AM Best Affirms Credit Ratings of Protective Life Corporation and Its Key Life Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa-" (Superior) of the primary life insurance subsidiaries of Protective Live Corporation (headquartered in Birmingham, AL), collectively known as Protective Life. Additionally, AM Best has affirmed the Long-Term ICR of "a-" (Excellent) and the existing Long-Term Issue Credit Ratings (Long-Term IR) of Protective Life Corporation. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of these subsidiaries and ratings.)

The ratings reflect Protective Life's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The ratings of Protective Life continue to reflect its very strong risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), strong asset-liability management, favorable liquidity and demonstrated financial support from its parent, Dai-ichi Life Holdings, Inc., all of which contribute to the strongest balance sheet strength assessment. While Protective Life's balance sheet has equity and interest rate risk embedded in its variable annuity book, the group benefits from a comprehensive hedging program. Protective Life maintains moderate investment risk, mitigated by strong financial flexibility and below-average alternative investments. Financial and operating leverage at Protective Life Corporation remain within AM Best's expectations.

Operating results are favorable, benefiting from consistent and diversified net income. Protective Life continues to demonstrate a well-established core competency as an acquirer of life and annuity blocks of business, which have contributed to earnings growth and allowed it to realize scale-related operating efficiencies. Operating results in 2021 also benefited from mortality improvement and new business growth.

Protective Life's business profile benefits from diversity in its distribution channels and product lines, along with continued investments in innovation. The company's ERM is appropriate for its risk profile, which benefits from embedded stress testing of key economic scenarios.

The FSR of A+ (Superior) and the Long-Term ICRs of "aa-" (Superior) have been affirmed with a stable outlook for the following primary life insurance subsidiaries of Protective Life Corporation:

• Protective Life Insurance Company
• Protective Life and Annuity Insurance Company
• West Coast Life Insurance Company
• MONY Life Insurance Company

The following Long-Term IRs have been affirmed with a stable outlook:

Protective Life Corporation –
— "a-" (Excellent) on $400 million 3.40% senior unsecured notes, due 2030
— "a-" (Excellent) on $300 million 8.45% senior unsecured notes, due 2039

Protective Life Global Funding —"aa-" (Superior) program rating
— "aa-" (Superior) on all outstanding notes issued under the program

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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