protective life insurance company...nov 13, 2015 · – healthy retail life insurance and annuity...
TRANSCRIPT
Protective Life Insurance Company
Company Overview
November 2015
Notice
This Presentation has been prepared from information supplied by PLICO and from third-party sources indicated herein. Such third-party information has notbeen independently verified and PLICO makes no representation or warranty, expressed or implied, as to the accuracy or completeness of such information.
The summary descriptions and other information included in this Presentation are intended only for informational purposes and convenient reference. Theinformation contained in this Presentation is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investmentrecommendations.
This Presentation contains forward-looking statements. Forward-looking statements are necessarily based on estimates and assumptions that are inherentlysubject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond PLICO’s control and many of which aresubject to change. Such statements include statements regarding the belief or current expectations of the management of PLICO concerning its future financialcondition and results of operations, including its expected operating and non-operating relationships, ability to meet debt service obligations and financing plans,product sales, distribution channels, retention of business, investment yields and spreads, investment portfolio and ability to manage asset-liability cash flows.This Presentation also contains statements of strategic and financial targets (“targets”) of The Dai-ichi Life Insurance Company, Limited (“Dai-ichi Life”). Suchtargets are for internal strategic purposes only and are not estimates or projections of the future financial condition or results of operations of Dai-ichi Life, PLICOor their affiliates. Such targets are subject to change and are not necessarily indicative of how Dai-ichi Life may conduct its business. Any such forward-lookingstatements or targets are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in theforward-looking statements and targets as a result of various factors. Any forward-looking statements reflect PLICO’s views and assumptions as of the date ofthis Presentation and PLICO disclaims any obligation to update forward-looking information.
The preparation of PLICO financial statements requires management to make estimates and assumptions that impact the reported amount of assets andliabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during thereporting periods. Financial information provided through this Presentation is prepared in accordance with Generally Accepted Accounting Principles (“GAAP”)unless otherwise specified or noted.
Additional information regarding PLICO is available at www.protective.com.
1
Highlights
Solid competitor in the industry
– Founded in 1907
– $764.3 billion of life insurance in force(1)
– $45.2 billion of invested assets(2)
– $5.4 billion in GAAP equity(2)
PLICO at a glance:
– Track record of strong financial performance
– Healthy retail life insurance and annuity franchise
– Strong historical track record of acquiring, integrating and servicing lifeinsurance and annuity blocks from other insurance companies
– Experienced and talented management team
– High-quality investment portfolio
– Strong corporate parent in The Dai-ichi Life Insurance Company,Limited (“Dai-ichi Life”)
2
(1) As of December 31, 2014.(2) As of September 30, 2015; invested assets total excludes separate account assets.
Source: PLICO filings
Section 1
Company Overview
LifeMarketing
17%
Acquisitions38%
Annuities30%
Stable ValueProducts
11%
AssetProtection
4%
• Other investmentincome/expenses
• Earnings fromrun-off lines
Protective Life Insurance Company OverviewDiversified Business Operations
4
• GIC
• GFA – DirectInstitutional
Segments
Life Marketing Acquisitions AnnuitiesStable Value
Products
• Traditional
• Universal Life
• Annuities
• Traditional
• Universal Life
• BOLI
• Fixed Annuities
• VariableAnnuities
AssetProtection
• Credit Insurance
• Service Contracts
• GAP
Products
Total 2014 Revenues$4.5 billion
Total 2014 PTOI(1)
$575.5 million
Our Business Mix is an Advantage (Revenues and Pre-Tax Operating Income)
LifeMarketing
32%
Acquisitions38%
Annuities18%
Stable ValueProducts
3%
AssetProtection
7%
Corporate &Other2%
Corporate &Other
(1) Corporate & Other segment‘s pre-tax operating income was ($99.0) million for FY 2014. Excluding the Corporate & Other segment, pre-taxoperating income was $674.5 million for FY 2014.
Experienced and Stable Management Team
5
Years of Experience
Name Position(s) Insurance Industry PLICO
John D. JohnsChairman of the Board, President, Chief ExecutiveOfficer and Director
22 22
Richard J. BielenVice Chairman, Chief Financial Officer andDirector
24 24
Deborah J. LongExecutive Vice President, Secretary and GeneralCounsel
23 23
Michael G. Temple Executive Vice President and Chief Risk Officer 30 3
Carl S. Thigpen Executive Vice President, Chief Investment Officer 31 31
Lance P. Black Senior Vice President and Treasurer 12 12
Steven G. WalkerSenior Vice President, Chief Accounting Officerand Controller
32 13
Protective(1) is Stronger With Dai-ichi Life
6
Dai-ichi Life’s Strategy for ProtectiveTop Global Life Insurers by Assets
Protective is the U.S. growth platform for Dai-ichi Life
Creates a strong platform in Japan and U.S.,the 2 largest insurance markets globally
Diversifies Dai-ichi Life’s business in terms ofrevenues, profits, and risks
Target is for Dai-ichi Life to achieve totalreturn to its shareholders of 40% of itsadjusted net income by 2017
PLICO’s experienced management team hasremained with the company post-acquisition
$0
$200
$400
$600
$800
$1,000
$1,200
($ in Billions)
Note: Based on analysis of data from the Fortune Global 500, Life Insurance Industry (Mutual and Stock companies), originally published July 5,2015. All company data is presented as of end of prior fiscal year.
(1) PLC
Dai-ichi Life’s Global Footprint
7
"We are pleased to be entering the U.S. life insurance market by bringing such an outstanding company as Protective into our portfolio. With a strongleadership team, vibrant and growing retail franchise and long track record of profitable growth organically and through the acquisition and integration ofattractive businesses, Protective is the ideal platform for expansion”
- Koichiro Watanabe, President, Dai-ichi LifeJune 3, 2014
Dai-ichi Life Corporate Structure
8
Dai-ichi Life InsuranceCompany, Limited(1)
Domicile: JapanFSR: A1 / A+ / A / A+
Protective LifeCorporation
HQ: Birmingham, ALSenior Notes Rating:Baa1 / A- / BBB+ / A-
Neo First Life(Japan)
RegionalHeadquarters
(APAC)
Dai-ichi LifeInformation
Systems
Dai-ichiFrontier Life
(Japan)
DIAMJanus(United States)
Lyndon PropertyInsurance Company
State of Domicile: MOFSR: -- / -- / -- / A-
MONY Life InsuranceCompany
State of Domicile: NYFSR: A2 / A+ / A / A+
Protective Life andAnnuity
Insurance CompanyState of Domicile: ALFSR: -- / AA- / A / A+
West Coast LifeInsuranceCompany
State of Domicile: NEFSR: A2 / AA- / A / A+
TAL(Australia)
Panin Dai-ichi Life(Indonesia)
Star Union Dai-ichiLife
(India)
Ocean Life(Thailand)
Dai-ichi LifeVietnam(Vietnam)
Asset management companies
Protective LifeInsuranceCompany
State of Domicile: TNFSR: A2 / AA- / A / A+
RegionalHeadquarters
(North America)
Note: Ratings are listed in the following order: Moody’s / S&P / Fitch / A.M. Best. The insurer financial strength ratings reflect each rating agency’s opinion of PLICO’sfinancial strength, operating performance and ability to meet its obligations to policyholders and are not evaluations directed toward the protection of investors.Therefore, such ratings may be subject to review, revision, suspension, reduction or withdrawal at any time by the assigning rating agency.
(1) In 2015, Dai-ichi Life’s board of directors adopted a reorganization plan to shift to a holding company structure in October 2016. Under the proposed structure, PLCwill be a wholly owned subsidiary of the Dai-ichi Life holding company.
PLICO’s Financial PositionStrong Financial Foundation and Performance
9
Gross Premiums and Policy Fees Pre-tax Operating Income(1)
Total EquityTotal Invested Assets(2)
($ in Billions) ($ in Millions)
($ in Billions) ($ in Billions)
$2.6$2.8 $2.8
$3.0
$3.3
$2.1
2010 2011 2012 2013 2014 2015 YTD
$346$407
$461
$528
$675
$312
2010 2011 2012 2013 2014 2015 YTD
$4.1
$4.9
$5.7
$4.7
$5.8$5.4
2010 2011 2012 2013 2014 3Q 2015
$31.3 $34.9 $36.9$43.7 $45.6 $45.2
$5.7$7.2
$10.2
$13.6 $14.0 $13.4
$37.0$42.1
$47.1
$57.3 $59.6 $58.6
2010 2011 2012 2013 2014 3Q 2015
General Accounts Separate Accounts
Note: GAAP financial information for PLICO; 2015 YTD data is for successor company (2/1/2015 – 9/30/2015) and includes purchase accountingeffects from Dai-ichi Life transaction.
(1) Excludes corporate and other segment.(2) Includes separate account assets.Source: PLICO filings
Statutory Financial Overview
10
Statutory Capital and Surplus Risk-Based Capital (RBC) Ratio
($ in Millions)
455%
433%
510%
447%
562%
2010 2011 2012 2013 2014
$2,622 $2,628
$2,984$2,918
$3,499 $3,522
2010 2011 2012 2013 2014 3Q 2015
Note: Statutory financial information for PLICO.Source: PLICO filings
Financial StrengthAs of September 30, 2015
PLICO believes it has a strong balance sheet
– Total shareowner’s equity of $5.4 billion
– Total capital & surplus of $3.5 billion
PLICO believes it has a high quality investment portfolio
– 93% of fixed maturities are investment grade
PLICO believes it has excess capital (defined as total adjusted capital abovetarget RBC ratio of 400%) of $1,111.2 million as of December 31, 2014
PLICO has an unsecured revolving credit facility up to an aggregate principalamount of $1 billion
– Maturity date of February 2, 2020
PLICO has a stable ratings profile
– Financial strength ratings of A2 (Moody’s), AA- (S&P), A (Fitch), A+ (A.M. Best)(1)
11
(1) The insurer financial strength ratings reflect each rating agency’s opinion of PLICO’s financial strength, operating performance and ability tomeet its obligations to policyholders and are not evaluations directed toward the protection of investors. Therefore, such ratings may be subjectto review, revision, suspension, reduction or withdrawal at any time by the assigning rating agency.
Source: PLICO filings
Risk Management
Enterprise RiskManagement
Risk management is a critical part of PLICO’s business and PLICO has adopted riskmanagement processes in multiple aspects of its operations, including:
– Product development and management
– Business acquisitions
– Underwriting
– Investment management
– Asset-liability management
– Technology development
PLICO’s ERM framework is robust and tailored to the nature, scale and complexity ofthe business
Liquidity RiskManagement
Multiple methods are used to assess liquidity risk
Contingency plans are in place
– Bank Line of Credit
– FHLB available borrowings
– Operating cash flow
– Cash, treasuries, short term corporate bonds
12
Section 2
Segment Overview
Life Marketing
14
StrengthenExisting Models
Strengthen SharedValue
Enhance CustomerEngagement
Focused Distributor Relationships
BGA Consolidation Opportunities
Affinity Marketing
Institutional Distribution
Online tools
Customer service infrastructure
Customer analytics
Markets fixed universal life (“UL”), indexeduniversal life (“IUL”), variable universal life, bank-owned life insurance (“BOLI”) and level-premiumterm insurance (“traditional”) products on a nationalbasis
Distribution is primarily through networks ofindependent insurance agents and brokers, broker-dealers, financial institutions and independentmarketing organizations
Universal life sales of $130 million in 2014
Recently completed launch of Costco productoffering to increase presence in the Affinity channel
– Distinct UL product and process unique toCostco and its more that 80 millionmembers (as of July 2015)
– Process is completely electronic
– 255,560 quotes and 10,165 completed andsubmitted applications from December2014 (inception) through October 2015
Segment Overview and Highlights
3 Core Retail Strategies
Life Sales by Distribution(1)
Independentagents76%
Other2%
Institutional22%
Note: GAAP financial information for PLICO.(1) Life sales for FY 2014.
Acquisitions
15
No. of Capital Average
($mm) Transactions Invested Capital
Prior to 1990 28 120 4
1990 to 2000 12 413 34
2001 to 2011 6 1,479 493
2013 1 1,088 1,088
2016 projected(1) 1 661 661
Total 48 3,761
Transaction HistorySegment Overview and Highlights
In-Force Life Policies(2)
Acquisitions segment focuses on acquiring,integrating and servicing policies originallyunderwritten by other insurance companies
– Primary focus is on long-dated lifeinsurance policies and annuity products thatwere sold to individuals
47 successful transactions(1)
PLICO believes it has:
– Significant institutional experience andknow-how
• Due diligence
• Valuation
• Negotiation
• Systems consolidation
– Ability to execute innovative deal structures
– Strong reputation among potentialcounterparties
• Closing the deal
• Quality of post-closing services andintegration
• Relationships with regulatorsTraditional
85%
Universal Life15%
Note: GAAP financial information for PLICO; 3Q 2015 data includes purchase accounting effects from Dai-ichi Life transaction.(1) On September 30, 2015, PLICO entered into a master agreement with Genworth Life and Annuity Insurance Company (“GLAIC”) pursuant to
which PLICO agreed to enter into a reinsurance agreement to co-insure certain term life business of GLAIC. The transaction is expected toclose in 1Q 2016 and will be PLICO’s 48th acquisition.
(2) Life insurance in-force as of September 30, 2015.
Annuities
16
Segment Overview and Highlights
Average Account Values(2)
Markets fixed and variable annuity productsprimarily through the institutional channel
Distributes through broker-dealers, financialinstitutions and independent agents and brokers
Average account value of $20.5bn in 2014
Majority of variable annuity policies written post-2009
Annuity Sales by Product(1)
FixedAnnuities
47%VariableAnnuities
53%
$20.8 Billion
Interest Spread – Fixed Annuities(3)
2012 2013 2014
Net investmentincome yield
5.80% 5.50% 5.44%
Interest credited topolicyholders
3.85% 3.53% 3.33%
Interest spread 1.95% 1.97% 2.11%
FixedAnnuities
40%
VariableAnnuities
60%
Note: GAAP financial information for PLICO.(1) FY 2014 data.(2) Average account values for period from 2/1/2015 – 9/30/2015.(3) Calculations based on average general account values.
Stable Value Products
17
Segment Overview and Highlights Ending Account Balances
Sells fixed and floating rate funding agreementsdirectly to the trustees of municipal bond proceeds,money market funds, bank trust departments andother institutional investors
Markets GICs to 401(k) and other qualifiedretirement savings plans
Used opportunistically to complement asset /liability management and product cash flows
Efficient operation
($ in Millions)
$3,076
$2,770
$2,511$2,560
$1,959$1,914
2010 2011 2012 2013 2014 3Q 2015
Note: GAAP financial information for PLICO; 3Q 2015 data includes purchase accounting effects from Dai-ichi Life transaction.
Asset Protection
18
Segment Overview and Highlights Asset Protection Sales by Product(1)
Loss Ratios(2)
Sells extended service contracts and credit life and
disability insurance to protect consumers’
investments in automobiles and recreational
vehicles (“RV”), as well as a guaranteed asset
protection (“GAP”) product that covers the
difference between loan payoff amount and an
asset’s actual cash value in the case of total loss
Primarily marketed through a national network of
approximately 7,150 automobile and RV dealers; a
network of direct employee sales representatives
and general agents distribute these products to the
dealer market
A portion of the sales and resulting premiums are
reinsured with producer-affiliated reinsurers
CreditInsurance
6%
ServiceContracts
78%
GAP16%
37.8%33.8%
37.7% 36.1%
27.7% 28.6%
56.7% 56.5% 58.7%61.3%
56.9%
54.6%
33.8%
41.3%58.1%
62.0%
82.6%
2010 2011 2012 2013 2014 2015 YTD
Credit Service Contracts GAP
Note: GAAP financial information for PLICO.(1) Reflects segment data for FY 2014.(2) 2015 YTD data is for successor company (2/1/2015 – 9/30/2015) and includes purchase accounting effects from Dai-ichi Life transaction; 2010
data is not meaningful for GAP product.
Section 3
Investment Portfolio
20
Our Investment Strategy
High quality investment grade assets
Disciplined approach to ratings and diversification
Only 5% of bonds below investment grade as of September 30, 2015
Maintaining commercial mortgage loan portfolio quality
ALM discipline
Diversified, High-Quality Investment PortfolioAs of September 30, 2015
21
Invested Assets Fixed Maturities
$45.2 Billion
~ 80% Fixed Maturities ~ 93% investment grade
$36.2 Billion
Corporatebonds60%
RMBS4%
CMBS3%
ABS2%
Govts/Agencies
4%
States,Munis, &
Other6%
MortgageLoans13%
Policy Loans4%
Other4% AAA
14%
AA7%
A32%
BBB40%
BB or less5%
Not rated2%
Note: GAAP financial information for PLICO; 3Q 2015 data includes purchase accounting effects from Dai-ichi Life transaction.
Retail62%Office
Buildings13%
Apartments10%
Warehouses8%
Misc7%
Commercial Mortgage Portfolio
22
Mortgage Loans by Type(1)
$5.1 Billion
Overview
Specializes in making loans on either credit-orientedcommercial properties or credit-anchored stripshopping centers and apartments
– No single tenant represents more than 2.2%of mortgage loans(1)
Concentrates on a limited number of commercial realestate asset types associated with necessities of life(e.g. retail, senior living, professional office, etc)
Underwriting procedures based on conservative anddisciplined approach
– Targeted loan-to-value of 75% or less
– As of September 30, 2015, ~$7.3 million or0.02% of invested assets consisted ofnonperforming mortgage loans, restructuredmortgage loans and/or mortgage loans thatwere foreclosed and were converted into realestate properties
Average size of mortgage loan: $2.8 million(1)
Weighted-average interest rate: 5.72%(1)
Largest single mortgage loan: $50.0 million (1)
Note: GAAP financial information for PLICO.(1) As of December 31, 2014.
SummaryIt is Essentially “Business as Usual” at PLICO
Company leadership remains in place
Continued complementary retail and acquisition strategy to achieve growth
Continued disciplined approach to pricing using current interest rate assumptions
– Stable value contracts are based on real-time pricing
– Annuity products are priced weekly
– Life products are reviewed every 9-12 months
Disciplined investment strategy
Focused on efficient capital allocation
PLICO views the outlook as positive
23
Appendix 1
Additional Financial Information
Financial Summary
Year ended December 31,
($ in Millions) 2010 2011 2012 2013 2014
Selected Income Statement Data
Premiums and Policy Fees $2,609 $2,784 $2,799 $2,967 $3,283
Reinsurance Ceded (1,381) (1,364) (1,310) (1,387) (1,396)
Net Of Reinsurance Ceded 1,229 1,420 1,489 1,580 1,887
Net Investment Income 1,625 1,753 1,789 1,836 2,098
Total Revenues 2,937 3,409 3,456 3,605 4,464
Total Benefits and Expenses 2,604 2,933 2,996 3,182 3,725
Net Income 223 324 309 292 492
Selected Balance Sheet Data
Total Invested Assets $31,278 $34,858 $36,860 $43,656 $45,584
Total Assets 46,717 52,003 57,158 68,270 69,992
Total Reserves 33,918 36,349 36,715 46,172 45,800
Non-recourse Funding Obligations 1,361 1,249 1,447 1,495 1,528
Total Shareowner's Equity 4,072 4,877 5,687 4,690 5,831
Statutory Data
Capital and Surplus $2,622 $2,628 $2,984 $2,918 $3,499
RBC Ratio 455% 433% 510% 447% 562%
25Note: Financial information for PLICO.Source: PLICO filings
Dai-ichi Life Acquisition of Protective Life CorpP-GAAP Impact to PLICO
26
($ in Millions)
Predecessor CompanyBalance Sheet as of
12/31/2014
Successor Company OpeningBalance Sheet as of
2/1/2015Successor Company(1) as of
9/30/2015
Assets
Fixed maturities $37,191 $38,343 $36,181
Equity securities 757 699 685
Mortgage loans 5,134 5,580 5,728
Policy loans 1,758 1,752 1,706
Total investments $45,584 $47,350 $45,161
Deferred policy acquisition costs $2,653 $0 $208
Value of business acquired 502 1,278 1,262
Goodwill 78 736 736
Other intangibles 0 683 655
Total assets $69,992 $70,720 $68,228
Liabilities
Future policy and benefit claims $29,944 $30,195 $29,734
Unearned premiums 1,515 622 666
Total policy liabilities and accruals 31,459 30,818 30,400
Stable value product account balances 1,959 1,932 1,914
Annuity account balances 10,951 10,942 10,755
Non-recourse funding obligations 1,528 1,896 1,939
Repurchase program borrowings 50 50 456
Liabilities related to separate accounts
Variable annuity 13,157 12,971 12,647
Variable universal life 835 819 793
Total liabilities $64,161 $64,210 $62,780
Equity(2) $5,831 $6,509 $5,448
(1) Reflects PLICO’s financials at end of 3Q 2015.(2) For amounts as of 2/1/2015, represents the fair value of net assets acquired by Dai-ichi Life.
Appendix 2
Segment Financial Performance
Life Marketing
28
Sales by Product Premiums
Universal Life Average Account Values Pre-Tax Operating Income
($ in Millions)($ in Millions)
($ in Millions)($ in Millions)
50.1
3.8 1.1 1.3 0.5 0.4
113.2 117.9 117.1
153.4
129.5
103.6
8.1 11.43.3 0.0 0.0 0.0
2010 2011 2012 2013 2014 2015 YTD
Traditional Universal Life BOLI
$1,576 $1,592 $1,575 $1,634 $1,684
$1,099
2010 2011 2012 2013 2014 2015 YTD
$123
$96$102 $107
$117
$29
2010 2011 2012 2013 2014 2015 YTD
$5,563$6,038
$6,501$6,965 $7,178 $7,291
2010 2011 2012 2013 2014 3Q 2015
Note: GAAP financial information for PLICO; 2015 YTD data is for successor company (2/1/2015 – 9/30/2015) and includes purchase accountingeffects from Dai-ichi Life transaction. 3Q 2015 average account values for period from 2/1/2015 – 9/30/2015.
Acquisitions
29
Premiums Average Life Insurance In-Force
Total Revenues Pre-Tax Operating Income
($ in Billions)($ in Millions)
($ in Millions)($ in Millions)
$677
$834 $847$929
$1,172
$742
2010 2011 2012 2013 2014 2015 YTD
$761
$983$1,064
$1,187
$1,720
$975
2010 2011 2012 2013 2014 2015 YTD
$111
$157$171
$154
$254
$133
2010 2011 2012 2013 2014 2015 YTD
$186 $188 $180 $167$188 $177
$27 $31 $30$28
$35$32
$213 $219 $210$195
$223$209
2010 2011 2012 2013 2014 3Q 2015
Traditional Universal Life
Note: GAAP financial information for PLICO; 2015 YTD data is for successor company (2/1/2015 – 9/30/2015) and includes purchase accountingeffects from Dai-ichi Life transaction. 3Q 2015 average account values for period from 2/1/2015 – 9/30/2015.
Annuities
30
Sales by Product Operating Revenues
Pre-Tax Operating IncomeAverage Account Balances
($ in Millions)($ in Millions)
($ in Millions)($ in Billions)
$48
$79
$118
$166
$204
$109
2010 2011 2012 2013 2014 2015 YTD
$7.9 $8.5 $8.6 $8.2 $8.2 $8.2
$3.4$5.4
$7.5$10.7 $12.3 $12.6$11.3
$13.9$16.1
$18.9$20.5 $20.8
2010 2011 2012 2013 2014 3Q 2015
Fixed Variable
$930 $1,032$592 $693 $831
$329
$1,715
$2,349$2,735
$1,867$953
$857
2010 2011 2012 2013 2014 2015 YTD
Fixed Variable
$2,645
$3,381 $3,327
$2,560
$1,784
$1,186
$544$608
$648 $644 $662
$347
2010 2011 2012 2013 2014 2015 YTD
Note: GAAP financial information for PLICO; 2015 YTD data is for successor company (2/1/2015 – 9/30/2015) and includes purchase accountingeffects from Dai-ichi Life transaction. 3Q 2015 average account values for period from 2/1/2015 – 9/30/2015.
Stable Value Products
31
Sales by Product Operating Revenues
Pre-Tax Operating IncomeNet Investment Income and Annualized Spread(1)
($ in Millions)($ in Millions)
($ in Millions)($ in Millions)
$39
$57$60
$81$73
$28
2010 2011 2012 2013 2014 2015 YTD
$133
$499$400
$495
$42 $113
$625
$300
$222
$50
$300
$758 $799
$622
$495
$92
$413
2010 2011 2012 2013 2014 2015 YTD
GIC GFA – Direct Institutional
$171
$145$128
$124$107
$43
1.11%
1.80%
2.09%
2.67% 2.71%
1.90%
2010 2011 2012 2013 2014 2015 YTD
Net Investment Income Annualized spread
$171
$145$128 $125
$111
$43
2010 2011 2012 2013 2014 2015 YTD
Note: GAAP financial information for PLICO; 2015 YTD data is for successor company (2/1/2015 – 9/30/2015) and includes purchase accountingeffects from Dai-ichi Life transaction.
(1) Annualized operating spread excludes participating mortgage loan income and other income.
Asset Protection
32
Sales by Product Gross Premiums and Policy Fees
Pre-Tax Operating IncomeNet Operating Revenues
($ in Millions)($ in Millions)
($ in Millions)($ in Millions)
$290$268 $260 $254 $261
$176
2010 2011 2012 2013 2014 2015 YTD
$270 $283 $294 $297 $305
$204
2010 2011 2012 2013 2014 2015 YTD
$24
$17
$10
$20
$26
$13
2010 2011 2012 2013 2014 2015 YTD
$36 $36 $35 $33 $29 $18
$236$286
$329 $344 $355
$259
$54
$73$63 $67 $74
$63
$326
$395$427 $444 $458
$340
2010 2011 2012 2013 2014 2015 YTD
Credit Ins. Service Contracts GAP
Note: GAAP financial information for PLICO; 2015 YTD data is for successor company (2/1/2015 – 9/30/2015) and includes purchase accountingeffects from Dai-ichi Life transaction.