Protective Announces Record 2007 Earnings

BIRMINGHAM, Ala.--(Business Wire)--
Protective Life Corporation (NYSE: PL) today reported results for
2007.

-- Net income increased 2.8% to a record $4.05 per diluted share,
compared to $3.94 per share in 2006. Net income for the fourth
quarter was $0.85 per diluted share compared to $1.19 per
share in the fourth quarter of 2006. Included in the current
quarter's net income were net realized investment losses of
$0.08 per share, compared to net realized investment gains of
$0.28 per share in the same period last year. For the year,
net income included net realized investment gains of $0.06 per
share compared to net realized investment gains of $0.55 per
share in 2006.

-- Operating income in 2007 was a record $3.99 per diluted share,
up 17.7% compared to $3.39 per share in 2006. Operating income
for the fourth quarter was $0.93 per diluted share compared to
$0.91 per share in the fourth quarter of 2006. 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 for the Company and its business segments.

John D. Johns, Protective's Chairman, President and Chief
Executive Officer stated,

"In a year that presented some significant challenges for the
financial services industry, we are pleased to announce record net and
operating earnings for 2007. Contributing to these results were record
pre-tax operating earnings in our Life Marketing, Acquisitions and
Asset Protection segments, record sales in our Annuities segment,
improved spreads in our Stable Value Products segment and very solid
performance in our investment portfolio.

"We have a strong balance sheet, a quality investment portfolio,
competitive products and access to some of the best distribution
systems in the industry. We believe we are well positioned to weather
the current challenging environment in 2008. Our plan for the year is
to continue to grow our core segments and build a foundation for
accelerating growth and improving returns on capital in 2009 and
beyond."

FINANCIAL HIGHLIGHTS

-- Life Marketing pretax operating income increased 8.6% to
$189.2 million in 2007 compared to $174.2 million in 2006.
Pretax operating income in the fourth quarter of 2007 was
$46.1 million, a 10% increase compared to $41.9 million in the
prior year's quarter. Life Marketing sales were $228.8 million
for 2007 compared to $227.6 million in 2006. Life Marketing
sales were $51.7 million in the fourth quarter of 2007
compared to $49.6 million in the prior year's quarter.

-- Pretax operating income in 2007 for the Acquisitions segment
was $129.2 million compared to $104.5 million in 2006. Pretax
operating income in the fourth quarter of 2007 was $35.8
million compared to $33.6 million in the prior year fourth
quarter.

-- Annuity sales were $1.7 billion in 2007, an increase of 38.8%
over the record level of sales in the prior year. Pretax
operating income in 2007 for the Annuities segment was $23.1
million compared to $24.6 million in 2006. In the current
quarter pretax operating income was $4.3 million compared to
$8.4 million in the fourth quarter of 2006.

-- The Stable Value Products segment reported pretax operating
income in 2007 of $50.2 million compared to $47.1 million in
2006. Pretax operating income was $12.6 million in the fourth
quarter of 2007 compared to $12.5 million in the same period
last year.

-- The Asset Protection segment reported record pretax operating
income in 2007 of $41.6 million compared to $9.8 million in
2006. The Asset Protection segment reported pretax operating
income of $10.0 million in the fourth quarter of 2007 compared
to $6.6 million in the same period last year.

-- As of December 31, 2007, the Company's assets were
approximately $41.7 billion, compared to $39.8 billion at
year-end 2006, an increase of 4.9%.

-- As of December 31, 2007, share-owners' equity per share,
excluding accumulated other comprehensive income, was $36.17
compared with $32.88 a year ago. Share-owners' equity per
share, including accumulated other comprehensive income, was
$35.02 compared with $33.06 a year ago.

-- Operating income return on average equity for the twelve
months ended December 31, 2007 was 11.8%.

-- Net income return on average equity for the twelve months
ended December 31, 2007 was 11.9%.

-- At December 31, 2007, below investment grade securities were
less than 4% of invested assets, and problem mortgage loans
and foreclosed properties were 0.2% of the commercial mortgage
loan portfolio. As of year end, the total market value of
securities that were supported by collateral that is
classified as sub-prime was $89.9 million, or 0.3% of total
invested assets. $88.2 million or 98.1% of these securities
were rated AAA. At year end the securities supported by
collateral classified as Alt-A totaled $274.5 million, or 0.9%
of invested assets.

2008 GUIDANCE

Based on current information, Protective expects 2008 operating
income per diluted share to be between $3.80 and $4.20. Protective's
2008 guidance excludes any reserve adjustments or unusual or
unpredictable benefits or charges that might occur during the year.
The 2008 guidance range is based upon many assumptions, including but
not limited to: the expected pattern of financial results of life
insurance business written under our capital markets securitization
structure; the ongoing impact of the ordinary course run-off of older
policies; competitive pressures on pricing in our term life insurance
business; and our view and expectations as to the likely effect of the
interest rate environment on our business (including our view and
expectations of credit spreads, the yield curve, and the volume of
prepayments and income from both our securities portfolio and our
participating mortgage loan portfolio). The 2008 guidance also assumes
that Life Marketing mortality will be consistent with 2007 results.
Investment income from extraordinary sources (primarily participating
mortgage loan income and prepayment fees) is expected to decline in
2008 compared to 2007 levels, but is assumed to be replaced by higher
levels of investment income from the remaining investment portfolio.
Assumed in 2008 guidance is a $.07 per share charge for extinguishment
of debt related to expected refinancing of the nonrecourse funding
obligations supporting our excess regulation XXX term insurance
reserves. The 2008 guidance range also assumes no further positive or
negative unlocking of deferred policy acquisition costs ("DAC") or
adjustments to value of businesses acquired ("VOBA"), and diluted
weighted average shares outstanding of 71.7 million.

The Company's actual experience in 2008 will almost certainly
differ from the expectations described above, due to a number of
factors including, but not limited to, the risk factors set forth
under "Forward Looking Statements" below and in the Company's most
recent Form 10-K and Form 10-Q, significant changes in earnings on
investment products caused by changes in interest rates and the equity
markets, DAC and VOBA amortization; and changes in our effective tax
rate that are difficult to anticipate or forecast.

For information relating to non-GAAP measures (operating income,
share-owners' equity per share excluding other comprehensive income,
operating return on average equity, and net income 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.

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*T

FOURTH QUARTER AND FULL YEAR CONSOLIDATED RESULTS

($ in thousands; net of income
tax) 4Q2007 4Q2006 2007 2006
-------- ------- --------- ---------

Operating income $66,567 $65,371 $285,516 $242,639
Realized investment gains
(losses) and related
amortization, net of certain
derivative gains (losses) (5,681) 19,811 4,050 38,922
-------- ------- --------- ---------
Net Income $60,886 $85,182 $289,566 $281,561
======== ======= ========= =========

($ per share; net of income tax) 4Q2007 4Q2006 2007 2006
-------- ------- --------- ---------

Operating income $ 0.93 $ 0.91 $ 3.99 $ 3.39
Realized investment gains
(losses) and related
amortization
Investments 0.16 0.05 (0.01) 0.75
Derivatives (0.24) 0.23 0.07 (0.20)
-------- ------- --------- ---------
Net Income $ 0.85 $ 1.19 $ 4.05 $ 3.94
======== ======= ========= =========
*T

BUSINESS SEGMENT OPERATING INCOME (LOSS) BEFORE INCOME TAX

The table below sets forth business segment operating income
(loss) before income tax for the periods shown:

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*T
OPERATING INCOME (LOSS) BEFORE INCOME TAX
($ in thousands)

4Q2007 4Q2006 2007 2006
--------- --------- --------- --------

LIFE MARKETING $ 46,098 $ 41,913 $189,186 $174,189
ACQUISITIONS 35,809 33,610 129,247 104,534
ANNUITIES 4,340 8,403 23,051 24,645
STABLE VALUE PRODUCTS 12,583 12,500 50,231 47,073
ASSET PROTECTION 10,048 6,570 41,559 9,811
CORPORATE AND OTHER (6,236) (2,807) (3,417) 11,776
--------- --------- --------- --------
$102,642 $100,189 $429,857 $372,028
========= ========= ========= ========
*T

In the Life Marketing and Asset Protection segments, pretax
operating income equals segment income before income tax for all
periods. In the Acquisitions, Annuities, Stable Value Products, and
Corporate & Other segments, operating income excludes realized
investment gains (losses) and related amortization as set forth in the
table below.

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*T
($ in thousands) 4Q2007 4Q2006 2007 2006
--------- --------- -------- --------

Operating income before income
tax $102,642 $100,189 $429,857 $372,028
Realized investment gains
(losses)
Stable Value Contracts 885 784 1,394 1,161
Acquisitions (2,179) 12,632 4,266 28,716
Annuities 557 (223) 2,008 4,697
Corporate and Other (6,648) 18,638 2,614 37,247
Less: periodic settlements on
derivatives
Corporate and Other 195 77 821 2,737
Related amortization of DAC
and VOBA
Annuities 723 (314) 1,149 2,428
Acquisitions 437 1,590 2,081 6,776
--------- --------- -------- --------
Income before income tax $ 93,902 $130,667 $436,088 $431,908
========= ========= ======== ========
*T

Income before income tax (which, unlike operating income 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) for the Acquisitions segment was $131.4 million
for 2007 and $126.5 million for 2006 and $33.2 million for the fourth
quarter of 2007 and $44.7 million for the fourth quarter of 2006.
Income before income tax for the Annuities segment was $23.9 million
for 2007 and $26.9 million for 2006 and $4.2 million for the fourth
quarter of 2007 and $8.5 million in the fourth quarter of 2006. Income
before income tax for the Stable Value segment was $51.6 million for
2007 and $48.2 million for 2006 and $13.5 million for the fourth
quarter of 2007 and $13.3 million for the fourth quarter of 2006.
Income before income tax for the Corporate & Other segment was ($1.6)
million for 2007 and $46.3 million for 2006. Fourth quarter results
for 2007 and 2006 were ($13.1) million and $15.8 million respectively.

The sales statistics given in this press release are used by the
Company to measure the relative progress of its marketing efforts.
These statistics were derived from the Company's various sales
tracking and administrative systems and were not derived from the
Company's financial reporting systems or financial statements. These
statistics attempt to measure only one of many factors that may affect
future business segment profitability, and therefore are not intended
to be predictive of future profitability.

SALES

The table below sets forth business segment sales for the periods
shown:

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($ in millions)
4Q2007 4Q2006 2007 2006
-------- -------- -------- --------

LIFE MARKETING $ 51.7 $ 49.6 $ 228.8 $ 227.6
ANNUITIES 411.5 401.1 1,666.4 1,200.9
STABLE VALUE PRODUCTS 203.8 60.2 926.6 433.9
ASSET PROTECTION 124.4 140.5 552.3 535.6

*T

BUSINESS SEGMENT HIGHLIGHTS

LIFE MARKETING: Fourth quarter pretax operating income for the
Life Marketing segment was $46.1 million compared to $41.9 million for
the fourth quarter of 2006. The increase is primarily attributable to
favorable mortality of $6.6 million offset by $4.0 million of
investment income that shifted to Corporate & Other related to the
completion of the AXXX securitization in the third quarter of 2007.
Life Marketing mortality was $12.2 million favorable in 2007. Pretax
operating income for the segment was $189.2 million for the full year,
an increase of 8.6% over the prior year. 2007 results were favorably
impacted by a $15.7 million gain on the sale of Matrix Direct.

Life insurance sales in the fourth quarter of 2007 and for the
full year of 2007 were $51.7 million and $228.8 million, respectively.
Term insurance sales in the current quarter were $31.5 million
compared to $32.6 million in the prior year's quarter. Universal life
insurance sales in the fourth quarter of 2007 were $20.1 million
compared to $17.0 million in the prior year's quarter.

ACQUISITIONS: Pretax operating income in the Acquisitions segment
was $35.8 million for the fourth quarter of 2007 compared to $33.6
million in the fourth quarter of 2006. Pretax operating income for the
full year was $129.2 million compared to $104.5 million for 2006. For
the full year, pretax operating income for the segment increased
23.6%, primarily due to the acquisition of the Chase Insurance Group
block of business in July 2006.

ANNUITIES: Pretax operating income was $4.3 million in the fourth
quarter of 2007 compared to $8.4 million in the fourth quarter of
2006. For the full year, pretax operating income in the Annuities
segment was $23.1 million, down 6.5% compared to $24.6 million in
2006. Earnings were reduced $4.0 million and $3.3 million for fourth
quarter 2007 and full year 2007 respectively due to fair value changes
net of DAC amortization in the Equity Indexed Annuity and Variable
Annuity product lines.

Total annuity sales for the full year were a record $1.7 billion
compared to $1.2 billion in the prior year. In fourth quarter of 2007
sales were $411.5 million compared to $401.1 million in the prior
year's quarter. Fixed annuity sales were $288.5 million in the fourth
quarter of 2007 compared to $309.6 million in the prior year's
quarter. Variable annuity sales were $123.0 million in the fourth
quarter of 2007, up 34.3% compared to $91.5 million in the fourth
quarter of 2006. For 2007 variable annuity sales were $472.5 million
compared to $322.8 million in 2006. Year end annuity account balances
were $7.6 billion, an increase of 16.2% over the prior year.

STABLE VALUE PRODUCTS: Pretax operating income in the Stable Value
Products segment was $50.2 million for 2007 compared to $47.1 million
in 2006. For the quarter, pretax operating income was $12.6 million
compared to $12.5 million in the fourth quarter of 2006. Spreads in
the fourth quarter of 2007 were 102 basis points as compared to 93
basis points in the fourth quarter of 2006. For the full year, spreads
were 101 basis points compared to 84 basis points in 2006. The
increase in spreads for the quarter is primarily attributable to
higher yields. Account balances ended the year at $5.0 billion.

ASSET PROTECTION: The Asset Protection segment had record pretax
operating income of $41.6 million for 2007 compared to $9.8 million in
2006. For the current quarter, pretax operating income was $10.0
million compared to $6.6 million for the fourth quarter of 2006. The
increase for the year is primarily attributable to strong performance
in the service contract lines, which were up by 25.5%. 2006 included a
reserve charge of $27.1 million related to the discontinued Lender's
Indemnity product line.

CORPORATE & OTHER: This segment consists primarily of net
investment income on unallocated capital, interest expense on all
debt, various other items not associated with the other segments and
ancillary run-off lines of business. The segment reported a pretax
operating loss of $6.2 million in the fourth quarter of 2007 compared
to a pretax operating loss of $2.8 million in the fourth quarter of
2006. The decrease is primarily attributable to a loss of $8.5 million
related to the mark-to-market on a $422 million portfolio of
securities designated for trading. This trading portfolio negatively
impacted full year 2007 by $10.2 million. Participating mortgage
income in the current quarter was $7.2 million and $31.0 million for
the full year 2007. The participating mortgage income amounts exclude
$2 million that was allocated to the other business segments in 4Q07
and $8.0 million allocated to the other business segments for the full
year 2007. The 2007 Corporate & Other pretax operating loss was $3.4
million compared to a gain of $11.8 million in 2006.

CONFERENCE CALL

There will be a conference call for management to discuss the
quarterly results with analysts and professional investors on February
8, 2008 at 9:00 a.m. Eastern. Analysts and professional investors may
access this call by calling 1-800-862-9098 (international callers
1-785-424-1051) and giving the conference ID: Protective. A recording
of the call will be available from 12:00 p.m. Eastern February 8, 2008
until midnight February 15, 2008. The recording may be accessed by
calling 1-800-839-2485 (international callers 1-402-220-7222).

The public may listen to a simultaneous webcast of the call on the
homepage of the Company's web site at www.protective.com. A recording
of the webcast will also be available from 12:00 p.m. Eastern February
8, 2008 until midnight February 15, 2008.

Supplemental financial information is available on the Company's
web site at www.protective.com in the Analyst/Investor section under
the financial report library titled Supplemental Financial
Information.

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 are defined as income before
income tax excluding net realized investment gains (losses) net of the
related amortization of deferred policy acquisition costs ("DAC") and
value of businesses acquired ("VOBA") and participating income from
real estate ventures. Periodic settlements of derivatives associated
with corporate debt and certain investments and annuity products are
included in realized gains (losses) but are considered part of
consolidated and segment operating income because the derivatives are
used to mitigate risk in items affecting consolidated and segment
operating income. Management believes that consolidated and segment
operating income 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)
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, including unrealized
gains (losses) on investments.

The 2008 earnings guidance presented in this release is based on
the financial measure operating income per diluted share. Net income
per diluted share is the most directly comparable GAAP measure. A
quantitative reconciliation of Protective's net income per diluted
share to operating income per diluted share is not calculable on a
forward-looking basis because it is not possible to provide a reliable
forecast of realized investment gains and losses, which typically vary
substantially from period to period.

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*T

RECONCILIATION OF SHARE-OWNERS' EQUITY PER SHARE EXCLUDING ACCUMULATED
OTHER COMPREHENSIVE INCOME (LOSS) PER SHARE

($ per common share outstanding as of December 31, 2007)

Total share-owners' equity per share $35.02
Less: Accumulated other comprehensive income (loss) per
share (1.15)
-------

Total share-owners' equity per share excluding accumulated
other comprehensive income(loss) $36.17
=======

*T

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 December 31, 2007 is calculated by dividing
operating income for this period by the average ending balance of
share-owners' equity (excluding accumulated other comprehensive
income) for the five most recent quarters. Net income return on
average equity for the twelve months ended December 31, 2007, is
calculated by dividing net income for this period by the average
ending balance of share-owners' equity (excluding accumulated other
comprehensive income) for the five most recent quarters.

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*T

CALCULATION OF OPERATING INCOME RETURN ON AVERAGE EQUITY
TWELVE MONTHS ENDED DECEMBER 31, 2007

Numerator:
($ in thousands) Three Months Ended
---------------------------------------
Twelve
Months
Ended
March 31, June 30, Sept. 30, Dec. 31, December
2007 2007 2007 2007 31, 2007
--------- --------- --------- --------- ---------

Net income $90,583 $ 65,105 $ 72,992 $ 60,886 $289,566
Net of:
Realized
investment gains
(losses), net of
income tax
Investments 6,592 (45,705) 28,024 12,222 1,133
Derivatives (1,654) 48,705 (24,479) (17,022) 5,550
Related
amortization of
DAC, net of
income tax (777) (540) (29) (754) (2,100)
Add back:
Derivative gains
related to Corp.
debt and
investments, net
of income tax 167 154 85 127 533
--------- --------- --------- --------- ---------
Operating Income $86,589 $ 62,799 $ 69,561 $ 66,567 $285,516
========= ========= ========= ========= =========
*T

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Denominator: Share-Owners'
Accumulated Equity Excluding
Other Accumulated Other
Share-Owners' Comprehensive Comprehensive
Equity Income Income
------------- ------------- -----------------

December 31, 2006 $2,313,075 $12,431 $ 2,300,644
March 31, 2007 2,419,317 37,954 2,381,363
June 30, 2007 2,293,542 (139,132) 2,432,674
September 30, 2007 2,405,623 (85,711) 2,491,334
December 31, 2007 2,456,761 (80,529) 2,537,290
Total $12,143,305
=================
Average $ 2,428,661
=================
Operating Income Return on Average Equity 11.8%
*T

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CALCULATION OF NET INCOME RETURN ON AVERAGE EQUITY
TWELVE MONTHS ENDED DECEMBER 31, 2007

($ in thousands)

Numerator:

Net income - three months ended March 31, 2007 $ 90,583
Net income - three months ended June 30, 2007 65,105
Net income - three months ended September 30, 2007 72,992
Net income - three months ended December 31, 2007 60,886
--------
Net income - rolling twelve months ended December 31, 2007 $289,566
========
*T

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*T
Denominator: Share-Owners'
Accumulated Equity Excluding
Other Accumulated Other
Share-Owners' Comprehensive Comprehensive
Equity Income Income

December 31, 2006 $2,313,075 $12,431 $ 2,300,644
March 31, 2007 2,419,317 37,954 2,381,363
June 30, 2007 2,293,542 (139,132) 2,432,674
September 30, 2007 2,405,623 (85,711) 2,491,334
December 31, 2007 2,456,761 (80,529) 2,537,290
Total $12,143,305
=================
Average $ 2,428,661
=================
Net Income Return on Average Equity 11.9%

*T

FORWARD-LOOKING STATEMENTS

This release and the supplemental financial information provided
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 trends and uncertainties: the Company is exposed to
the risks of natural 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; a
ratings downgrade could adversely affect the Company's ability to
compete; the Company's policy claims fluctuate from period to period
resulting in earnings volatility, and actual results could differ from
its expectations, including, but not limited to, expectations of
mortality, morbidity, casualty losses, persistency, lapses, customer
mix and behavior and projected level of used vehicle values; 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
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 or reduce the demand for certain insurance products;
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 low 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 and credit
risks; 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 may not be able to achieve the expected
results from its recent 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 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, destroying valuable data or making
it difficult to conduct business; the Company's ability to grow
depends in large part upon the continued availability of capital,
which has been negatively impacted by recent regulatory action and
reserve increase related to certain discontinued lines of business and
may be negatively impacted in the future by an increase in guaranteed
minimum death benefit related policy liabilities resulting from
negative performance in the equity markets, and future marketing plans
are dependent on access to the capital markets through securitization;
and new accounting or statutory rules or changes to existing
accounting or statutory 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; credit market volatility could cause
market price and cash flow variability in the Company's fixed income
portfolio, resulting in defaults on principal or interest payments on
those securities or adversely impact the Company's ability to
efficiently access the capital markets to issue long term debt or fund
excess statutory reserves. Please refer to Exhibit 99 of the Company's
most recent Form 10-K/10-Q for more information about these factors
which could affect future results.

Protective Life Corporation
Rich Bielen, 205-268-3617
Vice Chairman and Chief Financial Officer
or
Eva Robertson, 205-268-3912
Vice President, Investor Relations

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