial Mortgage Loan Portfolio	0.4		%	0.4		%	0.3		%	0.2		%	0.2		%

(1) Includes $2.2 million of nonperforming loans subject to a pooling and servicing agreement as of March 31, 2014.

Draft 5/7/2014

Page 11

Invested Asset Summary - Trading Portfolios

(Dollars In Millions)	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR
(Unaudited)	2013		2013		2013		2013		2014

Trading Portfolio Composition (excl. Modco Trading Portfolio)

Rating
AAA	$	0.1	$	—	$	—	$	—	$	—
AA	—		—		—		—		—
A	—		—		—		—		—
BBB	—		—		—		—		—
Below investment grade	12.8		11.0		9.8		9.4		9.0
Total	$	12.9	$	11.0	$	9.8	$	9.4	$	9.0

Modco Trading Portfolio

Rating
AAA	$	546.7	$	440.1	$	430.9	$	419.9	$	427.4
AA	233.2		286.0		265.5		266.2		271.2
A	828.2		847.1		836.2		854.0		869.0
BBB	992.5		922.8		920.2		924.5		941.2
Below investment grade	354.7		345.5		320.2		324.5		320.0
Short-term investments	110.6		91.6		106.4		52.4		71.4
Total	$	3,065.9	$	2,933.1	$	2,879.4	$	2,841.5	$	2,900.2

Note: Prior period ratings have been restated to be consistent with current quarter presentation.

Draft 5/7/2014

Page 12

Invested Asset Summary - MBS - Alt-A

Mortgage-backed Securities Collateralized by Alt-A Mortgage Loans as of March 31, 2014:

(Dollars In Millions)	2010 and
(Unaudited)	Prior		2011		2012		2013		2014		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
A	$	5.0	$	—	$	—	$	—	$	—	$	5.0
BBB	1.4		—		—		—		—		1.4
Below investment grade	392.5		—		—		—		—		392.5
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	398.9	$	—	$	—	$	—	$	—	$	398.9

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

Rating
A	$	0.1	$	—	$	—	$	—	$	—	$	0.1
BBB	0.1		—		—		—		—		0.1
Below investment grade	41.0		—		—		—		—		41.0
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	41.2	$	—	$	—	$	—	$	—	$	41.2

Draft 5/7/2014

Page 13

Invested Asset Summary - MBS - Prime

Mortgage-backed Securities Collateralized by Prime Loans as of March 31, 2014:

(Dollars In Millions)	2010 and
(Unaudited)	Prior		2011		2012			2013			2014			Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	549.2	$	315.0	$	26.8		$	147.2		$	23.0		$	1,061.2
AA	0.2		—		—			—			2.8			3.0
A	12.3		—		—			—			—			12.3
BBB	7.5		—		—			—			—			7.5
Below investment grade	257.6		—		—			—			—			257.6
Total mortgage-backed securities collateralized by prime loans	$	826.8	$	315.0	$	26.8		$	147.2		$	25.8		$	1,341.6

Includes $937.3 million of agency mortgage backed securities.

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

Rating
AAA	$	23.2	$	8.8	$	(0.5	)	$	(1.7	)	$	(2.1	)	$	27.7
AA	—		—		—			—			—			—
A	0.8		—		—			—			—			0.8
BBB	0.5		—		—			—			—			0.5
Below investment grade	12.3		—		—			—			—			12.3
Total mortgage-backed securities collateralized by prime loans	$	36.8	$	8.8	$	(0.5	)	$	(1.7	)	$	(2.1	)	$	41.3

Draft 5/7/2014

Page 14

Invested Asset Summary - CMBS

Commercial Mortgage-backed Securities as of March 31, 2014:

(Dollars In Millions)	2010 and
(Unaudited)	Prior		2011		2012			2013			2014		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	148.3	$	210.3	$	303.4		$	138.3		$	20.7	$	821.0
AA	50.2		37.9		41.6			29.2			17.5		176.4
A	68.9		51.4		13.3			18.9			—		152.5
BBB	33.6		—		—			—			—		33.6
Total commercial mortgage-backed securities	$	301.0	$	299.6	$	358.3		$	186.4		$	38.2	$	1,183.5

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

Rating
AAA	$	8.2	$	17.2	$	(2.0	)	$	(2.1	)	$	—	$	21.3
AA	2.5		2.8		(2.4		)	(0.9		)	—		2.0
A	2.4		—		(1.1		)	(1.5		)	—		(0.2		)
BBB	0.5		—		—			—			—		0.5
Total commercial mortgage-backed securities	$	13.6	$	20.0	$	(5.5	)	$	(4.5	)	$	—	$	23.6

Draft 5/7/2014

Page 15

Invested Asset Summary - ABS(1)

Other Asset-backed Securities(1) as of March 31, 2014:

(Dollars In Millions)	2010 and
(Unaudited)	Prior			2011		2012			2013			2014		Total

Estimated Fair Value of Security by Year of Security Origination

Rating
AAA	$	478.0		$	15.7	$	32.3		$	19.0		$	6.5	$	551.5
AA	153.9			—		63.4			—			—		217.3
A	62.0			51.1		87.3			33.6			—		234.0
BBB	6.4			—		—			—			—		6.4
Below investment grade	136.9			—		—			—			—		136.9
Total other asset-backed securities	$	837.2		$	66.8	$	183.0		$	52.6		$	6.5	$	1,146.1

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

Rating
AAA	$	(38.4	)	$	0.9	$	(0.1	)	$	0.1		$	—	$	(37.5	)
AA	(14.8		)	—		(0.4		)	—			—		(15.2		)
A	6.0			3.7		0.3			(0.1		)	—		9.9
BBB	0.2			—		—			—			—		0.2
Below investment grade	11.5			—		—			—			—		11.5
Total other asset-backed securities	$	(35.5	)	$	4.6	$	(0.2	)	$	—		$	—	$	(31.1	)

(1) Excludes Residential and Commercial mortgage-backed securities

Draft 5/7/2014

Page 16

Life Marketing Quarterly Trends

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

REVENUES
Gross premiums and policy fees	$	418,705		$	442,338		$	356,809		$	416,280		$	412,111		$	418,705		$	412,111
Reinsurance ceded	(207,662		)	(255,180		)	(145,075		)	(230,106		)	(194,019		)	(207,662		)	(194,019		)
Net premiums and policy fees	211,043			187,158			211,734			186,174			218,092			211,043			218,092
Net investment income	127,248			130,054			129,935			134,428			133,963			127,248			133,963
Other income	29,335			29,809			32,144			31,867			32,513			29,335			32,513
Total operating revenues	367,626			347,021			373,813			352,469			384,568			367,626			384,568
RIGL - investments	—			—			3,603			274			198			—			198
RIGL - derivatives	—			—			—			—			—			—			—
Total revenues	367,626			347,021			377,416			352,743			384,766			367,626			384,766

BENEFITS & EXPENSES
Benefits and settlement expenses	280,766			256,073			330,156			275,624			293,805			280,766			293,805
Amortization of deferred policy acquisition costs and value of business acquired	14,022			27,066			(24,284		)	8,034			24,032			14,022			24,032
Other operating expenses	49,131			39,209			38,723			36,111			43,246			49,131			43,246
Operating benefits and expenses	343,919			322,348			344,595			319,769			361,083			343,919			361,083
Amortization related to benefits and settlement expenses	—			—			483			30			5			—			5
Amortization of DAC/VOBA related to realized gains (losses) - investments (1)	—			—			819			117			29			—			29
Total benefits and expenses	343,919			322,348			345,897			319,916			361,117			343,919			361,117

INCOME BEFORE INCOME TAX	23,707			24,673			31,519			32,827			23,649			23,707			23,649

Adjustments to Reconcile to Operating Income:
Less: RIGL	—			—			3,603			274			198			—			198
Less: amortization related to benefits and settlement expenses	—			—			(483		)	(30		)	(5		)	—			(5		)
Less: Related amortization of DAC/VOBA (1)	—			—			(819		)	(117		)	(29		)	—			(29		)

PRE-TAX OPERATING INCOME	$	23,707		$	24,673		$	29,218		$	32,700		$	23,485		$	23,707		$	23,485

Life Marketing Key Data

	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR		3 MOS
	2013		2013		2013		2013		2014		2013		2014

SALES BY PRODUCT
Traditional	$	292	$	409	$	390	$	202	$	149	$	292	$	149
Universal life	46,995		44,181		32,261		29,991		28,181		46,995		28,181
Bank-owned life insurance	—		—		—		—		—		—		—
Total	$	47,287	$	44,590	$	32,651	$	30,193	$	28,330	$	47,287	$	28,330

SALES BY DISTRIBUTION
Independent agents	$	31,537	$	31,108	$	23,395	$	22,140	$	21,515	$	31,537	$	21,515
Stockbrokers/banks	15,303		12,920		8,608		7,512		6,224		15,303		6,224
BOLI/other	447		562		648		541		591		447		591
Total	$	47,287	$	44,590	$	32,651	$	30,193	$	28,330	$	47,287	$	28,330

AVERAGE LIFE INSURANCE IN-FORCE
Traditional	$	437,245,336	$	430,900,880	$	423,831,748	$	417,123,348	$	411,206,813	$	437,245,336	$	411,206,813
Universal life	91,692,734		101,045,737		109,933,560		117,217,198		124,300,639		91,692,734		124,300,639
Total	$	528,938,070	$	531,946,617	$	533,765,308	$	534,340,546	$	535,507,452	$	528,938,070	$	535,507,452

AVERAGE ACCOUNT VALUES
Universal life	$	6,726,549	$	6,866,731	$	7,003,612	$	7,064,117	$	7,109,742	$	6,726,549	$	7,109,742
Variable universal life	411,880		446,231		468,595		503,897		529,816		411,880		529,816
Total	$	7,138,429	$	7,312,962	$	7,472,207	$	7,568,014	$	7,639,558	$	7,138,429	$	7,639,558

(1) During the third quarter of 2013, we began allocating realized gains and losses, associated amortization of DAC, and benefits and settlement expenses to certain of our segments to better reflect the economics of the investments supporting these segments. Prior year realized gains and losses are not comparable to the current year presentation.

Draft 5/7/2014

Page 17

Acquisitions Quarterly Trends

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

REVENUES
Gross premiums and policy fees	$	208,726		$	208,194		$	194,379		$	317,826		$	295,830		$	208,726		$	295,830
Reinsurance ceded	(96,605		)	(102,654		)	(92,970		)	(117,419		)	(100,369		)	(96,605		)	(100,369		)
Net premiums and policy fees	112,121			105,540			101,409			200,407			195,461			112,121			195,461
Net investment income	134,669			134,686			133,695			214,248			216,102			134,669			216,102
Other income	1,014			1,015			1,004			3,891			4,061			1,014			4,061
Total operating revenues	247,804			241,241			236,108			418,546			415,624			247,804			415,624
RIGL - investments	(14,043		)	(124,691		)	(24,992		)	3,661			71,115			(14,043		)	71,115
RIGL - derivatives	16,726			145,143			28,951			12,125			(59,791		)	16,726			(59,791		)
Total revenues	250,487			261,693			240,067			434,332			426,948			250,487			426,948

BENEFITS & EXPENSES
Benefits and settlement expenses	179,449			177,901			173,423			308,843			308,364			179,449			308,364
Amortization of deferred policy acquisition costs and value of business acquired	18,213			18,661			18,030			16,932			18,062			18,213			18,062
Other operating expenses	15,765			15,244			15,226			32,009			28,202			15,765			28,202
Operating benefits and expenses	213,427			211,806			206,679			357,784			354,628			213,427			354,628
Amortization related to benefits and settlement expenses	—			—			104			11,666			7,500			—			7,500
Amortization of DAC/VOBA related to realized gains (losses) - investments	173			943			398			(588		)	510			173			510
Total benefits and expenses	213,600			212,749			207,181			368,862			362,638			213,600			362,638

INCOME BEFORE INCOME TAX	36,887			48,944			32,886			65,470			64,310			36,887			64,310

Adjustments to Reconcile to Operating Income:
Less: RIGL	2,683			20,452			3,959			15,786			11,324			2,683			11,324
Less: amortization related to benefits and settlement expenses	—			—			(104		)	(11,666		)	(7,500		)	—			(7,500		)
Less: Related amortization of DAC/VOBA	(173		)	(943		)	(398		)	588			(510		)	(173		)	(510		)

PRE-TAX OPERATING INCOME	$	34,377		$	29,435		$	29,429		$	60,762		$	60,996		$	34,377		$	60,996

Draft 5/7/2014

Page 18

Annuities Quarterly Trends

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

REVENUES
Gross premiums and policy fees	$	28,552		$	32,965		$	34,870		$	35,930		$	36,272		$	28,552		$	36,272
Reinsurance ceded	—			—			—			—			—			—			—
Net premiums and policy fees	28,552			32,965			34,870			35,930			36,272			28,552			36,272
Net investment income	118,557			116,789			116,699			116,277			117,466			118,557			117,466
RIGL - derivatives	(12,923		)	(14,588		)	(15,782		)	(16,444		)	(16,987		)	(12,923		)	(16,987		)
Other income	26,795			30,600			33,295			34,821			35,430			26,795			35,430
Total operating revenues	160,981			165,766			169,082			170,584			172,181			160,981			172,181
RIGL - investments	1,773			8,218			236			(1,809		)	609			1,773			609
RIGL - derivatives, net of economic cost	2,175			12,041			26,987			(1,482		)	(28,133		)	2,175			(28,133		)
Total Revenues	164,929			186,025			196,305			167,293			144,657			164,929			144,657

BENEFITS & EXPENSES
Benefits and settlement expenses	80,671			82,170			80,963			77,652			77,859			80,671			77,859
Amortization of deferred policy acquisition costs and value of business acquired	10,654			15,763			11,246			10,544			14,372			10,654			14,372
Other operating expenses	26,258			31,451			26,007			28,904			28,307			26,258			28,307
Operating benefits and expenses	117,583			129,384			118,216			117,100			120,538			117,583			120,538
Amortization related to benefits and settlement expenses	(601		)	(255		)	(2,276		)	1,096			2,233			(601		)	2,233
Amortization of DAC related to realized gains (losses) - investments	1,455			4,645			8,565			(38		)	(8,287		)	1,455			(8,287		)
Total benefits and expenses	118,437			133,774			124,505			118,158			114,484			118,437			114,484

INCOME BEFORE INCOME TAX	46,492			52,251			71,800			49,135			30,173			46,492			30,173

Adjustments to Reconcile to Operating Income:
Less: RIGL - investments	1,773			8,218			236			(1,809		)	609			1,773			609
Less: RIGL - derivatives, net of economic cost	2,175			12,041			26,987			(1,482		)	(28,133		)	2,175			(28,133		)
Less: amortization related to benefits and settlement expenses	601			255			2,276			(1,096		)	(2,233		)	601			(2,233		)
Less: related amortization of DAC	(1,455		)	(4,645		)	(8,565		)	38			8,287			(1,455		)	8,287

PRE-TAX OPERATING INCOME	$	43,398		$	36,382		$	50,866		$	53,484		$	51,643		$	43,398		$	51,643

Annuities Key Data

	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR			3 MOS
	2013		2013		2013		2013		2014			2013		2014

SALES
Variable Annuity	$	579,698	$	718,884	$	357,484	$	210,428	$	180,205		$	579,698	$	180,205
Immediate Annuity	10,112		15,080		17,110		15,715		12,272			10,112		12,272
Single Premium Deferred Annuity	103,590		93,385		40,764		27,487		15,767			103,590		15,767
Market Value Adjusted Annuity	1,333		2,986		13,459		12,432		12,065			1,333		12,065
Fixed Indexed Annuity	318		26,647		109,381		203,329		196,050			318		196,050
Total	$	695,051	$	856,982	$	538,198	$	469,391	$	416,359		$	695,051	$	416,359

PRE-TAX OPERATING INCOME (LOSS)
Variable Annuity	$	25,877	$	23,812	$	32,929	$	35,268	$	33,145		$	25,877	$	33,145
Fixed Annuity	17,521		12,570		17,937		18,216		19,747			17,521		19,747
Other	—		—		—		—		(1,249		)	—		(1,249		)
Total	$	43,398	$	36,382	$	50,866	$	53,484	$	51,643		$	43,398	$	51,643

DEPOSIT BALANCE
VA Fixed Annuity	$	470,656	$	483,958	$	398,150	$	292,297	$	230,679
VA Separate Account Annuity	10,078,475		10,594,528		11,323,019		12,024,883		12,198,030
Sub-total	10,549,131		11,078,486		11,721,169		12,317,180		12,428,709
Fixed Annuity	7,878,568		7,865,892		7,899,040		7,983,406		7,888,750
Total	$	18,427,699	$	18,944,378	$	19,620,209	$	20,300,586	$	20,317,459

Draft 5/7/2014

Page 19

Stable Value Products Quarterly Trends

(Dollars In Thousands)	1ST QTR		2ND QTR			3RD QTR			4TH QTR			1ST QTR		3 MOS
(Unaudited)	2013		2013			2013			2013			2014		2013		2014

REVENUES
Net investment income	$	30,074	$	33,651		$	29,478		$	30,595		$	27,778	$	30,074	$	27,778
Other income	—		—			—			759			—		—		—
Total operating revenues	30,074		33,651			29,478			31,354			27,778		30,074		27,778
RIGL - derivatives	368		(558		)	(63		)	63			39		368		39
RIGL - investments	1,478		1,375			(4,207		)	(223		)	2		1,478		2
Total revenues	31,920		34,468			25,208			31,194			27,819		31,920		27,819

BENEFITS & EXPENSES
Benefits and settlement expenses	11,603		10,683			9,639			9,868			9,808		11,603		9,808
Amortization of deferred policy acquisition costs and value of business acquired	81		96			110			111			100		81		100
Other operating expenses	546		408			523			328			473		546		473
Total benefits and expenses	12,230		11,187			10,272			10,307			10,381		12,230		10,381

INCOME BEFORE INCOME TAX	19,690		23,281			14,936			20,887			17,438		19,690		17,438

Adjustments to Reconcile to Operating Income:
Less: RIGL - derivatives	368		(558		)	(63		)	63			39		368		39
Less: RIGL - investments	1,478		1,375			(4,207		)	(223		)	2		1,478		2

PRE-TAX OPERATING INCOME	$	17,844	$	22,464		$	19,206		$	21,047		$	17,397	$	17,844	$	17,397

Stable Value Products Key Data

	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
	2013			2013			2013			2013			2014			2013		2014

SALES
GIC	$	112,020		$	205,284		$	80,200		$	97,078		$	25,850		$	112,020	$	25,850
GFA - Direct Institutional	—			—			—			—			—			—		—
Total	$	112,020		$	205,284		$	80,200		$	97,078		$	25,850		$	112,020	$	25,850

DEPOSIT BALANCE
Quarter End Balance	$	2,544,609		$	2,579,172		$	2,531,262		$	2,559,552		$	2,537,504
Average Daily Balance	$	2,543,906		$	2,542,096		$	2,503,294		$	2,560,588		$	2,580,025

OPERATING SPREAD	2.81		%	3.53		%	3.07		%	3.29		%	2.70		%

ADJUSTED OPERATING SPREAD (1)	2.55		%	2.67		%	2.69		%	2.77		%	2.62		%

(1) Excludes participating mortgage loan income and other income

Draft 5/7/2014

Page 20

Asset Protection Quarterly Trends

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

REVENUES
Gross premiums and policy fees	$	66,186		$	68,203		$	66,604		$	66,924		$	67,274		$	66,186		$	67,274
Reinsurance ceded	(31,083		)	(32,652		)	(32,681		)	(33,097		)	(33,324		)	(31,083		)	(33,324		)
Net premiums and policy fees	35,103			35,551			33,923			33,827			33,950			35,103			33,950
Net investment income	5,854			5,782			5,804			5,739			5,729			5,854			5,729
Other income	26,614			30,480			31,768			27,872			26,704			26,614			26,704
Total operating revenues	67,571			71,813			71,495			67,438			66,383			67,571			66,383

BENEFITS & EXPENSES
Benefits and settlement expenses	24,658			25,964			26,384			24,690			24,620			24,658			24,620
Amortization of deferred policy acquisition costs and value of business acquired	7,462			7,607			7,402			8,034			6,645			7,462			6,645
Other operating expenses	29,370			30,858			30,882			28,211			28,749			29,370			28,749
Total benefits and expenses	61,490			64,429			64,668			60,935			60,014			61,490			60,014

INCOME BEFORE INCOME TAX	6,081			7,384			6,827			6,503			6,369			6,081			6,369
PRE-TAX OPERATING INCOME	$	6,081		$	7,384		$	6,827		$	6,503		$	6,369		$	6,081		$	6,369

Asset Protection Key Data

	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR		3 MOS
	2013		2013		2013		2013		2014		2013		2014

SALES
Credit insurance	$	7,334	$	9,852	$	9,105	$	7,346	$	6,842	$	7,334	$	6,842
Service contracts	82,035		99,153		102,796		85,530		81,912		82,035		81,912
GAP products	14,766		17,453		18,140		16,287		16,747		14,766		16,747
Total	$	104,135	$	126,458	$	130,041	$	109,163	$	105,501	$	104,135	$	105,501

Draft 5/7/2014

Page 21

Corporate & Other Quarterly Trends

(Dollars In Thousands)	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

REVENUES
Gross premiums and policy fees	$	4,678		$	4,631		$	4,556		$	4,295		$	4,409		$	4,678		$	4,409
Reinsurance ceded	—			(4		)	(4		)	(3		)	(1		)	—			(1		)
Net premiums and policy fees	4,678			4,627			4,552			4,292			4,408			4,678			4,408
Net investment income	41,232			45,258			38,664			38,665			37,125			41,232			37,125
Other income	1,269			2,488			583			16,892			331			1,269			331
Total operating revenues	47,179			52,373			43,799			59,849			41,864			47,179			41,864
RIGL - investments	2,063			1,120			(2,829		)	3,009			(1,401		)	2,063			(1,401		)
RIGL - derivatives	1,039			1,843			1,233			1,277			(478		)	1,039			(478		)
Total revenues	50,281			55,336			42,203			64,135			39,985			50,281			39,985

BENEFITS & EXPENSES
Benefits and settlement expenses	5,334			5,330			5,701			5,965			4,325			5,334			4,325
Amortization of deferred policy acquisition costs and value of business acquired	179			165			160			121			119			179			119
Other operating expenses	59,998			49,361			52,189			59,259			52,275			59,998			52,275
Total benefits and expenses	65,511			54,856			58,050			65,345			56,719			65,511			56,719

INCOME (LOSS) BEFORE INCOME TAX	(15,230		)	480			(15,847		)	(1,210		)	(16,734		)	(15,230		)	(16,734		)

Adjustments to Reconcile to Operating Income:
Less: RIGL - investments	2,063			1,120			(2,829		)	3,009			(1,401		)	2,063			(1,401		)
Less: RIGL - derivatives	1,039			1,843			1,233			1,277			(478		)	1,039			(478		)

PRE-TAX OPERATING INCOME (LOSS)	$	(18,332	)	$	(2,483	)	$	(14,251	)	$	(5,496	)	$	(14,855	)	$	(18,332	)	$	(14,855	)

Draft 5/7/2014

Page 22

INFORMATION RELATED TO CERTAIN NON-GAAP DISCLOSURES

The following pages contain information related to certain non-GAAP disclosures (consolidated and segment operating income (loss), 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 (LOSS) AND OPERATING INCOME PER DILUTED SHARE

Consolidated and segment operating income (loss) and operating income per diluted share (hereinafter collectively referred to as “consolidated and segment operating income”) are defined as income before income tax, excluding realized gains and losses on investments and derivatives net of the amortization related to deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), and benefits and settlement expenses. Operating earnings exclude changes in the guaranteed minimum withdrawal benefits (“GMWB”) embedded derivatives (excluding the portion attributed to economic cost), realized and unrealized gains (losses) on derivatives used to hedge the VA product, actual GMWB incurred claims and net of the related amortization of DAC attributed to each of these items.

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 5/7/2014

Page 23

Reconciliation of Segment Operating
Income (Loss) to Net Income

(Dollars In Thousands)	1ST QTR			1ST QTR
(Unaudited)	2013			2014

Life Marketing	$	23,707		$	23,485
Acquisitions	34,377			60,996
Annuities	43,398			51,643
Stable Value Products	17,844			17,397
Asset Protection	6,081			6,369
Corporate & Other	(18,332		)	(14,855		)
Total Pre-tax operating income	107,075			145,035

Realized Investment Gains (Losses) - Investments	(9,756		)	68,533
Realized Investment Gains (Losses) - Derivatives	20,308			(88,363		)
Income Tax Expense	(39,336		)	(41,566		)

Net income	$	78,291		$	83,639

Draft 5/7/2014

Page 24

Reconciliation of Operating Income per Diluted Share to Net Income per Diluted Share

	1ST QTR			2ND QTR			3RD QTR			4TH QTR			1ST QTR			3 MOS
(Unaudited)	2013			2013			2013			2013			2014			2013			2014

OPERATING INCOME PER SHARE

Operating income per share-diluted	$	0.89		$	0.96		$	0.98		$	1.43		$	1.19		$	0.89		$	1.19
RIGL - Derivatives per share-diluted	0.16			1.27			0.46			0.10			(0.71		)	0.16			(0.71		)
RIGL - All Other Investments-diluted	(0.08		)	(0.96		)	(0.29		)	(0.06		)	0.55			(0.08		)	0.55
Net income per share-diluted	$	0.97		$	1.27		$	1.15		$	1.47		$	1.03		$	0.97		$	1.03

Draft 5/7/2014

Page 25

Reconciliation of Total Shareowners’ Equity per Share to Total Shareowners’ Equity (Excl. AOCI) per share

	1ST QTR		2ND QTR		3RD QTR		4TH QTR		1ST QTR
(Unaudited)	2013		2013		2013		2013		2014

SHAREOWNERS’ EQUITY PER SHARE
Total Shareowners’ Equity	$	57.89	$	48.91	$	46.31	$	47.28	$	54.09
Less: Accumulated other comprehensive income (loss)	20.39		10.21		6.69		6.29		12.38
Excluding accumulated other comprehensive income (loss)	$	37.50	$	38.70	$	39.62	$	40.99	$	41.71

Draft 5/7/2014

Page 26

Calculation of Operating Income Return on Average Equity
Rolling Twelve Months Ended March 31, 2014

(Dollars In Thousands)	Three Months												Twelve Months
(Unaudited)	6/30/2013			9/30/2013			12/31/2013			3/31/2014			3/31/2014
NUMERATOR:
Net income	$	103,199		$	93,061		$	118,913		$	83,639		$	398,812
Less:
Realized investment gains (losses), net of income tax
Investments	(74,086		)	(18,323		)	3,193			45,840			(43,376		)
Derivatives	103,004			37,120			7,789			(57,436		)	90,477
Related amortization of DAC and VOBA, net of income tax	(3,466		)	(5,260		)	(7,984		)	(1,293		)	(18,003		)

Operating Income	$	77,747		$	79,524		$	115,915		$	96,528		$	369,714

					Total
					Shareowners’
			Accumulated		Equity Excluding
	Total		Other		Accumulated Other
	Shareowners’		Comprehensive		Comprehensive
	Equity		Income (Loss)		Income (Loss)
DENOMINATOR:
March 31, 2013	$	4,541,292	$	1,599,323	$	2,941,969
June 30, 2013	3,837,991		801,194		3,036,797
September 30, 2013	3,638,532		526,088		3,112,444
December 31, 2013	3,714,794		494,066		3,220,728
March 31, 2014	4,265,066		976,764		3,288,302
Total					$	15,600,240

Average					$	3,120,048

Operating Income Return on Average Equity					11.8		%

Draft 5/7/2014

Page 27

Calculation of Operating Income Return on Average Equity
Rolling Twelve Months Ended March 31, 2013

(Dollars In Thousands)	Three Months												Twelve Months
(Unaudited)	6/30/2012			9/30/2012			12/31/2012			3/31/2013			3/31/2013
NUMERATOR:
Net income available to PLC’s common shareowners	$	76,155		$	60,480		$	66,796		$	78,291		$	281,722
Less:
Realized investment gains (losses), net of income tax
Investments	33,790			74,099			(7,018		)	(5,674		)	95,197
Derivatives	(25,943		)	(80,978		)	(9,630		)	13,200			(103,351			)
Related amortization of DAC and VOBA, net of income tax	(2,561		)	4,385			3,698			(667		)	4,855

Operating Income	$	70,869		$	62,974		$	79,746		$	71,432		$	285,021

													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:
March 31, 2012							$	3,785,810		$	1,001,803		$	2,784,007
June 30, 2012							4,147,234			1,318,336			2,828,898
September 30, 2012							4,565,855			1,716,766			2,849,089
December 31, 2012							4,615,183			1,736,722			2,878,461
March 31, 2013							4,541,292			1,599,323			2,941,969
Total													$		14,282,424

Average													$		2,856,485

Operating Income Return on Average Equity													10.0			%

Draft 5/7/2014

Page 28

Calculation of Net Income

Return on Average Equity

Rolling Twelve Months Ended March 31, 2014

(Dollars In Thousands)	Three Months								Twelve Months
(Unaudited)	6/30/2013		9/30/2013		12/31/2013		3/31/2014		3/31/2014
NUMERATOR:
Net income	$	103,199	$	93,061	$	118,913	$	83,639	$	398,812

									Total
									Shareowners’
							Accumulated		Equity Excluding
					Total		Other		Accumulated Other
					Shareowners’		Comprehensive		Comprehensive
					Equity		Income (Loss)		Income (Loss)
DENOMINATOR:
March 31, 2013					$	4,541,292	$	1,599,323	$	2,941,969
June 30, 2013					3,837,991		801,194		3,036,797
September 30, 2013					3,638,532		526,088		3,112,444
December 31, 2013					3,714,794		494,066		3,220,728
March 31, 2014					4,265,066		976,764		3,288,302
Total									$	15,600,240

Average									$	3,120,048

Net income Return on Average Equity									12.8		%

Draft 5/7/2014

Page 29

Calculation of Net Income Available to PLC’s

Common Shareowners Return on Average Equity

Rolling Twelve Months Ended March 31, 2013

(Dollars In Thousands)	Three Months								Twelve Months
(Unaudited)	6/30/2012		9/30/2012		12/31/2012		3/31/2013		3/31/2013
NUMERATOR:
Net income available to PLC’s common shareowners	$	76,155	$	60,480	$	66,796	$	78,291	$	281,722

									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:
March 31, 2012					$	3,785,810	$	1,001,803	$	2,784,007
June 30, 2012					4,147,234		1,318,336		2,828,898
September 30, 2012					4,565,855		1,716,766		2,849,089
December 31, 2012					4,615,183		1,736,722		2,878,461
March 31, 2013					4,541,292		1,599,323		2,941,969
Total									$	14,282,424

Average									$	2,856,485

Net income available to PLC’s common shareowners Return on Average Equity									9.9		%

Protective Life (PLPDZ) 8-KProtective Reports First Quarter 2014