The ratings reflect Protective's diversified business profile, favorable operating results and proven ability to acquire and integrate insurance companies and blocks of business.
The ratings also acknowledge Protective's sound risk-adjusted capitalization on both a consolidated basis and within each of the insurance operating entities. While financial leverage at the holding company remains relatively high,
Protective remains profitable in its core operating segments on both a GAAP and statutory basis. Overall results have improved over the most recent period due to the aforementioned increase in variable annuity sales as well as increased fee income from separate accounts, which have benefited from rising equity markets. Operating results also benefited from favorable mortality, improved spreads in its stable value business and increased scale and efficiencies in its acquisition segment.