Protective Announces 1Q2001 Earnings

Apr 26, 2001, 01:00 ET from Protective Life Corporation

    BIRMINGHAM, Ala., April 26 /PRNewswire/ -- Protective Life Corporation
 (NYSE:   PL) announced first quarter results today.  The Company's diluted
 operating income in the 2001 first quarter was $.58 per share.  In the first
 quarter of last year, the Company's operating income was $.39 per share
 excluding income from the sale of the Company's Hong Kong affiliate, and
 $.63 per share including the income.
     Drayton Nabers, Jr., Chairman of the Board and Chief Executive Officer of
 the Company stated: "Overall we were pleased with the quarter.  Our West
 Coast, Financial Institutions, and Dental Divisions each reported good
 earnings, and improved year over year.  Our Acquisitions Division benefited
 from the coinsurance of a block of policies from Standard Insurance Company.
 While results in our Individual Life Division were down slightly in the
 quarter, we continue to invest in new strategic distribution opportunities for
 the Division, and we are pleased with the progress we are making with these
 ventures."
 
     The table below sets forth operating income before income tax by business
 segment for the periods shown:
 
                   Operating Income (Loss) Before Income Tax
                        for the quarter ending March 31
                                 (in thousands)
 
                                                        2001           2000
     Life Insurance
       Individual Life                                 $8,191        $ 9,391
       West Coast                                      10,063          8,622
       Acquisitions                                    14,851         11,502
     Specialty Insurance Products
       Dental Benefits                                  9,004          6,069
       Financial Institutions                           8,388          5,912
     Retirement Savings and Investment Products
       Stable Value Products                            8,551          8,655
       Investment Products                              3,578          3,414
     Corporate and Other                              (1,115)         11,520
 
     Total operating income before income tax         $61,511        $65,085
 
 
     Commenting on the Company's sales, Mr. Nabers stated: "Our life insurance
 sales developed momentum as the quarter progressed, and are ahead of pre-
 Triple X levels.  Sales in our other lines were at satisfactory levels but
 were adversely affected by slower economic activity."
 
     The table below sets forth divisional sales for the periods shown:
 
                                     Sales
                      for the three months ending March 31
                                 (in millions)
 
                                                         2001          2000
     Life Insurance
       Individual Life                                  $21.2          $27.3
       West Coast                                        10.7           21.6
     Specialty Insurance Products
       Dental Benefits                                   37.2           44.4
       Financial Institutions                           118.8          122.5
     Retirement Savings and Investment Products
       Stable Value Products                            183.2          399.1
       Investment Products                              207.5          216.5
 
     (The sales statistics in the table 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 divisional profitability, and therefore are not intended to
 be predictive of future profitability.)
     Consolidated net income was $38.0 million in the 2001 first quarter
 compared to $43.0 million last year.  Diluted net income was $.56 per share in
 the 2001 first quarter compared to $.65 per share last year.
 In the 2001 first quarter the Company adopted Statement of Financial
 Accounting Standards No. 133, "Accounting for Derivative Instruments and
 Hedging Activities."
 
     The table below sets forth the effects of the adoption of SFAS 133 and
 marking the Company's derivative instruments to market value.
 
                                Income Per Share
                        for the quarter ending March 31
 
                                                         2001           2000
 
     Before SFAS 133 and marking derivative
     instruments to market value:
       Operating Income                                  $.58           $.63
       Realized Investment Gains (Losses)
        and Related Amortization                          .02            .02
       Net Income before SFAS 133, etc.                   .60            .65
 
     Effect of SFAS 133 and marking derivative
     instruments to market value:
       Realized Investment Gains (Losses)                 .07
       Cumulative of the
       Change in Accounting Principle                   (.11)
       Net Income                                        $.56           $.65
 
 
     At March 31, 2001, the Company's assets were approximately $16.3 billion.
 Share-owners' equity per share was $19.15, excluding $.55 per share of net
 unrealized investment gains resulting from marking the Company's securities
 and derivative instruments to market value.
     Operating return on average equity for the three months ending March 31,
 2001, was 13.7%.
 
     CONFERENCE CALL
     There will be a conference call today for management to discuss first
 quarter results at 10:00 a.m. Eastern.  The public may listen to a
 simultaneous webcast of the call available on the Company's web site at
 www.protective.com .
     A recording of the webcast will also be available from approximately 1:00
 p.m. Eastern April 26 until May 2 on the Company's web site.
     Supplemental financial information is also available through "fax on
 demand" by calling 1-800-323-6124.
     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 effect the Company's future results include, but are not limited to,
 general economic conditions and the following trends and uncertainties: we are
 exposed to many types of risks that could negatively affect our business; we
 operate in a mature, highly competitive industry, which could limit our
 ability to gain or maintain our position in the industry; a ratings downgrade
 could adversely affect our ability to compete; our policy claims fluctuate
 from year to year; we could be forced to sell investments at a loss to cover
 policyholder withdrawals; interest-rate fluctuations could negatively affect
 our spread income or otherwise impact our business; insurance companies are
 highly regulated; tax law changes could adversely affect our 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 class action litigation, which could result in
 substantial judgements; a decrease in sales or persistency could negatively
 affect our results; our investments are subject to risks; our growth from
 acquisitions involves risks; we are dependent on the performance of others;
 and our reinsurance program involves risks.  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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X22679428
 
 

SOURCE Protective Life Corporation
    BIRMINGHAM, Ala., April 26 /PRNewswire/ -- Protective Life Corporation
 (NYSE:   PL) announced first quarter results today.  The Company's diluted
 operating income in the 2001 first quarter was $.58 per share.  In the first
 quarter of last year, the Company's operating income was $.39 per share
 excluding income from the sale of the Company's Hong Kong affiliate, and
 $.63 per share including the income.
     Drayton Nabers, Jr., Chairman of the Board and Chief Executive Officer of
 the Company stated: "Overall we were pleased with the quarter.  Our West
 Coast, Financial Institutions, and Dental Divisions each reported good
 earnings, and improved year over year.  Our Acquisitions Division benefited
 from the coinsurance of a block of policies from Standard Insurance Company.
 While results in our Individual Life Division were down slightly in the
 quarter, we continue to invest in new strategic distribution opportunities for
 the Division, and we are pleased with the progress we are making with these
 ventures."
 
     The table below sets forth operating income before income tax by business
 segment for the periods shown:
 
                   Operating Income (Loss) Before Income Tax
                        for the quarter ending March 31
                                 (in thousands)
 
                                                        2001           2000
     Life Insurance
       Individual Life                                 $8,191        $ 9,391
       West Coast                                      10,063          8,622
       Acquisitions                                    14,851         11,502
     Specialty Insurance Products
       Dental Benefits                                  9,004          6,069
       Financial Institutions                           8,388          5,912
     Retirement Savings and Investment Products
       Stable Value Products                            8,551          8,655
       Investment Products                              3,578          3,414
     Corporate and Other                              (1,115)         11,520
 
     Total operating income before income tax         $61,511        $65,085
 
 
     Commenting on the Company's sales, Mr. Nabers stated: "Our life insurance
 sales developed momentum as the quarter progressed, and are ahead of pre-
 Triple X levels.  Sales in our other lines were at satisfactory levels but
 were adversely affected by slower economic activity."
 
     The table below sets forth divisional sales for the periods shown:
 
                                     Sales
                      for the three months ending March 31
                                 (in millions)
 
                                                         2001          2000
     Life Insurance
       Individual Life                                  $21.2          $27.3
       West Coast                                        10.7           21.6
     Specialty Insurance Products
       Dental Benefits                                   37.2           44.4
       Financial Institutions                           118.8          122.5
     Retirement Savings and Investment Products
       Stable Value Products                            183.2          399.1
       Investment Products                              207.5          216.5
 
     (The sales statistics in the table 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 divisional profitability, and therefore are not intended to
 be predictive of future profitability.)
     Consolidated net income was $38.0 million in the 2001 first quarter
 compared to $43.0 million last year.  Diluted net income was $.56 per share in
 the 2001 first quarter compared to $.65 per share last year.
 In the 2001 first quarter the Company adopted Statement of Financial
 Accounting Standards No. 133, "Accounting for Derivative Instruments and
 Hedging Activities."
 
     The table below sets forth the effects of the adoption of SFAS 133 and
 marking the Company's derivative instruments to market value.
 
                                Income Per Share
                        for the quarter ending March 31
 
                                                         2001           2000
 
     Before SFAS 133 and marking derivative
     instruments to market value:
       Operating Income                                  $.58           $.63
       Realized Investment Gains (Losses)
        and Related Amortization                          .02            .02
       Net Income before SFAS 133, etc.                   .60            .65
 
     Effect of SFAS 133 and marking derivative
     instruments to market value:
       Realized Investment Gains (Losses)                 .07
       Cumulative of the
       Change in Accounting Principle                   (.11)
       Net Income                                        $.56           $.65
 
 
     At March 31, 2001, the Company's assets were approximately $16.3 billion.
 Share-owners' equity per share was $19.15, excluding $.55 per share of net
 unrealized investment gains resulting from marking the Company's securities
 and derivative instruments to market value.
     Operating return on average equity for the three months ending March 31,
 2001, was 13.7%.
 
     CONFERENCE CALL
     There will be a conference call today for management to discuss first
 quarter results at 10:00 a.m. Eastern.  The public may listen to a
 simultaneous webcast of the call available on the Company's web site at
 www.protective.com .
     A recording of the webcast will also be available from approximately 1:00
 p.m. Eastern April 26 until May 2 on the Company's web site.
     Supplemental financial information is also available through "fax on
 demand" by calling 1-800-323-6124.
     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 effect the Company's future results include, but are not limited to,
 general economic conditions and the following trends and uncertainties: we are
 exposed to many types of risks that could negatively affect our business; we
 operate in a mature, highly competitive industry, which could limit our
 ability to gain or maintain our position in the industry; a ratings downgrade
 could adversely affect our ability to compete; our policy claims fluctuate
 from year to year; we could be forced to sell investments at a loss to cover
 policyholder withdrawals; interest-rate fluctuations could negatively affect
 our spread income or otherwise impact our business; insurance companies are
 highly regulated; tax law changes could adversely affect our 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 class action litigation, which could result in
 substantial judgements; a decrease in sales or persistency could negatively
 affect our results; our investments are subject to risks; our growth from
 acquisitions involves risks; we are dependent on the performance of others;
 and our reinsurance program involves risks.  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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X22679428
 
 SOURCE  Protective Life Corporation

RELATED LINKS

http://www.protective.com