Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

Funding Agreement Notes Help Protective Results

Your article was successfully shared with the contacts you provided.

NU Online News Service, May 4, 2004, 2:04 p.m. EDT – An increase in life marketing earnings boosted first-quarter profits at Protective Life Corp., Birmingham, Ala.[@@]

The life insurer is reporting $55.2 million in net income for the latest quarter on $518.2 million in revenue, up from $37.7 million in net income on $474.6 million in revenue for the first quarter of 2003.

Low interest rates and ferocious competition hurt fixed annuity sales, but a new program that markets notes backed by Protective Life funding agreements to retail investors generated $222 million in sales, Protective says.

A funding agreement is a contract that calls for an insurer to pay investors a specified fixed or floating rate of return.

Investors think of funding agreements and notes backed by funding agreements as stable-value investments that offer a relatively high rate of return, according to Moody’s Investors Service, New York.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.