Moody's affirms Protective Life

Moody's Investors Service said it affirmed Protective Life Corp.'s Baa2 senior debt rating and PLC Capital Trusts III-V's Baa3 trust preferred securities.

The outlook is stable.

The affirmation followed the company's announcement that it had signed a definitive agreement to coinsure the individual life insurance business of Liberty Life Insurance Co.

It reflects the company's relatively low-risk profile of acquired liabilities, diverse revenue and earnings sources, multiple distribution channels and stable earnings, Moody's said.

Moody's added that Protective's financing of the transaction entirely with internally generated funds will allow the company to maintain financial leverage at a moderate 25%, while the addition to statutory earnings from the acquisition helps replenish the initial reduction in capital.

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