The Company leases administrative and marketing office space in approximately 53 cities including approximately 143,034 square feet in Birmingham, with most leases being for periods of three to five years. The aggregate annualized rent is approximately $8.7 million.
Premium and policy fees $ 1,656,108 $ 1,299,317 $ 1,122,010 $ 856,549 $ 802,327 Reinsurance ceded (822,450) (538,033) (459,215) (334,214) (308,174) --------- --------- --------- --------- --------- Net of reinsurance ceded 833,658 761,284 662,795 522,335 494,153 Net investment income.................. 737,284 676,401 636,396 591,376 517,483 Realized investment gains (losses)..... (7,043) (1,057) 3,121 830 5,510 Other income........................... 170,068 97,254 64,103 32,784 20,857 --------- --------- --------- --------- --------- Total revenues..................... 1,733,967 1,533,882 1,366,415 1,147,325 1,038,003 Benefits and expenses.................. 1,480,172 1,278,107 1,145,691 967,952 898,262 --------- --------- --------- --------- --------- Income tax expense..................... 90,858 92,079 77,845 60,987 47,512 Minority interest...................... 9,461 10,606 12,098 6,393 3,217 Extraordinary loss(1) 1,763 --------- --------- --------- --------- --------- Net income............................. $ 153,476 $ 151,327 $ 130,781 $ 111,993 $ 89,012 ========= ========= ========= ========= ========= PER SHARE DATA(2) Income before extraordinary loss - basic....................... $ 2.33 $ 2.34 $ 2.06 $ 1.79 $ 1.47 Net income per share - basic........... $ 2.33 $ 2.31 $ 2.06 $ 1.79 $ 1.47 Average shares outstanding - basic..... 65,832,349 65,604,311 63,521,587 62,429,250 60,570,782 Operating income per share - diluted(3) Income before extraordinary $ 2.39 $ 2.34 $ 2.02 $ 1.78 $ 1.44 loss - diluted..................... Net income per share - diluted......... $ 2.32 $ 2.32 $ 2.04 $ 1.78 $ 1.46 Average shares $ 2.32 $ 2.29 $ 2.04 $ 1.78 $ 1.46 outstanding - diluted.............. Cash dividends......................... 66,281,128 66,161,367 64,087,744 62,849,618 60,969,664 Share-owners’ equity................... $ .51 $ .47 $ .43 $ .39 $ .35 Share-owners’ equity excluding net $ 17.26 $ 13.41 $ 14.65 $ 12.30 $ 9.99 unrealized gains and losses on investments..................... $ 18.05 $ 15.68 $ 13.80 $ 11.30 $ 9.88
DECEMBER 31 ---------------------------------------------------------------------------- 2000 1999 1998 1997 1996 -------------- --------------- -------------- -------------- --------------- (dollars in thousands) BALANCE SHEET DATA Total assets........................... $ 15,145,633 $ 12,994,164 $ 11,989,495 $ 10,511,635 $ 8,263,205 Long-term debt......................... $ 306,125 $ 181,023 $ 152,286 $ 120,000 $ 168,200 Total debt............................. $ 306,125 $ 236,023 $ 172,035 $ 120,000 $ 181,000 9% Cumulative Monthly Income Preferred Securities, Series A $ 55,000 $ 55,000 $ 55,000 8.25% Trust Originated Preferred Securities $ 75,000 $ 75,000 $ 75,000 $ 75,000 6.5% FELINE PRIDES $ 115,000 $ 115,000 $ 115,000 $ 115,000 Share-owners’ equity $ 1,114,058 $ 865,223 $ 944,194 $ 758,197 $ 615,316 Share-owners’ equity excluding net unrealized gains and losses on investments $ 1,165,431 $ 1,011,304 $ 889,137 $ 696,470 $ 608,628
(1) Due to early extinguishments of debt, net of income tax. (2) Prior periods have been restated to reflect a two-for-one stock split on April 1, 1998. (3) Net income excluding realized gains and losses and related amortization and extraordinary loss.
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF INCOME PROTECTIVE LIFE CORPORATION (Parent Company) Years Ended December 31, 2000, 1999, and 1998 (in thousands)
EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES* 107,465 130,177 57,057 ------- ------- ------- INCOME BEFORE EXTRAORDINARY LOSS 153,476 153,090 130,781
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS PROTECTIVE LIFE CORPORATION (Parent Company) (in thousands)
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT PROTECTIVE LIFE CORPORATION (Parent Company)
On February 16, 2001, the Company issued approximately 3.9 million shares of common stock in settlement of stock purchase contracts under the FELINE PRIDES. In the transaction, substantially all of the TOPrS comprising part of the FELINE PRIDES, and the underlying subordinated debt, were redeemed. On February 28, 2001, the Company issued $100.0 million of Floating Rate Senior Notes due 2003.
Interest Paid to Subsidiary* 14,085 17,218 20,351 ------ ------ ------ $28,781 $ 29,433 $29,636 ====== ====== ====== Income Taxes (reduced by amounts received from affiliates under a tax sharing agreement) $32,039 $(18,584) $ (464) ====== ====== === NONCASH INVESTING AND FINANCING ACTIVITIES
Reissuance of Treasury Stock to ESOP $ 255 $ 440 $ 205 === === ===
Change in unallocated Stock in ESOP $ 357 $ 234 $ 315 === === ===
NOTE 4 - SALE OF AFFILIATE On March 23, 2000, the Company completed the sale of its Hong Kong affiliate. Included as a component of other income is $24.8 million relating to the transaction.
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION PROTECTIVE LIFE CORPORATION AND SUBSIDIARIES (in thousands)
COL. A COL. B COL. C COL. D COL. E COL. F COL. G COL. H COL. I COL. J ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ GIC, ANNUITY AMORTIZATION DEFERRED DEPOSITS AND OF DEFERRED POLICY FUTURE POLICY OTHER NET PREMIUMS NET BENEFITS AND POLICY OTHER ACQUISITION BENEFITS AND UNEARNED POLICYHOLDERS’ AND POLICY INVESTMENT SETTLEMENT ACQUISITIONS OPERATING SEGMENT COSTS CLAIMS PREMIUMS FUNDS FEES INCOME(1) EXPENSES COSTS EXPENSES(1) -------------------------------- ---------------- --------------- --------------- ---------------- --------------- --------------- ---------------- ---------------- -------------- Year Ended December 31, 2000: Individual Life $ 354,320 $1,222,673 $ 315 $ 14,878 $ 73,826 $ 60,823 $ 70,365 $ 33,767 $ 59,882 West Coast 276,518 1,499,174 0 86,227 25,987 91,688 79,065 15,003 (12,760) Acquisitions 223,430 1,364,830 484 238,466 102,997 116,940 125,151 17,081 24,939 Dental Benefits 11,788 96,049 2,721 63,530 325,797 11,193 216,557 6,386 99,261 Financial Institutions 112,135 292,634 931,735 3,963 220,421 47,029 135,494 50,132 90,958 Stable Value Products 2,144 162,236 0 3,177,863 0 243,132 207,143 900 3,881 Investment Products 127,334 306,021 0 1,633,203 30,127 132,314 109,607 24,156 25,403 Corporate and Other 81,711 88,340 2,261 2,160 54,503 34,165 46,183 2,149 49,469 --------- --------- ------- --------- ------- ------- ------- ------- ------- TOTAL $1,189,380 $5,031,957 $937,516 $5,220,290 $833,658 $737,284 $989,565 $149,574 $341,033 ========= ========= ======= ========= ======= ======= ======= ======= ======= Year Ended December 31, 1999: Individual Life $ 372,359 $1,210,187 $ 338 $ 17,159 $ 92,506 $ 60,070 $ 74,455 $ 23,434 $ 68,923 West Coast 200,605 1,279,554 0 74,831 23,207 78,128 73,176 6,047 (2,649) Acquisitions 235,903 1,374,445 558 260,267 114,866 129,806 129,581 19,444 31,967 Dental Benefits 25,819 130,463 3,076 79,032 327,464 14,172 213,005 8,218 91,468 Financial Institutions 51,339 149,746 504,965 9,045 107,969 24,506 55,899 24,718 57,382 Stable Value Products 1,156 167,415 0 2,680,009 0 210,208 175,290 744 4,709 Investment Products 124,335 254,492 0 1,320,453 24,248 106,645 88,642 19,820 21,014 Corporate and Other 8 2,852 34 88 71,024 52,866 54,534 2,487 35,799 --------- --------- ------- --------- ------- ------- ------- ------- ------- TOTAL $1,011,524 $4,569,154 $508,971 $4,440,884 $761,284 $ 676,401 $864,582 $104,912 $308,613 ========= ========= ======= ========= ======= ======= ======= ======= ======= Year Ended December 31, 1998: Individual Life $ 301,941 $1,054,253 $ 355 $ 10,802 $126,166 $ 55,903 $106,306 $ 30,543 $ 48,231 West Coast 144,455 1,006,280 0 77,254 22,380 63,492 54,617 4,924 5,354 Acquisitions 255,347 1,383,759 553 233,846 96,735 112,154 112,051 18,894 28,194 Dental Benefits 23,836 114,693 5,728 81,572 227,692 11,916 156,857 6,859 60,038 Financial Institutions 39,212 215,451 385,006 105,434 112,272 25,313 52,629 28,526 55,197 Stable Value Products 1,448 172,674 0 2,691,697 0 213,136 178,745 735 2,876 Investment Products 75,177 194,726 0 1,233,528 18,809 105,890 85,045 17,213 19,637 Corporate and Other 9 944 39 88 58,741 48,592 39,515 3,494 29,211 ------- --------- ------- --------- ------- -------- ------- ------- ------- TOTAL $ 841,425 $4,142,780 $391,681 $4,434,221 $662,795 $ 636,396 $785,765 $111,188 $248,738 ======= ========= ======= ========= ======= ======= ======= ======= ======= (1) Allocations of Net Investment Income and Other Operating Expenses are based on a number of assumptions and estimates and results would change if different methods were applied.
SCHEDULE IV - REINSURANCE PROTECTIVE LIFE CORPORATION AND SUBSIDIARIES (dollars in thousands)
COL. A COL. B COL. C COL. D COL. E COL. F ------ ------ ------ ------ ------ ------ PERCENTAGE OF CEDED TO OTHER ASSUMED FROM AMOUNT ASSUMED GROSS AMOUNT COMPANIES OTHER COMPANIES NET AMOUNT TO NET ----------------- ----------------- ---------------- ----------------- ---------------- Year Ended December 31, 2000: Life insurance in force $153,371,754 $128,374,583 $ 17,050,342 $ 42,047,513 40.6% =========== =========== ========== ========== ==== Premiums and policy fees: Life insurance $ 691,153 $ 496,715 $ 112,669 $ 307,107 36.7% Accident/health insurance 655,370 261,940 24,393 417,823 5.8% Property and liability insurance 159,355 63,795 13,168 108,728 12.1% --------- ------- ------- ------- TOTAL $ 1,505,878 $ 822,450 $ 150,230 $ 833,658 ========= ======= ======= ======= Year Ended December 31, 1999: Life insurance in force $112,726,959 $ 92,566,755 $ 17,089,627 $ 37,249,831 45.9% =========== ========== ========== ========== ==== Premiums and policy fees: Life insurance $ 540,430 $ 364,680 $ 131,856 $ 307,606 42.9% Accident/health insurance 565,545 172,852 27,266 419,959 6.5% Property and liability insurance 34,110 501 110 33,719 0.3% --------- ------- ------- ------- TOTAL $ 1,140,085 $ 538,033 $ 159,232 $ 761,284 ========= ======= ======= ======= Year Ended December 31, 1998: Life insurance in force $ 91,980,657 $ 64,846,246 $ 18,010,434 $ 45,144,845 39.9% ========== ========== ========== ========== ==== Premiums and policy fees: Life insurance $ 537,000 $ 294,363 $ 87,964 $ 330,601 26.6% Accident/health insurance 456,378 164,852 14,279 305,805 4.7% Property and liability insurance 26,389 0 0 26,389 0.0% --------- ------- ------- ------- TOTAL $ 1,019,767 $ 459,215 $ 102,243 $ 662,795 ========= ======= ======= =======