Protective Life Corp.
) reported first-quarter 2014 net operating earnings of $1.19 per
share, 4 cents ahead of the Zacks Consensus Estimate. On
year-over-year basis, earnings surged 34% after a super
performance by its Annuity and Stable Value lines that was partly
dampened by higher mortality in Life Marketing, and soft
Acquisitions and Annuities businesses.
Total revenue in the quarter amounted to $1.1 billion, up 16.9%
year over year on higher net premium and net investment income.
Reported revenues also were also in line with the Zacks Consensus
Net investment income of Protective Life came in at $538.0
million, up 17.5% year over year.
Total benefits and expenses came in at $965.4 million,
reflecting an increase of 18.4% year over year.
segment reported before-tax operating income of $23.5
million, down 1% year over year due to unfavorable mortality
against the prior-year quarter. Sales came in at $28.3 million,
down 40% year over year.
Before-tax, operating income of
was $61.0 million, up 77% year over year. The increase was
primarily attributable to the addition of MONY Life Insurance
Company which contributed $25.7 million to operating earnings.
segment reported before-tax operating income of $51.6
million, which increased 19% year over year. Annuities sale
decreased 40% year over year to $416.4 million.
Lower participating mortgage income resulted in a 3.0%
year-over-year decline in pre-tax operating income at the
Stable Value segment to $17.4 million. The segment's sales,
however, declined 77% year over year to $25.9 million.
Asset Protection reported before-tax operating income of $6.4
million, which grew 5% year over year. The increase was primarily
toadied by higher service contract earnings. Sales increased 1%
year over year to $105.5 million.
Corporate & Other pre-tax operating loss was $14.9 million
compared with loss of $18.3 million in the year-ago quarter.
Share Repurchase Update
During the reported quarter, Protective Life did not make any
share repurchase and has shares worth $170 million remaining under
For 2014, we expect Protective Life to benefit from the
successful integration of the MONY acquisition, retail growth
innovation, focus on careful and rational allocation of capital and
constant attention to rigorous expense management.
Protective Life presently carries a Zacks Rank #3
Other life insurance players stocks like
American International Group, Inc.
Prudential Financial Inc.
) reported favorable first quarter earnings, each beating the Zacks
Consensus Estimate by 13 cents. Yet another player
) missed the Zacks Consensus Estimate by 3 cents per share.
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