8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

November 6, 2007

Date of Report (Date of earliest event reported)

Protective Life Corporation

(Exact name of registrant as specified in its charter)

Delaware	001-11339	95-2492236
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

2801 Highway 280 South

Birmingham, Alabama 35223

(Address of principal executive offices and zip code)

(205) 268-1000

(Registrant's telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CF 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 6 2007, Registrant issued a press release and made available supplemental financial information with respect to its financial results for the quarter ended September 30, 2007. This information is included as Exhibit 99.1 and 99.2 to this Current Report and incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information included or incorporated in this report, including Exhibits 99.1 and 99.2 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information and exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

    (c)  Exhibits:

99.1 - Press Release Dated November 6, 2007

    99.2 - Supplemental Financial Information Dated November 6, 2007

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PROTECTIVE LIFE CORPORATION

/s/Steven G. Walker

Steven G. Walker

Senior Vice President, Controller

and Chief Accounting Officer

Dated:November 6, 2007

EX-99.1

Protective Life Corporation                               ;                                                                                                Exhibit 99.1

Post Office Box 2606

Birmingham, AL  35202

205-268-1000

FOR IMMEDIATE RELEASE

PROTECTIVE ANNOUNCES THIRD QUARTER 2007 EARNINGS

BIRMINGHAM, Alabama (November 6, 2007) Protective Life Corporation (NYSE: PL) today reported results for the third quarter of 2007. Highlights include:

·   Net income for the third quarter was $1.02 per diluted share, compared to $0.80 per share in the third quarter of 2006. Included in the current quarter’s net income were net realized investment gains of $0.05 per share, compared to net realized investment gains of $0.17 per share in the third quarter of 2006.

·   Operating income for the third quarter was $0.97 per diluted share, compared to $0.63 per share in the third 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,

“We are pleased with our overall results for the third quarter.  Encouraging developments included: solid sales and favorable mortality in our life insurance segment; record sales and positive cash flows in our annuity segment; and solid profitability in the Asset Protection line.

Overall, the Company’s performance was strong and we continue to believe that we are well-positioned to benefit from new product offerings, expanding distribution capacity and a more favorable credit spread environment.”

FINANCIAL HIGHLIGHTS

·   Life Marketing pretax operating income was $40.0 million as compared to $40.3 million in the same period last year.  Life Insurance sales were $62.9 million as compared to $54.3 million in the third quarter of 2006.

·   Pretax operating income in the Acquisitions segment was $30.4 million in the current quarter, including $12.3 million from the Chase Insurance Group acquisition compared to $12.9 million in the same period last year.

·   The Annuities segment reported pretax operating income of $6.4 million compared to $5.4 million in the third quarter of 2006. The segment produced another record quarter of sales of $511.0 million, up 22.8% as compared to the third quarter of 2006. In addition, all annuity product lines produced net positive cash flows for the current quarter and year to date 2007.

·   Pretax operating income in the Stable Value Products segment was $13.1 million in the current quarter compared to $10.4 million in the same period last year. Operating spreads increased in the segment by 34 basis points to 109 basis points as compared to the third quarter of 2006.  The Company re-entered the Institutional Funding Agreement market in the second quarter of 2007.  Sales in the current quarter totaled $572.2 million, compared to $162.2 million in the same quarter last year.

·   The Asset Protection segment reported pretax operating income of $9.9 million compared to a pretax operating loss of $14.4 million in the prior year.  The prior year’s quarter included a charge of $26.0 million related to the discontinued Lender’s Indemnity product line.

·   As of September 30, 2007, the Company’s assets were $41.5 billion, compared to $38.8 billion at September 30, 2006, an increase of 6.9%.

·   As of September 30, 2007, share-owners’ equity per share, excluding accumulated other comprehensive income, was $35.52 compared with $31.94 a year ago. Share-owners’ equity per share, including accumulated other comprehensive income, was $34.29 compared with $32.49 a year ago.

·   The Company reported an effective tax rate on operating income of 32.0% in the third quarter of 2007, primarily due to a decrease in the liability for uncertain tax positions.  These adjustments increased operating income by $0.04 per share in the third quarter.

·   Operating income return on average equity for the twelve months ended September 30, 2007 was 12.0%.

·   Net income return on average equity for the twelve months ended September 30, 2007 was 13.3%.

·   At September 30, 2007, below investment gradesecurities were 2.3% percent of invested assets, and problem mortgage loans and foreclosed properties remained less than one percent of the commercial mortgage loan portfolio.

·   As of September 30, 2007, the Company had $85.8 million in securities that are supported by collateral classified as sub-prime, of which, approximately 98.0% are AAA rated.

·   In addition, the Company held $278.6 million in securities that are supported by Alt-A collateral at September 30, 2007, of which, approximately 39.8% are AAA rated and 60.2% are AA rated.

2007 GUIDANCE

Based on current information, Protective is revising its previous guidance and expects 2007 operating income per diluted share to be between $3.95 and $4.10. Protective’s 2007 guidance excludes any reserve adjustments or unusual or unpredictable benefits or charges that might occur during the year. The 2007 guidance range is based upon actual year to date performance and many assumptions relating to the remaining quarter of the year, including but not limited to:  the expected pattern of financial results in the life insurance business written under our capital markets securitization structure in which profitability is expected to emerge more gradually after business is written, while results continue to be affected on an ongoing basis by the ordinary course run-off of older, profitable policies; competitive pressure 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 our participating mortgage loan portfolio). The 2007 guidance range also assumes no further positive or negative unlocking of DAC or adjustments to value of businesses acquired (“VOBA”), and diluted weighted average shares outstanding of 71.5 million.

The Company’s actual experience in 2007 will almost certainly differ from many of the assumptions 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 Form 10-K and Form 10-Q, significant changes in estimated future earnings on investment products caused by changes in the equity markets, DAC and VOBA amortization and our effective tax rate, up and down, 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.

THIRD QUARTER CONSOLIDATED RESULTS

($ in thousands; net of income tax)

	3Q2007		3Q2006
Operating income	$	69,561	$	45,526
Realized investment gains (losses) and
related amortization, net of certain
derivative gains (losses)		3,431		11,775
Net Income	$	72,992	$	57,301

($ per share; net of income tax)

	3Q2007			3Q2006
Operating income	$	0.97		$	0.63
Realized investment gains (losses) and
related amortization
Investments		0.39			0.66
Derivatives		(0.34	)		(0.49	)
Net Income	$	1.02		$	0.80

BUSINESS SEGMENT OPERATING INCOME BEFORE INCOME TAX

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

OPERATING INCOME BEFORE INCOME TAX

($ in thousands)

	3Q2007		3Q2006
LIFE MARKETING	$	39,974	$	40,270
ACQUISITIONS		30,375		32,060
ANNUITIES		6,436		5,351
STABLE VALUE PRODUCTS		13,107		10,429
ASSET PROTECTION		9,905		(14,401	)
CORPORATE AND OTHER		2,342		(3,929	)
	$	102,139	$	69,780

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

($ in thousands)	3Q2007			3Q2006
Operating income before
income tax	$	102,139		$	69,780
Realized investment gains (losses)
Stable Value Contracts		(333	)		4,521
Annuities		(266	)		3,412
Acquisitions		(351	)		16,084
Corporate and Other		6,404			1,134
Less: periodic settlements on derivatives
Corporate and Other		132			654
Related amortization of deferred policy
acquisition costs and value of businesses acquired
Acquisitions		261			5,186
Annuities		(217	)		1,193
Income before income tax	$	107,417		$	87,898

Income before income tax (which, unlike operating income before income tax, does not exclude realized 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) for the Acquisitions segment was $29.8 million for the third quarter of 2007 and $43.0 million for the third quarter of 2006. Income before income tax for the Annuities segment was $6.4 million for the third quarter of 2007 and $7.6 million for the third quarter of 2006. Income before income tax for the Stable Value segment was $12.8 million for the third quarter of 2007 and $15.0 million for the third quarter of 2006. Income before income tax for the Corporate and Other segment was $8.6 million for the third quarter of 2007 and a $3.5 million loss for the third quarter of 2006.

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:

($ in millions)

	3Q2007		3Q2006
LIFE MARKETING	$	62.9	$	54.3
ANNUITIES		511.0		416.2
STABLE VALUE PRODUCTS		572.2		162.2
ASSET PROTECTION		146.8		156.5

BUSINESS SEGMENT HIGHLIGHTS

LIFE MARKETING:  Pretax operating income for the Life Marketing segment was $40.0 million in the quarter compared to $40.3 million in the prior year’s quarter. During the third quarter of 2007, the Company released approximately $260 million in capital from the Life Marketing segment related to the completion of its Actuarial Guideline 38 (commonly known as “AXXX”) securitization. This created a shift of approximately $4.0 million in investment income to the Corporate and Other segment from the Life Marketing segment, offset by $4.0 million of favorable mortality in the third quarter.

Life insurance sales were $62.9 million for the quarter compared to $54.3 million in the third quarter of 2006. Term insurance sales in the current quarter were $36.3 million compared to $39.6 million in the prior year’s quarter.  Universal and variable universal life insurance sales in the third quarter of 2007 were $26.6 million compared to $14.7 million in the third quarter of 2006.

ACQUISITIONS:  Pretax operating income was $30.4 million for the third quarter of 2007 compared to $32.1 million in the third quarter of 2006. Unfavorable mortality in the Chase Insurance Group block reduced earnings for the current quarter by $4.9 million as compared to the same period in the prior year.

ANNUITIES:  Pretax operating income in the Annuities segment was $6.4 million in the third quarter of 2007 as compared to $5.4 million in the third quarter of 2006. Average annuity account balances were $7.2 billion for the quarter ended September 30, 2007, an increase of 20.4% over the same period last year.

The Annuities segment produced its second consecutive quarter of record sales.  Total annuity sales increased 22.8% to $511.0 million in the third quarter of 2007 as compared to the prior year’s quarter and up 19.2% over the previous quarter. Variable annuity sales increased 93.0% to $147.3 million in the third quarter of 2007 compared to the same period last year.  Fixed annuity sales were $363.7 million in the third quarter of 2007 as compared to $340.0 million in the same period last year.

STABLE VALUE PRODUCTS:  Pretax operating income in the Stable Value Products segment was $13.1 million in the third quarter of 2007 compared to $10.4 million in the third quarter of 2006. The increase in pretax operating earnings is mainly due to a 34 basis point increase in spreads to 109 basis points as compared to the same period in the prior year, partially offset by lower average account balances.

ASSET PROTECTION:  The Asset Protection segment had pretax operating income of $9.9 million for the third quarter of 2007 compared to a $14.4 million operating loss in the prior year’s quarter. The prior year’s quarter included a charge of $26.0 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 pretax operating income of $2.3 million in the third quarter of 2007 compared to a pretax operating loss of $3.9 million in the third quarter of 2006. The increase in pretax operating income is attributable to an increase in participating mortgage income and higher investment income, offset by increases to interest expense and higher corporate overhead. The increase in net investment income is due to the release of approximately $260 million in capital related to the completion of the Company’s AXXX securitization from the Life Marketing segment, which was partially offset by higher interest expense on debt.

CONFERENCE CALL

There will be a conference call for management to discuss the quarterly results with analysts and professional investors on November 7, 2007 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 November 7, 2007 until midnight November 14, 2007. 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 November 7, 2007 until midnight November 14, 2007.

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 2007 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.

RECONCILIATION OF SHARE-OWNERS’ EQUITY PER SHARE EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME PER SHARE

($ per common share outstanding as of September 30, 2007)

Total share-owners’ equity per share	$	34.29
Less:  Accumulated other comprehensive income per share		(1.23	)
Total share-owners’ equity per share
excluding accumulated other comprehensive income	$	35.52

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 September 30, 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 September 30, 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.

CALCULATION OF OPERATING INCOME RETURN ON AVERAGE EQUITY

ROLLING TWELVE MONTHS ENDED SEPTEMBER 30, 2007

($ in thousands)

Numerator:

	Three Months Ended
	Dec. 31, 2006			March 31, 2007			June 30, 2007			Sept. 30, 2007			Rolling Twelve Months Ended September 30, 2007
Net income	$	85,182		$	90,583		$	65,105		$	72,992		$	313,862
Net of:
Realized investment gains
(losses), net of income tax
Investments		3,655			6,592			(45,705	)		28,024			(7,434	)
Derivatives		17,035			(1,654	)		48,705			(24,479	)		39,607
Related amortization of
deferred policy
acquisition costs,
net of income tax benefit		(829	)		(777	)		(540	)		(29	)		(2,175	)
Add back:
Derivative gains related
to Corp. debt and investments
net of income tax		50			167			154			86			457
Operating Income	$	65,371		$	86,589		$	62,799		$	69,562		$	284,321

Denominator:

	Share-Owners’ Equity		Accumulated Other Comprehensive Income			Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
September 30, 2006	$	2,271,889	$	38,395			2,233,494
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
Total						$	11,839,509
Average						$	2,367,902
Operating Income Return on Average Equity							12.0	%

CALCULATION OF NET INCOME RETURN ON AVERAGE EQUITY

ROLLING TWELVE MONTHS ENDED SEPTEMBER 30, 2007

($ in thousands)

Numerator:

Net income – three months ended December 31, 2006	$	85,182
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 – rolling twelve months ended September 30, 2007	$	313,862

Denominator:	Share-Owners’ Equity		Accumulated Other Comprehensive Income			Share-Owners’ Equity Excluding Accumulated Other Comprehensive Income
September 30, 2006	$	2,271,889	$	38,395		$	2,233,494
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
Total						$	11,839,509
Average						$	2,367,902
Net Income Return on Average Equity							13.3	%

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; 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 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 or the inability to access capital markets could adversely impact the Company’s financial condition or results from operations. 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.

CONTACTS:

Rich Bielen

Vice Chairman and Chief Financial Officer

(205) 268-3617

Rob Shirley

Vice President, Investor Relations

(205) 268-6259

EX-99.2

Protective Life Corporation Post Office Box 2606 Birmingham, AL 35202 Phone 205-268-1000 Exhibit 99.2

SUPPLEMENTAL FINANCIAL INFORMATION

The following document contains supplemental quarterly statistical financial information for the quarter ended September 30,  2007. This document is dated November 6, 2007. Protective does not undertake a duty to update such information after such date.

All income per share results are presented on a diluted basis.

The sales statistics given in this document are used by the Company to measure the relative progress of its marketing efforts. These statistics and certain other information reported herein 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.

Information About Non-GAAP Financial Measures

Throughout this document, GAAP refers to accounting principles generally accepted in the United States of America. Operating income differs from the GAAP measure, net income, in that it excludes realized investment gains and losses (net of the related amortization of deferred acquisition costs (“DAC”)  and value of businesses acquired ("VOBA") and participating income from real estate ventures). Consolidated and segment operating income excludes net realized investment gains (losses) (net of the related amortization of 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 operating income because the derivatives are used to mitigate risk in items affecting operating income. Management believes that consolidated and segment operating income (loss) enhances an investor’s and the Company’s understanding of the Company’s results of operations, as it represents the basis on which the performance of the Company’s business is internally assessed.

As prescribed by GAAP, certain investments are recorded at their market values with the resulting unrealized gains (losses) reduced 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 rise or fall. The Company believes that an insurance company’s share-owners’ equity may be difficult to analyze without disclosing the effects of recording accumulated other comprehensive income, including unrealized gains (losses) on investments. Therefore, the Company reports the non-GAAP measure share owners’ equity per share excluding accumulated other comprehensive income, including unrealized gains (losses) on investments. This non-GAAP measure may be reconciled to the GAAP measure, share owners’ equity per share by including accumulated other comprehensive income, including unrealized gains (losses) on investments.

From time to time, the Company provides additional financial information, which is available on the Company’s web site at www.protective.com in the Analyst/Investor section under the financial report library titled Company Overview.

PROTECTIVE LIFE CORPORATION
Quarterly Financial Highlights
(Dollars in thousands)
(Unaudited)
	3RD QTR			4TH QTR			1ST QTR		2ND QTR			3RD QTR		9 MOS		9 MOS
	2006			2006			2007		2007			2007		2006		2007
Pretax Operating Income *
Life Marketing	$	40,270		$	41,913		$	65,280	$	37,834		$	39,974	$	132,276	$	143,088
Acquisitions		32,060			33,610			32,249		30,814			30,375		70,924		93,438
Annuities		5,351			8,403			5,606		6,669			6,436		16,242		18,711
Stable Value Contracts		10,429			12,500			12,186		12,355			13,107		34,573		37,648
Asset Protection		(14,401	)		6,570			10,084		11,522			9,905		3,241		31,511
Corporate & Other		(3,929	)		(2,806	)		1,777		(1,300	)		2,342		14,582		2,819
Total Pretax Operating Income	$	69,780		$	100,190		$	127,182	$	97,894		$	102,139	$	271,838	$	327,215
Balance Sheet Data
Total GAAP Assets	$	38,805,973		$	39,795,294		$	39,791,832	$	40,237,283		$	41,461,169
Share Owners' Equity	$	2,271,889		$	2,313,075		$	2,419,317	$	2,293,542		$	2,405,623
Share Owners' Equity (excluding  accumulated other comprehensive income) **	$	2,233,494		$	2,300,644		$	2,381,363	$	2,432,674		$	2,491,334
Stock Data
Closing Price	$	45.75		$	47.50		$	44.04	$	47.81		$	42.44	$	45.75	$	42.44
Average Shares Outstanding
Basic		70,811,292			70,811,686			71,017,662		71,074,976			71,074,619		70,789,982		71,055,969
Diluted		71,355,221			71,269,472			71,487,063		71,490,467			71,467,009		71,431,304		71,481,471
* "Pretax Operating Income" is a non-GAAP financial measure. "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating Income" may be compared.
See Page 5 for a reconciliation of "Pretax Operating Income" to "Income Before Income Tax".
** "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which
"Share-owners' equity excluding accumulated other comprehensive income" may be compared.
See Page 4 for a reconciliation of "Share-owners' equity excluding accumulated other comprehensive income" to "Share-owners' equity".

PROTECTIVE LIFE CORPORATION
GAAP Consolidated Statements Of Income
(Dollars in thousands)
(Unaudited)
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS			9 MOS
	2006			2006			2007			2007			2007			2006			2007
REVENUES
Gross Premiums and Policy Fees	$	637,457		$	665,975		$	657,017		$	691,165		$	676,500		$	1,651,362		$	2,024,682
Reinsurance Ceded		(371,688	)		(411,088	)		(370,997	)		(422,766	)		(368,878	)		(960,127	)		(1,162,641	)
Net Premiums and Policy Fees		265,769			254,887			286,020			268,399			307,622			691,235			862,041
Net investment income		410,746			409,233			415,682			410,436			428,792			1,010,545			1,254,910
RIGL - Derivatives		(55,302	)		25,248			(2,291	)		76,281			(37,467	)		(46,764	)		36,523
RIGL - All Other Investments		78,645			5,623			13,294			(66,609	)		43,114			98,461			(10,201	)
Other income		62,355			66,175			73,792			57,452			51,874			164,490			183,118
Total Revenues		762,213			761,166			786,497			745,959			793,935			1,917,967			2,326,391
BENEFITS & EXPENSES
Benefits and settlement expenses		488,948			462,722			467,785			458,949			504,905			1,174,493			1,431,639
Amortization of deferred policy acquisition costs and value of businesses acquired		67,199			74,421			76,380			78,036			73,863			151,383			228,279
Other operating expenses		97,711			71,719			85,138			80,130			70,663			239,706			235,930
Interest on indebtedness - subsidiaries		5,898			6,489			8,728			12,441			22,524			14,144			43,693
Interest on indebtedness - holding company - other debt		5,198			5,746			5,737			5,561			5,162			16,146			16,461
Interest on indebtedness - holding company - hybrid securities		9,361			9,402			9,401			9,401			9,401			20,854			28,203
Total Benefits and Expenses		674,315			630,499			653,169			644,518			686,518			1,616,726			1,984,205
INCOME BEFORE INCOME TAX		87,898			130,667			133,328			101,441			107,417			301,241			342,186
Income tax expense		30,597			45,485			42,745			36,336			34,425			104,862			113,506
Discontinued Operations		0			0			0			0			0			0			0
NET INCOME	$	57,301		$	85,182		$	90,583		$	65,105		$	72,992		$	196,379		$	228,680
PER SHARE DATA FOR QUARTER
Operating income-diluted *	$	0.63		$	0.91		$	1.21		$	0.88		$	0.97
RIGL - Derivatives net of gains related to corp debt, investments and annuities		(0.49	)		0.23			(0.03	)		0.68			(0.34	)
RIGL - All Other Investments, net of participating  income		0.66			0.05			0.09			(0.65	)		0.39
Discontinued Operations		0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	0.80		$	1.19		$	1.27		$	0.91		$	1.02
Average shares outstanding-diluted		71,355,221			71,269,472			71,487,063			71,490,467			71,467,009
Dividends paid	$	0.215		$	0.215		$	0.215		$	0.225		$	0.225
PER SHARE DATA FOR YTD
Operating income-diluted *	$	2.48		$	3.39		$	1.21		$	2.09		$	3.06		$	2.48		$	3.06
RIGL - Derivatives net of gains related to corp debt, investments and annuities		(0.43	)		(0.20	)		(0.03	)		0.65			0.31			(0.43	)		0.31
RIGL - All Other Investments, net of participating income		0.70			0.75			0.09			(0.56	)		(0.17	)		0.70			(0.17	)
Discontinued Operations		0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income-diluted	$	2.75		$	3.94		$	1.27		$	2.18		$	3.20		$	2.75		$	3.20
Average shares outstanding-diluted		71,431,304			71,390,513			71,487,063			71,488,786			71,481,471			71,431,304			71,481,471
Dividends paid	$	0.625		$	0.840		$	0.215		$	0.440		$	0.665		$	0.625		$	0.665
* "Operating Income" is a non-GAAP financial measure. "Net Income" is a GAAP financial measure to which "Operating Income" may be compared.

PROTECTIVE LIFE CORPORATION
GAAP Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
	3RD QTR		4TH QTR		1ST QTR		2ND QTR		3RD QTR
	2006		2006		2007		2007		2007
ASSETS
Fixed maturities	$	21,146,307	$	21,367,263	$	21,570,487	$	21,459,631	$	22,278,777
Equity securities		124,495		128,695		69,211		68,540		73,237
Mortgage loans		3,650,356		3,880,028		4,025,025		4,119,350		4,193,776
Investment real estate		52,263		38,918		38,828		12,067		9,735
Policy loans		835,817		839,502		822,930		819,387		816,958
Other long-term investments		290,304		310,225		167,571		185,958		183,667
Long-term investments		26,099,542		26,564,631		26,694,052		26,664,933		27,556,150
Short-term investments		1,377,210		1,381,073		1,064,768		809,957		1,105,393
Total investments		27,476,752		27,945,704		27,758,820		27,474,890		28,661,543
Cash		39,285		69,516		120,190		361,129		175,420
Accrued investment income		266,688		284,529		265,772		284,181		277,696
Accounts and premiums receivable		130,427		194,447		121,051		206,857		234,351
Reinsurance receivable		4,541,415		4,618,122		4,780,956		4,881,638		4,956,979
Deferred policy acquisition costs and value of businesses acquired		3,099,726		3,198,735		3,212,048		3,391,650		3,393,961
Goodwill		68,472		100,479		100,318		114,717		118,032
Property and equipment, net		44,569		43,796		42,245		43,328		42,510
Other assets		248,197		165,656		163,543		155,102		162,930
Income Tax Receivable		0		116,318		116,684		50,102		128,143
Assets Related to Separate Accounts
Variable Annuity		2,604,488		2,750,129		2,790,233		2,929,160		2,955,534
Variable Universal Life		285,954		307,863		319,972		344,529		354,070
TOTAL ASSETS	$	38,805,973	$	39,795,294	$	39,791,832	$	40,237,283	$	41,461,169

PROTECTIVE LIFE CORPORATION
GAAP Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
LIABILITIES AND SHARE-OWNERS' EQUITY
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR
LIABILITIES	2006			2006			2007			2007			2007
Policy liabilities and accruals
Future policy benefits and claims	$	14,761,428		$	15,120,996		$	15,285,420		$	15,644,544		$	15,898,097
Unearned premiums		906,542			938,934			1,020,401			1,093,468			1,131,611
Stable value product deposits		5,515,633			5,513,464			5,055,382			4,806,721			4,988,787
Annuity deposits		8,943,078			8,958,089			8,966,309			8,786,272			8,882,935
Other policyholders' funds		340,756			328,664			323,898			372,299			353,301
Securities sold under repurchase agreements		0			16,949			2,844			312,000			144,200
Other liabilities		1,110,058			1,310,145			1,227,373			1,357,877			1,310,059
Accrued income taxes		99,428			0			0			0			0
Deferred income taxes		271,894			374,486			429,481			312,154			439,495
Non-recourse funding obligations		250,000			425,000			525,000			600,000			1,175,000
Debt		471,132			479,132			466,532			444,852			482,852
Liabilities related to variable interest entities		435,756			420,395			421,684			400,000			400,000
Subordinated debt securities		524,743			524,743			524,743			524,743			524,743
Minority interest - subsidiaries		13,194			13,230			13,243			15,122			14,862
Liabilities related to separate accounts
Variable annuity		2,604,488			2,750,129			2,790,233			2,929,160			2,955,534
Variable universal life		285,954			307,863			319,972			344,529			354,070
TOTAL LIABILITIES		36,534,084			37,482,219			37,372,515			37,943,741			39,055,546
SHARE-OWNERS' EQUITY
Common stock		36,626			36,626			36,626			36,626			36,626
Additional paid-in capital		441,589			438,485			440,813			442,504			443,912
Treasury stock		(11,906	)		(11,796	)		(11,468	)		(11,181	)		(11,140	)
Cumulative Effect Adjustments -  FAS 155 & FIN 48		0			0			2,146			2,146			2,146
Unallocated ESOP shares		(1,231	)		(1,231	)		(853	)		(852	)		(852	)
Retained earnings		1,768,416			1,838,560			1,914,099			1,963,431			2,020,642
Accumulated other comprehensive income		38,395			12,431			37,954			(139,132	)		(85,711	)
Total Share-owners' Equity		2,271,889			2,313,075			2,419,317			2,293,542			2,405,623
TOTAL LIABILITIES AND EQUITY	$	38,805,973		$	39,795,294		$	39,791,832		$	40,237,283		$	41,461,169
SHARE-OWNERS' EQUITY PER SHARE
Total Share-owners' Equity	$	32.49		$	33.06		$	34.53		$	32.70		$	34.29
Accumulated other comprehensive income		0.55			0.18			0.54			(1.98	)		(1.23	)
Excluding accumulated other comprehensive income *	$	31.94		$	32.88		$	33.99		$	34.68		$	35.52
Total Share-owners' Equity	$	2,271,889		$	2,313,075		$	2,419,317		$	2,293,542		$	2,405,623
Accumulated other comprehensive income		38,395			12,431			37,954			(139,132	)		(85,711	)
Share-owners' Equity (excluding accumulated other comprehensive income) *	$	2,233,494		$	2,300,644		$	2,381,363		$	2,432,674		$	2,491,334
Common shares outstanding		69,934,277			69,964,648			70,056,891			70,140,728			70,147,926
Treasury Stock shares		3,317,683			3,287,312			3,195,069			3,111,232			3,104,034
* "Share-owners' equity excluding accumulated other comprehensive income" is a non-GAAP financial measure. "Share-owners' equity" is a GAAP financial measure to which
"Share-owners' equity excluding accumulated other comprehensive income" may be compared.

PROTECTIVE LIFE CORPORATION
Calculation of Operating Earnings Per Share
(Dollars in thousands)
(Unaudited)
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS			9 MOS
	2006			2006			2007			2007			2007			2006			2007
CALCULATION OF NET INCOME PER SHARE
Net income	$	57,301		$	85,182		$	90,583		$	65,105		$	72,992		$	196,379		$	228,680
Average shares outstanding-basic		70,811,292			70,811,686			71,017,662			71,074,976			71,074,619			70,789,982			71,055,969
Average shares outstanding-diluted		71,355,221			71,269,472			71,487,063			71,490,467			71,467,009			71,355,221			71,481,471
Net income per share-basic	$	0.81		$	1.21		$	1.28		$	0.92		$	1.03		$	2.77		$	3.22
Net income per share-diluted	$	0.80		$	1.19		$	1.27		$	0.91		$	1.02		$	2.75		$	3.20
Income from continuing operations	$	57,301		$	85,182		$	90,583		$	65,105		$	72,992		$	196,379		$	228,680
EPS (basic)	$	0.81		$	1.21		$	1.28		$	0.92		$	1.03		$	2.77		$	3.22
EPS (diluted)	$	0.80		$	1.19		$	1.27		$	0.91		$	1.02		$	2.75		$	3.20
CALCULATION OF REALIZED INVESTMENT GAINS (LOSSES) PER SHARE
RIGL - Derivatives	$	(55,302	)	$	25,248		$	(2,291	)	$	76,281		$	(37,467	)	$	(46,764	)	$	36,523
Derivative Gains related to Corporate Debt and Investments		(654	)		(77	)		(257	)		(237	)		(132	)		(2,659	)		(626	)
Derivative Gains related to Annuities		1,808			960			(254	)		(1,351	)		(193	)		1,787			(1,798	)
RIGL - All Other Investments, net of participating income		78,645			5,623			10,144			(70,316	)		43,114			84,967			(17,058	)
Related amortization of DAC & VOBA		(6,379	)		(1,276	)		(1,196	)		(830	)		(44	)		(7,928	)		(2,070	)
		18,118			30,478			6,146			3,547			5,278			29,403			14,971
Tax effect		(6,341	)		(10,667	)		(2,151	)		(1,242	)		(1,847	)		(10,291	)		(5,240	)
	$	11,777		$	19,811		$	3,995		$	2,305		$	3,431		$	19,112		$	9,731
RIGL - Derivatives per share-diluted	$	(0.49	)	$	0.23		$	(0.03	)	$	0.68		$	(0.34	)	$	(0.43	)	$	0.31
RIGL - All Other Investments per share-diluted	$	0.66		$	0.05		$	0.09		$	0.65		$	0.39		$	0.70		$	(0.17	)
OPERATING INCOME PER SHARE *
Net income per share-diluted	$	0.80		$	1.19		$	1.27		$	0.91		$	1.02		$	2.75		$	3.20
Discontinued operations		0			0			0			0			0			0			0
RIGL - Derivatives per share-diluted		(0.49	)		0.23			(0.03	)		0.68			(0.34	)		(0.43	)		0.31
RIGL - All Other Investments, net of participating income per share-diluted		0.66			0.05			0.09			(0.65	)		0.39			0.70			(0.17	)
Change in accounting principle		0.00			0.00			0.00			0.00			0.00			0.00			0.00
Operating income per share-diluted	$	0.63		$	0.91		$	1.21		$	0.88		$	0.97		$	2.48		$	3.06
NET OPERATING INCOME *
Net income	$	57,301		$	85,182		$	90,583		$	65,105		$	72,992		$	196,379		$	228,680
RIGL - Derivatives net of tax & gains related to corp debt, investments & annuities		(35,197	)		16,985			(1,822	)		48,551			(24,565	)		(30,964	)		22,164
RIGL - All Other Investments net of tax, amortization, and participating income		46,972			2,826			5,816			(46,245	)		27,996			50,075			(12,433	)
Discontinued operations		0			0			0			0			0			0			0
Change in accounting principle		0			0			0			0			0			0			0
Net operating income	$	45,526		$	65,371		$	86,589		$	62,799		$	69,561		$	177,268		$	218,949
PRETAX OPERATING INCOME **
Income before income tax and discontinued operations	$	87,898		$	130,667		$	133,328		$	101,441		$	107,417		$	301,241		$	342,186
RIGL - Derivatives		(55,302	)		25,248			(2,291	)		76,281			(37,467	)		(46,764	)		36,523
Derivative gains related to corporate debt, investments & annuities		1,154			882			(511	)		(1,588	)		(325	)		(872	)		(2,424	)
RIGL - All Other Investments, net of participating income		78,645			5,623			10,144			(70,316	)		43,114			84,967			(17,058	)
Related amortization of DAC & VOBA		(6,379	)		(1,276	)		(1,196	)		(830	)		(44	)		(7,928	)		(2,070	)
Pretax operating income	$	69,780		$	100,190		$	127,182		$	97,894		$	102,139		$	271,838		$	327,215
* "Net Operating Income" and "Operating Income Per Share" are non-GAAP financial measures. "Net Income" and "Net Income Per Share" are GAAP
financial measures to which "Net Operating Income" and "Operating Income Per Share" may be compared.
** "Pretax Operating Income" is a non-GAAP financial measure. "Income Before Income Tax" is a GAAP financial measure to which "Pretax Operating
Income" may be compared.

PROTECTIVE LIFE CORPORATION
Invested Asset Summary
(Dollars in millions)
(Unaudited)
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR
	2006			2006			2007			2007			2007
Total Portfolio
Fixed Income	$	21,146.3		$	21,367.3		$	21,570.5		$	21,459.6		$	22,278.8
Mortgage Loans		3,650.4			3,880.0			4,025.0			4,119.3			4,193.8
Real Estate		52.3			38.9			38.8			12.1			9.7
Equities		124.5			128.7			69.2			68.5			73.2
Policy Loans		835.8			839.5			822.9			819.4			817.0
Short Term Investments		1,377.2			1,381.1			1,064.8			810.0			1,105.4
Other Long Term Investments		290.3			310.2			167.6			186.0			183.6
Total Invested Assets	$	27,476.8		$	27,945.7		$	27,758.8		$	27,474.9		$	28,661.5
Fixed Income
Corporate Bonds	$	10,247.2		$	10,223.1		$	10,796.0		$	10,972.0		$	11,474.8
Mortgage Backed Securities		8,299.4			7,870.3			8,331.8			8,004.5			8,597.5
US Govt Bonds		654.4			1,373.8			529.4			570.8			260.4
Public Utilities		1,821.0			1,784.5			1,794.4			1,820.3			1,853.8
States, Municipals and Political Subdivisions		124.0			115.3			118.6			91.7			92.0
Preferred Securities		0.1			0.1			0.1			0.1			0.1
Convertibles and Bonds with Warrants		0.2			0.2			0.2			0.2			0.2
Total Fixed Income Portfolio	$	21,146.3		$	21,367.3		$	21,570.5		$	21,459.6		$	22,278.8
Fixed Income - Quality
AAA		44.8	%		46.2	%		44.1	%		42.5	%		42.3	%
AA		6.6	%		6.8	%		8.4	%		8.5	%		9.5	%
A		18.5	%		18.4	%		19.1	%		19.8	%		18.5	%
BBB		28.1	%		27.0	%		26.7	%		26.7	%		26.6	%
BB or Less		2.0	%		1.6	%		1.7	%		2.5	%		3.1	%
Redeemable Preferred Stock		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Mortgage Loans - Type
Retail		68.1	%		68.3	%		66.9	%		65.9	%		66.4	%
Apartments		10.6	%		10.0	%		11.2	%		11.6	%		10.2	%
Office Buildings		11.7	%		11.9	%		12.2	%		12.8	%		13.0	%
Warehouses		7.2	%		7.1	%		7.0	%		7.6	%		8.2	%
Miscellaneous		2.4	%		2.7	%		2.7	%		2.1	%		2.2	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Problem Mortgage Loans
60 Days Past Due	$	0.0		$	0.0		$	2.0		$	0.0		$	0.0
90 Days Past Due		6.6			0.0			0.0			0.0			21.6
Renegotiated Loans		0.2			0.1			0.1			2.1			2.1
Foreclosed Real Estate		5.1			15.7			0.0			0.0			0.0
	$	11.9		$	15.8		$	2.1		$	2.1		$	23.7

PROTECTIVE LIFE CORPORATION
Life Marketing and Acquisitions - Quarterly Earnings Trends
(Dollars in thousands)
(Unaudited)
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS			9 MOS
	2006			2006			2007			2007			2007			2006			2007
LIFE MARKETING
REVENUES
Gross Premiums and Policy Fees	$	327,355		$	349,650		$	345,685		$	361,624		$	360,450		$	978,215		$	1,067,759
Reinsurance Ceded		(206,269	)		(254,542	)		(207,614	)		(239,702	)		(203,285	)		(652,048	)		(650,601	)
Net Premiums and Policy Fees		121,086			95,108			138,071			121,922			157,165			326,167			417,158
Net investment income		80,444			79,726			81,103			82,291			79,437			228,771			242,831
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		32,278			43,539			51,365			30,992			27,514			94,352			109,871
Total Revenues		233,808			218,373			270,539			235,205			264,116			649,290			769,860
BENEFITS & EXPENSES
Benefits and settlement expenses		147,213			130,396			149,329			152,147			182,010			405,544			483,486
Amortization of deferred policy acquisition costs and value of businesses acquired		21,689			17,436			28,698			25,564			27,807			42,791			82,069
Other operating expenses		24,636			28,628			27,232			19,660			14,325			68,679			61,217
Total Benefits and Expenses		193,538			176,460			205,259			197,371			224,142			517,014			626,772
INCOME BEFORE INCOME TAX	$	40,270		$	41,913		$	65,280		$	37,834		$	39,974		$	132,276		$	143,088
ACQUISITIONS
REVENUES
Gross Premiums and Policy Fees	$	188,491		$	199,891		$	194,482		$	214,464		$	198,381		$	314,680		$	607,327
Reinsurance Ceded		(112,636	)		(110,416	)		(118,242	)		(137,370	)		(122,347	)		(145,895	)		(377,959	)
Net Premiums and Policy Fees		75,855			89,475			76,240			77,094			76,034			168,785			229,368
Net investment income		152,834			152,686			148,986			145,263			143,342			260,950			437,591
RIGL - Derivatives		(58,544	)		13,379			(3,703	)		71,782			(38,782	)		(58,544	)		29,297
RIGL - All Other Investments		74,628			(747	)		7,933			(69,216	)		38,431			74,628			(22,852	)
Other income		4,774			354			2,248			2,525			2,405			5,684			7,178
Total Revenues		249,547			255,147			231,704			227,448			221,430			451,503			680,582
BENEFITS & EXPENSES
Benefits and settlement expenses		178,946			181,149			161,904			158,284			162,460			313,384			482,648
Amortization of deferred policy acquisition costs and value of businesses acquired		15,142			30,528			20,554			19,977			18,435			28,286			58,966
Other operating expenses		12,501			(1,182	)		13,373			16,584			10,772			28,011			40,729
Total Benefits and Expenses		206,589			210,495			195,831			194,845			191,667			369,681			582,343
INCOME BEFORE INCOME TAX		42,958			44,652			35,873			32,603			29,763			81,822			98,239
Adjustments to Reconcile to Operating Income:
Less:  RIGL - Derivatives		(58,544	)		13,379			(3,703	)		71,782			(38,782	)		(58,544	)		29,297
Less:  RIGL - All Other Investments		74,628			(747	)		7,933			(69,216	)		38,431			74,628			(22,852	)
Add back: Related amortization of deferred policy acquisition costs and value of businesses acquired											777			261			5,186			1,644
PRETAX OPERATING INCOME	$	32,060		$	33,610		$	32,249		$	30,814		$	30,375		$	70,924		$	93,438

PROTECTIVE LIFE CORPORATION
Annuities, Stable Value Contracts, and Asset Protection
Quarterly Earnings Trends (Dollars in thousands)
(Unaudited)
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS			9 MOS
	2006			2006			2007			2007			2007			2006			2007
ANNUITIES
REVENUES
Gross Premiums and Policy Fees	$	7,794		$	8,136		$	8,262		$	8,633		$	8,481		$	23,938		$	25,376
Reinsurance Ceded		0			0			0			0			0			0			0
Net Premiums and Policy Fees		7,794			8,136			8,262			8,633			8,481			23,938			25,376
Net investment income		56,475			60,326			60,861			64,890			69,313			164,834			195,064
RIGL - Derivatives		(1,808	)		(960	)		254			1,351			193			(1,787	)		1,798
RIGL - All Other Investments		3,412			(223	)		1,664			53			(266	)		4,920			1,451
Other income		2,469			2,725			2,713			2,797			2,769			7,711			8,279
Total Revenues		68,342			70,004			73,754			77,724			80,490			199,616			231,968
BENEFITS & EXPENSES
Benefits and settlement expenses		48,233			48,809			55,949			56,101			62,731			142,429			174,781
Amortization of deferred policy acquisition costs and value of businesses acquired		7,778			7,585			5,128			9,909			5,022			20,287			20,059
Other operating expenses		4,761			5,116			5,997			5,045			6,350			18,480			17,392
Total Benefits and Expenses		60,772			61,510			67,074			71,055			74,103			181,196			212,232
INCOME BEFORE INCOME TAX		7,570			8,494			6,680			6,669			6,387			18,420			19,736
Adjustments to Reconcile to Operating Income:
Less:  RIGL - Derivatives		(1,808	)		(960	)		254			1,351			193			(1,787	)		1,798
Add back:  Derivative gains related to equity indexed annuities		(1,808	)		(960	)		254			1,351			193			(1,787	)		1,798
Less:  RIGL - All Other Investments		3,412			(223	)		1,664			53			(266	)		4,920			1,451
Add back:  Related amortization of deferred policy acquisition costs		1,193			(314	)		590			53			(217	)		2,742			426
PRETAX OPERATING INCOME	$	5,351		$	8,403		$	5,606		$	6,669		$	6,436		$	16,242		$	18,711
STABLE VALUE CONTRACTS
REVENUES
Gross Premiums and Policy Fees	$	0		$	0		$	0		$	0		$	0		$	0		$	0
Reinsurance Ceded		0			0			0			0			0			0			0
Net Premiums and Policy Fees		0			0			0			0			0			0			0
Net investment income		80,734			80,336			79,101			71,478			73,501			245,317			224,080
RIGL - Derivatives		(13	)		210			4,270			(104	)		(148	)		397			4,018
RIGL - All Other Investments		4,534			574			(2,845	)		(479	)		(185	)		(20	)		(3,509	)
Other income		0			0			0			0			0			0			0
Total Revenues		85,255			81,120			80,526			70,895			73,168			245,694			224,589
BENEFITS & EXPENSES
Benefits and settlement expenses		68,154			65,819			64,719			57,097			58,340			204,032			180,156
Amortization of deferred policy acquisition costs and value of businesses acquired		1,064			1,009			1,168			987			985			3,429			3,140
Other operating expenses		1,087			1,008			1,028			1,039			1,069			3,283			3,136
Total Benefits and Expenses		70,305			67,836			66,915			59,123			60,394			210,744			186,432
INCOME BEFORE INCOME TAX		14,950			13,284			13,611			11,772			12,774			34,950			38,157
Adjustments to Reconcile to Operating Income:
Less:  RIGL-Derivatives		(13	)		210			4,270			(104	)		(148	)		397			4,018
Less:  RIGL-All Other Investments		4,534			574			(2,845	)		(479	)		(185	)		(20	)		(3,509	)
PRETAX OPERATING INCOME	$	10,429		$	12,500		$	12,186		$	12,355		$	13,107		$	34,573		$	37,648
ASSET PROTECTION
REVENUES
Gross Premiums and Policy Fees	$	104,564		$	99,067		$	99,420		$	97,985		$	101,189		$	305,457		$	298,594
Reinsurance Ceded		(52,775	)		(46,126	)		(45,138	)		(45,689	)		(43,244	)		(162,165	)		(134,071	)
Net Premiums and Policy Fees		51,789			52,941			54,282			52,296			57,945			143,292			164,523
Net investment income		8,649			8,812			9,212			9,467			10,188			24,533			28,867
Realized investment gains (losses)		0			0			0			0			0			0			0
Other income		20,597			18,087			16,529			20,455			19,330			48,662			56,314
Total Revenues		81,035			79,840			80,023			82,218			87,463			216,487			249,704
BENEFITS & EXPENSES
Benefits and settlement expenses		26,137			27,202			25,815			26,113			30,779			71,216			82,707
Amortization of deferred policy acquisition costs and value of businesses acquired		20,713			17,111			20,703			21,464			21,291			53,954			63,458
Other operating expenses		48,586			28,957			23,421			23,119			25,488			88,076			72,028
Total Benefits and Expenses		95,436			73,270			69,939			70,696			77,558			213,246			218,193
INCOME BEFORE INCOME TAX	$	(14,401	)	$	6,570		$	10,084		$	11,522		$	9,905		$	3,241		$	31,511

PROTECTIVE LIFE CORPORATION
Corporate & Other Segment - Quarterly Earnings Trends
(Dollars in thousands)
(Unaudited)
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			9 MOS			9 MOS
	2006			2006			2007			2007			2007			2006			2007
REVENUES
Gross Premiums and Policy Fees	$	9,253		$	9,231		$	9,169		$	8,458		$	7,999		$	29,072		$	25,626
Reinsurance Ceded		(8	)		(4	)		(4	)		(4	)		(2	)		(19	)		(10	)
Net Premiums and Policy Fees		9,245			9,227			9,165			8,454			7,997			29,053			25,616
Net investment income		31,610			27,347			36,419			37,047			53,011			86,140			126,477
RIGL - Derivatives		5,063			12,619			(3,112	)		3,252			1,270			13,170			1,410
RIGL - All Other Investments		(3,929	)		6,019			6,542			3,033			5,134			18,933			14,709
Other income		2,237			1,470			937			683			(144	)		8,081			1,476
Total Revenues		44,226			56,682			49,951			52,469			67,268			155,377			169,688
BENEFITS & EXPENSES
Benefits and settlement expenses		20,265			9,347			10,069			9,207			8,585			37,888			27,861
Amortization of deferred policy acquisition costs and value of businesses acquired		813			752			129			135			323			2,636			587
Other operating expenses		26,597			30,829			37,953			42,086			49,746			84,321			129,785
Total Benefits and Expenses		47,675			40,928			48,151			51,428			58,654			124,845			158,233
INCOME BEFORE INCOME TAX		(3,449	)		15,754			1,800			1,041			8,614			30,532			11,455
Adjustments to Reconcile to Operating Income:
Less:  RIGL-Derivatives		5,063			12,619			(3,112	)		3,252			1,270			13,170			1,410
Less:  RIGL-All Other Investments, net of participating income		(3,929	)		6,019			3,392			(674	)		5,134			5,439			7,852
Add back:  Derivative gains related to corporate debt and investments		654			77			257			237			132			2,659			626
PRETAX OPERATING INCOME	$	(3,929	)	$	(2,807	)	$	1,777		$	(1,300	)	$	2,342		$	14,582		$	2,819

PROTECTIVE LIFE CORPORATION
Life Marketing and Annuities Data
(Dollars in thousands)
(Unaudited)
	2006		2006		2007		2007		2007		9 MOS		9 MOS
	3RD QTR		4TH QTR		1ST QTR		2ND QTR		3RD QTR		2006		2007
LIFE MARKETING
SALES BY PRODUCT
Term	$	39,552	$	32,619	$	33,492	$	43,955	$	36,326	$	112,761	$	113,773
U/L		13,028		15,090		14,197		18,515		24,761		60,625		57,473
VUL		1,697		1,914		1,828		2,181		1,826		4,610		5,835
Total	$	54,277	$	49,623	$	49,517	$	64,651	$	62,913	$	177,996	$	177,081
SALES BY DISTRIBUTION
Brokerage general agents	$	33,733	$	29,438	$	29,879	$	41,210	$	35,919	$	104,556	$	107,008
Independent agents		7,814		9,932		8,328		10,629		11,461		30,830		30,418
Stockbrokers/banks		7,116		6,983		8,493		9,452		9,651		28,765		27,596
Direct Response & BOLI		5,614		3,269		2,817		3,360		5,882		13,845		12,059
Total	$	54,277	$	49,622	$	49,517	$	64,651	$	62,913	$	177,996	$	177,081
ANNUITIES
SALES
Variable Annuity	$	76,299	$	91,526	$	79,671	$	123,263	$	147,275	$	231,236	$	350,209
Immediate Annuity		59,292		73,057		55,201		61,517		58,292		153,450		175,010
Single Premium Deferred Annuity		151,172		124,688		75,838		114,326		130,293		151,172		320,457
Market Value Adjusted Annuity		112,511		99,166		105,195		121,839		170,122		199,348		397,156
Equity Indexed Annuity		16,975		12,648		7,628		7,872		4,987		64,649		20,487
Total	$	416,249	$	401,085	$	323,533	$	428,817	$	510,969	$	799,855	$	1,263,319
PRETAX OPERATING INCOME
Variable Annuity	$	3,484	$	5,701	$	4,673	$	5,114	$	3,565	$	14,189	$	13,352
Fixed Annuity		1,867		2,702		933		1,555		2,871		2,054		5,359
Total	$	5,351	$	8,403	$	5,606	$	6,669	$	6,436	$	16,243	$	18,711
DEPOSIT BALANCE
VA Fixed Annuity	$	209,135	$	206,237	$	194,479	$	214,966	$	234,950
VA Separate Account Annuity		2,424,837		2,559,452		2,594,554		2,725,302		2,750,591
Sub-total		2,633,972		2,765,689		2,789,033		2,940,268		2,985,541
Fixed Annuity		3,521,346		3,780,062		3,929,194		4,164,402		4,468,045
Total	$	6,155,318	$	6,545,751	$	6,718,227	$	7,104,670	$	7,453,586

PROTECTIVE LIFE CORPORATION
Stable Value Contracts and Asset Protection Data
(Dollars in thousands)
(Unaudited)
	2006			2006			2007			2007			2007			9 MOS			9 MOS
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			2006			2007
STABLE VALUE CONTRACTS
SALES
GIC	$	107,500		$	29,000		$	2,500		$	75,000		$	54,500		$	265,100		$	132,000
GFA - Direct Institutional		0			0			0			0			0			0			0
GFA - Non-Registered		0			0			0			0			0			0			0
GFA - Registered - Institutional		0			0			0			50,000			475,000			0			525,000
GFA - Registered - Retail		54,743			31,164			13,120			10,014			42,735			108,662			65,869
Total	$	162,243		$	60,164		$	15,620		$	135,014		$	572,235		$	373,762		$	722,869
DEPOSIT BALANCE
Quarter End Balance	$	5,515,633		$	5,513,464		$	5,055,382		$	4,806,721		$	4,988,787		$	5,515,633		$	4,988,787
Average Daily Balance	$	5,662,236		$	5,520,061		$	5,461,832		$	4,780,565		$	4,826,108		$	5,829,589		$	5,021,185
OPERATING SPREAD		0.75	%		0.93	%		0.92	%		1.04	%		1.09	%		0.81	%		1.01	%
	2006			2006			2007			2007			2007			9 MOS			9 MOS
	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			2006			2007
ASSET PROTECTION
SALES
Credit	$	41,488		$	27,482		$	28,082		$	31,579		$	27,686		$	113,287		$	87,347
Service Contracts		79,183			73,534			72,937			86,519			90,954			206,247			250,410
Other		35,792			39,456			38,030			35,796			28,175			75,613			102,001
Total	$	156,463		$	140,472		$	139,049		$	153,894		$	146,815		$	395,147		$	439,758