UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported):
(Exact Name of Registrant as Specified in Its Charter)
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(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter ).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition.
On August 5, 2021, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended June 30, 2021. A copy of the press release is attached hereto as Exhibit 99.1.
The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent expressly set forth by specific reference in any such filings.
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, adjusted stockholders’ equity and diluted adjusted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business. Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of realized investment gains (losses) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude realized investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude the transaction-related expenses associated with the purchase of 80% of Etelequote Limited’s operating subsidiaries (collectively, “e-TeleQuote”). We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results. Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold.
Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.
Reconciliations of GAAP to non-GAAP financial measures are included as attachments to the press release which has been posted in the “Investor Relations” section of our website at https://investors.primerica.com.
Item 7.01Regulation FD Disclosure.
On August 5, 2021, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended June 30, 2021. A copy of the supplemental financial information is attached hereto as Exhibit 99.2.
The information provided pursuant to this Item 7.01, including Exhibit 99.2 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act, except to the extent expressly set forth by specific reference in any such filings.
Item 9.01. |
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Financial Statements and Exhibits. |
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(d) Exhibits.
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99.1 |
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Press Release dated August 5, 2021 – Primerica Reports Second Quarter 2021 Results
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99.2 |
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Primerica, Inc. Supplemental Financial Information – Second Quarter 2021
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104 |
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Cover Page from this Current Report on Form 8-K, formatted in Inline XBRL |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 5, 2021 |
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PRIMERICA, INC. |
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/s/ Alison S. Rand |
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Alison S. Rand |
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Executive Vice President and Chief Financial Officer |
3
PRIMERICA REPORTS SECOND QUARTER 2021 RESULTS
Investment and Savings Products sales surpass $3 billion
Demand for protection products remains strong with over 90,000 new term life policies issued
Net earnings per diluted share (EPS) of $3.22, up 28%; return on stockholders’ equity (ROE) of 26.3%
Diluted adjusted operating EPS of $3.25, up 33%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 27.8%
July 1 closing of previously announced acquisition of 80% of the operating subsidiaries of Etelequote Limited
Declared dividend of $0.47 per share, payable on September 14, 2021
Duluth, GA, August 5, 2021 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2021. Total revenues of $654.7 million increased 25% compared to the second quarter of 2020. Net income of $128.2 million increased 26%, while earnings per diluted share of $3.22 increased 28% compared to the same quarter last year. ROE remained robust at 26.3%.
Adjusted operating revenues, adjusted net operating income and diluted adjusted operating earnings per share are non-GAAP financial measures that exclude the impact of realized gains/losses and the mark-to-market adjustment on the reinsurance deposit asset. Adjusted net operating income and diluted adjusted operating earnings per share also exclude transaction-related expenses associated with the purchase of 80% of the operating subsidiaries of Etelequote Limited (“e-TeleQuote”). During the second quarter of 2021, transaction-related expenses were $2.1 million. A reconciliation of non-GAAP to GAAP financial measures is included at the end of this release.
Adjusted operating revenues were $654.2 million, increasing 25% compared to the second quarter of 2020. Adjusted net operating income of $129.4 million increased 31%, while diluted adjusted operating earnings per share of $3.25 increased 33% compared to the same quarter last year. ROAE was 27.8% during the second quarter of 2021 and 25.6% during the second quarter of 2020.
1
Second quarter results reflect clients’ continued demand for investment products and term life protection, strength in equity markets, and elevated persistency across all durations of the Company’s in-force Term Life insurance business. Clients remain focused on the future and planning for retirement which, when combined with strong equity markets, pushed investment products sales over $3.0 billion for the first time in Company history. The Term Life segment continues to experience elevated death claims due to a combination of COVID-related deaths as well as excess mortality not identified as COVID.
“Sales results in our core businesses remain very strong,” said Glenn Williams, Chief Executive Officer. “We are encouraged by our continued momentum and remain focused on growing our sales force as the licensing process starts to normalize and new recruits resume their pre-COVID activities.”
Second Quarter Distribution & Segment Results
Distribution Results |
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Q2 2021 |
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Q2 2020 |
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% Change |
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Life-Licensed Sales Force (1) |
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132,041 |
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134,157 |
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(2 |
)% |
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Recruits |
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89,285 |
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133,123 |
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(33 |
)% |
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New Life-Licensed Representatives |
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10,112 |
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12,250 |
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(17 |
)% |
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Life Insurance Policies Issued |
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90,071 |
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94,044 |
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(4 |
)% |
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Life Productivity (2) |
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0.23 |
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0.24 |
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* |
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ISP Product Sales ($ billions) |
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$ |
3.04 |
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$ |
1.69 |
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80 |
% |
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Average Client Asset Values ($ billions) |
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$ |
89.38 |
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$ |
64.64 |
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38 |
% |
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Closed U.S. Mortgage Volume ($ million brokered) |
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$ |
298.6 |
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$ |
65.8 |
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* |
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(1) |
End of period |
(2) |
Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month |
* Not calculated
Segment Results |
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Q2 2021 |
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Q2 2020 |
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% Change |
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($ in thousands) |
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Adjusted Operating Revenues: |
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Term Life Insurance |
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$ |
383,536 |
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$ |
328,233 |
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17 |
% |
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Investment and Savings Products |
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238,012 |
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164,181 |
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45 |
% |
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Corporate and Other Distributed Products (1) |
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32,607 |
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29,400 |
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11 |
% |
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Total adjusted operating revenues (1) |
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$ |
654,155 |
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$ |
521,814 |
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25 |
% |
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Adjusted Operating Income (Loss) before income taxes: |
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Term Life Insurance |
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$ |
116,778 |
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$ |
94,904 |
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23 |
% |
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Investment and Savings Products |
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71,154 |
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46,860 |
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52 |
% |
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Corporate and Other Distributed Products (1) |
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(16,888 |
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(11,703 |
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44 |
% |
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Total adjusted operating income before income taxes (1) |
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$ |
171,044 |
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$ |
130,061 |
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32 |
% |
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(1) |
See the Non-GAAP Financial Measures section and the Adjusted Operating Results reconciliation tables at the end of this release for additional information. |
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Life Insurance Licensed Sales Force
During the second quarter, the Company recruited nearly 90,000 individuals and over 10,000 representatives obtained a new life insurance license. Year-over-year comparisons are challenging due to measures introduced last year to mitigate the COVID shutdown. The Company remains focused on converting new recruits to licensed representatives despite disruptions in the licensing process.
At June 30, 2021, the Company had a total of 132,041 independent life-licensed representatives, including an estimated 2,400 individuals with COVID-related temporary licenses or licenses with an extended renewal date. Experience suggests the likelihood of conversion to a permanent license or ultimately renewing an extended renewal diminishes over time. At this point, the 2,400 individuals are not expected to remain licensed.
Term Life Insurance
Term life continues to experience strong results with revenues increasing to $383.5 million, or 17% year-over-year, driven by 16% growth in adjusted direct premiums from strong sales and favorable persistency. Pre-tax income of $116.8 million increased 23% over the prior year period.
Client demand for term life insurance protection remains high. During the quarter, the Company issued over 90,000 life insurance policies, only 4% below the heightened level issued last year when the onset of COVID created a surge in demand for new policies. Productivity for the quarter, which is seasonally elevated in the second quarter, remained above the Company’s historical range at 0.23 policies per life-licensed representatives per month versus 0.24 in the prior year’s second quarter, reflecting the continued favorable sentiment for protection products.
COVID claims of approximately $6 million during the quarter were generally in line with expectations and $4 million lower than the prior year period. The Company also experienced about $3 million in higher claims not identified as COVID in the current period that we believe is normal volatility. Persistency remains above historical levels and improved over the already strong persistency experienced a year ago. Better persistency reduced DAC amortization by $6 million, partially offset by a $2 million higher benefit reserve increase year-over-year. Insurance expenses increased 12% due to growth in the business, higher employee costs and investments in technology.
Investment and Savings Products
Investment sales remained at record levels with a total of $3.0 billion in new sales during the second quarter of 2021. Strong equity markets that continue to fuel investor confidence, combined with clients’ increased focus on saving for the future, led to significant growth across all products, including mutual funds, annuities and managed accounts. Net client inflows of $1.2 billion during the quarter were approximately twice the level in the prior year period. Client asset values ended the quarter at $91.7 billion,
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an increase of 34% year-over-year, reflecting strong market performance and nearly $3.5 billion of net client inflows over the last twelve months.
Revenues of $238.0 million during the second quarter increased 45% compared to the same quarter in 2020, while pre-tax income of $71.2 million increased 52%. Sales-based revenues increased 67% while revenue generating sales increased 79%. Revenue growth lagged the growth in sales due to a higher proportion of large mutual fund trades, which earn a lower per-sale commission. Asset-based revenues increased 39% year-over-year, in line with the increase in average client asset values. Sales and asset-based commission expenses were largely in line with revenues. Canadian segregated fund DAC amortization during the second quarter of 2021 was higher by approximately $1.7 million compared to the second quarter of 2020 due to the significant market correction during the prior year period. Other operating expenses increased 11% year-over-year largely due to the growth in the underlying business.
Corporate and Other Distributed Products
During the second quarter of 2021, the segment recorded an adjusted operating loss before taxes of $16.9 million compared to $11.7 million in the prior year’s second quarter. Segment adjusted revenues increased $3.2 million, or 11% year-over-year, with commissions and fees from mortgage sales increasing $4.8 million. Allocated net investment income decreased $2.0 million from lower portfolio yields and a higher allocation to the Term Life segment to support the growing block of business, partially offset by a larger invested asset portfolio.
Sales commissions and other operating expenses increased $9.2 million, or $7.1 million when excluding the $2.1 million in e-TeleQuote transaction-related expenses recognized during the quarter. The remainder of the year-over-year increase was due in part to $3.1 million in mortgage commissions and support costs as well as approximately $3 million of employee-related costs and continued spending on growth initiatives and technology. Benefits and claims increased $1.6 million year-over-year primarily due to the lower interest rate environment and improved persistency on a closed block of discontinued business.
Taxes
The effective tax rate remains relatively unchanged at 24.4% in the second quarter of 2021 compared to 24.3% in the second quarter of 2020.
Capital
As of June 30, 2021, invested assets and cash at the holding company was $666.0 million, reflecting the liquidity build-up to fund the acquisition of e-TeleQuote, which closed on July 1. Immediately following the closing, invested assets and cash at the holding company was $169.1 million. The NAIC recently adopted new bond factors that go into effect for 2021 year-end reporting. Using this new approach, Primerica Life Insurance Company's statutory risk-based capital (RBC) ratio is estimated at 410% at
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June 30, 2021. The Board of Directors has approved a dividend of $0.47 per share, payable on September 14, 2021, to stockholders of record on August 20, 2021.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, adjusted stockholders’ equity and diluted adjusted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business. Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of realized investment gains (losses) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude realized investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude the transaction-related expenses associated with the purchase of 80% of Etelequote Limited’s operating subsidiaries (collectively “e-TeleQuote”). We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results. Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold.
Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected
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to be reflective of the core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.
Earnings Webcast Information
Primerica will hold a webcast on Friday, August 6, 2021 at 9:00 a.m. Eastern, to discuss the quarter’s results. To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days. This release and a detailed financial supplement will be posted on Primerica’s website.
Forward-Looking Statements
Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of sales representatives; new laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations; any failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality or persistency as reflected in the pricing for our insurance policies; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product, and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; litigation and regulatory investigations and actions concerning us or sales representatives; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary’s status as a non-bank custodian; economic down cycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; litigation and
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regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; any acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; due to our very limited history with e-TeleQuote, we cannot be certain that its business will be successful or that we will successfully address any risks not known to us that may become material; a failure by e-TeleQuote to comply with the requirements of the United States government’s Centers for Medicare and Medicaid Services and those of its carrier partners; legislative or regulatory changes to Medicare Advantage or changes to the implementing guidance by the Centers for Medicare and Medicaid Services; e-TeleQuote’s inability to acquire or generate leads on commercially viable terms, convert leads to sales or if customer policyholder retention is lower than assumed; e-TeleQuote’s inability to enroll individuals during the Medicare annual election; the loss of a key carrier, or the modification of commission rates or underwriting practices with a key carrier partner could adversely affect e-TeleQuote’s business; cyber-attack(s), security breaches or if e-TeleQuote is otherwise unable to safeguard the security and privacy of confidential data, including personal health information; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at http://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.
About Primerica, Inc.
Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured approximately 5.5 million lives and had over 2.6 million client investment accounts at December 31, 2020. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2020. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.
Investor Contact:
Nicole Russell
470-564-6663
Email: Nicole.Russell@primerica.com
Keith Hancock
470-564-6328
Email: Keith.Hancock@Primerica.com
7
PRIMERICA, INC. AND SUBSIDIARIES |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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June 30, 2021 |
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December 31, 2020 |
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(In thousands) |
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Assets |
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Investments: |
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Fixed-maturity securities available-for-sale, at fair value |
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$ |
2,514,585 |
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$ |
2,464,611 |
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Fixed-maturity security held-to-maturity, at amortized cost |
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1,368,740 |
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1,346,350 |
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Short-term investments available-for-sale, at fair value |
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40,325 |
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- |
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Equity securities, at fair value |
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39,377 |
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38,023 |
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Trading securities, at fair value |
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33,498 |
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16,300 |
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Policy loans |
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29,449 |
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30,199 |
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Total investments |
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4,025,974 |
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3,895,483 |
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Cash and cash equivalents |
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774,591 |
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547,569 |
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Accrued investment income |
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18,698 |
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17,618 |
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Reinsurance recoverables |
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4,239,510 |
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4,273,904 |
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Deferred policy acquisition costs, net |
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2,808,347 |
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2,629,644 |
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Agent balances, due premiums and other receivables |
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273,493 |
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259,448 |
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Intangible assets |
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45,275 |
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45,275 |
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Income taxes |
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75,069 |
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73,290 |
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Operating lease right-of-use assets |
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44,037 |
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46,567 |
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Other assets |
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469,050 |
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456,967 |
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Separate account assets |
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2,745,827 |
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2,659,520 |
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Total assets |
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$ |
15,519,871 |
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$ |
14,905,285 |
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Liabilities and Stockholders' Equity |
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Liabilities: |
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Future policy benefits |
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$ |
6,984,272 |
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$ |
6,790,557 |
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Unearned and advance premiums |
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20,229 |
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17,136 |
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Policy claims and other benefits payable |
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471,290 |
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519,711 |
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Other policyholders' funds |
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485,855 |
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447,765 |
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Notes payable – Long term |
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374,606 |
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374,415 |
|
Other debt obligations - Long term |
|
|
125,000 |
|
|
|
- |
|
Surplus note |
|
|
1,368,194 |
|
|
|
1,345,772 |
|
Income taxes |
|
|
204,197 |
|
|
|
223,496 |
|
Operating lease liabilities |
|
|
50,194 |
|
|
|
52,806 |
|
Other liabilities |
|
|
590,831 |
|
|
|
566,068 |
|
Payable under securities lending |
|
|
80,613 |
|
|
|
72,154 |
|
Separate account liabilities |
|
|
2,745,827 |
|
|
|
2,659,520 |
|
Total liabilities |
|
|
13,501,108 |
|
|
|
13,069,400 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
394 |
|
|
|
393 |
|
Paid-in capital |
|
|
12,880 |
|
|
|
- |
|
Retained earnings |
|
|
1,894,539 |
|
|
|
1,705,786 |
|
Accumulated other comprehensive income (loss), net of income tax |
|
|
110,950 |
|
|
|
129,706 |
|
Total stockholders' equity |
|
|
2,018,763 |
|
|
|
1,835,885 |
|
Total liabilities and stockholders' equity |
|
$ |
15,519,871 |
|
|
$ |
14,905,285 |
|
8
PRIMERICA, INC. AND SUBSIDIARIES |
|
|||||||
Condensed Consolidated Statements of Income |
|
|||||||
(Unaudited) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
|
|
(In thousands, except per-share amounts) |
|
|||||
Revenues: |
|
|
|
|
|
|
|
|
Direct premiums |
|
$ |
780,299 |
|
|
$ |
717,088 |
|
Ceded premiums |
|
|
(413,850 |
) |
|
|
(402,549 |
) |
Net premiums |
|
|
366,449 |
|
|
|
314,539 |
|
Commissions and fees |
|
|
250,688 |
|
|
|
171,788 |
|
Net investment income |
|
|
20,535 |
|
|
|
22,710 |
|
Realized investment gains (losses) |
|
|
701 |
|
|
|
1,742 |
|
Other, net |
|
|
16,313 |
|
|
|
15,036 |
|
Total revenues |
|
|
654,686 |
|
|
|
525,815 |
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
Benefits and claims |
|
|
168,347 |
|
|
|
139,646 |
|
Amortization of deferred policy acquisition costs |
|
|
54,286 |
|
|
|
53,177 |
|
Sales commissions |
|
|
131,303 |
|
|
|
85,492 |
|
Insurance expenses |
|
|
48,579 |
|
|
|
43,753 |
|
Insurance commissions |
|
|
8,838 |
|
|
|
6,333 |
|
Interest expense |
|
|
7,141 |
|
|
|
7,200 |
|
Other operating expenses |
|
|
66,726 |
|
|
|
56,152 |
|
Total benefits and expenses |
|
|
485,220 |
|
|
|
391,753 |
|
Income before income taxes |
|
|
169,466 |
|
|
|
134,062 |
|
Income taxes |
|
|
41,304 |
|
|
|
32,552 |
|
Net income |
|
$ |
128,162 |
|
|
$ |
101,510 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
3.23 |
|
|
$ |
2.52 |
|
Diluted earnings per share |
|
$ |
3.22 |
|
|
$ |
2.51 |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
39,531 |
|
|
|
40,132 |
|
Diluted |
|
|
39,652 |
|
|
|
40,246 |
|
9
PRIMERICA, INC. AND SUBSIDIARIES |
|
|||||||||||
Consolidated Adjusted Operating Results Reconciliation |
|
|||||||||||
(Unaudited – in thousands, except per share amounts) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|||
Total revenues |
|
$ |
654,686 |
|
|
$ |
525,815 |
|
|
|
25 |
% |
Less: Realized investment gains (losses) |
|
|
701 |
|
|
|
1,742 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(170 |
) |
|
|
2,259 |
|
|
|
|
|
Adjusted operating revenues |
|
$ |
654,155 |
|
|
$ |
521,814 |
|
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
169,466 |
|
|
$ |
134,062 |
|
|
|
26 |
% |
Less: Realized investment gains (losses) |
|
|
701 |
|
|
|
1,742 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(170 |
) |
|
|
2,259 |
|
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
(2,109 |
) |
|
|
- |
|
|
|
|
|
Adjusted operating income before income taxes |
|
$ |
171,044 |
|
|
$ |
130,061 |
|
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
128,162 |
|
|
$ |
101,510 |
|
|
|
26 |
% |
Less: Realized investment gains (losses) |
|
|
701 |
|
|
|
1,742 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(170 |
) |
|
|
2,259 |
|
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
(2,109 |
) |
|
|
- |
|
|
|
|
|
Less: Tax impact of preceding items |
|
|
385 |
|
|
|
(972 |
) |
|
|
|
|
Adjusted net operating income |
|
$ |
129,355 |
|
|
$ |
98,481 |
|
|
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (1) |
|
$ |
3.22 |
|
|
$ |
2.51 |
|
|
|
28 |
% |
Less: Net after-tax impact of operating adjustments |
|
|
(0.03 |
) |
|
|
0.07 |
|
|
|
|
|
Diluted adjusted operating earnings per share (1) |
|
$ |
3.25 |
|
|
$ |
2.44 |
|
|
|
33 |
% |
(1) |
Percentage change in earnings per share is calculated prior to rounding per share amounts. |
TERM LIFE INSURANCE SEGMENT |
|
|||||||||||
Adjusted Premiums Reconciliation |
|
|||||||||||
(Unaudited – in thousands) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|||
Direct premiums |
|
$ |
774,500 |
|
|
$ |
711,188 |
|
|
|
9 |
% |
Less: Premiums ceded to IPO coinsurers |
|
|
246,874 |
|
|
|
257,529 |
|
|
|
|
|
Adjusted direct premiums |
|
$ |
527,626 |
|
|
$ |
453,659 |
|
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceded premiums |
|
$ |
(412,028 |
) |
|
$ |
(400,919 |
) |
|
|
|
|
Less: Premiums ceded to IPO coinsurers |
|
|
(246,874 |
) |
|
|
(257,529 |
) |
|
|
|
|
Other ceded premiums |
|
$ |
(165,154 |
) |
|
$ |
(143,390 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums |
|
$ |
362,472 |
|
|
$ |
310,269 |
|
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
10
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT |
|
|||||||||||
Adjusted Operating Results Reconciliation |
|
|||||||||||
(Unaudited – in thousands) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|||
Total revenues |
|
$ |
33,138 |
|
|
$ |
33,401 |
|
|
|
(1 |
)% |
Less: Realized investment gains (losses) |
|
|
701 |
|
|
|
1,742 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(170 |
) |
|
|
2,259 |
|
|
|
|
|
Adjusted operating revenues |
|
$ |
32,607 |
|
|
$ |
29,400 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
$ |
(18,466 |
) |
|
$ |
(7,702 |
) |
|
|
140 |
% |
Less: Realized investment gains (losses) |
|
|
701 |
|
|
|
1,742 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(170 |
) |
|
|
2,259 |
|
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
(2,109 |
) |
|
|
- |
|
|
|
|
|
Adjusted operating loss before income taxes |
|
$ |
(16,888 |
) |
|
$ |
(11,703 |
) |
|
|
44 |
% |
PRIMERICA, INC. AND SUBSIDIARIES |
|
|||||||||||
Adjusted Stockholders' Equity Reconciliation |
|
|||||||||||
(Unaudited – in thousands) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
|
December 31, 2020 |
|
|
% Change |
|
|||
Stockholders' equity |
|
$ |
2,018,763 |
|
|
$ |
1,835,885 |
|
|
|
10 |
% |
Less: Unrealized net investment gains (losses) recorded in stockholders' equity, net of income tax |
|
|
96,990 |
|
|
|
128,128 |
|
|
|
|
|
Adjusted stockholders' equity |
|
$ |
1,921,773 |
|
|
$ |
1,707,757 |
|
|
|
13 |
% |
11
Exhibit 99.2
Supplemental Financial Information
Second Quarter 2021
Table of Contents |
PRIMERICA, INC. Financial Supplement |
|
Page |
Preface, definition of Non-GAAP financial measures |
3 |
Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures |
4 |
Financial results and other statistical data |
5 |
Statements of income |
6 |
Reconciliation of statement of income GAAP to non-GAAP financial measures |
7 |
Segment operating results |
8 |
Term Life Insurance segment - financial results, key statistics, and financial analysis |
9-10 |
Investment and Savings Products segment - financial results, financial analysis, and key statistics |
11-12 |
Investment portfolio |
13-15 |
Five-year historical key statistics |
16 |
This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2020.
2 of 16
Preface |
PRIMERICA, INC. Financial Supplement |
Second Quarter 2021
This document is a financial supplement to our first quarter 2021 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:
|
• |
Operating adjustments exclude the impact of realized investment gains/losses, including credit impairments, mark-to-market (MTM) investment adjustments, and transaction-related expenses associated with the purchase of 80% of Etelequote Limited’s operating subsidiaries (collectively, “e-TeleQuote”). We exclude realized investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated with the Company's insurance operations. We exclude e-TeleQuote transaction-related expenses in our non-GAAP financial measures as such expenses are non-recurring items that will cause incomparability between period-over-period results. |
|
|
• |
Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets. We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is sold. |
|
|
• |
IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO). We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business. |
|
Management utilizes these non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business. Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.
Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item. Certain items throughout this supplement are noted as ‘na’ to indicate not applicable. Certain variances are noted as ‘nm’ to indicate not meaningful. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.
3 of 16
Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures |
PRIMERICA, INC. Financial Supplement |
(Dollars in thousands) |
Dec 31, 2019 |
|
Mar 31, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2020 |
|
Mar 31, 2021 |
|
Jun 30, 2021 |
|
|||||||||||||
Condensed Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Investments and cash excluding securities held to maturity |
$ |
2,730,715 |
|
$ |
2,626,043 |
|
$ |
2,805,065 |
|
$ |
2,861,883 |
|
$ |
3,096,703 |
|
$ |
3,133,860 |
|
$ |
3,431,825 |
|
|||||
|
Securities held to maturity |
|
1,184,370 |
|
|
1,237,270 |
|
|
1,278,580 |
|
|
1,323,740 |
|
|
1,346,350 |
|
|
1,362,210 |
|
|
1,368,740 |
|
|||||
|
|
|
Total investments and cash |
|
3,915,085 |
|
|
3,863,313 |
|
|
4,083,645 |
|
|
4,185,623 |
|
|
4,443,053 |
|
|
4,496,070 |
|
|
4,800,565 |
|
|||
|
Due from reinsurers |
|
4,169,823 |
|
|
4,132,897 |
|
|
4,217,129 |
|
|
4,229,088 |
|
|
4,273,904 |
|
|
4,345,483 |
|
|
4,239,510 |
|
|||||
|
Deferred policy acquisition costs |
|
2,325,750 |
|
|
2,346,656 |
|
|
2,434,462 |
|
|
2,532,409 |
|
|
2,629,644 |
|
|
2,712,169 |
|
|
2,808,347 |
|
|||||
|
Other assets |
|
792,129 |
|
|
799,123 |
|
|
851,660 |
|
|
885,083 |
|
|
899,165 |
|
|
921,236 |
|
|
925,621 |
|
|||||
|
Separate account assets |
|
2,485,745 |
|
|
2,128,924 |
|
|
2,377,654 |
|
|
2,468,328 |
|
|
2,659,520 |
|
|
2,638,901 |
|
|
2,745,827 |
|
|||||
|
|
|
Total assets |
$ |
13,688,532 |
|
$ |
13,270,912 |
|
$ |
13,964,550 |
|
$ |
14,300,532 |
|
$ |
14,905,286 |
|
$ |
15,113,858 |
|
$ |
15,519,871 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Future policy benefits |
$ |
6,446,569 |
|
$ |
6,472,397 |
|
$ |
6,567,169 |
|
$ |
6,664,061 |
|
$ |
6,790,557 |
|
$ |
6,885,115 |
|
$ |
6,984,272 |
|
|||||
|
Other policy liabilities |
|
744,087 |
|
|
737,435 |
|
|
855,083 |
|
|
911,454 |
|
|
984,612 |
|
|
1,020,349 |
|
|
977,373 |
|
|||||
|
Income taxes |
|
209,221 |
|
|
208,357 |
|
|
265,369 |
|
|
216,639 |
|
|
223,496 |
|
|
235,233 |
|
|
204,197 |
|
|||||
|
Other liabilities |
|
563,930 |
|
|
554,014 |
|
|
574,426 |
|
|
573,254 |
|
|
618,874 |
|
|
633,719 |
|
|
641,025 |
|
|||||
|
Debt obligations |
|
374,037 |
|
|
374,131 |
|
|
374,226 |
|
|
374,320 |
|
|
374,415 |
|
|
374,511 |
|
|
499,606 |
|
|||||
|
Surplus note |
|
1,183,728 |
|
|
1,236,644 |
|
|
1,277,970 |
|
|
1,323,146 |
|
|
1,345,772 |
|
|
1,361,648 |
|
|
1,368,194 |
|
|||||
|
Payable under securities lending |
|
28,723 |
|
|
28,896 |
|
|
29,973 |
|
|
48,883 |
|
|
72,154 |
|
|
87,190 |
|
|
80,613 |
|
|||||
|
Separate account liabilities |
|
2,485,745 |
|
|
2,128,924 |
|
|
2,377,654 |
|
|
2,468,328 |
|
|
2,659,520 |
|
|
2,638,901 |
|
|
2,745,827 |
|
|||||
|
|
|
Total liabilities |
|
12,036,039 |
|
|
11,740,798 |
|
|
12,321,870 |
|
|
12,580,086 |
|
|
13,069,401 |
|
|
13,236,666 |
|
|
13,501,107 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Common stock ($0.01 par value) (1) |
|
412 |
|
|
405 |
|
|
397 |
|
|
394 |
|
|
393 |
|
|
394 |
|
|
394 |
|
|||||
|
Paid-in capital |
|
(0 |
) |
|
(0 |
) |
|
(0 |
) |
|
(0 |
) |
|
(0 |
) |
|
8,138 |
|
|
12,880 |
|
|||||
|
Retained earnings |
|
1,593,281 |
|
|
1,565,803 |
|
|
1,569,689 |
|
|
1,629,114 |
|
|
1,705,786 |
|
|
1,785,037 |
|
|
1,894,539 |
|
|||||
|
Treasury stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
|
Accumulated other comprehensive income (loss), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Net unrealized gains (losses) |
|
64,564 |
|
|
(1,318 |
) |
|
93,726 |
|
|
105,758 |
|
|
128,128 |
|
|
77,053 |
|
|
96,990 |
|
||||
|
|
Cumulative translation adjustment |
|
(5,765 |
) |
|
(34,776 |
) |
|
(21,132 |
) |
|
(14,820 |
) |
|
1,578 |
|
|
6,570 |
|
|
13,960 |
|
||||
|
|
|
Total stockholders’ equity |
|
1,652,492 |
|
|
1,530,114 |
|
|
1,642,680 |
|
|
1,720,446 |
|
|
1,835,885 |
|
|
1,877,192 |
|
|
2,018,764 |
|
|||
|
|
|
Total liabilities and stockholders' equity |
$ |
13,688,530 |
|
$ |
13,270,912 |
|
$ |
13,964,550 |
|
$ |
14,300,532 |
|
$ |
14,905,286 |
|
$ |
15,113,858 |
|
$ |
15,519,871 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total stockholders' equity |
$ |
1,652,492 |
|
$ |
1,530,114 |
|
$ |
1,642,680 |
|
$ |
1,720,446 |
|
$ |
1,835,885 |
|
$ |
1,877,192 |
|
$ |
2,018,764 |
|
||||||
|
Less: Net unrealized gains (losses) |
|
64,564 |
|
|
(1,318 |
) |
|
93,726 |
|
|
105,758 |
|
|
128,128 |
|
|
77,053 |
|
|
96,990 |
|
|||||
|
|
|
Adjusted stockholders’ equity |
$ |
1,587,928 |
|
$ |
1,531,431 |
|
$ |
1,548,954 |
|
$ |
1,614,688 |
|
$ |
1,707,757 |
|
$ |
1,800,139 |
|
$ |
1,921,774 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Stockholders' Equity Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, beginning of period |
$ |
1,541,436 |
|
$ |
1,587,928 |
|
$ |
1,531,431 |
|
$ |
1,548,954 |
|
$ |
1,614,688 |
|
$ |
1,707,757 |
|
$ |
1,800,139 |
|
||||||
|
Net Income |
|
93,557 |
|
|
72,469 |
|
|
101,510 |
|
|
112,101 |
|
|
100,084 |
|
|
97,872 |
|
|
128,162 |
|
|||||
|
Shareholder dividends |
|
(14,162 |
) |
|
(16,530 |
) |
|
(16,083 |
) |
|
(15,882 |
) |
|
(15,851 |
) |
|
(18,620 |
) |
|
(18,660 |
) |
|||||
|
Retirement of shares and warrants |
|
(44,137 |
) |
|
(95,676 |
) |
|
(86,513 |
) |
|
(41,556 |
) |
|
(13,426 |
) |
|
(5,966 |
) |
|
(521 |
) |
|||||
|
Net foreign currency translation adjustment |
|
6,500 |
|
|
(29,011 |
) |
|
13,645 |
|
|
6,312 |
|
|
16,398 |
|
|
4,992 |
|
|
7,390 |
|
|||||
|
Other, net |
|
4,734 |
|
|
12,252 |
|
|
4,964 |
|
|
4,759 |
|
|
5,864 |
|
|
14,105 |
|
|
5,264 |
|
|||||
Balance, end of period |
$ |
1,587,928 |
|
$ |
1,531,431 |
|
$ |
1,548,954 |
|
$ |
1,614,688 |
|
$ |
1,707,757 |
|
$ |
1,800,139 |
|
$ |
1,921,774 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Policy Acquisition Costs Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, beginning of period |
$ |
2,281,560 |
|
$ |
2,325,750 |
|
$ |
2,346,656 |
|
$ |
2,434,462 |
|
$ |
2,532,409 |
|
$ |
2,629,644 |
|
$ |
2,712,169 |
|
||||||
|
General expenses deferred |
|
8,608 |
|
|
9,726 |
|
|
9,205 |
|
|
9,702 |
|
|
9,510 |
|
|
10,558 |
|
|
10,055 |
|
|||||
|
Commission costs deferred |
|
97,538 |
|
|
104,793 |
|
|
120,967 |
|
|
130,719 |
|
|
128,084 |
|
|
134,188 |
|
|
136,085 |
|
|||||
|
Amortization of deferred policy acquisition costs |
|
(67,279 |
) |
|
(70,311 |
) |
|
(53,177 |
) |
|
(47,491 |
) |
|
(53,342 |
) |
|
(66,105 |
) |
|
(54,286 |
) |
|||||
|
Foreign currency impact and other, net |
|
5,322 |
|
|
(23,302 |
) |
|
10,812 |
|
|
5,017 |
|
|
12,984 |
|
|
3,884 |
|
|
4,324 |
|
|||||
Balance, end of period |
$ |
2,325,750 |
|
$ |
2,346,656 |
|
$ |
2,434,462 |
|
$ |
2,532,409 |
|
$ |
2,629,644 |
|
$ |
2,712,169 |
|
$ |
2,808,347 |
|
(1) |
Outstanding common shares exclude restricted stock units. |
4 of 16
Financial Results and Other Statistical Data |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands, except per-share data) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$/# Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$/# Change |
|
% Change |
|
||||||||||||||||
Earnings per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted-average common shares and fully vested equity awards |
|
41,131,200 |
|
|
40,131,877 |
|
|
39,587,978 |
|
|
39,420,628 |
|
|
39,455,948 |
|
|
39,530,691 |
|
|
(601,186 |
) |
|
-1.5 |
% |
|
40,631,539 |
|
|
39,493,526 |
|
|
(1,138,013 |
) |
-2.8% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
26,651 |
|
|
26.3 |
% |
$ |
173,979 |
|
$ |
226,033 |
|
$ |
52,054 |
|
29.9% |
|
||||
|
Less income attributable to unvested participating securities |
|
(310 |
) |
|
(437 |
) |
|
(493 |
) |
|
(433 |
) |
|
(417 |
) |
|
(525 |
) |
|
(88 |
) |
|
-20.2 |
% |
|
(747 |
) |
|
(945 |
) |
|
(197 |
) |
-26.4% |
|
||||
|
|
Net income used in computing basic EPS |
$ |
72,159 |
|
$ |
101,073 |
|
$ |
111,608 |
|
$ |
99,651 |
|
$ |
97,455 |
|
$ |
127,636 |
|
$ |
26,563 |
|
|
26.3 |
% |
$ |
173,232 |
|
$ |
225,089 |
|
$ |
51,857 |
|
29.9% |
|
|||
|
|
Basic earnings per share |
$ |
1.75 |
|
$ |
2.52 |
|
$ |
2.82 |
|
$ |
2.53 |
|
$ |
2.47 |
|
$ |
3.23 |
|
$ |
0.71 |
|
|
28.2 |
% |
$ |
4.26 |
|
$ |
5.70 |
|
$ |
1.44 |
|
33.7% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income |
$ |
85,047 |
|
$ |
98,480 |
|
$ |
110,718 |
|
$ |
97,339 |
|
$ |
97,129 |
|
$ |
129,355 |
|
$ |
30,875 |
|
|
31.4 |
% |
$ |
183,527 |
|
$ |
226,485 |
|
$ |
42,958 |
|
23.4% |
|
||||
|
Less operating income attributable to unvested participating securities |
|
(364 |
) |
|
(424 |
) |
|
(487 |
) |
|
(421 |
) |
|
(414 |
) |
|
(530 |
) |
|
(106 |
) |
|
-25.0 |
% |
|
(788 |
) |
|
(947 |
) |
|
(158 |
) |
-20.1% |
|
||||
|
|
Adjusted net operating income used in computing basic operating EPS |
$ |
84,682 |
|
$ |
98,056 |
|
$ |
110,231 |
|
$ |
96,918 |
|
$ |
96,715 |
|
$ |
128,825 |
|
$ |
30,769 |
|
|
31.4 |
% |
$ |
182,739 |
|
$ |
225,538 |
|
$ |
42,799 |
|
23.4% |
|
|||
|
|
Basic adjusted operating income per share |
$ |
2.06 |
|
$ |
2.44 |
|
$ |
2.78 |
|
$ |
2.46 |
|
$ |
2.45 |
|
$ |
3.26 |
|
$ |
0.82 |
|
|
33.4 |
% |
$ |
4.50 |
|
$ |
5.71 |
|
$ |
1.21 |
|
27.0% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted-average common shares and fully vested equity awards |
|
41,131,200 |
|
|
40,131,877 |
|
|
39,587,978 |
|
|
39,420,628 |
|
|
39,455,948 |
|
|
39,530,691 |
|
|
(601,186 |
) |
|
-1.5 |
% |
|
40,631,539 |
|
|
39,493,526 |
|
|
(1,138,013 |
) |
-2.8% |
|
||||
|
Dilutive impact of contingently issuable shares |
|
107,361 |
|
|
114,090 |
|
|
122,097 |
|
|
133,544 |
|
|
124,505 |
|
|
121,594 |
|
|
7,504 |
|
|
6.6 |
% |
|
110,725 |
|
|
123,050 |
|
|
12,325 |
|
11.1% |
|
||||
|
|
Shares used to calculate diluted EPS |
|
41,238,561 |
|
|
40,245,967 |
|
|
39,710,075 |
|
|
39,554,172 |
|
|
39,580,453 |
|
|
39,652,285 |
|
|
(593,682 |
) |
|
-1.5 |
% |
|
40,742,264 |
|
|
39,616,576 |
|
|
(1,125,689 |
) |
-2.8% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
26,651 |
|
|
26.3 |
% |
$ |
173,979 |
|
$ |
226,033 |
|
$ |
52,054 |
|
29.9% |
|
||||
|
Less income attributable to unvested participating securities |
|
(310 |
) |
|
(436 |
) |
|
(492 |
) |
|
(431 |
) |
|
(416 |
) |
|
(524 |
) |
|
(88 |
) |
|
-20.1 |
% |
|
(746 |
) |
|
(942 |
) |
|
(197 |
) |
-26.4% |
|
||||
|
|
Net income used in computing diluted EPS |
$ |
72,159 |
|
$ |
101,074 |
|
$ |
111,609 |
|
$ |
99,652 |
|
$ |
97,456 |
|
$ |
127,638 |
|
$ |
26,564 |
|
|
26.3 |
% |
$ |
173,234 |
|
$ |
225,091 |
|
$ |
51,857 |
|
29.9% |
|
|||
|
|
Diluted earnings per share |
$ |
1.75 |
|
$ |
2.51 |
|
$ |
2.81 |
|
$ |
2.52 |
|
$ |
2.46 |
|
$ |
3.22 |
|
$ |
0.71 |
|
|
28.2 |
% |
$ |
4.25 |
|
$ |
5.68 |
|
$ |
1.43 |
|
33.6% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income |
$ |
85,047 |
|
$ |
98,480 |
|
$ |
110,718 |
|
$ |
97,339 |
|
$ |
97,129 |
|
$ |
129,355 |
|
$ |
30,875 |
|
|
31.4 |
% |
$ |
183,527 |
|
$ |
226,485 |
|
$ |
42,958 |
|
23.4% |
|
||||
|
Less operating income attributable to unvested participating securities |
|
(364 |
) |
|
(423 |
) |
|
(486 |
) |
|
(420 |
) |
|
(413 |
) |
|
(529 |
) |
|
(106 |
) |
|
-25.0 |
% |
|
(786 |
) |
|
(944 |
) |
|
(158 |
) |
-20.0% |
|
||||
|
|
Adjusted net operating income used in computing diluted operating EPS |
$ |
84,683 |
|
$ |
98,057 |
|
$ |
110,232 |
|
$ |
96,919 |
|
$ |
96,717 |
|
$ |
128,827 |
|
$ |
30,769 |
|
|
31.4 |
% |
$ |
182,741 |
|
$ |
225,541 |
|
$ |
42,800 |
|
23.4% |
|
|||
|
|
Diluted adjusted operating income per share |
$ |
2.05 |
|
$ |
2.44 |
|
$ |
2.78 |
|
$ |
2.45 |
|
$ |
2.44 |
|
$ |
3.25 |
|
$ |
0.81 |
|
|
33.3 |
% |
$ |
4.49 |
|
$ |
5.69 |
|
$ |
1.21 |
|
26.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
|
|
|
|
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$/# Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$/# Change |
|
% Change |
|
||||||||||||
Annualized Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Average stockholders' equity |
$ |
1,591,303 |
|
$ |
1,586,397 |
|
$ |
1,681,563 |
|
$ |
1,778,166 |
|
$ |
1,856,539 |
|
$ |
1,947,978 |
|
$ |
361,581 |
|
|
22.8 |
% |
$ |
1,588,850 |
|
$ |
1,902,258 |
|
$ |
313,409 |
|
|
19.7 |
% |
|||
|
Average adjusted stockholders' equity |
$ |
1,559,680 |
|
$ |
1,540,193 |
|
$ |
1,581,821 |
|
$ |
1,661,222 |
|
$ |
1,753,948 |
|
$ |
1,860,956 |
|
$ |
320,764 |
|
|
20.8 |
% |
$ |
1,549,936 |
|
$ |
1,807,452 |
|
$ |
257,516 |
|
|
16.6 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income return on stockholders' equity |
|
18.2 |
% |
|
25.6 |
% |
|
26.7 |
% |
|
22.5 |
% |
|
21.1 |
% |
|
26.3 |
% |
|
0.7 |
% |
nm |
|
|
21.9 |
% |
|
23.8 |
% |
|
1.9 |
% |
nm |
|
|||||
|
Net income return on adjusted stockholders' equity |
|
18.6 |
% |
|
26.4 |
% |
|
28.3 |
% |
|
24.1 |
% |
|
22.3 |
% |
|
27.5 |
% |
|
1.2 |
% |
nm |
|
|
22.4 |
% |
|
25.0 |
% |
|
2.6 |
% |
nm |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income return on adjusted stockholders' equity |
|
21.8 |
% |
|
25.6 |
% |
|
28.0 |
% |
|
23.4 |
% |
|
22.2 |
% |
|
27.8 |
% |
|
2.2 |
% |
nm |
|
|
23.7 |
% |
|
25.1 |
% |
|
1.4 |
% |
nm |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Structure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Debt-to-capital (1) |
|
19.6 |
% |
|
18.6 |
% |
|
17.9 |
% |
|
16.9 |
% |
|
16.6 |
% |
|
19.8 |
% |
|
1.3 |
% |
nm |
|
|
18.6 |
% |
|
19.8 |
% |
|
1.3 |
% |
nm |
|
|||||
|
Debt-to-capital, excluding AOCI (1) |
|
19.3 |
% |
|
19.2 |
% |
|
18.7 |
% |
|
18.0 |
% |
|
17.3 |
% |
|
20.8 |
% |
|
1.5 |
% |
nm |
|
|
19.2 |
% |
|
20.8 |
% |
|
1.5 |
% |
nm |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Cash and invested assets to stockholders' equity |
|
2.5 |
x |
|
2.5 |
x |
|
2.4 |
x |
|
2.4 |
x |
|
2.4 |
x |
|
2.4 |
x |
|
(0.1 |
x) |
nm |
|
|
2.5 |
x |
|
2.4 |
x |
|
(0.1 |
x) |
nm |
|
|||||
|
Cash and invested assets to adjusted stockholders' equity |
|
2.5 |
x |
|
2.6 |
x |
|
2.6 |
x |
|
2.6 |
x |
|
2.5 |
x |
|
2.5 |
x |
|
(0.1 |
x) |
nm |
|
|
2.6 |
x |
|
2.5 |
x |
|
(0.1 |
x) |
nm |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Share count, end of period (2) |
|
40,459,767 |
|
|
39,667,002 |
|
|
39,374,259 |
|
|
39,305,902 |
|
|
39,414,085 |
|
|
39,443,561 |
|
|
(223,441 |
) |
|
-0.6 |
% |
|
39,667,002 |
|
|
39,443,561 |
|
|
(223,441 |
) |
|
-0.6 |
% |
|||
|
Adjusted stockholders' equity per share |
$ |
37.85 |
|
$ |
39.05 |
|
$ |
41.01 |
|
$ |
43.45 |
|
$ |
45.67 |
|
$ |
48.72 |
|
$ |
9.67 |
|
|
24.8 |
% |
$ |
39.05 |
|
$ |
48.72 |
|
$ |
9.67 |
|
|
24.8 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Strength Ratings - Primerica Life Insurance Co |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Moody's |
A1 |
|
A1 |
|
A1 |
|
A1 |
|
A1 |
|
A1 |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
|||||||||||||||
|
S&P |
AA- |
|
AA- |
|
AA- |
|
AA- |
|
AA- |
|
AA- |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
|||||||||||||||
|
A.M. Best |
A+ |
|
A+ |
|
A+ |
|
A+ |
|
A+ |
|
A+ |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holding Company Senior Debt Ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Moody's |
Baa1 |
|
Baa1 |
|
Baa1 |
|
Baa1 |
|
Baa1 |
|
Baa1 |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
|||||||||||||||
|
S&P |
A- |
|
A- |
|
A- |
|
A- |
|
A- |
|
A- |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
|||||||||||||||
|
A.M. Best |
a- |
|
a- |
|
a- |
|
a- |
|
a- |
|
a- |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
(1) |
Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable. |
(2) |
Share count reflects outstanding common shares, but excludes restricted stock units (RSUs). |
5 of 16
Statements of Income |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$ Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$ Change |
|
% Change |
|
||||||||||||||||||
Statement of Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Direct premiums |
$ |
702,637 |
|
$ |
717,088 |
|
$ |
736,606 |
|
$ |
750,818 |
|
$ |
762,227 |
|
$ |
780,299 |
|
$ |
63,211 |
|
|
8.8 |
% |
$ |
1,419,725 |
|
$ |
1,542,526 |
|
$ |
122,801 |
|
|
8.6 |
% |
|||||
|
Ceded premiums |
|
(386,825 |
) |
|
(402,549 |
) |
|
(393,716 |
) |
|
(397,676 |
) |
|
(395,973 |
) |
|
(413,850 |
) |
|
(11,300 |
) |
|
-2.8 |
% |
|
(789,374 |
) |
|
(809,822 |
) |
|
(20,448 |
) |
|
-2.6 |
% |
|||||
|
|
Net premiums |
|
315,813 |
|
|
314,539 |
|
|
342,890 |
|
|
353,142 |
|
|
366,254 |
|
|
366,450 |
|
|
51,911 |
|
|
16.5 |
% |
|
630,351 |
|
|
732,704 |
|
|
102,353 |
|
|
16.2 |
% |
||||
|
Net investment income |
|
15,420 |
|
|
22,710 |
|
|
22,953 |
|
|
22,731 |
|
|
20,052 |
|
|
20,535 |
|
|
(2,175 |
) |
|
-9.6 |
% |
|
38,130 |
|
|
40,588 |
|
|
2,458 |
|
|
6.4 |
% |
|||||
|
Commissions and fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Sales-based (1) |
|
80,891 |
|
|
62,812 |
|
|
65,600 |
|
|
75,347 |
|
|
98,112 |
|
|
104,716 |
|
|
41,903 |
|
|
66.7 |
% |
|
143,704 |
|
|
202,828 |
|
|
59,124 |
|
|
41.1 |
% |
||||
|
|
Asset-based (2) |
|
81,395 |
|
|
78,146 |
|
|
86,695 |
|
|
93,669 |
|
|
101,241 |
|
|
108,490 |
|
|
30,345 |
|
|
38.8 |
% |
|
159,540 |
|
|
209,731 |
|
|
50,191 |
|
|
31.5 |
% |
||||
|
|
Account-based (3) |
|
20,204 |
|
|
20,478 |
|
|
21,008 |
|
|
21,351 |
|
|
21,120 |
|
|
21,848 |
|
|
1,371 |
|
|
6.7 |
% |
|
40,682 |
|
|
42,968 |
|
|
2,287 |
|
|
5.6 |
% |
||||
|
|
Other commissions and fees |
|
7,579 |
|
|
10,352 |
|
|
11,999 |
|
|
13,746 |
|
|
13,571 |
|
|
15,635 |
|
|
5,282 |
|
|
51.0 |
% |
|
17,931 |
|
|
29,205 |
|
|
11,274 |
|
|
62.9 |
% |
||||
|
Realized investment (losses) gains |
|
(10,030 |
) |
|
1,742 |
|
|
642 |
|
|
2,650 |
|
|
1,766 |
|
|
701 |
|
|
(1,042 |
) |
|
-59.8 |
% |
|
(8,288 |
) |
|
2,466 |
|
|
10,754 |
|
|
129.8 |
% |
|||||
|
Other, net |
|
13,665 |
|
|
15,036 |
|
|
16,674 |
|
|
15,695 |
|
|
15,595 |
|
|
16,313 |
|
|
1,277 |
|
|
8.5 |
% |
|
28,701 |
|
|
31,908 |
|
|
3,207 |
|
|
11.2 |
% |
|||||
|
Total revenues |
|
524,936 |
|
|
525,815 |
|
|
568,460 |
|
|
598,330 |
|
|
637,711 |
|
|
654,687 |
|
|
128,872 |
|
|
24.5 |
% |
|
1,050,751 |
|
|
1,292,399 |
|
|
241,647 |
|
|
23.0 |
% |
|||||
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Benefits and claims |
|
134,813 |
|
|
139,646 |
|
|
160,166 |
|
|
180,945 |
|
|
183,789 |
|
|
168,347 |
|
|
28,701 |
|
|
20.6 |
% |
|
274,459 |
|
|
352,136 |
|
|
77,678 |
|
|
28.3 |
% |
|||||
|
Amortization of DAC |
|
70,311 |
|
|
53,177 |
|
|
47,491 |
|
|
53,342 |
|
|
66,105 |
|
|
54,286 |
|
|
1,109 |
|
|
2.1 |
% |
|
123,488 |
|
|
120,390 |
|
|
(3,098 |
) |
|
-2.5 |
% |
|||||
|
Insurance commissions |
|
6,844 |
|
|
6,333 |
|
|
9,694 |
|
|
9,263 |
|
|
8,740 |
|
|
8,838 |
|
|
2,505 |
|
|
39.6 |
% |
|
13,177 |
|
|
17,578 |
|
|
4,401 |
|
|
33.4 |
% |
|||||
|
Insurance expenses |
|
48,709 |
|
|
43,753 |
|
|
46,109 |
|
|
49,546 |
|
|
48,766 |
|
|
48,579 |
|
|
4,826 |
|
|
11.0 |
% |
|
92,463 |
|
|
97,345 |
|
|
4,883 |
|
|
5.3 |
% |
|||||
|
Sales commissions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Sales-based (1) |
|
56,561 |
|
|
44,834 |
|
|
46,821 |
|
|
52,931 |
|
|
68,594 |
|
|
73,629 |
|
|
28,795 |
|
|
64.2 |
% |
|
101,395 |
|
|
142,224 |
|
|
40,828 |
|
|
40.3 |
% |
||||
|
|
Asset-based (2) |
|
36,323 |
|
|
35,673 |
|
|
39,349 |
|
|
43,227 |
|
|
46,866 |
|
|
50,488 |
|
|
14,816 |
|
|
41.5 |
% |
|
71,996 |
|
|
97,355 |
|
|
25,359 |
|
|
35.2 |
% |
||||
|
|
Other sales commissions |
|
3,723 |
|
|
4,985 |
|
|
5,779 |
|
|
6,430 |
|
|
6,434 |
|
|
7,185 |
|
|
2,200 |
|
|
44.1 |
% |
|
8,708 |
|
|
13,619 |
|
|
4,911 |
|
|
56.4 |
% |
||||
|
Interest expense |
|
7,192 |
|
|
7,200 |
|
|
7,221 |
|
|
7,225 |
|
|
7,145 |
|
|
7,141 |
|
|
(60 |
) |
|
-0.8 |
% |
|
14,392 |
|
|
14,285 |
|
|
(107 |
) |
|
-0.7 |
% |
|||||
|
Other operating expenses |
|
65,914 |
|
|
56,152 |
|
|
59,348 |
|
|
63,781 |
|
|
72,964 |
|
|
66,730 |
|
|
10,578 |
|
|
18.8 |
% |
|
122,066 |
|
|
139,693 |
|
|
17,627 |
|
|
14.4 |
% |
|||||
|
Total benefits and expenses |
|
430,391 |
|
|
391,753 |
|
|
421,978 |
|
|
466,690 |
|
|
509,403 |
|
|
485,222 |
|
|
93,469 |
|
|
23.9 |
% |
|
822,144 |
|
|
994,625 |
|
|
172,482 |
|
|
21.0 |
% |
|||||
|
Income before income taxes |
|
94,546 |
|
|
134,062 |
|
|
146,482 |
|
|
131,640 |
|
|
128,308 |
|
|
169,465 |
|
|
35,403 |
|
|
26.4 |
% |
|
228,608 |
|
|
297,773 |
|
|
69,166 |
|
|
30.3 |
% |
|||||
Income taxes |
|
22,077 |
|
|
32,552 |
|
|
34,382 |
|
|
31,556 |
|
|
30,437 |
|
|
41,304 |
|
|
8,752 |
|
|
26.9 |
% |
|
54,628 |
|
|
71,740 |
|
|
17,112 |
|
|
31.3 |
% |
||||||
|
Net income |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
26,651 |
|
|
26.3 |
% |
$ |
173,979 |
|
$ |
226,033 |
|
$ |
52,054 |
|
|
29.9 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Term Life |
$ |
82,892 |
|
$ |
94,903 |
|
$ |
105,316 |
|
$ |
89,440 |
|
$ |
88,236 |
|
$ |
116,778 |
|
$ |
21,875 |
|
|
23.0 |
% |
$ |
177,795 |
|
$ |
205,014 |
|
$ |
27,219 |
|
|
15.3 |
% |
||||||
Investment & Savings Products |
|
47,700 |
|
|
46,859 |
|
|
51,372 |
|
|
56,713 |
|
|
63,363 |
|
|
71,154 |
|
|
24,295 |
|
|
51.8 |
% |
|
94,559 |
|
|
134,517 |
|
|
39,958 |
|
|
42.3 |
% |
||||||
Corporate & Other Distributed Products |
|
(36,046 |
) |
|
(7,700 |
) |
|
(10,206 |
) |
|
(14,514 |
) |
|
(23,290 |
) |
|
(18,467 |
) |
|
(10,767 |
) |
|
-139.8 |
% |
|
(43,746 |
) |
|
(41,757 |
) |
|
1,989 |
|
|
4.5 |
% |
||||||
|
Income before income taxes |
$ |
94,546 |
|
$ |
134,062 |
|
$ |
146,482 |
|
$ |
131,640 |
|
$ |
128,308 |
|
$ |
169,465 |
|
$ |
35,403 |
|
|
26.4 |
% |
$ |
228,608 |
|
$ |
297,773 |
|
$ |
69,166 |
|
|
30.3 |
% |
(1) |
Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities. |
(2) |
Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees. |
(3) |
Account-based - revenues relating to the fee generating client accounts we administer. |
6 of 16
Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$ Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$ Change |
|
% Change |
|
||||||||||||||||||
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Term Life direct premiums |
$ |
696,564 |
|
$ |
711,188 |
|
$ |
730,273 |
|
$ |
745,559 |
|
$ |
756,514 |
|
$ |
774,500 |
|
$ |
63,312 |
|
|
8.9 |
% |
$ |
1,407,751 |
|
$ |
1,531,014 |
|
$ |
123,262 |
|
|
8.8 |
% |
|||||
|
Less: Premiums ceded to IPO Coinsurers |
|
260,076 |
|
|
257,529 |
|
|
254,938 |
|
|
253,039 |
|
|
249,944 |
|
|
246,874 |
|
|
(10,655 |
) |
|
-4.1 |
% |
|
517,605 |
|
|
496,818 |
|
|
(20,786 |
) |
|
-4.0 |
% |
|||||
|
Term Life adjusted direct premiums |
$ |
436,488 |
|
$ |
453,659 |
|
$ |
475,335 |
|
$ |
492,520 |
|
$ |
506,570 |
|
$ |
527,626 |
|
$ |
73,967 |
|
|
16.3 |
% |
$ |
890,147 |
|
$ |
1,034,196 |
|
$ |
144,049 |
|
|
16.2 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Term Life ceded premiums |
$ |
(385,232 |
) |
$ |
(400,919 |
) |
$ |
(392,004 |
) |
$ |
(395,767 |
) |
$ |
(394,550 |
) |
$ |
(412,028 |
) |
$ |
(11,109 |
) |
|
-2.8 |
% |
$ |
(786,151 |
) |
$ |
(806,578 |
) |
$ |
(20,427 |
) |
|
-2.6 |
% |
|||||
|
Less: Premiums ceded to IPO Coinsurers |
|
(260,076 |
) |
|
(257,529 |
) |
|
(254,938 |
) |
|
(253,039 |
) |
|
(249,944 |
) |
|
(246,874 |
) |
|
10,655 |
|
|
4.1 |
% |
|
(517,605 |
) |
|
(496,818 |
) |
|
20,786 |
|
|
4.0 |
% |
|||||
|
Term Life other ceded premiums |
$ |
(125,156 |
) |
$ |
(143,390 |
) |
$ |
(137,066 |
) |
$ |
(142,728 |
) |
$ |
(144,606 |
) |
$ |
(165,154 |
) |
$ |
(21,764 |
) |
|
-15.2 |
% |
$ |
(268,546 |
) |
$ |
(309,760 |
) |
$ |
(41,214 |
) |
|
-15.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Investment Income to Adjusted Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net Investment Income |
$ |
15,420 |
|
$ |
22,710 |
|
$ |
22,953 |
|
$ |
22,731 |
|
$ |
20,052 |
|
$ |
20,535 |
|
$ |
(2,175 |
) |
|
-9.6 |
% |
$ |
38,130 |
|
$ |
40,588 |
|
$ |
2,458 |
|
|
6.4 |
% |
|||||
|
Less: MTM investment adjustments |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
nm |
|
nm |
|
|
(4,120 |
) |
|
(963 |
) |
nm |
|
nm |
|
|||||||||
|
Adjusted net investment income |
$ |
21,799 |
|
$ |
20,451 |
|
$ |
21,788 |
|
$ |
21,771 |
|
$ |
20,845 |
|
$ |
20,705 |
|
$ |
254 |
|
|
1.2 |
% |
$ |
42,250 |
|
$ |
41,550 |
|
$ |
(700 |
) |
|
-1.7 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Other Operating Expenses to Adjusted other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Other operating expenses |
$ |
65,914 |
|
$ |
56,152 |
|
$ |
59,348 |
|
$ |
63,781 |
|
$ |
72,964 |
|
$ |
66,730 |
|
$ |
10,578 |
|
|
18.8 |
% |
$ |
122,066 |
|
$ |
139,693 |
|
$ |
17,627 |
|
|
14.4 |
% |
|||||
|
Less: eTeleQuote transaction-related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,109 |
|
nm |
|
nm |
|
|
— |
|
|
2,109 |
|
nm |
|
nm |
|
|||||||||
|
Adjusted other operating expenses |
$ |
65,914 |
|
$ |
56,152 |
|
$ |
59,348 |
|
$ |
63,781 |
|
$ |
72,964 |
|
$ |
64,620 |
|
$ |
8,468 |
|
|
15.1 |
% |
$ |
122,066 |
|
$ |
137,584 |
|
$ |
15,518 |
|
|
12.7 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Total Revenues to Adjusted Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total revenues |
$ |
524,936 |
|
$ |
525,815 |
|
$ |
568,460 |
|
$ |
598,330 |
|
$ |
637,711 |
|
$ |
654,687 |
|
$ |
128,872 |
|
|
24.5 |
% |
$ |
1,050,751 |
|
$ |
1,292,399 |
|
$ |
241,647 |
|
|
23.0 |
% |
|||||
|
Less: Realized investment gains/(losses) |
|
(10,030 |
) |
|
1,742 |
|
|
642 |
|
|
2,650 |
|
|
1,766 |
|
|
701 |
|
nm |
|
nm |
|
|
(8,288 |
) |
|
2,466 |
|
nm |
|
nm |
|
|||||||||
|
Less: MTM investment adjustments |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
nm |
|
nm |
|
|
(4,120 |
) |
|
(963 |
) |
nm |
|
nm |
|
|||||||||
|
Adjusted operating revenues |
$ |
541,346 |
|
$ |
521,813 |
|
$ |
566,653 |
|
$ |
594,720 |
|
$ |
636,738 |
|
$ |
654,156 |
|
$ |
132,343 |
|
|
25.4 |
% |
$ |
1,063,159 |
|
$ |
1,290,895 |
|
$ |
227,736 |
|
|
21.4 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Income before income taxes |
$ |
94,546 |
|
$ |
134,062 |
|
$ |
146,482 |
|
$ |
131,640 |
|
$ |
128,308 |
|
$ |
169,465 |
|
$ |
35,403 |
|
|
26.4 |
% |
$ |
228,608 |
|
$ |
297,773 |
|
$ |
69,166 |
|
|
30.3 |
% |
|||||
|
Less: Realized investment gains/(losses) |
|
(10,030 |
) |
|
1,742 |
|
|
642 |
|
|
2,650 |
|
|
1,766 |
|
|
701 |
|
nm |
|
nm |
|
|
(8,288 |
) |
|
2,466 |
|
nm |
|
nm |
|
|||||||||
|
Less: MTM investment adjustments |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
nm |
|
nm |
|
|
(4,120 |
) |
|
(963 |
) |
nm |
|
nm |
|
|||||||||
|
Less: eTeleQuote transaction-related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,109 |
) |
nm |
|
nm |
|
|
— |
|
|
(2,109 |
) |
nm |
|
nm |
|
|||||||||
|
Adjusted operating income before income taxes |
$ |
110,955 |
|
$ |
130,060 |
|
$ |
144,676 |
|
$ |
128,030 |
|
$ |
127,335 |
|
$ |
171,044 |
|
$ |
40,983 |
|
|
31.5 |
% |
$ |
241,015 |
|
$ |
298,379 |
|
$ |
57,363 |
|
|
23.8 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Income to Adjusted Net Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
26,651 |
|
|
26.3 |
% |
$ |
173,979 |
|
$ |
226,033 |
|
$ |
52,054 |
|
|
29.9 |
% |
|||||
|
Less: Income before income taxes reconciling items |
|
(16,409 |
) |
|
4,002 |
|
|
1,807 |
|
|
3,610 |
|
|
973 |
|
|
(1,578 |
) |
nm |
|
nm |
|
|
(12,408 |
) |
|
(605 |
) |
nm |
|
nm |
|
|||||||||
|
Less: Tax impact of income before income taxes reconciling items |
|
3,832 |
|
|
(972 |
) |
|
(424 |
) |
|
(865 |
) |
|
(231 |
) |
|
385 |
|
nm |
|
nm |
|
|
2,860 |
|
|
154 |
|
nm |
|
nm |
|
|||||||||
|
Adjusted net operating income |
$ |
85,047 |
|
$ |
98,480 |
|
$ |
110,718 |
|
$ |
97,339 |
|
$ |
97,129 |
|
$ |
129,355 |
|
$ |
30,875 |
|
|
31.4 |
% |
$ |
183,527 |
|
$ |
226,485 |
|
$ |
42,958 |
|
|
23.4 |
% |
7 of 16
Segment Operating Results |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$ Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$ Change |
|
% Change |
|
||||||||||||||||||
Term Life Insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Direct Premiums |
$ |
696,564 |
|
$ |
711,188 |
|
$ |
730,273 |
|
$ |
745,559 |
|
$ |
756,514 |
|
$ |
774,500 |
|
$ |
63,312 |
|
|
8.9 |
% |
$ |
1,407,751 |
|
$ |
1,531,014 |
|
$ |
123,262 |
|
|
8.8 |
% |
|||||
|
Premiums ceded to IPO coinsurers (1) |
|
(260,076 |
) |
|
(257,529 |
) |
|
(254,938 |
) |
|
(253,039 |
) |
|
(249,944 |
) |
|
(246,874 |
) |
|
10,655 |
|
|
4.1 |
% |
|
(517,605 |
) |
|
(496,818 |
) |
|
20,786 |
|
|
4.0 |
% |
|||||
|
Adjusted direct premiums (2) |
|
436,488 |
|
|
453,659 |
|
|
475,335 |
|
|
492,520 |
|
|
506,570 |
|
|
527,626 |
|
|
73,967 |
|
|
16.3 |
% |
|
890,147 |
|
|
1,034,196 |
|
|
144,049 |
|
|
16.2 |
% |
|||||
|
Other ceded premiums (3) |
|
(125,156 |
) |
|
(143,390 |
) |
|
(137,066 |
) |
|
(142,728 |
) |
|
(144,606 |
) |
|
(165,154 |
) |
|
(21,764 |
) |
|
-15.2 |
% |
|
(268,546 |
) |
|
(309,760 |
) |
|
(41,214 |
) |
|
-15.3 |
% |
|||||
|
Net premiums |
|
311,332 |
|
|
310,269 |
|
|
338,269 |
|
|
349,792 |
|
|
361,964 |
|
|
362,472 |
|
|
52,203 |
|
|
16.8 |
% |
|
621,601 |
|
|
724,436 |
|
|
102,835 |
|
|
16.5 |
% |
|||||
|
Allocated net investment income |
|
6,246 |
|
|
6,538 |
|
|
6,813 |
|
|
7,432 |
|
|
8,253 |
|
|
8,751 |
|
|
2,213 |
|
|
33.8 |
% |
|
12,785 |
|
|
17,004 |
|
|
4,220 |
|
|
33.0 |
% |
|||||
|
Other, net |
|
10,168 |
|
|
11,426 |
|
|
12,717 |
|
|
11,768 |
|
|
11,810 |
|
|
12,315 |
|
|
889 |
|
|
7.8 |
% |
|
21,594 |
|
|
24,125 |
|
|
2,531 |
|
|
11.7 |
% |
|||||
|
Revenues |
|
327,747 |
|
|
328,233 |
|
|
357,799 |
|
|
368,992 |
|
|
382,028 |
|
|
383,537 |
|
|
55,305 |
|
|
16.8 |
% |
|
655,979 |
|
|
765,565 |
|
|
109,586 |
|
|
16.7 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Benefits and claims |
|
128,563 |
|
|
135,409 |
|
|
156,209 |
|
|
173,767 |
|
|
178,963 |
|
|
162,488 |
|
|
27,079 |
|
|
20.0 |
% |
|
263,973 |
|
|
341,452 |
|
|
77,479 |
|
|
29.4 |
% |
|||||
|
Amortization of DAC |
|
65,840 |
|
|
52,730 |
|
|
45,529 |
|
|
52,109 |
|
|
62,584 |
|
|
52,235 |
|
|
(495 |
) |
|
-0.9 |
% |
|
118,571 |
|
|
114,820 |
|
|
(3,751 |
) |
|
-3.2 |
% |
|||||
|
Insurance commissions |
|
3,286 |
|
|
2,884 |
|
|
5,946 |
|
|
5,477 |
|
|
4,869 |
|
|
4,785 |
|
|
1,901 |
|
|
65.9 |
% |
|
6,169 |
|
|
9,654 |
|
|
3,485 |
|
|
56.5 |
% |
|||||
|
Insurance expenses |
|
47,165 |
|
|
42,306 |
|
|
44,800 |
|
|
48,199 |
|
|
47,375 |
|
|
47,252 |
|
|
4,945 |
|
|
11.7 |
% |
|
89,472 |
|
|
94,627 |
|
|
5,155 |
|
|
5.8 |
% |
|||||
|
Benefits and expenses |
|
244,855 |
|
|
233,330 |
|
|
252,483 |
|
|
279,551 |
|
|
293,792 |
|
|
266,760 |
|
|
33,430 |
|
|
14.3 |
% |
|
478,185 |
|
|
560,552 |
|
|
82,367 |
|
|
17.2 |
% |
|||||
|
Income before income taxes |
$ |
82,892 |
|
$ |
94,903 |
|
$ |
105,316 |
|
$ |
89,440 |
|
$ |
88,236 |
|
$ |
116,778 |
|
$ |
21,875 |
|
|
23.0 |
% |
$ |
177,795 |
|
$ |
205,014 |
|
$ |
27,219 |
|
|
15.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment & Savings Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Commissions and fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales-based |
$ |
80,891 |
|
$ |
62,812 |
|
$ |
65,600 |
|
$ |
75,347 |
|
$ |
98,112 |
|
$ |
104,716 |
|
$ |
41,903 |
|
|
66.7 |
% |
$ |
143,704 |
|
$ |
202,828 |
|
$ |
59,124 |
|
|
41.1 |
% |
|||||
|
Asset-based |
|
81,395 |
|
|
78,146 |
|
|
86,695 |
|
|
93,669 |
|
|
101,241 |
|
|
108,490 |
|
|
30,345 |
|
|
38.8 |
% |
|
159,540 |
|
|
209,731 |
|
|
50,191 |
|
|
31.5 |
% |
|||||
|
Account-based |
|
20,204 |
|
|
20,478 |
|
|
21,008 |
|
|
21,351 |
|
|
21,120 |
|
|
21,848 |
|
|
1,371 |
|
|
6.7 |
% |
|
40,682 |
|
|
42,968 |
|
|
2,287 |
|
|
5.6 |
% |
|||||
|
Other, net |
|
2,542 |
|
|
2,745 |
|
|
3,034 |
|
|
2,949 |
|
|
2,949 |
|
|
2,958 |
|
|
213 |
|
|
7.8 |
% |
|
5,287 |
|
|
5,907 |
|
|
620 |
|
|
11.7 |
% |
|||||
|
Revenues |
|
185,033 |
|
|
164,180 |
|
|
176,338 |
|
|
193,316 |
|
|
223,422 |
|
|
238,012 |
|
|
73,832 |
|
|
45.0 |
% |
|
349,213 |
|
|
461,434 |
|
|
112,221 |
|
|
32.1 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of DAC |
|
4,305 |
|
|
100 |
|
|
1,667 |
|
|
982 |
|
|
3,275 |
|
|
1,786 |
|
|
1,686 |
|
nm |
|
|
4,405 |
|
|
5,061 |
|
|
656 |
|
|
14.9 |
% |
||||||
|
Insurance commissions |
|
3,201 |
|
|
3,106 |
|
|
3,377 |
|
|
3,500 |
|
|
3,572 |
|
|
3,747 |
|
|
641 |
|
|
20.6 |
% |
|
6,307 |
|
|
7,319 |
|
|
1,012 |
|
|
16.0 |
% |
|||||
|
Sales commissions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales-based |
|
56,561 |
|
|
44,834 |
|
|
46,821 |
|
|
52,931 |
|
|
68,594 |
|
|
73,629 |
|
|
28,795 |
|
|
64.2 |
% |
|
101,395 |
|
|
142,224 |
|
|
40,828 |
|
|
40.3 |
% |
|||||
|
Asset-based |
|
36,323 |
|
|
35,673 |
|
|
39,349 |
|
|
43,227 |
|
|
46,866 |
|
|
50,488 |
|
|
14,816 |
|
|
41.5 |
% |
|
71,996 |
|
|
97,355 |
|
|
25,359 |
|
|
35.2 |
% |
|||||
|
Other operating expenses |
|
36,942 |
|
|
33,608 |
|
|
33,751 |
|
|
35,963 |
|
|
37,752 |
|
|
37,207 |
|
|
3,599 |
|
|
10.7 |
% |
|
70,551 |
|
|
74,960 |
|
|
4,409 |
|
|
6.2 |
% |
|||||
|
Benefits and expenses |
|
137,332 |
|
|
117,321 |
|
|
124,966 |
|
|
136,603 |
|
|
160,060 |
|
|
166,858 |
|
|
49,537 |
|
|
42.2 |
% |
|
254,654 |
|
|
326,917 |
|
|
72,264 |
|
|
28.4 |
% |
|||||
|
Income before income taxes |
$ |
47,700 |
|
$ |
46,859 |
|
$ |
51,372 |
|
$ |
56,713 |
|
$ |
63,363 |
|
$ |
71,154 |
|
$ |
24,295 |
|
|
51.8 |
% |
$ |
94,559 |
|
$ |
134,517 |
|
$ |
39,958 |
|
|
42.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate & Other Distributed Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Direct premiums |
$ |
6,074 |
|
$ |
5,900 |
|
$ |
6,333 |
|
$ |
5,259 |
|
$ |
5,713 |
|
$ |
5,800 |
|
$ |
(101 |
) |
|
-1.7 |
% |
$ |
11,974 |
|
$ |
11,513 |
|
$ |
(461 |
) |
|
-3.9 |
% |
|||||
|
Ceded premiums |
|
(1,593 |
) |
|
(1,631 |
) |
|
(1,712 |
) |
|
(1,909 |
) |
|
(1,423 |
) |
|
(1,822 |
) |
|
(191 |
) |
|
-11.7 |
% |
|
(3,224 |
) |
|
(3,245 |
) |
|
(21 |
) |
|
-0.7 |
% |
|||||
|
Net premiums |
|
4,480 |
|
|
4,270 |
|
|
4,621 |
|
|
3,350 |
|
|
4,290 |
|
|
3,978 |
|
|
(292 |
) |
|
-6.8 |
% |
|
8,750 |
|
|
8,268 |
|
|
(482 |
) |
|
-5.5 |
% |
|||||
|
Allocated net investment income |
|
15,553 |
|
|
13,913 |
|
|
14,975 |
|
|
14,339 |
|
|
12,592 |
|
|
11,954 |
|
|
(1,959 |
) |
|
-14.1 |
% |
|
29,466 |
|
|
24,546 |
|
|
(4,920 |
) |
|
-16.7 |
% |
|||||
|
Commissions and fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Prepaid Legal Services |
|
3,829 |
|
|
4,557 |
|
|
4,942 |
|
|
5,104 |
|
|
4,783 |
|
|
5,182 |
|
|
625 |
|
|
13.7 |
% |
|
8,386 |
|
|
9,964 |
|
|
1,578 |
|
|
18.8 |
% |
|||||
|
Auto and Homeowners Insurance |
|
1,672 |
|
|
2,263 |
|
|
1,985 |
|
|
2,194 |
|
|
1,787 |
|
|
2,101 |
|
|
(161 |
) |
|
-7.1 |
% |
|
3,935 |
|
|
3,888 |
|
|
(47 |
) |
|
-1.2 |
% |
|||||
|
Mortgage loans |
|
264 |
|
|
1,301 |
|
|
3,011 |
|
|
4,146 |
|
|
4,960 |
|
|
6,061 |
|
|
4,760 |
|
nm |
|
|
1,565 |
|
|
11,021 |
|
|
9,455 |
|
nm |
|
|||||||
|
Other sales commissions |
|
1,813 |
|
|
2,231 |
|
|
2,061 |
|
|
2,301 |
|
|
2,041 |
|
|
2,291 |
|
|
59 |
|
|
2.6 |
% |
|
4,045 |
|
|
4,332 |
|
|
287 |
|
|
7.1 |
% |
|||||
|
Other, net |
|
954 |
|
|
865 |
|
|
922 |
|
|
977 |
|
|
836 |
|
|
1,040 |
|
|
175 |
|
|
20.2 |
% |
|
1,820 |
|
|
1,876 |
|
|
56 |
|
|
3.1 |
% |
|||||
|
Adjusted operating revenues |
|
28,566 |
|
|
29,400 |
|
|
32,516 |
|
|
32,412 |
|
|
31,288 |
|
|
32,607 |
|
|
3,207 |
|
|
10.9 |
% |
|
57,967 |
|
|
63,895 |
|
|
5,928 |
|
|
10.2 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Benefits and claims |
|
6,249 |
|
|
4,236 |
|
|
3,957 |
|
|
7,178 |
|
|
4,826 |
|
|
5,859 |
|
|
1,623 |
|
|
38.3 |
% |
|
10,486 |
|
|
10,685 |
|
|
199 |
|
|
1.9 |
% |
|||||
|
Amortization of DAC |
|
166 |
|
|
346 |
|
|
295 |
|
|
251 |
|
|
246 |
|
|
264 |
|
|
(82 |
) |
|
-23.8 |
% |
|
512 |
|
|
510 |
|
|
(3 |
) |
|
-0.5 |
% |
|||||
|
Insurance commissions |
|
357 |
|
|
343 |
|
|
371 |
|
|
286 |
|
|
299 |
|
|
306 |
|
|
(37 |
) |
|
-10.8 |
% |
|
701 |
|
|
605 |
|
|
(96 |
) |
|
-13.6 |
% |
|||||
|
Insurance expenses |
|
1,544 |
|
|
1,447 |
|
|
1,309 |
|
|
1,347 |
|
|
1,391 |
|
|
1,327 |
|
|
(120 |
) |
|
-8.3 |
% |
|
2,991 |
|
|
2,719 |
|
|
(272 |
) |
|
-9.1 |
% |
|||||
|
Sales commissions |
|
3,723 |
|
|
4,985 |
|
|
5,779 |
|
|
6,430 |
|
|
6,434 |
|
|
7,185 |
|
|
2,200 |
|
|
44.1 |
% |
|
8,708 |
|
|
13,619 |
|
|
4,911 |
|
|
56.4 |
% |
|||||
|
Interest expense |
|
7,192 |
|
|
7,200 |
|
|
7,221 |
|
|
7,225 |
|
|
7,145 |
|
|
7,141 |
|
|
(60 |
) |
|
-0.8 |
% |
|
14,392 |
|
|
14,285 |
|
|
(107 |
) |
|
-0.7 |
% |
|||||
|
Other operating expenses |
|
28,972 |
|
|
22,544 |
|
|
25,597 |
|
|
27,818 |
|
|
35,211 |
|
|
27,413 |
|
|
4,870 |
|
|
21.6 |
% |
|
51,516 |
|
|
62,624 |
|
|
11,109 |
|
|
21.6 |
% |
|||||
|
Benefits and expenses |
|
48,203 |
|
|
41,102 |
|
|
44,529 |
|
|
50,535 |
|
|
55,551 |
|
|
49,495 |
|
|
8,393 |
|
|
20.4 |
% |
|
89,305 |
|
|
105,047 |
|
|
15,742 |
|
|
17.6 |
% |
|||||
|
Adjusted operating income before income taxes |
$ |
(19,637 |
) |
$ |
(11,702 |
) |
$ |
(12,013 |
) |
$ |
(18,124 |
) |
$ |
(24,263 |
) |
$ |
(16,888 |
) |
$ |
(5,186 |
) |
|
-44.3 |
% |
$ |
(31,339 |
) |
$ |
(41,152 |
) |
$ |
(9,813 |
) |
|
-31.3 |
% |
(1) |
Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements. |
(2) |
Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers. |
(3) |
Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers. |
8 of 16
Term Life Insurance - Financial Results and Analysis |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$ Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$ Change |
|
% Change |
|
||||||||||||||||||
Term Life Insurance Income Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Direct Premiums |
$ |
696,564 |
|
$ |
711,188 |
|
$ |
730,273 |
|
$ |
745,559 |
|
$ |
756,514 |
|
$ |
774,500 |
|
$ |
63,312 |
|
|
8.9 |
% |
$ |
1,407,751 |
|
$ |
1,531,014 |
|
$ |
123,262 |
|
|
8.8 |
% |
|||||
|
Premiums ceded to IPO coinsurers (1) |
|
(260,076 |
) |
|
(257,529 |
) |
|
(254,938 |
) |
|
(253,039 |
) |
|
(249,944 |
) |
|
(246,874 |
) |
|
10,655 |
|
|
4.1 |
% |
|
(517,605 |
) |
|
(496,818 |
) |
|
20,786 |
|
|
4.0 |
% |
|||||
|
Adjusted direct premiums (2) |
|
436,488 |
|
|
453,659 |
|
|
475,335 |
|
|
492,520 |
|
|
506,570 |
|
|
527,626 |
|
|
73,967 |
|
|
16.3 |
% |
|
890,147 |
|
|
1,034,196 |
|
|
144,049 |
|
|
16.2 |
% |
|||||
|
Other ceded premiums (3) |
|
(125,156 |
) |
|
(143,390 |
) |
|
(137,066 |
) |
|
(142,728 |
) |
|
(144,606 |
) |
|
(165,154 |
) |
|
(21,764 |
) |
|
-15.2 |
% |
|
(268,546 |
) |
|
(309,760 |
) |
|
(41,214 |
) |
|
-15.3 |
% |
|||||
|
Net premiums |
|
311,332 |
|
|
310,269 |
|
|
338,269 |
|
|
349,792 |
|
|
361,964 |
|
|
362,472 |
|
|
52,203 |
|
|
16.8 |
% |
|
621,601 |
|
|
724,436 |
|
|
102,835 |
|
|
16.5 |
% |
|||||
|
Allocated net investment income |
|
6,246 |
|
|
6,538 |
|
|
6,813 |
|
|
7,432 |
|
|
8,253 |
|
|
8,751 |
|
|
2,213 |
|
|
33.8 |
% |
|
12,785 |
|
|
17,004 |
|
|
4,220 |
|
|
33.0 |
% |
|||||
|
Other, net |
|
10,168 |
|
|
11,426 |
|
|
12,717 |
|
|
11,768 |
|
|
11,810 |
|
|
12,315 |
|
|
889 |
|
|
7.8 |
% |
|
21,594 |
|
|
24,125 |
|
|
2,531 |
|
|
11.7 |
% |
|||||
|
Revenues |
|
327,747 |
|
|
328,233 |
|
|
357,799 |
|
|
368,992 |
|
|
382,028 |
|
|
383,537 |
|
|
55,305 |
|
|
16.8 |
% |
|
655,979 |
|
|
765,565 |
|
|
109,586 |
|
|
16.7 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Benefits and claims |
|
128,563 |
|
|
135,409 |
|
|
156,209 |
|
|
173,767 |
|
|
178,963 |
|
|
162,488 |
|
|
27,079 |
|
|
20.0 |
% |
|
263,973 |
|
|
341,452 |
|
|
77,479 |
|
|
29.4 |
% |
|||||
|
Amortization of DAC |
|
65,840 |
|
|
52,730 |
|
|
45,529 |
|
|
52,109 |
|
|
62,584 |
|
|
52,235 |
|
|
(495 |
) |
|
-0.9 |
% |
|
118,571 |
|
|
114,820 |
|
|
(3,751 |
) |
|
-3.2 |
% |
|||||
|
Insurance commissions |
|
3,286 |
|
|
2,884 |
|
|
5,946 |
|
|
5,477 |
|
|
4,869 |
|
|
4,785 |
|
|
1,901 |
|
|
65.9 |
% |
|
6,169 |
|
|
9,654 |
|
|
3,485 |
|
|
56.5 |
% |
|||||
|
Insurance expenses |
|
47,165 |
|
|
42,306 |
|
|
44,800 |
|
|
48,199 |
|
|
47,375 |
|
|
47,252 |
|
|
4,945 |
|
|
11.7 |
% |
|
89,472 |
|
|
94,627 |
|
|
5,155 |
|
|
5.8 |
% |
|||||
|
Benefits and expenses |
|
244,855 |
|
|
233,330 |
|
|
252,483 |
|
|
279,551 |
|
|
293,792 |
|
|
266,760 |
|
|
33,430 |
|
|
14.3 |
% |
|
478,185 |
|
|
560,552 |
|
|
82,367 |
|
|
17.2 |
% |
|||||
|
Income before income taxes |
$ |
82,892 |
|
$ |
94,903 |
|
$ |
105,316 |
|
$ |
89,440 |
|
$ |
88,236 |
|
$ |
116,778 |
|
$ |
21,875 |
|
|
23.0 |
% |
$ |
177,795 |
|
$ |
205,014 |
|
$ |
27,219 |
|
|
15.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Term Life Insurance - Financial Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Post-IPO direct premiums (4) |
$ |
336,921 |
|
$ |
352,353 |
|
$ |
372,852 |
|
$ |
388,303 |
|
$ |
401,106 |
|
$ |
420,865 |
|
$ |
68,512 |
|
|
19.4 |
% |
$ |
689,273 |
|
$ |
821,971 |
|
$ |
132,698 |
|
|
19.3 |
% |
|||||
|
Pre-IPO direct premiums (5) |
|
359,643 |
|
|
358,835 |
|
|
357,421 |
|
|
357,256 |
|
|
355,408 |
|
|
353,635 |
|
|
(5,200 |
) |
|
-1.4 |
% |
|
718,478 |
|
|
709,043 |
|
|
(9,435 |
) |
|
-1.3 |
% |
|||||
|
Total direct premiums |
$ |
696,564 |
|
$ |
711,188 |
|
$ |
730,273 |
|
$ |
745,559 |
|
$ |
756,514 |
|
$ |
774,500 |
|
$ |
63,312 |
|
|
8.9 |
% |
$ |
1,407,751 |
|
$ |
1,531,014 |
|
$ |
123,262 |
|
|
8.8 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums ceded to IPO coinsurers |
$ |
260,076 |
|
$ |
257,529 |
|
$ |
254,938 |
|
$ |
253,039 |
|
$ |
249,944 |
|
$ |
246,874 |
|
$ |
(10,655 |
) |
|
-4.1 |
% |
$ |
517,605 |
|
$ |
496,818 |
|
$ |
(20,786 |
) |
|
-4.0 |
% |
|||||
|
% of Pre-IPO direct premiums |
|
72.3 |
% |
|
71.8 |
% |
|
71.3 |
% |
|
70.8 |
% |
|
70.3 |
% |
|
69.8 |
% |
nm |
|
nm |
|
|
72.0 |
% |
|
70.1 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims, net (6) |
$ |
253,719 |
|
$ |
278,799 |
|
$ |
293,275 |
|
$ |
316,495 |
|
$ |
323,569 |
|
$ |
327,642 |
|
$ |
48,843 |
|
|
17.5 |
% |
$ |
532,519 |
|
$ |
651,211 |
|
$ |
118,693 |
|
|
22.3 |
% |
|||||
|
% of adjusted direct premiums |
|
58.1 |
% |
|
61.5 |
% |
|
61.7 |
% |
|
64.3 |
% |
|
63.9 |
% |
|
62.1 |
% |
nm |
|
nm |
|
|
59.8 |
% |
|
63.0 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAC amortization & insurance commissions |
$ |
69,126 |
|
$ |
55,614 |
|
$ |
51,474 |
|
$ |
57,585 |
|
$ |
67,454 |
|
$ |
57,020 |
|
$ |
1,406 |
|
|
2.5 |
% |
$ |
124,740 |
|
$ |
124,474 |
|
$ |
(266 |
) |
|
-0.2 |
% |
|||||
|
% of adjusted direct premiums |
|
15.8 |
% |
|
12.3 |
% |
|
10.8 |
% |
|
11.7 |
% |
|
13.3 |
% |
|
10.8 |
% |
nm |
|
nm |
|
|
14.0 |
% |
|
12.0 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance expenses, net (7) |
$ |
36,997 |
|
$ |
30,881 |
|
$ |
32,083 |
|
$ |
36,431 |
|
$ |
35,565 |
|
$ |
34,937 |
|
$ |
4,056 |
|
|
13.1 |
% |
$ |
67,878 |
|
$ |
70,502 |
|
$ |
2,624 |
|
|
3.9 |
% |
|||||
|
% of adjusted direct premiums |
|
8.5 |
% |
|
6.8 |
% |
|
6.7 |
% |
|
7.4 |
% |
|
7.0 |
% |
|
6.6 |
% |
nm |
|
nm |
|
|
7.6 |
% |
|
6.8 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Term Life income before income taxes |
$ |
82,892 |
|
$ |
94,903 |
|
$ |
105,316 |
|
$ |
89,440 |
|
$ |
88,236 |
|
$ |
116,778 |
|
$ |
21,875 |
|
|
23.0 |
% |
$ |
177,795 |
|
$ |
205,014 |
|
$ |
27,219 |
|
|
15.3 |
% |
|||||
|
Term Life operating margin (8) |
|
19.0 |
% |
|
20.9 |
% |
|
22.2 |
% |
|
18.2 |
% |
|
17.4 |
% |
|
22.1 |
% |
nm |
|
nm |
|
|
20.0 |
% |
|
19.8 |
% |
nm |
|
nm |
|
(1) |
Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements. |
(2) |
Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers. |
(3) |
Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers. |
(4) |
Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions. |
(5) |
Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions. |
(6) |
Benefits and claims, net - benefits & claims net of other ceded premiums which are largely YRT. |
(7) |
Insurance expenses, net - insurance expenses net of other, net revenues. |
(8) |
Term Life operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums. |
9 of 16
Term Life Insurance - Key Statistics |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
|
(Dollars in thousands, except as noted) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$/# Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$/# Change |
|
% Change |
|
|||||||||||||||||
|
Key Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life-insurance licensed sales force, beginning of period |
|
130,522 |
|
|
130,095 |
|
|
134,157 |
|
|
136,306 |
|
|
134,907 |
|
|
132,030 |
|
|
1,935 |
|
|
1.5 |
% |
|
130,522 |
|
|
134,907 |
|
|
4,385 |
|
|
3.4 |
% |
|||||
|
|
New life-licensed representatives |
|
10,599 |
|
|
12,250 |
|
|
13,138 |
|
|
12,119 |
|
|
10,833 |
|
|
10,112 |
|
|
(2,138 |
) |
|
-17.5 |
% |
|
22,849 |
|
|
20,945 |
|
|
(1,904 |
) |
|
-8.3 |
% |
||||
|
|
Non-renewal and terminated representatives |
|
(11,026 |
) |
|
(8,188 |
) |
|
(10,989 |
) |
|
(13,518 |
) |
|
(13,710 |
) |
|
(10,101 |
) |
|
(1,913 |
) |
|
-23.4 |
% |
|
(19,214 |
) |
|
(23,811 |
) |
|
(4,597 |
) |
|
-23.9 |
% |
||||
|
Life-insurance licensed sales force, end of period |
|
130,095 |
|
|
134,157 |
|
|
136,306 |
|
|
134,907 |
|
|
132,030 |
|
|
132,041 |
|
|
(2,116 |
) |
|
-1.6 |
% |
|
134,157 |
|
|
132,041 |
|
|
(2,116 |
) |
|
-1.6 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated annualized issued term life premium ($mills) (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Premium from new policies |
$ |
61.5 |
|
$ |
77.7 |
|
$ |
86.0 |
|
$ |
78.4 |
|
$ |
74.5 |
|
$ |
82.6 |
|
$ |
4.9 |
|
|
6.4 |
% |
$ |
139.2 |
|
$ |
157.1 |
|
$ |
17.9 |
|
|
12.9 |
% |
||||
|
|
Additions and increases in premium |
|
15.0 |
|
|
17.8 |
|
|
17.9 |
|
|
18.1 |
|
|
18.0 |
|
|
20.3 |
|
|
2.5 |
|
|
14.1 |
% |
|
32.8 |
|
|
38.4 |
|
|
5.5 |
|
|
16.8 |
% |
||||
|
|
|
|
Total estimated annualized issued term life premium |
$ |
76.5 |
|
$ |
95.5 |
|
$ |
103.9 |
|
$ |
96.5 |
|
$ |
92.5 |
|
$ |
103.0 |
|
$ |
7.4 |
|
|
7.8 |
% |
$ |
172.0 |
|
$ |
195.5 |
|
$ |
23.4 |
|
|
13.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued term life policies |
|
71,318 |
|
|
94,044 |
|
|
100,199 |
|
|
87,307 |
|
|
82,667 |
|
|
90,071 |
|
|
(3,973 |
) |
|
-4.2 |
% |
|
165,362 |
|
|
172,738 |
|
|
7,376 |
|
|
4.5 |
% |
|||||
|
Estimated average annualized issued term life premium per policy (1)(2) |
$ |
863 |
|
$ |
826 |
|
$ |
858 |
|
$ |
898 |
|
$ |
901 |
|
$ |
917 |
|
$ |
91 |
|
|
11.0 |
% |
$ |
842 |
|
$ |
910 |
|
$ |
68 |
|
|
8.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term life face amount in-force, beginning of period ($mills) |
$ |
808,262 |
|
$ |
804,512 |
|
$ |
821,998 |
|
$ |
840,227 |
|
$ |
858,818 |
|
$ |
869,643 |
|
$ |
65,131 |
|
|
8.1 |
% |
$ |
808,262 |
|
$ |
858,818 |
|
$ |
50,556 |
|
|
6.3 |
% |
|||||
|
|
Issued term life face amount (3) |
|
23,221 |
|
|
27,754 |
|
|
30,104 |
|
|
28,357 |
|
|
26,643 |
|
|
29,981 |
|
|
2,227 |
|
|
8.0 |
% |
|
50,975 |
|
|
56,624 |
|
|
5,649 |
|
|
11.1 |
% |
||||
|
|
Terminated term life face amount |
|
(18,294 |
) |
|
(14,315 |
) |
|
(13,733 |
) |
|
(14,506 |
) |
|
(17,240 |
) |
|
(14,706 |
) |
|
(392 |
) |
|
-2.7 |
% |
|
(32,609 |
) |
|
(31,946 |
) |
|
663 |
|
|
2.0 |
% |
||||
|
|
Foreign currency impact, net |
|
(8,676 |
) |
|
4,046 |
|
|
1,859 |
|
|
4,740 |
|
|
1,422 |
|
|
1,602 |
|
|
(2,444 |
) |
|
-60.4 |
% |
|
(4,630 |
) |
|
3,023 |
|
|
7,654 |
|
nm |
|
|||||
|
Term life face amount in-force, end of period |
$ |
804,512 |
|
$ |
821,998 |
|
$ |
840,227 |
|
$ |
858,818 |
|
$ |
869,643 |
|
$ |
886,519 |
|
$ |
64,522 |
|
|
7.8 |
% |
$ |
821,998 |
|
$ |
886,519 |
|
$ |
64,522 |
|
|
7.8 |
% |
(1) Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.
(2) In whole dollars.
(3) Issued term life face amount - includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.
10 of 16
Investment and Savings Products - Financial Results and Financial Analysis |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands, except as noted) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$ Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$ Change |
|
% Change |
|
||||||||||||||||||
Investment & Savings Products Income Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Commissions and fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales-based |
$ |
80,891 |
|
$ |
62,812 |
|
$ |
65,600 |
|
$ |
75,347 |
|
$ |
98,112 |
|
$ |
104,716 |
|
$ |
41,903 |
|
|
66.7 |
% |
$ |
143,704 |
|
$ |
202,828 |
|
$ |
59,124 |
|
|
41.1 |
% |
|||||
|
Asset-based |
|
81,395 |
|
|
78,146 |
|
|
86,695 |
|
|
93,669 |
|
|
101,241 |
|
|
108,490 |
|
|
30,345 |
|
|
38.8 |
% |
|
159,540 |
|
|
209,731 |
|
|
50,191 |
|
|
31.5 |
% |
|||||
|
Account-based |
|
20,204 |
|
|
20,478 |
|
|
21,008 |
|
|
21,351 |
|
|
21,120 |
|
|
21,848 |
|
|
1,371 |
|
|
6.7 |
% |
|
40,682 |
|
|
42,968 |
|
|
2,287 |
|
|
5.6 |
% |
|||||
|
Other, net |
|
2,542 |
|
|
2,745 |
|
|
3,034 |
|
|
2,949 |
|
|
2,949 |
|
|
2,958 |
|
|
213 |
|
|
7.8 |
% |
|
5,287 |
|
|
5,907 |
|
|
620 |
|
|
11.7 |
% |
|||||
|
Revenues |
|
185,033 |
|
|
164,180 |
|
|
176,338 |
|
|
193,316 |
|
|
223,422 |
|
|
238,012 |
|
|
73,832 |
|
|
45.0 |
% |
|
349,213 |
|
|
461,434 |
|
|
112,221 |
|
|
32.1 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Amortization of DAC |
|
4,305 |
|
|
100 |
|
|
1,667 |
|
|
982 |
|
|
3,275 |
|
|
1,786 |
|
|
1,686 |
|
nm |
|
|
4,405 |
|
|
5,061 |
|
|
656 |
|
|
14.9 |
% |
||||||
|
Insurance commissions |
|
3,201 |
|
|
3,106 |
|
|
3,377 |
|
|
3,500 |
|
|
3,572 |
|
|
3,747 |
|
|
641 |
|
|
20.6 |
% |
|
6,307 |
|
|
7,319 |
|
|
1,012 |
|
|
16.0 |
% |
|||||
|
Sales commissions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales-based |
|
56,561 |
|
|
44,834 |
|
|
46,821 |
|
|
52,931 |
|
|
68,594 |
|
|
73,629 |
|
|
28,795 |
|
|
64.2 |
% |
|
101,395 |
|
|
142,224 |
|
|
40,828 |
|
|
40.3 |
% |
|||||
|
Asset-based |
|
36,323 |
|
|
35,673 |
|
|
39,349 |
|
|
43,227 |
|
|
46,866 |
|
|
50,488 |
|
|
14,816 |
|
|
41.5 |
% |
|
71,996 |
|
|
97,355 |
|
|
25,359 |
|
|
35.2 |
% |
|||||
|
Other operating expenses |
|
36,942 |
|
|
33,608 |
|
|
33,751 |
|
|
35,963 |
|
|
37,752 |
|
|
37,207 |
|
|
3,599 |
|
|
10.7 |
% |
|
70,551 |
|
|
74,960 |
|
|
4,409 |
|
|
6.2 |
% |
|||||
|
Benefits and expenses |
|
137,332 |
|
|
117,321 |
|
|
124,966 |
|
|
136,603 |
|
|
160,060 |
|
|
166,858 |
|
|
49,537 |
|
|
42.2 |
% |
|
254,654 |
|
|
326,917 |
|
|
72,264 |
|
|
28.4 |
% |
|||||
|
Income before income taxes |
$ |
47,700 |
|
$ |
46,859 |
|
$ |
51,372 |
|
$ |
56,713 |
|
$ |
63,363 |
|
$ |
71,154 |
|
$ |
24,295 |
|
|
51.8 |
% |
$ |
94,559 |
|
$ |
134,517 |
|
$ |
39,958 |
|
|
42.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees paid based on client asset values (1) |
$ |
5,990 |
|
$ |
5,712 |
|
$ |
6,284 |
|
$ |
6,772 |
|
$ |
6,964 |
|
$ |
7,535 |
|
$ |
1,823 |
|
|
31.9 |
% |
$ |
11,702 |
|
$ |
14,498 |
|
$ |
2,796 |
|
|
23.9 |
% |
|||||
|
Fees paid based on fee-generating positions (2) |
|
10,248 |
|
|
9,094 |
|
|
8,747 |
|
|
9,547 |
|
|
10,451 |
|
|
10,021 |
|
|
927 |
|
|
10.2 |
% |
|
19,342 |
|
|
20,472 |
|
|
1,130 |
|
|
5.8 |
% |
|||||
|
Other operating expenses |
|
20,704 |
|
|
18,803 |
|
|
18,719 |
|
|
19,644 |
|
|
20,337 |
|
|
19,652 |
|
|
849 |
|
|
4.5 |
% |
|
39,507 |
|
|
39,989 |
|
|
483 |
|
|
1.2 |
% |
|||||
|
Total other operating expenses |
$ |
36,942 |
|
$ |
33,608 |
|
$ |
33,751 |
|
$ |
35,963 |
|
$ |
37,752 |
|
$ |
37,207 |
|
$ |
3,599 |
|
|
10.7 |
% |
$ |
70,551 |
|
$ |
74,960 |
|
$ |
4,409 |
|
|
6.2 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales-based net revenue as % of revenue-generating sales (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00 |
% |
|
0.00 |
% |
|
— |
|
|
— |
|
|||||
|
U.S. |
|
1.34 |
% |
|
1.33 |
% |
|
1.27 |
% |
|
1.31 |
% |
|
1.29 |
% |
|
1.28 |
% |
nm |
|
nm |
|
|
1.33 |
% |
|
1.28 |
% |
nm |
|
nm |
|
|||||||||
|
Canada |
|
1.06 |
% |
|
0.87 |
% |
|
0.93 |
% |
|
0.95 |
% |
|
1.05 |
% |
|
0.96 |
% |
nm |
|
nm |
|
|
0.99 |
% |
|
1.01 |
% |
nm |
|
nm |
|
|||||||||
|
Total |
|
1.30 |
% |
|
1.27 |
% |
|
1.23 |
% |
|
1.26 |
% |
|
1.25 |
% |
|
1.23 |
% |
nm |
|
nm |
|
|
1.29 |
% |
|
1.24 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-based net revenue as % of average asset values (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00 |
% |
|
0.00 |
% |
|
— |
|
|
— |
|
|||||
|
U.S. |
|
0.038 |
% |
|
0.037 |
% |
|
0.038 |
% |
|
0.038 |
% |
|
0.039 |
% |
|
0.039 |
% |
nm |
|
nm |
|
|
0.075 |
% |
|
0.078 |
% |
nm |
|
nm |
|
|||||||||
|
Canada |
|
0.098 |
% |
|
0.133 |
% |
|
0.119 |
% |
|
0.124 |
% |
|
0.103 |
% |
|
0.112 |
% |
nm |
|
nm |
|
|
0.230 |
% |
|
0.215 |
% |
nm |
|
nm |
|
|||||||||
|
Total |
|
0.047 |
% |
|
0.052 |
% |
|
0.050 |
% |
|
0.052 |
% |
|
0.049 |
% |
|
0.050 |
% |
nm |
|
nm |
|
|
0.099 |
% |
|
0.099 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Account-based net revenue per average fee generating position (5)(6) |
$ |
3.70 |
|
$ |
4.19 |
|
$ |
4.45 |
|
$ |
4.23 |
|
$ |
3.77 |
|
$ |
4.08 |
|
nm |
|
nm |
|
$ |
7.89 |
|
$ |
7.85 |
|
nm |
|
nm |
|
(1) |
Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values. |
(2) |
Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions. |
(3) |
Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity. |
(4) |
Asset-based net revenue - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds. |
(5) |
Account-based net revenue - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions and certain direct general expenses. |
(6) |
In whole dollars. |
11 of 16
Investment and Savings Products - Key Statistics |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands, except as noted) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$/# Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$/# Change |
|
% Change |
|
||||||||||||||||||
Key Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales ($mills) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
U.S. Retail Mutual Funds |
$ |
921.0 |
|
$ |
758.4 |
|
$ |
874.1 |
|
$ |
945.5 |
|
$ |
1,261.9 |
|
$ |
1,336.1 |
|
$ |
577.7 |
|
|
76.2 |
% |
$ |
1,679.4 |
|
$ |
2,598.0 |
|
$ |
918.6 |
|
|
54.7 |
% |
||||
|
|
Canada Retail Mutual Funds |
|
280.9 |
|
|
165.2 |
|
|
189.6 |
|
|
256.0 |
|
|
424.0 |
|
|
357.0 |
|
|
191.7 |
|
|
116.0 |
% |
|
446.1 |
|
|
781.0 |
|
|
334.9 |
|
|
75.1 |
% |
||||
|
|
Indexed Annuities |
|
72.2 |
|
|
48.4 |
|
|
47.2 |
|
|
50.6 |
|
|
55.5 |
|
|
62.8 |
|
|
14.4 |
|
|
29.8 |
% |
|
120.6 |
|
|
118.2 |
|
|
(2.3 |
) |
|
-1.9 |
% |
||||
|
|
Variable Annuities and other |
|
600.6 |
|
|
440.5 |
|
|
421.7 |
|
|
529.3 |
|
|
627.1 |
|
|
767.6 |
|
|
327.1 |
|
|
74.3 |
% |
|
1,041.0 |
|
|
1,394.7 |
|
|
353.6 |
|
|
34.0 |
% |
||||
|
|
|
|
Total sales-based revenue generating product sales |
|
1,874.7 |
|
|
1,412.5 |
|
|
1,532.6 |
|
|
1,781.3 |
|
|
2,368.4 |
|
|
2,523.4 |
|
|
1,110.9 |
|
|
78.7 |
% |
|
3,287.1 |
|
|
4,891.9 |
|
|
1,604.7 |
|
|
48.8 |
% |
||
|
|
Managed Accounts |
|
246.2 |
|
|
200.1 |
|
|
223.0 |
|
|
230.7 |
|
|
330.1 |
|
|
381.8 |
|
|
181.7 |
|
|
90.8 |
% |
|
446.3 |
|
|
711.8 |
|
|
265.5 |
|
|
59.5 |
% |
||||
|
|
Segregated Funds and other |
|
124.8 |
|
|
73.9 |
|
|
85.3 |
|
|
57.3 |
|
|
154.9 |
|
|
135.0 |
|
|
61.1 |
|
|
82.6 |
% |
|
198.7 |
|
|
290.0 |
|
|
91.3 |
|
|
45.9 |
% |
||||
|
|
|
|
Total product sales |
$ |
2,245.7 |
|
$ |
1,686.5 |
|
$ |
1,841.0 |
|
$ |
2,069.4 |
|
$ |
2,853.5 |
|
$ |
3,040.2 |
|
$ |
1,353.8 |
|
|
80.3 |
% |
$ |
3,932.1 |
|
$ |
5,893.7 |
|
$ |
1,961.6 |
|
|
49.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada Retail Mutual Funds |
$ |
280.9 |
|
$ |
165.2 |
|
$ |
189.6 |
|
$ |
256.0 |
|
$ |
424.0 |
|
$ |
357.0 |
|
$ |
191.7 |
|
|
116.0 |
% |
$ |
446.1 |
|
$ |
781.0 |
|
$ |
334.9 |
|
|
75.1 |
% |
||||
|
|
Segregated Funds and other |
|
124.8 |
|
|
73.9 |
|
|
85.3 |
|
|
57.3 |
|
|
154.9 |
|
|
135.0 |
|
|
61.1 |
|
|
82.6 |
% |
|
198.7 |
|
|
290.0 |
|
|
91.3 |
|
|
45.9 |
% |
||||
|
|
|
Total Canada product sales |
|
405.7 |
|
|
239.2 |
|
|
274.9 |
|
|
313.3 |
|
|
579.0 |
|
|
492.0 |
|
|
252.8 |
|
|
105.7 |
% |
|
644.8 |
|
|
1,071.0 |
|
|
426.2 |
|
|
66.1 |
% |
|||
|
|
|
Total U.S. product sales |
|
1,840.0 |
|
|
1,447.3 |
|
|
1,566.1 |
|
|
1,756.1 |
|
|
2,274.5 |
|
|
2,548.2 |
|
|
1,100.9 |
|
|
76.1 |
% |
|
3,287.3 |
|
|
4,822.7 |
|
|
1,535.4 |
|
|
46.7 |
% |
|||
|
|
|
|
Total product sales |
$ |
2,245.7 |
|
$ |
1,686.5 |
|
$ |
1,841.0 |
|
$ |
2,069.4 |
|
$ |
2,853.5 |
|
$ |
3,040.2 |
|
$ |
1,353.8 |
|
|
80.3 |
% |
$ |
3,932.1 |
|
$ |
5,893.7 |
|
$ |
1,961.6 |
|
|
49.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Client asset values, beginning of period ($mills) |
$ |
70,537 |
|
$ |
59,036 |
|
$ |
68,224 |
|
$ |
72,606 |
|
$ |
81,533 |
|
$ |
85,888 |
|
$ |
26,852 |
|
|
45.5 |
% |
$ |
70,537 |
|
$ |
81,533 |
|
$ |
10,996 |
|
|
15.6 |
% |
|||||
|
|
Inflows |
|
2,246 |
|
|
1,686 |
|
|
1,841 |
|
|
2,069 |
|
|
2,853 |
|
|
3,040 |
|
|
1,354 |
|
|
80.3 |
% |
|
3,932 |
|
|
5,894 |
|
|
1,962 |
|
|
49.9 |
% |
||||
|
|
Outflows (1) |
|
(1,703 |
) |
|
(1,074 |
) |
|
(1,333 |
) |
|
(1,427 |
) |
|
(1,759 |
) |
|
(1,826 |
) |
|
(753 |
) |
|
-70.1 |
% |
|
(2,777 |
) |
|
(3,585 |
) |
|
(808 |
) |
|
-29.1 |
% |
||||
|
|
|
|
Net flows |
|
543 |
|
|
613 |
|
|
508 |
|
|
642 |
|
|
1,095 |
|
|
1,214 |
|
|
601 |
|
|
98.1 |
% |
|
1,155 |
|
|
2,308 |
|
|
1,153 |
|
nm |
|
|||
|
|
Foreign currency impact, net |
|
(978 |
) |
|
404 |
|
|
205 |
|
|
539 |
|
|
172 |
|
|
200 |
|
|
(204 |
) |
|
-50.4 |
% |
|
(575 |
) |
|
372 |
|
|
947 |
|
nm |
|
|||||
|
|
Change in market value, net and other (2) |
|
(11,065 |
) |
|
8,171 |
|
|
3,669 |
|
|
7,745 |
|
|
3,088 |
|
|
4,433 |
|
|
(3,738 |
) |
|
-45.7 |
% |
|
(2,894 |
) |
|
7,521 |
|
|
10,415 |
|
nm |
|
|||||
|
Client asset values, end of period |
$ |
59,036 |
|
$ |
68,224 |
|
$ |
72,606 |
|
$ |
81,533 |
|
$ |
85,888 |
|
$ |
91,735 |
|
$ |
23,511 |
|
|
34.5 |
% |
$ |
68,224 |
|
$ |
91,735 |
|
$ |
23,511 |
|
|
34.5 |
% |
|||||
|
|
Annualized net flows as % of beginning of period asset values |
|
3.1 |
% |
|
4.2 |
% |
|
3.0 |
% |
|
3.5 |
% |
|
5.4 |
% |
|
5.7 |
% |
|
1.5 |
% |
nm |
|
|
3.3 |
% |
|
5.7 |
% |
|
2.4 |
% |
nm |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average client asset values ($mills) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
U.S. Retail Mutual Funds |
$ |
32,693 |
|
$ |
31,586 |
|
$ |
35,204 |
|
$ |
37,562 |
|
$ |
41,161 |
|
$ |
44,398 |
|
$ |
12,812 |
|
|
40.6 |
% |
$ |
32,140 |
|
$ |
42,779 |
|
$ |
10,640 |
|
|
33.1 |
% |
||||
|
|
Canada Retail Mutual Funds |
|
7,950 |
|
|
7,573 |
|
|
8,525 |
|
|
9,186 |
|
|
10,268 |
|
|
11,256 |
|
|
3,683 |
|
|
48.6 |
% |
|
7,761 |
|
|
10,762 |
|
|
3,001 |
|
|
38.7 |
% |
||||
|
|
Managed Accounts |
|
3,905 |
|
|
3,871 |
|
|
4,325 |
|
|
4,703 |
|
|
5,295 |
|
|
5,915 |
|
|
2,044 |
|
|
52.8 |
% |
|
3,888 |
|
|
5,605 |
|
|
1,717 |
|
|
44.2 |
% |
||||
|
|
Indexed Annuities |
|
2,389 |
|
|
2,427 |
|
|
2,446 |
|
|
2,469 |
|
|
2,495 |
|
|
2,541 |
|
|
114 |
|
|
4.7 |
% |
|
2,408 |
|
|
2,518 |
|
|
110 |
|
|
4.6 |
% |
||||
|
|
Variable Annuities and other |
|
17,292 |
|
|
16,890 |
|
|
18,551 |
|
|
19,634 |
|
|
21,291 |
|
|
22,554 |
|
|
5,664 |
|
|
33.5 |
% |
|
17,091 |
|
|
21,922 |
|
|
4,832 |
|
|
28.3 |
% |
||||
|
|
Segregated Funds |
|
2,366 |
|
|
2,291 |
|
|
2,461 |
|
|
2,536 |
|
|
2,622 |
|
|
2,713 |
|
|
422 |
|
|
18.4 |
% |
|
2,328 |
|
|
2,667 |
|
|
339 |
|
|
14.6 |
% |
||||
|
|
|
|
Total |
$ |
66,595 |
|
$ |
64,638 |
|
$ |
71,512 |
|
$ |
76,090 |
|
$ |
83,131 |
|
$ |
89,378 |
|
$ |
24,740 |
|
|
38.3 |
% |
$ |
65,617 |
|
$ |
86,255 |
|
$ |
20,638 |
|
|
31.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada Retail Mutual Funds |
$ |
7,950 |
|
$ |
7,573 |
|
$ |
8,525 |
|
$ |
9,186 |
|
$ |
10,268 |
|
$ |
11,256 |
|
$ |
3,683 |
|
|
48.6 |
% |
$ |
7,761 |
|
$ |
10,762 |
|
$ |
3,001 |
|
|
38.7 |
% |
||||
|
|
Segregated Funds |
|
2,366 |
|
|
2,291 |
|
|
2,461 |
|
|
2,536 |
|
|
2,622 |
|
|
2,713 |
|
|
422 |
|
|
18.4 |
% |
|
2,328 |
|
|
2,667 |
|
|
339 |
|
|
14.6 |
% |
||||
|
|
|
Total Canada average client assets |
|
10,316 |
|
|
9,864 |
|
|
10,986 |
|
|
11,722 |
|
|
12,890 |
|
|
13,969 |
|
|
4,106 |
|
|
41.6 |
% |
|
10,090 |
|
|
13,430 |
|
|
3,340 |
|
|
33.1 |
% |
|||
|
|
|
Total U.S. average client assets |
|
56,279 |
|
|
54,775 |
|
|
60,526 |
|
|
64,368 |
|
|
70,241 |
|
|
75,409 |
|
|
20,634 |
|
|
37.7 |
% |
|
55,527 |
|
|
72,825 |
|
|
17,298 |
|
|
31.2 |
% |
|||
|
|
|
|
Total average client assets |
$ |
66,595 |
|
$ |
64,638 |
|
$ |
71,512 |
|
$ |
76,090 |
|
$ |
83,131 |
|
$ |
89,378 |
|
$ |
24,740 |
|
|
38.3 |
% |
$ |
65,617 |
|
$ |
86,255 |
|
$ |
20,638 |
|
|
31.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of fee-generating positions (thous) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Recordkeeping and custodial |
|
2,031 |
|
|
2,048 |
|
|
2,072 |
|
|
2,091 |
|
|
2,115 |
|
|
2,159 |
|
|
111 |
|
|
5.4 |
% |
|
2,039 |
|
|
2,137 |
|
|
98 |
|
|
4.8 |
% |
||||
|
|
Recordkeeping only |
|
658 |
|
|
671 |
|
|
685 |
|
|
697 |
|
|
714 |
|
|
741 |
|
|
70 |
|
|
10.4 |
% |
|
665 |
|
|
727 |
|
|
63 |
|
|
9.5 |
% |
||||
|
|
|
|
Total |
|
2,689 |
|
|
2,718 |
|
|
2,757 |
|
|
2,788 |
|
|
2,830 |
|
|
2,899 |
|
|
181 |
|
|
6.6 |
% |
|
2,704 |
|
|
2,864 |
|
|
161 |
|
|
5.9 |
% |
(1) |
Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform. The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available. Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values. |
(2) |
Change in market value, net - market value fluctuations net of fees and expenses. |
(3) |
Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds. |
12 of 16
Investment Portfolio - Summary of Holdings |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
As of or for the period ended June 30, 2021 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total |
|
Avg |
|
|
|||||
|
|
|
|
|
|
|
|
Market |
|
Amortized |
|
Unrealized |
|
Market |
|
Amortized |
|
Book |
|
Avg |
||||||
(Dollars in thousands) |
|
Value |
|
Cost |
|
G/(L) |
|
Value |
|
Cost |
|
Yield |
|
Rating |
||||||||||||
Investment Portfolio by Asset Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash Equivalents, and Short Term |
|
$ |
814,916 |
|
$ |
814,916 |
|
$ |
- |
|
|
24.0 |
% |
|
24.9 |
% |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Treasury |
|
|
20,513 |
|
|
19,913 |
|
|
600 |
|
|
0.6 |
% |
|
0.6 |
% |
|
1.87 |
% |
AAA |
|||||
|
Government |
|
|
247,364 |
|
|
234,937 |
|
|
12,427 |
|
|
7.3 |
% |
|
7.2 |
% |
|
3.00 |
% |
AA- |
|||||
|
Tax-Exempt Municipal |
|
|
45,810 |
|
|
43,066 |
|
|
2,743 |
|
|
1.3 |
% |
|
1.3 |
% |
|
2.75 |
% |
AA |
|||||
|
Public Corporate |
|
|
1,529,370 |
|
|
1,444,661 |
|
|
84,709 |
|
|
45.0 |
% |
|
44.1 |
% |
|
3.45 |
% |
BBB+ |
|||||
|
Mortgage Backed |
|
|
269,295 |
|
|
261,600 |
|
|
7,695 |
|
|
7.9 |
% |
|
8.0 |
% |
|
2.67 |
% |
AAA |
|||||
|
Asset Backed |
|
|
88,876 |
|
|
87,538 |
|
|
1,337 |
|
|
2.6 |
% |
|
2.7 |
% |
|
2.81 |
% |
A+ |
|||||
|
CMBS |
|
|
156,266 |
|
|
150,520 |
|
|
5,746 |
|
|
4.6 |
% |
|
4.6 |
% |
|
2.97 |
% |
AA- |
|||||
|
Private Placements |
|
|
184,640 |
|
|
177,071 |
|
|
7,569 |
|
|
5.4 |
% |
|
5.4 |
% |
|
4.28 |
% |
BBB |
|||||
|
Redeemable Preferred |
|
|
5,949 |
|
|
5,447 |
|
|
502 |
|
|
0.2 |
% |
|
0.2 |
% |
|
5.47 |
% |
BBB |
|||||
|
|
|
|
|
|
Total Fixed Income |
|
|
2,548,083 |
|
|
2,424,755 |
|
|
123,329 |
|
|
74.9 |
% |
|
74.0 |
% |
|
3.31 |
% |
A- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities and Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Perpetual Preferred |
|
|
13,577 |
|
|
13,577 |
|
|
- |
|
|
0.4 |
% |
|
0.4 |
% |
|
|
|
|
|||||
|
Common Stock |
|
|
17,926 |
|
|
17,926 |
|
|
- |
|
|
0.5 |
% |
|
0.5 |
% |
|
|
|
|
|||||
|
Mutual Fund |
|
|
6,103 |
|
|
6,103 |
|
|
- |
|
|
0.2 |
% |
|
0.2 |
% |
|
|
|
|
|||||
|
Derivatives |
|
|
8 |
|
|
8 |
|
|
- |
|
|
0.0 |
% |
|
0.0 |
% |
|
|
|
|
|||||
|
Other |
|
|
- |
|
|
- |
|
|
- |
|
|
0.0 |
% |
|
0.0 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
Total Equities |
|
|
37,613 |
|
|
37,613 |
|
|
- |
|
|
1.1 |
% |
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Invested Assets |
|
$ |
3,400,612 |
|
$ |
3,277,284 |
|
$ |
123,329 |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Corporate Portfolio by Sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Non Cyclical |
|
$ |
196,985 |
|
$ |
187,679 |
|
$ |
9,306 |
|
|
12.9 |
% |
|
13.0 |
% |
|
|
|
|
|||||
|
Insurance |
|
|
175,223 |
|
|
166,013 |
|
|
9,210 |
|
|
11.5 |
% |
|
11.5 |
% |
|
|
|
|
|||||
|
Energy |
|
|
161,945 |
|
|
150,775 |
|
|
11,170 |
|
|
10.6 |
% |
|
10.4 |
% |
|
|
|
|
|||||
|
REITs |
|
|
141,108 |
|
|
132,352 |
|
|
8,755 |
|
|
9.2 |
% |
|
9.2 |
% |
|
|
|
|
|||||
|
Consumer Cyclical |
|
|
124,977 |
|
|
118,186 |
|
|
6,791 |
|
|
8.2 |
% |
|
8.2 |
% |
|
|
|
|
|||||
|
Banking |
|
|
122,119 |
|
|
116,194 |
|
|
5,925 |
|
|
8.0 |
% |
|
8.0 |
% |
|
|
|
|
|||||
|
Technology |
|
|
114,202 |
|
|
107,410 |
|
|
6,792 |
|
|
7.5 |
% |
|
7.4 |
% |
|
|
|
|
|||||
|
Electric |
|
|
95,148 |
|
|
90,426 |
|
|
4,722 |
|
|
6.2 |
% |
|
6.3 |
% |
|
|
|
|
|||||
|
Capital Goods |
|
|
85,013 |
|
|
81,452 |
|
|
3,561 |
|
|
5.6 |
% |
|
5.6 |
% |
|
|
|
|
|||||
|
Basic Industry |
|
|
79,029 |
|
|
74,531 |
|
|
4,498 |
|
|
5.2 |
% |
|
5.2 |
% |
|
|
|
|
|||||
|
Transportation |
|
|
65,193 |
|
|
62,347 |
|
|
2,846 |
|
|
4.3 |
% |
|
4.3 |
% |
|
|
|
|
|||||
|
Communications |
|
|
57,186 |
|
|
52,580 |
|
|
4,606 |
|
|
3.7 |
% |
|
3.6 |
% |
|
|
|
|
|||||
|
Brokerage |
|
|
51,693 |
|
|
47,977 |
|
|
3,716 |
|
|
3.4 |
% |
|
3.3 |
% |
|
|
|
|
|||||
|
Finance Companies |
|
|
29,399 |
|
|
27,705 |
|
|
1,694 |
|
|
1.9 |
% |
|
1.9 |
% |
|
|
|
|
|||||
|
Financial Other |
|
|
10,676 |
|
|
10,348 |
|
|
327 |
|
|
0.7 |
% |
|
0.7 |
% |
|
|
|
|
|||||
|
Industrial Other |
|
|
8,041 |
|
|
7,657 |
|
|
385 |
|
|
0.5 |
% |
|
0.5 |
% |
|
|
|
|
|||||
|
Utility Other |
|
|
5,554 |
|
|
5,385 |
|
|
169 |
|
|
0.4 |
% |
|
0.4 |
% |
|
|
|
|
|||||
|
Natural Gas |
|
|
3,581 |
|
|
3,319 |
|
|
262 |
|
|
0.2 |
% |
|
0.2 |
% |
|
|
|
|
|||||
|
Owned No Guarantee |
|
|
2,298 |
|
|
2,325 |
|
|
(27 |
) |
|
0.2 |
% |
|
0.2 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
Total Corporate portfolio |
|
$ |
1,529,370 |
|
$ |
1,444,661 |
|
$ |
84,709 |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-Maturity Securities - Effective Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
< 1 Yr. |
|
$ |
247,368 |
|
$ |
244,199 |
|
$ |
3,169 |
|
|
9.7 |
% |
|
10.1 |
% |
|
2.99 |
% |
|
||||
|
|
1-2 Yrs. |
|
|
325,817 |
|
|
313,010 |
|
|
12,807 |
|
|
12.8 |
% |
|
12.9 |
% |
|
3.47 |
% |
|
||||
|
|
2-5 Yrs. |
|
|
839,731 |
|
|
787,988 |
|
|
51,743 |
|
|
33.0 |
% |
|
32.5 |
% |
|
3.53 |
% |
|
||||
|
|
5-10 Yrs. |
|
|
852,105 |
|
|
812,923 |
|
|
39,182 |
|
|
33.4 |
% |
|
33.5 |
% |
|
3.09 |
% |
|
||||
|
|
> 10 Yrs. |
|
|
283,062 |
|
|
266,636 |
|
|
16,427 |
|
|
11.1 |
% |
|
11.0 |
% |
|
3.43 |
% |
|
||||
|
|
|
|
|
|
Total Fixed Income |
|
$ |
2,548,083 |
|
$ |
2,424,755 |
|
$ |
123,329 |
|
|
100.0 |
% |
|
100.0 |
% |
|
3.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Duration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income portfolio duration |
|
|
4.8 |
|
years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.
13 of 16
Investment Portfolio - Quality Ratings As of June 30, 2021 |
PRIMERICA, INC. Financial Supplement |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investment Portfolio Quality Ratings (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Amortized Cost |
|
% of Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Fixed Income portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
AAA |
|
$ |
399,729 |
|
|
16.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
AA |
|
|
281,776 |
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
A |
|
|
536,265 |
|
|
22.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
BBB |
|
|
1,103,390 |
|
|
45.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Below Investment Grade |
|
|
100,104 |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
NA |
|
|
3,490 |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
Total Fixed Income |
|
$ |
2,424,755 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost |
|
% of Total |
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost |
|
% of Total |
|
||||
Public Corporate asset class: |
|
|
|
|
|
|
|
|
|
Private Placement asset class: |
|
|
|
|
|
|
|
||||||||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
Rating |
|
|
|
|
|
|
|
||||||||||
|
AAA |
|
$ |
11,843 |
|
|
0.8 |
% |
|
|
|
AAA |
|
$ |
- |
|
|
— |
|
||||||||||
|
AA |
|
|
77,705 |
|
|
5.4 |
% |
|
|
|
AA |
|
|
5,519 |
|
|
3.1 |
% |
||||||||||
|
A |
|
|
329,222 |
|
|
22.8 |
% |
|
|
|
A |
|
|
21,309 |
|
|
12.0 |
% |
||||||||||
|
BBB |
|
|
941,380 |
|
|
65.2 |
% |
|
|
|
BBB |
|
|
137,454 |
|
|
77.6 |
% |
||||||||||
|
Below Investment Grade |
|
|
83,563 |
|
|
5.8 |
% |
|
|
|
Below Investment Grade |
|
|
12,790 |
|
|
7.2 |
% |
||||||||||
|
NA |
|
|
949 |
|
|
0.1 |
% |
|
|
|
NA |
|
|
- |
|
|
— |
|
||||||||||
|
|
|
|
|
|
Total Corporate |
|
$ |
1,444,661 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
Total Private |
|
$ |
177,071 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMBS asset class: |
|
|
|
|
|
|
|
|
|
Mortgage-Backed asset class: |
|
|
|
|
|
|
|
||||||||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
Rating |
|
|
|
|
|
|
|
||||||||||
|
AAA |
|
$ |
80,451 |
|
|
53.4 |
% |
|
|
|
AAA |
|
$ |
232,714 |
|
|
89.0 |
% |
||||||||||
|
AA |
|
|
2,946 |
|
|
2.0 |
% |
|
|
|
AA |
|
|
28,514 |
|
|
10.9 |
% |
||||||||||
|
A |
|
|
67,053 |
|
|
44.5 |
% |
|
|
|
A |
|
|
247 |
|
|
0.1 |
% |
||||||||||
|
BBB |
|
|
- |
|
|
— |
|
|
|
|
BBB |
|
|
- |
|
|
— |
|
||||||||||
|
Below Investment Grade |
|
|
71 |
|
|
0.0 |
% |
|
|
|
Below Investment Grade |
|
|
92 |
|
|
0.0 |
% |
||||||||||
|
NA |
|
|
- |
|
|
— |
|
|
|
|
NA |
|
|
34 |
|
|
0.0 |
% |
||||||||||
|
|
|
|
|
|
Total CMBS |
|
$ |
150,520 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
Total Mortgage-Backed |
|
$ |
261,600 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Backed asset class: |
|
|
|
|
|
|
|
|
|
Treasury & Government asset classes: |
|
|
|
|
|
|
|
||||||||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
Rating |
|
|
|
|
|
|
|
||||||||||
|
AAA |
|
$ |
22,313 |
|
|
25.5 |
% |
|
|
|
AAA |
|
$ |
50,446 |
|
|
19.8 |
% |
||||||||||
|
AA |
|
|
5,552 |
|
|
6.3 |
% |
|
|
|
AA |
|
|
128,997 |
|
|
50.6 |
% |
||||||||||
|
A |
|
|
53,113 |
|
|
60.7 |
% |
|
|
|
A |
|
|
60,196 |
|
|
23.6 |
% |
||||||||||
|
BBB |
|
|
3,363 |
|
|
3.8 |
% |
|
|
|
BBB |
|
|
12,314 |
|
|
4.8 |
% |
||||||||||
|
Below Investment Grade |
|
|
691 |
|
|
0.8 |
% |
|
|
|
Below Investment Grade |
|
|
2,897 |
|
|
1.1 |
% |
||||||||||
|
NA |
|
|
2,507 |
|
|
2.9 |
% |
|
|
|
NA |
|
|
0 |
|
|
0.0 |
% |
||||||||||
|
|
|
|
|
|
Total Asset-Backed |
|
$ |
87,538 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
Total Treasury & Government |
|
$ |
254,850 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAIC Designations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
1,027,529 |
|
|
48.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
2 |
|
|
1,012,969 |
|
|
46.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
3 |
|
|
96,617 |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
4 |
|
|
12,695 |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
5 |
|
|
- |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
6 |
|
|
698 |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
U.S. Insurer Fixed Income (2) |
|
|
2,150,509 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (3) |
|
|
311,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents |
|
|
814,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
Total Invested Assets |
|
$ |
3,277,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest. |
(2) |
NAIC ratings for our U.S. insurance companies' fixed income portfolios. |
(3) |
Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities. |
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.
14 of 16
Investment Portfolio - Supplemental Data and Trends |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
$ Change |
|
% Change |
|
||||||||||||||
Net Investment Income by Source |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Fixed-maturity securities (available-for-sale) |
$ |
20,784 |
|
$ |
20,213 |
|
$ |
20,882 |
|
$ |
20,925 |
|
$ |
20,020 |
|
$ |
20,155 |
|
$ |
(58 |
) |
-0.3% |
|
||||||
|
Fixed-maturity securities (held-to-maturity) |
|
13,472 |
|
|
14,074 |
|
|
14,704 |
|
|
15,223 |
|
|
15,146 |
|
|
15,495 |
|
|
1,421 |
|
10.1% |
|
||||||
|
Equity Securities |
|
451 |
|
|
461 |
|
|
433 |
|
|
406 |
|
|
391 |
|
|
411 |
|
|
(50 |
) |
-10.8% |
|
||||||
|
Deposit asset underlying 10% reinsurance treaty |
|
1,830 |
|
|
1,394 |
|
|
1,694 |
|
|
1,330 |
|
|
1,368 |
|
|
1,238 |
|
|
(156 |
) |
-11.2% |
|
||||||
|
Deposit asset - Mark to Market |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
|
(2,429 |
) |
-107.5% |
|
||||||
|
Policy loans and other invested assets |
|
189 |
|
|
541 |
|
|
242 |
|
|
272 |
|
|
231 |
|
|
98 |
|
|
(443 |
) |
-81.9% |
|
||||||
|
Cash & cash equivalents |
|
843 |
|
|
143 |
|
|
114 |
|
|
103 |
|
|
119 |
|
|
156 |
|
|
13 |
|
9.4% |
|
||||||
|
|
|
|
|
Total investment income |
|
31,190 |
|
|
39,085 |
|
|
39,234 |
|
|
39,219 |
|
|
36,483 |
|
|
37,383 |
|
|
(1,702 |
) |
-4.4% |
|
||
|
Investment expenses |
|
2,298 |
|
|
2,300 |
|
|
1,577 |
|
|
1,265 |
|
|
1,284 |
|
|
1,353 |
|
|
(947 |
) |
-41.2% |
|
||||||
|
Interest Expense on Surplus Note |
|
13,472 |
|
|
14,074 |
|
|
14,704 |
|
|
15,223 |
|
|
15,146 |
|
|
15,495 |
|
|
1,421 |
|
10.1% |
|
||||||
|
|
|
|
|
Net investment income |
$ |
15,420 |
|
$ |
22,710 |
|
$ |
22,953 |
|
$ |
22,731 |
|
$ |
20,052 |
|
$ |
20,535 |
|
$ |
(2,175 |
) |
-9.6% |
|
||
|
|
Fixed income book yield, end of period |
|
3.55 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.44 |
% |
|
3.30 |
% |
|
3.31 |
% |
|
|
|
|
|
|
||||
|
|
New money yield |
|
3.25 |
% |
|
3.14 |
% |
|
2.44 |
% |
|
2.67 |
% |
|
1.72 |
% |
|
2.68 |
% |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q2 |
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
% Pt Change |
|
|
|
|
|||||||
Fixed Income Portfolio Quality Ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
AAA |
|
22.9 |
% |
|
21.5 |
% |
|
19.6 |
% |
|
18.7 |
% |
|
16.6 |
% |
|
16.5 |
% |
|
-5.0 |
% |
|
|
|
|||||
|
AA |
|
12.1 |
% |
|
11.6 |
% |
|
12.8 |
% |
|
12.7 |
% |
|
12.2 |
% |
|
11.6 |
% |
|
-0.0 |
% |
|
|
|
|||||
|
A |
|
22.9 |
% |
|
22.3 |
% |
|
21.8 |
% |
|
22.3 |
% |
|
23.0 |
% |
|
22.1 |
% |
|
-0.2 |
% |
|
|
|
|||||
|
BBB |
|
38.9 |
% |
|
40.4 |
% |
|
42.0 |
% |
|
42.3 |
% |
|
44.0 |
% |
|
45.5 |
% |
|
5.1 |
% |
|
|
|
|||||
|
Below Investment Grade |
|
3.1 |
% |
|
4.0 |
% |
|
3.8 |
% |
|
3.9 |
% |
|
4.1 |
% |
|
4.2 |
% |
|
0.2 |
% |
|
|
|
|||||
|
NA |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.0 |
% |
|
|
|
|||||
|
|
|
|
|
Total Fixed Income |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rating by amortized cost |
A |
|
A |
|
A |
|
A |
|
A- |
|
A- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2021 |
|
|
|
As of June 30, 2021 |
|
|
|
|
|
|
As of June 30, 2021 |
|
||||||||||||||
|
|
|
|
|
|
|
Market Value |
|
Amortized Cost |
|
Credit Rating |
|
|
|
Market Value |
|
Amortized Cost |
|
|
|
|
|
|
Market Value |
|
Amortized Cost |
|
||||||
Top 25 Exposures |
|
|
|
|
|
|
|
|
Foreign Exposure (1) |
|
|
|
|
|
|
|
|
Government Investments (1) |
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Canada |
$ |
16,105 |
|
$ |
15,604 |
|
AAA |
|
Canada |
$ |
80,769 |
|
$ |
74,467 |
|
|
|
AAA |
$ |
2,011 |
|
$ |
2,001 |
|
|||||||
|
2 |
ConocoPhillips |
|
12,524 |
|
|
11,056 |
|
A- |
|
Australia |
|
32,267 |
|
|
30,481 |
|
|
|
AA |
|
9,923 |
|
|
9,634 |
|
|||||||
|
3 |
Enbridge Inc |
|
12,196 |
|
|
11,747 |
|
BBB+ |
|
United Kingdom |
|
31,558 |
|
|
30,159 |
|
|
|
A |
|
9,767 |
|
|
9,380 |
|
|||||||
|
4 |
Province of Quebec Canada |
|
11,588 |
|
|
10,530 |
|
AA- |
|
Cayman Islands |
|
14,618 |
|
|
14,509 |
|
|
|
BBB |
|
10,850 |
|
|
10,323 |
|
|||||||
|
5 |
Morgan Stanley |
|
11,582 |
|
|
11,071 |
|
A+ |
|
France |
|
12,594 |
|
|
12,149 |
|
|
|
Below Investment Grade |
|
2,962 |
|
|
2,897 |
|
|||||||
|
6 |
Province of British Columbia Canada |
|
10,475 |
|
|
10,181 |
|
AAA |
|
Ireland |
|
11,464 |
|
|
11,943 |
|
|
|
NA |
|
— |
|
|
— |
|
|||||||
|
7 |
Capital One Financial Corp |
|
10,337 |
|
|
9,886 |
|
BBB |
|
Japan |
|
10,856 |
|
|
10,322 |
|
|
|
|
Total |
$ |
35,513 |
|
$ |
34,235 |
|
||||||
|
8 |
Province of Alberta Canada |
|
10,178 |
|
|
9,654 |
|
A |
|
Mexico |
|
10,559 |
|
|
10,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
9 |
Wells Fargo & Co |
|
9,466 |
|
|
9,172 |
|
A- |
|
Bermuda |
|
9,739 |
|
|
9,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
10 |
Province of Ontario Canada |
|
9,158 |
|
|
8,714 |
|
A+ |
|
Netherlands |
|
9,186 |
|
|
7,946 |
|
|
|
Non-Government Investments (1) |
|
|
|
|
|
|
|||||||
|
11 |
AbbVie Inc |
|
8,883 |
|
|
8,704 |
|
BBB+ |
|
Germany |
|
8,981 |
|
|
8,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
12 |
Entergy Corp |
|
8,741 |
|
|
8,446 |
|
BBB+ |
|
Switzerland |
|
7,757 |
|
|
7,698 |
|
|
|
AAA |
$ |
4,694 |
|
$ |
4,684 |
|
|||||||
|
13 |
General Motors Co |
|
8,552 |
|
|
7,788 |
|
BBB |
|
Brazil |
|
4,646 |
|
|
4,548 |
|
|
|
AA |
|
11,648 |
|
|
11,576 |
|
|||||||
|
14 |
TC Energy Corp |
|
8,142 |
|
|
7,658 |
|
BBB+ |
|
Israel |
|
3,983 |
|
|
3,551 |
|
|
|
A |
|
58,700 |
|
|
55,785 |
|
|||||||
|
15 |
Discovery Inc |
|
8,136 |
|
|
6,973 |
|
BBB- |
|
Luxembourg |
|
3,685 |
|
|
3,500 |
|
|
|
BBB |
|
161,666 |
|
|
151,368 |
|
|||||||
|
16 |
Province of Newfoundland and Labrador |
|
8,086 |
|
|
7,459 |
|
A |
|
Emerging Markets (2) |
|
14,863 |
|
|
14,396 |
|
|
|
Below Investment Grade |
|
14,443 |
|
|
14,397 |
|
|||||||
|
17 |
City of Toronto Canada |
|
8,034 |
|
|
7,599 |
|
AA |
|
All Other |
|
|
20,138 |
|
|
19,263 |
|
|
|
NA |
|
1,000 |
|
|
1,000 |
|
||||||
|
18 |
CVS Health Corp |
|
8,027 |
|
|
7,938 |
|
BBB |
|
|
Total |
$ |
287,663 |
|
$ |
273,045 |
|
|
|
|
Total |
$ |
252,150 |
|
$ |
238,810 |
|
|||||
|
19 |
CI Financial Corp |
|
7,999 |
|
|
7,864 |
|
BBB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
20 |
Truist Financial Corp |
|
7,983 |
|
|
7,497 |
|
A- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
21 |
Simon Property Group Inc |
|
7,977 |
|
|
7,362 |
|
A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
22 |
City of Montreal Canada |
|
7,903 |
|
|
7,106 |
|
AA- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
23 |
General Mills Inc |
|
7,787 |
|
|
7,353 |
|
BBB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
24 |
City of Chicago IL |
|
7,786 |
|
|
7,390 |
|
A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
25 |
Duke Energy Corp |
|
7,632 |
|
|
7,505 |
|
BBB+ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
Total |
$ |
235,278 |
|
$ |
222,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of total fixed income portfolio |
|
6.9 |
% |
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
US$ denominated investments in issuers outside of the United States based on country of risk. |
(2) |
Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa. |
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.
15 of 16
Five-Year Historical Key Statistics |
PRIMERICA, INC. Financial Supplement |
(Dollars in millions) |
2016 |
|
2017 |
|
2018 |
|
2019 |
|
2020 |
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recruits |
|
262,732 |
|
|
303,867 |
|
|
290,886 |
|
|
282,207 |
|
|
400,345 |
|
|
84,762 |
|
|
133,123 |
|
|
101,861 |
|
|
80,599 |
|
|
94,633 |
|
|
89,285 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life-insurance licensed sales force, beginning of period |
|
106,710 |
|
|
116,827 |
|
|
126,121 |
|
|
130,736 |
|
|
130,522 |
|
|
130,522 |
|
|
130,095 |
|
|
134,157 |
|
|
136,306 |
|
|
134,907 |
|
|
132,030 |
|
||||||
|
New life-licensed representatives |
|
44,724 |
|
|
48,535 |
|
|
48,041 |
|
|
44,739 |
|
|
48,106 |
|
|
10,599 |
|
|
12,250 |
|
|
13,138 |
|
|
12,119 |
|
|
10,833 |
|
|
10,112 |
|
|||||
|
Non-renewal and terminated representatives |
|
(34,607 |
) |
|
(39,241 |
) |
|
(43,426 |
) |
|
(44,953 |
) |
|
(43,721 |
) |
|
(11,026 |
) |
|
(8,188 |
) |
|
(10,989 |
) |
|
(13,518 |
) |
|
(13,710 |
) |
|
(10,101 |
) |
|||||
Life-insurance licensed sales force, end of period |
|
116,827 |
|
|
126,121 |
|
|
130,736 |
|
|
130,522 |
|
|
134,907 |
|
|
130,095 |
|
|
134,157 |
|
|
136,306 |
|
|
134,907 |
|
|
132,030 |
|
|
132,041 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued term life policies |
|
298,244 |
|
|
312,799 |
|
|
301,589 |
|
|
287,809 |
|
|
352,868 |
|
|
71,318 |
|
|
94,044 |
|
|
100,199 |
|
|
87,307 |
|
|
82,667 |
|
|
90,071 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Issued term life face amount |
$ |
89,869 |
|
$ |
95,635 |
|
$ |
95,209 |
|
$ |
93,994 |
|
$ |
109,436 |
|
$ |
23,221 |
|
$ |
27,754 |
|
$ |
30,104 |
|
$ |
28,357 |
|
$ |
26,643 |
|
$ |
29,981 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term life face amount in force, beginning of period |
$ |
693,194 |
|
$ |
728,385 |
|
$ |
763,831 |
|
$ |
781,041 |
|
$ |
808,262 |
|
$ |
808,262 |
|
$ |
804,512 |
|
$ |
821,998 |
|
$ |
840,227 |
|
$ |
858,818 |
|
$ |
869,643 |
|
||||||
|
Issued term life face amount |
|
89,869 |
|
|
95,635 |
|
|
95,209 |
|
|
93,994 |
|
|
109,436 |
|
|
23,221 |
|
|
27,754 |
|
|
30,104 |
|
|
28,357 |
|
|
26,643 |
|
|
29,981 |
|
|||||
|
Terminated term life face amount |
|
(57,238 |
) |
|
(65,958 |
) |
|
(70,291 |
) |
|
(71,519 |
) |
|
(60,848 |
) |
|
(18,294 |
) |
|
(14,315 |
) |
|
(13,733 |
) |
|
(14,506 |
) |
|
(17,240 |
) |
|
(14,706 |
) |
|||||
|
Foreign currency impact, net |
|
2,560 |
|
|
5,769 |
|
|
(7,708 |
) |
|
4,746 |
|
|
1,968 |
|
|
(8,676 |
) |
|
4,046 |
|
|
1,859 |
|
|
4,740 |
|
|
1,422 |
|
|
1,602 |
|
|||||
Term life face amount in force, end of period |
$ |
728,385 |
|
$ |
763,831 |
|
$ |
781,041 |
|
$ |
808,262 |
|
$ |
858,818 |
|
$ |
804,512 |
|
$ |
821,998 |
|
$ |
840,227 |
|
$ |
858,818 |
|
$ |
869,643 |
|
$ |
886,519 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated annualized issued term life premium |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Premium from new policies |
$ |
237.9 |
|
$ |
255.4 |
|
$ |
250.8 |
|
$ |
244.8 |
|
$ |
303.6 |
|
$ |
61.5 |
|
$ |
77.7 |
|
$ |
86.0 |
|
$ |
78.4 |
|
$ |
74.5 |
|
$ |
82.6 |
|
|||||
|
Additions and increases in premium |
|
46.4 |
|
|
49.5 |
|
|
55.2 |
|
|
60.2 |
|
|
68.9 |
|
|
15.0 |
|
|
17.8 |
|
|
17.9 |
|
|
18.1 |
|
|
18.0 |
|
|
20.3 |
|
|||||
|
|
Total estimated annualized issued term life premium |
$ |
284.3 |
|
$ |
304.9 |
|
$ |
306.0 |
|
$ |
305.0 |
|
$ |
372.5 |
|
$ |
76.5 |
|
$ |
95.5 |
|
$ |
103.9 |
|
$ |
96.5 |
|
$ |
92.5 |
|
$ |
103.0 |
|
||||
|
|
|
|
|
|
|
|
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Investment & Savings product sales |
$ |
5,594.3 |
|
$ |
6,192.2 |
|
$ |
7,040.1 |
|
$ |
7,533.2 |
|
$ |
7,842.5 |
|
$ |
2,245.7 |
|
$ |
1,686.5 |
|
$ |
1,841.0 |
|
$ |
2,069.4 |
|
$ |
2,853.5 |
|
$ |
3,040.2 |
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Investment & Savings average client asset values |
$ |
49,427 |
|
$ |
56,791 |
|
$ |
61,842 |
|
$ |
65,029 |
|
$ |
69,709 |
|
$ |
66,595 |
|
$ |
64,638 |
|
$ |
71,512 |
|
$ |
76,090 |
|
$ |
83,131 |
|
$ |
89,378 |
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Closed U.S. Mortgage Volume (brokered) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
31.1 |
|
$ |
442.5 |
|
$ |
12.9 |
|
$ |
65.8 |
|
$ |
160.0 |
|
$ |
203.8 |
|
$ |
262.3 |
|
$ |
298.6 |
|
16 of 16
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Document and Entity Information |
Aug. 05, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Aug. 05, 2021 |
Entity Registrant Name | Primerica, Inc. |
Entity Central Index Key | 0001475922 |
Entity Emerging Growth Company | false |
Entity File Number | 001-34680 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 27-1204330 |
Entity Address, Address Line One | 1 Primerica Parkway |
Entity Address, City or Town | Duluth |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30099 |
City Area Code | 770 |
Local Phone Number | 381-1000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of each class | Common Stock |
Trading Symbol | PRI |
Name of each exchange on which registered | NYSE |
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