Protective Life's 1Q Profit Falls 38 Percent

BIRMINGHAM, Ala. (AP) — Protective Life Corp., a life insurer and insurance brokerage firm, said late Sunday its first-quarter profit fell 38 percent amid investment losses and declining sales.

Net income for the quarter ended March 31 fell to $22.1 million, or 31 cents per share, from $35.9 million, or 50 cents per share, during the same quarter last year.

Operating income, which excludes certain investment losses and gains, totaled $61.5 million, or 86 cents per share.

Analysts polled by Thomson Reuters, on average, forecast earnings of 80 cents per share for the quarter. Analysts typically exclude special items from their estimates.

Like many other insurers, Protective Life recorded mounting investment losses during the quarter. Protective Life posted a net loss of $85.6 million on investments during the first quarter, compared with $18.9 million during the year-ago period.

The first-quarter investment losses reduced earnings by $1.20 per share. Some of those losses, however, were offset by earnings on derivatives which jumped to $46.2 million from $2.7 million.