Protective Life Corp.
) reported third quarter 2013 net operating earnings of 98 cents
per share, a penny ahead of the Zacks Consensus Estimate of 97
cents per share. Earnings also surged 29% year over year.
The earnings beat came from strong contribution from Protective
Life's Stable Value Products and Asset Protection segment.
However, low interest rate environment, an unsettled regulatory
environment and intense competition across all retail product
lines was a partial offset to the strong results.
Including one-time items, net income of Protective Life came in
at $1.15 per share, up 57.5% year over year.
Total revenue of Protective Life was $892.8 million, down 6.3%
year over year.
Protective Life's gross premium and policy fees improved 4.2%
year over year to $684.9 million.
Net investment income of Protective Life came in at $467.9
million, up 3.0% year over year.
Total benefits and expenses came in at $801.8 million, down 1.1%
year over year.
segment reported before-tax operating income of $29.2 million, up
1.7% year over year. The decline came on the back of favorable
change in unlocking. Sales were $32.7 million, up 5% year over
Before tax, operating income of
segment was $29.4 million, down 36% year over year. The decrease
was due to unfavorable variance related to prospective unlocking.
segment reported before tax operating income of $50.9 million
which increased more than 5 times compared with $9.4 million in
the year ago quarter. The increase was primarily driven by
favorable change in unlocking. Annuities sale decreased 41% year
over year to $538.2 million.
Higher participating mortgage income and higher operating spread
led to a 47% year over year increase in tax operating income at
the company's Stable Value segment which came in $19.2 million.
The segment's sales, however, declined 45% year over year to
segment reported before-tax operating income of $6.8 million, up
62% year over year. The increase came from increase in credit
insurance earnings. Sales increased 11% year over year to $130.0
Corporate & Other
segment pre-tax operating loss was $6.6 million compared to an
operating loss of $14.3 million in the year-ago quarter.
Share Repurchase Update
During the reported quarter, Protective Life did not make any
repurchases and has shares worth $170 million remaining under its
authorization. Additionally, Protective Life stated that it might
not undertake any repurchases for the rest of the year due to the
recent completion of the acquisition of MONY Life Insurance
Company and reinsurance of a portion of the MONY Life Insurance
Company of America.
Protective Life carries a Zacks Rank #3 (Hold). Other players,
StanCorp Financial Group
) with Zacks Rank #1 (Strong Buy) beat the Zacks Consensus
American Financial Group Inc.
) with Zacks Rank #2 (Buy) reported in line with the Zacks
Sun Life Financial Inc.
) with Zacks Rank #2 (Buy) is scheduled to report third quarter
earnings on Nov 7, 2013.
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