Exhibit 99
PROTECTIVE ANNOUNCES 2Q00 EARNINGS
BIRMINGHAM, Alabama (July 27, 2000) Protective Life Corporation (NYSE:PL) announced
second quarter results today. The Company's diluted operating income was $.62 per share, a 7%
increase over the $.58 per share last year. In the first six months of 2000, the Company's diluted
operating income was $1.25 per share, an 11% increase over the $1.13 per share last year.
Consolidated net income was $39.3 million in the 2000 second quarter compared to $36.4 million
last year, and $82.3 million for the first six months of 2000 compared to $73.1 million last year.
Diluted net income was $.59 per share in the 2000 second quarter compared to $.54 per share last
year, and $1.24 per share for the first six months of 2000 compared to $1.10 per share last year.
At June 30, 2000, the Company's assets were approximately $14.3 billion. Share-owners' equity per
share was $16.70 excluding $2.46 per share of unrealized investment losses resulting from marking
the Company's securities to market value.
Operating return on average equity for the twelve months ending June 30, 2000, was 16.1%.
Drayton Nabers, Jr., Chairman of the Board and Chief Executive Officer of the Company states:
“Claims in our Dental and Financial Institutions Divisions returned to more normal levels in the
second quarter, and in the Dental Division we made progress in stabilizing our earnings base. We
had favorable mortality in our life insurance lines, and our marketing divisions have all shown strong
production this year. Total individual life sales through the second quarter, including those from
West Coast, were 53% above last year, though life insurance sales will not be as strong in the second
half of this year. Dental sales increased 30%, while Financial Institutions sales increased 90%
including those from the Lyndon Insurance Group. Annuity sales were 64% above last year, and
Stable Value sales were 26% higher. Five of our seven divisions achieved earning increases in the
first six months compared to last year. On the negative side, higher short-term interest rates and an
inverted yield curve continued to reduce spreads and net investment income. This effect was offset
by strong mortgage participating income in the second quarter.”
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The table below sets forth operating income before income tax by business segment for the periods
shown:
Operating Income Before Income Tax
for the quarter ending June 30
(in thousands)
|
2000 |
1999 |
| Life Insurance |
| Individual Life |
$ |
10,430 |
$ |
8,371 |
| West Coast |
|
8,263 |
|
6,786 |
| Acquisitions |
|
14,547 |
|
18,376 |
| Specialty Insurance Products |
| Dental and Consumer Benefits |
|
8,299 |
|
7,200 |
| Financial Institutions |
|
8,524 |
|
5,281 |
| Retirement Savings and Investment Products |
| Stable Value Products |
|
7,292 |
|
7,288 |
| Investment Products |
|
3,876 |
|
3,437 |
| Corporate and Other |
|
2,989 |
|
3,962 |
| Total operating income before income tax |
$ |
64,220
|
$ |
60,701
|
Operating Income Before Income Tax
for the six months ending June 30
(in thousands)
|
2000 |
1999 |
| Life Insurance |
| Individual Life |
$ |
19,821 |
$ |
17,185 |
| West Coast |
|
16,885 |
|
12,368 |
| Acquisitions |
|
26,049 |
|
35,969 |
| Specialty Insurance Products |
| Dental and Consumer Benefits |
|
14,368 |
|
15,807 |
| Financial Institutions |
|
14,436 |
|
10,515 |
| Retirement Savings and Investment Products |
| Stable Value Products |
|
15,947 |
|
14,078 |
| Investment Products |
|
7,290 |
|
6,497 |
| Corporate and Other |
|
14,510 |
|
4,899 |
| Total operating income before income tax |
$ |
129,306
|
$ |
117,318
|
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The table below sets forth divisional sales for the periods shown:
Sales
for the six months ending June 30
(in millions)
|
2000 |
1999 |
| Life Insurance |
| Individual Life |
$ |
52.7 |
$ |
36.2 |
| West Coast |
|
45.0 |
|
27.5 |
| Specialty Insurance Products |
| Dental and Consumer Benefits |
|
63.4 |
|
48.9 |
| Financial Institutions |
|
260.8 |
|
137.1 |
| Retirement Savings and Investment Products |
| Stable Value Products |
|
727.8 |
|
578.4 |
| Investment Products |
|
497.1 |
|
303.7 |
The sales statistics in the above 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.
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. Please
refer to Exhibit 99 of the Company’s most recent Form 10-K/10-Q for more information
about factors which could affect future results. These factors include, but are not limited
to: 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
illiquid investments at a loss to cover policyholder withdrawals; interest-rate fluctuations
could negatively affect our spread income; insurance companies are highly regulated; a
tax law change could adversely affect our ability to compete with non-insurance products;
financial services companies are frequently the targets of litigation, including class action
litigation, which could result in substantial judgements; our investments are subject to risks;
our growth from acquisitions involves risks; we are dependent on the performance of
others; our reinsurance program involves risks; and our performance is affected by general
economic conditions.
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