NU Online News Service, March 26, 2003, 3:55 p.m. EST – Protective Life Corp., Birmingham, Ala., says the U.S. Securities and Exchange Commission may want it to change the way it accounts for problems with low-rated securities.
Protective notes that "unrealized losses" on low-rated securities amounted to $41.7 million in 2001 and $34.3 million in 2002.
The unrealized losses lower shareholders' equity but have no direct effect on net income. If Protective finds that problems with low-rated securities will be "other than temporary" and recognizes the problems as "realized investment losses," then it will have to include the losses in net income, the company says.