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):
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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 |
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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 November 8, 2021, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended September 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 e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), as well as adjustments to share-based compensation expense for shares exchanged in the business combination. We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates that can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company. 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 November 8, 2021, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended September 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 November 8, 2021 – Primerica Reports Third Quarter 2021 Results
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99.2 |
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Primerica, Inc. Supplemental Financial Information – Third 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 |
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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: November 8, 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 |
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PRIMERICA REPORTS THIRD QUARTER 2021 RESULTS
Investment and Savings Products sales increased 52% with ending client asset values at $92 billion
Term Life net premiums grew 12%; adjusted direct premiums grew 13%
Net earnings per diluted share (EPS) of $2.82 remained unchanged; return on stockholders’ equity (ROE) of 21.8%
Diluted adjusted operating EPS of $2.98, up 7%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 24.1%
Declared dividend of $0.47 per share, payable on December 14, 2021
Duluth, GA, November 8, 2021 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended September 30, 2021. Total revenues of $693.2 million increased 22% compared to the third quarter of 2020. Net income attributable to Primerica of $112.4 million and earnings per diluted share of $2.82 remained largely unchanged compared to the same quarter last year. ROE was 21.8% for the period. Results include revenues of $22.9 million and a net loss attributable to Primerica of $4.6 million associated with the acquisition of 80% of e-TeleQuote Insurance, Inc. and subsidiaries, (collectively “e-TeleQuote”) on July 1, 2021. This net loss attributable to Primerica reduced earnings per diluted share by approximately $0.12 for the quarter.
Adjusted operating revenues were $692.5 million, increasing 22% compared to the third quarter of 2020. Adjusted net operating income of $118.7 million and diluted adjusted operating earnings per share of $2.98 both increased 7% compared to the same quarter last year. ROAE was 24.1% for the period. Results reflect revenues of $22.9 million and an adjusted net operating loss of $4.6 million associated with the acquisition of e-TeleQuote. This adjusted net operating loss reduced diluted adjusted operating EPS by approximately $0.12 for the quarter. For a detailed explanation of the accounting implications of the e-TeleQuote acquisition see the paragraph titled “Business Combination Accounting” later in the release. More information regarding non-GAAP measures, including a reconciliation of non-GAAP to GAAP financial measures is included at the end of this release.
1
Third quarter results reflected continued strong momentum in investment and savings product sales with client asset values remaining at record levels. As anticipated, term life issued policies started to normalize toward pre-pandemic levels during the period. Persistency continued to be very favorable, while claims remained elevated versus historic levels due to COVID-19. Senior Health approved policies and related commission revenues were seasonally low in the third quarter, while costs related to licensed agents were high in preparation for the annual Medicare election period that began October 15.
“Primerica continues to adapt to the changing business environment and consumer sentiment,” said Glenn Williams, Chief Executive Officer. “Our Investment and Savings business is experiencing strong growth as we meet clients’ desire to save for their futures. Client demand for life insurance protection is moving closer to pre-pandemic levels. These complementary dynamics of our model are driving strong financial results and making Primerica an attractive business opportunity for entrepreneurs. Our strategic acquisition of e-TeleQuote adds a new dynamic to our business which meets the needs of additional clients, improves the opportunity for our field force and creates upside for stockholders.”
Third Quarter Distribution & Segment Results
Distribution Results |
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Q3 2021 |
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Q3 2020 |
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% Change |
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Life-Licensed Sales Force (1) |
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130,023 |
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136,306 |
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(5 |
)% |
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Recruits |
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91,884 |
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101,861 |
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(10 |
)% |
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New Life-Licensed Representatives |
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9,381 |
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13,138 |
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(29 |
)% |
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Life Insurance Policies Issued |
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75,914 |
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100,199 |
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(24 |
)% |
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Life Productivity (2) |
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0.19 |
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0.25 |
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* |
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ISP Product Sales ($ billions) |
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$ |
2.79 |
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$ |
1.84 |
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52 |
% |
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Average Client Asset Values ($ billions) |
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$ |
92.65 |
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$ |
71.51 |
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30 |
% |
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Senior Health Submitted Policies (3) |
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20,867 |
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- |
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* |
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Senior Health Approved Policies (4) |
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18,276 |
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- |
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* |
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Closed U.S. Mortgage Volume ($ million brokered) |
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$ |
337.6 |
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$ |
160.0 |
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111 |
% |
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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 |
(3) |
Represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier |
(4) |
Represents an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force |
* Not calculated
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Segment Results |
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Q3 2021 |
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Q3 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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$ |
401,451 |
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$ |
357,799 |
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12 |
% |
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Investment and Savings Products |
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233,337 |
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176,337 |
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32 |
% |
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Senior Health |
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22,936 |
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- |
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* |
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Corporate and Other Distributed Products (1) |
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34,745 |
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32,518 |
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7 |
% |
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Total adjusted operating revenues (1) |
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$ |
692,469 |
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$ |
566,654 |
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22 |
% |
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Adjusted Operating Income (Loss) before income taxes: |
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Term Life Insurance |
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$ |
107,589 |
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$ |
105,315 |
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2 |
% |
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Investment and Savings Products |
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69,368 |
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51,372 |
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35 |
% |
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Senior Health |
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(6,608 |
) |
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- |
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* |
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Corporate and Other Distributed Products (1) |
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(13,529 |
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(12,011 |
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13 |
% |
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Total adjusted operating income before income taxes (1) |
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$ |
156,820 |
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$ |
144,676 |
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8 |
% |
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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. |
* Not calculated
Life Insurance Licensed Sales Force
Recruiting activity remained strong versus historical trends with 91,884 individuals joining Primerica during the third quarter. New life licenses continue to lag historical pull-through levels largely due to lingering COVID-related challenges, which the Company is addressing aggressively.
The Company ended the quarter with a total of 130,023 independent life-licensed representatives. As anticipated, the number of COVID-related temporary licenses and licenses with extended renewal dates continued to decline. On September 30, the number of independent life-licensed representatives included approximately 800 of these licenses, down from about 2,400 at the end of the second quarter. The majority of these licenses are expected to terminate by year end.
Term Life Insurance
During the third quarter, the Company issued nearly 76,000 term life insurance policies with productivity at 0.19 policies per life-licensed representatives per month. These metrics reflect a normalization toward pre-pandemic levels, whereas the prior year period reflected peak COVID-related sales.
Revenues of $401.5 million increased 12% year-over-year, driven by 13% growth in adjusted direct premiums. The compounding impact of 18 months of strong sales and policy persistency continues to drive adjusted direct premium growth, adding $12 million to pre-tax income during the quarter, up from $5 million in the prior year period. COVID-related claims remained elevated at $14 million during the quarter, increasing $6 million compared to the third quarter of 2020. The increase was driven by a higher number of deaths in the general population and younger individuals who are more heavily
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represented in the Company’s insured population being impacted. Persistency remained well above pre-pandemic levels, resulting in $11 million lower DAC amortization and $6 million higher benefit reserves in the period for a net increase of $5 million to pre-tax income. The corresponding increase was $14 million in the prior year period when persistency was at an all-time high. The combined impact of these items constrained pre-tax income growth to 2%.
Investment and Savings Products
Total investment product sales during the third quarter were $2.8 billion, a 52% increase year-over-year. Investor confidence and a heightened focus on saving for the future fueled record sales. The Company continues to see solid year-over-year growth across all products, including mutual funds, annuities and managed accounts. Net client inflows of $1.0 billion during the quarter were approximately twice the level of the prior year period. Client asset values ended the quarter at $91.8 billion, an increase of 26% year-over-year, reflecting strong market performance and nearly $4.0 billion of net client inflows over the last twelve months.
Revenues of $233.3 million during the quarter increased 32% compared to the same quarter in 2020, while pre-tax income of $69.4 million increased 35%. Sales-based revenues increased 45%, slightly less than revenue generating sales due to a higher proportion of large trades which have a lower per-sale commission rate. Asset-based revenues increased 31%, in line with the increase in average client asset values. Sales and asset-based commission expenses were largely in line with revenues.
The third quarter is typically a period with lower approved policies as the Medicare Advantage Annual Election Period begins in October. Challenges experienced in the labor market throughout the year created difficulties in recruiting and retaining senior health sales center employees during the quarter. Policies submitted in the third quarter resulted in an estimated 18,276 approved policies for the period. The Company launched its certification process for Primerica representatives and began generating leads for e-TeleQuote agents late in the quarter.
Third quarter revenues were $22.9 million and the adjusted operating loss before taxes attributable to Primerica, including purchase accounting adjustments, was $6.6 million. These results reflect the seasonally low levels of approved policies during the period and elevated agent costs, including training and licensing, as e-TeleQuote prepared for the Annual Election Period.
Corporate and Other Distributed Products
During the third quarter, the segment recorded an adjusted operating loss before taxes of $13.5 million compared to $12.0 million loss in the same period last year. Segment adjusted revenues increased $2.2 million, or 7% year-over-year. The increase was due to $6.0 million growth in sales commissions, including $3.7 million higher commissions from mortgage sales. The increase was partially offset by $3.7 million lower allocated
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net investment income from lower portfolio yields and a higher allocation of net investment income to the Term Life segment to support the growing block of business.
Adjusted operating benefits and expenses increased $3.7 million, or 8% due largely to $2.6 million in mortgage commissions and support costs as well as $0.9 million of commissions related to other third-party products.
The effective tax rate was 24.2% in the third quarter of 2021 compared to 23.5% in the third quarter of 2020. The year-over-year increase in the effective tax rate was primarily due to a higher proportion of earnings coming from our Canadian operations, which incur income taxes at a higher statutory rate than the U.S.
Capital
As of September 30, 2021, invested assets and cash at the holding company was $192 million. Using the new NAIC bond factors approach, which goes into effect for 2021 year-end reporting, Primerica Life Insurance Company's statutory risk-based capital (RBC) ratio was estimated to be about 420% as of September 30, 2021. The Board of Directors has approved a dividend of $0.47 per share, payable on December 14, 2021, to stockholders of record on November 22, 2021.
Business Combination Accounting
The Company accounts for the acquisition of e-TeleQuote as a business combination in accordance with GAAP, which requires most identifiable assets and liabilities acquired in a business combination to be recorded at fair value at the acquisition date subject to certain exceptions such as renewal commissions receivable and deferred income taxes. Accordingly, the Company recognized preliminary balances for the acquired values of assets and liabilities including customer relationship intangibles, renewal commissions receivable and noncontrolling interest as of July 1, 2021. The excess of the fair value of purchase consideration over the acquired values of these identifiable assets and liabilities is recorded as goodwill. Consolidated net income during the current period includes pre-tax amortization of acquired intangibles of $2.9 million and a pre-tax reduction to share-based compensation expense for equity awards exchanged in the business combination of $1.0 million. The $1.0 million reduction to share-based compensation is excluded from adjusted operating results. Refer to the next paragraph for more information regarding 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
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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 e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), as well as adjustments to share-based compensation expense for shares exchanged in the business combination. We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates that can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company. 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 the core ongoing business. These measures have limitations and investors should not consider them in isolation or as a substitute for analysis of the
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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 Tuesday, November 9, 2021 at 10:00 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.
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 regulatory investigations and actions; a significant change in the competitive
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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 https://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
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PRIMERICA, INC. AND SUBSIDIARIES |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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September 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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$ |
2,595,504 |
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$ |
2,464,611 |
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Fixed-maturity security held-to-maturity, at amortized cost |
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1,376,090 |
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1,346,350 |
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Short-term investments available-for-sale, at fair value |
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40,037 |
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- |
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Equity securities, at fair value |
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40,946 |
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38,023 |
|
Trading securities, at fair value |
|
|
26,251 |
|
|
|
16,300 |
|
Policy loans |
|
|
28,079 |
|
|
|
30,199 |
|
Total investments |
|
|
4,106,907 |
|
|
|
3,895,483 |
|
Cash and cash equivalents |
|
|
325,578 |
|
|
|
547,569 |
|
Accrued investment income |
|
|
19,499 |
|
|
|
17,618 |
|
Reinsurance recoverables |
|
|
4,278,322 |
|
|
|
4,273,904 |
|
Deferred policy acquisition costs, net |
|
|
2,877,921 |
|
|
|
2,629,644 |
|
Renewal commissions receivable |
|
|
268,952 |
|
|
|
54,845 |
|
Agent balances, due premiums and other receivables |
|
|
271,626 |
|
|
|
259,448 |
|
Goodwill |
|
|
224,180 |
|
|
|
- |
|
Intangible assets |
|
|
204,550 |
|
|
|
45,275 |
|
Income taxes |
|
|
74,556 |
|
|
|
73,290 |
|
Operating lease right-of-use assets |
|
|
48,943 |
|
|
|
46,567 |
|
Other assets |
|
|
442,495 |
|
|
|
402,122 |
|
Separate account assets |
|
|
2,672,606 |
|
|
|
2,659,520 |
|
Total assets |
|
$ |
15,816,135 |
|
|
$ |
14,905,285 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Future policy benefits |
|
$ |
7,057,599 |
|
|
$ |
6,790,557 |
|
Unearned and advance premiums |
|
|
19,208 |
|
|
|
17,136 |
|
Policy claims and other benefits payable |
|
|
557,125 |
|
|
|
519,711 |
|
Other policyholders' funds |
|
|
478,592 |
|
|
|
447,765 |
|
Notes payable - short term |
|
|
389,702 |
|
|
|
- |
|
Other debt obligations - long term |
|
|
125,000 |
|
|
|
374,415 |
|
Surplus note |
|
|
1,375,559 |
|
|
|
1,345,772 |
|
Income taxes |
|
|
260,264 |
|
|
|
223,496 |
|
Operating lease liabilities |
|
|
55,002 |
|
|
|
52,806 |
|
Other liabilities |
|
|
613,641 |
|
|
|
566,068 |
|
Payable under securities lending |
|
|
105,264 |
|
|
|
72,154 |
|
Separate account liabilities |
|
|
2,672,606 |
|
|
|
2,659,520 |
|
Total liabilities |
|
|
13,709,562 |
|
|
|
13,069,400 |
|
|
|
|
|
|
|
|
|
|
Temporary Stockholders' Equity |
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests in consolidated entities |
|
|
7,631 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Permanent Stockholders' equity |
|
|
|
|
|
|
|
|
Equity attributable to Primerica, Inc.: |
|
|
|
|
|
|
|
|
Common stock |
|
|
395 |
|
|
|
393 |
|
Paid-in capital |
|
|
17,454 |
|
|
|
- |
|
Retained earnings |
|
|
1,988,324 |
|
|
|
1,705,786 |
|
Accumulated other comprehensive income (loss), net of income tax |
|
|
92,769 |
|
|
|
129,706 |
|
Total permanent stockholders' equity |
|
|
2,098,942 |
|
|
|
1,835,885 |
|
Total liabilities and temporary and permanent stockholders' equity |
|
$ |
15,816,135 |
|
|
$ |
14,905,285 |
|
9
PRIMERICA, INC. AND SUBSIDIARIES |
|
|||||||
Condensed Consolidated Statements of Income |
|
|||||||
(Unaudited) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
|
|
(In thousands, except per-share amounts) |
|
|||||
Revenues: |
|
|
|
|
|
|
|
|
Direct premiums |
|
$ |
785,277 |
|
|
$ |
736,606 |
|
Ceded premiums |
|
|
(401,295 |
) |
|
|
(393,716 |
) |
Net premiums |
|
|
383,982 |
|
|
|
342,890 |
|
Commissions and fees |
|
|
269,796 |
|
|
|
185,302 |
|
Net investment income |
|
|
20,000 |
|
|
|
22,953 |
|
Realized investment gains (losses) |
|
|
1,410 |
|
|
|
642 |
|
Other, net |
|
|
18,051 |
|
|
|
16,674 |
|
Total revenues |
|
|
693,239 |
|
|
|
568,461 |
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
Benefits and claims |
|
|
183,425 |
|
|
|
160,166 |
|
Amortization of deferred policy acquisition costs |
|
|
62,214 |
|
|
|
47,491 |
|
Sales commissions |
|
|
129,268 |
|
|
|
91,950 |
|
Insurance expenses |
|
|
51,901 |
|
|
|
46,109 |
|
Insurance commissions |
|
|
8,412 |
|
|
|
9,694 |
|
Contract acquisition costs |
|
|
23,524 |
|
|
|
- |
|
Interest expense |
|
|
7,529 |
|
|
|
7,221 |
|
Other operating expenses |
|
|
79,864 |
|
|
|
59,347 |
|
Total benefits and expenses |
|
|
546,137 |
|
|
|
421,978 |
|
Income before income taxes |
|
|
147,102 |
|
|
|
146,483 |
|
Income taxes |
|
|
35,663 |
|
|
|
34,382 |
|
Net income (loss) |
|
$ |
111,439 |
|
|
$ |
112,101 |
|
Net income (loss) attributable to noncontrolling interests |
|
|
(1,017 |
) |
|
|
- |
|
Net income (loss) attributable to Primerica, Inc. |
|
$ |
112,456 |
|
|
$ |
112,101 |
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
2.83 |
|
|
$ |
2.82 |
|
Diluted earnings per share |
|
$ |
2.82 |
|
|
$ |
2.81 |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
39,561 |
|
|
|
39,588 |
|
Diluted |
|
|
39,679 |
|
|
|
39,710 |
|
10
PRIMERICA, INC. AND SUBSIDIARIES |
|
|||||||||||
Consolidated Adjusted Operating Results Reconciliation |
|
|||||||||||
(Unaudited – in thousands, except per share amounts) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|||
Total revenues |
|
$ |
693,239 |
|
|
$ |
568,461 |
|
|
|
22 |
% |
Less: Realized investment gains (losses) |
|
|
1,410 |
|
|
|
642 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(640 |
) |
|
|
1,165 |
|
|
|
|
|
Adjusted operating revenues |
|
$ |
692,469 |
|
|
$ |
566,654 |
|
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
147,102 |
|
|
$ |
146,483 |
|
|
|
0 |
% |
Less: Realized investment gains (losses) |
|
|
1,410 |
|
|
|
642 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(640 |
) |
|
|
1,165 |
|
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
(10,027 |
) |
|
|
- |
|
|
|
|
|
Less: Equity comp for awards exchanged during acquisition |
|
|
1,004 |
|
|
|
- |
|
|
|
|
|
Less: Noncontrolling interest |
|
|
(1,465 |
) |
|
|
- |
|
|
|
|
|
Adjusted operating income before income taxes |
|
$ |
156,820 |
|
|
$ |
144,676 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
111,439 |
|
|
$ |
112,101 |
|
|
|
(1 |
)% |
Less: Realized investment gains (losses) |
|
|
1,410 |
|
|
|
642 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(640 |
) |
|
|
1,165 |
|
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
(10,027 |
) |
|
|
- |
|
|
|
|
|
Less: Equity comp for awards exchanged during acquisition |
|
|
1,004 |
|
|
|
- |
|
|
|
|
|
Less: Noncontrolling interest |
|
|
(1,465 |
) |
|
|
- |
|
|
|
|
|
Less: Tax impact of preceding items |
|
|
2,449 |
|
|
|
(424 |
) |
|
|
|
|
Adjusted net operating income |
|
$ |
118,708 |
|
|
$ |
110,718 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (1) |
|
$ |
2.82 |
|
|
$ |
2.81 |
|
|
|
0 |
% |
Less: Net after-tax impact of operating adjustments |
|
|
(0.16 |
) |
|
|
0.03 |
|
|
|
|
|
Diluted adjusted operating earnings per share (1) |
|
$ |
2.98 |
|
|
$ |
2.78 |
|
|
|
7 |
% |
(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 September 30, |
|
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|||
Direct premiums |
|
$ |
779,490 |
|
|
$ |
730,273 |
|
|
|
7 |
% |
Less: Premiums ceded to IPO coinsurers |
|
|
241,439 |
|
|
|
254,938 |
|
|
|
|
|
Adjusted direct premiums |
|
|
538,051 |
|
|
|
475,335 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceded premiums |
|
|
(399,835 |
) |
|
|
(392,004 |
) |
|
|
|
|
Less: Premiums ceded to IPO coinsurers |
|
|
(241,439 |
) |
|
|
(254,938 |
) |
|
|
|
|
Other ceded premiums |
|
|
(158,396 |
) |
|
|
(137,066 |
) |
|
|
|
|
Net premiums |
|
$ |
379,655 |
|
|
$ |
338,269 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
SENIOR HEALTH SEGMENT |
||||||||||
Adjusted Operating Results Reconciliation |
||||||||||
(Unaudited – in thousands) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
||
Loss before income taxes |
|
$ |
(8,490 |
) |
|
$ |
- |
|
|
|
Less: e-TeleQuote transaction-related costs |
|
|
(417 |
) |
|
|
- |
|
|
|
Less: Noncontrolling interest |
|
|
(1,465 |
) |
|
|
- |
|
|
|
Adjusted operating loss before taxes |
|
$ |
(6,608 |
) |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT |
|
|||||||||||
Adjusted Operating Results Reconciliation |
|
|||||||||||
(Unaudited – in thousands) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|||
Total revenues |
|
$ |
35,515 |
|
|
$ |
34,325 |
|
|
|
3 |
% |
Less: Realized investment gains (losses) |
|
|
1,410 |
|
|
|
642 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(640 |
) |
|
|
1,165 |
|
|
|
|
|
Adjusted operating revenues |
|
$ |
34,745 |
|
|
$ |
32,518 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
$ |
(21,365 |
) |
|
$ |
(10,204 |
) |
|
|
109 |
% |
Less: Realized investment gains (losses) |
|
|
1,410 |
|
|
|
642 |
|
|
|
|
|
Less: 10% deposit asset MTM included in NII |
|
|
(640 |
) |
|
|
1,165 |
|
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
(9,610 |
) |
|
|
- |
|
|
|
|
|
Less: Equity comp for awards exchanged during acquisition |
|
|
1,004 |
|
|
|
- |
|
|
|
|
|
Adjusted operating loss before income taxes |
|
$ |
(13,529 |
) |
|
$ |
(12,011 |
) |
|
|
13 |
% |
PRIMERICA, INC. AND SUBSIDIARIES |
|
|||||||||||
Adjusted Stockholders' Equity Reconciliation |
|
|||||||||||
(Unaudited – in thousands) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2021 |
|
|
December 31, 2020 |
|
|
% Change |
|
|||
Stockholders' equity |
|
$ |
2,098,942 |
|
|
$ |
1,835,885 |
|
|
|
14 |
% |
Less: Unrealized net investment gains (losses) recorded in stockholders' equity, net of income tax |
|
|
84,701 |
|
|
|
128,128 |
|
|
|
|
|
Adjusted stockholders' equity |
|
$ |
2,014,241 |
|
|
$ |
1,707,757 |
|
|
|
18 |
% |
12
Exhibit 99.2
Supplemental Financial Information
Third 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 |
7-8 |
Segment operating results |
|
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 |
Senior Health segment - financial results, financial analysis, and key statistics |
13 |
Corporate & Other Distributed Products segment - financial results |
14 |
Investment portfolio |
15-17 |
Five-year historical key statistics |
18 |
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 |
Third Quarter 2021
This document is a financial supplement to our third 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, transaction-related expenses associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), as well as adjustments to share-based compensation expense for shares exchanged in the business combination. 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 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. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates they can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company. |
|
|
• |
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 |
|
Sep 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 |
|
$ |
3,056,395 |
|
|||||
|
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 |
|
|
1,376,090 |
|
|||||
|
|
|
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 |
|
|
4,432,485 |
|
|||
|
Due from reinsurers |
|
4,169,823 |
|
|
4,132,897 |
|
|
4,217,129 |
|
|
4,229,088 |
|
|
4,273,904 |
|
|
4,345,483 |
|
|
4,239,510 |
|
|
4,278,322 |
|
|||||
|
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 |
|
|
2,877,921 |
|
|||||
|
Goodwill |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
224,180 |
|
|||||
|
Other assets |
|
792,129 |
|
|
799,123 |
|
|
851,660 |
|
|
885,083 |
|
|
899,165 |
|
|
921,236 |
|
|
925,621 |
|
|
1,330,620 |
|
|||||
|
Separate account assets |
|
2,485,745 |
|
|
2,128,924 |
|
|
2,377,654 |
|
|
2,468,328 |
|
|
2,659,520 |
|
|
2,638,901 |
|
|
2,745,827 |
|
|
2,672,606 |
|
|||||
|
|
|
Total assets |
$ |
13,688,532 |
|
$ |
13,270,912 |
|
$ |
13,964,550 |
|
$ |
14,300,532 |
|
$ |
14,905,286 |
|
$ |
15,113,858 |
|
$ |
15,519,871 |
|
$ |
15,816,135 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
7,057,599 |
|
|||||
|
Other policy liabilities |
|
744,087 |
|
|
737,435 |
|
|
855,083 |
|
|
911,454 |
|
|
984,612 |
|
|
1,020,349 |
|
|
977,373 |
|
|
1,054,925 |
|
|||||
|
Income taxes |
|
209,221 |
|
|
208,357 |
|
|
265,369 |
|
|
216,639 |
|
|
223,496 |
|
|
235,233 |
|
|
204,197 |
|
|
260,264 |
|
|||||
|
Other liabilities |
|
563,931 |
|
|
554,014 |
|
|
574,426 |
|
|
573,254 |
|
|
618,874 |
|
|
633,719 |
|
|
641,025 |
|
|
668,643 |
|
|||||
|
Debt obligations |
|
374,037 |
|
|
374,131 |
|
|
374,226 |
|
|
374,320 |
|
|
374,415 |
|
|
374,511 |
|
|
499,606 |
|
|
514,702 |
|
|||||
|
Surplus note |
|
1,183,728 |
|
|
1,236,644 |
|
|
1,277,970 |
|
|
1,323,146 |
|
|
1,345,772 |
|
|
1,361,648 |
|
|
1,368,194 |
|
|
1,375,559 |
|
|||||
|
Payable under securities lending |
|
28,723 |
|
|
28,896 |
|
|
29,973 |
|
|
48,883 |
|
|
72,154 |
|
|
87,190 |
|
|
80,613 |
|
|
105,264 |
|
|||||
|
Separate account liabilities |
|
2,485,745 |
|
|
2,128,924 |
|
|
2,377,654 |
|
|
2,468,328 |
|
|
2,659,520 |
|
|
2,638,901 |
|
|
2,745,827 |
|
|
2,672,606 |
|
|||||
|
|
|
Total liabilities |
|
12,036,041 |
|
|
11,740,798 |
|
|
12,321,870 |
|
|
12,580,086 |
|
|
13,069,401 |
|
|
13,236,666 |
|
|
13,501,107 |
|
|
13,709,563 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7,631 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Common stock ($0.01 par value) (1) |
|
412 |
|
|
405 |
|
|
397 |
|
|
394 |
|
|
393 |
|
|
394 |
|
|
394 |
|
|
395 |
|
|||||
|
Paid-in capital |
|
(0 |
) |
|
(0 |
) |
|
(0 |
) |
|
(0 |
) |
|
(0 |
) |
|
8,138 |
|
|
12,880 |
|
|
17,454 |
|
|||||
|
Retained earnings |
|
1,593,281 |
|
|
1,565,803 |
|
|
1,569,689 |
|
|
1,629,114 |
|
|
1,705,786 |
|
|
1,785,037 |
|
|
1,894,539 |
|
|
1,988,324 |
|
|||||
|
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 |
|
|
84,701 |
|
||||
|
|
Cumulative translation adjustment |
|
(5,765 |
) |
|
(34,776 |
) |
|
(21,132 |
) |
|
(14,820 |
) |
|
1,578 |
|
|
6,570 |
|
|
13,960 |
|
|
8,068 |
|
||||
|
|
|
Total stockholders’ equity (2) |
|
1,652,492 |
|
|
1,530,114 |
|
|
1,642,680 |
|
|
1,720,446 |
|
|
1,835,885 |
|
|
1,877,192 |
|
|
2,018,764 |
|
|
2,098,941 |
|
|||
|
|
|
Total liabilities and stockholders' equity |
$ |
13,688,532 |
|
$ |
13,270,912 |
|
$ |
13,964,550 |
|
$ |
14,300,532 |
|
$ |
14,905,286 |
|
$ |
15,113,858 |
|
$ |
15,519,871 |
|
$ |
15,816,135 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
2,098,941 |
|
||||||
|
Less: Net unrealized gains (losses) |
|
64,564 |
|
|
(1,318 |
) |
|
93,726 |
|
|
105,758 |
|
|
128,128 |
|
|
77,053 |
|
|
96,990 |
|
|
84,701 |
|
|||||
|
|
|
Adjusted stockholders’ equity |
$ |
1,587,928 |
|
$ |
1,531,431 |
|
$ |
1,548,954 |
|
$ |
1,614,688 |
|
$ |
1,707,757 |
|
$ |
1,800,139 |
|
$ |
1,921,774 |
|
$ |
2,014,241 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
1,921,774 |
|
||||||
|
Net Income attributable to Primerica, Inc. |
|
93,557 |
|
|
72,469 |
|
|
101,510 |
|
|
112,101 |
|
|
100,084 |
|
|
97,872 |
|
|
128,162 |
|
|
112,456 |
|
|||||
|
Shareholder dividends |
|
(14,162 |
) |
|
(16,530 |
) |
|
(16,083 |
) |
|
(15,882 |
) |
|
(15,851 |
) |
|
(18,620 |
) |
|
(18,660 |
) |
|
(18,671 |
) |
|||||
|
Retirement of shares and warrants |
|
(44,137 |
) |
|
(95,676 |
) |
|
(86,513 |
) |
|
(41,556 |
) |
|
(13,426 |
) |
|
(5,966 |
) |
|
(521 |
) |
|
(88 |
) |
|||||
|
Net foreign currency translation adjustment |
|
6,500 |
|
|
(29,011 |
) |
|
13,645 |
|
|
6,312 |
|
|
16,398 |
|
|
4,992 |
|
|
7,390 |
|
|
(5,892 |
) |
|||||
|
Other, net |
|
4,734 |
|
|
12,252 |
|
|
4,964 |
|
|
4,759 |
|
|
5,864 |
|
|
14,105 |
|
|
5,264 |
|
|
4,662 |
|
|||||
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 |
|
$ |
2,014,241 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
2,808,347 |
|
||||||
|
General expenses deferred |
|
8,608 |
|
|
9,726 |
|
|
9,205 |
|
|
9,702 |
|
|
9,510 |
|
|
10,558 |
|
|
10,055 |
|
|
9,248 |
|
|||||
|
Commission costs deferred |
|
97,538 |
|
|
104,793 |
|
|
120,967 |
|
|
130,719 |
|
|
128,084 |
|
|
134,188 |
|
|
136,085 |
|
|
129,287 |
|
|||||
|
Amortization of deferred policy acquisition costs |
|
(67,279 |
) |
|
(70,311 |
) |
|
(53,177 |
) |
|
(47,491 |
) |
|
(53,342 |
) |
|
(66,105 |
) |
|
(54,286 |
) |
|
(62,214 |
) |
|||||
|
Foreign currency impact and other, net |
|
5,322 |
|
|
(23,302 |
) |
|
10,812 |
|
|
5,017 |
|
|
12,984 |
|
|
3,884 |
|
|
4,324 |
|
|
(6,748 |
) |
|||||
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 |
|
$ |
2,877,921 |
|
(1) |
Outstanding common shares exclude restricted stock units. |
(2) |
Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity |
4 of 16
Financial Results and Other Statistical Data |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands, except per-share data) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 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 |
|
|
39,560,786 |
|
|
(27,192 |
) |
|
-0.1 |
% |
|
40,281,146 |
|
|
39,516,193 |
|
|
(764,953 |
) |
-1.9% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Primerica, Inc. |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
112,456 |
|
$ |
355 |
|
|
0.3 |
% |
$ |
286,080 |
|
$ |
338,489 |
|
$ |
52,409 |
|
18.3% |
|
||||
|
Less income attributable to unvested participating securities |
|
(310 |
) |
|
(437 |
) |
|
(493 |
) |
|
(433 |
) |
|
(417 |
) |
|
(525 |
) |
|
(458 |
) |
|
35 |
|
|
7.0 |
% |
|
(1,239 |
) |
|
(1,403 |
) |
|
(164 |
) |
-13.3% |
|
||||
|
|
Net income used in computing basic EPS |
$ |
72,159 |
|
$ |
101,073 |
|
$ |
111,608 |
|
$ |
99,651 |
|
$ |
97,455 |
|
$ |
127,636 |
|
$ |
111,997 |
|
$ |
390 |
|
|
0.3 |
% |
$ |
284,841 |
|
$ |
337,086 |
|
$ |
52,245 |
|
18.3% |
|
|||
|
|
Basic earnings per share |
$ |
1.75 |
|
$ |
2.52 |
|
$ |
2.82 |
|
$ |
2.53 |
|
$ |
2.47 |
|
$ |
3.23 |
|
$ |
2.83 |
|
$ |
0.01 |
|
|
0.4 |
% |
$ |
7.07 |
|
$ |
8.53 |
|
$ |
1.46 |
|
20.6% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income |
$ |
85,047 |
|
$ |
98,480 |
|
$ |
110,718 |
|
$ |
97,339 |
|
$ |
97,129 |
|
$ |
129,355 |
|
$ |
118,708 |
|
$ |
7,990 |
|
|
7.2 |
% |
$ |
294,245 |
|
$ |
345,193 |
|
$ |
50,948 |
|
17.3% |
|
||||
|
Less operating income attributable to unvested participating securities |
|
(364 |
) |
|
(424 |
) |
|
(487 |
) |
|
(421 |
) |
|
(414 |
) |
|
(530 |
) |
|
(484 |
) |
|
3 |
|
|
0.6 |
% |
|
(1,274 |
) |
|
(1,431 |
) |
|
(157 |
) |
-12.3% |
|
||||
|
|
Adjusted net operating income used in computing basic operating EPS |
$ |
84,682 |
|
$ |
98,056 |
|
$ |
110,231 |
|
$ |
96,918 |
|
$ |
96,715 |
|
$ |
128,825 |
|
$ |
118,224 |
|
$ |
7,993 |
|
|
7.3 |
% |
$ |
292,971 |
|
$ |
343,762 |
|
$ |
50,791 |
|
17.3% |
|
|||
|
|
Basic adjusted operating income per share |
$ |
2.06 |
|
$ |
2.44 |
|
$ |
2.78 |
|
$ |
2.46 |
|
$ |
2.45 |
|
$ |
3.26 |
|
$ |
2.99 |
|
$ |
0.20 |
|
|
7.3 |
% |
$ |
7.27 |
|
$ |
8.70 |
|
$ |
1.43 |
|
19.6% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
39,560,786 |
|
|
(27,192 |
) |
|
-0.1 |
% |
|
40,281,146 |
|
|
39,516,193 |
|
|
(764,953 |
) |
-1.9% |
|
||||
|
Dilutive impact of contingently issuable shares |
|
107,361 |
|
|
114,090 |
|
|
122,097 |
|
|
133,544 |
|
|
124,505 |
|
|
121,595 |
|
|
117,923 |
|
|
(4,174 |
) |
|
-3.4 |
% |
|
114,516 |
|
|
121,341 |
|
|
6,825 |
|
6.0% |
|
||||
|
|
Shares used to calculate diluted EPS |
|
41,238,561 |
|
|
40,245,967 |
|
|
39,710,075 |
|
|
39,554,172 |
|
|
39,580,453 |
|
|
39,652,286 |
|
|
39,678,709 |
|
|
(31,366 |
) |
|
-0.1 |
% |
|
40,395,662 |
|
|
39,637,534 |
|
|
(758,128 |
) |
-1.9% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income attributable to Primerica, Inc. |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
112,456 |
|
$ |
355 |
|
|
0.3 |
% |
$ |
286,080 |
|
$ |
338,489 |
|
$ |
52,409 |
|
18.3% |
|
||||
|
Less income attributable to unvested participating securities |
|
(310 |
) |
|
(436 |
) |
|
(492 |
) |
|
(431 |
) |
|
(416 |
) |
|
(524 |
) |
|
(457 |
) |
|
35 |
|
|
7.0 |
% |
|
(1,236 |
) |
|
(1,399 |
) |
|
(164 |
) |
-13.2% |
|
||||
|
|
Net income used in computing diluted EPS |
$ |
72,159 |
|
$ |
101,074 |
|
$ |
111,609 |
|
$ |
99,652 |
|
$ |
97,456 |
|
$ |
127,638 |
|
$ |
111,998 |
|
$ |
390 |
|
|
0.3 |
% |
$ |
284,844 |
|
$ |
337,090 |
|
$ |
52,245 |
|
18.3% |
|
|||
|
|
Diluted earnings per share |
$ |
1.75 |
|
$ |
2.51 |
|
$ |
2.81 |
|
$ |
2.52 |
|
$ |
2.46 |
|
$ |
3.22 |
|
$ |
2.82 |
|
$ |
0.01 |
|
|
0.4 |
% |
$ |
7.05 |
|
$ |
8.50 |
|
$ |
1.45 |
|
20.6% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income |
$ |
85,047 |
|
$ |
98,480 |
|
$ |
110,718 |
|
$ |
97,339 |
|
$ |
97,129 |
|
$ |
129,355 |
|
$ |
118,708 |
|
$ |
7,990 |
|
|
7.2 |
% |
$ |
294,245 |
|
$ |
345,193 |
|
$ |
50,948 |
|
17.3% |
|
||||
|
Less operating income attributable to unvested participating securities |
|
(364 |
) |
|
(423 |
) |
|
(486 |
) |
|
(420 |
) |
|
(413 |
) |
|
(529 |
) |
|
(483 |
) |
|
3 |
|
|
0.6 |
% |
|
(1,271 |
) |
|
(1,427 |
) |
|
(156 |
) |
-12.3% |
|
||||
|
|
Adjusted net operating income used in computing diluted operating EPS |
$ |
84,683 |
|
$ |
98,057 |
|
$ |
110,232 |
|
$ |
96,919 |
|
$ |
96,717 |
|
$ |
128,827 |
|
$ |
118,225 |
|
$ |
7,993 |
|
|
7.3 |
% |
$ |
292,974 |
|
$ |
343,766 |
|
$ |
50,791 |
|
17.3% |
|
|||
|
|
Diluted adjusted operating income per share |
$ |
2.05 |
|
$ |
2.44 |
|
$ |
2.78 |
|
$ |
2.45 |
|
$ |
2.44 |
|
$ |
3.25 |
|
$ |
2.98 |
|
$ |
0.20 |
|
|
7.3 |
% |
$ |
7.25 |
|
$ |
8.67 |
|
$ |
1.42 |
|
19.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
|
|
|
|
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 2021 |
|
$/# Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$/# Change |
|
% Change |
|
|||||||||||||
Annualized Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Average stockholders' equity (1) |
$ |
1,591,303 |
|
$ |
1,586,397 |
|
$ |
1,681,563 |
|
$ |
1,778,166 |
|
$ |
1,856,539 |
|
$ |
1,947,978 |
|
$ |
2,058,852 |
|
$ |
377,289 |
|
|
22.4 |
% |
$ |
1,619,754 |
|
$ |
1,954,456 |
|
$ |
334,702 |
|
|
20.7 |
% |
|||
|
Average adjusted stockholders' equity (1) |
$ |
1,559,680 |
|
$ |
1,540,193 |
|
$ |
1,581,821 |
|
$ |
1,661,222 |
|
$ |
1,753,948 |
|
$ |
1,860,956 |
|
$ |
1,968,007 |
|
$ |
386,186 |
|
|
24.4 |
% |
$ |
1,560,564 |
|
$ |
1,860,971 |
|
$ |
300,406 |
|
|
19.2 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Primerica, Inc. return on stockholders' equity |
|
18.2 |
% |
|
25.6 |
% |
|
26.7 |
% |
|
22.5 |
% |
|
21.1 |
% |
|
26.3 |
% |
|
21.8 |
% |
|
-4.8 |
% |
nm |
|
|
23.5 |
% |
|
23.1 |
% |
|
-0.5 |
% |
nm |
|
|||||
|
Net income attributable to Primerica, Inc. return on adjusted stockholders' equity |
|
18.6 |
% |
|
26.4 |
% |
|
28.3 |
% |
|
24.1 |
% |
|
22.3 |
% |
|
27.5 |
% |
|
22.9 |
% |
|
-5.5 |
% |
nm |
|
|
24.4 |
% |
|
24.3 |
% |
|
-0.2 |
% |
nm |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income return on adjusted stockholders' equity |
|
21.8 |
% |
|
25.6 |
% |
|
28.0 |
% |
|
23.4 |
% |
|
22.2 |
% |
|
27.8 |
% |
|
24.1 |
% |
|
-3.9 |
% |
nm |
|
|
25.1 |
% |
|
24.7 |
% |
|
-0.4 |
% |
nm |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Structure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Debt-to-capital (2) |
|
19.6 |
% |
|
18.6 |
% |
|
17.9 |
% |
|
16.9 |
% |
|
16.6 |
% |
|
19.8 |
% |
|
19.7 |
% |
|
1.8 |
% |
nm |
|
|
17.9 |
% |
|
19.7 |
% |
|
1.8 |
% |
nm |
|
|||||
|
Debt-to-capital, excluding AOCI (2) |
|
19.3 |
% |
|
19.2 |
% |
|
18.7 |
% |
|
18.0 |
% |
|
17.3 |
% |
|
20.8 |
% |
|
20.4 |
% |
|
1.7 |
% |
nm |
|
|
18.7 |
% |
|
20.4 |
% |
|
1.7 |
% |
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 |
|
2.1 |
x |
|
(0.3 |
x) |
nm |
|
|
2.4 |
x |
|
2.1 |
x |
|
(0.3 |
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 |
|
2.2 |
x |
|
(0.4 |
x) |
nm |
|
|
2.6 |
x |
|
2.2 |
x |
|
(0.4 |
x) |
nm |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Share count, end of period (3) |
|
40,459,767 |
|
|
39,667,002 |
|
|
39,374,259 |
|
|
39,305,902 |
|
|
39,414,085 |
|
|
39,443,561 |
|
|
39,470,748 |
|
|
96,489 |
|
|
0.2 |
% |
|
39,374,259 |
|
|
39,470,748 |
|
|
96,489 |
|
|
0.2 |
% |
|||
|
Adjusted stockholders' equity per share |
$ |
37.85 |
|
$ |
39.05 |
|
$ |
41.01 |
|
$ |
43.45 |
|
$ |
45.67 |
|
$ |
48.72 |
|
$ |
51.03 |
|
$ |
10.02 |
|
|
24.4 |
% |
$ |
41.01 |
|
$ |
51.03 |
|
$ |
10.02 |
|
|
24.4 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Strength Ratings - Primerica Life Insurance Co |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Moody's |
A1 |
|
A1 |
|
A1 |
|
A1 |
|
A1 |
|
A1 |
|
A1 |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
||||||||||||||||
|
S&P |
AA- |
|
AA- |
|
AA- |
|
AA- |
|
AA- |
|
AA- |
|
AA- |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
||||||||||||||||
|
A.M. Best |
A+ |
|
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 |
|
Baa1 |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
||||||||||||||||
|
S&P |
A- |
|
A- |
|
A- |
|
A- |
|
A- |
|
A- |
|
A- |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
||||||||||||||||
|
A.M. Best |
a- |
|
a- |
|
a- |
|
a- |
|
a- |
|
a- |
|
a- |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
(1) |
Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity |
(2) |
Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable. |
(3) |
Share count reflects outstanding common shares, but excludes restricted stock units (RSUs). |
5 of 16
Statements of Income |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 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 |
|
$ |
296,622 |
|
$ |
48,672 |
|
|
6.6 |
% |
$ |
2,156,331 |
|
$ |
2,327,804 |
|
$ |
171,473 |
|
|
8.0 |
% |
|||||
|
Ceded premiums |
|
(386,825 |
) |
|
(402,549 |
) |
|
(393,716 |
) |
|
(397,676 |
) |
|
(395,973 |
) |
|
(413,850 |
) |
|
(168,501 |
) |
|
(7,579 |
) |
|
-1.9 |
% |
|
(1,183,090 |
) |
|
(1,211,117 |
) |
|
(28,027 |
) |
|
-2.4 |
% |
|||||
|
|
Net premiums |
|
315,813 |
|
|
314,539 |
|
|
342,890 |
|
|
353,142 |
|
|
366,254 |
|
|
366,450 |
|
|
128,121 |
|
|
41,093 |
|
|
12.0 |
% |
|
973,241 |
|
|
1,116,687 |
|
|
143,446 |
|
|
14.7 |
% |
||||
|
Net investment income |
|
15,420 |
|
|
22,710 |
|
|
22,953 |
|
|
22,731 |
|
|
20,052 |
|
|
20,535 |
|
|
834 |
|
|
(2,953 |
) |
|
-12.9 |
% |
|
61,083 |
|
|
60,588 |
|
|
(495 |
) |
|
-0.8 |
% |
|||||
|
Commissions and fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Sales-based (1) |
|
80,891 |
|
|
62,812 |
|
|
65,600 |
|
|
75,347 |
|
|
98,112 |
|
|
104,716 |
|
|
27,297 |
|
|
29,629 |
|
|
45.2 |
% |
|
209,304 |
|
|
298,057 |
|
|
88,753 |
|
|
42.4 |
% |
||||
|
|
Asset-based (2) |
|
81,395 |
|
|
78,146 |
|
|
86,695 |
|
|
93,669 |
|
|
101,241 |
|
|
108,490 |
|
|
12,217 |
|
|
26,863 |
|
|
31.0 |
% |
|
246,235 |
|
|
323,288 |
|
|
77,053 |
|
|
31.3 |
% |
||||
|
|
Account-based (3) |
|
20,204 |
|
|
20,478 |
|
|
21,008 |
|
|
21,351 |
|
|
21,120 |
|
|
21,848 |
|
|
(260 |
) |
|
448 |
|
|
2.1 |
% |
|
61,690 |
|
|
64,424 |
|
|
2,734 |
|
|
4.4 |
% |
||||
|
|
Other commissions and fees |
|
7,579 |
|
|
10,352 |
|
|
11,999 |
|
|
13,746 |
|
|
13,571 |
|
|
15,635 |
|
|
3,636 |
|
|
27,555 |
|
nm |
|
|
29,930 |
|
|
68,759 |
|
|
38,829 |
|
|
129.7 |
% |
|||||
|
Realized investment (losses) gains |
|
(10,030 |
) |
|
1,742 |
|
|
642 |
|
|
2,650 |
|
|
1,766 |
|
|
701 |
|
|
(205 |
) |
|
768 |
|
|
119.5 |
% |
|
(7,645 |
) |
|
3,876 |
|
|
11,522 |
|
nm |
|
||||||
|
Other, net |
|
13,665 |
|
|
15,036 |
|
|
16,674 |
|
|
15,695 |
|
|
15,595 |
|
|
16,313 |
|
|
10,903 |
|
|
1,377 |
|
|
8.3 |
% |
|
45,375 |
|
|
49,958 |
|
|
4,584 |
|
|
10.1 |
% |
|||||
|
Total revenues |
|
524,936 |
|
|
525,815 |
|
|
568,460 |
|
|
598,330 |
|
|
637,711 |
|
|
654,687 |
|
|
182,544 |
|
|
124,780 |
|
|
22.0 |
% |
|
1,619,211 |
|
|
1,985,638 |
|
|
366,427 |
|
|
22.6 |
% |
|||||
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Benefits and claims |
|
134,813 |
|
|
139,646 |
|
|
160,166 |
|
|
180,945 |
|
|
183,789 |
|
|
168,347 |
|
|
183,425 |
|
|
23,259 |
|
|
14.5 |
% |
|
434,625 |
|
|
535,561 |
|
|
100,937 |
|
|
23.2 |
% |
|||||
|
Amortization of DAC |
|
70,311 |
|
|
53,177 |
|
|
47,491 |
|
|
53,342 |
|
|
66,105 |
|
|
54,286 |
|
|
62,214 |
|
|
14,723 |
|
|
31.0 |
% |
|
170,979 |
|
|
182,604 |
|
|
11,625 |
|
|
6.8 |
% |
|||||
|
Insurance commissions |
|
6,844 |
|
|
6,333 |
|
|
9,694 |
|
|
9,263 |
|
|
8,740 |
|
|
8,838 |
|
|
8,412 |
|
|
(1,281 |
) |
|
-13.2 |
% |
|
22,871 |
|
|
25,990 |
|
|
3,119 |
|
|
13.6 |
% |
|||||
|
Insurance expenses |
|
48,709 |
|
|
43,753 |
|
|
46,109 |
|
|
49,546 |
|
|
48,766 |
|
|
48,579 |
|
|
51,901 |
|
|
5,792 |
|
|
12.6 |
% |
|
138,571 |
|
|
149,246 |
|
|
10,674 |
|
|
7.7 |
% |
|||||
|
Sales commissions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Sales-based (1) |
|
56,561 |
|
|
44,834 |
|
|
46,821 |
|
|
52,931 |
|
|
68,594 |
|
|
73,629 |
|
|
67,745 |
|
|
20,924 |
|
|
44.7 |
% |
|
148,217 |
|
|
209,969 |
|
|
61,752 |
|
|
41.7 |
% |
||||
|
|
Asset-based (2) |
|
36,323 |
|
|
35,673 |
|
|
39,349 |
|
|
43,227 |
|
|
46,866 |
|
|
50,488 |
|
|
53,233 |
|
|
13,884 |
|
|
35.3 |
% |
|
111,345 |
|
|
150,587 |
|
|
39,243 |
|
|
35.2 |
% |
||||
|
|
Other sales commissions |
|
3,723 |
|
|
4,985 |
|
|
5,779 |
|
|
6,430 |
|
|
6,434 |
|
|
7,185 |
|
|
8,290 |
|
|
2,510 |
|
|
43.4 |
% |
|
14,487 |
|
|
21,908 |
|
|
7,421 |
|
|
51.2 |
% |
||||
|
Interest expense |
|
7,192 |
|
|
7,200 |
|
|
7,221 |
|
|
7,225 |
|
|
7,145 |
|
|
7,141 |
|
|
7,529 |
|
|
307 |
|
|
4.3 |
% |
|
21,614 |
|
|
21,814 |
|
|
201 |
|
|
0.9 |
% |
|||||
|
Contract acquistion costs (4) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
23,524 |
|
|
23,524 |
|
|
#DIV/0 |
! |
|
— |
|
|
23,524 |
|
|
23,524 |
|
|
#DIV/0 |
! |
|||||
|
Other operating expenses |
|
65,914 |
|
|
56,152 |
|
|
59,348 |
|
|
63,781 |
|
|
72,964 |
|
|
66,730 |
|
|
79,866 |
|
|
20,518 |
|
|
34.6 |
% |
|
181,414 |
|
|
219,559 |
|
|
38,145 |
|
|
21.0 |
% |
|||||
|
Total benefits and expenses |
|
430,391 |
|
|
391,753 |
|
|
421,978 |
|
|
466,690 |
|
|
509,403 |
|
|
485,222 |
|
|
546,138 |
|
|
124,160 |
|
|
29.4 |
% |
|
1,244,122 |
|
|
1,540,763 |
|
|
296,642 |
|
|
23.8 |
% |
|||||
|
Income before income taxes |
|
94,546 |
|
|
134,062 |
|
|
146,482 |
|
|
131,640 |
|
|
128,308 |
|
|
169,465 |
|
|
147,102 |
|
|
619 |
|
|
0.4 |
% |
|
375,090 |
|
|
444,875 |
|
|
69,785 |
|
|
18.6 |
% |
|||||
|
|
Income taxes |
|
22,077 |
|
|
32,552 |
|
|
34,382 |
|
|
31,556 |
|
|
30,437 |
|
|
41,304 |
|
|
35,663 |
|
|
1,281 |
|
|
3.7 |
% |
|
89,010 |
|
|
107,403 |
|
|
18,393 |
|
|
20.7 |
% |
||||
|
Net income |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
111,439 |
|
$ |
(662 |
) |
|
-0.6 |
% |
$ |
286,080 |
|
$ |
337,472 |
|
$ |
51,392 |
|
|
18.0 |
% |
|||||
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,017 |
) |
|
(1,017 |
) |
|
#DIV/0 |
! |
|
— |
|
|
(1,017 |
) |
|
(1,017 |
) |
|
#DIV/0 |
! |
|||||
|
|
Net Income attributable to Primerica, Inc. |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
112,456 |
|
$ |
355 |
|
|
0.3 |
% |
$ |
286,080 |
|
$ |
338,489 |
|
$ |
52,409 |
|
|
18.3 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Term Life |
$ |
82,892 |
|
$ |
94,903 |
|
$ |
105,316 |
|
$ |
89,440 |
|
$ |
88,236 |
|
$ |
116,778 |
|
$ |
107,589 |
|
$ |
2,273 |
|
|
2.2 |
% |
$ |
283,111 |
|
$ |
312,602 |
|
$ |
29,491 |
|
|
10.4 |
% |
||||||
Investment & Savings Products |
|
47,700 |
|
|
46,859 |
|
|
51,372 |
|
|
56,713 |
|
|
63,363 |
|
|
71,154 |
|
|
69,369 |
|
|
17,997 |
|
|
35.0 |
% |
|
145,931 |
|
|
203,886 |
|
|
57,954 |
|
|
39.7 |
% |
||||||
Senior Health |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8,489 |
) |
|
(8,489 |
) |
|
#DIV/0 |
! |
|
— |
|
|
(8,489 |
) |
|
(8,489 |
) |
|
#DIV/0 |
! |
||||||
Corporate & Other Distributed Products |
|
(36,046 |
) |
|
(7,700 |
) |
|
(10,206 |
) |
|
(14,514 |
) |
|
(23,290 |
) |
|
(18,467 |
) |
|
(21,367 |
) |
|
(11,161 |
) |
|
-109.4 |
% |
|
(53,952 |
) |
|
(63,124 |
) |
|
(9,172 |
) |
|
-17.0 |
% |
||||||
|
Income before income taxes |
$ |
94,546 |
|
$ |
134,062 |
|
$ |
146,482 |
|
$ |
131,640 |
|
$ |
128,308 |
|
$ |
169,465 |
|
$ |
147,102 |
|
$ |
619 |
|
|
0.4 |
% |
$ |
375,090 |
|
$ |
444,875 |
|
$ |
69,785 |
|
|
18.6 |
% |
(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. |
(4) |
Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire Senior Health product leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs |
6 of 16
Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 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 |
|
$ |
779,490 |
|
$ |
49,217 |
|
|
6.7 |
% |
$ |
2,138,024 |
|
$ |
2,310,504 |
|
$ |
172,479 |
|
|
8.1 |
% |
|||||
|
Less: Premiums ceded to IPO Coinsurers |
|
260,076 |
|
|
257,529 |
|
|
254,938 |
|
|
253,039 |
|
|
249,944 |
|
|
246,874 |
|
|
241,439 |
|
|
(13,500 |
) |
|
-5.3 |
% |
|
772,543 |
|
|
738,257 |
|
|
(34,286 |
) |
|
-4.4 |
% |
|||||
|
Term Life adjusted direct premiums |
$ |
436,488 |
|
$ |
453,659 |
|
$ |
475,335 |
|
$ |
492,520 |
|
$ |
506,570 |
|
$ |
527,626 |
|
$ |
538,051 |
|
$ |
62,716 |
|
|
13.2 |
% |
$ |
1,365,482 |
|
$ |
1,572,247 |
|
$ |
206,765 |
|
|
15.1 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
$ |
(399,835 |
) |
$ |
(7,831 |
) |
|
-2.0 |
% |
$ |
(1,178,155 |
) |
$ |
(1,206,413 |
) |
$ |
(28,259 |
) |
|
-2.4 |
% |
|||||
|
Less: Premiums ceded to IPO Coinsurers |
|
(260,076 |
) |
|
(257,529 |
) |
|
(254,938 |
) |
|
(253,039 |
) |
|
(249,944 |
) |
|
(246,874 |
) |
|
(241,439 |
) |
|
13,500 |
|
|
5.3 |
% |
|
(772,543 |
) |
|
(738,257 |
) |
|
34,286 |
|
|
4.4 |
% |
|||||
|
Term Life other ceded premiums |
$ |
(125,156 |
) |
$ |
(143,390 |
) |
$ |
(137,066 |
) |
$ |
(142,728 |
) |
$ |
(144,606 |
) |
$ |
(165,154 |
) |
$ |
(158,397 |
) |
$ |
(21,331 |
) |
|
-15.6 |
% |
$ |
(405,612 |
) |
$ |
(468,156 |
) |
$ |
(62,545 |
) |
|
-15.4 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
20,000 |
|
$ |
(2,953 |
) |
|
-12.9 |
% |
$ |
61,083 |
|
$ |
60,588 |
|
$ |
(495 |
) |
|
-0.8 |
% |
|||||
|
Less: MTM investment adjustments |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
|
(640 |
) |
nm |
|
nm |
|
|
(2,956 |
) |
|
(1,603 |
) |
nm |
|
nm |
|
|||||||||
|
Adjusted net investment income |
$ |
21,799 |
|
$ |
20,451 |
|
$ |
21,788 |
|
$ |
21,771 |
|
$ |
20,845 |
|
$ |
20,705 |
|
$ |
20,640 |
|
$ |
(1,148 |
) |
|
-5.3 |
% |
$ |
64,038 |
|
$ |
62,191 |
|
$ |
(1,847 |
) |
|
-2.9 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
79,866 |
|
$ |
20,518 |
|
|
34.6 |
% |
$ |
181,414 |
|
$ |
219,559 |
|
$ |
38,145 |
|
|
21.0 |
% |
|||||
|
Less: eTeleQuote transaction-related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,109 |
|
|
10,027 |
|
nm |
|
nm |
|
|
— |
|
|
12,136 |
|
nm |
|
nm |
|
|||||||||
|
Less: Equity comp for awards exchanged during acquisition |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,004 |
) |
nm |
|
nm |
|
|
— |
|
|
(1,004 |
) |
nm |
|
nm |
|
|||||||||
|
Adjusted other operating expenses |
$ |
65,914 |
|
$ |
56,152 |
|
$ |
59,348 |
|
$ |
63,781 |
|
$ |
72,964 |
|
$ |
64,620 |
|
$ |
70,843 |
|
$ |
11,496 |
|
|
19.4 |
% |
$ |
181,414 |
|
$ |
208,427 |
|
$ |
27,014 |
|
|
14.9 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Total Revenues to Adjusted Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total revenues |
$ |
524,936 |
|
$ |
525,815 |
|
$ |
568,460 |
|
$ |
598,330 |
|
$ |
637,711 |
|
$ |
654,687 |
|
$ |
693,240 |
|
$ |
124,780 |
|
|
22.0 |
% |
$ |
1,619,211 |
|
$ |
1,985,638 |
|
$ |
366,427 |
|
|
22.6 |
% |
|||||
|
Less: Realized investment gains/(losses) |
|
(10,030 |
) |
|
1,742 |
|
|
642 |
|
|
2,650 |
|
|
1,766 |
|
|
701 |
|
|
1,410 |
|
nm |
|
nm |
|
|
(7,645 |
) |
|
3,876 |
|
nm |
|
nm |
|
|||||||||
|
Less: MTM investment adjustments |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
|
(640 |
) |
nm |
|
nm |
|
|
(2,956 |
) |
|
(1,603 |
) |
nm |
|
nm |
|
|||||||||
|
Adjusted operating revenues |
$ |
541,346 |
|
$ |
521,813 |
|
$ |
566,653 |
|
$ |
594,720 |
|
$ |
636,738 |
|
$ |
654,156 |
|
$ |
692,470 |
|
$ |
125,817 |
|
|
22.2 |
% |
$ |
1,629,812 |
|
$ |
1,983,365 |
|
$ |
353,553 |
|
|
21.7 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
147,102 |
|
$ |
619 |
|
|
0.4 |
% |
$ |
375,090 |
|
$ |
444,875 |
|
$ |
69,785 |
|
|
18.6 |
% |
|||||
|
Less: Realized investment gains/(losses) |
|
(10,030 |
) |
|
1,742 |
|
|
642 |
|
|
2,650 |
|
|
1,766 |
|
|
701 |
|
|
1,410 |
|
nm |
|
nm |
|
|
(7,645 |
) |
|
3,876 |
|
nm |
|
nm |
|
|||||||||
|
Less: MTM investment adjustments |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
|
(640 |
) |
nm |
|
nm |
|
|
(2,956 |
) |
|
(1,603 |
) |
nm |
|
nm |
|
|||||||||
|
Less: eTeleQuote transaction-related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,109 |
) |
|
(10,027 |
) |
nm |
|
nm |
|
|
— |
|
|
(12,136 |
) |
nm |
|
nm |
|
|||||||||
|
Less: Equity comp for awards exchanged during acquisition |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,004 |
|
nm |
|
nm |
|
|
— |
|
|
1,004 |
|
nm |
|
nm |
|
|||||||||
|
Less: Noncontrolling interest before income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,465 |
) |
nm |
|
nm |
|
|
— |
|
|
(1,465 |
) |
nm |
|
nm |
|
|||||||||
|
Adjusted operating income before income taxes |
$ |
110,955 |
|
$ |
130,060 |
|
$ |
144,676 |
|
$ |
128,030 |
|
$ |
127,335 |
|
$ |
171,044 |
|
$ |
156,819 |
|
$ |
12,144 |
|
|
8.4 |
% |
$ |
385,691 |
|
$ |
455,198 |
|
$ |
69,507 |
|
|
18.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Income to Adjusted Net Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income |
$ |
72,469 |
|
$ |
101,510 |
|
$ |
112,101 |
|
$ |
100,084 |
|
$ |
97,872 |
|
$ |
128,162 |
|
$ |
111,439 |
|
$ |
(662 |
) |
|
-0.6 |
% |
$ |
286,080 |
|
$ |
337,472 |
|
$ |
51,392 |
|
|
18.0 |
% |
|||||
|
Less: Realized investment gains/(losses) |
|
(10,030 |
) |
|
1,742 |
|
|
642 |
|
|
2,650 |
|
|
1,766 |
|
|
701 |
|
|
1,410 |
|
nm |
|
nm |
|
|
(7,645 |
) |
|
3,876 |
|
nm |
|
nm |
|
|||||||||
|
Less: MTM investment adjustments |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
|
(640 |
) |
nm |
|
nm |
|
|
(2,956 |
) |
|
(1,603 |
) |
nm |
|
nm |
|
|||||||||
|
Less: e-TeleQuote transaction-related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,109 |
) |
|
(10,027 |
) |
nm |
|
nm |
|
|
— |
|
|
(12,136 |
) |
nm |
|
nm |
|
|||||||||
|
Less: Equity comp for awards exchanged during acquisition |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,004 |
|
nm |
|
nm |
|
|
— |
|
|
1,004 |
|
nm |
|
nm |
|
|||||||||
|
Less: Noncontrolling interest before income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,465 |
) |
nm |
|
nm |
|
|
— |
|
|
(1,465 |
) |
nm |
|
nm |
|
|||||||||
|
Less: Tax impact of reconciling items |
|
3,832 |
|
|
(972 |
) |
|
(424 |
) |
|
(865 |
) |
|
(231 |
) |
|
385 |
|
|
2,449 |
|
nm |
|
nm |
|
|
2,436 |
|
|
2,602 |
|
nm |
|
nm |
|
|||||||||
|
Adjusted net operating income |
$ |
85,047 |
|
$ |
98,480 |
|
$ |
110,718 |
|
$ |
97,339 |
|
$ |
97,129 |
|
$ |
129,355 |
|
$ |
118,708 |
|
$ |
7,990 |
|
|
7.2 |
% |
$ |
294,245 |
|
$ |
345,193 |
|
$ |
50,948 |
|
|
17.3 |
% |
7 of 16
Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
|
YOY YTD |
||
(Dollars in thousands) |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
$ Change |
% Change |
YTD 2020 |
YTD 2021 |
$ Change |
% Change |
||||||
Reconciliation from Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Income before income taxes |
na |
na |
na |
na |
na |
na |
$(8,489) |
na |
na |
na |
$(8,489) |
na |
na |
|||||
|
Less: e-TeleQuote transaction-related costs |
na |
na |
na |
na |
na |
na |
(417) |
na |
na |
na |
(417) |
na |
na |
|||||
|
Less: Noncontrolling interest |
na |
na |
na |
na |
na |
na |
(1,465) |
na |
na |
na |
(1,465) |
na |
na |
|||||
|
Adjusted operating income before income taxes |
na |
na |
na |
na |
na |
na |
$(6,608) |
na |
na |
na |
$(6,608) |
na |
na |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Income before income taxes |
$(36,046) |
$(7,700) |
$(10,206) |
$(14,514) |
$(23,290) |
$(18,467) |
$(21,367) |
$(11,161) |
-109.4% |
$(53,952) |
$(63,124) |
$(9,172) |
-17.0% |
|||||
|
Less: Realized investment gains/(losses) |
(10,030) |
1,742 |
642 |
2,650 |
1,766 |
701 |
1,410 |
nm |
nm |
(7,645) |
3,876 |
nm |
nm |
|||||
|
Less: MTM investment adjustments |
(6,379) |
2,259 |
1,165 |
960 |
(793) |
(170) |
(640) |
nm |
nm |
(2,956) |
(1,603) |
nm |
nm |
|||||
|
Less: e-TeleQuote transaction-related costs |
— |
— |
— |
— |
— |
(2,109) |
(9,610) |
nm |
nm |
— |
(11,719) |
nm |
nm |
|||||
|
Less: Equity comp for awards exchanged during acquistion |
— |
— |
— |
— |
— |
— |
1,004 |
nm |
nm |
— |
1,004 |
nm |
nm |
|||||
|
Adjusted operating income before income taxes |
$(19,637) |
$(11,702) |
$(12,013) |
$(18,124) |
$(24,263) |
$(16,888) |
$(13,531) |
$(1,518) |
-12.6% |
$(43,351) |
$(54,682) |
$(11,331) |
-26.1% |
8 of 16
Term Life Insurance - Financial Results and Analysis |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 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 |
|
$ |
779,490 |
|
$ |
49,217 |
|
|
6.7 |
% |
$ |
2,138,024 |
|
$ |
2,310,504 |
|
$ |
172,479 |
|
|
8.1 |
% |
|||||
|
Premiums ceded to IPO coinsurers (1) |
|
(260,076 |
) |
|
(257,529 |
) |
|
(254,938 |
) |
|
(253,039 |
) |
|
(249,944 |
) |
|
(246,874 |
) |
|
(241,439 |
) |
|
13,500 |
|
|
5.3 |
% |
|
(772,543 |
) |
|
(738,257 |
) |
|
34,286 |
|
|
4.4 |
% |
|||||
|
Adjusted direct premiums (2) |
|
436,488 |
|
|
453,659 |
|
|
475,335 |
|
|
492,520 |
|
|
506,570 |
|
|
527,626 |
|
|
538,051 |
|
|
62,716 |
|
|
13.2 |
% |
|
1,365,482 |
|
|
1,572,247 |
|
|
206,765 |
|
|
15.1 |
% |
|||||
|
Other ceded premiums (3) |
|
(125,156 |
) |
|
(143,390 |
) |
|
(137,066 |
) |
|
(142,728 |
) |
|
(144,606 |
) |
|
(165,154 |
) |
|
(158,397 |
) |
|
(21,331 |
) |
|
-15.6 |
% |
|
(405,612 |
) |
|
(468,156 |
) |
|
(62,545 |
) |
|
-15.4 |
% |
|||||
|
Net premiums |
|
311,332 |
|
|
310,269 |
|
|
338,269 |
|
|
349,792 |
|
|
361,964 |
|
|
362,472 |
|
|
379,654 |
|
|
41,386 |
|
|
12.2 |
% |
|
959,870 |
|
|
1,104,090 |
|
|
144,221 |
|
|
15.0 |
% |
|||||
|
Allocated net investment income |
|
6,246 |
|
|
6,538 |
|
|
6,813 |
|
|
7,432 |
|
|
8,253 |
|
|
8,751 |
|
|
9,320 |
|
|
2,506 |
|
|
36.8 |
% |
|
19,598 |
|
|
26,324 |
|
|
6,726 |
|
|
34.3 |
% |
|||||
|
Other, net |
|
10,168 |
|
|
11,426 |
|
|
12,717 |
|
|
11,768 |
|
|
11,810 |
|
|
12,315 |
|
|
12,476 |
|
|
(241 |
) |
|
-1.9 |
% |
|
34,311 |
|
|
36,601 |
|
|
2,290 |
|
|
6.7 |
% |
|||||
|
Revenues |
|
327,747 |
|
|
328,233 |
|
|
357,799 |
|
|
368,992 |
|
|
382,028 |
|
|
383,537 |
|
|
401,450 |
|
|
43,651 |
|
|
12.2 |
% |
|
1,013,779 |
|
|
1,167,016 |
|
|
153,237 |
|
|
15.1 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Benefits and claims |
|
128,563 |
|
|
135,409 |
|
|
156,209 |
|
|
173,767 |
|
|
178,963 |
|
|
162,488 |
|
|
179,696 |
|
|
23,487 |
|
|
15.0 |
% |
|
420,182 |
|
|
521,148 |
|
|
100,966 |
|
|
24.0 |
% |
|||||
|
Amortization of DAC |
|
65,840 |
|
|
52,730 |
|
|
45,529 |
|
|
52,109 |
|
|
62,584 |
|
|
52,235 |
|
|
59,287 |
|
|
13,758 |
|
|
30.2 |
% |
|
164,099 |
|
|
174,106 |
|
|
10,007 |
|
|
6.1 |
% |
|||||
|
Insurance commissions |
|
3,286 |
|
|
2,884 |
|
|
5,946 |
|
|
5,477 |
|
|
4,869 |
|
|
4,785 |
|
|
4,345 |
|
|
(1,601 |
) |
|
-26.9 |
% |
|
12,115 |
|
|
13,999 |
|
|
1,884 |
|
|
15.6 |
% |
|||||
|
Insurance expenses |
|
47,165 |
|
|
42,306 |
|
|
44,800 |
|
|
48,199 |
|
|
47,375 |
|
|
47,252 |
|
|
50,534 |
|
|
5,734 |
|
|
12.8 |
% |
|
134,272 |
|
|
145,160 |
|
|
10,888 |
|
|
8.1 |
% |
|||||
|
Benefits and expenses |
|
244,855 |
|
|
233,330 |
|
|
252,483 |
|
|
279,551 |
|
|
293,792 |
|
|
266,760 |
|
|
293,862 |
|
|
41,379 |
|
|
16.4 |
% |
|
730,668 |
|
|
854,414 |
|
|
123,746 |
|
|
16.9 |
% |
|||||
|
Income before income taxes |
$ |
82,892 |
|
$ |
94,903 |
|
$ |
105,316 |
|
$ |
89,440 |
|
$ |
88,236 |
|
$ |
116,778 |
|
$ |
107,589 |
|
$ |
2,273 |
|
|
2.2 |
% |
$ |
283,111 |
|
$ |
312,602 |
|
$ |
29,491 |
|
|
10.4 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Term Life Insurance - Financial Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Post-IPO direct premiums (4) |
$ |
336,921 |
|
$ |
352,353 |
|
$ |
372,852 |
|
$ |
388,303 |
|
$ |
401,106 |
|
$ |
420,865 |
|
$ |
431,022 |
|
$ |
58,170 |
|
|
15.6 |
% |
$ |
1,062,125 |
|
$ |
1,252,993 |
|
$ |
190,868 |
|
|
18.0 |
% |
|||||
|
Pre-IPO direct premiums (5) |
|
359,643 |
|
|
358,835 |
|
|
357,421 |
|
|
357,256 |
|
|
355,408 |
|
|
353,635 |
|
|
348,468 |
|
|
(8,953 |
) |
|
-2.5 |
% |
|
1,075,899 |
|
|
1,057,511 |
|
|
(18,389 |
) |
|
-1.7 |
% |
|||||
|
Total direct premiums |
$ |
696,564 |
|
$ |
711,188 |
|
$ |
730,273 |
|
$ |
745,559 |
|
$ |
756,514 |
|
$ |
774,500 |
|
$ |
779,490 |
|
$ |
49,217 |
|
|
6.7 |
% |
$ |
2,138,024 |
|
$ |
2,310,504 |
|
$ |
172,479 |
|
|
8.1 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums ceded to IPO coinsurers |
$ |
260,076 |
|
$ |
257,529 |
|
$ |
254,938 |
|
$ |
253,039 |
|
$ |
249,944 |
|
$ |
246,874 |
|
$ |
241,439 |
|
$ |
(13,500 |
) |
|
-5.3 |
% |
$ |
772,543 |
|
$ |
738,257 |
|
$ |
(34,286 |
) |
|
-4.4 |
% |
|||||
|
% of Pre-IPO direct premiums |
|
72.3 |
% |
|
71.8 |
% |
|
71.3 |
% |
|
70.8 |
% |
|
70.3 |
% |
|
69.8 |
% |
|
69.3 |
% |
nm |
|
nm |
|
|
71.8 |
% |
|
69.8 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims, net (6) |
$ |
253,719 |
|
$ |
278,799 |
|
$ |
293,275 |
|
$ |
316,495 |
|
$ |
323,569 |
|
$ |
327,642 |
|
$ |
338,093 |
|
$ |
44,818 |
|
|
15.3 |
% |
$ |
825,793 |
|
$ |
989,304 |
|
$ |
163,511 |
|
|
19.8 |
% |
|||||
|
% of adjusted direct premiums |
|
58.1 |
% |
|
61.5 |
% |
|
61.7 |
% |
|
64.3 |
% |
|
63.9 |
% |
|
62.1 |
% |
|
62.8 |
% |
nm |
|
nm |
|
|
60.5 |
% |
|
62.9 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAC amortization & insurance commissions |
$ |
69,126 |
|
$ |
55,614 |
|
$ |
51,474 |
|
$ |
57,585 |
|
$ |
67,454 |
|
$ |
57,020 |
|
$ |
63,632 |
|
$ |
12,158 |
|
|
23.6 |
% |
$ |
176,214 |
|
$ |
188,106 |
|
$ |
11,891 |
|
|
6.7 |
% |
|||||
|
% of adjusted direct premiums |
|
15.8 |
% |
|
12.3 |
% |
|
10.8 |
% |
|
11.7 |
% |
|
13.3 |
% |
|
10.8 |
% |
|
11.8 |
% |
nm |
|
nm |
|
|
12.9 |
% |
|
12.0 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance expenses, net (7) |
$ |
36,997 |
|
$ |
30,881 |
|
$ |
32,083 |
|
$ |
36,431 |
|
$ |
35,565 |
|
$ |
34,937 |
|
$ |
38,057 |
|
$ |
5,974 |
|
|
18.6 |
% |
$ |
99,961 |
|
$ |
108,559 |
|
$ |
8,598 |
|
|
8.6 |
% |
|||||
|
% of adjusted direct premiums |
|
8.5 |
% |
|
6.8 |
% |
|
6.7 |
% |
|
7.4 |
% |
|
7.0 |
% |
|
6.6 |
% |
|
7.1 |
% |
nm |
|
nm |
|
|
7.3 |
% |
|
6.9 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Term Life income before income taxes |
$ |
82,892 |
|
$ |
94,903 |
|
$ |
105,316 |
|
$ |
89,440 |
|
$ |
88,236 |
|
$ |
116,778 |
|
$ |
107,589 |
|
$ |
2,273 |
|
|
2.2 |
% |
$ |
283,111 |
|
$ |
312,602 |
|
$ |
29,491 |
|
|
10.4 |
% |
|||||
|
Term Life operating margin (8) |
|
19.0 |
% |
|
20.9 |
% |
|
22.2 |
% |
|
18.2 |
% |
|
17.4 |
% |
|
22.1 |
% |
|
20.0 |
% |
nm |
|
nm |
|
|
20.7 |
% |
|
19.9 |
% |
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 Q3 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
|
(Dollars in thousands, except as noted) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 2021 |
|
$/# Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$/# Change |
|
% Change |
|
||||||||||||||||||
|
Key Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life-insurance licensed sales force, beginning of period |
|
130,522 |
|
|
130,095 |
|
|
134,157 |
|
|
136,306 |
|
|
134,907 |
|
|
132,030 |
|
|
132,041 |
|
|
(2,116 |
) |
|
-1.6 |
% |
|
130,522 |
|
|
134,907 |
|
|
4,385 |
|
|
3.4 |
% |
|||||
|
|
New life-licensed representatives |
|
10,599 |
|
|
12,250 |
|
|
13,138 |
|
|
12,119 |
|
|
10,833 |
|
|
10,112 |
|
|
9,381 |
|
|
(3,757 |
) |
|
-28.6 |
% |
|
35,987 |
|
|
30,326 |
|
|
(5,661 |
) |
|
-15.7 |
% |
||||
|
|
Non-renewal and terminated representatives |
|
(11,026 |
) |
|
(8,188 |
) |
|
(10,989 |
) |
|
(13,518 |
) |
|
(13,710 |
) |
|
(10,101 |
) |
|
(11,399 |
) |
|
(410 |
) |
|
-3.7 |
% |
|
(30,203 |
) |
|
(35,210 |
) |
|
(5,007 |
) |
|
-16.6 |
% |
||||
|
Life-insurance licensed sales force, end of period |
|
130,095 |
|
|
134,157 |
|
|
136,306 |
|
|
134,907 |
|
|
132,030 |
|
|
132,041 |
|
|
130,023 |
|
|
(6,283 |
) |
|
-4.6 |
% |
|
136,306 |
|
|
130,023 |
|
|
(6,283 |
) |
|
-4.6 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated annualized issued term life premium ($mills) (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Premium from new policies |
$ |
61.5 |
|
$ |
77.7 |
|
$ |
86.0 |
|
$ |
78.4 |
|
$ |
74.5 |
|
$ |
82.6 |
|
$ |
70.7 |
|
$ |
(15.3 |
) |
|
-17.8 |
% |
$ |
225.2 |
|
$ |
227.8 |
|
$ |
2.6 |
|
|
1.2 |
% |
||||
|
|
Additions and increases in premium |
|
15.0 |
|
|
17.8 |
|
|
17.9 |
|
|
18.1 |
|
|
18.0 |
|
|
20.3 |
|
|
19.5 |
|
|
1.6 |
|
|
9.1 |
% |
|
50.7 |
|
|
57.9 |
|
|
7.2 |
|
|
14.1 |
% |
||||
|
|
|
|
Total estimated annualized issued term life premium |
$ |
76.5 |
|
$ |
95.5 |
|
$ |
103.9 |
|
$ |
96.5 |
|
$ |
92.5 |
|
$ |
103.0 |
|
$ |
90.2 |
|
$ |
(13.7 |
) |
|
-13.1 |
% |
$ |
276.0 |
|
$ |
285.7 |
|
$ |
9.8 |
|
|
3.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued term life policies |
|
71,318 |
|
|
94,044 |
|
|
100,199 |
|
|
87,307 |
|
|
82,667 |
|
|
90,071 |
|
|
75,914 |
|
|
(24,285 |
) |
|
-24.2 |
% |
|
265,561 |
|
|
248,652 |
|
|
(16,909 |
) |
|
-6.4 |
% |
|||||
|
Estimated average annualized issued term life premium per policy (1)(2) |
$ |
863 |
|
$ |
826 |
|
$ |
858 |
|
$ |
898 |
|
$ |
901 |
|
$ |
917 |
|
$ |
931 |
|
$ |
73 |
|
|
8.5 |
% |
$ |
848 |
|
$ |
916 |
|
$ |
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 |
|
$ |
886,519 |
|
$ |
64,522 |
|
|
7.8 |
% |
$ |
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 |
|
|
26,219 |
|
|
(3,885 |
) |
|
-12.9 |
% |
|
81,079 |
|
|
82,843 |
|
|
1,764 |
|
|
2.2 |
% |
||||
|
|
Terminated term life face amount |
|
(18,294 |
) |
|
(14,315 |
) |
|
(13,733 |
) |
|
(14,506 |
) |
|
(17,240 |
) |
|
(14,706 |
) |
|
(16,241 |
) |
|
(2,508 |
) |
|
-18.3 |
% |
|
(46,343 |
) |
|
(48,187 |
) |
|
(1,845 |
) |
|
-4.0 |
% |
||||
|
|
Foreign currency impact, net |
|
(8,676 |
) |
|
4,046 |
|
|
1,859 |
|
|
4,740 |
|
|
1,422 |
|
|
1,602 |
|
|
(2,480 |
) |
|
(4,339 |
) |
nm |
|
|
(2,772 |
) |
|
544 |
|
|
3,315 |
|
nm |
|
||||||
|
Term life face amount in-force, end of period |
$ |
804,512 |
|
$ |
821,998 |
|
$ |
840,227 |
|
$ |
858,818 |
|
$ |
869,643 |
|
$ |
886,519 |
|
$ |
894,018 |
|
$ |
53,791 |
|
|
6.4 |
% |
$ |
840,227 |
|
$ |
894,018 |
|
$ |
53,791 |
|
|
6.4 |
% |
(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 Q3 |
|
|
|
|
|
|
|
YOY YTD |
|
||||||||
(Dollars in thousands, except as noted) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 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 |
|
$ |
95,229 |
|
$ |
29,629 |
|
|
45.2 |
% |
$ |
209,304 |
|
$ |
298,057 |
|
$ |
88,753 |
|
|
42.4 |
% |
|||||
|
Asset-based |
|
81,395 |
|
|
78,146 |
|
|
86,695 |
|
|
93,669 |
|
|
101,241 |
|
|
108,490 |
|
|
113,558 |
|
|
26,863 |
|
|
31.0 |
% |
|
246,235 |
|
|
323,288 |
|
|
77,053 |
|
|
31.3 |
% |
|||||
|
Account-based |
|
20,204 |
|
|
20,478 |
|
|
21,008 |
|
|
21,351 |
|
|
21,120 |
|
|
21,848 |
|
|
21,456 |
|
|
448 |
|
|
2.1 |
% |
|
61,690 |
|
|
64,424 |
|
|
2,734 |
|
|
4.4 |
% |
|||||
|
Other, net |
|
2,542 |
|
|
2,745 |
|
|
3,034 |
|
|
2,949 |
|
|
2,949 |
|
|
2,958 |
|
|
3,094 |
|
|
60 |
|
|
2.0 |
% |
|
8,322 |
|
|
9,001 |
|
|
680 |
|
|
8.2 |
% |
|||||
|
Revenues |
|
185,033 |
|
|
164,180 |
|
|
176,338 |
|
|
193,316 |
|
|
223,422 |
|
|
238,012 |
|
|
233,337 |
|
|
57,000 |
|
|
32.3 |
% |
|
525,551 |
|
|
694,772 |
|
|
169,221 |
|
|
32.2 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Amortization of DAC |
|
4,305 |
|
|
100 |
|
|
1,667 |
|
|
982 |
|
|
3,275 |
|
|
1,786 |
|
|
2,580 |
|
|
913 |
|
|
54.7 |
% |
|
6,072 |
|
|
7,641 |
|
|
1,568 |
|
|
25.8 |
% |
|||||
|
Insurance commissions |
|
3,201 |
|
|
3,106 |
|
|
3,377 |
|
|
3,500 |
|
|
3,572 |
|
|
3,747 |
|
|
3,747 |
|
|
370 |
|
|
10.9 |
% |
|
9,684 |
|
|
11,065 |
|
|
1,381 |
|
|
14.3 |
% |
|||||
|
Sales commissions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sales-based |
|
56,561 |
|
|
44,834 |
|
|
46,821 |
|
|
52,931 |
|
|
68,594 |
|
|
73,629 |
|
|
67,745 |
|
|
20,924 |
|
|
44.7 |
% |
|
148,217 |
|
|
209,969 |
|
|
61,752 |
|
|
41.7 |
% |
|||||
|
Asset-based |
|
36,323 |
|
|
35,673 |
|
|
39,349 |
|
|
43,227 |
|
|
46,866 |
|
|
50,488 |
|
|
53,233 |
|
|
13,884 |
|
|
35.3 |
% |
|
111,345 |
|
|
150,587 |
|
|
39,243 |
|
|
35.2 |
% |
|||||
|
Other operating expenses |
|
36,942 |
|
|
33,608 |
|
|
33,751 |
|
|
35,963 |
|
|
37,752 |
|
|
37,207 |
|
|
36,664 |
|
|
2,913 |
|
|
8.6 |
% |
|
104,302 |
|
|
111,623 |
|
|
7,322 |
|
|
7.0 |
% |
|||||
|
Benefits and expenses |
|
137,332 |
|
|
117,321 |
|
|
124,966 |
|
|
136,603 |
|
|
160,060 |
|
|
166,858 |
|
|
163,968 |
|
|
39,003 |
|
|
31.2 |
% |
|
379,619 |
|
|
490,886 |
|
|
111,266 |
|
|
29.3 |
% |
|||||
|
Income before income taxes |
$ |
47,700 |
|
$ |
46,859 |
|
$ |
51,372 |
|
$ |
56,713 |
|
$ |
63,363 |
|
$ |
71,154 |
|
$ |
69,369 |
|
$ |
17,997 |
|
|
35.0 |
% |
$ |
145,931 |
|
$ |
203,886 |
|
$ |
57,954 |
|
|
39.7 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees paid based on client asset values (1) |
$ |
5,990 |
|
$ |
5,712 |
|
$ |
6,284 |
|
$ |
6,772 |
|
$ |
6,964 |
|
$ |
7,535 |
|
$ |
7,891 |
|
$ |
1,607 |
|
|
25.6 |
% |
$ |
17,986 |
|
$ |
22,390 |
|
$ |
4,404 |
|
|
24.5 |
% |
|||||
|
Fees paid based on fee-generating positions (2) |
|
10,248 |
|
|
9,094 |
|
|
8,747 |
|
|
9,547 |
|
|
10,451 |
|
|
10,021 |
|
|
9,128 |
|
|
380 |
|
|
4.3 |
% |
|
28,090 |
|
|
29,600 |
|
|
1,510 |
|
|
5.4 |
% |
|||||
|
Other operating expenses |
|
20,704 |
|
|
18,803 |
|
|
18,719 |
|
|
19,644 |
|
|
20,337 |
|
|
19,652 |
|
|
19,645 |
|
|
926 |
|
|
4.9 |
% |
|
58,226 |
|
|
59,634 |
|
|
1,408 |
|
|
2.4 |
% |
|||||
|
Total other operating expenses |
$ |
36,942 |
|
$ |
33,608 |
|
$ |
33,751 |
|
$ |
35,963 |
|
$ |
37,752 |
|
$ |
37,207 |
|
$ |
36,664 |
|
$ |
2,913 |
|
|
8.6 |
% |
$ |
104,302 |
|
$ |
111,623 |
|
$ |
7,322 |
|
|
7.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales-based net revenue as % of revenue-generating sales (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
U.S. |
|
1.34 |
% |
|
1.33 |
% |
|
1.27 |
% |
|
1.31 |
% |
|
1.29 |
% |
|
1.28 |
% |
|
1.25 |
% |
nm |
|
nm |
|
|
1.31 |
% |
|
1.27 |
% |
nm |
|
nm |
|
|||||||||
|
Canada |
|
1.06 |
% |
|
0.87 |
% |
|
0.93 |
% |
|
0.95 |
% |
|
1.05 |
% |
|
0.96 |
% |
|
0.92 |
% |
nm |
|
nm |
|
|
0.97 |
% |
|
0.98 |
% |
nm |
|
nm |
|
|||||||||
|
Total |
|
1.30 |
% |
|
1.27 |
% |
|
1.23 |
% |
|
1.26 |
% |
|
1.25 |
% |
|
1.23 |
% |
|
1.20 |
% |
nm |
|
nm |
|
|
1.27 |
% |
|
1.23 |
% |
nm |
|
nm |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-based net revenue as % of average asset values (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
U.S. |
|
0.038 |
% |
|
0.037 |
% |
|
0.038 |
% |
|
0.038 |
% |
|
0.039 |
% |
|
0.039 |
% |
|
0.039 |
% |
nm |
|
nm |
|
|
0.113 |
% |
|
0.117 |
% |
nm |
|
nm |
|
|||||||||
|
Canada |
|
0.098 |
% |
|
0.133 |
% |
|
0.119 |
% |
|
0.124 |
% |
|
0.103 |
% |
|
0.112 |
% |
|
0.106 |
% |
nm |
|
nm |
|
|
0.349 |
% |
|
0.321 |
% |
nm |
|
nm |
|
|||||||||
|
Total |
|
0.047 |
% |
|
0.052 |
% |
|
0.050 |
% |
|
0.052 |
% |
|
0.049 |
% |
|
0.050 |
% |
|
0.050 |
% |
nm |
|
nm |
|
|
0.150 |
% |
|
0.149 |
% |
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 |
|
$ |
4.17 |
|
nm |
|
nm |
|
$ |
12.35 |
|
$ |
12.03 |
|
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 Q3 |
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YOY YTD |
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(Dollars in thousands, except as noted) |
Q1 2020 |
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Q2 2020 |
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Q3 2020 |
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Q4 2020 |
|
Q1 2021 |
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Q2 2021 |
|
Q3 2021 |
|
$/# Change |
|
% Change |
|
YTD 2020 |
|
YTD 2021 |
|
$/# Change |
|
% Change |
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|||||||||||||||||||
Key Statistics |
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Product sales ($mills) |
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|||||
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|
U.S. Retail Mutual Funds |
$ |
921.0 |
|
$ |
758.4 |
|
$ |
874.1 |
|
$ |
945.5 |
|
$ |
1,261.9 |
|
$ |
1,336.1 |
|
$ |
1,247.8 |
|
$ |
373.7 |
|
|
42.8 |
% |
$ |
2,553.5 |
|
$ |
3,845.8 |
|
$ |
1,292.3 |
|
|
50.6 |
% |
||||
|
|
Canada Retail Mutual Funds |
|
280.9 |
|
|
165.2 |
|
|
189.6 |
|
|
256.0 |
|
|
424.0 |
|
|
357.0 |
|
|
314.8 |
|
|
125.1 |
|
|
66.0 |
% |
|
635.8 |
|
|
1,095.8 |
|
|
460.0 |
|
|
72.4 |
% |
||||
|
|
Indexed Annuities |
|
72.2 |
|
|
48.4 |
|
|
47.2 |
|
|
50.6 |
|
|
55.5 |
|
|
62.8 |
|
|
51.9 |
|
|
4.7 |
|
|
10.0 |
% |
|
167.8 |
|
|
170.1 |
|
|
2.4 |
|
|
1.4 |
% |
||||
|
|
Variable Annuities and other |
|
600.6 |
|
|
440.5 |
|
|
421.7 |
|
|
529.3 |
|
|
627.1 |
|
|
767.6 |
|
|
668.7 |
|
|
246.9 |
|
|
58.5 |
% |
|
1,462.8 |
|
|
2,063.3 |
|
|
600.5 |
|
|
41.1 |
% |
||||
|
|
|
|
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 |
|
|
2,283.1 |
|
|
750.5 |
|
|
49.0 |
% |
|
4,819.8 |
|
|
7,175.0 |
|
|
2,355.2 |
|
|
48.9 |
% |
||
|
|
Managed Accounts |
|
246.2 |
|
|
200.1 |
|
|
223.0 |
|
|
230.7 |
|
|
330.1 |
|
|
381.8 |
|
|
387.5 |
|
|
164.4 |
|
|
73.7 |
% |
|
669.3 |
|
|
1,099.3 |
|
|
430.0 |
|
|
64.2 |
% |
||||
|
|
Segregated Funds and other |
|
124.8 |
|
|
73.9 |
|
|
85.3 |
|
|
57.3 |
|
|
154.9 |
|
|
135.0 |
|
|
119.8 |
|
|
34.5 |
|
|
40.4 |
% |
|
284.0 |
|
|
409.8 |
|
|
125.8 |
|
|
44.3 |
% |
||||
|
|
|
|
Total product sales |
$ |
2,245.7 |
|
$ |
1,686.5 |
|
$ |
1,841.0 |
|
$ |
2,069.4 |
|
$ |
2,853.5 |
|
$ |
3,040.2 |
|
$ |
2,790.4 |
|
$ |
949.4 |
|
|
51.6 |
% |
$ |
5,773.1 |
|
$ |
8,684.1 |
|
$ |
2,911.0 |
|
|
50.4 |
% |
||
|
|
|
|
|
|
|
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|
|
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|
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Canada Retail Mutual Funds |
$ |
280.9 |
|
$ |
165.2 |
|
$ |
189.6 |
|
$ |
256.0 |
|
$ |
424.0 |
|
$ |
357.0 |
|
$ |
314.8 |
|
$ |
125.1 |
|
|
66.0 |
% |
$ |
635.8 |
|
$ |
1,095.8 |
|
$ |
460.0 |
|
|
72.4 |
% |
||||
|
|
Segregated Funds and other |
|
124.8 |
|
|
73.9 |
|
|
85.3 |
|
|
57.3 |
|
|
154.9 |
|
|
135.0 |
|
|
119.8 |
|
|
34.5 |
|
|
40.4 |
% |
|
284.0 |
|
|
409.8 |
|
|
125.8 |
|
|
44.3 |
% |
||||
|
|
|
Total Canada product sales |
|
405.7 |
|
|
239.2 |
|
|
274.9 |
|
|
313.3 |
|
|
579.0 |
|
|
492.0 |
|
|
434.6 |
|
|
159.6 |
|
|
58.1 |
% |
|
919.8 |
|
|
1,505.6 |
|
|
585.8 |
|
|
63.7 |
% |
|||
|
|
|
Total U.S. product sales |
|
1,840.0 |
|
|
1,447.3 |
|
|
1,566.1 |
|
|
1,756.1 |
|
|
2,274.5 |
|
|
2,548.2 |
|
|
2,355.8 |
|
|
789.8 |
|
|
50.4 |
% |
|
4,853.4 |
|
|
7,178.5 |
|
|
2,325.2 |
|
|
47.9 |
% |
|||
|
|
|
|
Total product sales |
$ |
2,245.7 |
|
$ |
1,686.5 |
|
$ |
1,841.0 |
|
$ |
2,069.4 |
|
$ |
2,853.5 |
|
$ |
3,040.2 |
|
$ |
2,790.4 |
|
$ |
949.4 |
|
|
51.6 |
% |
$ |
5,773.1 |
|
$ |
8,684.1 |
|
$ |
2,911.0 |
|
|
50.4 |
% |
||
|
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|
|
|
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|
|
|
|
|
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|
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|
|
|
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|
|
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|
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|
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|
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|
Client asset values, beginning of period ($mills) |
$ |
70,537 |
|
$ |
59,036 |
|
$ |
68,224 |
|
$ |
72,606 |
|
$ |
81,533 |
|
$ |
85,888 |
|
$ |
91,735 |
|
$ |
23,511 |
|
|
34.5 |
% |
$ |
70,537 |
|
$ |
81,533 |
|
$ |
10,996 |
|
|
15.6 |
% |
|||||
|
|
Inflows |
|
2,246 |
|
|
1,686 |
|
|
1,841 |
|
|
2,069 |
|
|
2,853 |
|
|
3,040 |
|
|
2,790 |
|
|
949 |
|
|
51.6 |
% |
|
5,773 |
|
|
8,684 |
|
|
2,911 |
|
|
50.4 |
% |
||||
|
|
Outflows (1) |
|
(1,703 |
) |
|
(1,074 |
) |
|
(1,333 |
) |
|
(1,427 |
) |
|
(1,759 |
) |
|
(1,826 |
) |
|
(1,756 |
) |
|
(422 |
) |
|
-31.7 |
% |
|
(4,110 |
) |
|
(5,341 |
) |
|
(1,231 |
) |
|
-29.9 |
% |
||||
|
|
|
|
Net flows |
|
543 |
|
|
613 |
|
|
508 |
|
|
642 |
|
|
1,095 |
|
|
1,214 |
|
|
1,034 |
|
|
527 |
|
|
103.8 |
% |
|
1,663 |
|
|
3,343 |
|
|
1,680 |
|
nm |
|
|||
|
|
Foreign currency impact, net |
|
(978 |
) |
|
404 |
|
|
205 |
|
|
539 |
|
|
172 |
|
|
200 |
|
|
(323 |
) |
|
(528 |
) |
nm |
|
|
(369 |
) |
|
49 |
|
|
419 |
|
nm |
|
||||||
|
|
Change in market value, net and other (2) |
|
(11,065 |
) |
|
8,171 |
|
|
3,669 |
|
|
7,745 |
|
|
3,088 |
|
|
4,433 |
|
|
(681 |
) |
|
(4,350 |
) |
|
-118.6 |
% |
|
776 |
|
|
6,840 |
|
|
6,065 |
|
nm |
|
|||||
|
Client asset values, end of period |
$ |
59,036 |
|
$ |
68,224 |
|
$ |
72,606 |
|
$ |
81,533 |
|
$ |
85,888 |
|
$ |
91,735 |
|
$ |
91,765 |
|
$ |
19,159 |
|
|
26.4 |
% |
$ |
72,606 |
|
$ |
91,765 |
|
$ |
19,159 |
|
|
26.4 |
% |
|||||
|
|
Annualized net flows as % of beginning of period asset values |
|
3.1 |
% |
|
4.2 |
% |
|
3.0 |
% |
|
3.5 |
% |
|
5.4 |
% |
|
5.7 |
% |
|
4.5 |
% |
|
1.5 |
% |
nm |
|
|
3.1 |
% |
|
5.5 |
% |
|
2.3 |
% |
nm |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average client asset values ($mills) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
U.S. Retail Mutual Funds |
$ |
32,693 |
|
$ |
31,586 |
|
$ |
35,204 |
|
$ |
37,562 |
|
$ |
41,161 |
|
$ |
44,398 |
|
$ |
46,113 |
|
$ |
10,908 |
|
|
31.0 |
% |
$ |
33,161 |
|
$ |
43,890 |
|
$ |
10,729 |
|
|
32.4 |
% |
||||
|
|
Canada Retail Mutual Funds |
|
7,950 |
|
|
7,573 |
|
|
8,525 |
|
|
9,186 |
|
|
10,268 |
|
|
11,256 |
|
|
11,667 |
|
|
3,142 |
|
|
36.9 |
% |
|
8,016 |
|
|
11,064 |
|
|
3,048 |
|
|
38.0 |
% |
||||
|
|
Managed Accounts |
|
3,905 |
|
|
3,871 |
|
|
4,325 |
|
|
4,703 |
|
|
5,295 |
|
|
5,915 |
|
|
6,362 |
|
|
2,037 |
|
|
47.1 |
% |
|
4,034 |
|
|
5,857 |
|
|
1,824 |
|
|
45.2 |
% |
||||
|
|
Indexed Annuities |
|
2,389 |
|
|
2,427 |
|
|
2,446 |
|
|
2,469 |
|
|
2,495 |
|
|
2,541 |
|
|
2,585 |
|
|
139 |
|
|
5.7 |
% |
|
2,421 |
|
|
2,540 |
|
|
119 |
|
|
4.9 |
% |
||||
|
|
Variable Annuities and other |
|
17,292 |
|
|
16,890 |
|
|
18,551 |
|
|
19,634 |
|
|
21,291 |
|
|
22,554 |
|
|
23,193 |
|
|
4,642 |
|
|
25.0 |
% |
|
17,577 |
|
|
22,346 |
|
|
4,768 |
|
|
27.1 |
% |
||||
|
|
Segregated Funds |
|
2,366 |
|
|
2,291 |
|
|
2,461 |
|
|
2,536 |
|
|
2,622 |
|
|
2,713 |
|
|
2,732 |
|
|
271 |
|
|
11.0 |
% |
|
2,373 |
|
|
2,689 |
|
|
316 |
|
|
13.3 |
% |
||||
|
|
|
|
Total |
$ |
66,595 |
|
$ |
64,638 |
|
$ |
71,512 |
|
$ |
76,090 |
|
$ |
83,131 |
|
$ |
89,378 |
|
$ |
92,652 |
|
$ |
21,140 |
|
|
29.6 |
% |
$ |
67,582 |
|
$ |
88,387 |
|
$ |
20,805 |
|
|
30.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada Retail Mutual Funds |
$ |
7,950 |
|
$ |
7,573 |
|
$ |
8,525 |
|
$ |
9,186 |
|
$ |
10,268 |
|
$ |
11,256 |
|
$ |
11,667 |
|
$ |
3,142 |
|
|
36.9 |
% |
$ |
8,016 |
|
$ |
11,064 |
|
$ |
3,048 |
|
|
38.0 |
% |
||||
|
|
Segregated Funds |
|
2,366 |
|
|
2,291 |
|
|
2,461 |
|
|
2,536 |
|
|
2,622 |
|
|
2,713 |
|
|
2,732 |
|
|
271 |
|
|
11.0 |
% |
|
2,373 |
|
|
2,689 |
|
|
316 |
|
|
13.3 |
% |
||||
|
|
|
Total Canada average client assets |
|
10,316 |
|
|
9,864 |
|
|
10,986 |
|
|
11,722 |
|
|
12,890 |
|
|
13,969 |
|
|
14,399 |
|
|
3,413 |
|
|
31.1 |
% |
|
10,389 |
|
|
13,753 |
|
|
3,364 |
|
|
32.4 |
% |
|||
|
|
|
Total U.S. average client assets |
|
56,279 |
|
|
54,775 |
|
|
60,526 |
|
|
64,368 |
|
|
70,241 |
|
|
75,409 |
|
|
78,252 |
|
|
17,727 |
|
|
29.3 |
% |
|
57,193 |
|
|
74,634 |
|
|
17,441 |
|
|
30.5 |
% |
|||
|
|
|
|
Total average client assets |
$ |
66,595 |
|
$ |
64,638 |
|
$ |
71,512 |
|
$ |
76,090 |
|
$ |
83,131 |
|
$ |
89,378 |
|
$ |
92,652 |
|
$ |
21,140 |
|
|
29.6 |
% |
$ |
67,582 |
|
$ |
88,387 |
|
$ |
20,805 |
|
|
30.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of fee-generating positions (thous) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Recordkeeping and custodial |
|
2,031 |
|
|
2,048 |
|
|
2,072 |
|
|
2,091 |
|
|
2,115 |
|
|
2,159 |
|
|
2,192 |
|
|
120 |
|
|
5.8 |
% |
|
2,050 |
|
|
2,155 |
|
|
105 |
|
|
5.1 |
% |
||||
|
|
Recordkeeping only |
|
658 |
|
|
671 |
|
|
685 |
|
|
697 |
|
|
714 |
|
|
741 |
|
|
762 |
|
|
77 |
|
|
11.2 |
% |
|
672 |
|
|
739 |
|
|
67 |
|
|
10.0 |
% |
||||
|
|
|
|
Total |
|
2,689 |
|
|
2,718 |
|
|
2,757 |
|
|
2,788 |
|
|
2,830 |
|
|
2,899 |
|
|
2,954 |
|
|
197 |
|
|
7.1 |
% |
|
2,721 |
|
|
2,894 |
|
|
173 |
|
|
6.3 |
% |
(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
Senior Health - Financial Results, Financial Analysis Key Statistics |
PRIMERICA, INC. Financial Supplement |
(Dollars in thousands) |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
||||||
Senior Health Income Before Income Taxes |
|
|
|
|
|
|
|
||||||
|
Revenues: |
|
|
|
|
|
|
|
|||||
|
Commissions and fees (1) |
|
|
|
|
|
|
$21,558 |
|||||
|
Other, net (2) |
|
|
|
|
|
|
1,378 |
|||||
|
Revenues |
|
|
|
|
|
|
22,937 |
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Benefits and expenses: |
|
|
|
|
|
|
|
|||||
|
Contract acquisition costs (3) |
|
|
|
|
|
|
23,524 |
|||||
|
Adjusted other operating expenses |
|
|
|
|
|
|
7,485 |
|||||
|
Adjusted operating benefits and expenses |
|
|
|
|
|
|
31,009 |
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted operating income before income taxes |
|
|
|
|
|
|
$(8,072) |
|||||
|
Non-controlling interest before income taxes |
|
|
|
|
|
|
(1,465) |
|||||
|
Adjusted operating income before income taxes attributable to Primerica, Inc. |
|
|
|
|
|
|
$(6,608) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Health EBITDA |
|
|
|
|
|
|
|
||||||
|
Adjusted operating income before income taxes including NCI |
|
|
|
|
|
|
$(8,072) |
|||||
|
Less: Amortization of intangibles |
|
|
|
|
|
|
(2,900) |
|||||
|
Less: Depreciation |
|
|
|
|
|
|
(244) |
|||||
|
Adjusted EBITDA (Including non-controlling interest) (4) |
|
|
|
|
|
|
$(4,928) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Analysis and Key Statistics |
|
|
|
|
|
|
|
||||||
|
Senior Health submitted policies (5) |
|
|
|
|
|
|
20,867 |
|||||
|
Senior Health approved policies (6) |
|
|
|
|
|
|
18,276 |
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Primerica representatives Senior Health certified |
|
|
|
|
|
|
17,588 |
|||||
|
Senior Health submitted policies sourced by Primerica representatives |
|
|
|
|
|
|
319 |
|||||
|
|
|
|
|
|
|
|
|
|||||
|
LTV per approved policy (7) |
|
|
|
|
|
|
$1,180 |
|||||
|
CAC per approved policy (7) |
|
|
|
|
|
|
$1,287 |
|||||
|
LTV / CAC multiple |
|
|
|
|
|
|
0.9 x |
(1) |
Commission revenue recognized based on the estimated Lifetime value (LTV) to be collected over the estimated life of an approved policy for the relevant period based on multiple factors, including but not limited to contracted commission rates, carrier mix, expected policy turnover, historical chargeback activity and applied constraints. Adjustments to revenue outside of LTV for approved policies from prior periods are recognized when our cash collections are different from the estimated constrained LTV’s which we refer to as tail revenue. |
(2) |
Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition |
(3) |
Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs. |
(4) |
Adjusted EBITDA - Earnings before interest, taxes, depreciation, amortization and certain adjustments for non-cash or non-recurring expenses including purchase accounting adjustments |
(5) |
Senior Health submitted policies - represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier. The applicant may need to take additional actions, including providing subsequent information before the application is reviewed by the health insurance carrier. |
(6) |
Senior Health approved policies - represent an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force |
(7) |
In whole dollars. |
13 of 16
Corporate Other Distributed Products - Financial Results |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
|
YOY YTD |
||
(Dollars in thousands) |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
$ Change |
% Change |
YTD 2020 |
YTD 2021 |
$ Change |
% Change |
||||||
Corporate & Other Distributed Products Income Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Direct premiums |
$6,074 |
$5,900 |
$6,333 |
$5,259 |
$5,713 |
$5,800 |
$5,788 |
$(545) |
-8.6% |
$18,307 |
$17,300 |
$(1,006) |
-5.5% |
|||||
|
Ceded premiums |
(1,593) |
(1,631) |
(1,712) |
(1,909) |
(1,423) |
(1,822) |
(1,459) |
253 |
14.8% |
(4,935) |
(4,704) |
232 |
4.7% |
|||||
|
Net premiums |
4,480 |
4,270 |
4,621 |
3,350 |
4,290 |
3,978 |
4,328 |
(292) |
-6.3% |
13,371 |
12,596 |
(775) |
-5.8% |
|||||
|
Allocated net investment income |
15,553 |
13,913 |
14,975 |
14,339 |
12,592 |
11,954 |
11,321 |
(3,654) |
-24.4% |
44,440 |
35,867 |
(8,574) |
-19.3% |
|||||
|
Commissions and fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Prepaid Legal Services |
3,829 |
4,557 |
4,942 |
5,104 |
4,783 |
5,182 |
6,712 |
1,769 |
35.8% |
13,328 |
16,676 |
3,348 |
25.1% |
|||||
|
Auto and Homeowners Insurance |
1,672 |
2,263 |
1,985 |
2,194 |
1,787 |
2,101 |
2,436 |
452 |
22.8% |
5,920 |
6,324 |
405 |
6.8% |
|||||
|
Mortgage loans |
264 |
1,301 |
3,011 |
4,146 |
4,960 |
6,061 |
6,719 |
3,708 |
123.2% |
4,576 |
17,740 |
13,164 |
nm |
|||||
|
Other sales commissions |
1,813 |
2,231 |
2,061 |
2,301 |
2,041 |
2,291 |
2,129 |
67 |
3.3% |
6,106 |
6,461 |
355 |
5.8% |
|||||
|
Other, net |
954 |
865 |
922 |
977 |
836 |
1,040 |
1,101 |
179 |
19.4% |
2,742 |
2,977 |
235 |
8.6% |
|||||
|
Adjusted operating revenues |
28,566 |
29,400 |
32,516 |
32,412 |
31,288 |
32,607 |
34,746 |
2,229 |
6.9% |
90,483 |
98,641 |
8,158 |
9.0% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Benefits and claims |
6,249 |
4,236 |
3,957 |
7,178 |
4,826 |
5,859 |
3,728 |
(229) |
-5.8% |
14,443 |
14,413 |
(30) |
-0.2% |
|||||
|
Amortization of DAC |
166 |
346 |
295 |
251 |
246 |
264 |
347 |
53 |
17.8% |
807 |
857 |
50 |
6.2% |
|||||
|
Insurance commissions |
357 |
343 |
371 |
286 |
299 |
306 |
320 |
(51) |
-13.6% |
1,072 |
925 |
(146) |
-13.6% |
|||||
|
Insurance expenses |
1,544 |
1,447 |
1,309 |
1,347 |
1,391 |
1,327 |
1,367 |
58 |
4.5% |
4,300 |
4,086 |
(214) |
-5.0% |
|||||
|
Sales commissions |
3,723 |
4,985 |
5,779 |
6,430 |
6,434 |
7,185 |
8,290 |
2,510 |
43.4% |
14,487 |
21,908 |
7,421 |
51.2% |
|||||
|
Interest expense |
7,192 |
7,200 |
7,221 |
7,225 |
7,145 |
7,141 |
7,529 |
307 |
4.3% |
21,614 |
21,814 |
201 |
0.9% |
|||||
|
Adjusted other operating expenses |
28,972 |
22,544 |
25,597 |
27,818 |
35,211 |
27,413 |
26,695 |
1,098 |
4.3% |
77,112 |
89,319 |
12,207 |
15.8% |
|||||
|
Adjusted benefits and expenses |
48,203 |
41,102 |
44,529 |
50,535 |
55,551 |
49,495 |
48,277 |
3,748 |
8.4% |
133,834 |
153,323 |
19,489 |
14.6% |
|||||
|
Adjusted operating income before income taxes |
$(19,637) |
$(11,702) |
$(12,013) |
$(18,124) |
$(24,263) |
$(16,888) |
$(13,531) |
$(1,518) |
-12.6% |
$(43,351) |
$(54,682) |
$(11,331) |
-26.1% |
14 of 16
Investment Portfolio - Summary of Holdings |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
As of or for the period ended September 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 |
|
$ |
365,615 |
|
$ |
365,615 |
|
$ |
- |
|
|
12.1 |
% |
|
12.5 |
% |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Treasury |
|
|
21,848 |
|
|
21,344 |
|
|
504 |
|
|
0.7 |
% |
|
0.7 |
% |
|
1.78 |
% |
AAA |
|||||
|
Government |
|
|
245,569 |
|
|
235,679 |
|
|
9,891 |
|
|
8.1 |
% |
|
8.1 |
% |
|
2.94 |
% |
AA- |
|||||
|
Tax-Exempt Municipal |
|
|
44,544 |
|
|
42,267 |
|
|
2,277 |
|
|
1.5 |
% |
|
1.4 |
% |
|
2.74 |
% |
AA |
|||||
|
Public Corporate |
|
|
1,514,525 |
|
|
1,438,766 |
|
|
75,758 |
|
|
50.1 |
% |
|
49.3 |
% |
|
3.42 |
% |
BBB+ |
|||||
|
Mortgage Backed |
|
|
333,703 |
|
|
327,487 |
|
|
6,215 |
|
|
11.0 |
% |
|
11.2 |
% |
|
2.50 |
% |
AAA |
|||||
|
Asset Backed |
|
|
107,390 |
|
|
106,258 |
|
|
1,133 |
|
|
3.6 |
% |
|
3.6 |
% |
|
2.63 |
% |
A+ |
|||||
|
CMBS |
|
|
151,047 |
|
|
146,278 |
|
|
4,769 |
|
|
5.0 |
% |
|
5.0 |
% |
|
2.99 |
% |
AA- |
|||||
|
Private Placements |
|
|
197,283 |
|
|
190,573 |
|
|
6,710 |
|
|
6.5 |
% |
|
6.5 |
% |
|
4.17 |
% |
BBB |
|||||
|
Redeemable Preferred |
|
|
5,848 |
|
|
5,447 |
|
|
400 |
|
|
0.2 |
% |
|
0.2 |
% |
|
5.47 |
% |
BBB |
|||||
|
|
|
|
|
|
Total Fixed Income |
|
|
2,621,755 |
|
|
2,514,098 |
|
|
107,657 |
|
|
86.7 |
% |
|
86.2 |
% |
|
3.23 |
% |
A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities and Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Perpetual Preferred |
|
|
13,411 |
|
|
13,411 |
|
|
- |
|
|
0.4 |
% |
|
0.5 |
% |
|
|
|
|
|||||
|
Common Stock |
|
|
17,860 |
|
|
17,860 |
|
|
0 |
|
|
0.6 |
% |
|
0.6 |
% |
|
|
|
|
|||||
|
Mutual Fund |
|
|
5,960 |
|
|
5,960 |
|
|
- |
|
|
0.2 |
% |
|
0.2 |
% |
|
|
|
|
|||||
|
Derivatives |
|
|
9 |
|
|
9 |
|
|
- |
|
|
0.0 |
% |
|
0.0 |
% |
|
|
|
|
|||||
|
Other |
|
|
- |
|
|
- |
|
|
- |
|
|
0.0 |
% |
|
0.0 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
Total Equities |
|
|
37,240 |
|
|
37,240 |
|
|
0 |
|
|
1.2 |
% |
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Invested Assets |
|
$ |
3,024,610 |
|
$ |
2,916,953 |
|
$ |
107,657 |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Corporate Portfolio by Sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Non Cyclical |
|
$ |
182,750 |
|
$ |
174,408 |
|
$ |
8,342 |
|
|
12.1 |
% |
|
12.1 |
% |
|
|
|
|
|||||
|
Insurance |
|
|
176,358 |
|
|
168,072 |
|
|
8,286 |
|
|
11.6 |
% |
|
11.7 |
% |
|
|
|
|
|||||
|
Energy |
|
|
161,004 |
|
|
150,923 |
|
|
10,081 |
|
|
10.6 |
% |
|
10.5 |
% |
|
|
|
|
|||||
|
Reits |
|
|
141,964 |
|
|
134,305 |
|
|
7,659 |
|
|
9.4 |
% |
|
9.3 |
% |
|
|
|
|
|||||
|
Consumer Cyclical |
|
|
119,463 |
|
|
114,141 |
|
|
5,322 |
|
|
7.9 |
% |
|
7.9 |
% |
|
|
|
|
|||||
|
Technology |
|
|
117,890 |
|
|
111,430 |
|
|
6,460 |
|
|
7.8 |
% |
|
7.7 |
% |
|
|
|
|
|||||
|
Banking |
|
|
114,950 |
|
|
109,592 |
|
|
5,358 |
|
|
7.6 |
% |
|
7.6 |
% |
|
|
|
|
|||||
|
Capital Goods |
|
|
87,873 |
|
|
84,915 |
|
|
2,958 |
|
|
5.8 |
% |
|
5.9 |
% |
|
|
|
|
|||||
|
Electric |
|
|
85,042 |
|
|
80,900 |
|
|
4,142 |
|
|
5.6 |
% |
|
5.6 |
% |
|
|
|
|
|||||
|
Basic Industry |
|
|
77,498 |
|
|
73,429 |
|
|
4,068 |
|
|
5.1 |
% |
|
5.1 |
% |
|
|
|
|
|||||
|
Transportation |
|
|
64,473 |
|
|
61,746 |
|
|
2,727 |
|
|
4.3 |
% |
|
4.3 |
% |
|
|
|
|
|||||
|
Communications |
|
|
57,291 |
|
|
53,135 |
|
|
4,156 |
|
|
3.8 |
% |
|
3.7 |
% |
|
|
|
|
|||||
|
Brokerage |
|
|
55,449 |
|
|
51,800 |
|
|
3,649 |
|
|
3.7 |
% |
|
3.6 |
% |
|
|
|
|
|||||
|
Finance Companies |
|
|
42,229 |
|
|
40,666 |
|
|
1,563 |
|
|
2.8 |
% |
|
2.8 |
% |
|
|
|
|
|||||
|
Financial Other |
|
|
10,732 |
|
|
10,350 |
|
|
382 |
|
|
0.7 |
% |
|
0.7 |
% |
|
|
|
|
|||||
|
Industrial Other |
|
|
7,962 |
|
|
7,634 |
|
|
328 |
|
|
0.5 |
% |
|
0.5 |
% |
|
|
|
|
|||||
|
Utility Other |
|
|
5,538 |
|
|
5,386 |
|
|
152 |
|
|
0.4 |
% |
|
0.4 |
% |
|
|
|
|
|||||
|
Natural Gas |
|
|
3,804 |
|
|
3,609 |
|
|
195 |
|
|
0.3 |
% |
|
0.3 |
% |
|
|
|
|
|||||
|
Owned No Guarantee |
|
|
2,256 |
|
|
2,325 |
|
|
(69 |
) |
|
0.1 |
% |
|
0.2 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
Total Corporate portfolio |
|
$ |
1,514,525 |
|
$ |
1,438,766 |
|
$ |
75,758 |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-Maturity Securities - Effective Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
< 1 Yr. |
|
$ |
256,754 |
|
$ |
252,062 |
|
$ |
4,692 |
|
|
9.8 |
% |
|
10.0 |
% |
|
3.18 |
% |
|
||||
|
|
1-2 Yrs. |
|
|
257,291 |
|
|
248,255 |
|
|
9,036 |
|
|
9.8 |
% |
|
9.9 |
% |
|
3.55 |
% |
|
||||
|
|
2-5 Yrs. |
|
|
914,879 |
|
|
867,471 |
|
|
47,408 |
|
|
34.9 |
% |
|
34.5 |
% |
|
3.36 |
% |
|
||||
|
|
5-10 Yrs. |
|
|
907,086 |
|
|
873,601 |
|
|
33,485 |
|
|
34.6 |
% |
|
34.7 |
% |
|
3.01 |
% |
|
||||
|
|
> 10 Yrs. |
|
|
285,745 |
|
|
272,708 |
|
|
13,037 |
|
|
10.9 |
% |
|
10.8 |
% |
|
3.34 |
% |
|
||||
|
|
|
|
|
|
Total Fixed Income |
|
$ |
2,621,755 |
|
$ |
2,514,098 |
|
$ |
107,657 |
|
|
100.0 |
% |
|
100.0 |
% |
|
3.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
15 of 16
Investment Portfolio - Quality Ratings As of September 30, 2021 |
PRIMERICA, INC. Financial Supplement |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investment Portfolio Quality Ratings (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Amortized Cost |
|
% of Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Fixed Income portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
AAA |
|
$ |
453,451 |
|
|
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
AA |
|
|
277,258 |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
A |
|
|
593,750 |
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
BBB |
|
|
1,078,570 |
|
|
42.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Below Investment Grade |
|
|
102,746 |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
NA |
|
|
8,322 |
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
Total Fixed Income |
|
$ |
2,514,098 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost |
|
% of Total |
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost |
|
% of Total |
|
||||
Public Corporate asset class: |
|
|
|
|
|
|
|
|
|
Private Placement asset class: |
|
|
|
|
|
|
|
||||||||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
Rating |
|
|
|
|
|
|
|
||||||||||
|
AAA |
|
$ |
11,852 |
|
|
0.8 |
% |
|
|
|
AAA |
|
$ |
- |
|
|
— |
|
||||||||||
|
AA |
|
|
71,037 |
|
|
4.9 |
% |
|
|
|
AA |
|
|
5,479 |
|
|
2.9 |
% |
||||||||||
|
A |
|
|
362,515 |
|
|
25.2 |
% |
|
|
|
A |
|
|
24,906 |
|
|
13.1 |
% |
||||||||||
|
BBB |
|
|
907,734 |
|
|
63.1 |
% |
|
|
|
BBB |
|
|
147,312 |
|
|
77.3 |
% |
||||||||||
|
Below Investment Grade |
|
|
84,678 |
|
|
5.9 |
% |
|
|
|
Below Investment Grade |
|
|
12,876 |
|
|
6.8 |
% |
||||||||||
|
NA |
|
|
950 |
|
|
0.1 |
% |
|
|
|
NA |
|
|
- |
|
|
— |
|
||||||||||
|
|
|
|
|
|
Total Corporate |
|
$ |
1,438,766 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
Total Private |
|
$ |
190,573 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMBS asset class: |
|
|
|
|
|
|
|
|
|
Mortgage-Backed asset class: |
|
|
|
|
|
|
|
||||||||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
Rating |
|
|
|
|
|
|
|
||||||||||
|
AAA |
|
$ |
76,330 |
|
|
52.2 |
% |
|
|
|
AAA |
|
$ |
301,290 |
|
|
92.0 |
% |
||||||||||
|
AA |
|
|
2,933 |
|
|
2.0 |
% |
|
|
|
AA |
|
|
25,843 |
|
|
7.9 |
% |
||||||||||
|
A |
|
|
66,947 |
|
|
45.8 |
% |
|
|
|
A |
|
|
234 |
|
|
0.1 |
% |
||||||||||
|
BBB |
|
|
- |
|
|
— |
|
|
|
|
BBB |
|
|
- |
|
|
— |
|
||||||||||
|
Below Investment Grade |
|
|
68 |
|
|
0.0 |
% |
|
|
|
Below Investment Grade |
|
|
87 |
|
|
0.0 |
% |
||||||||||
|
NA |
|
|
- |
|
|
— |
|
|
|
|
NA |
|
|
33 |
|
|
0.0 |
% |
||||||||||
|
|
|
|
|
|
Total CMBS |
|
$ |
146,278 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
Total Mortgage-Backed |
|
$ |
327,487 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Backed asset class: |
|
|
|
|
|
|
|
|
|
Treasury & Government asset classes: |
|
|
|
|
|
|
|
||||||||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
Rating |
|
|
|
|
|
|
|
||||||||||
|
AAA |
|
$ |
16,753 |
|
|
15.8 |
% |
|
|
|
AAA |
|
$ |
45,520 |
|
|
17.7 |
% |
||||||||||
|
AA |
|
|
6,280 |
|
|
5.9 |
% |
|
|
|
AA |
|
|
133,657 |
|
|
52.0 |
% |
||||||||||
|
A |
|
|
71,850 |
|
|
67.6 |
% |
|
|
|
A |
|
|
62,189 |
|
|
24.2 |
% |
||||||||||
|
BBB |
|
|
1,895 |
|
|
1.8 |
% |
|
|
|
BBB |
|
|
12,758 |
|
|
5.0 |
% |
||||||||||
|
Below Investment Grade |
|
|
2,139 |
|
|
2.0 |
% |
|
|
|
Below Investment Grade |
|
|
2,898 |
|
|
1.1 |
% |
||||||||||
|
NA |
|
|
7,340 |
|
|
6.9 |
% |
|
|
|
NA |
|
|
0 |
|
|
0.0 |
% |
||||||||||
|
|
|
|
|
|
Total Asset-Backed |
|
$ |
106,258 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
Total Treasury & Government |
|
$ |
257,022 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAIC Designations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
1,149,949 |
|
|
48.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
2 |
|
|
1,009,401 |
|
|
46.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
3 |
|
|
98,718 |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
4 |
|
|
7,591 |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
5 |
|
|
685 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
6 |
|
|
4,244 |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
U.S. Insurer Fixed Income (2) |
|
|
2,270,589 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (3) |
|
|
280,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents |
|
|
365,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
Total Invested Assets |
|
$ |
2,916,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
16 of 16
Investment Portfolio - Supplemental Data and Trends |
PRIMERICA, INC. Financial Supplement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOY Q3 |
|
||||
(Dollars in thousands) |
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 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 |
|
$ |
19,860 |
|
$ |
(1,022 |
) |
-4.9% |
|
||||||
|
Fixed-maturity securities (held-to-maturity) |
|
13,472 |
|
|
14,074 |
|
|
14,704 |
|
|
15,223 |
|
|
15,146 |
|
|
15,495 |
|
|
15,741 |
|
|
1,037 |
|
7.1% |
|
||||||
|
Equity Securities |
|
451 |
|
|
461 |
|
|
433 |
|
|
406 |
|
|
391 |
|
|
411 |
|
|
413 |
|
|
(20 |
) |
-4.6% |
|
||||||
|
Deposit asset underlying 10% reinsurance treaty |
|
1,830 |
|
|
1,394 |
|
|
1,694 |
|
|
1,330 |
|
|
1,368 |
|
|
1,238 |
|
|
987 |
|
|
(707 |
) |
-41.7% |
|
||||||
|
Deposit asset - Mark to Market |
|
(6,379 |
) |
|
2,259 |
|
|
1,165 |
|
|
960 |
|
|
(793 |
) |
|
(170 |
) |
|
(640 |
) |
|
(1,805 |
) |
-154.9% |
|
||||||
|
Policy loans and other invested assets |
|
189 |
|
|
541 |
|
|
242 |
|
|
272 |
|
|
231 |
|
|
98 |
|
|
289 |
|
|
47 |
|
19.4% |
|
||||||
|
Cash & cash equivalents |
|
843 |
|
|
143 |
|
|
114 |
|
|
103 |
|
|
119 |
|
|
156 |
|
|
96 |
|
|
(18 |
) |
-15.8% |
|
||||||
|
|
|
|
|
Total investment income |
|
31,190 |
|
|
39,085 |
|
|
39,234 |
|
|
39,219 |
|
|
36,483 |
|
|
37,383 |
|
|
36,746 |
|
|
(2,488 |
) |
-6.3% |
|
||
|
Investment expenses |
|
2,298 |
|
|
2,300 |
|
|
1,577 |
|
|
1,265 |
|
|
1,284 |
|
|
1,353 |
|
|
1,004 |
|
|
(573 |
) |
-36.3% |
|
||||||
|
Interest Expense on Surplus Note |
|
13,472 |
|
|
14,074 |
|
|
14,704 |
|
|
15,223 |
|
|
15,146 |
|
|
15,495 |
|
|
15,741 |
|
|
1,037 |
|
7.1% |
|
||||||
|
|
|
|
|
Net investment income |
$ |
15,420 |
|
$ |
22,710 |
|
$ |
22,953 |
|
$ |
22,731 |
|
$ |
20,052 |
|
$ |
20,535 |
|
$ |
20,001 |
|
$ |
(2,952 |
) |
-12.9% |
|
||
|
|
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 Q3 |
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Q1 2021 |
|
Q2 2021 |
|
Q3 2021 |
|
% Pt Change |
|
|
|
|
||||||||
Fixed Income Portfolio Quality Ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
AAA |
|
22.9 |
% |
|
21.5 |
% |
|
19.6 |
% |
|
18.7 |
% |
|
16.6 |
% |
|
16.5 |
% |
|
18.0 |
% |
|
-1.6 |
% |
|
|
|
|||||
|
AA |
|
12.1 |
% |
|
11.6 |
% |
|
12.8 |
% |
|
12.7 |
% |
|
12.2 |
% |
|
11.6 |
% |
|
11.0 |
% |
|
-1.7 |
% |
|
|
|
|||||
|
A |
|
22.9 |
% |
|
22.3 |
% |
|
21.8 |
% |
|
22.3 |
% |
|
23.0 |
% |
|
22.1 |
% |
|
23.6 |
% |
|
1.8 |
% |
|
|
|
|||||
|
BBB |
|
38.9 |
% |
|
40.4 |
% |
|
42.0 |
% |
|
42.3 |
% |
|
44.0 |
% |
|
45.5 |
% |
|
42.9 |
% |
|
0.9 |
% |
|
|
|
|||||
|
Below Investment Grade |
|
3.1 |
% |
|
4.0 |
% |
|
3.8 |
% |
|
3.9 |
% |
|
4.1 |
% |
|
4.2 |
% |
|
4.1 |
% |
|
0.3 |
% |
|
|
|
|||||
|
NA |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.3 |
% |
|
0.2 |
% |
|
|
|
|||||
|
|
|
|
|
Total Fixed Income |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rating by amortized cost |
A |
|
A |
|
A |
|
A |
|
A- |
|
A- |
|
A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2021 |
|
|
|
As of September 30, 2021 |
|
|
|
|
|
|
As of September 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 |
$ |
15,769 |
|
$ |
15,306 |
|
AAA |
|
Canada |
$ |
84,505 |
|
$ |
78,714 |
|
|
|
AAA |
$ |
733 |
|
$ |
733 |
|
|||||||
|
2 |
TC Energy Corp |
|
12,925 |
|
|
12,597 |
|
BBB+ |
|
Australia |
|
32,044 |
|
|
30,483 |
|
|
|
AA |
|
8,881 |
|
|
8,642 |
|
|||||||
|
3 |
ConocoPhillips |
|
12,449 |
|
|
11,057 |
|
A- |
|
United Kingdom |
|
27,120 |
|
|
25,942 |
|
|
|
A |
|
8,641 |
|
|
8,374 |
|
|||||||
|
4 |
Enbridge Inc |
|
12,009 |
|
|
11,650 |
|
BBB+ |
|
Cayman Islands |
|
13,340 |
|
|
13,219 |
|
|
|
BBB |
|
11,749 |
|
|
11,317 |
|
|||||||
|
5 |
Province of Alberta Canada |
|
11,766 |
|
|
11,377 |
|
A |
|
France |
|
12,518 |
|
|
12,136 |
|
|
|
Below Investment Grade |
|
2,941 |
|
|
2,898 |
|
|||||||
|
6 |
Province of Quebec Canada |
|
11,251 |
|
|
10,330 |
|
AA- |
|
Japan |
|
10,770 |
|
|
10,281 |
|
|
|
NA |
|
— |
|
|
— |
|
|||||||
|
7 |
Western & Southern Mutual Holdings |
|
10,417 |
|
|
9,641 |
|
AA- |
|
Mexico |
|
10,453 |
|
|
10,152 |
|
|
|
|
Total |
$ |
32,944 |
|
$ |
31,964 |
|
||||||
|
8 |
Province of Ontario Canada |
|
10,389 |
|
|
10,024 |
|
A+ |
|
Ireland |
|
10,165 |
|
|
10,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
9 |
Capital One Financial Corp |
|
10,280 |
|
|
9,874 |
|
BBB |
|
Bermuda |
|
9,387 |
|
|
8,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
10 |
Fairfax Financial Holdings Ltd |
|
10,122 |
|
|
9,880 |
|
BBB- |
|
Germany |
|
8,926 |
|
|
8,796 |
|
|
|
Non-Government Investments (1) |
|
|
|
|
|
|
|||||||
|
11 |
Wells Fargo & Co |
|
9,459 |
|
|
9,143 |
|
A- |
|
Netherlands |
|
7,086 |
|
|
5,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
12 |
Entergy Corp |
|
9,285 |
|
|
9,069 |
|
BBB+ |
|
Brazil |
|
4,551 |
|
|
4,488 |
|
|
|
AAA |
$ |
2,999 |
|
$ |
2,999 |
|
|||||||
|
13 |
AbbVie Inc |
|
8,825 |
|
|
8,683 |
|
BBB+ |
|
Israel |
|
3,960 |
|
|
3,552 |
|
|
|
AA |
|
6,270 |
|
|
6,223 |
|
|||||||
|
14 |
Blackstone Inc |
|
8,420 |
|
|
8,274 |
|
A+ |
|
Luxembourg |
|
3,655 |
|
|
3,500 |
|
|
|
A |
|
58,106 |
|
|
55,484 |
|
|||||||
|
15 |
Province of British Columbia Canada |
|
8,223 |
|
|
7,987 |
|
AAA |
|
Supra-National |
|
3,286 |
|
|
3,213 |
|
|
|
BBB |
|
160,715 |
|
|
151,510 |
|
|||||||
|
16 |
UDR Inc |
|
8,178 |
|
|
8,049 |
|
BBB+ |
|
Emerging Markets (2) |
|
14,713 |
|
|
14,394 |
|
|
|
Below Investment Grade |
|
14,562 |
|
|
14,406 |
|
|||||||
|
17 |
Discovery Inc |
|
8,086 |
|
|
6,973 |
|
BBB- |
|
All Other |
|
|
19,118 |
|
|
18,370 |
|
|
|
NA |
|
— |
|
|
— |
|
||||||
|
18 |
CI Financial Corp |
|
8,038 |
|
|
7,804 |
|
BBB |
|
|
Total |
$ |
275,598 |
|
$ |
262,586 |
|
|
|
|
Total |
$ |
242,653 |
|
$ |
230,621 |
|
|||||
|
19 |
Tokyo Century Corp |
|
8,027 |
|
|
7,975 |
|
BBB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
20 |
CVS Health Corp |
|
7,994 |
|
|
7,930 |
|
BBB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
21 |
Simon Property Group Inc |
|
7,942 |
|
|
7,362 |
|
A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
22 |
Truist Financial Corp |
|
7,933 |
|
|
7,498 |
|
A- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
23 |
Brookfield Asset Management Inc |
|
7,891 |
|
|
7,238 |
|
A- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
24 |
Apple Inc |
|
7,871 |
|
|
7,748 |
|
AA+ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
25 |
City of Toronto Canada |
|
7,785 |
|
|
7,423 |
|
AA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
Total |
$ |
241,335 |
|
$ |
230,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of total fixed income portfolio |
|
8.0 |
% |
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
17 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 |
|
Q3 2021 |
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Recruits |
|
262,732 |
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303,867 |
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|
290,886 |
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282,207 |
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400,345 |
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84,762 |
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133,123 |
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101,861 |
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80,599 |
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94,633 |
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89,285 |
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91,884 |
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Life-insurance licensed sales force, beginning of period |
|
106,710 |
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|
116,827 |
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|
126,121 |
|
|
130,736 |
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130,522 |
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130,522 |
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|
130,095 |
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134,157 |
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136,306 |
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134,907 |
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132,030 |
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132,041 |
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New life-licensed representatives |
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44,724 |
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48,535 |
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48,041 |
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44,739 |
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|
48,106 |
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10,599 |
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|
12,250 |
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|
13,138 |
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|
12,119 |
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10,833 |
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|
10,112 |
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9,381 |
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Non-renewal and terminated representatives |
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(34,607 |
) |
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(39,241 |
) |
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(43,426 |
) |
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(44,953 |
) |
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(43,721 |
) |
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(11,026 |
) |
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(8,188 |
) |
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(10,989 |
) |
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(13,518 |
) |
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(13,710 |
) |
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(10,101 |
) |
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(11,399 |
) |
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Life-insurance licensed sales force, end of period |
|
116,827 |
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126,121 |
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130,736 |
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130,522 |
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134,907 |
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130,095 |
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134,157 |
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136,306 |
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134,907 |
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132,030 |
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132,041 |
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130,023 |
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Issued term life policies |
|
298,244 |
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312,799 |
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301,589 |
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287,809 |
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352,868 |
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71,318 |
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94,044 |
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100,199 |
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87,307 |
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82,667 |
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|
90,071 |
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75,914 |
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Issued term life face amount |
$ |
89,869 |
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$ |
95,635 |
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$ |
95,209 |
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$ |
93,994 |
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$ |
109,436 |
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$ |
23,221 |
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$ |
27,754 |
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$ |
30,104 |
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$ |
28,357 |
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$ |
26,643 |
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$ |
29,981 |
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$ |
26,219 |
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Term life face amount in force, beginning of period |
$ |
693,194 |
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$ |
728,385 |
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$ |
763,831 |
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$ |
781,041 |
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$ |
808,262 |
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$ |
808,262 |
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$ |
804,512 |
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$ |
821,998 |
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$ |
840,227 |
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$ |
858,818 |
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$ |
869,643 |
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$ |
886,519 |
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Issued term life face amount |
|
89,869 |
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|
95,635 |
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|
95,209 |
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|
93,994 |
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|
109,436 |
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23,221 |
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27,754 |
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30,104 |
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28,357 |
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26,643 |
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|
29,981 |
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|
26,219 |
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Terminated term life face amount |
|
(57,238 |
) |
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(65,958 |
) |
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(70,291 |
) |
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(71,519 |
) |
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(60,848 |
) |
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(18,294 |
) |
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(14,315 |
) |
|
(13,733 |
) |
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(14,506 |
) |
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(17,240 |
) |
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(14,706 |
) |
|
(16,241 |
) |
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Foreign currency impact, net |
|
2,560 |
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|
5,769 |
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(7,708 |
) |
|
4,746 |
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|
1,968 |
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(8,676 |
) |
|
4,046 |
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|
1,859 |
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|
4,740 |
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|
1,422 |
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|
1,602 |
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(2,480 |
) |
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Term life face amount in force, end of period |
$ |
728,385 |
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$ |
763,831 |
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$ |
781,041 |
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$ |
808,262 |
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$ |
858,818 |
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$ |
804,512 |
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$ |
821,998 |
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$ |
840,227 |
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$ |
858,818 |
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$ |
869,643 |
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$ |
886,519 |
|
$ |
894,018 |
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Estimated annualized issued term life premium |
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Premium from new policies |
$ |
237.9 |
|
$ |
255.4 |
|
$ |
250.8 |
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$ |
244.8 |
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$ |
303.6 |
|
$ |
61.5 |
|
$ |
77.7 |
|
$ |
86.0 |
|
$ |
78.4 |
|
$ |
74.5 |
|
$ |
82.6 |
|
$ |
70.7 |
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Additions and increases in premium |
|
46.4 |
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|
49.5 |
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|
55.2 |
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|
60.2 |
|
|
68.9 |
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|
15.0 |
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|
17.8 |
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|
17.9 |
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|
18.1 |
|
|
18.0 |
|
|
20.3 |
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|
19.5 |
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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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$ |
90.2 |
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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 |
|
$ |
2,790.4 |
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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 |
|
$ |
92,652 |
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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 |
|
$ |
337.6 |
|
18 of 16
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Document and Entity Information |
Nov. 08, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Nov. 08, 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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