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Fitch Maintains Protective Life on Rating Watch Positive
[December 10, 2014]

Fitch Maintains Protective Life on Rating Watch Positive


Fitch Ratings has maintained the ratings of Protective Life Corp. (NYSE: PL) (IDR 'BBB+') and its primary life insurance subsidiaries (IFS 'A') on Rating Watch Positive. A full ratings list follows at the end of this release.

KEY RATING DRIVERS

PL's ratings were placed on Rating Watch Positive on June 4, 2014, following the announcement that the company had agreed to be acquired by Japan-based Dai-ichi Life Insurance Company, Ltd. (Dai-ichi Life) in a transaction valued at $5.7 billion. The transaction is expected to close in late 2014 or early 2015 subject to various pending regulatory approvals in Japan and the U.S.

Fitch views the proposed transaction as a credit positive for PL based on the financial strength of Dai-ichi Life (IFS 'A+'), which is the second largest life insurance company in Japan and ranks as one of the largest life insurers globally.

The transaction reflects a broader strategic initiative by Dai-ichi Life to expand its life insurance business outside of Japan. The proposed acquisition of PL represents Dai-ichi Life's first acquisition in the U.S. life insurance market.

Fitch expects PL's existing management team and operating strategies will largely remain in place following the close of the transaction.

Assuming the transaction progresses as expected and there are no material changes in the credit metrics of PL, Fitch is unlikely to comment further on the ratings of PL until completion of its acquisition by Dai-ichi.

RATING SENSITIVITIES

Fitch could upgrade PL's ratings following the close of the transaction based on a review of integration plans, financial projections, strategic fit within the Dai-ichi Life organization, and degree of support provided by Dai-ichi Life to PL.

Fitch could affirm PL's ratings at current levels if the transaction doesn't close or if Fitch concludes that PL lacks sufficient strategic importance within the Dai-ichi Life organization to supprt an alignment of the ratings.



The following ratings remain on Rating Watch Positive:

Protective Life Corporation


--IDR 'BBB+';

--$150 million of 6.40% senior notes due 2018 'BBB';

--$400 million of 7.38% senior notes due 2019 'BBB';

--$300 million of 8.45% senior notes due 2039 'BBB';

--$288 million of 6.25% subordinated debt due 2042' 'BB+';

--$150 million of 6.00% subordinated debt due 2042 'BB+'.

PLC Capital Trust V

--$103 million of 6.13% trust-preferred stock due 2034 'BB+'.

Protective Life Insurance Company

Protective Life and Annuity Insurance Company

West Coast Life Insurance Company

MONY Life Insurance Co.

--IFS 'A'.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'Insurance Rating Methodology' (September 2014).

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=756650

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=947456

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