http://www.businesswire.com/news/home/20091104006547/en
BIRMINGHAM, Ala.--(Business Wire)--
Protective Life Corporation (NYSE: PL) today reported results for the third
quarter of 2009. Net income for the third quarter of 2009 was $27.6 million, or
$0.32 per average diluted share, compared to a net loss of $100.0 million, or
$1.41 per average diluted share, in the third quarter of 2008. Operating income,
after-tax, for the third quarter of 2009 was $47.9 million, or $0.55 per average
diluted share, compared to $62.5 million, or $0.88 per average diluted share, in
the third quarter of 2008.
Net income for the nine months ended September 30, 2009 was $140.5 million, or
$1.77 per average diluted share, compared to a net loss of $25.9 million, or
$0.36 per average diluted share, in the nine months ended September 30, 2008.
Operating income, after tax, for the nine months ended September 30, 2009 was
$190.3 million, or $2.40 per average diluted share, compared to operating
income, after tax, of $183.2 million, or $2.57 per average diluted share, in the
nine months ended September 30, 2008.
Book value per share increased to $26.91 at quarter-end, compared to $10.89 at
December 31, 2008.
John D. Johns, Protective`s Chairman, President and Chief Executive Officer
commented:
"We continued to make good progress on many fronts during the third quarter. Our
book value per common share outstanding increased to almost $27.00 per share at
quarter-end, an increase of 147% from the low at year-end 2008. We continue to
expand the breadth and depth of our annuity distribution platform, and we saw a
strong increase in variable annuity sales and positive fund flows in our major
annuity product lines. We also made some good progress in expanding our capacity
to distribute universal life products. Our universal life sales increased 33%
over last year`s third quarter in the face of some very difficult market
conditions. Our Asset Protection segment continued to perform in line with
expectations. Asset Protection sales were up about $10 million during the
quarter on a sequential basis. We also continued to execute on our plan to grow
our capital base and maintain solid capital ratios. Just after the quarter
closed, we successfully refinanced surplus notes supporting one of our
securitization structures. We expect that the transaction will generate a
substantial increase in operating earnings in the fourth quarter and will also
further bolster our capital base and capital ratios at year-end.
"Earnings in the quarter were negatively impacted by the substantial amounts of
excess liquidity that we continued to carry, less favorable mortality, some
consolidation and other unusual expense items and impairments in the investment
portfolio. We are moving cautiously to deploy excess liquidity and expect
earnings to be impacted by lower yields on short term investments into next
year."
Net income for the third quarter of 2009 included:
* Net realized investment losses, after tax, of $20.3 million, or $0.23 per
average diluted share, compared to net realized investment losses, after tax, of
$162.5 million, or $2.29 per average diluted share, in the third quarter of 2008
* Pre-tax other-than-temporary impairments of $31.0 million, or $0.23 per
average diluted share, are included in the $0.23 per share of net realized
investment losses in the third quarter of 2009
Operating income for the third quarter of 2009 included $4.6 million of net
negative items, on a pre-tax basis:
Positive Items:
* Positive fair value changes of $14.1 million on a portfolio of securities
designated for trading
* Positive prospective unlocking of $10.1 million
Negative Items:
* Negative fair value changes of $3.8 million in the Annuities segment
* Negative mortality variance to plan in the Life Marketing and Acquisitions
segments of $7.8 million
* Negative items of $17.2 million primarily due to higher expenses and lower
Corporate and Other investment income
Business Segment Results
The table below sets forth business segment operating income (loss) before
income tax for the periods shown:
Operating Income (Loss) Before Income Tax
($ in thousands)
3Q2009 3Q2008 $ Chg % Chg
Life Marketing $ 26,544 $ 52,222 $ (25,678 ) -49.2 %
Acquisitions 33,061 33,021 40 0.1 %
Annuities 16,075 556 15,519 n/m
Stable Value Products 14,339 28,184 (13,845 ) -49.1 %
Asset Protection 5,731 8,186 (2,455 ) -30.0 %
Corporate & Other (22,826 ) (32,173 ) 9,347 n/m
$ 72,924 $ 89,996 $ (17,072 ) -19.0 %
In the Life Marketing and Asset Protection segments, pre-tax operating income
equals segment income before income tax for all periods. In the Stable Value
Products, Annuities, Acquisitions and Corporate & Other segments, operating
income (loss) excludes realized investment gains (losses), periodic settlements
on derivatives, and related amortization of DAC and VOBA. A reconciliation of
operating income before income tax to income before income tax is included
below:
($ in thousands) 3Q2009 3Q2008 $ Chg
Operating income (loss) before income tax $ 72,924 $ 89,996 $ (17,072 )
Realized investment gains (losses)
Stable Value Products (4,949 ) 4,984 (9,933 )
Annuities (482 ) (14,419 ) 13,937
Acquisitions 7,025 (40,002 ) 47,027
Corporate & Other (33,662 ) (199,289 ) 165,627
Less:
Periodic settlements on derivatives
Corporate & Other - 1,915 (1,915 )
Related amortization of deferred policy acquisition costs, value of businesses acquired
Annuities 2,340 1,073 1,267
Acquisitions (3,120 ) (1,776 ) (1,344 )
Income (loss) before income tax $ 41,636 $ (159,942 ) $ 201,578
Income (loss) before income tax, unlike operating income (loss) before income
tax, does not exclude realized gains (losses), net of the related amortization
of DAC and VOBA, and participating income from real estate ventures. Income
before income tax for the Acquisitions segment was $43.2 million for the third
quarter of 2009 compared to a loss before income tax of $5.2 million for the
third quarter of 2008. Income before income tax for the Annuities segment was
$13.3 million for the third quarter of 2009 compared to a loss before income tax
of $14.9 million for the third quarter of 2008. Income before income tax for the
Stable Value segment was $9.4 million for the third quarter of 2009 compared to
$33.2 million for the third quarter of 2008. Loss before income tax for the
Corporate & Other segment was $56.5 million for the third quarter of 2009
compared to a loss before income tax of $233.4 million for the third quarter of
2008.
Sales
The Company uses sales statistics to measure the relative progress of its
marketing efforts. The Company derives these statistics from various sales
tracking and administrative systems and not from its financial reporting systems
or financial statements. These statistics measure only one of many factors that
may affect future profitability of the business segments and therefore, are not
intended to be predictive of future profitability.
The table below sets forth business segment sales for the periods shown:
($ in millions)
3Q2009 3Q2008 $ Chg % Chg
Life Marketing $ 41.9 $ 35.4 $ 6.5 18.4 %
Annuities 452.6 472.2 (19.6 ) -4.2 %
Stable Value Products - 685.0 (685.0 ) n/m
Asset Protection 86.2 104.2 (18.0 ) -17.3 %
Review of Business Segment Results
Life Marketing
Life Marketing segment pre-tax operating income was $26.5 million in the third
quarter of 2009 compared to $52.2 million in the third quarter of 2008. The
decrease was primarily due to unfavorable mortality, lower investment income on
the traditional life block, and an elevated level of expenses. Negative
traditional life mortality of $4.9 million is included in the third quarter of
2009 results and is $7.9 million unfavorable to plan. Positive prospective
unlocking of $1.5 million was recorded in the third quarter of 2009, compared to
$8.8 million of positive prospective unlocking recorded in the third quarter of
2008.
Sales were $41.9 million in the third quarter of 2009, an increase of 18.5%
compared to $35.4 million in the third quarter of 2008. Term insurance sales in
the current quarter were $25.6 million compared to $23.0 million in the prior
year`s quarter. Universal life insurance sales (including variable universal
life) in the current quarter were $16.3 million compared to $12.3 million in the
third quarter of 2008.
Acquisitions
Acquisitions segment pre-tax operating income was $33.1 million in the third
quarter of 2009 compared to $33.0 million in the third quarter of 2008,
primarily due to lower operating expenses, partially offset by expected runoff
of the blocks of business.
Annuities
Annuities segment pre-tax operating income was $16.1 million in the third
quarter of 2009 compared to $556 thousand in the third quarter of 2008. The
current quarter included $3.8 million of negative fair value changes,
representing a positive variance of $1.1 million compared to the prior year`s
quarter. This variance includes a $1.0 million favorable variance on embedded
derivatives associated with the variable annuity guaranteed minimum withdrawal
benefit ("GMWB") rider and a $0.1 million favorable variance on the equity
indexed annuity product line, which is no longer marketed. Positive prospective
unlocking improved earnings by $6.9 million in the current quarter. The segment
experienced wider interest spreads and continued growth in the single premium
deferred annuity and market value adjusted annuity lines during the third
quarter. Annuity account values were $9.9 billion as of September 30, 2009, an
increase of 20.6% over the prior year. Net cash flows for the segment remained
positive during the quarter.
Sales in the third quarter of 2009 were $452.6 million compared to $472.2
million in the third quarter of 2008. The decrease was primarily due to lower
fixed annuity sales, partially offset by record variable annuity sales. Variable
annuity sales were $194.4 million in the third quarter of 2009, an increase of
approximately 47%, compared to $132.4 million in the third quarter of 2008.
Fixed annuity sales were $258.1 million in the third quarter of 2009 compared to
$339.8 million in the prior year`s quarter.
Stable Value Products
Stable Value Products segment pre-tax operating income was $14.3 million in the
third quarter of 2009 compared to $28.2 million in the third quarter of 2008.
The decrease was a result of a decline in average account values and a decline
in operating spreads. Included in the operating income during the third quarter
of 2008 was $3.0 million of other income resulting from the early retirement of
funding agreements. There were no early funding agreement retirements in the
third quarter of 2009. Excluding the effect of this gain, the spread decreased
28 basis points to 140 basis points for the three months ended September 30,
2009, compared to the prior year`s quarter. Deposit balances as of September 30,
2009 were $3.9 billion.
There were no sales during the three months ended September 30, 2009 compared to
$685.0 million in the previous year`s quarter.
Asset Protection
Asset Protection segment pre-tax operating income was $5.7 million in the third
quarter of 2009 compared to $8.2 million in the third quarter of 2008. The
decrease was primarily the result of lower service contract income due to
significantly lower sales volume and modestly higher loss ratios.
Sales in the third quarter of 2009 were $86.2 million, down $18.0 million, or
17.2%, compared to the third quarter of 2008, driven by the negative impact in
all product lines of lower volume of automobile and marine units sold. Sales
increased $10.0 million in the third quarter of 2009, as compared to the second
quarter of 2009. The segment benefitted in the current quarter from the federal
government`s "Cash for Clunkers" program.
Corporate & Other
This segment consists primarily of net investment income on capital, interest
expense on debt, ancillary run-off lines of business, and various items not
associated with the other segments. Corporate & Other segment pre-tax operating
loss was $22.8 million in the third quarter of 2009 compared to a $32.2 million
loss in the third quarter of 2008. The improvement in the current quarter was
primarily due to mark-to-market adjustments on a portfolio of securities
designated for trading, with a market value of approximately $322.4 million as
of September 30, 2009. The mark-to-market on this trading portfolio positively
impacted income by $14.1 million for the three months ended September 30, 2009,
a $37.6 million more favorable impact than in the prior year`s quarter.
Offsetting this positive mark-to-market change was lower investment income
resulting from reduced yields on a large balance of cash and short-term
investments and higher expenses.
Investments
* Total cash and investments were $29.0 billion as of September 30, 2009. This
includes $1.3 billion of cash and short-term investments.
* Our net unrealized loss position was $476.8 million, prior to tax and DAC
offsets, an improvement of $2.5 billion or approximately 83%, compared to
December 31, 2008.
* During the third quarter of 2009, we recorded a $31.0 million pre-tax loss on
credit related other-than-temporary impairments.
* Problem loans and foreclosed properties represented 0.7% of our commercial
mortgage loan portfolio as of September 30, 2009.
Net Realized Investment/Derivative Activity
($ per average diluted share) 3Q 2009 3Q 2008
Impairments/Credit related losses $ (0.23 ) $ (1.84 )
Modco net activity 0.05 (0.36 )
Net realized gains (excl. Modco) 0.03 (0.12 )
Interest rate related derivatives (0.06 ) (0.01 )
Credit default swaps - (0.02 )
All other (0.02 ) 0.06
Total $ (0.23 ) $ (2.29 )
Operating income differs from the GAAP measure, net income, in that it excludes
realized investment gains (losses) and related amortization.The tables below
reconcile operating income to net income:
Consolidated Results 3Q 2009 3Q 2008
($ in thousands; net of income tax)
After-tax Operating Income $ 47,922 $ 62,452
Realized investment gains (losses) and related amortization
Investments 88,002 (227,759 )
Derivatives (108,339 ) 65,299
Net Income (loss) $ 27,585 $ (100,008 )
($ per average diluted share; net of income tax) 3Q 2009 3Q 2008
After-tax Operating Income $ 0.55 $ 0.88
Realized investment gains (losses) and related amortization
Investments 1.01 (3.20 )
Derivatives (1.24 ) 0.91
Net Income (loss) $ 0.32 $ (1.41 )
For information relating to non-GAAP measures (operating income, share owners`
equity per share excluding other comprehensive income (loss), operating return
on average equity, and net income (loss) return on average equity) in this press
release, please refer to the disclosure at the end of this press release. All
per share results used throughout this press release are presented on a diluted
basis, unless otherwise noted.
Rolling Twelve Months Ended
September 30,
2009 2008
Operating Income Return on Average Equity 9.8 % 9.9 %
Net Income Return on Average Equity 4.9 % 1.4 %
Operating income return on average equity and net income return on average
equity are measures used by management to evaluate the Company`s performance.
Operating income return on average equity for the twelve months ended September
30, 2009 was calculated by dividing operating income for this period by the
average ending balance of share owners` equity (excluding accumulated other
comprehensive income (loss)) for the five most recent quarters. Net income(loss)
return on average equity for the twelve months ended September 30, 2009, was
calculated by dividing net income (loss) for this period by the average ending
balance of share owners` equity (excluding accumulated other comprehensive
income (loss)) for the five most recent quarters.
Reconciliation of Share Owners' Equity, Excluding Accumulated Other Comprehensive Income (Loss)
($ in thousands)
As of As of
September 30, December 31,
2009 2008
Total share owners' equity $ 2,302,799 $ 761,095
Less: Accumuluated other comprehensive income (loss) (375,472 ) (1,667,056 )
Total share owners' equity excluding accumulated other comprehensive income (loss) $ 2,678,271 $ 2,428,151
Reconciliation of Share Owners' Equity per Share, Excluding Accumulated Other Comprehensive
Income (Loss) per Share
($ per common share outstanding) As of As of
September 30, December 31,
2009 2008
Total share owners' equity $ 26.91 $ 10.89
Less: Accumulated other comprehensive income (loss) (4.39 ) (23.85 )
Total share owners' equity excluding accumulated other comprehensive income (loss) $ 31.30 $ 34.74
2009 Guidance
Due to current market conditions and the potential impact of fair value
accounting on reported results, Protective will not provide 2009 earnings
guidance, but will discuss the outlook for the remainder of the year during its
third quarter 2009 earnings call as scheduled below.
Conference Call
There will be a conference call for management to discuss the quarterly results
with analysts and professional investors on November 5, 2009 at 10:00 a.m.
Eastern. Analysts and professional investors may access this call by dialing
1-866-271-5140 (international callers 1-617-213-8893) and entering the
conference passcode: 86201587. A recording of the call will be available from
12:00 p.m. Eastern November 5, 2009 until midnight November 19, 2009. The
recording may be accessed by calling 1-888-286-8010 (international callers
1-617-801-6888) and entering the passcode: 34039379.
The public may access a live webcast of the call, along with a call
presentation, on the Company`s website at www.protective.com.
A recording of the webcast will also be available from 12:00 p.m. Eastern
November 5, 2009 until midnight November 19, 2009.
Supplemental financial information is also available on the Company`s website at
www.protective.com in the Analyst/Investor section under Financial
Information/Quarterly & Other Reports.
Information Relating to Non-GAAP Measures
Throughout this press release, GAAP refers to accounting principles generally
accepted in the United States of America. Consolidated and segment operating
income (loss) are defined as income (loss) 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. 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
(loss). 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 (loss) may be significant components in understanding and assessing the
Company`s overall financial performance, management believes that consolidated
and segment operating income (loss) enhances an investor`s understanding of the
Company`s results of operations by highlighting the income (loss) attributable
to the normal, recurring operations of the Company`s business. 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 share owners` equity. The market
values of fixed maturities increase or decrease as interest rates change. The
Company believes that an insurance company`s share owners` 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.
Calculation of Operating Income Return on Average Equity
Rolling Twelve Months Ended September 30, 2009
$ in thousands Twelve
Three Months Ended Months Ended
NUMERATOR: 12/31/2008 3/31/2009 6/30/2009 9/30/2009 9/30/2009
Net Income (Loss) $ (15,913 ) $ 22,135 $ 90,757 $ 27,585 $ 124,564
Net of:
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
Share-Owners'
Accumulated Equity Excluding
Other Accumulated Other
Share-Owners' Comprehensive Comprehensive
DENOMINATOR: Equity Income (Loss) Income (Loss)
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 %
Calculation of Net Income (Loss) Return on Average Equity
Rolling Twelve Months Ended September 30, 2009
$ in thousands Twelve
Three Months Ended Months Ended
NUMERATOR: 12/31/2008 3/31/2009 6/30/2009 9/30/2009 9/30/2009
Net Income (Loss) $ (15,913 ) $ 22,135 $ 90,757 $ 27,585 $ 124,564
Share-Owners'
Accumulated Equity Excluding
Other Accumulated Other
Share-Owners' Comprehensive Comprehensive
DENOMINATOR: Equity Income (Loss) Income (Loss)
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 2,298,695 (375,472 ) 2,678,271
Total $ 12,662,758
Average $ 2,532,552
Net Income (Loss) Return on Average Equity 4.9 %
Forward-Looking Statements
This release includes "forward-looking statements" which express expectations of
future events and/or results. All statements based on future expectations rather
than on historical facts are forward-looking statements that involve a number of
risks and uncertainties, and the Company cannot give assurance that such
statements will prove to be correct. The factors which could affect the
Company`s future results include, but are not limited to, general economic
conditions and the following known risks and uncertainties: the Company is
exposed to the risks ofnatural disasters, pandemics, malicious and terrorist
acts that could adversely affect the Company`s operations; the Company operates
in a mature, highly competitive industry, which could limit its ability to gain
or maintain its position in the industry and negatively affect profitability; a
ratings downgrade or other negative action by a ratings organization could
adversely affect the Company; the Company`s policy claims fluctuate from period
to period resulting in earnings volatility; the Company`s results may be
negatively affected should actual experience differ from management`s
assumptions and estimates which by their nature are imprecise and subject to
changes and revision over time; the use of reinsurance, and any change in the
magnitude of reinsurance, introduces variability in the Company`s statements of
income; the Company could be forced to sell investments at a loss to cover
policyholder withdrawals; interest rate fluctuations could negatively affect the
Company`s spread income or otherwise impact its business, including, but not
limited to, the volume of sales, the profitability of products, investment
performance, and asset liability management; equity market volatility could
negatively impact the Company`s business, particularly with respect to the
Company`s variable products, including an increase in the rate of amortization
of DAC and estimated cost of providing minimum death benefit and minimum
withdrawal benefit guarantees relating to the variable products; insurance
companies are highly regulated and subject to numerous legal restrictions and
regulations, including, but not limited to, restrictions relating to premium
rates, reserve requirements, marketing practices, advertising, privacy, policy
forms, reinsurance reserve requirements, acquisitions, and capital adequacy, and
the Company cannot predict whether or when regulatory actions may be taken that
could adversely affect the Company or its operations; changes to tax law or
interpretations of existing tax law could adversely affect the Company,
including, but not limited to, the demand for and profitability of its insurance
products and the Company`s ability to compete with non-insurance products; the
Company may be required to establish a valuation allowance against its deferred
tax assets, which could materially adversely affect the Company`s results of
operations, financial condition and capital position; financial services
companies are frequently the targets of litigation, including, but not limited
to, class action litigation, which could result in substantial judgments, and
the Company, like other financial services companies, in the ordinary course of
business is involved in litigation and arbitration; publicly held companies in
general and the financial services industry in particular are sometimes the
target of law enforcement investigations and the focus of increased regulatory
scrutiny; the Company`s ability to maintain competitive unit costs is dependent
upon the level of new sales and persistency of existing business, and a change
in persistency may result in higher claims and/or higher or more rapid
amortization of deferred policy acquisition costs and thus higher unit costs and
lower reported earnings; the Company`s investments, including, but not limited
to, the Company`s invested assets, derivative financial instruments and
commercial mortgage loan portfolio, are subject to market, credit, and
regulatory risks, and these risks could be heightened during periods of extreme
volatility or disruption in financial and credit markets; the Company may not
realize its anticipated financial results from its acquisitions strategy, which
is dependent on factors such as the availability of suitable acquisitions, the
availability of capital to fund acquisitions and the realization of assumptions
relating to the acquisition; the Company is dependent on the performance of
others, including, but not limited to, distributors, third-party administrators,
fund managers, reinsurers and other service providers, and, as with all
financial services companies, its ability to conduct business is dependent upon
consumer confidence in the industry and its products; the Company`s reinsurers
could fail to meet assumed obligations, increase rates, or be subject to adverse
developments that could affect the Company, and the Company`s ability to compete
is dependent on the availability of reinsurance, which has become more costly
and less available in recent years, or other substitute capital market
solutions; the success of the Company`s captive reinsurance program and related
marketing efforts is dependent on a number of factors outside the control of the
Company, including, but not limited to, continued access to capital markets, a
favorable regulatory environment, and the overall tax position of the Company;
computer viruses or network security breaches could affect the data processing
systems of the Company or its business partners, and could damage the Company`s
business and adversely affect its financial condition and results of operations;
the Company`s ability to grow depends in large part upon the continued
availability of capital, which has been negatively impacted by regulatory action
and the volatility and disruption in the capital and credit markets, and may be
negatively impacted in the future by an increase in guaranteed minimum death and
withdrawal benefit related policy liabilities in variable products resulting
from negative performance in the equity markets, and future marketing plans are
dependent on access to the capital markets through securitization; new GAAP and
statutory accounting rules or changes to existing GAAP and statutory accounting
rules could negatively impact the Company; the Company`s risk management
policies and procedures may leave it exposed to unidentified or unanticipated
risk, which could negatively affect our business or result in losses; capital
and credit market volatility or disruption could adversely impact the Company`s
financial condition or results from operations in several ways, including but
not limited to the following: causing market price and cash flow variability in
the Company`s fixed income portfolio, defaults on principal or interest payments
by issuers of the Company`s fixed income investments, other than temporary
impairments of the Company`s fixed income investments; adversely impacting the
Company`s ability to efficiently access the capital markets to finance its
reserve, capital and liquidity needs; difficult conditions in the economy
generally, including severe or extended economic recession, could adversely
affect the Company`s business and results from operations; there can be no
assurance that the actions of the U.S. Government or other governmental and
regulatory bodies for the purpose of stabilizing the financial markets will
achieve their intended effect; the Company may not be able to protect its
intellectual property and may be subject to infringement claims; the Company
could be adversely affected by an inability to access its credit facility; the
amount of statutory capital the Company has and must hold to maintain its
financial strength and credit ratings and meet other requirements can vary
significantly and is sensitive to a number of factors; and the Company operates
as a holding company and depends on the ability of its subsidiaries to transfer
funds to it to meet its obligations and to pay dividends. Please refer to Part
I, Item 1A, Risk Factors and Cautionary Factors that may Affect Future Results
of the Company`s most recent Form 10-K and Part II, Item 1A, Risk Factors, of
the Company`s subsequent quarterly reports on Form 10-Q for more information
about these factors.
Protective Life Corporation
Rich Bielen
Vice Chairman and Chief Financial Officer
205-268-3617
or
Eva Robertson
Vice President, Investor Relations
205-268-3912
Copyright Business Wire 2009
