Protective Life Corporation (NYSE: PL) (“PLC” or “the Company”) today reported results for the fourth quarter of 2012. Net income available to PLC’s common shareowners for the fourth quarter of 2012 was $66.8 million or $0.82 per average diluted share, compared to $86.0 million or $1.02 per average diluted share in the fourth quarter of 2011. After-tax operating income was $79.7 million or $0.98 per average diluted share, compared to $81.8 million or $0.97 per average diluted share in the fourth quarter of 2011.
Net income available to PLC’s common shareowners for the twelve months ended December 31, 2012 was $302.5 million or $3.66 per average diluted share, compared to $315.4 million or $3.65 per average diluted share for the twelve months ended December 31, 2011. After-tax operating income was $312.7 million or $3.78 per average diluted share, compared to $283.8 million or $3.28 per average diluted share for the twelve months ended December 31, 2011.
“We are delighted to report excellent results for the quarter and the year,” said John D. Johns, Chairman, President and CEO. “Notwithstanding the headwinds presented by low interest rates and a challenging competitive environment, we delivered record operating earnings and an increase in our operating return on equity. Across the board, our team rose to the challenges and efficiently executed our business plans for the year. We believe that we are very well positioned to continue our strong earnings momentum and operating fundamentals in 2013.”
Business Segment Results The table below sets forth business segment operating income before income tax for the periods shown:
| |
| Operating Income Before Income Tax |
| ($ in thousands) |
| | | | For the | | | For the |
| | | | three months ended | | | twelve months ended |
| | | | December 31, | | | December 31, |
| | | | 2012 | | | 2011 | | | 2012 | | | 2011 |
| Life Marketing | | | $ | 15,642 | | | $ | 33,810 | | | | $ | 105,032 | | | | $ | 96,123 |
| Acquisitions | | | | 42,191 | | | | 41,545 | | | | | 171,060 | | | | | 157,393 |
| Annuities | | | | 45,348 | | | | 24,230 | | | | | 119,092 | | | | | 80,224 |
| Stable Value Products | | | | 18,675 | | | | 14,226 | | | | | 60,329 | | | | | 56,780 |
| Asset Protection | | | | 859 | | | | 6,706 | | | | | 16,454 | | | | | 25,407 |
| Corporate & Other | | | | 928 | | | | (4,416 | ) | | | | (3,203 | ) | | | | 5,767 |
| | | | $ | 123,643 | | | $ | 116,101 | | | | $ | 468,764 | | | | $ | 421,694 |
| | | | | | | | | | | | | | | | | | | |
The following table reconciles segment operating income to consolidated net income available to PLC’s common shareowners:
| |
| | | | For the | | | For the |
| | | | three months ended | | | twelve months ended |
| ($ in thousands) | | | December 31, | | | December 31, |
| | | | 2012 | | | 2011 | | | 2012 | | | 2011 |
| Operating income before income tax | | | $ | 123,643 | | | | $ | 116,101 | | | $ | 468,764 | | | | $ | 421,694 |
| Realized investment gains (losses) | | | | (25,613 | ) | | | | 7,558 | | | | (29,830 | ) | | | | 54,103 |
| Less: | | | | | | | | | | | | |
| Related amortization of deferred policy acquisition costs and value of business acquired | | | | (5,689 | ) | | | | 1,022 | | | | (14,037 | ) | | | | 5,566 |
| Income tax expense | | | | 36,923 | | | | | 36,603 | | | | 150,519 | | | | | 154,839 |
| Net income available to PLC’s common shareowners | | | $ | 66,796 | | | | $ | 86,034 | | | $ | 302,452 | | | | $ | 315,392 |
| | | | | | | | | | | | | | | | | | | |
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.
