Torchmark Corporation Reports First Quarter 20...(bt. ...),Health

Quarter Ended

March 31,

(dollars in millions, except per

share data)

%

2008 2007 Change

Tax equivalent investment income $168.2 $162.9 3

Tax equivalent adjustment (1.4) (.4)

Net investment income 166.8 162.5 3

Required interest:

Interest credited on net policy

liabilities (67.3) (62.3) 8

Interest on debt (16.1) (17.2) (6)

Total required interest (83.4) (79.5) 5

Excess investment income $83.4 $83.0 --

Per share $.91 $.84 8

In the current year quarter, tax equivalent investment income increased 3% in line with a 4% increase in the investment portfolio. Interest credited on net policy liabilities increased 8% in line with a 7% increase in the related liabilities. Interest on debt declined 6% due to a lower average rate on short term debt.

Investment Portfolio Composition at March 31, 2008:

The market value of Torchmark's fixed maturity portfolio was $9.1 billion, $440 million lower than amortized cost of $9.5 billion. This net unrealized loss is comprised of $216 million gross unrealized gains, and $656 million gross unrealized losses. At amortized cost and market value, 93% of fixed maturities were rated "investment grade." The fixed maturity portfolio, which at amortized cost comprised 95% of total invested assets, earned an annual
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