FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
---- ----
Commission File Numbers 33-31940; 33-39345; 33-57052; 33-70984
PROTECTIVE LIFE INSURANCE COMPANY
(Exact name of registrant as specified in its charter)
TENNESSEE 63-0169720
(State of incorporation) (IRS Employer Identification Number)
2801 HIGHWAY 280 SOUTH
BIRMINGHAM, ALABAMA 35223
(Address of principal executive offices)
(205) 879-9230
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
-- --
Number of shares of Common Stock, $1.00 par value, outstanding as of November
10, 1995: 5,000,000 shares.
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(A) AND
(B) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE
FORMAT PURSUANT TO GENERAL INSTRUCTION H(2).
PROTECTIVE LIFE INSURANCE COMPANY
INDEX
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
Report of Independent Accountants
Consolidated Condensed Statements of Income for the Three
Months and Nine Months ended September 30, 1995 and 1994 (unaudited)
Consolidated Condensed Balance Sheets as of September 30, 1995
(unaudited) and December 31, 1994
Consolidated Condensed Statements of Cash Flows
for the Nine Months ended September 30, 1995 and 1994 (unaudited)
Notes to Consolidated Condensed Financial Statements (unaudited)
Item 2. Management's Narrative Analysis of the Results of Operations
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K
Signature
REPORT OF INDEPENDENT ACCOUNTANTS
To the Directors and Stockholder
Protective Life Insurance Company
Birmingham, Alabama
We have reviewed the accompanying consolidated condensed balance sheet of
Protective Life Insurance Company and subsidiaries as of September 30, 1995, and
the related consolidated condensed statements of income for the three-month and
nine-month periods ended September 30, 1995 and 1994 and consolidated condensed
statements of cash flows for the nine-month periods ended September 30, 1995 and
1994. These financial statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the consolidated condensed financial statements referred to above for
them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1994, and the
related consolidated statements of income, stockholder's equity, and cash flows
for the year then ended (not presented herein); and in our report dated February
13, 1995, we expressed an unqualified opinion which contains an explanatory
paragraph regarding the changes in accounting for certain investments in debt
and equity securities in 1993 and postretirement benefits other than pensions in
1992 on those consolidated financial statements. In our opinion, the infor-
mation set forth in the accompanying consolidated condensed balance sheet as of
December 31, 1994, is fairly stated in all material respects in relation to the
consolidated balance sheet from which it has been derived.
COOPERS & LYBRAND L.L.P.
Birmingham, Alabama
October 25, 1995
PROTECTIVE LIFE INSURANCE COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1995 1994 1995 1994
REVENUES
Premiums and policy fees (net of reinsurance ceded:
three months: 1995 - $79,908; 1994 - $50,714 $ 93,213 $101,876 $277,460 $289,362
nine months: 1995 - $222,351; 1994 - $121,462)
Net investment income 118,162 101,283 342,017 295,978
Realized investment gains (losses) 1,337 3,122 3,443 4,855
Other income 799 643 4,992 2,871
-------- -------- -------- --------
213,511 206,924 627,912 593,066
-------- -------- -------- --------
BENEFITS AND EXPENSES
Benefits and settlement expenses (net of reinsurance ceded:
three months: 1995 - $54,638; 1994 - $31,118 134,111 134,208 383,039 376,536
nine months: 1995 - $159,760; 1994 - $80,541)
Amortization of deferred policy acquisition costs 17,643 20,485 63,193 60,194
Other operating expenses (net of reinsurance ceded:
three months: 1995 - $23,173; 1994 - $3,793 30,040 24,859 93,297 81,457
-------- -------- -------- --------
nine months: 1995 - $58,645; 1994 - $9,842)
181,794 179,552 539,529 518,187
-------- -------- -------- --------
INCOME BEFORE INCOME TAX 31,717 27,372 88,383 74,879
Income tax expense 11,352 8,728 30,052 23,960
-------- -------- -------- --------
NET INCOME $ 20,365 $ 18,644 $ 58,331 $ 50,919
======== ======== ======== ========
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
PROTECTIVE LIFE INSURANCE COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
SEPTEMBER 30 DECEMBER 31
1995 1994
(Unaudited)
ASSETS
Investments:
Fixed maturities $3,909,874 $3,493,646
Equity securities 47,456 45,005
Mortgage loans on real estate 1,718,900 1,488,495
Investment in real estate, net 21,040 20,170
Policy loans 145,655 147,608
Other long-term investments 46,193 50,751
Short-term investments 90,974 54,683
---------- ----------
Total investments 5,980,092 5,300,358
Cash 808
Accrued investment income 61,701 55,630
Accounts and premiums receivable, net 38,333 28,928
Reinsurance receivables 223,457 122,175
Deferred policy acquisition costs 412,283 434,200
Property and equipment, net 34,699 33,185
Receivables from related parties 582 281
Other assets 13,790 11,802
Assets held in separate accounts 277,493 124,145
---------- ----------
TOTAL ASSETS $7,043,238 $6,110,704
========== ==========
LIABILITIES
Policy liabilities and accruals $2,021,324 $1,797,774
Guaranteed investment contract deposits 2,483,669 2,281,673
Annuity deposits 1,298,167 1,251,318
Other policyholders' funds 144,468 144,461
Other liabilities 102,584 94,181
Accrued income taxes 5,973 (4,699)
Deferred income taxes 49,471 (14,667)
Indebtedness to related parties 39,443 39,443
Debt 17,000
Liabilities related to separate accounts 277,493 124,145
---------- ----------
TOTAL LIABILITIES 6,439,592 5,713,629
========== ==========
COMMITMENTS AND CONTINGENT LIABILITIES - NOTE B
REDEEMABLE PREFERRED STOCK, $1 par value,
at redemption value; Shares authorized and issued: 2,000 2,000 2,000
---------- ----------
STOCKHOLDER'S EQUITY
Common Stock, $1 par value
Shares authorized and issued: 5,000,000 5,000 5,000
Additional paid-in capital 144,494 126,494
Net unrealized gains (losses) on investments
(Net of income tax: 1995 - $12,189; 1994 - $(57,902)) 22,637 (107,532)
Retained earnings 435,280 377,049
Note receivable from PLC
Employee Stock Ownership Plan (5,765) (5,936)
---------- ----------
TOTAL STOCKHOLDER'S EQUITY 601,646 395,075
---------- ----------
$7,043,238 $6,110,704
========== ==========
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
PROTECTIVE LIFE INSURANCE COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
NINE MONTHS ENDED
SEPTEMBER 30
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 58,331 $ 50,919
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred policy acquisition costs 63,194 60,194
Capitalization of deferred policy acquisition costs (61,286) (89,295)
Depreciation expense 3,233 3,409
Deferred income taxes (5,952) (11,084)
Accrued income taxes 10,672 (2,642)
Interest credited to universal life and investment products 213,303 183,642
Policy fees assessed on universal life and investment products (74,772) (58,887)
Change in accrued investment income and other receivables (116,522) 9,636
Change in policy liabilities and other policyholders'
funds of traditional life and health products 131,225 84,215
Change in other liabilities (10,224) 6,502
Other (net) (3,515) (2,168)
---------- ---------
Net cash provided by operating activities 207,687 234,441
---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Maturities and principal reductions of investments
Investments available for sale 219,760 325,243
Other 49,536 129,296
Sale of investments
Investments available for sale 863,479 349,944
Other 4,243 16,183
Cost of investments acquired
Investments available for sale (1,329,735) (1,336,274)
Other (243,788) (112,964)
Acquisitions and bulk reinsurance assumptions 39,328
Purchase of property and equipment (4,859) (2,933)
Sale of property and equipment 112 1,817
----------- ----------
Net cash used in investing activities (441,252) (590,360)
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contribution from PLC 18,000
Proceeds from borrowings under line of credit arrangements and debt 981,100 373,186
Principal payments on line of credit arrangements and debt (964,100) (373,258)
Principal payment on surplus note to PLC (4,750)
Dividends to PLC (100) (50)
Investment product deposits and change in universal life deposits 734,707 1,064,910
Investment product withdrawals (535,234) (728,070)
----------- ----------
Net cash provided by financing activities 234,373 331,968
----------- ----------
DECREASE IN CASH 808 (23,951)
CASH AT BEGINNING OF PERIOD 0 23,951
----------- ----------
CASH AT END OF PERIOD $ 808 $ 0
=========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest on notes and mortgages payable $ 2,579 $ (3,713)
Income taxes $ 25,332 $ (37,687)
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES
Reduction of principal on note from ESOP $ 171 $ 28
Acquisitions and bulk reinsurance assumptions
Assets acquired $ 613 $ 41,818
Liabilities assumed (21,800) (49,049)
----------- ----------
Net $ (21,187) $ (7,231)
=========== ==========
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements of
Protective Life Insurance Company ("Protective Life") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, they do not include all of the disclosures required by
generally accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal recurring
accruals) necessary for a fair presentation have been included. Operating
results for the nine month period ended September 30, 1995 are not necessarily
indicative of the results that may be expected for the year ending
December 31, 1995. For further information, refer to the consolidated financial
statements and notes thereto included in Protective Life's annual report on Form
10-K for the year ended December 31, 1994.
Protective Life is a wholly-owned subsidiary of Protective Life Corporation
("PLC").
NOTE B - COMMITMENTS AND CONTINGENT LIABILITIES
Under insurance guaranty fund laws, in most states, insurance companies
doing business therein can be assessed up to prescribed limits for policyholder
losses incurred by insolvent companies. Protective Life does not believe such
assessments will be materially different from amounts already provided for in
the financial statements. Most of these laws do provide, however, that an
assessment may be excused or deferred if it would threaten an insurer's own
financial strength.
Protective Life and its subsidiaries, like other life and health insurers,
from time to time are involved in lawsuits, in which the plaintiff may seek
punitive damage awards as well as compensatory damage awards. To date, no such
lawsuit has resulted in the award of any material amount of damages against
Protective Life. Although the outcome of any litigation cannot be predicted
with certainty, Protective Life believes that such litigation will not have a
material adverse effect on the financial position of Protective Life.
NOTE C - STATUTORY REPORTING PRACTICES
Financial statements prepared in conformity with generally accepted
accounting principles (i.e., GAAP) differ in some respects from the statutory
accounting practices prescribed or permitted by insurance regulatory
authorities. At September 30, 1995 and for the nine months then ended,
Protective Life and its life insurance subsidiaries had consolidated
stockholder's equity and net income prepared in conformity with statutory
reporting practices of $325.5 million and $74.0 million, respectively.
NOTE D - RECENTLY ADOPTED ACCOUNTING STANDARDS
At December 31, 1993, Protective Life adopted Statement of Financial
Accounting Standards ("SFAS") No. 115, "Accounting for Certain Investments in
Debt and Equity Securities." For purposes of adopting SFAS No. 115 Protective
Life has classified all of its investments in fixed maturities, equity
securities, and short-term investments as "available for sale." As prescribed
in SFAS No. 115, these investments are recorded at their market values with the
resulting net unrealized gain or loss, net of income tax and a related
adjustment to deferred policy acquisition costs, recorded as a component of
stockholder's equity.
Protective Life's balance sheets at September 30, 1995 and December 31,
1994, prepared on the basis of reporting investments at amortized cost rather
than at market values, are as follows:
SEPTEMBER 30, 1995 DECEMBER 31, 1994
(IN THOUSANDS)
Total investments $5,937,790 $5,499,511
Deferred policy acquisition costs 419,759 400,480
All other assets 650,863 376,146
---------- ----------
$7,008,412 $6,276,137
========== ==========
Deferred income taxes $ 37,282 $ 43,235
All other liabilities 6,390,121 5,728,296
---------- ----------
6,427,403 5,771,531
Redeemable preferred stock 2,000 2,000
Stockholder's equity 579,009 502,606
---------- ----------
$7,008,412 $6,276,137
========== ==========
On January 1, 1995 Protective Life adopted SFAS No. 114 "Accounting by
Creditors for Impairment of a Loan" and SFAS No. 118 "Accounting by Creditors
for Impairment of a Loan-Income Recognition and Disclosures." Under the new
standards, a loan is considered impaired, based on current information and
events, if it is probable that Protective Life will be unable to collect the
scheduled payments of principal or interest when due according to the
contractual terms of the loan agreement. The measurement of impaired loans is
generally based on the present value of expected future cash flows discounted
at the historical effective interest rate, except that all collateral-dependent
loans are measured for impairment based on the fair value of the collateral.
Since Protective Life's mortgage loans are collateralized by real estate,
any assessment of impairment is based upon the estimated fair value of the real
estate. Based on Protective Life's evaluation of its mortgage loan portfolio,
Protective Life does not expect any material losses on its mortgage loans, and
therefore no allowance for losses is required under SFAS No. 114 at January 1,
1995 or September 30, 1995.
ITEM 2. MANAGEMENT'S NARRATIVE ANALYSIS OF THE
RESULTS OF OPERATIONS
Protective Life Insurance Company ("Protective Life") is a wholly-owned and
the principal operating subsidiary of Protective Life Corporation ("PLC"), an
insurance holding company whose common stock is traded on the New York Stock
Exchange. Founded in 1907, Protective Life provides financial services through
the production, distribution, and administration of insurance and investment
products.
In accordance with General Instruction H(2)(a), Protective Life includes
the following analysis with the reduced disclosure format.
REVENUES
The following table sets forth revenues by source for the period shown:
NINE MONTHS PERCENTAGE
ENDED INCREASE
SEPTEMBER 30 (DECREASE)
(IN THOUSANDS)
1995 1994
Premiums and policy fees $277,460 $289,362 (4.1)%
Net investment income 342,017 295,978 15.6
Realized investment gains 3,443 4,855 (29.1)
Other income 4,992 2,871 73.9
------- --------
$627,912 $593,066
======== ========
Premiums and policy fees decreased $11.9 million or 4.1% in the first nine
months of 1995 over the first nine months of 1994. Premiums and policy fees
from the Financial Institutions Division decreased $54.6 million in the first
nine months of 1995 as compared to the first nine months of 1994. This resulted
from a reinsurance arrangement begun in the first quarter of 1995 whereby a
significant portion of the Division's new sales are being ceded to a reinsurer.
Increases in premiums and policy fees from the Group and Individual Life
Divisions represent increases of $12.7 million and $10.2 million, respectively.
Policy fees related to the Company's variable annuity increased $2.1 million in
the first nine months of 1995 as compared to the same period in 1994. The
assumption of a block of payroll deduction policies in the second quarter of
1994 resulted in a $1.8 million increase in premiums and policy fees in 1995.
The assumption of a block of policies in the fourth quarter of 1994 resulted in
a $17.0 million increase in premiums and policy fees in 1995. The reinsurance
of a block of policies in the second quarter of 1995 resulted in a $4.7 million
increase in premiums and policy fees. Decreases in older acquired blocks
resulted in a $5.8 million decrease in premiums and policy fees.
Net investment income in the first nine months of 1995 increased by $46.0
million or 15.6% over the corresponding period of the preceding year, primarily
due to increases in the average amount of invested assets. Invested assets have
increased primarily due to receiving annuity and guaranteed investment contract
("GIC") deposits and to acquisitions. Annuity and GIC deposits are not
considered revenues in accordance with generally accepted accounting principles.
These deposits are included in the liability section of the balance sheet. The
assumption of two blocks of policies in 1994 and one block of policies in the
second quarter of 1995 resulted in an increase in net investment income of $10.1
million in the first nine months of 1995.
Protective Life generally purchases its investments with the intent to hold
to maturity by purchasing investments that match future cash-flow needs.
However, Protective Life may sell any of its investments to maintain proper
matching of assets and liabilities. Accordingly, Protective Life has classified
its fixed maturities and certain other securities as "available for sale." The
sales of investments that have occurred have largely resulted from portfolio
management decisions to maintain proper matching of assets and liabilities.
Realized investment gains for the first nine months of 1995 were $1.4
million lower than the corresponding period of 1994.
Other income consists primarily of fees from administrative-services-only
types of group accident and health insurance contracts, and from rental of space
in its administrative building to PLC.
INCOME BEFORE INCOME TAX
The following table sets forth income or loss before income tax by business
segment for the periods shown:
INCOME (LOSS) BEFORE INCOME TAX
NINE MONTHS ENDED SEPTEMBER 30
(IN THOUSANDS)
BUSINESS SEGMENT 1995 1994
Acquisitions $36,867 $28,605
Financial Institutions 5,938 6,055
Group 8,004 7,103
Guaranteed Investment Contracts 24,446 28,329
Individual Life 15,147 12,699
Investment Products 7,774 4,091
Corporate and Other (10,402) (12,477)
Unallocated Realized Investment
Gains (Losses) 609 474
------- --------
$88,383 $74,879
======= ========
Pretax earnings from the Acquisitions Division increased $8.3 million in
the first nine months of 1995 as compared to the same period of 1994. Earnings
from the Acquisitions Division are expected to decline over time (due to the
lapsing of policies resulting from deaths of insureds or terminations of
coverage) unless new acquisitions are made. As previously discussed, Protective
Life assumed two blocks of policies during 1994 and one block of policies during
the second quarter of 1995. These acquisitions represent $6.8 million of the
increase. Improved mortality experience in older acquired blocks of policies
resulted in a $1.5 million increase in pretax earnings in the first nine months
of 1995 as compared to the first nine months of 1994.
Pretax earnings of the Financial Institutions Division were $0.1 million
lower in the first nine months of 1995 as compared to the same period in 1994.
The Division has entered into a reinsurance arrangement whereby a significant
portion of the Division's new sales are being ceded to a reinsurer. In the 1995
second quarter the Division also reinsured a block of older policies. Though
the Division's reported earnings were slightly reduced by approximately $0.8
million, these reinsurance transactions are expected to improve the Division's
return on investment.
Group pretax earnings were $0.9 million higher in the first nine months of
1995 as compared to the first nine months of 1994 due to improved earnings from
accident and health products and dental products which were partially offset by
lower earnings from life and cancer products.
The Guaranteed Investment Contract ("GIC") Division had pretax operating
earnings of $25.2 million in the first nine months of 1995 and $23.4 million in
the corresponding period of 1994. At September 30, 1995, GIC deposits totaled
$2.5 billion compared to $2.3 billion one year earlier. Increased earnings due
to higher deposits were offset by higher expenses. Realized investment losses
associated with this Division in the first nine months of 1995 were $0.8
million, as compared to realized investment gains of $4.9 million in the same
period last year. As a result, total pre-tax earnings were $24.4 million in the
first nine months of 1995 compared to $28.3 million for the same period in 1994.
Individual Life pretax earnings were $2.4 million higher in the first nine
months of 1995 as compared to the first nine months of 1994. At December 31,
1994 Protective Life reduced certain statutory policy liabilities for certain
term-like products to be more consistent with current regulation and industry
practice. This reduced investment income allocated to the Division in the first
nine months of 1995 by approximately $2.3 million when compared to the same
period in 1994. Additionally, expenses to develop new marketing ventures were
$1.5 million higher in the first nine months of 1995 as compared to the first
nine months of 1994. These decreases were offset by earnings from a growing
amount of business in force.
Investment Products Division pretax earnings were $3.7 million higher in
the first nine months of 1995 compared to the same period of 1994. Realized
investment gains associated with the Division, net of related amortization of
deferred policy acquisition costs, were $2.5 million higher than the same period
last year. During 1994 the Division completed the amortization of the deferred
policy acquisition costs related to its book value annuities. Accordingly, 1995
operating earnings were $5.2 million higher due to lower amortization. This
increase was largely offset by higher expenses related to the Company's variable
annuity which was introduced in early 1994, and to increases in other expenses.
The Corporate and Other segment consists of several small insurance lines
of business, net investment income and other operating expenses not identified
with the preceding operating divisions (including interest on substantially all
debt), and the operations of a small noninsurance subsidiary. Pretax losses for
this segment were $2.1 million lower in the first nine months of 1995 as
compared to the first nine months of 1994 primarily due to lower expenses,
including management fees to PLC.
INCOME TAXES
The following table sets forth the effective tax rates for the periods
shown:
NINE MONTHS
ENDED ESTIMATED EFFECTIVE
SEPTEMBER 30 INCOME TAX RATES
1995 34%
1994 32
The effective income tax rate for the first nine months of 1994 was 32%.
During the third quarter the estimated income tax rate for 1995 was increased
from 33% to 34%.
NET INCOME
The following table sets forth net income for the periods shown:
NINE MONTHS NET INCOME
ENDED TOTAL PERCENTAGE
SEPTEMBER 30 (IN THOUSANDS) INCREASE
1995 $58,331 14.6%
1994 50,919 34.3
Compared to the same period in 1994, net income in the first nine months of
1995 increased $7.4 million, reflecting improved operating earnings in the
Acquisitions, Group, Individual Life and Investment Products Divisions and the
Corporate and Other segment, which were partially offset by lower earnings in
the Financial Institutions and Guaranteed Investment Contracts Divisions.
RECENTLY ISSUED ACCOUNTING STANDARDS
In January 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 120, "Accounting and
Reporting by Mutual Life Insurance Enterprises and by Insurance Enterprises for
Certain Long-Duration Participating Contracts." In March 1995, the FASB issued
SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of." In May 1995, the FASB issued SFAS No. 122,
"Accounting for Mortgage Servicing Rights." In October 1995, the FASB issued
SFAS No. 123, "Accounting for Stock Based Compensation." Protective Life
anticipates that the impact of adopting these accounting standards will be
immaterial to its financial condition.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 27 - Financial data schedule
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
PROTECTIVE LIFE INSURANCE COMPANY
Date: November 13, 1995 /S/ JERRY W. DEFOOR
Jerry W. DeFoor
Vice President and Controller,
and Chief Accounting Officer
(Duly authorized officer)