Primerica Reports Fourth Quarter 2023 Results
- Recruiting and licensing momentum drove life-licensed sales force to a record 141,572, up 5% compared to the prior year.
- Issued Term Life policies increased by 12% and total face amount issued went up by 16%.
- Investment and Savings Product sales rose by 13% with ending client asset values up by 15%.
- Earnings per diluted share (EPS) increased by 9% to $4.30, and return on stockholders’ equity (ROE) was 27.8%.
- Adjusted operating EPS of $4.25 increased by 9%, with adjusted net operating income return on adjusted stockholders’ equity (ROAE) at 26.9%.
- Total revenues for Q4 2023 were $726.3 million, up 6% compared to the prior year.
- Net income increased by 4% to $151.9 million, and earnings per diluted share rose by 9% to $4.30.
- The Company recruited nearly 362,000 individuals in 2023, resulting in a 9% increase in new insurance licenses and 5% growth in the life-licensed sales force.
- Total product sales in Q4 2023 were $2.4 billion, a 13% increase compared to the prior year period.
- Client asset values ended the year at $96.7 billion, up 15% year-over-year.
- Primerica repurchased $72.5 million of its common stock during Q4 2023 and authorized a new $425 million share repurchase program.
- Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be approximately 435% as of December 31, 2023.
- None.
Insights
The reported increase in earnings per diluted share (EPS) by 9% and a return on stockholders' equity (ROE) of 27.8% is indicative of Primerica's robust financial health and efficient capital utilization. The growth in life-licensed sales force and the uptick in issued term life policies by 12% suggest a successful expansion strategy, potentially leading to increased market penetration and future revenue streams. The 16% rise in total face amount issued reflects a higher value of insurance coverage sold, which could translate into higher premium income over time. However, the 8% decline in investment product sales year-over-year signals potential challenges in the investment segment, likely influenced by market volatility.
The adjusted net operating income return on adjusted stockholders' equity (ROAE) of 26.9% is also noteworthy, as it provides an insight into the company's profitability from its core operations, excluding certain non-recurring items. This metric, along with the 15% increase in ending client asset values, suggests that Primerica is effectively managing its investment portfolio and generating value for its stockholders.
Primerica's strategic focus on recruiting and licensing has led to a 5% year-over-year growth in their life-licensed sales force. This growth is significant as it underpins the company's direct sales model and its ability to scale up policy issuance. The reported 17% increase in new life-licensed representatives is an indicator of the company's momentum in expanding its distribution capabilities. The robust sales force growth, coupled with an increase in term life face amount, suggests that Primerica is effectively capitalizing on market opportunities within the middle-income segment.
Despite a strong fourth quarter, the full-year decline in investment product sales reflects sensitivity to broader market conditions. This could suggest the necessity for Primerica to further diversify its product offerings or enhance its investment product strategies to mitigate the impact of market volatility on sales performance.
The disclosure of financial results, including details such as the impact of a $60 million goodwill impairment from the previous year, adheres to transparency requirements for publicly traded companies. The adjustments made for non-GAAP financial measures provide stakeholders with a clearer view of the company's operational performance. It is crucial for Primerica to maintain accurate and comprehensive reporting, especially when it involves non-GAAP measures that can influence investor perception.
Additionally, the authorization of a new $425 million share repurchase program signals confidence in the company's financial position and a commitment to delivering shareholder value. Such corporate actions often require careful legal scrutiny to ensure compliance with market regulations and to safeguard shareholder interests.
Recruiting and licensing momentum drove life-licensed sales force to a record 141,572; up
Issued Term Life policies up
Investment and Savings Product sales up
Earnings per diluted share (EPS) of
Diluted adjusted operating EPS of
Adjusted operating revenues of
Strong recruiting and licensing trends continue to reflect the attractiveness of Primerica’s business model and fuel the growth of its powerful distribution platform that now exceeds 141,500 life-licensed individuals. The Company’s financial results during the fourth quarter reflected the benefit of a large and stable block of in-force term life insurance policies, higher investment products sales and appreciation of client asset values, while net investment income was higher due to an increase in interest rates and growth in the size of the investment portfolio. The Company continued to experience pressures in senior health, resulting in a small loss in the segment.
“Strong fourth quarter results completed another solid year at Primerica as we continue to meet the growing financial needs of middle-income families,” said Glenn Williams, Chief Executive Officer of Primerica, Inc. “Our expanding sales force plays a crucial role in our success, and I believe 2024 holds exciting opportunities to build momentum as we work toward our biennial convention in July.”
For the full year ended December 31, 2023, the Company recruited nearly 362,000 individuals, resulting in
Fourth Quarter Distribution & Segment Results
Distribution Results |
|||||||||||||||||||
|
|
Q4 2023 |
|
|
Q4 2022 |
|
|
%
|
|
Adjusted
|
|
|
%
|
|
|||||
Life-Licensed Sales Force |
|
|
141,572 |
|
|
|
135,208 |
|
|
|
5 |
% |
|
|
|
|
|
||
Recruits |
|
|
89,992 |
|
|
|
77,025 |
|
|
|
17 |
% |
|
|
|
|
|
||
New Life-Licensed Representatives |
|
|
13,029 |
|
|
|
11,117 |
|
|
|
17 |
% |
|
|
|
|
|
||
Life Insurance Policies Issued (1) |
|
|
88,757 |
|
|
|
72,544 |
|
|
|
22 |
% |
|
79,282 |
|
|
|
12 |
% |
Life Productivity (1) (2) |
|
|
0.21 |
|
|
|
0.18 |
|
|
* |
|
|
0.20 |
|
|
* |
|
||
Issued Term Life Face Amount ($ billions) (3) |
|
$ |
29.3 |
|
|
$ |
25.3 |
|
|
|
16 |
% |
|
|
|
|
|
||
ISP Product Sales ($ billions) |
|
$ |
2.4 |
|
|
$ |
2.1 |
|
|
|
13 |
% |
|
|
|
|
|
||
Average Client Asset Values ($ billions) |
|
$ |
91.0 |
|
|
$ |
83.3 |
|
|
|
9 |
% |
|
|
|
|
|
||
Senior Health Submitted Policies (4) |
|
|
18,663 |
|
|
|
23,060 |
|
|
|
(19 |
)% |
|
|
|
|
|
||
Senior Health Approved Policies (5) |
|
|
17,181 |
|
|
|
20,705 |
|
|
|
(17 |
)% |
|
|
|
|
|
||
Closed |
|
$ |
72.9 |
|
|
$ |
78.9 |
|
|
|
(8 |
)% |
|
|
|
|
|
||
| ____________________ | |
(1) |
Previously reported numbers for the three months ended December 31, 2022 have been adjusted as a result of a product change made in the fourth quarter 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 |
||||||||||||
|
|
Q4 2023 |
|
Q4 2022 |
|
%
|
|
|||||
|
|
($ in thousands) |
||||||||||
Adjusted Operating Revenues: |
|
|
|
|
|
|
|
|||||
Term Life Insurance |
|
$ |
431,327 |
|
|
$ |
415,974 |
|
|
|
4 |
% |
Investment and Savings Products |
|
|
221,656 |
|
|
|
198,280 |
|
|
|
12 |
% |
Senior Health |
|
|
20,148 |
|
|
|
27,853 |
|
|
|
(28 |
)% |
Corporate and Other Distributed Products (1) |
|
|
51,157 |
|
|
|
42,396 |
|
|
|
21 |
% |
Total adjusted operating revenues (1) |
|
$ |
724,288 |
|
|
$ |
684,503 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|||||
Adjusted Operating Income (Loss) before
|
|
|
|
|
|
|
|
|||||
Term Life Insurance |
|
$ |
140,285 |
|
|
$ |
132,001 |
|
|
|
6 |
% |
Investment and Savings Products |
|
|
62,764 |
|
|
|
56,612 |
|
|
|
11 |
% |
Senior Health |
|
|
(2,681 |
) |
|
|
4,285 |
|
|
NM |
|
|
Corporate and Other Distributed Products (1) |
|
|
(5,377 |
) |
|
|
(8,762 |
) |
|
|
39 |
% |
Total adjusted operating income before
|
|
$ |
194,991 |
|
|
$ |
184,136 |
|
|
|
6 |
% |
| ____________________ | |
(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
Primerica's entrepreneurial business opportunity continues to generate a high degree of interest, leading to a year-over-year increase of
Term Life Insurance
Sales volume remained robust with 88,757 new term life insurance policies issued during the fourth quarter, a
Fourth quarter revenues of
Investment and Savings Products
Total product sales of
Fourth quarter revenues of
Senior Health
The fourth quarter results reflect lower sales from a less tenured agent mix. Approximately 17,000 policies were approved by health carriers, which represents
Fourth quarter revenues of
Corporate and Other Distributed Products
During the fourth quarter of 2023, the segment recorded an adjusted operating pre-tax loss of
Taxes
The effective tax rate was
Capital
During the fourth quarter, the Company repurchased
Primerica has a strong balance sheet, including invested assets and cash at the holding company of
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
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 Wednesday, February 14, 2024, 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; litigation and regulatory investigations and actions concerning us or sales representatives; differences between our actual experience and our expectations regarding mortality, persistency, disability or insurance 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; 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; we may not be able to execute an effective senior health insurance business strategy; a failure by e-TeleQuote to comply with the requirements of
About Primerica, Inc.
Primerica, Inc., headquartered in
PRIMERICA, INC. AND SUBSIDIARIES |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
December 31,
|
|
December 31,
|
||||
|
|
(In thousands) |
||||||
Assets |
|
|
|
|
||||
Investments: |
|
|
|
|
||||
Fixed-maturity securities available-for-sale, at fair value |
|
$ |
2,719,467 |
|
|
$ |
2,495,456 |
|
Fixed-maturity security held-to-maturity, at amortized cost |
|
|
1,386,980 |
|
|
|
1,444,920 |
|
Short-term investments available-for-sale, at fair value |
|
|
276 |
|
|
|
69,406 |
|
Equity securities, at fair value |
|
|
29,680 |
|
|
|
35,404 |
|
Trading securities, at fair value |
|
|
18,383 |
|
|
|
3,698 |
|
Policy loans and other invested assets |
|
|
51,175 |
|
|
|
48,713 |
|
Total investments |
|
|
4,205,961 |
|
|
|
4,097,597 |
|
Cash and cash equivalents |
|
|
613,148 |
|
|
|
489,240 |
|
Accrued investment income |
|
|
23,958 |
|
|
|
20,885 |
|
Reinsurance recoverables |
|
|
3,015,777 |
|
|
|
3,209,540 |
|
Deferred policy acquisition costs, net |
|
|
3,447,234 |
|
|
|
3,188,502 |
|
Renewal commissions receivable |
|
|
190,258 |
|
|
|
200,043 |
|
Agent balances, due premiums and other receivables |
|
|
273,066 |
|
|
|
254,276 |
|
Goodwill |
|
|
127,707 |
|
|
|
127,707 |
|
Intangible assets, net |
|
|
175,025 |
|
|
|
185,525 |
|
Income taxes |
|
|
123,514 |
|
|
|
93,632 |
|
Operating lease right-of-use assets |
|
|
53,693 |
|
|
|
40,500 |
|
Other assets |
|
|
382,549 |
|
|
|
428,259 |
|
Separate account assets |
|
|
2,395,842 |
|
|
|
2,305,717 |
|
Total assets |
|
$ |
15,027,732 |
|
|
$ |
14,641,423 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Liabilities: |
|
|
|
|
||||
Future policy benefits |
|
$ |
6,742,025 |
|
|
$ |
6,297,906 |
|
Unearned and advance premiums |
|
|
14,876 |
|
|
|
15,422 |
|
Policy claims and other benefits payable |
|
|
513,803 |
|
|
|
538,250 |
|
Other policyholders' funds |
|
|
435,094 |
|
|
|
483,769 |
|
Notes payable |
|
|
593,709 |
|
|
|
592,905 |
|
Surplus note |
|
|
1,386,592 |
|
|
|
1,444,469 |
|
Income taxes |
|
|
135,247 |
|
|
|
204,018 |
|
Operating lease liabilities |
|
|
61,358 |
|
|
|
45,995 |
|
Other liabilities |
|
|
583,434 |
|
|
|
580,780 |
|
Payable under securities lending |
|
|
99,785 |
|
|
|
100,938 |
|
Separate account liabilities |
|
|
2,395,842 |
|
|
|
2,305,717 |
|
Total liabilities |
|
|
12,961,765 |
|
|
|
12,610,169 |
|
Stockholders' equity |
|
|
|
|
||||
|
|
|
|
|
||||
Common stock |
|
|
350 |
|
|
|
368 |
|
Paid-in capital |
|
|
- |
|
|
|
- |
|
Retained earnings |
|
|
2,276,946 |
|
|
|
2,153,617 |
|
Accumulated other comprehensive income (loss), net of income tax: |
|
|
|
|
||||
Effect of change in discount rate assumptions on the liability for future policy benefits |
|
|
(39,086 |
) |
|
|
130,416 |
|
Unrealized foreign currency translation gains (losses) |
|
|
(2,235 |
) |
|
|
(12,279 |
) |
Net unrealized gains (losses) and foreign currency translation |
|
|
(170,008 |
) |
|
|
(240,868 |
) |
Total stockholders' equity |
|
|
2,065,967 |
|
|
|
2,031,254 |
|
Total liabilities and stockholders' equity |
|
$ |
15,027,732 |
|
|
$ |
14,641,423 |
|
PRIMERICA, INC. AND SUBSIDIARIES |
||||||||
Condensed Consolidated Statements of Income |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Three months ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
|
(In thousands, except per-share amounts) |
||||||
Revenues: |
|
|
|
|
||||
Direct premiums |
|
$ |
834,275 |
|
|
$ |
812,481 |
|
Ceded premiums |
|
|
(410,182 |
) |
|
|
(406,088 |
) |
Net premiums |
|
|
424,093 |
|
|
|
406,393 |
|
Commissions and fees |
|
|
246,837 |
|
|
|
226,720 |
|
Net investment income |
|
|
37,644 |
|
|
|
28,530 |
|
Investment gains (losses) |
|
|
835 |
|
|
|
2,846 |
|
Other, net |
|
|
16,929 |
|
|
|
22,451 |
|
Total revenues |
|
|
726,338 |
|
|
|
686,940 |
|
Benefits and expenses: |
|
|
|
|
||||
Benefits and claims |
|
|
168,739 |
|
|
|
161,055 |
|
Future policy benefits remeasurement (gain) loss |
|
|
746 |
|
|
|
958 |
|
Amortization of deferred policy acquisition costs |
|
|
70,378 |
|
|
|
66,867 |
|
Sales commissions |
|
|
116,747 |
|
|
|
103,161 |
|
Insurance expenses |
|
|
57,420 |
|
|
|
58,883 |
|
Insurance commissions |
|
|
9,030 |
|
|
|
7,280 |
|
Contract acquisition costs |
|
|
15,079 |
|
|
|
14,952 |
|
Interest expense |
|
|
6,586 |
|
|
|
6,768 |
|
Other operating expenses |
|
|
84,572 |
|
|
|
80,443 |
|
Total benefits and expenses |
|
|
529,297 |
|
|
|
500,367 |
|
Income before income taxes |
|
|
197,041 |
|
|
|
186,573 |
|
Income taxes |
|
|
45,106 |
|
|
|
39,851 |
|
Net income |
|
$ |
151,935 |
|
|
$ |
146,722 |
|
Earnings per share attributable to common stockholders: |
|
|
|
|
||||
Basic earnings per share |
|
$ |
4.30 |
|
|
$ |
3.95 |
|
Diluted earnings per share |
|
$ |
4.30 |
|
|
$ |
3.94 |
|
Weighted-average shares used in computing
|
|
|
|
|
||||
Basic |
|
|
35,149 |
|
|
|
36,974 |
|
Diluted |
|
|
35,208 |
|
|
|
37,081 |
|
PRIMERICA, INC. AND SUBSIDIARIES |
||||||||
Condensed Consolidated Statements of Income |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Year ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
|
(In thousands, except per-share amounts) |
|
|||||
Revenues: |
|
|
|
|
|
|
||
Direct premiums |
|
$ |
3,312,125 |
|
|
$ |
3,230,120 |
|
Ceded premiums |
|
|
(1,651,811 |
) |
|
|
(1,629,892 |
) |
Net premiums |
|
|
1,660,314 |
|
|
|
1,600,228 |
|
Commissions and fees |
|
|
950,416 |
|
|
|
944,676 |
|
Net investment income |
|
|
135,837 |
|
|
|
93,065 |
|
Investment gains (losses) |
|
|
(5,896 |
) |
|
|
(995 |
) |
Other, net |
|
|
75,020 |
|
|
|
83,159 |
|
Total revenues |
|
|
2,815,691 |
|
|
|
2,720,133 |
|
Benefits and expenses: |
|
|
|
|
|
|
||
Benefits and claims |
|
|
642,979 |
|
|
|
632,403 |
|
Future policy benefits remeasurement (gain) loss |
|
|
(384 |
) |
|
|
1,626 |
|
Amortization of deferred policy acquisition costs |
|
|
275,816 |
|
|
|
261,629 |
|
Sales commissions |
|
|
457,444 |
|
|
|
462,764 |
|
Insurance expenses |
|
|
235,460 |
|
|
|
235,405 |
|
Insurance commissions |
|
|
34,222 |
|
|
|
30,261 |
|
Contract acquisition costs |
|
|
55,233 |
|
|
|
68,431 |
|
Interest expense |
|
|
26,594 |
|
|
|
27,237 |
|
Goodwill impairment loss |
|
|
- |
|
|
|
60,000 |
|
Other operating expenses |
|
|
336,647 |
|
|
|
320,394 |
|
Total benefits and expenses |
|
|
2,064,011 |
|
|
|
2,100,150 |
|
Income before income taxes |
|
|
751,680 |
|
|
|
619,983 |
|
Income taxes |
|
|
175,079 |
|
|
|
152,953 |
|
Net income |
|
$ |
576,601 |
|
|
$ |
467,030 |
|
Net income (loss) attributable to noncontrolling interests |
|
|
- |
|
|
|
(5,038 |
) |
Net income attributable to Primerica, Inc. |
|
$ |
576,601 |
|
|
$ |
472,068 |
|
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
||
Basic earnings per share |
|
$ |
15.97 |
|
|
$ |
12.37 |
|
Diluted earnings per share |
|
$ |
15.94 |
|
|
$ |
12.33 |
|
Weighted-average shares used in computing
|
|
|
|
|
|
|
||
Basic |
|
|
35,954 |
|
|
|
37,997 |
|
Diluted |
|
|
36,027 |
|
|
|
38,106 |
|
PRIMERICA, INC. AND SUBSIDIARIES |
||||||||||||
Consolidated Adjusted Operating Results Reconciliation |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
Three months ended December 31, |
|
|
|
|||||||
|
|
2023 |
|
2022 |
|
%
|
|
|||||
|
|
(In thousands, except per-share amounts) |
|
|
|
|||||||
Total revenues |
|
$ |
726,338 |
|
|
$ |
686,940 |
|
|
|
6 |
% |
Less: Investment gains (losses) |
|
|
835 |
|
|
|
2,846 |
|
|
|
|
|
Less: |
|
|
1,215 |
|
|
|
(409 |
) |
|
|
|
|
Adjusted operating revenues |
|
$ |
724,288 |
|
|
$ |
684,503 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
$ |
197,041 |
|
|
$ |
186,573 |
|
|
|
6 |
% |
Less: Investment gains (losses) |
|
|
835 |
|
|
|
2,846 |
|
|
|
|
|
Less: |
|
|
1,215 |
|
|
|
(409 |
) |
|
|
|
|
Adjusted operating income before income taxes |
|
$ |
194,991 |
|
|
$ |
184,136 |
|
|
|
6 |
% |
Net income |
|
$ |
151,935 |
|
|
$ |
146,722 |
|
|
|
4 |
% |
Less: Investment gains (losses) |
|
|
835 |
|
|
|
2,846 |
|
|
|
|
|
Less: |
|
|
1,215 |
|
|
|
(409 |
) |
|
|
|
|
Less: Tax impact of preceding items |
|
|
(469 |
) |
|
|
(520 |
) |
|
|
|
|
Adjusted net operating income |
|
$ |
150,354 |
|
|
$ |
144,805 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|||||
Diluted earnings per share (1) |
|
$ |
4.30 |
|
|
$ |
3.94 |
|
|
|
9 |
% |
Less: Net after-tax impact of operating adjustments |
|
|
0.05 |
|
|
|
0.05 |
|
|
|
|
|
Diluted adjusted operating earnings per share (1) |
|
$ |
4.25 |
|
|
$ |
3.89 |
|
|
|
9 |
% |
| ____________________ | |
(1) |
Percentage change in earnings per share is calculated prior to rounding per share amounts. |
PRIMERICA, INC. AND SUBSIDIARIES |
||||||||||||
Consolidated Adjusted Operating Results Reconciliation |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
Year ended December 31, |
|
|
|
|
||||||
|
|
2023 |
|
2022 |
|
%
|
|
|||||
|
|
(In thousands, except per-share amounts) |
|
|
|
|
||||||
Total revenues |
|
$ |
2,815,691 |
|
|
$ |
2,720,133 |
|
|
|
4 |
% |
Less: Investment gains (losses) |
|
|
(5,896 |
) |
|
|
(995 |
) |
|
|
|
|
Less: |
|
|
(446 |
) |
|
|
(3,830 |
) |
|
|
|
|
Adjusted operating revenues |
|
$ |
2,822,033 |
|
|
$ |
2,724,958 |
|
|
|
4 |
% |
Income before income taxes |
|
$ |
751,680 |
|
|
$ |
619,983 |
|
|
|
21 |
% |
Less: Investment gains (losses) |
|
|
(5,896 |
) |
|
|
(995 |
) |
|
|
|
|
Less: |
|
|
(446 |
) |
|
|
(3,830 |
) |
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
- |
|
|
|
1,992 |
|
|
|
|
|
Less: Equity comp for awards exchanged during acquisition |
|
|
- |
|
|
|
(3,584 |
) |
|
|
|
|
Less: Noncontrolling interest |
|
|
- |
|
|
|
(6,797 |
) |
|
|
|
|
Less: Goodwill impairment |
|
|
- |
|
|
|
(60,000 |
) |
|
|
|
|
Adjusted operating income before income taxes |
|
$ |
758,022 |
|
|
$ |
693,197 |
|
|
|
9 |
% |
Net income |
|
$ |
576,601 |
|
|
$ |
467,030 |
|
|
|
23 |
% |
Less: Investment gains (losses) |
|
|
(5,896 |
) |
|
|
(995 |
) |
|
|
|
|
Less: |
|
|
(446 |
) |
|
|
(3,830 |
) |
|
|
|
|
Less: e-TeleQuote transaction-related expenses |
|
|
- |
|
|
|
1,992 |
|
|
|
|
|
Less: Equity comp for awards exchanged during acquisition |
|
|
- |
|
|
|
(3,584 |
) |
|
|
|
|
Less: Noncontrolling interest |
|
|
- |
|
|
|
(6,797 |
) |
|
|
|
|
Less: Goodwill impairment |
|
|
- |
|
|
|
(60,000 |
) |
|
|
|
|
Less: Tax impact of preceding items |
|
|
1,494 |
|
|
|
3,303 |
|
|
|
|
|
Adjusted net operating income |
|
$ |
581,449 |
|
|
$ |
536,941 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Diluted earnings per share (1) |
|
$ |
15.94 |
|
|
$ |
12.33 |
|
|
|
29 |
% |
Less: Net after-tax impact of operating adjustments |
|
|
(0.13 |
) |
|
|
(1.70 |
) |
|
|
|
|
Diluted adjusted operating earnings per share (1) |
|
$ |
16.07 |
|
|
$ |
14.03 |
|
|
|
15 |
% |
| ____________________ | |
(1) |
Percentage change in earnings per share is calculated prior to rounding per share amounts. |
TERM LIFE INSURANCE SEGMENT |
||||||||||||
Adjusted Premiums Reconciliation |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
Three months ended December 31, |
|
|
|
|||||||
|
|
2023 |
|
2022 |
|
%
|
|
|||||
|
|
(In thousands) |
|
|
|
|||||||
Direct premiums |
|
$ |
829,918 |
|
|
$ |
807,796 |
|
|
|
3 |
% |
Less: Premiums ceded to IPO coinsurers |
|
|
210,310 |
|
|
|
224,240 |
|
|
|
|
|
Adjusted direct premiums |
|
|
619,608 |
|
|
|
583,556 |
|
|
|
6 |
% |
Ceded premiums |
|
|
(410,456 |
) |
|
|
(404,174 |
) |
|
|
|
|
Less: Premiums ceded to IPO coinsurers |
|
|
(210,310 |
) |
|
|
(224,240 |
) |
|
|
|
|
Other ceded premiums |
|
|
(200,146 |
) |
|
|
(179,934 |
) |
|
|
|
|
Net premiums |
|
$ |
419,462 |
|
|
$ |
403,622 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|||||
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT |
||||||||||||
Adjusted Operating Results Reconciliation |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
Three months ended December 31, |
|
|
|
|||||||
|
|
2023 |
|
2022 |
|
%
|
|
|||||
|
|
(In thousands) |
|
|
|
|||||||
Total revenues |
|
$ |
53,207 |
|
|
$ |
44,833 |
|
|
|
19 |
% |
Less: Investment gains (losses) |
|
|
835 |
|
|
|
2,846 |
|
|
|
|
|
Less: |
|
|
1,215 |
|
|
|
(409 |
) |
|
|
|
|
Adjusted operating revenues |
|
$ |
51,157 |
|
|
$ |
42,396 |
|
|
|
21 |
% |
Loss before income taxes |
|
$ |
(3,327 |
) |
|
$ |
(6,325 |
) |
|
|
47 |
% |
Less: Investment gains (losses) |
|
|
835 |
|
|
|
2,846 |
|
|
|
|
|
Less: |
|
|
1,215 |
|
|
|
(409 |
) |
|
|
|
|
Adjusted operating loss before income taxes |
|
$ |
(5,377 |
) |
|
$ |
(8,762 |
) |
|
|
39 |
% |
PRIMERICA, INC. AND SUBSIDIARIES |
|
|||||||||||
Adjusted Stockholders' Equity Reconciliation |
|
|||||||||||
(Unaudited) |
|
|||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
% Change |
|
|||||
|
|
(In thousands) |
|
|
|
|||||||
Stockholders' equity |
|
$ |
2,065,967 |
|
|
$ |
2,031,254 |
|
|
|
2 |
% |
Less: Net unrealized gains (losses) |
|
|
(170,008 |
) |
|
|
(240,868 |
) |
|
|
|
|
Less: Effect of change in discount rate assumptions
|
|
|
(39,086 |
) |
|
|
130,416 |
|
|
|
|
|
Adjusted stockholders' equity |
|
$ |
2,275,061 |
|
|
$ |
2,141,706 |
|
|
|
6 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213079583/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
Source: Primerica, Inc.
FAQ
What was Primerica's total revenue for Q4 2023?
How much did Primerica's net income increase by in Q4 2023?
What was the growth percentage in the life-licensed sales force for Primerica?
What was the increase in issued Term Life policies for Primerica in Q4 2023?
How much did Primerica's client asset values increase by in 2023?
