10% increase in new life-licensed
representatives fuels 4% growth in life-licensed sales force to
nearly 138,000
Issued nearly 97,000 new Term Life policies,
up 9%; total face amount issued during the quarter of $32 billion,
up 16%
Investment and Savings Products results
improving as equity markets strengthened over the last few
quarters
Net earnings per diluted share (EPS) of
$3.97 increased 20%; return on stockholders’ equity (ROE) of
29.2%
Diluted adjusted operating EPS of $3.99
increased 18%; adjusted net operating income return on adjusted
stockholders’ equity (ROAE) of 26.7%
Declared dividend of $0.65 per share,
payable on September 11, 2023, and repurchased $111 million of
common stock during the quarter
Primerica, Inc. (NYSE: PRI) today announced financial results
for the quarter ended June 30, 2023. Total revenues of $688.4
million increased 3% compared to the second quarter of 2022. Net
income attributable to Primerica of $144.5 million increased 13%,
while earnings per diluted share of $3.97 increased 20% compared to
the same period in the prior year. ROE was 29.2% for the
quarter.
Adjusted operating revenues of $689.6 million increased 3%
compared to the second quarter of 2022. Adjusted net operating
income of $145.4 million increased 11%, while adjusted operating
earnings per diluted share of $3.99 increased 18% compared to the
same period in the prior year. ROAE was 26.7% for the quarter.
During the second quarter, the Company identified immaterial
errors in previously presented financial information in connection
with the newly adopted accounting standard for Long-Duration
Insurance Contracts (“LDTI”). Accordingly, financial information
prior to the second quarter of 2023 has been revised as reflected
in the fourth quarter 2022 Revised Restated Financial Supplement
and the second quarter 2023 Financial Supplement, which are
furnished as exhibits to the Current Report on Form 8-K dated
August 7, 2023. Prior year comparisons throughout this release
reflect the revised results. A table summarizing the impact of the
changes on second quarter 2022 results is included at the end of
this release.
Second quarter results reflect the benefit of continued,
predictable growth in the Term Life segment. Results in the
Investment and Savings Product segment improved as equity market
recovery positively impacted client asset values. We believe
inflationary pressure on middle-income families remained a headwind
to new savings for retirement and term life policy retention.
Senior Health segment results, which are typically weak in the
second quarter due to limited sales opportunities in the market,
also improved year-over-year since the Company did not recognize a
negative tail revenue adjustment in the current year period, while
it did so in the prior year period. The effect of higher interest
rates on the invested asset portfolio benefitted the Corporate and
Other Distributed Product segment.
“Second quarter results reflect our distribution strength and
the depth of field leadership,” said Glenn Williams, Chief
Executive Officer. “We continue to be a much-needed resource to
guide middle-income households on their path toward financial
security.”
Second Quarter Distribution & Segment Results
Distribution Results
Q2 2023
Q2 2022
% Change
Adjusted Q2 2022
% Change
Life-Licensed Sales Force
137,806
132,149
4
%
Recruits
86,124
70,215
23
%
New Life-Licensed Representatives
12,638
11,529
10
%
Life Insurance Policies Issued (1)
96,953
76,946
N/A
89,316
9
%
Life Productivity (1) (2)
0.24
0.20
N/A
0.23
*
Issued term life face amount ($ billions)
(3)
$
32.2
$
27.7
16
%
ISP Product Sales ($ billions)
$
2.4
$
2.7
(11
)%
Average Client Asset Values ($
billions)
$
88.8
$
88.0
1
%
Senior Health Submitted Policies (4)
13,885
19,652
(29
)%
Senior Health Approved Policies (5)
12,915
17,925
(28
)%
Closed U.S. Mortgage Volume ($ million
brokered)
$
82.2
$
152.7
(46
)%
______________________________
(1)
Previously reported numbers for the three
months ended June 30, 2022 have been adjusted as a result of a
product change made near the end of 2022, which modified how
policies are structured in relation to individual lives. To make
year-over year comparisons more consistent, we have provided
estimates for the prior year period.
(2)
Life productivity equals policies issued
divided by the average number of life insurance licensed
representatives per month.
(3)
Includes face amount on issued term life
policies, additional riders added to existing policies, and face
increases under increasing benefit riders.
(4)
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.
(5)
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
Segment Results
Q2 2023
Q2 2022
% Change
($ in thousands)
Adjusted Operating Revenues:
Term Life Insurance
$
411,873
$
398,421
3
%
Investment and Savings Products
214,509
222,416
(4
)%
Senior Health
14,890
11,814
26
%
Corporate and Other Distributed Products
(1)
48,293
39,177
23
%
Total adjusted operating revenues
(1)
$
689,565
$
671,828
3
%
Adjusted Operating Income (Loss) before
income taxes:
Term Life Insurance
$
140,115
$
128,579
9
%
Investment and Savings Products
59,583
63,017
(5
)%
Senior Health (1)
(6,033
)
(12,955
)
53
%
Corporate and Other Distributed Products
(1)
(3,589
)
(9,093
)
61
%
Total adjusted operating income before
income taxes (1)
$
190,076
$
169,548
12
%
______________________________
(1)
See the Non-GAAP Financial Measures
section and the Adjusted Operating Results reconciliation tables at
the end of this release for additional information.
Life Insurance Licensed Sales Force
The value of Primerica’s entrepreneurial opportunity continues
to drive recruiting momentum and the number of new recruits during
the quarter increased 23% compared to the same period in 2022. The
Company and its field leaders’ efforts to help new recruits
successfully navigate the licensing process is reflected in the
strong licensing results. During the quarter, a total of 12,638
individuals obtained a new life license, a 10% increase compared to
the prior year period. As of June 30, 2023, the Company had a total
of 137,806 independent life-licensed representatives, representing
a 4% increase compared to the end of June 2022.
Term Life Insurance
Our new term life products launched late last year continued to
be very well received with 96,953 new term life insurance policies
issued during the quarter, up 9% compared to the estimated number
of policies issued in the second quarter of 2022 (as adjusted to
reflect a comparable one life per policy basis). Issued term life
face amount, which captures the number of policies issued and the
face amount of both new policies issued and additions to in-force
policies, increased 16% to $32.2 billion compared to $27.7 billion
in the prior year period. Productivity at 0.24 policies per
life-licensed representative per month during the quarter compares
favorably to 0.23 policies in the prior year period.
Year-over-year, revenues of $411.9 million and net premiums of
$399.6 million increased 3% and 4%, respectively, while adjusted
direct premiums increased 6%. The higher number of policies issued
offset the negative impact of lapses on adjusted direct premiums.
The Company believes inflation continues to pressure middle-income
families, resulting in higher policy lapses versus historical
levels.
Pre-tax income of $140.1 million increased 9% year-over-year.
The second quarter benefits and claims ratio of 57.6% and the DAC
amortization ratio of 11.8% are both consistent with the prior year
period revised results. The pre-tax margin at 23.1% during the
quarter was higher than the prior year period’s margin of 22.5% as
the second quarter of 2022 included elevated costs associated with
sales force leadership events from delays caused by COVID.
Investment and Savings Products
Equity markets continued to recover during the quarter with
ending client asset values of $91.6 billion, up 11%, and average
client asset values of $88.8 billion, up 1% year-over-year. While
total product sales of $2.4 billion declined 11% compared to the
same period in 2022, we believe sales trends will improve with
market stability. Redemption activity remained below 3% of
beginning asset levels as clients continue to focus on their
long-term goals, resulting in net client inflows during the quarter
of $542 million.
Revenues of $214.5 million decreased 4% year-over-year, while
operating income of $59.6 million decreased 5%. Both sales-based
commission revenues and expenses decreased 15% and
revenue-generating sales decreased 12%. While average client asset
values increased 1%, asset-based revenues increased 5% as the
Company continues to benefit from higher client asset values in
managed accounts and in mutual fund sales in Canada under the
Principal Distributor model introduced in June 2022. The change in
asset-based commission expenses is consistent with asset-based
revenues, excluding revenue on Canadian Segregated funds for which
the commission expense is recognized as insurance commissions and
amortized with DAC.
Senior Health
Approximately 13,000 policies were approved during the second
quarter, which reflected lower activity as typically seen following
the close of the Open Enrollment Period on March 31 and the
Company’s intentional efforts to control growth as it continues to
evaluate emerging profitability dynamics. The lifetime value of
commissions per approved policy (“LTV”) was $880, while contract
acquisition costs per approved policy (“CAC”) was $976. CAC is
typically higher than LTV during the second quarter as seasonably
lower sales volume limit fixed costs absorption. The second quarter
LTV/CAC ratio was 0.9x.
The Company remains disciplined in moving the Senior Health
business toward profitability. The second quarter operating loss of
$6.0 million compares favorably to an operating loss of $13.0
million in the prior year period, which included a $5.4 million
negative tail revenue adjustment. The Company did not recognize a
tail revenue adjustment this quarter. Consistent with prior
disclosure, the Company does not anticipate a need to provide
capital to the segment in 2023.
Corporate and Other Distributed Products
During the second quarter of 2023, the segment recorded an
operating loss of $3.6 million compared to an operating loss of
$9.1 million in the prior year period. The improvement was driven
by higher revenues, primarily due to a $10.7 million increase in
adjusted net investment income as interest rates have increased
significantly since the prior year period.
Taxes
The effective tax rate was 23.5% in the second quarter of 2023,
up from 22.9% in the second quarter of 2022 as a result of slightly
higher state income taxes.
Capital
During the second quarter, the Company repurchased $110.8
million of common stock, for a total of $196.0 million year-to-date
and expects to complete the repurchase of $375 million of common
stock during 2023 as authorized by the Board of Directors. The
Board of Directors has also approved a dividend of $0.65 per share,
payable on September 11, 2023, to stockholders of record on August
21, 2023.
Primerica has a strong balance sheet, including invested assets
and cash at the holding company of $342 million. Primerica Life
Insurance Company’s statutory risk-based capital (RBC) ratio was
estimated to be approximately 445% as of June 30, 2023.
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
investment gains (losses) and fair value mark-to-market (“MTM”)
investment adjustments, including credit impairments, for all
periods presented. We exclude 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 transaction-related expenses/recoveries associated
with the purchase of e-TeleQuote Insurance, Inc. and subsidiaries
(collectively, “e-TeleQuote”), adjustments to share-based
compensation expense for shares exchanged in the business
combination, and non-cash goodwill impairment charges. We exclude
e-TeleQuote transaction-related expenses/recoveries and non-cash
goodwill impairment charges 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 which were acquired for no additional
consideration. 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. Adjusted stockholders’ equity also excludes the
difference in future policy benefits calculated using the current
discount rate and future policy benefits calculated using the
locked-in discount rate at contract issuance recognized in
accumulated other comprehensive income. We exclude the impact from
the difference in the discount rate in measuring adjusted
stockholders' equity as such difference is caused by market
movements in interest rates that are not permanent and may not
align with the cash flows we will ultimately incur when policy
benefits are settled.
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
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, August 8, 2023, 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.
Forward-Looking Statements
Except for historical information contained in this press
release, the statements in this release are forward-looking and
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements contain known and unknown risks and uncertainties that
may cause our actual results in future periods to differ materially
from anticipated or projected results. Those risks and
uncertainties include, among others, our failure to continue to
attract and license new recruits, retain sales representatives or
license or maintain the licensing of sales representatives; new
laws or regulations that could apply to our distribution model,
which could require us to modify our distribution structure;
changes to the independent contractor status of sales
representatives; our or sales representatives’ violation of or
non-compliance with laws and regulations; any failure to protect
the confidentiality of client information; differences between our
actual experience and our expectations regarding mortality or
persistency as reflected in the pricing for our insurance policies;
changes in federal, state and provincial legislation or regulation
that affects our insurance, investment product and mortgage
businesses; our failure to meet regulatory capital ratios or other
minimum capital and surplus requirements; a significant downgrade
by a ratings organization; the failure of our reinsurers or reserve
financing counterparties to perform their obligations; the failure
of our investment products to remain competitive with other
investment options or the loss of our relationship with one or more
of the companies whose investment products we provide; litigation
and regulatory investigations and actions concerning us or sales
representatives; heightened standards of conduct or more stringent
licensing requirements for sales representatives; inadequate
policies and procedures regarding suitability review of client
transactions; revocation of our subsidiary’s status as a non-bank
custodian; economic down cycles that impact our business, financial
condition and results of operations; major public health pandemics,
epidemics or outbreaks or other catastrophic events; the failure of
our information technology systems, breach of our information
security, failure of our business continuity plan or the loss of
the Internet; the effects of credit deterioration and interest rate
fluctuations on our invested asset portfolio and other assets;
incorrectly valuing our investments; changes in accounting
standards may impact how we record and report our financial
condition and results of operations; the inability of our
subsidiaries to pay dividends or make distributions; litigation and
regulatory investigations and actions; a significant change in the
competitive environment in which we operate; the loss of key
personnel or sales force leaders; any acquisition or investment in
businesses that do not perform as we expect or are difficult to
integrate; due to our very limited history with e-TeleQuote, we
cannot be certain that its business will be successful or that we
will successfully address any risks not known to us that may become
material; a failure by e-TeleQuote to comply with the requirements
of the United States government’s Centers for Medicare and Medicaid
Services and those of its carrier partners; legislative or
regulatory changes to Medicare Advantage or changes to the
implementing guidance by the Centers for Medicare and Medicaid
Services; e-TeleQuote’s inability to acquire or generate leads on
commercially viable terms, convert leads to sales or if customer
policy retention is lower than assumed; e-TeleQuote’s inability to
enroll individuals during the Medicare annual election period; 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 over 5.7 million
lives and had over 2.8 million client investment accounts on
December 31, 2022. Primerica, through its insurance company
subsidiaries, was the #3 issuer of Term Life insurance coverage in
the United States and Canada in 2022. 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”.
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Unaudited)
June 30, 2023
December 31, 2022
(In thousands)
Assets
Investments:
Fixed-maturity securities
available-for-sale, at fair value
$
2,541,310
$
2,495,456
Fixed-maturity security held-to-maturity,
at amortized cost
1,433,520
1,444,920
Short-term investments available-for-sale,
at fair value
21,576
69,406
Equity securities, at fair value
33,601
35,404
Trading securities, at fair value
18,379
3,698
Policy loans and other invested assets
49,605
48,713
Total investments
4,097,991
4,097,597
Cash and cash equivalents
561,585
489,240
Accrued investment income
22,928
20,885
Reinsurance recoverables
3,084,520
3,209,540
Deferred policy acquisition costs, net
3,319,844
3,188,502
Renewal commissions receivable
191,224
200,043
Agent balances, due premiums and other
receivables
269,369
254,276
Goodwill
127,707
127,707
Intangible assets
180,275
185,525
Income taxes
107,697
93,632
Operating lease right-of-use assets
57,040
40,500
Other assets
372,733
428,259
Separate account assets
2,358,823
2,305,717
Total assets
$
14,751,736
$
14,641,423
Liabilities and Stockholders'
Equity
Liabilities:
Future policy benefits
$
6,491,564
$
6,297,906
Unearned and advance premiums
16,283
15,422
Policy claims and other benefits
payable
495,141
538,250
Other policyholders' funds
458,774
483,769
Notes payable
593,307
592,905
Surplus note
1,433,101
1,444,469
Income taxes
169,487
204,018
Operating lease liabilities
62,309
45,995
Other liabilities
579,840
580,780
Payable under securities lending
77,643
100,938
Separate account liabilities
2,358,823
2,305,717
Total liabilities
12,736,272
12,610,169
Stockholders' equity
Common stock
358
368
Paid-in capital
-
-
Retained earnings
2,190,223
2,153,617
Effect of change in discount rate
assumptions on the liability for future policy benefits, net of
income tax
55,386
130,416
Net unrealized gains (losses) and foreign
currency translation, net of income tax
(230,503
)
(253,147
)
Total stockholders' equity
2,015,464
2,031,254
Total liabilities and stockholders'
equity
$
14,751,736
$
14,641,423
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Income
(Unaudited)
Three months ended June
30,
2023
2022
(In thousands, except
per-share amounts)
Revenues:
Direct premiums
$
828,296
$
808,894
Ceded premiums
(425,266
)
(419,048
)
Net premiums
403,030
389,846
Commissions and fees
233,130
240,688
Net investment income
32,398
21,284
Investment gains (losses)
(328
)
(1,892
)
Other, net
20,155
18,756
Total revenues
688,385
668,682
Benefits and expenses:
Benefits and claims
148,911
148,369
Future policy benefits remeasurement
(gain)/loss
(1,867
)
(100
)
Amortization of deferred policy
acquisition costs
68,110
64,830
Sales commissions
113,623
119,763
Insurance expenses
59,093
59,461
Insurance commissions
9,142
7,594
Contract acquisition costs
12,602
19,384
Interest expense
6,686
6,814
Other operating expenses
83,189
79,730
Total benefits and expenses
499,489
505,845
Income before income taxes
188,896
162,837
Income taxes
44,392
37,265
Net income
144,504
125,572
Net income attributable to noncontrolling
interests
-
(2,384
)
Net income attributable to Primerica,
Inc.
$
144,504
$
127,956
Earnings per share attributable to
common stockholders:
Basic earnings per share
$
3.97
$
3.32
Diluted earnings per share
$
3.97
$
3.31
Weighted-average shares used in
computing earnings per share:
Basic
36,215
38,386
Diluted
36,290
38,501
PRIMERICA, INC. AND
SUBSIDIARIES
Consolidated Adjusted
Operating Results Reconciliation
(Unaudited – in thousands,
except per share amounts)
Three months ended June
30,
2023
2022
% Change
Total revenues
$
688,385
$
668,682
3
%
Less: Investment gains (losses)
(328
)
(1,892
)
Less: 10% deposit asset MTM included in
NII
(852
)
(1,254
)
Adjusted operating revenues
$
689,565
$
671,828
3
%
Income before income taxes
$
188,896
$
162,837
16
%
Less: Investment gains (losses)
(328
)
(1,892
)
Less: 10% deposit asset MTM included in
NII
(852
)
(1,254
)
Less: e-TeleQuote transaction-related
expenses
-
2,892
Less: Equity comp for awards exchanged
during acquisition
-
(3,328
)
Less: Noncontrolling interest
-
(3,129
)
Adjusted operating income before income
taxes
$
190,076
$
169,548
12
%
Net income
$
144,504
$
125,572
15
%
Less: Investment gains (losses)
(328
)
(1,892
)
Less: 10% deposit asset MTM included in
NII
(852
)
(1,254
)
Less: e-TeleQuote transaction-related
expenses
-
2,892
Less: Equity comp for awards exchanged
during acquisition
-
(3,328
)
Less: Noncontrolling interest
-
(3,129
)
Less: Tax impact of preceding items
277
1,573
Adjusted net operating income
$
145,407
$
130,710
11
%
Diluted earnings per share (1)
$
3.97
$
3.31
20
%
Less: Net after-tax impact of operating
adjustments
(0.02
)
(0.07
)
Diluted adjusted operating earnings per
share (1)
$
3.99
$
3.38
18
%
______________________________ (1) Percentage change in earnings
per share is calculated prior to rounding per share amounts.
TERM LIFE INSURANCE
SEGMENT
Adjusted Premiums
Reconciliation
(Unaudited – in
thousands)
Three months ended June
30,
2023
2022
% Change
Direct premiums
$
823,297
$
803,453
2
%
Less: Premiums ceded to IPO coinsurers
216,740
231,805
Adjusted direct premiums
606,557
571,648
6
%
Ceded premiums
(423,704
)
(417,406
)
Less: Premiums ceded to IPO coinsurers
(216,740
)
(231,805
)
Other ceded premiums
(206,964
)
(185,601
)
Net premiums
$
399,593
$
386,047
4
%
SENIOR HEALTH SEGMENT
Adjusted Operating Results
Reconciliation
(Unaudited – in
thousands)
Three months ended June
30,
2023
2022
% Change
Income/(loss) before income taxes
$
(6,033
)
$
(16,150
)
(63
)%
Less: e-TeleQuote transaction-related
costs
-
(66
)
Less: Noncontrolling interest
-
(3,129
)
Adjusted operating income before taxes
$
(6,033
)
$
(12,955
)
(53
)%
CORPORATE AND OTHER
DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results
Reconciliation
(Unaudited – in
thousands)
Three months ended June
30,
2023
2022
% Change
Total revenues
$
47,113
$
36,031
31
%
Less: Investment gains (losses)
(328
)
(1,892
)
Less: 10% deposit asset MTM included in
NII
(852
)
(1,254
)
Adjusted operating revenues
$
48,293
$
39,177
23
%
Loss before income taxes
$
(4,769
)
$
(12,609
)
(62
)%
Less: Investment gains (losses)
(328
)
(1,892
)
Less: 10% deposit asset MTM included in
NII
(852
)
(1,254
)
Less: e-TeleQuote transaction-related
expenses
-
2,958
Less: Equity comp for awards exchanged
during acquisition
-
(3,328
)
Adjusted operating loss before income
taxes
$
(3,590
)
$
(9,093
)
(61
)%
PRIMERICA, INC. AND
SUBSIDIARIES
Adjusted Stockholders' Equity
Reconciliation
(Unaudited – in
thousands)
June 30, 2023
December 31, 2022
% Change
Stockholders' equity
$
2,015,464
$
2,031,254
(1
)%
Less: Net unrealized gains (losses)
(226,250
)
(240,868
)
Less: Effect of change in discount rate
assumptions on the liability for future policy benefits
55,386
130,416
Adjusted stockholders' equity
$
2,186,328
$
2,141,706
2
%
TERM LIFE INSURANCE
SEGMENT
Impact of Revised LDTI
Information
(Unaudited - in
thousands)
Three months ended June 30,
2022
As Previously Restated
Revision Impact
As Revised
Term Life Insurance - Select
Items
Benefits and claims
$
149,328
$
(4,702
)
$
144,626
Future policy benefits remeasurement
(gain)/loss
$
(663
)
$
527
$
(136
)
Amortization of deferred policy
acquisition costs
$
62,538
$
630
$
63,168
Income before income taxes
$
125,034
$
3,545
$
128,579
Term Life Insurance - Financial
Analysis
Benefits and claims, net (1)
$
334,266
$
(4,176
)
$
330,090
% of Adjusted direct premiums
58.5
%
57.7
%
DAC amortization & Insurance
commissions
$
66,393
$
630
$
67,023
% of Adjusted direct premiums
11.6
%
11.7
%
Total Term Life income before income
taxes
$
125,034
$
3,545
$
128,579
Term Life operating margin (2)
21.9
%
22.5
%
(1) Benefits and claims, net:
Benefits & claims and remeasurement (gain)/loss net of other
ceded premiums which are largely Yearly Renewable Term
reinsurance.
(2) Term Life operating margin:
Term Life operating income before income taxes as a percentage of
adjusted direct premiums.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230807693408/en/
Investor Contact: Nicole Russell 470-564-6663 Email:
Nicole.Russell@primerica.com
Media Contact: Susan Chana 404-229-8302 Email:
Susan.Chana@Primerica.com
Primerica (NYSE:PRI)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Primerica (NYSE:PRI)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024