EX-99.2 3 pri-ex992_6.htm EX-99.2 pri-ex992_6.htm

Exhibit 99.2

 

 

 

 

 

Supplemental Financial Information

First Quarter 2021

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

PRIMERICA, INC.

Financial Supplement

 

 

 

Page

Preface, definition of Non-GAAP financial measures

3

Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures

4

Financial results and other statistical data  

5

Statements of income  

6

Reconciliation of statement of income GAAP to non-GAAP financial measures

7

Segment operating results  

8

Term Life Insurance segment - financial results, key statistics, and financial analysis  

9-10

Investment and Savings Products segment - financial results, financial analysis, and key statistics  

11-12

Investment portfolio  

13-15

Five-year historical key statistics  

16

 

 

This document may contain forward-looking statements and information.  Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2020.

 

2 of 16

 

 

 

 

Preface

PRIMERICA, INC.

Financial Supplement

 

 

First Quarter 2021

 

This document is a financial supplement to our first quarter 2021 earnings release.  It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions.  Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:

 

 

•

Operating adjustments exclude the impact of realized investment gains/losses, including credit impairments, and mark-to-market (MTM) investment adjustments.  We exclude realized investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated with the Company's insurance operations.

 

 

 

•

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

 

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

 

 

Securities held to maturity

 

1,184,370

 

 

1,237,270

 

 

1,278,580

 

 

1,323,740

 

 

1,346,350

 

 

1,362,210

 

 

 

 

Total investments and cash

 

3,915,085

 

 

3,863,313

 

 

4,083,645

 

 

4,185,623

 

 

4,443,053

 

 

4,496,070

 

 

Due from reinsurers

 

4,169,823

 

 

4,132,897

 

 

4,217,129

 

 

4,229,088

 

 

4,273,904

 

 

4,345,483

 

 

Deferred policy acquisition costs

 

2,325,750

 

 

2,346,656

 

 

2,434,462

 

 

2,532,409

 

 

2,629,644

 

 

2,712,169

 

 

Other assets

 

792,128

 

 

799,122

 

 

851,660

 

 

885,083

 

 

899,164

 

 

921,235

 

 

Separate account assets

 

2,485,745

 

 

2,128,924

 

 

2,377,654

 

 

2,468,328

 

 

2,659,520

 

 

2,638,901

 

 

 

 

Total assets

$

13,688,531

 

$

13,270,911

 

$

13,964,549

 

$

14,300,531

 

$

14,905,285

 

$

15,113,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits

$

6,446,569

 

$

6,472,397

 

$

6,567,169

 

$

6,664,061

 

$

6,790,557

 

$

6,885,115

 

 

Other policy liabilities

 

744,087

 

 

737,435

 

 

855,083

 

 

911,454

 

 

984,612

 

 

1,020,349

 

 

Income taxes

 

209,221

 

 

208,357

 

 

265,369

 

 

216,639

 

 

223,496

 

 

235,233

 

 

Other liabilities

 

563,931

 

 

554,014

 

 

574,425

 

 

573,253

 

 

618,874

 

 

633,719

 

 

Notes payable

 

374,037

 

 

374,131

 

 

374,226

 

 

374,320

 

 

374,415

 

 

374,511

 

 

Surplus note

 

1,183,728

 

 

1,236,644

 

 

1,277,970

 

 

1,323,146

 

 

1,345,772

 

 

1,361,648

 

 

Payable under securities lending

 

28,723

 

 

28,896

 

 

29,973

 

 

48,883

 

 

72,154

 

 

87,190

 

 

Separate account liabilities

 

2,485,745

 

 

2,128,924

 

 

2,377,654

 

 

2,468,328

 

 

2,659,520

 

 

2,638,901

 

 

 

 

Total liabilities

 

12,036,040

 

 

11,740,797

 

 

12,321,869

 

 

12,580,085

 

 

13,069,400

 

 

13,236,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock ($0.01 par value) (1)

 

412

 

 

405

 

 

397

 

 

394

 

 

393

 

 

394

 

 

Paid-in capital

 

(0

)

 

(0

)

 

(0

)

 

(0

)

 

(0

)

 

8,138

 

 

Retained earnings

 

1,593,281

 

 

1,565,803

 

 

1,569,689

 

 

1,629,114

 

 

1,705,786

 

 

1,785,037

 

 

Treasury stock

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Accumulated other comprehensive income (loss), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses)

 

64,564

 

 

(1,318

)

 

93,726

 

 

105,758

 

 

128,128

 

 

77,053

 

 

 

Cumulative translation adjustment

 

(5,765

)

 

(34,776

)

 

(21,132

)

 

(14,820

)

 

1,578

 

 

6,570

 

 

 

 

Total stockholders’ equity

 

1,652,492

 

 

1,530,114

 

 

1,642,680

 

 

1,720,446

 

 

1,835,885

 

 

1,877,192

 

 

 

 

Total liabilities and stockholders' equity

$

13,688,531

 

$

13,270,911

 

$

13,964,549

 

$

14,300,531

 

$

14,905,285

 

$

15,113,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Less: Net unrealized gains (losses)

 

64,564

 

 

(1,318

)

 

93,726

 

 

105,758

 

 

128,128

 

 

77,053

 

 

 

 

Adjusted stockholders’ equity

$

1,587,928

 

$

1,531,431

 

$

1,548,954

 

$

1,614,688

 

$

1,707,757

 

$

1,800,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Net Income

 

93,557

 

 

72,469

 

 

101,510

 

 

112,101

 

 

100,084

 

 

97,872

 

 

Shareholder dividends

 

(14,162

)

 

(16,530

)

 

(16,083

)

 

(15,882

)

 

(15,851

)

 

(18,620

)

 

Retirement of shares and warrants

 

(44,137

)

 

(95,676

)

 

(86,513

)

 

(41,556

)

 

(13,426

)

 

(5,966

)

 

Net foreign currency translation adjustment

 

6,500

 

 

(29,011

)

 

13,645

 

 

6,312

 

 

16,398

 

 

4,992

 

 

Other, net

 

4,734

 

 

12,252

 

 

4,964

 

 

4,759

 

 

5,864

 

 

14,105

 

Balance, end of period

$

1,587,928

 

$

1,531,431

 

$

1,548,954

 

$

1,614,688

 

$

1,707,757

 

$

1,800,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

General expenses deferred

 

8,608

 

 

9,726

 

 

9,205

 

 

9,702

 

 

9,510

 

 

10,558

 

 

Commission costs deferred

 

97,538

 

 

104,793

 

 

120,967

 

 

130,719

 

 

128,084

 

 

134,188

 

 

Amortization of deferred policy acquisition costs

 

(67,279

)

 

(70,311

)

 

(53,177

)

 

(47,491

)

 

(53,342

)

 

(66,105

)

 

Foreign currency impact and other, net

 

5,322

 

 

(23,302

)

 

10,812

 

 

5,017

 

 

12,984

 

 

3,884

 

Balance, end of period

$

2,325,750

 

$

2,346,656

 

$

2,434,462

 

$

2,532,409

 

$

2,629,644

 

$

2,712,169

 

 

(1)

Outstanding common shares exclude restricted stock units.

 

 

 

4 of 16

 

 

 

Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

(Dollars in thousands, except per-share data)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

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

 

 

(1,675,252

)

 

-4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

72,469

 

$

101,510

 

$

112,101

 

$

100,084

 

$

97,872

 

$

25,403

 

 

35.1

%

 

Less income attributable to unvested participating securities

 

(310

)

 

(437

)

 

(493

)

 

(433

)

 

(417

)

 

(107

)

 

-34.3

%

 

 

Net income used in computing basic EPS

$

72,159

 

$

101,073

 

$

111,608

 

$

99,651

 

$

97,455

 

$

25,296

 

 

35.1

%

 

 

Basic earnings per share

$

1.75

 

$

2.52

 

$

2.82

 

$

2.53

 

$

2.47

 

$

0.72

 

 

40.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

85,047

 

$

98,480

 

$

110,718

 

$

97,339

 

$

97,129

 

$

12,082

 

 

14.2

%

 

Less operating income attributable to unvested participating securities

 

(364

)

 

(424

)

 

(487

)

 

(421

)

 

(414

)

 

(49

)

 

-13.6

%

 

 

Adjusted net operating income used in computing basic operating EPS

$

84,682

 

$

98,056

 

$

110,231

 

$

96,918

 

$

96,715

 

$

12,033

 

 

14.2

%

 

 

Basic adjusted operating income per share

$

2.06

 

$

2.44

 

$

2.78

 

$

2.46

 

$

2.45

 

$

0.39

 

 

19.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(1,675,252

)

 

-4.1

%

 

Dilutive impact of contingently issuable shares

 

107,361

 

 

114,090

 

 

122,097

 

 

133,544

 

 

124,505

 

 

17,144

 

 

16.0

%

 

 

Shares used to calculate diluted EPS

 

41,238,561

 

 

40,245,967

 

 

39,710,075

 

 

39,554,172

 

 

39,580,453

 

 

(1,658,108

)

 

-4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

72,469

 

$

101,510

 

$

112,101

 

$

100,084

 

$

97,872

 

$

25,403

 

 

35.1

%

 

Less income attributable to unvested participating securities

 

(310

)

 

(436

)

 

(492

)

 

(431

)

 

(416

)

 

(106

)

 

-34.2

%

 

 

Net income used in computing diluted EPS

$

72,159

 

$

101,074

 

$

111,609

 

$

99,652

 

$

97,456

 

$

25,296

 

 

35.1

%

 

 

Diluted earnings per share

$

1.75

 

$

2.51

 

$

2.81

 

$

2.52

 

$

2.46

 

$

0.71

 

 

40.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

85,047

 

$

98,480

 

$

110,718

 

$

97,339

 

$

97,129

 

$

12,082

 

 

14.2

%

 

Less operating income attributable to unvested participating securities

 

(364

)

 

(423

)

 

(486

)

 

(420

)

 

(413

)

 

(49

)

 

-13.5

%

 

 

Adjusted net operating income used in computing diluted operating EPS

$

84,683

 

$

98,057

 

$

110,232

 

$

96,919

 

$

96,717

 

$

12,033

 

 

14.2

%

 

 

Diluted adjusted operating income per share

$

2.05

 

$

2.44

 

$

2.78

 

$

2.45

 

$

2.44

 

$

0.39

 

 

19.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

 

 

 

 

 

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

$/#

Change

 

%

Change

 

Annualized Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

$

1,591,303

 

$

1,586,397

 

$

1,681,563

 

$

1,778,166

 

$

1,856,539

 

$

265,236

 

 

16.7

%

 

Average adjusted stockholders' equity

$

1,559,680

 

$

1,540,193

 

$

1,581,821

 

$

1,661,222

 

$

1,753,948

 

$

194,268

 

 

12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income return on stockholders' equity

 

18.2

%

 

25.6

%

 

26.7

%

 

22.5

%

 

21.1

%

 

2.9

%

nm

 

 

Net income return on adjusted stockholders' equity

 

18.6

%

 

26.4

%

 

28.3

%

 

24.1

%

 

22.3

%

 

3.7

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income return on adjusted stockholders' equity

 

21.8

%

 

25.6

%

 

28.0

%

 

23.4

%

 

22.2

%

 

0.3

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Structure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt-to-capital (1)

 

19.6

%

 

18.6

%

 

17.9

%

 

16.9

%

 

16.6

%

 

-3.0

%

nm

 

 

Debt-to-capital, excluding AOCI (1)

 

19.3

%

 

19.2

%

 

18.7

%

 

18.0

%

 

17.3

%

 

-2.0

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and invested assets to stockholders' equity

 

2.5

x

 

2.5

x

 

2.4

x

 

2.4

x

 

2.4

x

 

(0.1

x)

nm

 

 

Cash and invested assets to adjusted stockholders' equity

 

2.5

x

 

2.6

x

 

2.6

x

 

2.6

x

 

2.5

x

 

(0.0

x)

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share count, end of period (2)

 

40,459,767

 

 

39,667,002

 

 

39,374,259

 

 

39,305,902

 

 

39,414,085

 

 

(1,045,682

)

 

-2.6

%

 

Adjusted stockholders' equity per share

$

37.85

 

$

39.05

 

$

41.01

 

$

43.45

 

$

45.67

 

$

7.82

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Strength Ratings - Primerica Life Insurance Co

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

A1

 

A1

 

A1

 

A1

 

A1

 

nm

 

nm

 

 

S&P

AA-

 

AA-

 

AA-

 

AA-

 

AA-

 

nm

 

nm

 

 

A.M. Best

A+

 

A+

 

A+

 

A+

 

A+

 

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding Company Senior Debt Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

Baa1

 

Baa1

 

Baa1

 

Baa1

 

Baa1

 

nm

 

nm

 

 

S&P

A-

 

A-

 

A-

 

A-

 

A-

 

nm

 

nm

 

 

A.M. Best

a-

 

a-

 

a-

 

a-

 

a-

 

nm

 

nm

 

 

 

(1)

Debt-to-capital is that of the parent company only.  Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.

(2)

Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).

 

 

5 of 16

 

 

 

 

Statements of Income

 

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

(Dollars in thousands)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

$

Change

 

%

Change

 

Statement of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

702,637

 

$

717,088

 

$

736,606

 

$

750,818

 

$

762,227

 

$

59,590

 

 

8.5

%

 

Ceded premiums

 

(386,825

)

 

(402,549

)

 

(393,716

)

 

(397,676

)

 

(395,973

)

 

(9,148

)

 

-2.4

%

 

 

Net premiums

 

315,813

 

 

314,539

 

 

342,890

 

 

353,142

 

 

366,254

 

 

50,442

 

 

16.0

%

 

Net investment income

 

15,420

 

 

22,710

 

 

22,953

 

 

22,731

 

 

20,052

 

 

4,633

 

 

30.0

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

80,891

 

 

62,812

 

 

65,600

 

 

75,347

 

 

98,112

 

 

17,221

 

 

21.3

%

 

 

Asset-based (2)

 

81,395

 

 

78,146

 

 

86,695

 

 

93,669

 

 

101,241

 

 

19,846

 

 

24.4

%

 

 

Account-based (3)

 

20,204

 

 

20,478

 

 

21,008

 

 

21,351

 

 

21,120

 

 

916

 

 

4.5

%

 

 

Other commissions and fees

 

7,579

 

 

10,352

 

 

11,999

 

 

13,746

 

 

13,571

 

 

5,992

 

 

79.1

%

 

Realized investment (losses) gains

 

(10,030

)

 

1,742

 

 

642

 

 

2,650

 

 

1,766

 

 

11,796

 

 

117.6

%

 

Other, net

 

13,665

 

 

15,036

 

 

16,674

 

 

15,695

 

 

15,595

 

 

1,930

 

 

14.1

%

 

                  Total revenues

 

524,936

 

 

525,815

 

 

568,460

 

 

598,330

 

 

637,711

 

 

112,775

 

 

21.5

%

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

134,813

 

 

139,646

 

 

160,166

 

 

180,945

 

 

183,789

 

 

48,976

 

 

36.3

%

 

Amortization of DAC

 

70,311

 

 

53,177

 

 

47,491

 

 

53,342

 

 

66,105

 

 

(4,206

)

 

-6.0

%

 

Insurance commissions

 

6,844

 

 

6,333

 

 

9,694

 

 

9,263

 

 

8,740

 

 

1,896

 

 

27.7

%

 

Insurance expenses

 

48,709

 

 

43,753

 

 

46,109

 

 

49,546

 

 

48,766

 

 

57

 

 

0.1

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

56,561

 

 

44,834

 

 

46,821

 

 

52,931

 

 

68,594

 

 

12,034

 

 

21.3

%

 

 

Asset-based (2)

 

36,323

 

 

35,673

 

 

39,349

 

 

43,227

 

 

46,866

 

 

10,543

 

 

29.0

%

 

 

Other sales commissions

 

3,723

 

 

4,985

 

 

5,779

 

 

6,430

 

 

6,434

 

 

2,711

 

 

72.8

%

 

Interest expense

 

7,192

 

 

7,200

 

 

7,221

 

 

7,225

 

 

7,145

 

 

(47

)

 

-0.7

%

 

Other operating expenses

 

65,914

 

 

56,152

 

 

59,348

 

 

63,781

 

 

72,964

 

 

7,049

 

 

10.7

%

 

                  Total benefits and expenses

 

430,391

 

 

391,753

 

 

421,978

 

 

466,690

 

 

509,403

 

 

79,013

 

 

18.4

%

 

Income before income taxes

 

94,546

 

 

134,062

 

 

146,482

 

 

131,640

 

 

128,308

 

 

33,762

 

 

35.7

%

Income taxes

 

22,077

 

 

32,552

 

 

34,382

 

 

31,556

 

 

30,437

 

 

8,360

 

 

37.9

%

 

                  Net income

$

72,469

 

$

101,510

 

$

112,101

 

$

100,084

 

$

97,872

 

$

25,403

 

 

35.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life

$

82,892

 

$

94,903

 

$

105,316

 

$

89,440

 

$

88,236

 

$

5,344

 

 

6.4

%

Investment & Savings Products

 

47,700

 

 

46,859

 

 

51,372

 

 

56,713

 

 

63,363

 

 

15,663

 

 

32.8

%

Corporate & Other Distributed Products

 

(36,046

)

 

(7,700

)

 

(10,206

)

 

(14,514

)

 

(23,290

)

 

12,756

 

 

35.4

%

 

Income before income taxes

$

94,546

 

$

134,062

 

$

146,482

 

$

131,640

 

$

128,308

 

$

33,762

 

 

35.7

%

 

(1)

Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities.

(2)

Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees.

(3)

Account-based - revenues relating to the fee generating client accounts we administer.

6 of 16

 

 

 

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

(Dollars in thousands)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

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

 

$

59,951

 

 

8.6

%

 

Less: Premiums ceded to IPO Coinsurers

 

260,076

 

 

257,529

 

 

254,938

 

 

253,039

 

 

249,944

 

 

(10,132

)

 

-3.9

%

 

Term Life adjusted direct premiums

$

436,488

 

$

453,659

 

$

475,335

 

$

492,520

 

$

506,570

 

$

70,082

 

 

16.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

$

(9,318

)

 

-2.4

%

 

Less: Premiums ceded to IPO Coinsurers

 

(260,076

)

 

(257,529

)

 

(254,938

)

 

(253,039

)

 

(249,944

)

 

10,132

 

 

3.9

%

 

Term Life other ceded premiums

$

(125,156

)

$

(143,390

)

$

(137,066

)

$

(142,728

)

$

(144,606

)

$

(19,450

)

 

-15.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Investment Income to Adjusted Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

$

15,420

 

$

22,710

 

$

22,953

 

$

22,731

 

$

20,052

 

$

4,633

 

 

30.0

%

 

Less: MTM investment adjustments

 

(6,379

)

 

2,259

 

 

1,165

 

 

960

 

 

(793

)

nm

 

nm

 

 

Adjusted net investment income

$

21,799

 

$

20,451

 

$

21,788

 

$

21,771

 

$

20,845

 

$

(954

)

 

-4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Total Revenues to Adjusted Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

524,936

 

$

525,815

 

$

568,460

 

$

598,330

 

$

637,711

 

$

112,775

 

 

21.5

%

 

Less: Realized investment gains/(losses)

 

(10,030

)

 

1,742

 

 

642

 

 

2,650

 

 

1,766

 

nm

 

nm

 

 

Less: MTM investment adjustments

 

(6,379

)

 

2,259

 

 

1,165

 

 

960

 

 

(793

)

nm

 

nm

 

 

Adjusted operating revenues

$

541,346

 

$

521,813

 

$

566,653

 

$

594,720

 

$

636,738

 

$

95,393

 

 

17.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

33,762

 

 

35.7

%

 

Less: Realized investment gains/(losses)

 

(10,030

)

 

1,742

 

 

642

 

 

2,650

 

 

1,766

 

nm

 

nm

 

 

Less: MTM investment adjustments

 

(6,379

)

 

2,259

 

 

1,165

 

 

960

 

 

(793

)

nm

 

nm

 

 

Adjusted operating income before income taxes

$

110,955

 

$

130,060

 

$

144,676

 

$

128,030

 

$

127,335

 

$

16,380

 

 

14.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Income to Adjusted Net Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

72,469

 

$

101,510

 

$

112,101

 

$

100,084

 

$

97,872

 

$

25,403

 

 

35.1

%

 

Less: Income before income taxes reconciling items

 

(16,409

)

 

4,002

 

 

1,807

 

 

3,610

 

 

973

 

nm

 

nm

 

 

Less: Tax impact of income before income taxes reconciling items

 

3,832

 

 

(972

)

 

(424

)

 

(865

)

 

(231

)

nm

 

nm

 

 

Adjusted net operating income

$

85,047

 

$

98,480

 

$

110,718

 

$

97,339

 

$

97,129

 

$

12,082

 

 

14.2

%

 

7 of 16

 

 

 

 

Segment Operating Results

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

(Dollars in thousands)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

$

Change

 

%

Change

 

Term Life Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Premiums

$

696,564

 

$

711,188

 

$

730,273

 

$

745,559

 

$

756,514

 

$

59,951

 

 

8.6

%

 

Premiums ceded to IPO coinsurers (1)

 

(260,076

)

 

(257,529

)

 

(254,938

)

 

(253,039

)

 

(249,944

)

 

10,132

 

 

3.9

%

 

Adjusted direct premiums (2)

 

436,488

 

 

453,659

 

 

475,335

 

 

492,520

 

 

506,570

 

 

70,082

 

 

16.1

%

 

Other ceded premiums (3)

 

(125,156

)

 

(143,390

)

 

(137,066

)

 

(142,728

)

 

(144,606

)

 

(19,450

)

 

-15.5

%

 

Net premiums

 

311,332

 

 

310,269

 

 

338,269

 

 

349,792

 

 

361,964

 

 

50,632

 

 

16.3

%

 

Allocated net investment income

 

6,246

 

 

6,538

 

 

6,813

 

 

7,432

 

 

8,253

 

 

2,007

 

 

32.1

%

 

Other, net

 

10,168

 

 

11,426

 

 

12,717

 

 

11,768

 

 

11,810

 

 

1,642

 

 

16.1

%

 

Revenues

 

327,747

 

 

328,233

 

 

357,799

 

 

368,992

 

 

382,028

 

 

54,281

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

128,563

 

 

135,409

 

 

156,209

 

 

173,767

 

 

178,963

 

 

50,400

 

 

39.2

%

 

Amortization of DAC

 

65,840

 

 

52,730

 

 

45,529

 

 

52,109

 

 

62,584

 

 

(3,256

)

 

-4.9

%

 

Insurance commissions

 

3,286

 

 

2,884

 

 

5,946

 

 

5,477

 

 

4,869

 

 

1,584

 

 

48.2

%

 

Insurance expenses

 

47,165

 

 

42,306

 

 

44,800

 

 

48,199

 

 

47,375

 

 

209

 

 

0.4

%

 

Benefits and expenses

 

244,855

 

 

233,330

 

 

252,483

 

 

279,551

 

 

293,792

 

 

48,937

 

 

20.0

%

 

Income before income taxes

$

82,892

 

$

94,903

 

$

105,316

 

$

89,440

 

$

88,236

 

$

5,344

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment & Savings Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

$

80,891

 

$

62,812

 

$

65,600

 

$

75,347

 

$

98,112

 

$

17,221

 

 

21.3

%

 

Asset-based

 

81,395

 

 

78,146

 

 

86,695

 

 

93,669

 

 

101,241

 

 

19,846

 

 

24.4

%

 

Account-based

 

20,204

 

 

20,478

 

 

21,008

 

 

21,351

 

 

21,120

 

 

916

 

 

4.5

%

 

Other, net

 

2,542

 

 

2,745

 

 

3,034

 

 

2,949

 

 

2,949

 

 

407

 

 

16.0

%

 

Revenues

 

185,033

 

 

164,180

 

 

176,338

 

 

193,316

 

 

223,422

 

 

38,390

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of DAC

 

4,305

 

 

100

 

 

1,667

 

 

982

 

 

3,275

 

 

(1,030

)

 

-23.9

%

 

Insurance commissions

 

3,201

 

 

3,106

 

 

3,377

 

 

3,500

 

 

3,572

 

 

370

 

 

11.6

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

 

56,561

 

 

44,834

 

 

46,821

 

 

52,931

 

 

68,594

 

 

12,034

 

 

21.3

%

 

Asset-based

 

36,323

 

 

35,673

 

 

39,349

 

 

43,227

 

 

46,866

 

 

10,543

 

 

29.0

%

 

Other operating expenses

 

36,942

 

 

33,608

 

 

33,751

 

 

35,963

 

 

37,752

 

 

810

 

 

2.2

%

 

Benefits and expenses

 

137,332

 

 

117,321

 

 

124,966

 

 

136,603

 

 

160,060

 

 

22,727

 

 

16.5

%

 

Income before income taxes

$

47,700

 

$

46,859

 

$

51,372

 

$

56,713

 

$

63,363

 

$

15,663

 

 

32.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other Distributed Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

6,074

 

$

5,900

 

$

6,333

 

$

5,259

 

$

5,713

 

$

(361

)

 

-5.9

%

 

Ceded premiums

 

(1,593

)

 

(1,631

)

 

(1,712

)

 

(1,909

)

 

(1,423

)

 

170

 

 

10.7

%

 

Net premiums

 

4,480

 

 

4,270

 

 

4,621

 

 

3,350

 

 

4,290

 

 

(191

)

 

-4.3

%

 

Allocated net investment income

 

15,553

 

 

13,913

 

 

14,975

 

 

14,339

 

 

12,592

 

 

(2,961

)

 

-19.0

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid Legal Services

 

3,829

 

 

4,557

 

 

4,942

 

 

5,104

 

 

4,783

 

 

954

 

 

24.9

%

 

Auto and Homeowners Insurance

 

1,672

 

 

2,263

 

 

1,985

 

 

2,194

 

 

1,787

 

 

114

 

 

6.8

%

 

Mortgage loans

 

264

 

 

1,301

 

 

3,011

 

 

4,146

 

 

4,960

 

 

4,696

 

nm

 

 

Other sales commissions

 

1,813

 

 

2,231

 

 

2,061

 

 

2,301

 

 

2,041

 

 

228

 

 

12.6

%

 

Other, net

 

954

 

 

865

 

 

922

 

 

977

 

 

836

 

 

(119

)

 

-12.5

%

 

Adjusted operating revenues

 

28,566

 

 

29,400

 

 

32,516

 

 

32,412

 

 

31,288

 

 

2,722

 

 

9.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

6,249

 

 

4,236

 

 

3,957

 

 

7,178

 

 

4,826

 

 

(1,424

)

 

-22.8

%

 

Amortization of DAC

 

166

 

 

346

 

 

295

 

 

251

 

 

246

 

 

80

 

 

48.0

%

 

Insurance commissions

 

357

 

 

343

 

 

371

 

 

286

 

 

299

 

 

(59

)

 

-16.4

%

 

Insurance expenses

 

1,544

 

 

1,447

 

 

1,309

 

 

1,347

 

 

1,391

 

 

(153

)

 

-9.9

%

 

Sales commissions

 

3,723

 

 

4,985

 

 

5,779

 

 

6,430

 

 

6,434

 

 

2,711

 

 

72.8

%

 

Interest expense

 

7,192

 

 

7,200

 

 

7,221

 

 

7,225

 

 

7,145

 

 

(47

)

 

-0.7

%

 

Other operating expenses

 

28,972

 

 

22,544

 

 

25,597

 

 

27,818

 

 

35,211

 

 

6,239

 

 

21.5

%

 

Benefits and expenses

 

48,203

 

 

41,102

 

 

44,529

 

 

50,535

 

 

55,551

 

 

7,348

 

 

15.2

%

 

Adjusted operating income before income taxes

$

(19,637

)

$

(11,702

)

$

(12,013

)

$

(18,124

)

$

(24,263

)

$

(4,627

)

 

-23.6

%

 

(1)

Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.

(2)

Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.

(3)

Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.

8 of 16

 

 

 

Term Life Insurance - Financial Results and Analysis

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

(Dollars in thousands)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

$

Change

 

%

Change

 

Term Life Insurance Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Premiums

$

696,564

 

$

711,188

 

$

730,273

 

$

745,559

 

$

756,514

 

$

59,951

 

 

8.6

%

 

Premiums ceded to IPO coinsurers (1)

 

(260,076

)

 

(257,529

)

 

(254,938

)

 

(253,039

)

 

(249,944

)

 

10,132

 

 

3.9

%

 

Adjusted direct premiums (2)

 

436,488

 

 

453,659

 

 

475,335

 

 

492,520

 

 

506,570

 

 

70,082

 

 

16.1

%

 

Other ceded premiums (3)

 

(125,156

)

 

(143,390

)

 

(137,066

)

 

(142,728

)

 

(144,606

)

 

(19,450

)

 

-15.5

%

 

Net premiums

 

311,332

 

 

310,269

 

 

338,269

 

 

349,792

 

 

361,964

 

 

50,632

 

 

16.3

%

 

Allocated net investment income

 

6,246

 

 

6,538

 

 

6,813

 

 

7,432

 

 

8,253

 

 

2,007

 

 

32.1

%

 

Other, net

 

10,168

 

 

11,426

 

 

12,717

 

 

11,768

 

 

11,810

 

 

1,642

 

 

16.1

%

 

Revenues

 

327,747

 

 

328,233

 

 

357,799

 

 

368,992

 

 

382,028

 

 

54,281

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

128,563

 

 

135,409

 

 

156,209

 

 

173,767

 

 

178,963

 

 

50,400

 

 

39.2

%

 

Amortization of DAC

 

65,840

 

 

52,730

 

 

45,529

 

 

52,109

 

 

62,584

 

 

(3,256

)

 

-4.9

%

 

Insurance commissions

 

3,286

 

 

2,884

 

 

5,946

 

 

5,477

 

 

4,869

 

 

1,584

 

 

48.2

%

 

Insurance expenses

 

47,165

 

 

42,306

 

 

44,800

 

 

48,199

 

 

47,375

 

 

209

 

 

0.4

%

 

Benefits and expenses

 

244,855

 

 

233,330

 

 

252,483

 

 

279,551

 

 

293,792

 

 

48,937

 

 

20.0

%

 

Income before income taxes

$

82,892

 

$

94,903

 

$

105,316

 

$

89,440

 

$

88,236

 

$

5,344

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life Insurance - Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-IPO direct premiums (4)

$

336,921

 

$

352,353

 

$

372,852

 

$

388,303

 

$

401,106

 

$

64,186

 

 

19.1

%

 

Pre-IPO direct premiums (5)

 

359,643

 

 

358,835

 

 

357,421

 

 

357,256

 

 

355,408

 

 

(4,235

)

 

-1.2

%

 

Total direct premiums

$

696,564

 

$

711,188

 

$

730,273

 

$

745,559

 

$

756,514

 

$

59,951

 

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums ceded to IPO coinsurers

$

260,076

 

$

257,529

 

$

254,938

 

$

253,039

 

$

249,944

 

$

(10,132

)

 

-3.9

%

 

% of Pre-IPO direct premiums

 

72.3

%

 

71.8

%

 

71.3

%

 

70.8

%

 

70.3

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims, net (6)

$

253,719

 

$

278,799

 

$

293,275

 

$

316,495

 

$

323,569

 

$

69,850

 

 

27.5

%

 

% of adjusted direct premiums

 

58.1

%

 

61.5

%

 

61.7

%

 

64.3

%

 

63.9

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC amortization & insurance commissions

$

69,126

 

$

55,614

 

$

51,474

 

$

57,585

 

$

67,454

 

$

(1,672

)

 

-2.4

%

 

% of adjusted direct premiums

 

15.8

%

 

12.3

%

 

10.8

%

 

11.7

%

 

13.3

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance expenses, net (7)

$

36,997

 

$

30,881

 

$

32,083

 

$

36,431

 

$

35,565

 

$

(1,432

)

 

-3.9

%

 

% of adjusted direct premiums

 

8.5

%

 

6.8

%

 

6.7

%

 

7.4

%

 

7.0

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life income before income taxes

$

82,892

 

$

94,903

 

$

105,316

 

$

89,440

 

$

88,236

 

$

5,344

 

 

6.4

%

 

Term Life operating margin (8)

 

19.0

%

 

20.9

%

 

22.2

%

 

18.2

%

 

17.4

%

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 Q1

 

 

(Dollars in thousands, except as noted)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

$/#

Change

 

%

Change

 

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

130,522

 

 

130,095

 

 

134,157

 

 

136,306

 

 

134,907

 

 

4,385

 

 

3.4

%

 

 

New life-licensed representatives

 

10,599

 

 

12,250

 

 

13,138

 

 

12,119

 

 

10,833

 

 

234

 

 

2.2

%

 

 

Non-renewal and terminated representatives

 

(11,026

)

 

(8,188

)

 

(10,989

)

 

(13,518

)

 

(13,710

)

 

(2,684

)

 

-24.3

%

 

Life-insurance licensed sales force, end of period

 

130,095

 

 

134,157

 

 

136,306

 

 

134,907

 

 

132,030

 

 

1,935

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated annualized issued term life premium ($mills) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

61.5

 

$

77.7

 

$

86.0

 

$

78.4

 

$

74.5

 

$

13.0

 

 

21.1

%

 

 

Additions and increases in premium

 

15.0

 

 

17.8

 

 

17.9

 

 

18.1

 

 

18.0

 

 

3.0

 

 

20.1

%

 

 

 

 

Total estimated annualized issued term life premium

$

76.5

 

$

95.5

 

$

103.9

 

$

96.5

 

$

92.5

 

$

16.0

 

 

20.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

71,318

 

 

94,044

 

 

100,199

 

 

87,307

 

 

82,667

 

 

11,349

 

 

15.9

%

 

Estimated average annualized issued term life premium per policy (1)(2)

$

863

 

$

826

 

$

858

 

$

898

 

$

901

 

$

38

 

 

4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term life face amount in-force, beginning of period ($mills)

$

808,262

 

$

804,512

 

$

821,998

 

$

840,227

 

$

858,818

 

$

50,556

 

 

6.3

%

 

 

Issued term life face amount (3)

 

23,221

 

 

27,754

 

 

30,104

 

 

28,357

 

 

26,643

 

 

3,422

 

 

14.7

%

 

 

Terminated term life face amount

 

(18,294

)

 

(14,315

)

 

(13,733

)

 

(14,506

)

 

(17,240

)

 

1,055

 

 

5.8

%

 

 

Foreign currency impact, net

 

(8,676

)

 

4,046

 

 

1,859

 

 

4,740

 

 

1,422

 

 

10,098

 

 

116.4

%

 

Term life face amount in-force, end of period

$

804,512

 

$

821,998

 

$

840,227

 

$

858,818

 

$

869,643

 

$

65,131

 

 

8.1

%

 

(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 Q1

 

(Dollars in thousands, except as noted)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

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

 

$

17,221

 

 

21.3

%

 

Asset-based

 

81,395

 

 

78,146

 

 

86,695

 

 

93,669

 

 

101,241

 

 

19,846

 

 

24.4

%

 

Account-based

 

20,204

 

 

20,478

 

 

21,008

 

 

21,351

 

 

21,120

 

 

916

 

 

4.5

%

 

Other, net

 

2,542

 

 

2,745

 

 

3,034

 

 

2,949

 

 

2,949

 

 

407

 

 

16.0

%

 

Revenues

 

185,033

 

 

164,180

 

 

176,338

 

 

193,316

 

 

223,422

 

 

38,390

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of DAC

 

4,305

 

 

100

 

 

1,667

 

 

982

 

 

3,275

 

 

(1,030

)

 

-23.9

%

 

Insurance commissions

 

3,201

 

 

3,106

 

 

3,377

 

 

3,500

 

 

3,572

 

 

370

 

 

11.6

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

 

56,561

 

 

44,834

 

 

46,821

 

 

52,931

 

 

68,594

 

 

12,034

 

 

21.3

%

 

Asset-based

 

36,323

 

 

35,673

 

 

39,349

 

 

43,227

 

 

46,866

 

 

10,543

 

 

29.0

%

 

Other operating expenses

 

36,942

 

 

33,608

 

 

33,751

 

 

35,963

 

 

37,752

 

 

810

 

 

2.2

%

 

Benefits and expenses

 

137,332

 

 

117,321

 

 

124,966

 

 

136,603

 

 

160,060

 

 

22,727

 

 

16.5

%

 

Income before income taxes

$

47,700

 

$

46,859

 

$

51,372

 

$

56,713

 

$

63,363

 

$

15,663

 

 

32.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees paid based on client asset values (1)

$

5,990

 

$

5,712

 

$

6,284

 

$

6,772

 

$

6,964

 

$

974

 

 

16.3

%

 

Fees paid based on fee-generating positions (2)

 

10,248

 

 

9,094

 

 

8,747

 

 

9,547

 

 

10,451

 

 

203

 

 

2.0

%

 

Other operating expenses

 

20,704

 

 

18,803

 

 

18,719

 

 

19,644

 

 

20,337

 

 

(366

)

 

-1.8

%

 

Total other operating expenses

$

36,942

 

$

33,608

 

$

33,751

 

$

35,963

 

$

37,752

 

$

810

 

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based net revenue as % of revenue-generating sales (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

1.34

%

 

1.33

%

 

1.27

%

 

1.31

%

 

1.29

%

nm

 

nm

 

 

Canada

 

1.06

%

 

0.87

%

 

0.93

%

 

0.95

%

 

1.05

%

nm

 

nm

 

 

Total

 

1.30

%

 

1.27

%

 

1.23

%

 

1.26

%

 

1.25

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based net revenue as % of average asset values (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

0.038

%

 

0.037

%

 

0.038

%

 

0.038

%

 

0.039

%

nm

 

nm

 

 

Canada

 

0.098

%

 

0.133

%

 

0.119

%

 

0.124

%

 

0.103

%

nm

 

nm

 

 

Total

 

0.047

%

 

0.052

%

 

0.050

%

 

0.052

%

 

0.049

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account-based net revenue per average fee generating position (5)(6)

$

3.70

 

$

4.19

 

$

4.45

 

$

4.23

 

$

3.77

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

(Dollars in thousands, except as noted)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

$/#

Change

 

%

Change

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

921.0

 

$

758.4

 

$

874.1

 

$

945.5

 

$

1,261.9

 

$

340.9

 

 

37.0

%

 

 

Canada Retail Mutual Funds

 

280.9

 

 

165.2

 

 

189.6

 

 

256.0

 

 

424.0

 

 

143.1

 

 

51.0

%

 

 

Indexed Annuities

 

72.2

 

 

48.4

 

 

47.2

 

 

50.6

 

 

55.5

 

 

(16.7

)

 

-23.2

%

 

 

Variable Annuities and other

 

600.6

 

 

440.5

 

 

421.7

 

 

529.3

 

 

627.1

 

 

26.5

 

 

4.4

%

 

 

 

 

Total sales-based revenue generating product sales

 

1,874.7

 

 

1,412.5

 

 

1,532.6

 

 

1,781.3

 

 

2,368.4

 

 

493.8

 

 

26.3

%

 

 

Managed Accounts

 

246.2

 

 

200.1

 

 

223.0

 

 

230.7

 

 

330.1

 

 

83.8

 

 

34.0

%

 

 

Segregated Funds and other

 

124.8

 

 

73.9

 

 

85.3

 

 

57.3

 

 

154.9

 

 

30.2

 

 

24.2

%

 

 

 

 

Total product sales

$

2,245.7

 

$

1,686.5

 

$

1,841.0

 

$

2,069.4

 

$

2,853.5

 

$

607.8

 

 

27.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada Retail Mutual Funds

$

280.9

 

$

165.2

 

$

189.6

 

$

256.0

 

$

424.0

 

$

143.1

 

 

51.0

%

 

 

Segregated Funds and other

 

124.8

 

 

73.9

 

 

85.3

 

 

57.3

 

 

154.9

 

 

30.2

 

 

24.2

%

 

 

 

Total Canada product sales

 

405.7

 

 

239.2

 

 

274.9

 

 

313.3

 

 

579.0

 

 

173.3

 

 

42.7

%

 

 

 

Total U.S. product sales

 

1,840.0

 

 

1,447.3

 

 

1,566.1

 

 

1,756.1

 

 

2,274.5

 

 

434.5

 

 

23.6

%

 

 

 

 

Total product sales

$

2,245.7

 

$

1,686.5

 

$

1,841.0

 

$

2,069.4

 

$

2,853.5

 

$

607.8

 

 

27.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client asset values, beginning of period ($mills)

$

70,537

 

$

59,036

 

$

68,224

 

$

72,606

 

$

81,533

 

$

10,996

 

 

15.6

%

 

 

Inflows

 

2,246

 

 

1,686

 

 

1,841

 

 

2,069

 

 

2,853

 

 

608

 

 

27.1

%

 

 

Outflows (1)

 

(1,703

)

 

(1,074

)

 

(1,333

)

 

(1,427

)

 

(1,759

)

 

(56

)

 

-3.3

%

 

 

 

 

Net flows

 

543

 

 

613

 

 

508

 

 

642

 

 

1,095

 

 

552

 

 

101.8

%

 

 

Foreign currency impact, net

 

(978

)

 

404

 

 

205

 

 

539

 

 

172

 

 

1,151

 

 

117.6

%

 

 

Change in market value, net and other (2)

 

(11,065

)

 

8,171

 

 

3,669

 

 

7,745

 

 

3,088

 

 

14,154

 

 

127.9

%

 

Client asset values, end of period

$

59,036

 

$

68,224

 

$

72,606

 

$

81,533

 

$

85,888

 

$

26,852

 

 

45.5

%

 

 

Annualized net flows as % of beginning of period asset values

 

3.1

%

 

4.2

%

 

3.0

%

 

3.5

%

 

5.4

%

 

2.3

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average client asset values ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

32,693

 

$

31,586

 

$

35,204

 

$

37,562

 

$

41,161

 

$

8,468

 

 

25.9

%

 

 

Canada Retail Mutual Funds

 

7,950

 

 

7,573

 

 

8,525

 

 

9,186

 

 

10,268

 

 

2,318

 

 

29.2

%

 

 

Managed Accounts

 

3,905

 

 

3,871

 

 

4,325

 

 

4,703

 

 

5,295

 

 

1,390

 

 

35.6

%

 

 

Indexed Annuities

 

2,389

 

 

2,427

 

 

2,446

 

 

2,469

 

 

2,495

 

 

105

 

 

4.4

%

 

 

Variable Annuities and other

 

17,292

 

 

16,890

 

 

18,551

 

 

19,634

 

 

21,291

 

 

3,999

 

 

23.1

%

 

 

Segregated Funds

 

2,366

 

 

2,291

 

 

2,461

 

 

2,536

 

 

2,622

 

 

256

 

 

10.8

%

 

 

 

 

Total

$

66,595

 

$

64,638

 

$

71,512

 

$

76,090

 

$

83,131

 

$

16,536

 

 

24.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada Retail Mutual Funds

$

7,950

 

$

7,573

 

$

8,525

 

$

9,186

 

$

10,268

 

$

2,318

 

 

29.2

%

 

 

Segregated Funds

 

2,366

 

 

2,291

 

 

2,461

 

 

2,536

 

 

2,622

 

 

256

 

 

10.8

%

 

 

 

Total Canada average client assets

 

10,316

 

 

9,864

 

 

10,986

 

 

11,722

 

 

12,890

 

 

2,574

 

 

25.0

%

 

 

 

Total U.S. average client assets

 

56,279

 

 

54,775

 

 

60,526

 

 

64,368

 

 

70,241

 

 

13,962

 

 

24.8

%

 

 

 

 

Total average client assets

$

66,595

 

$

64,638

 

$

71,512

 

$

76,090

 

$

83,131

 

$

16,536

 

 

24.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of fee-generating positions (thous) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recordkeeping and custodial

 

2,031

 

 

2,048

 

 

2,072

 

 

2,091

 

 

2,115

 

 

85

 

 

4.2

%

 

 

Recordkeeping only

 

658

 

 

671

 

 

685

 

 

697

 

 

714

 

 

56

 

 

8.5

%

 

 

 

 

Total

 

2,689

 

 

2,718

 

 

2,757

 

 

2,788

 

 

2,830

 

 

141

 

 

5.2

%

 

(1)

Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform.  The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available.  Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.

(2)

Change in market value, net - market value fluctuations net of fees and expenses.

(3)

Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.

12 of 16

 

 

 

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

As of or for the period ended March 31, 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

 

$

490,701

 

$

490,701

 

$

-

 

 

15.8

%

 

16.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury

 

 

24,441

 

 

23,717

 

 

724

 

 

0.8

%

 

0.8

%

 

1.99

%

AAA

 

Government

 

 

286,810

 

 

278,396

 

 

8,413

 

 

9.2

%

 

9.3

%

 

2.89

%

AA-

 

Tax-Exempt Municipal

 

 

47,284

 

 

45,203

 

 

2,081

 

 

1.5

%

 

1.5

%

 

2.77

%

AA

 

Public Corporate

 

 

1,537,715

 

 

1,470,958

 

 

66,757

 

 

49.6

%

 

49.0

%

 

3.45

%

BBB+

 

Mortgage Backed

 

 

275,340

 

 

266,112

 

 

9,228

 

 

8.9

%

 

8.9

%

 

2.64

%

AAA

 

Asset Backed

 

 

70,698

 

 

69,772

 

 

926

 

 

2.3

%

 

2.3

%

 

3.09

%

AA-

 

CMBS

 

 

144,265

 

 

140,293

 

 

3,972

 

 

4.7

%

 

4.7

%

 

2.99

%

AA

 

Private Placements

 

 

180,880

 

 

175,328

 

 

5,552

 

 

5.8

%

 

5.8

%

 

4.29

%

BBB

 

Redeemable Preferred

 

 

5,810

 

 

5,447

 

 

362

 

 

0.2

%

 

0.2

%

 

5.47

%

BBB

 

 

 

 

 

 

Total Fixed Income

 

 

2,573,242

 

 

2,475,227

 

 

98,016

 

 

83.0

%

 

82.4

%

 

3.30

%

A-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities and Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual Preferred

 

 

13,397

 

 

13,397

 

 

-

 

 

0.4

%

 

0.4

%

 

 

 

 

 

Common Stock

 

 

18,221

 

 

18,221

 

 

0

 

 

0.6

%

 

0.6

%

 

 

 

 

 

Mutual Fund

 

 

6,090

 

 

6,090

 

 

-

 

 

0.2

%

 

0.2

%

 

 

 

 

 

Derivatives

 

 

40

 

 

40

 

 

-

 

 

0.0

%

 

0.0

%

 

 

 

 

 

Other

 

 

-

 

 

-

 

 

-

 

 

0.0

%

 

0.0

%

 

 

 

 

 

 

 

 

 

 

Total Equities

 

 

37,748

 

 

37,748

 

 

0

 

 

1.2

%

 

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

3,101,690

 

$

3,003,675

 

$

98,016

 

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Corporate Portfolio by Sector

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Non Cyclical

 

$

198,765

 

$

191,382

 

$

7,383

 

 

12.9

%

 

13.0

%

 

 

 

 

 

Energy

 

 

156,954

 

 

149,229

 

 

7,724

 

 

10.2

%

 

10.1

%

 

 

 

 

 

Insurance

 

 

153,627

 

 

147,253

 

 

6,373

 

 

10.0

%

 

10.0

%

 

 

 

 

 

Banking

 

 

137,828

 

 

132,202

 

 

5,626

 

 

9.0

%

 

9.0

%

 

 

 

 

 

REITs

 

 

136,620

 

 

129,624

 

 

6,996

 

 

8.9

%

 

8.8

%

 

 

 

 

 

Consumer Cyclical

 

 

124,079

 

 

119,031

 

 

5,048

 

 

8.1

%

 

8.1

%

 

 

 

 

 

Technology

 

 

118,291

 

 

112,238

 

 

6,053

 

 

7.7

%

 

7.6

%

 

 

 

 

 

Electric

 

 

100,803

 

 

97,085

 

 

3,718

 

 

6.6

%

 

6.6

%

 

 

 

 

 

Capital Goods

 

 

86,646

 

 

83,791

 

 

2,855

 

 

5.6

%

 

5.7

%

 

 

 

 

 

Transportation

 

 

74,695

 

 

72,265

 

 

2,429

 

 

4.9

%

 

4.9

%

 

 

 

 

 

Basic Industry

 

 

72,200

 

 

69,098

 

 

3,102

 

 

4.7

%

 

4.7

%

 

 

 

 

 

Communications

 

 

69,132

 

 

64,567

 

 

4,564

 

 

4.5

%

 

4.4

%

 

 

 

 

 

Brokerage

 

 

53,050

 

 

50,049

 

 

3,001

 

 

3.4

%

 

3.4

%

 

 

 

 

 

Finance Companies

 

 

28,801

 

 

27,698

 

 

1,103

 

 

1.9

%

 

1.9

%

 

 

 

 

 

Financial Other

 

 

8,543

 

 

8,332

 

 

211

 

 

0.6

%

 

0.6

%

 

 

 

 

 

Industrial Other

 

 

8,013

 

 

7,655

 

 

358

 

 

0.5

%

 

0.5

%

 

 

 

 

 

Natural Gas

 

 

6,356

 

 

6,134

 

 

222

 

 

0.4

%

 

0.4

%

 

 

 

 

 

Owned No Guarantee

 

 

2,229

 

 

2,325

 

 

(96

)

 

0.1

%

 

0.2

%

 

 

 

 

 

Utility Other

 

 

1,085

 

 

999

 

 

86

 

 

0.1

%

 

0.1

%

 

 

 

 

 

 

 

 

 

 

Total Corporate portfolio

 

$

1,537,715

 

$

1,470,958

 

$

66,757

 

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-Maturity Securities - Effective Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

< 1 Yr.

 

$

260,841

 

$

257,562

 

$

3,278

 

 

10.1

%

 

10.4

%

 

2.90

%

 

 

 

1-2 Yrs.

 

 

337,399

 

 

325,226

 

 

12,173

 

 

13.1

%

 

13.1

%

 

3.33

%

 

 

 

2-5 Yrs.

 

 

855,681

 

 

803,997

 

 

51,684

 

 

33.3

%

 

32.5

%

 

3.54

%

 

 

 

5-10 Yrs.

 

 

829,658

 

 

803,663

 

 

25,996

 

 

32.2

%

 

32.5

%

 

3.14

%

 

 

 

> 10 Yrs.

 

 

289,663

 

 

284,779

 

 

4,884

 

 

11.3

%

 

11.5

%

 

3.41

%

 

 

 

 

 

 

 

Total Fixed Income

 

$

2,573,242

 

$

2,475,227

 

$

98,016

 

 

100.0

%

 

100.0

%

 

3.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Duration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income portfolio duration

 

 

4.7

 

years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                        Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

 

13 of 16

 

 

 

 

Investment Portfolio - Quality Ratings As of March 31, 2021

PRIMERICA, INC.

Financial Supplement

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Portfolio Quality Ratings (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized  Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

$

411,644

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AA

 

 

301,291

 

 

12.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A

 

 

569,388

 

 

23.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BBB

 

 

1,089,736

 

 

44.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Below Investment Grade

 

 

100,633

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA

 

 

2,536

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income

 

$

2,475,227

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized  Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

Amortized  Cost

 

% of Total

 

Public Corporate asset class:

 

 

 

 

 

 

 

 

 

Private Placement asset class:

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

AAA

 

$

12,175

 

 

0.8

%

 

 

 

AAA

 

$

-

 

 

—

 

 

AA

 

 

77,080

 

 

5.2

%

 

 

 

AA

 

 

5,558

 

 

3.2

%

 

A

 

 

368,039

 

 

25.0

%

 

 

 

A

 

 

21,352

 

 

12.2

%

 

BBB

 

 

932,102

 

 

63.4

%

 

 

 

BBB

 

 

132,196

 

 

75.4

%

 

Below Investment Grade

 

 

80,614

 

 

5.5

%

 

 

 

Below Investment Grade

 

 

16,222

 

 

9.3

%

 

NA

 

 

949

 

 

0.1

%

 

 

 

NA

 

 

-

 

 

—

 

 

 

 

 

 

 

Total Corporate

 

$

1,470,958

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Private

 

$

175,328

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMBS asset class:

 

 

 

 

 

 

 

 

 

Mortgage-Backed asset class:

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

AAA

 

$

81,734

 

 

58.3

%

 

 

 

AAA

 

$

231,538

 

 

87.0

%

 

AA

 

 

2,958

 

 

2.1

%

 

 

 

AA

 

 

25,029

 

 

9.4

%

 

A

 

 

55,528

 

 

39.6

%

 

 

 

A

 

 

9,374

 

 

3.5

%

 

BBB

 

 

-

 

 

—

 

 

 

 

BBB

 

 

-

 

 

—

 

 

Below Investment Grade

 

 

74

 

 

0.1

%

 

 

 

Below Investment Grade

 

 

135

 

 

0.1

%

 

NA

 

 

-

 

 

—

 

 

 

 

NA

 

 

35

 

 

0.0

%

 

 

 

 

 

 

Total CMBS

 

$

140,293

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Mortgage-Backed

 

$

266,112

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Backed asset class:

 

 

 

 

 

 

 

 

 

Treasury & Government asset classes:

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

AAA

 

$

24,190

 

 

34.7

%

 

 

 

AAA

 

$

58,508

 

 

19.4

%

 

AA

 

 

4,008

 

 

5.7

%

 

 

 

AA

 

 

153,653

 

 

50.9

%

 

A

 

 

35,104

 

 

50.3

%

 

 

 

A

 

 

74,737

 

 

24.7

%

 

BBB

 

 

4,229

 

 

6.1

%

 

 

 

BBB

 

 

12,319

 

 

4.1

%

 

Below Investment Grade

 

 

691

 

 

1.0

%

 

 

 

Below Investment Grade

 

 

2,897

 

 

1.0

%

 

NA

 

 

1,551

 

 

2.2

%

 

 

 

NA

 

 

0

 

 

0.0

%

 

 

 

 

 

 

Total Asset-Backed

 

$

69,772

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Treasury & Government

 

$

302,113

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAIC Designations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

1,009,063

 

 

48.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

979,392

 

 

46.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

88,436

 

 

4.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

16,037

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

-

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

0

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Insurer Fixed Income (2)

 

 

2,092,928

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (3)

 

 

420,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

490,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

3,003,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.

(2)

NAIC ratings for our U.S. insurance companies' fixed income portfolios.

(3)

Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.

                        Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

14 of 16

 

 

 

Investment Portfolio - Supplemental Data and Trends

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

(Dollars in thousands)

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

$

Change

 

%

Change

 

Net Investment Income by Source

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities (available-for-sale)

$

20,784

 

$

20,213

 

$

20,882

 

$

20,925

 

$

20,020

 

$

(764

)

-3.7%

 

 

Fixed-maturity securities (held-to-maturity)

 

13,472

 

 

14,074

 

 

14,704

 

 

15,223

 

 

15,146

 

 

1,674

 

12.4%

 

 

Equity Securities

 

451

 

 

461

 

 

433

 

 

406

 

 

391

 

 

(60

)

-13.2%

 

 

Deposit asset underlying 10% reinsurance treaty

 

1,830

 

 

1,394

 

 

1,694

 

 

1,330

 

 

1,368

 

 

(463

)

-25.3%

 

 

Deposit asset - Mark to Market

 

(6,379

)

 

2,259

 

 

1,165

 

 

960

 

 

(793

)

 

5,587

 

-87.6%

 

 

Policy loans and other invested assets

 

189

 

 

541

 

 

242

 

 

272

 

 

231

 

 

42

 

22.4%

 

 

Cash & cash equivalents

 

843

 

 

143

 

 

114

 

 

103

 

 

119

 

 

(724

)

-85.9%

 

 

 

 

 

 

Total investment income

 

31,190

 

 

39,085

 

 

39,234

 

 

39,219

 

 

36,483

 

 

5,293

 

17.0%

 

 

Investment expenses

 

2,298

 

 

2,300

 

 

1,577

 

 

1,265

 

 

1,284

 

 

(1,014

)

-44.1%

 

 

Interest Expense on Surplus Note

 

13,472

 

 

14,074

 

 

14,704

 

 

15,223

 

 

15,146

 

 

1,674

 

12.4%

 

 

 

 

 

 

Net investment income

$

15,420

 

$

22,710

 

$

22,953

 

$

22,731

 

$

20,052

 

$

4,633

 

30.0%

 

 

 

Fixed income book yield, end of period

 

3.55

%

 

3.54

%

 

3.45

%

 

3.44

%

 

3.30

%

 

 

 

 

 

 

 

 

New money yield

 

3.25

%

 

3.14

%

 

2.44

%

 

2.67

%

 

1.72

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

 

 

 

 

 

 

 

 

 

 

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

% Pt

Change

 

 

 

 

Fixed Income Portfolio Quality Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

22.9

%

 

21.5

%

 

19.6

%

 

18.7

%

 

16.6

%

 

-6.3

%

 

 

 

 

AA

 

12.1

%

 

11.6

%

 

12.8

%

 

12.7

%

 

12.2

%

 

0.1

%

 

 

 

 

A

 

22.9

%

 

22.3

%

 

21.8

%

 

22.3

%

 

23.0

%

 

0.1

%

 

 

 

 

BBB

 

38.9

%

 

40.4

%

 

42.0

%

 

42.3

%

 

44.0

%

 

5.2

%

 

 

 

 

Below Investment Grade

 

3.1

%

 

4.0

%

 

3.8

%

 

3.9

%

 

4.1

%

 

1.0

%

 

 

 

 

NA

 

0.1

%

 

0.1

%

 

0.1

%

 

0.1

%

 

0.1

%

 

-0.0

%

 

 

 

 

 

 

 

 

Total Fixed Income

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rating by amortized cost

A

 

A

 

A

 

A

 

A-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2021

 

 

 

As of March 31, 2021

 

 

 

 

 

 

As of March 31, 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

$

21,618

 

$

21,066

 

AAA

 

Canada

$

78,229

 

$

73,282

 

 

 

AAA

$

2,023

 

$

2,001

 

 

2

Province of Ontario Canada

 

19,564

 

 

19,703

 

A+

 

Australia

 

34,183

 

 

32,478

 

 

 

AA

 

9,977

 

 

9,626

 

 

3

Province of Alberta Canada

 

14,351

 

 

14,212

 

AA-

 

United Kingdom

 

31,645

 

 

30,177

 

 

 

A

 

9,758

 

 

9,387

 

 

4

Morgan Stanley

 

14,141

 

 

13,626

 

A+

 

France

 

13,053

 

 

12,561

 

 

 

BBB

 

10,828

 

 

10,328

 

 

5

Province of Quebec Canada

 

12,473

 

 

11,490

 

AA-

 

Germany

 

12,345

 

 

12,113

 

 

 

Below Investment Grade

 

2,947

 

 

2,897

 

 

6

Enbridge Inc

 

12,049

 

 

11,685

 

BBB+

 

Ireland

 

12,101

 

 

11,888

 

 

 

NA

 

—

 

 

—

 

 

7

ConocoPhillips

 

12,043

 

 

11,055

 

A-

 

Bermuda

 

11,280

 

 

10,541

 

 

 

 

Total

$

35,533

 

$

34,238

 

 

8

Province of New Brunswick Canada

 

11,872

 

 

11,778

 

A+

 

Cayman Islands

 

11,144

 

 

11,050

 

 

 

 

 

 

 

 

 

 

 

 

 

9

Province of Manitoba Canada

 

11,556

 

 

11,422

 

A+

 

Japan

 

10,869

 

 

10,362

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Province of British Columbia Canada

 

11,068

 

 

10,711

 

AAA

 

Mexico

 

9,358

 

 

9,384

 

 

 

Non-Government Investments (1)

 

 

 

 

 

 

 

11

Capital One Financial Corp

 

10,352

 

 

9,902

 

BBB

 

Switzerland

 

9,078

 

 

7,943

 

 

 

 

 

 

 

 

 

 

 

 

 

12

General Motors Co

 

10,069

 

 

9,275

 

BBB

 

Netherlands

 

8,853

 

 

8,681

 

 

 

AAA

$

3,956

 

$

3,934

 

 

13

City of Toronto Canada

 

9,600

 

 

9,145

 

AA

 

Norway

 

5,067

 

 

4,958

 

 

 

AA

 

11,972

 

 

11,853

 

 

14

Wells Fargo & Co

 

9,429

 

 

9,184

 

A-

 

Brazil

 

4,650

 

 

4,606

 

 

 

A

 

60,145

 

 

57,400

 

 

15

Municipal Finance Authority of British Columbia

 

9,335

 

 

8,985

 

AAA

 

Israel

 

4,015

 

 

3,983

 

 

 

BBB

 

163,263

 

 

154,290

 

 

16

AbbVie Inc

 

8,924

 

 

8,722

 

BBB+

 

Emerging Markets  (2)

 

15,141

 

 

14,744

 

 

 

Below Investment Grade

 

18,482

 

 

17,832

 

 

17

Entergy Corp

 

8,521

 

 

8,464

 

BBB+

 

All Other

 

 

22,340

 

 

20,796

 

 

 

NA

 

—

 

 

—

 

 

18

Brookfield Asset Management Inc

 

8,263

 

 

7,486

 

A-

 

 

Total

$

293,351

 

$

279,547

 

 

 

 

Total

$

257,819

 

$

245,309

 

 

19

Province of Newfoundland and Labrador

 

8,164

 

 

7,748

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

TC Energy Corp

 

8,092

 

 

7,642

 

BBB+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

Truist Financial Corp

 

7,979

 

 

7,497

 

A-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

Simon Property Group Inc

 

7,877

 

 

7,663

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

General Mills Inc

 

7,807

 

 

7,350

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

CI Financial Corp

 

7,762

 

 

7,839

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25

Discovery Inc

 

7,759

 

 

6,973

 

BBB-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

270,668

 

$

260,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total fixed income portfolio

 

8.7

%

 

8.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

US$ denominated investments in issuers outside of the United States based on country of risk.

(2)

Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.

                        Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

15 of 16

 

 

 

Five-Year Historical Key Statistics

PRIMERICA, INC.

Financial Supplement

 

(Dollars in millions)

2016

 

2017

 

2018

 

2019

 

2020

 

Q1

2020

 

Q2

2020

 

Q3

2020

 

Q4

2020

 

Q1

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recruits

 

262,732

 

 

303,867

 

 

290,886

 

 

282,207

 

 

400,345

 

 

84,762

 

 

133,123

 

 

101,861

 

 

80,599

 

 

94,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

106,710

 

 

116,827

 

 

126,121

 

 

130,736

 

 

130,522

 

 

130,522

 

 

130,095

 

 

134,157

 

 

136,306

 

 

134,907

 

 

New life-licensed representatives

 

44,724

 

 

48,535

 

 

48,041

 

 

44,739

 

 

48,106

 

 

10,599

 

 

12,250

 

 

13,138

 

 

12,119

 

 

10,833

 

 

Non-renewal and terminated representatives

 

(34,607

)

 

(39,241

)

 

(43,426

)

 

(44,953

)

 

(43,721

)

 

(11,026

)

 

(8,188

)

 

(10,989

)

 

(13,518

)

 

(13,710

)

Life-insurance licensed sales force, end of period

 

116,827

 

 

126,121

 

 

130,736

 

 

130,522

 

 

134,907

 

 

130,095

 

 

134,157

 

 

136,306

 

 

134,907

 

 

132,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

298,244

 

 

312,799

 

 

301,589

 

 

287,809

 

 

352,868

 

 

71,318

 

 

94,044

 

 

100,199

 

 

87,307

 

 

82,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life face amount

$

89,869

 

$

95,635

 

$

95,209

 

$

93,994

 

$

109,436

 

$

23,221

 

$

27,754

 

$

30,104

 

$

28,357

 

$

26,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term life face amount in force, beginning of period

$

693,194

 

$

728,385

 

$

763,831

 

$

781,041

 

$

808,262

 

$

808,262

 

$

804,512

 

$

821,998

 

$

840,227

 

$

858,818

 

 

Issued term life face amount

 

89,869

 

 

95,635

 

 

95,209

 

 

93,994

 

 

109,436

 

 

23,221

 

 

27,754

 

 

30,104

 

 

28,357

 

 

26,643

 

 

Terminated term life face amount

 

(57,238

)

 

(65,958

)

 

(70,291

)

 

(71,519

)

 

(60,848

)

 

(18,294

)

 

(14,315

)

 

(13,733

)

 

(14,506

)

 

(17,240

)

 

Foreign currency impact, net

 

2,560

 

 

5,769

 

 

(7,708

)

 

4,746

 

 

1,968

 

 

(8,676

)

 

4,046

 

 

1,859

 

 

4,740

 

 

1,422

 

Term life face amount in force, end of period

$

728,385

 

$

763,831

 

$

781,041

 

$

808,262

 

$

858,818

 

$

804,512

 

$

821,998

 

$

840,227

 

$

858,818

 

$

869,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated annualized issued term life premium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

237.9

 

$

255.4

 

$

250.8

 

$

244.8

 

$

303.6

 

$

61.5

 

$

77.7

 

$

86.0

 

$

78.4

 

$

74.5

 

 

Additions and increases in premium

 

46.4

 

 

49.5

 

 

55.2

 

 

60.2

 

 

68.9

 

 

15.0

 

 

17.8

 

 

17.9

 

 

18.1

 

 

18.0

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closed U.S. Mortgage Volume (brokered)

$

—

 

$

—

 

$

—

 

$

31.1

 

$

442.5

 

$

12.9

 

$

65.8

 

$

160.0

 

$

203.8

 

$

262.3

 

 

16 of 16