EX-99.2 3 pri-ex99_2.htm EX-99.2 EX-99.2

Exhibit 99.2

 

 

 

 

img165194719_0.jpg 

 

Supplemental Financial Information

Third Quarter 2022

 

 

 

 

 

 

 

 

 


 

Table of Contents

PRIMERICA, INC.

Financial Supplement

 

 

 

Page

Preface, definition of Non-GAAP financial measures

3

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

4

Financial results and other statistical data

5

Statements of income

6

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

7-8

Segment operating results

 

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

9-10

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

11-12

Senior Health segment - financial results, financial analysis, and key statistics

13

Corporate & Other Distributed Products segment - financial results

14

Investment portfolio

15-17

Five-year historical key statistics

18

 

 

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2021.

 

2 of 18

 


 

 

Preface

PRIMERICA, INC.

Financial Supplement

 

 

Third Quarter 2022

 

This document is a financial supplement to our third quarter 2022 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 investment gains/losses, including credit impairments, mark-to-market (MTM) investment adjustments, loss on the extinguishment of debt, 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 investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated the Company's insurance operations. We exclude the loss on the extinguishment of debt, e-TeleQuote transaction-related expenses/recoveries, and non-cash goodwill impairment charges in our non-GAAP financial measures as such expenses are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares, which were ultimately redeemed at zero value. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company.

 

Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets. We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is sold.

 

IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO). We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

 

Management utilizes these non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business. Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.

 

Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item. Certain items throughout this supplement are noted as ‘na’ to indicate not applicable. Certain variances are noted as ‘nm’ to indicate not meaningful. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.

 

3 of 18

 


 

 

Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures

PRIMERICA, INC.

Financial Supplement

 

(Dollars in thousands)

Dec 31,
2020

 

Mar 31,
2021

 

Jun 30,
2021

 

Sep 30,
2021

 

Dec 31,
2021

 

Mar 31,
2022

 

Jun 30,
2022

 

Sep 30,
2022

 

Condensed Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments and cash excluding securities held to maturity

$

3,096,703

 

$

3,133,860

 

$

3,431,825

 

$

3,056,395

 

$

3,277,830

 

$

3,191,154

 

$

3,048,974

 

$

2,981,598

 

 

Securities held to maturity

 

1,346,350

 

 

1,362,210

 

 

1,368,740

 

 

1,376,090

 

 

1,379,100

 

 

1,390,310

 

 

1,415,940

 

 

1,433,760

 

 

 

 

Total investments and cash

 

4,443,053

 

 

4,496,070

 

 

4,800,565

 

 

4,432,485

 

 

4,656,930

 

 

4,581,464

 

 

4,464,914

 

 

4,415,358

 

 

Due from reinsurers

 

4,273,904

 

 

4,345,483

 

 

4,239,510

 

 

4,278,322

 

 

4,268,419

 

 

4,240,481

 

 

4,069,039

 

 

4,033,897

 

 

Deferred policy acquisition costs

 

2,629,644

 

 

2,712,169

 

 

2,808,347

 

 

2,877,921

 

 

2,943,782

 

 

2,994,367

 

 

3,028,511

 

 

3,049,102

 

 

Goodwill

 

 

 

 

 

 

 

224,180

 

 

179,154

 

 

179,154

 

 

187,707

 

 

127,707

 

 

Other assets

 

899,165

 

 

921,236

 

 

925,621

 

 

1,330,620

 

 

1,274,946

 

 

1,242,457

 

 

1,219,847

 

 

1,209,471

 

 

Separate account assets

 

2,659,520

 

 

2,638,901

 

 

2,745,827

 

 

2,672,606

 

 

2,799,992

 

 

2,696,891

 

 

2,358,987

 

 

2,206,608

 

 

 

 

Total assets

$

14,905,286

 

$

15,113,858

 

$

15,519,871

 

$

15,816,135

 

$

16,123,222

 

$

15,934,813

 

$

15,329,005

 

$

15,042,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits

$

6,790,557

 

$

6,885,115

 

$

6,984,272

 

$

7,057,599

 

$

7,138,649

 

$

7,216,597

 

$

7,276,278

 

$

7,314,688

 

 

Other policy liabilities

 

984,612

 

 

1,020,349

 

 

977,373

 

 

1,054,925

 

 

1,103,642

 

 

1,108,047

 

 

999,789

 

 

1,005,195

 

 

Income taxes

 

223,496

 

 

235,233

 

 

204,197

 

 

260,264

 

 

241,311

 

 

217,326

 

 

164,971

 

 

129,347

 

 

Other liabilities

 

618,874

 

 

633,719

 

 

641,025

 

 

668,643

 

 

669,631

 

 

683,865

 

 

646,660

 

 

659,582

 

 

Debt obligations

 

374,415

 

 

374,511

 

 

499,606

 

 

514,702

 

 

607,102

 

 

598,303

 

 

592,504

 

 

592,705

 

 

Surplus note

 

1,345,772

 

 

1,361,648

 

 

1,368,194

 

 

1,375,559

 

 

1,378,585

 

 

1,389,811

 

 

1,415,457

 

 

1,433,293

 

 

Payable under securities lending

 

72,154

 

 

87,190

 

 

80,613

 

 

105,264

 

 

94,529

 

 

93,171

 

 

96,603

 

 

80,754

 

 

Separate account liabilities

 

2,659,520

 

 

2,638,901

 

 

2,745,827

 

 

2,672,606

 

 

2,799,992

 

 

2,696,891

 

 

2,358,987

 

 

2,206,608

 

 

 

 

Total liabilities

 

13,069,401

 

 

13,236,666

 

 

13,501,107

 

 

13,709,563

 

 

14,033,442

 

 

14,004,011

 

 

13,551,249

 

 

13,422,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

$

 

$

 

$

 

$

7,631

 

$

7,271

 

$

4,616

 

$

2,233

 

$

(0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock ($0.01 par value) (1)

 

393

 

 

394

 

 

394

 

 

395

 

 

394

 

 

388

 

 

378

 

 

370

 

 

Paid-in capital

 

(0

)

 

8,138

 

 

12,880

 

 

17,454

 

 

5,224

 

 

(0

)

 

(0

)

 

(0

)

 

Retained earnings

 

1,705,786

 

 

1,785,037

 

 

1,894,539

 

 

1,988,324

 

 

2,004,506

 

 

1,980,467

 

 

1,948,244

 

 

1,887,952

 

 

Treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive income (loss), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses)

 

128,128

 

 

77,053

 

 

96,990

 

 

84,701

 

 

63,775

 

 

(66,439

)

 

(175,746

)

 

(252,913

)

 

 

Cumulative translation adjustment

 

1,578

 

 

6,570

 

 

13,960

 

 

8,068

 

 

8,611

 

 

11,769

 

 

2,648

 

 

(15,437

)

 

 

 

Total stockholders’ equity (2)

 

1,835,885

 

 

1,877,192

 

 

2,018,764

 

 

2,098,941

 

 

2,082,510

 

 

1,926,185

 

 

1,775,524

 

 

1,619,971

 

 

 

 

Total liabilities and stockholders' equity

$

14,905,286

 

$

15,113,858

 

$

15,519,871

 

$

15,816,135

 

$

16,123,222

 

$

15,934,813

 

$

15,329,005

 

$

15,042,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

$

1,835,885

 

$

1,877,192

 

$

2,018,764

 

$

2,098,941

 

$

2,082,510

 

$

1,926,185

 

$

1,775,524

 

$

1,619,971

 

 

Less: Net unrealized gains (losses)

 

128,128

 

 

77,053

 

 

96,990

 

 

84,701

 

 

63,775

 

 

(66,439

)

 

(175,746

)

 

(252,913

)

 

 

 

Adjusted stockholders’ equity

$

1,707,757

 

$

1,800,139

 

$

1,921,774

 

$

2,014,241

 

$

2,018,735

 

$

1,992,624

 

$

1,951,270

 

$

1,872,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Stockholders' Equity Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$

1,614,688

 

$

1,707,757

 

$

1,800,139

 

$

1,921,774

 

$

2,014,241

 

$

2,018,735

 

$

1,992,624

 

$

1,951,270

 

 

Net Income attributable to Primerica, Inc.

 

100,084

 

 

97,872

 

 

128,162

 

 

112,456

 

 

34,868

 

 

81,418

 

 

107,947

 

 

51,807

 

 

Shareholder dividends

 

(15,851

)

 

(18,620

)

 

(18,660

)

 

(18,671

)

 

(18,686

)

 

(21,645

)

 

(21,178

)

 

(20,571

)

 

Retirement of shares and warrants

 

(13,426

)

 

(5,966

)

 

(521

)

 

(88

)

 

(18,829

)

 

(103,862

)

 

(127,963

)

 

(97,515

)

 

Net foreign currency translation adjustment

 

16,398

 

 

4,992

 

 

7,390

 

 

(5,892

)

 

543

 

 

3,158

 

 

(9,121

)

 

(18,086

)

 

Other, net

 

5,864

 

 

14,105

 

 

5,264

 

 

4,662

 

 

6,597

 

 

14,820

 

 

8,961

 

 

5,979

 

Balance, end of period

$

1,707,757

 

$

1,800,139

 

$

1,921,774

 

$

2,014,241

 

$

2,018,735

 

$

1,992,624

 

$

1,951,270

 

$

1,872,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Policy Acquisition Costs Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$

2,532,409

 

$

2,629,644

 

$

2,712,169

 

$

2,808,347

 

$

2,877,921

 

$

2,943,782

 

$

2,994,367

 

$

3,028,511

 

 

General expenses deferred

 

9,510

 

 

10,558

 

 

10,055

 

 

9,248

 

 

9,062

 

 

9,519

 

 

9,321

 

 

9,726

 

 

Commission costs deferred

 

128,084

 

 

134,188

 

 

136,085

 

 

129,287

 

 

124,515

 

 

123,739

 

 

119,794

 

 

119,734

 

 

Amortization of deferred policy acquisition costs

 

(53,342

)

 

(66,105

)

 

(54,286

)

 

(62,214

)

 

(68,575

)

 

(86,063

)

 

(85,379

)

 

(90,925

)

 

Foreign currency impact and other, net

 

12,984

 

 

3,884

 

 

4,324

 

 

(6,748

)

 

858

 

 

3,390

 

 

(9,593

)

 

(17,943

)

Balance, end of period

$

2,629,644

 

$

2,712,169

 

$

2,808,347

 

$

2,877,921

 

$

2,943,782

 

$

2,994,367

 

$

3,028,511

 

$

3,049,102

 

 

(1)
Outstanding common shares exclude restricted stock units.
(2)
Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity.

 

 

 

4 of 18

 


 

Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except per-share data)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$/#
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$/#
Change

 

%
Change

 

Earnings per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares and fully vested equity awards

 

39,455,948

 

 

39,530,691

 

 

39,560,786

 

 

39,568,470

 

 

39,221,003

 

 

38,385,520

 

 

37,438,254

 

 

(2,122,532

)

 

-5.4

%

 

39,516,193

 

 

38,341,729

 

 

(1,174,464

)

 

-3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primerica, Inc.

$

97,872

 

$

128,162

 

$

112,456

 

$

34,868

 

$

81,418

 

$

107,947

 

$

51,807

 

$

(60,649

)

 

-53.9

%

$

338,489

 

$

241,172

 

$

(97,317

)

 

-28.8

%

 

Less income attributable to unvested participating securities

 

(417

)

 

(525

)

 

(458

)

 

(141

)

 

(337

)

 

(477

)

 

(244

)

 

214

 

 

46.7

%

 

(1,403

)

 

(1,067

)

 

336

 

 

23.9

%

 

 

Net income used in computing basic EPS

$

97,455

 

$

127,636

 

$

111,997

 

$

34,728

 

$

81,081

 

$

107,470

 

$

51,563

 

$

(60,435

)

 

-54.0

%

$

337,086

 

$

240,105

 

$

(96,981

)

 

-28.8

%

 

 

Basic earnings per share

$

2.47

 

$

3.23

 

$

2.83

 

$

0.88

 

$

2.07

 

$

2.80

 

$

1.38

 

$

(1.45

)

 

-51.4

%

$

8.53

 

$

6.26

 

$

(2.27

)

 

-26.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

97,129

 

$

129,355

 

$

118,708

 

$

117,007

 

$

83,333

 

$

110,701

 

$

113,928

 

$

(4,780

)

 

-4.0

%

$

345,193

 

$

307,962

 

$

(37,231

)

 

-10.8

%

 

Less operating income attributable to unvested participating securities

 

(414

)

 

(530

)

 

(484

)

 

(472

)

 

(345

)

 

(490

)

 

(537

)

 

(53

)

 

-11.0

%

 

(1,431

)

 

(1,362

)

 

68

 

 

4.8

%

 

 

Adjusted net operating income used in computing basic operating EPS

$

96,715

 

$

128,825

 

$

118,224

 

$

116,535

 

$

82,988

 

$

110,212

 

$

113,391

 

$

(4,833

)

 

-4.1

%

$

343,762

 

$

306,599

 

$

(37,163

)

 

-10.8

%

 

 

Basic adjusted operating income per share

$

2.45

 

$

3.26

 

$

2.99

 

$

2.95

 

$

2.12

 

$

2.87

 

$

3.03

 

$

0.04

 

 

1.3

%

$

8.70

 

$

8.00

 

$

(0.70

)

 

-8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares and fully vested equity awards

 

39,455,948

 

 

39,530,691

 

 

39,560,786

 

 

39,568,470

 

 

39,221,003

 

 

38,385,520

 

 

37,438,254

 

 

(2,122,532

)

 

-5.4

%

 

39,516,193

 

 

38,341,729

 

 

(1,174,464

)

 

-3.0

%

 

Dilutive impact of contingently issuable shares

 

124,505

 

 

121,595

 

 

117,923

 

 

122,929

 

 

110,941

 

 

115,058

 

 

102,810

 

 

(15,113

)

 

-12.8

%

 

121,341

 

 

109,603

 

 

(11,738

)

 

-9.7

%

 

 

Shares used to calculate diluted EPS

 

39,580,453

 

 

39,652,286

 

 

39,678,709

 

 

39,691,399

 

 

39,331,944

 

 

38,500,578

 

 

37,541,064

 

 

(2,137,645

)

 

-5.4

%

 

39,637,534

 

 

38,451,332

 

 

(1,186,202

)

 

-3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primerica, Inc.

$

97,872

 

$

128,162

 

$

112,456

 

$

34,868

 

$

81,418

 

$

107,947

 

$

51,807

 

$

(60,649

)

 

-53.9

%

$

338,489

 

$

241,172

 

$

(97,317

)

 

-28.8

%

 

Less income attributable to unvested participating securities

 

(416

)

 

(524

)

 

(457

)

 

(140

)

 

(337

)

 

(476

)

 

(244

)

 

213

 

 

46.7

%

 

(1,399

)

 

(1,065

)

 

335

 

 

23.9

%

 

 

Net income used in computing diluted EPS

$

97,456

 

$

127,638

 

$

111,998

 

$

34,728

 

$

81,081

 

$

107,471

 

$

51,563

 

$

(60,435

)

 

-54.0

%

$

337,090

 

$

240,107

 

$

(96,982

)

 

-28.8

%

 

 

Diluted earnings per share

$

2.46

 

$

3.22

 

$

2.82

 

$

0.87

 

$

2.06

 

$

2.79

 

$

1.37

 

$

(1.45

)

 

-51.3

%

$

8.50

 

$

6.24

 

$

(2.26

)

 

-26.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

97,129

 

$

129,355

 

$

118,708

 

$

117,007

 

$

83,333

 

$

110,701

 

$

113,928

 

$

(4,780

)

 

-4.0

%

$

345,193

 

$

307,962

 

$

(37,231

)

 

-10.8

%

 

Less operating income attributable to unvested participating securities

 

(413

)

 

(529

)

 

(483

)

 

(471

)

 

(344

)

 

(488

)

 

(536

)

 

(53

)

 

-11.0

%

 

(1,427

)

 

(1,359

)

 

68

 

 

4.7

%

 

 

Adjusted net operating income used in computing diluted operating EPS

$

96,717

 

$

128,827

 

$

118,225

 

$

116,536

 

$

82,988

 

$

110,213

 

$

113,392

 

$

(4,833

)

 

-4.1

%

$

343,766

 

$

306,602

 

$

(37,163

)

 

-10.8

%

 

 

Diluted adjusted operating income per share

$

2.44

 

$

3.25

 

$

2.98

 

$

2.94

 

$

2.11

 

$

2.86

 

$

3.02

 

$

0.04

 

 

1.4

%

$

8.67

 

$

7.97

 

$

(0.70

)

 

-8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

 

 

 

 

 

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$/#
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$/#
Change

 

%
Change

 

Annualized Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity (1)

$

1,856,539

 

$

1,947,978

 

$

2,058,852

 

$

2,090,726

 

$

2,004,348

 

$

1,850,855

 

$

1,697,748

 

$

(361,105

)

 

-17.5

%

$

1,954,456

 

$

1,850,983

 

$

(103,473

)

 

-5.3

%

 

Average adjusted stockholders' equity (1)

$

1,753,948

 

$

1,860,956

 

$

1,968,007

 

$

2,016,488

 

$

2,005,679

 

$

1,971,947

 

$

1,912,077

 

$

(55,930

)

 

-2.8

%

$

1,860,971

 

$

1,963,235

 

$

102,264

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primerica, Inc. return on stockholders' equity

 

21.1

%

 

26.3

%

 

21.8

%

 

6.7

%

 

16.2

%

 

23.3

%

 

12.2

%

 

-9.6

%

nm

 

 

23.1

%

 

17.4

%

 

-5.7

%

nm

 

 

Net income attributable to Primerica, Inc. return on adjusted stockholders' equity

 

22.3

%

 

27.5

%

 

22.9

%

 

6.9

%

 

16.2

%

 

21.9

%

 

10.8

%

 

-12.0

%

nm

 

 

24.3

%

 

16.4

%

 

-7.9

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income return on adjusted stockholders' equity

 

22.2

%

 

27.8

%

 

24.1

%

 

23.2

%

 

16.6

%

 

22.5

%

 

23.8

%

 

-0.3

%

nm

 

 

24.7

%

 

20.9

%

 

-3.8

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Structure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt-to-capital (2)

 

16.6

%

 

19.8

%

 

19.7

%

 

22.6

%

 

23.7

%

 

25.0

%

 

26.8

%

 

7.1

%

nm

 

 

19.7

%

 

26.8

%

 

7.1

%

nm

 

 

Debt-to-capital, excluding AOCI (2)

 

17.3

%

 

20.8

%

 

20.4

%

 

23.2

%

 

23.2

%

 

23.3

%

 

23.9

%

 

3.5

%

nm

 

 

20.4

%

 

23.9

%

 

3.5

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and invested assets to stockholders' equity

 

2.4

x

 

2.4

x

 

2.1

x

 

2.2

x

 

2.4

x

 

2.5

x

 

2.7

x

 

0.6

x

nm

 

 

2.1

x

 

2.7

x

 

0.6

x

nm

 

 

Cash and invested assets to adjusted stockholders' equity

 

2.5

x

 

2.5

x

 

2.2

x

 

2.3

x

 

2.3

x

 

2.3

x

 

2.4

x

 

0.2

x

nm

 

 

2.2

x

 

2.4

x

 

0.2

x

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share count, end of period (3)

 

39,414,085

 

 

39,443,561

 

 

39,470,748

 

 

39,367,754

 

 

38,751,885

 

 

37,768,052

 

 

37,026,600

 

 

(2,444,148

)

 

-6.2

%

 

39,470,748

 

 

37,026,600

 

 

(2,444,148

)

 

-6.2

%

 

Adjusted stockholders' equity per share

$

45.67

 

$

48.72

 

$

51.03

 

$

51.28

 

$

51.42

 

$

51.66

 

$

50.58

 

$

(0.45

)

 

-0.9

%

$

51.03

 

$

50.58

 

$

(0.45

)

 

-0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Strength Ratings - Primerica Life Insurance Co

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

A1

 

A1

 

A1

 

A1

 

A1

 

A1

 

A1

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

S&P

AA-

 

AA-

 

AA-

 

AA-

 

AA-

 

AA-

 

AA-

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

A.M. Best

A+

 

A+

 

A+

 

A+

 

A+

 

A+

 

A+

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding Company Senior Debt Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

Baa1

 

Baa1

 

Baa1

 

Baa1

 

Baa1

 

Baa1

 

Baa1

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

S&P

A-

 

A-

 

A-

 

A-

 

A-

 

A-

 

A-

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

A.M. Best

a-

 

a-

 

a-

 

a-

 

a-

 

a-

 

a-

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

 

 

(1)
Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity.
(2)
Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
(3)
Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).

 

 

5 of 18

 


 

 

Statements of Income

 

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$
Change

 

%
Change

 

Statement of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

762,227

 

$

780,299

 

$

785,277

 

$

794,344

 

$

798,666

 

$

808,894

 

$

810,079

 

$

24,802

 

 

3.2

%

$

2,327,804

 

$

2,417,639

 

$

89,835

 

 

3.9

%

 

Ceded premiums

 

(395,973

)

 

(413,850

)

 

(401,295

)

 

(405,147

)

 

(399,885

)

 

(419,048

)

 

(404,870

)

 

(3,576

)

 

-0.9

%

 

(1,211,117

)

 

(1,223,804

)

 

(12,687

)

 

-1.0

%

 

 

Net premiums

 

366,254

 

 

366,450

 

 

383,983

 

 

389,197

 

 

398,781

 

 

389,846

 

 

405,209

 

 

21,226

 

 

5.5

%

 

1,116,687

 

 

1,193,836

 

 

77,149

 

 

6.9

%

 

Net investment income

 

20,052

 

 

20,535

 

 

20,000

 

 

20,001

 

 

18,905

 

 

21,284

 

 

24,346

 

 

4,346

 

 

21.7

%

 

60,588

 

 

64,535

 

 

3,947

 

 

6.5

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

98,112

 

 

104,716

 

 

95,229

 

 

103,451

 

 

103,242

 

 

88,701

 

 

67,962

 

 

(27,267

)

 

-28.6

%

 

298,057

 

 

259,905

 

 

(38,153

)

 

-12.8

%

 

 

Asset-based (2)

 

101,241

 

 

108,490

 

 

113,558

 

 

118,015

 

 

113,112

 

 

108,101

 

 

107,483

 

 

(6,074

)

 

-5.3

%

 

323,288

 

 

328,696

 

 

5,407

 

 

1.7

%

 

 

Account-based (3)

 

21,120

 

 

21,848

 

 

21,456

 

 

22,514

 

 

21,541

 

 

22,592

 

 

22,910

 

 

1,454

 

 

6.8

%

 

64,424

 

 

67,043

 

 

2,619

 

 

4.1

%

 

 

Other commissions and fees

 

13,571

 

 

15,635

 

 

39,553

 

 

44,304

 

 

13,905

 

 

21,294

 

 

27,113

 

 

(12,441

)

 

-31.5

%

 

68,759

 

 

62,312

 

 

(6,446

)

 

-9.4

%

 

Investment (losses) gains

 

1,766

 

 

701

 

 

1,410

 

 

1,995

 

 

751

 

 

(1,892

)

 

(2,699

)

 

(4,109

)

nm

 

 

3,876

 

 

(3,841

)

 

(7,717

)

nm

 

 

Other, net

 

15,595

 

 

16,313

 

 

18,051

 

 

24,616

 

 

20,988

 

 

18,755

 

 

20,964

 

 

2,914

 

 

16.1

%

 

49,958

 

 

60,708

 

 

10,750

 

 

21.5

%

 

                  Total revenues

 

637,711

 

 

654,687

 

 

693,240

 

 

724,094

 

 

691,225

 

 

668,681

 

 

673,288

 

 

(19,952

)

 

-2.9

%

 

1,985,638

 

 

2,033,194

 

 

47,556

 

 

2.4

%

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

183,789

 

 

168,347

 

 

183,425

 

 

187,192

 

 

187,069

 

 

153,257

 

 

171,293

 

 

(12,132

)

 

-6.6

%

 

535,561

 

 

511,619

 

 

(23,942

)

 

-4.5

%

 

Amortization of DAC

 

66,105

 

 

54,286

 

 

62,214

 

 

68,575

 

 

86,063

 

 

85,379

 

 

90,925

 

 

28,711

 

 

46.1

%

 

182,604

 

 

262,367

 

 

79,763

 

 

43.7

%

 

Insurance commissions

 

8,740

 

 

8,838

 

 

8,412

 

 

8,542

 

 

7,721

 

 

7,594

 

 

7,666

 

 

(746

)

 

-8.9

%

 

25,990

 

 

22,982

 

 

(3,008

)

 

-11.6

%

 

Insurance expenses

 

48,766

 

 

48,579

 

 

51,901

 

 

53,359

 

 

59,509

 

 

59,461

 

 

57,552

 

 

5,651

 

 

10.9

%

 

149,246

 

 

176,522

 

 

27,276

 

 

18.3

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

68,594

 

 

73,629

 

 

67,745

 

 

77,390

 

 

74,606

 

 

63,403

 

 

48,775

 

 

(18,970

)

 

-28.0

%

 

209,969

 

 

186,784

 

 

(23,185

)

 

-11.0

%

 

 

Asset-based (2)

 

46,866

 

 

50,488

 

 

53,233

 

 

55,614

 

 

53,366

 

 

50,876

 

 

51,549

 

 

(1,684

)

 

-3.2

%

 

150,587

 

 

155,791

 

 

5,204

 

 

3.5

%

 

 

Other sales commissions

 

6,434

 

 

7,185

 

 

8,290

 

 

6,839

 

 

5,952

 

 

5,484

 

 

5,592

 

 

(2,698

)

 

-32.5

%

 

21,908

 

 

17,028

 

 

(4,881

)

 

-22.3

%

 

Interest expense

 

7,145

 

 

7,141

 

 

7,529

 

 

8,804

 

 

6,853

 

 

6,814

 

 

6,802

 

 

(727

)

 

-9.7

%

 

21,814

 

 

20,469

 

 

(1,345

)

 

-6.2

%

 

Contract acquistion costs (4)

 

 

 

 

 

23,524

 

 

29,264

 

 

20,649

 

 

19,384

 

 

13,446

 

 

(10,079

)

 

-42.8

%

 

23,524

 

 

53,479

 

 

29,955

 

 

127.3

%

 

Other operating expenses

 

72,964

 

 

66,730

 

 

79,866

 

 

77,292

 

 

86,434

 

 

79,728

 

 

73,790

 

 

(6,076

)

 

-7.6

%

 

219,559

 

 

239,952

 

 

20,392

 

 

9.3

%

 

Goodwill impairment

 

 

 

 

 

 

 

76,000

 

 

 

 

 

 

60,000

 

 

60,000

 

#DIV/0!

 

 

 

 

60,000

 

 

60,000

 

#DIV/0!

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

8,927

 

 

 

 

 

 

 

 

 

#DIV/0!

 

 

 

 

 

 

 

#DIV/0!

 

 

                  Total benefits and expenses

 

509,403

 

 

485,222

 

 

546,138

 

 

657,797

 

 

588,222

 

 

531,381

 

 

587,389

 

 

41,251

 

 

7.6

%

 

1,540,763

 

 

1,706,992

 

 

166,228

 

 

10.8

%

 

 Income before income taxes

 

128,308

 

 

169,465

 

 

147,102

 

 

66,296

 

 

103,003

 

 

137,300

 

 

85,899

 

 

(61,202

)

 

-41.6

%

 

444,875

 

 

326,203

 

 

(118,672

)

 

-26.7

%

 

 

Income taxes

 

30,437

 

 

41,304

 

 

35,663

 

 

31,788

 

 

24,239

 

 

31,737

 

 

34,092

 

 

(1,570

)

 

-4.4

%

 

107,403

 

 

90,069

 

 

(17,334

)

 

-16.1

%

 

Net income

 

97,872

 

 

128,162

 

 

111,439

 

 

34,508

 

 

78,764

 

 

105,563

 

 

51,807

 

 

(59,632

)

 

-53.5

%

 

337,472

 

 

236,134

 

 

(101,338

)

 

-30.0

%

 

Net income attributable to noncontrolling interests

 

 

 

 

 

(1,017

)

 

(360

)

 

(2,654

)

 

(2,384

)

 

 

 

1,017

 

 

100.0

%

 

(1,017

)

 

(5,038

)

 

(4,021

)

nm

 

 

 

Net Income attributable to Primerica, Inc.

$

97,872

 

$

128,162

 

$

112,456

 

$

34,868

 

$

81,418

 

$

107,947

 

$

51,807

 

$

(60,649

)

 

-53.9

%

$

338,489

 

$

241,172

 

$

(97,317

)

 

-28.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life

$

88,236

 

$

116,778

 

$

107,589

 

$

102,019

 

$

91,577

 

$

119,878

 

$

111,763

 

$

4,175

 

 

3.9

%

$

312,602

 

$

323,218

 

$

10,616

 

 

3.4

%

Investment & Savings Products

 

63,363

 

 

71,154

 

 

69,369

 

 

70,699

 

 

64,560

 

 

58,975

 

 

58,377

 

 

(10,992

)

 

-15.8

%

 

203,886

 

 

181,912

 

 

(21,974

)

 

-10.8

%

Senior Health

 

 

 

 

 

(8,489

)

 

(76,561

)

 

(23,085

)

 

(16,150

)

 

(63,723

)

 

(55,234

)

nm

 

 

(8,489

)

 

(102,959

)

 

(94,470

)

nm

 

Corporate & Other Distributed Products

 

(23,290

)

 

(18,467

)

 

(21,367

)

 

(29,861

)

 

(30,048

)

 

(25,403

)

 

(20,518

)

 

849

 

 

4.0

%

 

(63,124

)

 

(75,969

)

 

(12,845

)

 

-20.3

%

 

Income before income taxes

$

128,308

 

$

169,465

 

$

147,102

 

$

66,296

 

$

103,003

 

$

137,300

 

$

85,899

 

$

(61,202

)

 

-41.6

%

$

444,875

 

$

326,203

 

$

(118,672

)

 

-26.7

%

 

(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.
(4)
Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire Senior Health product leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs.

 

6 of 18

 


 

 

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

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$
Change

 

%
Change

 

Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life direct premiums

$

756,514

 

$

774,500

 

$

779,490

 

$

789,325

 

$

793,254

 

$

803,453

 

$

804,586

 

$

25,096

 

 

3.2

%

$

2,310,504

 

$

2,401,293

 

$

90,789

 

 

3.9

%

 

Less: Premiums ceded to IPO Coinsurers

 

249,944

 

 

246,874

 

 

241,439

 

 

239,828

 

 

234,614

 

 

231,805

 

 

226,869

 

 

(14,570

)

 

-6.0

%

 

738,257

 

 

693,288

 

 

(44,969

)

 

-6.1

%

 

Term Life adjusted direct premiums

$

506,570

 

$

527,626

 

$

538,051

 

$

549,496

 

$

558,640

 

$

571,648

 

$

577,717

 

$

39,666

 

 

7.4

%

$

1,572,247

 

$

1,708,005

 

$

135,758

 

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life ceded premiums

$

(394,550

)

$

(412,028

)

$

(399,835

)

$

(403,184

)

$

(398,446

)

$

(417,406

)

$

(403,416

)

$

(3,581

)

 

-0.9

%

$

(1,206,413

)

$

(1,219,268

)

$

(12,855

)

 

-1.1

%

 

Less: Premiums ceded to IPO Coinsurers

 

(249,944

)

 

(246,874

)

 

(241,439

)

 

(239,828

)

 

(234,614

)

 

(231,805

)

 

(226,869

)

 

14,570

 

 

6.0

%

 

(738,257

)

 

(693,288

)

 

44,969

 

 

6.1

%

 

Term Life other ceded premiums

$

(144,606

)

$

(165,154

)

$

(158,397

)

$

(163,356

)

$

(163,832

)

$

(185,601

)

$

(176,548

)

$

(18,151

)

 

-11.5

%

$

(468,156

)

$

(525,981

)

$

(57,824

)

 

-12.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Investment Income to Adjusted Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

$

20,052

 

$

20,535

 

$

20,000

 

$

20,001

 

$

18,905

 

$

21,284

 

$

24,346

 

$

4,346

 

 

21.7

%

$

60,588

 

$

64,535

 

$

3,947

 

 

6.5

%

 

Less: MTM investment adjustments

 

(793

)

 

(170

)

 

(640

)

 

(899

)

 

(2,099

)

 

(1,254

)

 

(68

)

nm

 

nm

 

 

(1,603

)

 

(3,421

)

nm

 

nm

 

 

Adjusted net investment income

$

20,845

 

$

20,705

 

$

20,640

 

$

20,900

 

$

21,004

 

$

22,538

 

$

24,414

 

$

3,774

 

 

18.3

%

$

62,191

 

$

67,956

 

$

5,765

 

 

9.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Other Operating Expenses to Adjusted other operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses

$

72,964

 

$

66,730

 

$

79,866

 

$

77,292

 

$

86,434

 

$

79,728

 

$

73,790

 

$

(6,076

)

 

-7.6

%

$

219,559

 

$

239,952

 

$

20,392

 

 

9.3

%

 

Less: eTeleQuote transaction-related costs

 

 

 

2,109

 

 

10,027

 

 

812

 

 

900

 

 

(2,892

)

 

 

nm

 

nm

 

 

12,136

 

 

(1,992

)

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquisition

 

 

 

 

 

(1,004

)

 

(739

)

 

256

 

 

3,328

 

 

 

nm

 

nm

 

 

(1,004

)

 

3,584

 

nm

 

nm

 

 

Adjusted other operating expenses

$

72,964

 

$

64,620

 

$

70,843

 

$

77,219

 

$

85,278

 

$

79,292

 

$

73,790

 

$

2,946

 

 

4.2

%

$

208,427

 

$

238,360

 

$

29,933

 

 

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Total Revenues to Adjusted Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

637,711

 

$

654,687

 

$

693,240

 

$

724,094

 

$

691,225

 

$

668,681

 

$

673,288

 

$

(19,952

)

 

-2.9

%

$

1,985,638

 

$

2,033,194

 

$

47,556

 

 

2.4

%

 

Less: Investment gains/(losses)

 

1,766

 

 

701

 

 

1,410

 

 

1,995

 

 

751

 

 

(1,892

)

 

(2,699

)

nm

 

nm

 

 

3,876

 

 

(3,841

)

nm

 

nm

 

 

Less: MTM investment adjustments

 

(793

)

 

(170

)

 

(640

)

 

(899

)

 

(2,099

)

 

(1,254

)

 

(68

)

nm

 

nm

 

 

(1,603

)

 

(3,421

)

nm

 

nm

 

 

Adjusted operating revenues

$

636,738

 

$

654,156

 

$

692,470

 

$

722,998

 

$

692,573

 

$

671,827

 

$

676,056

 

$

(16,415

)

 

-2.4

%

$

1,983,365

 

$

2,040,456

 

$

57,091

 

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

128,308

 

$

169,465

 

$

147,102

 

$

66,296

 

$

103,003

 

$

137,300

 

$

85,899

 

$

(61,202

)

 

-41.6

%

$

444,875

 

$

326,203

 

$

(118,672

)

 

-26.7

%

 

Less: Investment gains/(losses)

 

1,766

 

 

701

 

 

1,410

 

 

1,995

 

 

751

 

 

(1,892

)

 

(2,699

)

nm

 

nm

 

 

3,876

 

 

(3,841

)

nm

 

nm

 

 

Less: MTM investment adjustments

 

(793

)

 

(170

)

 

(640

)

 

(899

)

 

(2,099

)

 

(1,254

)

 

(68

)

nm

 

nm

 

 

(1,603

)

 

(3,421

)

nm

 

nm

 

 

Less: eTeleQuote transaction-related costs

 

 

 

(2,109

)

 

(10,027

)

 

(812

)

 

(900

)

 

2,892

 

 

 

nm

 

nm

 

 

(12,136

)

 

1,992

 

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquisition

 

 

 

 

 

1,004

 

 

739

 

 

(256

)

 

(3,328

)

 

 

nm

 

nm

 

 

1,004

 

 

(3,584

)

nm

 

nm

 

 

Less: Noncontrolling interest before income taxes

 

 

 

 

 

(1,465

)

 

(540

)

 

(3,668

)

 

(3,129

)

 

 

nm

 

nm

 

 

(1,465

)

 

(6,797

)

nm

 

nm

 

 

Less: Goodwill impairment

 

 

 

 

 

 

 

(76,000

)

 

 

 

 

 

(60,000

)

nm

 

nm

 

 

 

 

(60,000

)

nm

 

nm

 

 

Less: Loss on extinguishment of debt

 

 

 

 

 

 

 

(8,927

)

 

 

 

 

 

 

nm

 

nm

 

 

 

 

 

nm

 

nm

 

 

Adjusted operating income before income taxes

$

127,335

 

$

171,044

 

$

156,819

 

$

150,740

 

$

109,175

 

$

144,011

 

$

148,667

 

$

(8,152

)

 

-5.2

%

$

455,198

 

$

401,853

 

$

(53,345

)

 

-11.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Income to Adjusted Net Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

97,872

 

$

128,162

 

$

111,439

 

$

34,508

 

$

78,764

 

$

105,563

 

$

51,807

 

$

(59,632

)

 

-53.5

%

$

337,472

 

$

236,134

 

$

(101,338

)

 

-30.0

%

 

Less: Investment gains/(losses)

 

1,766

 

 

701

 

 

1,410

 

 

1,995

 

 

751

 

 

(1,892

)

 

(2,699

)

nm

 

nm

 

 

3,876

 

 

(3,841

)

nm

 

nm

 

 

Less: MTM investment adjustments

 

(793

)

 

(170

)

 

(640

)

 

(899

)

 

(2,099

)

 

(1,254

)

 

(68

)

nm

 

nm

 

 

(1,603

)

 

(3,421

)

nm

 

nm

 

 

Less: e-TeleQuote transaction-related costs

 

 

 

(2,109

)

 

(10,027

)

 

(812

)

 

(900

)

 

2,892

 

 

 

nm

 

nm

 

 

(12,136

)

 

1,992

 

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquisition

 

 

 

 

 

1,004

 

 

739

 

 

(256

)

 

(3,328

)

 

 

nm

 

nm

 

 

1,004

 

 

(3,584

)

nm

 

nm

 

 

Less: Noncontrolling interest before income taxes

 

 

 

 

 

(1,465

)

 

(540

)

 

(3,668

)

 

(3,129

)

 

 

nm

 

nm

 

 

(1,465

)

 

(6,797

)

nm

 

nm

 

 

Less: Goodwill impairment

 

 

 

 

 

 

 

(76,000

)

 

 

 

 

 

(60,000

)

nm

 

nm

 

 

 

 

(60,000

)

nm

 

nm

 

 

Less: Loss on extinguishment of debt

 

 

 

 

 

 

 

(8,927

)

 

 

 

 

 

 

nm

 

nm

 

 

 

 

 

nm

 

nm

 

 

Less: Tax impact of reconciling items

 

(231

)

 

385

 

 

2,449

 

 

1,945

 

 

1,603

 

 

1,573

 

 

647

 

nm

 

nm

 

 

2,602

 

 

3,823

 

nm

 

nm

 

 

Adjusted net operating income

$

97,129

 

$

129,355

 

$

118,708

 

$

117,007

 

$

83,333

 

$

110,701

 

$

113,928

 

$

(4,780

)

 

-4.0

%

$

345,193

 

$

307,962

 

$

(37,231

)

 

-10.8

%

 

7 of 18

 


 

 

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

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$
Change

 

%
Change

 

Reconciliation from Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

na

 

na

 

$

(8,489

)

$

(76,561

)

$

(23,085

)

$

(16,150

)

$

(63,723

)

$

(55,234

)

nm

 

$

(8,489

)

$

(102,959

)

$

(94,470

)

nm

 

 

Less: e-TeleQuote transaction-related costs

na

 

na

 

 

(417

)

 

(389

)

 

(399

)

 

(66

)

 

 

nm

 

nm

 

 

(417

)

 

(465

)

nm

 

nm

 

 

Less: Noncontrolling interest

na

 

na

 

 

(1,465

)

 

(540

)

 

(3,668

)

 

(3,129

)

 

 

nm

 

nm

 

 

(1,465

)

 

(6,797

)

nm

 

nm

 

 

Less: Goodwill impairment

na

 

na

 

 

 

 

(76,000

)

 

 

 

 

 

(60,000

)

nm

 

nm

 

 

 

 

(60,000

)

nm

 

nm

 

 

Adjusted operating income before income taxes

na

 

na

 

$

(6,608

)

$

369

 

$

(19,018

)

$

(12,955

)

$

(3,723

)

$

2,884

 

 

43.7

%

$

(6,608

)

$

(35,696

)

$

(29,089

)

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

(23,290

)

$

(18,467

)

$

(21,367

)

$

(29,861

)

$

(30,048

)

$

(25,403

)

$

(20,518

)

$

849

 

 

4.0

%

$

(63,124

)

$

(75,969

)

$

(12,845

)

 

-20.3

%

 

Less: Investment gains/(losses)

 

1,766

 

 

701

 

 

1,410

 

 

1,995

 

 

751

 

 

(1,892

)

 

(2,699

)

nm

 

nm

 

 

3,876

 

 

(3,841

)

nm

 

nm

 

 

Less: MTM investment adjustments

 

(793

)

 

(170

)

 

(640

)

 

(899

)

 

(2,099

)

 

(1,254

)

 

(68

)

nm

 

nm

 

 

(1,603

)

 

(3,421

)

nm

 

nm

 

 

Less: e-TeleQuote transaction-related costs

 

 

 

(2,109

)

 

(9,610

)

 

(423

)

 

(501

)

 

2,958

 

 

 

nm

 

nm

 

 

(11,719

)

 

2,458

 

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquistion

 

 

 

 

 

1,004

 

 

739

 

 

(256

)

 

(3,328

)

 

 

nm

 

nm

 

 

1,004

 

 

(3,584

)

nm

 

nm

 

 

Less: Loss on extinguishment of debt

 

 

 

 

 

 

 

(8,927

)

 

 

 

 

 

 

nm

 

nm

 

 

 

 

 

nm

 

nm

 

 

Adjusted operating income before income taxes

$

(24,263

)

$

(16,888

)

$

(13,531

)

$

(22,346

)

$

(27,943

)

$

(21,887

)

$

(17,750

)

$

(4,219

)

 

-31.2

%

$

(54,682

)

$

(67,581

)

$

(12,898

)

 

-23.6

%

 

8 of 18

 


 

 

Term Life Insurance - Financial Results and Analysis

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$
Change

 

%
Change

 

Term Life Insurance Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Premiums

$

756,514

 

$

774,500

 

$

779,490

 

$

789,325

 

$

793,254

 

$

803,453

 

$

804,586

 

$

25,096

 

 

3.2

%

$

2,310,504

 

$

2,401,293

 

$

90,789

 

 

3.9

%

 

Premiums ceded to IPO coinsurers (1)

 

(249,944

)

 

(246,874

)

 

(241,439

)

 

(239,828

)

 

(234,614

)

 

(231,805

)

 

(226,869

)

 

14,570

 

 

6.0

%

 

(738,257

)

 

(693,288

)

 

44,969

 

 

6.1

%

 

Adjusted direct premiums (2)

 

506,570

 

 

527,626

 

 

538,051

 

 

549,496

 

 

558,640

 

 

571,648

 

 

577,717

 

 

39,666

 

 

7.4

%

 

1,572,247

 

 

1,708,005

 

 

135,758

 

 

8.6

%

 

Other ceded premiums (3)

 

(144,606

)

 

(165,154

)

 

(158,397

)

 

(163,356

)

 

(163,832

)

 

(185,601

)

 

(176,548

)

 

(18,151

)

 

-11.5

%

 

(468,156

)

 

(525,981

)

 

(57,824

)

 

-12.4

%

 

Net premiums

 

361,964

 

 

362,472

 

 

379,654

 

 

386,140

 

 

394,808

 

 

386,047

 

 

401,169

 

 

21,515

 

 

5.7

%

 

1,104,090

 

 

1,182,024

 

 

77,934

 

 

7.1

%

 

Allocated net investment income

 

8,253

 

 

8,751

 

 

9,320

 

 

10,162

 

 

11,445

 

 

12,286

 

 

13,241

 

 

3,922

 

 

42.1

%

 

26,324

 

 

36,973

 

 

10,649

 

 

40.5

%

 

Other, net

 

11,810

 

 

12,315

 

 

12,476

 

 

12,369

 

 

12,175

 

 

12,374

 

 

13,419

 

 

943

 

 

7.6

%

 

36,601

 

 

37,968

 

 

1,367

 

 

3.7

%

 

Revenues

 

382,028

 

 

383,537

 

 

401,450

 

 

408,672

 

 

418,428

 

 

410,707

 

 

427,830

 

 

26,379

 

 

6.6

%

 

1,167,016

 

 

1,256,965

 

 

89,950

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

178,963

 

 

162,488

 

 

179,696

 

 

182,749

 

 

182,903

 

 

148,977

 

 

167,356

 

 

(12,340

)

 

-6.9

%

 

521,148

 

 

499,237

 

 

(21,911

)

 

-4.2

%

 

Amortization of DAC

 

62,584

 

 

52,235

 

 

59,287

 

 

67,344

 

 

81,883

 

 

79,668

 

 

88,275

 

 

28,989

 

 

48.9

%

 

174,106

 

 

249,826

 

 

75,720

 

 

43.5

%

 

Insurance commissions

 

4,869

 

 

4,785

 

 

4,345

 

 

4,458

 

 

3,793

 

 

3,854

 

 

3,964

 

 

(381

)

 

-8.8

%

 

13,999

 

 

11,612

 

 

(2,387

)

 

-17.1

%

 

Insurance expenses

 

47,375

 

 

47,252

 

 

50,534

 

 

52,102

 

 

58,272

 

 

58,329

 

 

56,471

 

 

5,937

 

 

11.7

%

 

145,160

 

 

173,072

 

 

27,912

 

 

19.2

%

 

Benefits and expenses

 

293,792

 

 

266,760

 

 

293,862

 

 

306,652

 

 

326,851

 

 

290,829

 

 

316,066

 

 

22,205

 

 

7.6

%

 

854,414

 

 

933,747

 

 

79,334

 

 

9.3

%

 

Income before income taxes

$

88,236

 

$

116,778

 

$

107,589

 

$

102,019

 

$

91,577

 

$

119,878

 

$

111,763

 

$

4,175

 

 

3.9

%

$

312,602

 

$

323,218

 

$

10,616

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life Insurance - Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-IPO direct premiums (4)

$

401,106

 

$

420,865

 

$

431,022

 

$

440,490

 

$

448,657

 

$

460,061

 

$

465,354

 

$

34,332

 

 

8.0

%

$

1,252,993

 

$

1,374,072

 

$

121,079

 

 

9.7

%

 

Pre-IPO direct premiums (5)

 

355,408

 

 

353,635

 

 

348,468

 

 

348,834

 

 

344,597

 

 

343,392

 

 

339,232

 

 

(9,236

)

 

-2.7

%

 

1,057,511

 

 

1,027,221

 

 

(30,290

)

 

-2.9

%

 

Total direct premiums

$

756,514

 

$

774,500

 

$

779,490

 

$

789,325

 

$

793,254

 

$

803,453

 

$

804,586

 

$

25,096

 

 

3.2

%

$

2,310,504

 

$

2,401,293

 

$

90,789

 

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums ceded to IPO coinsurers

$

249,944

 

$

246,874

 

$

241,439

 

$

239,828

 

$

234,614

 

$

231,805

 

$

226,869

 

$

(14,570

)

 

-6.0

%

$

738,257

 

$

693,288

 

$

(44,969

)

 

-6.1

%

 

% of Pre-IPO direct premiums

 

70.3

%

 

69.8

%

 

69.3

%

 

68.8

%

 

68.1

%

 

67.5

%

 

66.9

%

nm

 

nm

 

 

69.8

%

 

67.5

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims, net (6)

$

323,569

 

$

327,642

 

$

338,093

 

$

346,105

 

$

346,735

 

$

334,578

 

$

343,904

 

$

5,811

 

 

1.7

%

$

989,304

 

$

1,025,217

 

$

35,913

 

 

3.6

%

 

% of adjusted direct premiums

 

63.9

%

 

62.1

%

 

62.8

%

 

63.0

%

 

62.1

%

 

58.5

%

 

59.5

%

nm

 

nm

 

 

62.9

%

 

60.0

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC amortization & insurance commissions

$

67,454

 

$

57,020

 

$

63,632

 

$

71,802

 

$

85,676

 

$

83,523

 

$

92,239

 

$

28,608

 

 

45.0

%

$

188,106

 

$

261,438

 

$

73,333

 

 

39.0

%

 

% of adjusted direct premiums

 

13.3

%

 

10.8

%

 

11.8

%

 

13.1

%

 

15.3

%

 

14.6

%

 

16.0

%

nm

 

nm

 

 

12.0

%

 

15.3

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance expenses, net (7)

$

35,565

 

$

34,937

 

$

38,057

 

$

39,732

 

$

46,097

 

$

45,955

 

$

43,052

 

$

4,995

 

 

13.1

%

$

108,559

 

$

135,104

 

$

26,545

 

 

24.5

%

 

% of adjusted direct premiums

 

7.0

%

 

6.6

%

 

7.1

%

 

7.2

%

 

8.3

%

 

8.0

%

 

7.5

%

nm

 

nm

 

 

6.9

%

 

7.9

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life income before income taxes

$

88,236

 

$

116,778

 

$

107,589

 

$

102,019

 

$

91,577

 

$

119,878

 

$

111,763

 

$

4,175

 

 

3.9

%

$

312,602

 

$

323,218

 

$

10,616

 

 

3.4

%

 

Term Life operating margin (8)

 

17.4

%

 

22.1

%

 

20.0

%

 

18.6

%

 

16.4

%

 

21.0

%

 

19.3

%

nm

 

nm

 

 

19.9

%

 

18.9

%

nm

 

nm

 

 

(1)
Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.
(2)
Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.
(3)
Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.
(4)
Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions.
(5)
Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.
(6)
Benefits and claims, net - benefits & claims net of other ceded premiums which are largely YRT.
(7)
Insurance expenses, net - insurance expenses net of other, net revenues.
(8)
Term Life operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums.

9 of 18

 


 

 

Term Life Insurance - Key Statistics

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

 

(Dollars in thousands, except as noted)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$/#
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$/#
Change

 

%
Change

 

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

134,907

 

 

132,030

 

 

132,041

 

 

130,023

 

 

129,515

 

 

130,206

 

 

132,149

 

 

108

 

 

0.1

%

 

134,907

 

 

129,515

 

 

(5,392

)

 

-4.0

%

 

 

New life-licensed representatives

 

10,833

 

 

10,112

 

 

9,381

 

 

9,296

 

 

9,983

 

 

11,529

 

 

12,518

 

 

3,137

 

 

33.4

%

 

30,326

 

 

34,030

 

 

3,704

 

 

12.2

%

 

 

Non-renewal and terminated representatives

 

(13,710

)

 

(10,101

)

 

(11,399

)

 

(9,804

)

 

(9,292

)

 

(9,586

)

 

(10,354

)

 

1,045

 

 

9.2

%

 

(35,210

)

 

(29,232

)

 

5,978

 

 

17.0

%

 

Life-insurance licensed sales force, end of period

 

132,030

 

 

132,041

 

 

130,023

 

 

129,515

 

 

130,206

 

 

132,149

 

 

134,313

 

 

4,290

 

 

3.3

%

 

130,023

 

 

134,313

 

 

4,290

 

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

74.5

 

$

82.6

 

$

70.7

 

$

69.4

 

$

65.5

 

$

72.3

 

$

68.0

 

$

(2.7

)

 

-3.8

%

$

227.8

 

$

205.9

 

$

(22.0

)

 

-9.6

%

 

 

Additions and increases in premium

 

18.0

 

 

20.3

 

 

19.5

 

 

19.1

 

 

18.4

 

 

20.6

 

 

19.5

 

 

(0.1

)

 

-0.3

%

 

57.9

 

 

58.5

 

 

0.6

 

 

1.0

%

 

 

 

 

Total estimated annualized issued term life premium

$

92.5

 

$

103.0

 

$

90.2

 

$

88.5

 

$

83.8

 

$

92.9

 

$

87.5

 

$

(2.7

)

 

-3.0

%

$

285.7

 

$

264.3

 

$

(21.4

)

 

-7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

82,667

 

 

90,071

 

 

75,914

 

 

75,203

 

 

71,324

 

 

76,946

 

 

71,104

 

 

(4,810

)

 

-6.3

%

 

248,652

 

 

219,374

 

 

(29,278

)

 

-11.8

%

 

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

$

901

 

$

917

 

$

931

 

$

923

 

$

918

 

$

940

 

$

957

 

$

26

 

 

2.8

%

$

916

 

$

938

 

$

22

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

858,818

 

$

869,643

 

$

886,519

 

$

894,018

 

$

903,404

 

$

909,632

 

$

914,438

 

$

27,918

 

 

3.1

%

$

858,818

 

$

903,404

 

$

44,586

 

 

5.2

%

 

 

Issued term life face amount (3)

 

26,643

 

 

29,981

 

 

26,219

 

 

25,678

 

 

24,773

 

 

27,651

 

 

26,049

 

 

(170

)

 

-0.6

%

 

82,843

 

 

78,472

 

 

(4,371

)

 

-5.3

%

 

 

Terminated term life face amount

 

(17,240

)

 

(14,706

)

 

(16,241

)

 

(16,610

)

 

(19,787

)

 

(19,298

)

 

(21,033

)

 

(4,792

)

 

-29.5

%

 

(48,187

)

 

(60,117

)

 

(11,930

)

 

-24.8

%

 

 

Foreign currency impact, net

 

1,422

 

 

1,602

 

 

(2,480

)

 

319

 

 

1,242

 

 

(3,547

)

 

(6,669

)

 

(4,189

)

nm

 

 

544

 

 

(8,974

)

 

(9,518

)

nm

 

 

Term life face amount in-force, end of period

$

869,643

 

$

886,519

 

$

894,018

 

$

903,404

 

$

909,632

 

$

914,438

 

$

912,785

 

$

18,767

 

 

2.1

%

$

894,018

 

$

912,785

 

$

18,767

 

 

2.1

%

 

(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 18

 


 

 

Investment and Savings Products - Financial Results and Financial Analysis

 

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$
Change

 

%
Change

 

Investment & Savings Products Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

$

98,112

 

$

104,716

 

$

95,229

 

$

103,451

 

$

103,242

 

$

88,701

 

$

67,962

 

$

(27,267

)

 

-28.6

%

$

298,057

 

$

259,905

 

$

(38,153

)

 

-12.8

%

 

Asset-based

 

101,241

 

 

108,490

 

 

113,558

 

 

118,015

 

 

113,112

 

 

108,101

 

 

107,483

 

 

(6,074

)

 

-5.3

%

 

323,288

 

 

328,696

 

 

5,407

 

 

1.7

%

 

Account-based

 

21,120

 

 

21,848

 

 

21,456

 

 

22,514

 

 

21,541

 

 

22,592

 

 

22,910

 

 

1,454

 

 

6.8

%

 

64,424

 

 

67,043

 

 

2,619

 

 

4.1

%

 

Other, net

 

2,949

 

 

2,958

 

 

3,094

 

 

3,096

 

 

3,144

 

 

3,022

 

 

3,342

 

 

248

 

 

8.0

%

 

9,001

 

 

9,508

 

 

506

 

 

5.6

%

 

Revenues

 

223,422

 

 

238,012

 

 

233,337

 

 

247,076

 

 

241,039

 

 

222,416

 

 

201,697

 

 

(31,640

)

 

-13.6

%

 

694,772

 

 

665,152

 

 

(29,620

)

 

-4.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of DAC

 

3,275

 

 

1,786

 

 

2,580

 

 

1,027

 

 

3,925

 

 

5,463

 

 

2,222

 

 

(357

)

 

-13.8

%

 

7,641

 

 

11,610

 

 

3,970

 

 

52.0

%

 

Insurance commissions

 

3,572

 

 

3,747

 

 

3,747

 

 

3,839

 

 

3,646

 

 

3,450

 

 

3,419

 

 

(328

)

 

-8.8

%

 

11,065

 

 

10,514

 

 

(551

)

 

-5.0

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

 

68,594

 

 

73,629

 

 

67,745

 

 

77,390

 

 

74,606

 

 

63,403

 

 

48,775

 

 

(18,970

)

 

-28.0

%

 

209,969

 

 

186,784

 

 

(23,185

)

 

-11.0

%

 

Asset-based

 

46,866

 

 

50,488

 

 

53,233

 

 

55,614

 

 

53,366

 

 

50,876

 

 

51,549

 

 

(1,684

)

 

-3.2

%

 

150,587

 

 

155,791

 

 

5,204

 

 

3.5

%

 

Other operating expenses

 

37,752

 

 

37,207

 

 

36,664

 

 

38,507

 

 

40,936

 

 

40,249

 

 

37,355

 

 

691

 

 

1.9

%

 

111,623

 

 

118,540

 

 

6,917

 

 

6.2

%

 

Benefits and expenses

 

160,060

 

 

166,858

 

 

163,968

 

 

176,377

 

 

176,479

 

 

163,440

 

 

143,320

 

 

(20,648

)

 

-12.6

%

 

490,886

 

 

483,240

 

 

(7,646

)

 

-1.6

%

 

Income before income taxes

$

63,363

 

$

71,154

 

$

69,369

 

$

70,699

 

$

64,560

 

$

58,975

 

$

58,377

 

$

(10,992

)

 

-15.8

%

$

203,886

 

$

181,912

 

$

(21,974

)

 

-10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees paid based on client asset values (1)

$

6,964

 

$

7,535

 

$

7,891

 

$

8,482

 

$

8,037

 

$

7,917

 

$

7,980

 

$

89

 

 

1.1

%

$

22,390

 

$

23,934

 

$

1,545

 

 

6.9

%

 

Fees paid based on fee-generating positions (2)

 

10,451

 

 

10,021

 

 

9,128

 

 

9,852

 

 

10,948

 

 

9,974

 

 

9,486

 

 

359

 

 

3.9

%

 

29,600

 

 

30,408

 

 

808

 

 

2.7

%

 

Other operating expenses

 

20,337

 

 

19,652

 

 

19,645

 

 

20,172

 

 

21,951

 

 

22,358

 

 

19,889

 

 

244

 

 

1.2

%

 

59,634

 

 

64,198

 

 

4,564

 

 

7.7

%

 

Total other operating expenses

$

37,752

 

$

37,207

 

$

36,664

 

$

38,507

 

$

40,936

 

$

40,249

 

$

37,355

 

$

691

 

 

1.9

%

$

111,623

 

$

118,540

 

$

6,917

 

 

6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

1.29

%

 

1.28

%

 

1.25

%

 

1.11

%

 

1.20

%

 

1.27

%

 

1.23

%

nm

 

nm

 

 

1.27

%

 

1.23

%

nm

 

nm

 

 

Canada

 

1.05

%

 

0.96

%

 

0.92

%

 

0.65

%

 

1.00

%

 

0.78

%

 

0.32

%

nm

 

nm

 

 

0.98

%

 

0.83

%

nm

 

nm

 

 

Total

 

1.25

%

 

1.23

%

 

1.20

%

 

1.05

%

 

1.16

%

 

1.21

%

 

1.17

%

nm

 

nm

 

 

1.23

%

 

1.18

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

0.039

%

 

0.039

%

 

0.039

%

 

0.040

%

 

0.039

%

 

0.040

%

 

0.042

%

nm

 

nm

 

 

0.117

%

 

0.120

%

nm

 

nm

 

 

Canada

 

0.103

%

 

0.112

%

 

0.106

%

 

0.115

%

 

0.091

%

 

0.078

%

 

0.099

%

nm

 

nm

 

 

0.321

%

 

0.267

%

nm

 

nm

 

 

Total

 

0.049

%

 

0.050

%

 

0.050

%

 

0.052

%

 

0.047

%

 

0.046

%

 

0.051

%

nm

 

nm

 

 

0.149

%

 

0.143

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

3.77

 

$

4.08

 

$

4.17

 

$

4.22

 

$

3.48

 

$

4.08

 

$

4.31

 

nm

 

nm

 

$

12.03

 

$

11.89

 

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 18

 


 

 

Investment and Savings Products - Key Statistics

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$/#
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$/#
Change

 

%
Change

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

1,261.9

 

$

1,336.1

 

$

1,247.8

 

$

1,300.3

 

$

1,298.6

 

$

1,151.4

 

$

931.8

 

$

(316.0

)

 

-25.3

%

$

3,845.8

 

$

3,381.8

 

$

(464.0

)

 

-12.1

%

 

 

Canada Retail Mutual Funds

 

424.0

 

 

357.0

 

 

314.8

 

 

343.0

 

 

437.6

 

 

250.6

 

 

112.2

 

 

(202.5

)

 

-64.3

%

 

1,095.8

 

 

800.5

 

 

(295.3

)

 

-26.9

%

 

 

Indexed Annuities

 

55.5

 

 

62.8

 

 

51.9

 

 

60.1

 

 

57.5

 

 

70.2

 

 

55.8

 

 

3.9

 

 

7.5

%

 

170.1

 

 

183.4

 

 

13.3

 

 

7.8

%

 

 

Variable Annuities and other

 

627.1

 

 

767.6

 

 

668.7

 

 

782.2

 

 

668.4

 

 

617.3

 

 

542.5

 

 

(126.1

)

 

-18.9

%

 

2,063.3

 

 

1,828.2

 

 

(235.1

)

 

-11.4

%

 

 

 

 

Total sales-based revenue generating product sales

 

2,368.4

 

 

2,523.4

 

 

2,283.1

 

 

2,485.7

 

 

2,462.1

 

 

2,089.5

 

 

1,642.3

 

 

(640.8

)

 

-28.1

%

 

7,175.0

 

 

6,193.9

 

 

(981.1

)

 

-13.7

%

 

 

Managed Accounts

 

330.1

 

 

381.8

 

 

387.5

 

 

406.3

 

 

453.7

 

 

451.3

 

 

319.6

 

 

(67.8

)

 

-17.5

%

 

1,099.3

 

 

1,224.7

 

 

125.4

 

 

11.4

%

 

 

Canada Retail Mutual Funds - no upfront sales comm

 

79.8

 

 

82.9

 

 

76.3

 

 

78.9

 

 

82.2

 

 

97.5

 

 

157.9

 

 

81.6

 

 

106.9

%

 

239.0

 

 

337.7

 

 

98.6

 

 

41.3

%

 

 

Segregated Funds

 

75.1

 

 

52.2

 

 

43.5

 

 

48.2

 

 

67.3

 

 

51.3

 

 

41.6

 

 

(1.9

)

 

-4.4

%

 

170.8

 

 

160.2

 

 

(10.6

)

 

-6.2

%

 

 

 

 

Total product sales

$

2,853.5

 

$

3,040.2

 

$

2,790.4

 

$

3,019.0

 

$

3,065.4

 

$

2,689.6

 

$

2,161.5

 

$

(629.0

)

 

-22.5

%

$

8,684.1

 

$

7,916.4

 

$

(767.7

)

 

-8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Canada Retail Mutual Funds

$

503.9

 

$

439.9

 

$

391.1

 

$

421.9

 

$

519.9

 

$

348.1

 

$

270.2

 

$

(120.9

)

 

-30.9

%

$

1,334.8

 

$

1,138.2

 

$

(196.6

)

 

-14.7

%

 

 

Segregated Funds

 

75.1

 

 

52.2

 

 

43.5

 

 

48.2

 

 

67.3

 

 

51.3

 

 

41.6

 

 

(1.9

)

 

-4.4

%

 

170.8

 

 

160.2

 

 

(10.6

)

 

-6.2

%

 

 

 

Total Canada product sales

 

579.0

 

 

492.0

 

 

434.6

 

 

470.0

 

 

587.1

 

 

399.4

 

 

311.8

 

 

(122.9

)

 

-28.3

%

 

1,505.6

 

 

1,298.3

 

 

(207.3

)

 

-13.8

%

 

 

 

Total U.S. product sales

 

2,274.5

 

 

2,548.2

 

 

2,355.8

 

 

2,549.0

 

 

2,478.2

 

 

2,290.1

 

 

1,849.7

 

 

(506.1

)

 

-21.5

%

 

7,178.5

 

 

6,618.1

 

 

(560.4

)

 

-7.8

%

 

 

 

 

Total product sales

$

2,853.5

 

$

3,040.2

 

$

2,790.4

 

$

3,019.0

 

$

3,065.4

 

$

2,689.6

 

$

2,161.5

 

$

(629.0

)

 

-22.5

%

$

8,684.1

 

$

7,916.4

 

$

(767.7

)

 

-8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client asset values, beginning of period ($mills)

$

81,533

 

$

85,888

 

$

91,735

 

$

91,765

 

$

97,312

 

$

93,708

 

$

82,291

 

$

(9,444

)

 

-10.3

%

$

81,533

 

$

97,312

 

$

15,779

 

 

19.4

%

 

 

Inflows

 

2,853

 

 

3,040

 

 

2,790

 

 

3,019

 

 

3,065

 

 

2,690

 

 

2,161

 

 

(629

)

 

-22.5

%

 

8,684

 

 

7,916

 

 

(768

)

 

-8.8

%

 

 

Outflows (1)

 

(1,759

)

 

(1,826

)

 

(1,756

)

 

(1,819

)

 

(1,900

)

 

(1,797

)

 

(1,447

)

 

309

 

 

17.6

%

 

(5,341

)

 

(5,144

)

 

198

 

 

3.7

%

 

 

 

 

Net flows

 

1,095

 

 

1,214

 

 

1,034

 

 

1,200

 

 

1,166

 

 

893

 

 

714

 

 

(320

)

 

-30.9

%

 

3,343

 

 

2,773

 

 

(570

)

nm

 

 

 

Foreign currency impact, net

 

172

 

 

200

 

 

(323

)

 

42

 

 

171

 

 

(474

)

 

(802

)

 

(478

)

 

-148.0

%

 

49

 

 

(1,105

)

 

(1,154

)

nm

 

 

 

Change in market value, net and other (2)

 

3,088

 

 

4,433

 

 

(681

)

 

4,306

 

 

(4,941

)

 

(11,836

)

 

(3,466

)

 

(2,785

)

nm

 

 

6,840

 

 

(20,243

)

 

(27,083

)

nm

 

 

Client asset values, end of period

$

85,888

 

$

91,735

 

$

91,765

 

$

97,312

 

$

93,708

 

$

82,291

 

$

78,737

 

$

(13,028

)

 

-14.2

%

$

91,765

 

$

78,737

 

$

(13,028

)

 

-14.2

%

 

 

Annualized net flows as % of beginning of period asset values

 

5.4

%

 

5.7

%

 

4.5

%

 

5.2

%

 

4.8

%

 

3.8

%

 

3.5

%

 

-1.0

%

nm

 

 

5.5

%

 

3.8

%

 

-1.7

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average client asset values ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

41,161

 

$

44,398

 

$

46,113

 

$

47,139

 

$

46,429

 

$

42,870

 

$

40,331

 

$

(5,782

)

 

-12.5

%

$

43,890

 

$

43,210

 

$

(681

)

 

-1.6

%

 

 

Canada Retail Mutual Funds

 

10,268

 

 

11,256

 

 

11,667

 

 

11,984

 

 

12,119

 

 

11,539

 

 

10,840

 

 

(827

)

 

-7.1

%

 

11,064

 

 

11,499

 

 

435

 

 

3.9

%

 

 

Managed Accounts

 

5,295

 

 

5,915

 

 

6,362

 

 

6,772

 

 

7,077

 

 

6,960

 

 

6,817

 

 

455

 

 

7.1

%

 

5,857

 

 

6,951

 

 

1,094

 

 

18.7

%

 

 

Indexed Annuities

 

2,495

 

 

2,541

 

 

2,585

 

 

2,620

 

 

2,650

 

 

2,677

 

 

2,696

 

 

111

 

 

4.3

%

 

2,540

 

 

2,675

 

 

134

 

 

5.3

%

 

 

Variable Annuities and other

 

21,291

 

 

22,554

 

 

23,193

 

 

23,567

 

 

23,218

 

 

21,431

 

 

20,269

 

 

(2,924

)

 

-12.6

%

 

22,346

 

 

21,639

 

 

(707

)

 

-3.2

%

 

 

Segregated Funds

 

2,622

 

 

2,713

 

 

2,732

 

 

2,727

 

 

2,710

 

 

2,517

 

 

2,368

 

 

(364

)

 

-13.3

%

 

2,689

 

 

2,532

 

 

(157

)

 

-5.8

%

 

 

 

 

Total

$

83,131

 

$

89,378

 

$

92,652

 

$

94,809

 

$

94,203

 

$

87,994

 

$

83,320

 

$

(9,332

)

 

-10.1

%

$

88,387

 

$

88,506

 

$

119

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada Retail Mutual Funds

$

10,268

 

$

11,256

 

$

11,667

 

$

11,984

 

$

12,119

 

$

11,539

 

$

10,840

 

$

(827

)

 

-7.1

%

$

11,064

 

$

11,499

 

$

435

 

 

3.9

%

 

 

Segregated Funds

 

2,622

 

 

2,713

 

 

2,732

 

 

2,727

 

 

2,710

 

 

2,517

 

 

2,368

 

 

(364

)

 

-13.3

%

 

2,689

 

 

2,532

 

 

(157

)

 

-5.8

%

 

 

 

Total Canada average client assets

 

12,890

 

 

13,969

 

 

14,399

 

 

14,711

 

 

14,829

 

 

14,056

 

 

13,208

 

 

(1,192

)

 

-8.3

%

 

13,753

 

 

14,031

 

 

278

 

 

2.0

%

 

 

 

Total U.S. average client assets

 

70,241

 

 

75,409

 

 

78,252

 

 

80,098

 

 

79,374

 

 

73,938

 

 

70,112

 

 

(8,140

)

 

-10.4

%

 

74,634

 

 

74,475

 

 

(159

)

 

-0.2

%

 

 

 

 

Total average client assets

$

83,131

 

$

89,378

 

$

92,652

 

$

94,809

 

$

94,203

 

$

87,994

 

$

83,320

 

$

(9,332

)

 

-10.1

%

$

88,387

 

$

88,506

 

$

119

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recordkeeping and custodial

 

2,115

 

 

2,159

 

 

2,192

 

 

2,218

 

 

2,243

 

 

2,277

 

 

2,295

 

 

104

 

 

4.7

%

 

2,155

 

 

2,272

 

 

117

 

 

5.4

%

 

 

Recordkeeping only

 

714

 

 

741

 

 

762

 

 

780

 

 

797

 

 

812

 

 

820

 

 

58

 

 

7.6

%

 

739

 

 

810

 

 

71

 

 

9.6

%

 

 

 

 

Total

 

2,830

 

 

2,899

 

 

2,954

 

 

2,998

 

 

3,040

 

 

3,089

 

 

3,115

 

 

162

 

 

5.5

%

 

2,894

 

 

3,082

 

 

188

 

 

6.5

%

 

(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 18

 


 

 

Senior Health - Financial Results, Financial Analysis Key Statistics

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2021

Q2
2021

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$
Change

 

%
Change

 

Senior Health Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees (1)

 

 

$

21,558

 

$

29,345

 

$

1,278

 

$

9,343

 

$

14,601

 

$

(6,958

)

 

-32.3

%

$

21,558

 

$

25,222

 

$

3,664

 

 

17.0

%

 

Other, net (2)

 

 

 

1,378

 

 

8,159

 

 

4,553

 

 

2,471

 

 

2,583

 

 

1,204

 

 

87.4

%

 

1,378

 

 

9,606

 

 

8,228

 

nm

 

 

Revenues

 

 

 

22,937

 

 

37,504

 

 

5,831

 

 

11,814

 

 

17,183

 

 

(5,753

)

 

-25.1

%

 

22,937

 

 

34,828

 

 

11,891

 

 

51.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract acquisition costs (3)

 

 

 

23,524

 

 

29,264

 

 

20,649

 

 

19,384

 

 

13,446

 

 

(10,079

)

 

-42.8

%

 

23,524

 

 

53,479

 

 

29,955

 

 

127.3

%

 

Adjusted other operating expenses

 

 

 

7,485

 

 

8,411

 

 

7,868

 

 

8,514

 

 

7,461

 

 

(24

)

 

-0.3

%

 

7,485

 

 

23,842

 

 

16,358

 

nm

 

 

Adjusted operating benefits and expenses

 

 

 

31,009

 

 

37,675

 

 

28,517

 

 

27,898

 

 

20,907

 

 

(10,102

)

 

-32.6

%

 

31,009

 

 

77,321

 

 

46,312

 

 

149.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income before income taxes including NCI

 

 

$

(8,072

)

$

(171

)

$

(22,686

)

$

(16,084

)

$

(3,723

)

$

4,349

 

 

53.9

%

$

(8,072

)

$

(42,493

)

$

(34,421

)

nm

 

 

Non-controlling interest before income taxes

 

 

 

(1,465

)

 

(540

)

 

(3,668

)

 

(3,129

)

 

 

 

1,465

 

 

100.0

%

 

(1,465

)

 

(6,797

)

 

(5,332

)

nm

 

 

Adjusted operating income before income taxes attributable to Primerica, Inc.

 

 

$

(6,608

)

$

369

 

$

(19,018

)

$

(12,955

)

$

(3,723

)

$

2,884

 

 

43.7

%

$

(6,608

)

$

(35,696

)

$

(29,089

)

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Health EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income before income taxes including NCI

 

 

$

(8,072

)

$

(171

)

$

(22,686

)

$

(16,084

)

$

(3,723

)

$

4,349

 

 

53.9

%

$

(8,072

)

$

(42,493

)

$

(34,421

)

nm

 

 

Less: Amortization of intangibles

 

 

 

(2,900

)

 

(2,900

)

 

(2,600

)

 

(2,800

)

 

(2,800

)

 

100

 

 

3.4

%

 

(2,900

)

 

(8,200

)

 

(5,300

)

nm

 

 

Less: Depreciation

 

 

 

(244

)

 

(249

)

 

(245

)

 

(226

)

 

(221

)

 

24

 

 

9.7

%

 

(244

)

 

(691

)

 

(447

)

nm

 

 

Adjusted EBITDA (Including non-controlling interest) (4)

 

 

$

(4,928

)

$

2,978

 

$

(19,841

)

$

(13,058

)

$

(703

)

$

4,225

 

 

85.7

%

$

(4,928

)

$

(33,602

)

$

(28,674

)

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Analysis and Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Health submitted policies (5)

 

 

 

20,867

 

 

39,142

 

 

26,231

 

 

19,652

 

 

16,095

 

 

(4,772

)

 

-22.9

%

 

20,867

 

 

61,978

 

 

41,111

 

nm

 

 

Senior Health approved policies (6)

 

 

 

18,276

 

 

32,047

 

 

23,594

 

 

17,925

 

 

14,862

 

 

(3,414

)

 

-18.7

%

 

18,276

 

 

56,381

 

 

38,105

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primerica representatives Senior Health certified

 

 

 

17,588

 

 

26,441

 

 

42,147

 

 

60,412

 

 

83,280

 

 

65,692

 

nm

 

 

17,588

 

 

83,280

 

 

65,692

 

nm

 

 

Senior Health submitted policies sourced by Primerica representatives

 

 

 

319

 

 

4,175

 

 

988

 

 

831

 

 

1,016

 

 

697

 

nm

 

 

319

 

 

2,835

 

 

2,516

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTV per approved policy (7)

 

 

$

1,180

 

$

1,069

 

$

862

 

$

820

 

$

868

 

$

(312

)

 

-26.4

%

$

1,180

 

$

850

 

$

(329

)

 

-27.9

%

 

CAC per approved policy (7)

 

 

$

1,287

 

$

913

 

$

875

 

$

1,081

 

$

905

 

$

(382

)

 

-29.7

%

$

1,287

 

$

949

 

$

(339

)

 

-26.3

%

 

LTV / CAC multiple

 

 

 

0.9

x

 

1.2

x

 

1.0

x

 

0.8

x

 

1.0

x

 

0.0

x

nm

 

 

0.9

x

 

0.9

x

 

0.0

x

nm

 

 

(1)
Commission revenue recognized based on the estimated Lifetime value (LTV) to be collected over the estimated life of an approved policy for the relevant period based on multiple factors, including but not limited to contracted commission rates, carrier mix, expected policy turnover, historical chargeback activity and applied constraints. Adjustments to revenue outside of LTV for approved policies from prior periods are recognized when our cash collections are different from the estimated constrained LTV’s which we refer to as tail revenue.
(2)
Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition.
(3)
Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs.
(4)
Adjusted EBITDA - Earnings before interest, taxes, depreciation, amortization and certain adjustments for non-cash or non-recurring expenses including purchase accounting adjustments.
(5)
Senior Health submitted policies - represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier. The applicant may need to take additional actions, including providing subsequent information before the application is reviewed by the health insurance carrier.
(6)
Senior Health approved policies - represent an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force.
(7)
In whole dollars.

 

13 of 18

 


 

 

Corporate Other Distributed Products - Financial Results

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

 

YTD
2021

 

YTD
2022

 

$
Change

 

%
Change

 

Corporate & Other Distributed Products Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

5,713

 

$

5,800

 

$

5,788

 

$

5,020

 

$

5,412

 

$

5,441

 

$

5,494

 

$

(294

)

 

-5.1

%

$

17,300

 

$

16,347

 

$

(954

)

 

-5.5

%

 

Ceded premiums

 

(1,423

)

 

(1,822

)

 

(1,459

)

 

(1,963

)

 

(1,439

)

 

(1,642

)

 

(1,454

)

 

5

 

 

0.4

%

 

(4,704

)

 

(4,535

)

 

168

 

 

3.6

%

 

Net premiums

 

4,290

 

 

3,978

 

 

4,328

 

 

3,057

 

 

3,973

 

 

3,799

 

 

4,040

 

 

(289

)

 

-6.7

%

 

12,596

 

 

11,811

 

 

(785

)

 

-6.2

%

 

Allocated net investment income

 

12,592

 

 

11,954

 

 

11,321

 

 

10,738

 

 

9,559

 

 

10,252

 

 

11,173

 

 

(148

)

 

-1.3

%

 

35,867

 

 

30,983

 

 

(4,884

)

 

-13.6

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid Legal Services

 

4,783

 

 

5,182

 

 

6,712

 

 

4,085

 

 

4,287

 

 

4,664

 

 

5,672

 

 

(1,040

)

 

-15.5

%

 

16,676

 

 

14,623

 

 

(2,053

)

 

-12.3

%

 

Auto and Homeowners Insurance

 

1,787

 

 

2,101

 

 

2,436

 

 

1,971

 

 

1,591

 

 

2,056

 

 

2,647

 

 

211

 

 

8.7

%

 

6,324

 

 

6,294

 

 

(30

)

 

-0.5

%

 

Mortgage loans

 

4,960

 

 

6,061

 

 

6,719

 

 

6,598

 

 

4,818

 

 

3,128

 

 

2,103

 

 

(4,616

)

 

-68.7

%

 

17,740

 

 

10,049

 

 

(7,691

)

 

-43.4

%

 

Other sales commissions

 

2,041

 

 

2,291

 

 

2,129

 

 

2,307

 

 

1,932

 

 

2,103

 

 

2,090

 

 

(39

)

 

-1.8

%

 

6,461

 

 

6,124

 

 

(336

)

 

-5.2

%

 

Other, net

 

836

 

 

1,040

 

 

1,101

 

 

992

 

 

1,117

 

 

889

 

 

1,621

 

 

519

 

 

47.1

%

 

2,977

 

 

3,626

 

 

649

 

 

21.8

%

 

Adjusted operating revenues

 

31,288

 

 

32,607

 

 

34,746

 

 

29,746

 

 

27,276

 

 

26,890

 

 

29,345

 

 

(5,400

)

 

-15.5

%

 

98,641

 

 

83,511

 

 

(15,130

)

 

-15.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

4,826

 

 

5,859

 

 

3,728

 

 

4,443

 

 

4,166

 

 

4,280

 

 

3,937

 

 

209

 

 

5.6

%

 

14,413

 

 

12,382

 

 

(2,031

)

 

-14.1

%

 

Amortization of DAC

 

246

 

 

264

 

 

347

 

 

203

 

 

255

 

 

247

 

 

427

 

 

80

 

 

23.0

%

 

857

 

 

930

 

 

73

 

 

8.5

%

 

Insurance commissions

 

299

 

 

306

 

 

320

 

 

246

 

 

282

 

 

290

 

 

283

 

 

(37

)

 

-11.5

%

 

925

 

 

855

 

 

(70

)

 

-7.6

%

 

Insurance expenses

 

1,391

 

 

1,327

 

 

1,367

 

 

1,257

 

 

1,237

 

 

1,132

 

 

1,081

 

 

(286

)

 

-20.9

%

 

4,086

 

 

3,449

 

 

(636

)

 

-15.6

%

 

Sales commissions

 

6,434

 

 

7,185

 

 

8,290

 

 

6,839

 

 

5,952

 

 

5,484

 

 

5,592

 

 

(2,698

)

 

-32.5

%

 

21,908

 

 

17,028

 

 

(4,881

)

 

-22.3

%

 

Interest expense

 

7,145

 

 

7,141

 

 

7,529

 

 

8,804

 

 

6,853

 

 

6,814

 

 

6,802

 

 

(727

)

 

-9.7

%

 

21,814

 

 

20,469

 

 

(1,345

)

 

-6.2

%

 

Adjusted other operating expenses

 

35,211

 

 

27,413

 

 

26,695

 

 

30,301

 

 

36,475

 

 

30,530

 

 

28,974

 

 

2,279

 

 

8.5

%

 

89,319

 

 

95,978

 

 

6,658

 

 

7.5

%

 

Adjusted benefits and expenses

 

55,551

 

 

49,495

 

 

48,277

 

 

52,093

 

 

55,219

 

 

48,777

 

 

47,096

 

 

(1,181

)

 

-2.4

%

 

153,323

 

 

151,092

 

 

(2,232

)

 

-1.5

%

 

Adjusted operating income before income taxes

$

(24,263

)

$

(16,888

)

$

(13,531

)

$

(22,346

)

$

(27,943

)

$

(21,887

)

$

(17,750

)

$

(4,219

)

 

-31.2

%

$

(54,682

)

$

(67,581

)

$

(12,898

)

 

-23.6

%

 

14 of 18

 


 

 

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

As of or for the period ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% 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

 

$

438,025

 

$

438,025

 

$

-

 

 

14.9

%

 

13.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury

 

 

37,367

 

 

38,241

 

 

(874

)

 

1.3

%

 

1.2

%

 

1.13

%

AAA

 

Government

 

 

224,086

 

 

250,211

 

 

(26,124

)

 

7.6

%

 

7.7

%

 

2.90

%

AA-

 

Tax-Exempt Municipal

 

 

31,351

 

 

37,606

 

 

(6,255

)

 

1.1

%

 

1.2

%

 

2.70

%

AA

 

Corporate

 

 

1,223,441

 

 

1,382,788

 

 

(159,348

)

 

41.7

%

 

42.5

%

 

3.50

%

BBB+

 

Mortgage Backed

 

 

424,518

 

 

490,003

 

 

(65,485

)

 

14.5

%

 

15.1

%

 

2.89

%

AAA

 

Asset Backed

 

 

139,013

 

 

154,274

 

 

(15,262

)

 

4.7

%

 

4.7

%

 

3.22

%

AA-

 

Cmbs

 

 

125,739

 

 

139,940

 

 

(14,201

)

 

4.3

%

 

4.3

%

 

3.24

%

AA-

 

Private

 

 

252,381

 

 

285,421

 

 

(33,040

)

 

8.6

%

 

8.8

%

 

4.21

%

BBB

 

Redeemable Preferred

 

 

3,811

 

 

4,248

 

 

(438

)

 

0.1

%

 

0.1

%

 

5.27

%

BBB

 

 

 

 

 

 

Total Fixed Income

 

 

2,461,707

 

 

2,782,733

 

 

(321,026

)

 

83.9

%

 

85.5

%

 

3.34

%

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities and Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual Preferred

 

 

9,027

 

 

9,027

 

 

-

 

 

0.3

%

 

0.3

%

 

 

 

 

Common Stock

 

 

18,540

 

 

18,540

 

 

-

 

 

0.6

%

 

0.6

%

 

 

 

 

Mutual Fund

 

 

5,512

 

 

5,512

 

 

-

 

 

0.2

%

 

0.2

%

 

 

 

 

 

 

 

 

 

Total Equities

 

 

33,079

 

 

33,079

 

 

-

 

 

1.1

%

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

2,932,811

 

$

3,253,837

 

$

(321,026

)

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Corporate Portfolio by Sector

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance

 

$

153,134

 

$

175,580

 

$

(22,445

)

 

12.5

%

 

12.7

%

 

 

 

 

Consumer Non Cyclical

 

 

132,635

 

 

150,780

 

 

(18,146

)

 

10.8

%

 

10.9

%

 

 

 

 

Energy

 

 

125,082

 

 

141,091

 

 

(16,009

)

 

10.2

%

 

10.2

%

 

 

 

 

Reits

 

 

116,103

 

 

135,552

 

 

(19,449

)

 

9.5

%

 

9.8

%

 

 

 

 

Consumer Cyclical

 

 

103,890

 

 

117,668

 

 

(13,777

)

 

8.5

%

 

8.5

%

 

 

 

 

Banking

 

 

93,436

 

 

99,909

 

 

(6,473

)

 

7.6

%

 

7.2

%

 

 

 

 

Technology

 

 

93,221

 

 

103,042

 

 

(9,821

)

 

7.6

%

 

7.5

%

 

 

 

 

Capital Goods

 

 

63,968

 

 

70,831

 

 

(6,863

)

 

5.2

%

 

5.1

%

 

 

 

 

Basic Industry

 

 

60,211

 

 

69,669

 

 

(9,458

)

 

4.9

%

 

5.0

%

 

 

 

 

Electric

 

 

56,327

 

 

62,660

 

 

(6,333

)

 

4.6

%

 

4.5

%

 

 

 

 

Finance Companies

 

 

53,924

 

 

62,763

 

 

(8,839

)

 

4.4

%

 

4.5

%

 

 

 

 

Transportation

 

 

53,620

 

 

59,705

 

 

(6,085

)

 

4.4

%

 

4.3

%

 

 

 

 

Brokerage Assetmanagers Exchanges

 

 

45,149

 

 

51,689

 

 

(6,540

)

 

3.7

%

 

3.7

%

 

 

 

 

Communications

 

 

44,789

 

 

49,663

 

 

(4,874

)

 

3.7

%

 

3.6

%

 

 

 

 

Financial Other

 

 

8,532

 

 

9,582

 

 

(1,050

)

 

0.7

%

 

0.7

%

 

 

 

 

Natural Gas

 

 

7,349

 

 

7,968

 

 

(619

)

 

0.6

%

 

0.6

%

 

 

 

 

Industrial Other

 

 

5,914

 

 

6,925

 

 

(1,011

)

 

0.5

%

 

0.5

%

 

 

 

 

Utility Other

 

 

4,465

 

 

5,387

 

 

(922

)

 

0.4

%

 

0.4

%

 

 

 

 

Owned No Guarantee

 

 

1,693

 

 

2,325

 

 

(632

)

 

0.1

%

 

0.2

%

 

 

 

 

 

 

 

 

 

Total Corporate portfolio

 

$

1,223,441

 

$

1,382,788

 

$

(159,348

)

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-Maturity Securities - Effective Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

< 1 Yr.

 

$

211,440

 

$

213,180

 

$

(1,740

)

 

8.6

%

 

7.7

%

 

3.11

%

 

 

 

1-2 Yrs.

 

 

230,905

 

 

237,861

 

 

(6,956

)

 

9.4

%

 

8.5

%

 

3.70

%

 

 

 

2-5 Yrs.

 

 

767,210

 

 

831,323

 

 

(64,113

)

 

31.2

%

 

29.9

%

 

3.49

%

 

 

 

5-10 Yrs.

 

 

783,875

 

 

924,914

 

 

(141,038

)

 

31.8

%

 

33.2

%

 

3.30

%

 

 

 

> 10 Yrs.

 

 

468,277

 

 

575,455

 

 

(107,178

)

 

19.0

%

 

20.7

%

 

3.15

%

 

 

 

 

 

 

 

Total Fixed Income

 

$

2,461,707

 

$

2,782,733

 

$

(321,026

)

 

100.0

%

 

100.0

%

 

3.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Duration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income portfolio duration

 

 

4.8

 

years

 

 

 

 

 

 

 

 

 

 

 

 

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

 

15 of 18

 


 

 

Investment Portfolio - Quality Ratings As of September 30, 2022

PRIMERICA, INC.

Financial Supplement

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Portfolio Quality Ratings (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

$

597,966

 

 

21.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AA

 

 

308,333

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A

 

 

640,533

 

 

23.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BBB

 

 

1,116,851

 

 

40.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Below Investment Grade

 

 

76,395

 

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA

 

 

42,654

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income

 

$

2,782,733

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

Public Corporate asset class:

 

 

 

 

 

 

 

Private Placement asset class:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

11,442

 

 

0.8

%

 

 

 

AAA

 

$

-

 

 

 

 

AA

 

 

68,570

 

 

5.0

%

 

 

 

AA

 

 

5,316

 

 

1.9

%

 

A

 

 

355,120

 

 

25.7

%

 

 

 

A

 

 

64,780

 

 

22.7

%

 

BBB

 

 

879,827

 

 

63.6

%

 

 

 

BBB

 

 

212,211

 

 

74.4

%

 

Below Investment Grade

 

 

67,653

 

 

4.9

%

 

 

 

Below Investment Grade

 

 

3,115

 

 

1.1

%

 

NA

 

 

176

 

 

0.0

%

 

 

 

NA

 

 

-

 

 

 

 

 

 

 

 

 

Total Corporate

 

$

1,382,788

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Private

 

$

285,421

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMBS asset class:

 

 

 

 

 

 

 

Mortgage-Backed asset class:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

60,838

 

 

43.5

%

 

 

 

AAA

 

$

442,178

 

 

90.2

%

 

AA

 

 

8,947

 

 

6.4

%

 

 

 

AA

 

 

47,589

 

 

9.7

%

 

A

 

 

70,155

 

 

50.1

%

 

 

 

A

 

 

138

 

 

0.0

%

 

BBB

 

 

-

 

 

 

 

 

 

BBB

 

 

-

 

 

 

 

Below Investment Grade

 

 

-

 

 

 

 

 

 

Below Investment Grade

 

 

75

 

 

0.0

%

 

NA

 

 

-

 

 

 

 

 

 

NA

 

 

23

 

 

0.0

%

 

 

 

 

 

 

Total CMBS

 

$

139,940

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Mortgage-Backed

 

$

490,003

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Backed asset class:

 

 

 

 

 

 

 

Treasury & Government asset classes:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

23,793

 

 

15.4

%

 

 

 

AAA

 

$

58,808

 

 

20.4

%

 

AA

 

 

7,626

 

 

4.9

%

 

 

 

AA

 

 

142,010

 

 

49.2

%

 

A

 

 

69,865

 

 

45.3

%

 

 

 

A

 

 

73,112

 

 

25.4

%

 

BBB

 

 

8,412

 

 

5.5

%

 

 

 

BBB

 

 

11,091

 

 

3.8

%

 

Below Investment Grade

 

 

2,123

 

 

1.4

%

 

 

 

Below Investment Grade

 

 

3,429

 

 

1.2

%

 

NA

 

 

42,455

 

 

27.5

%

 

 

 

NA

 

 

-

 

 

 

 

 

 

 

 

 

Total Asset-Backed

 

$

154,274

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Treasury & Government

 

$

288,451

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAIC Designations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

1,322,263

 

 

53.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

1,042,003

 

 

42.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

82,659

 

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

7,813

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

691

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Insurer Fixed Income (2)

 

 

2,455,429

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (3)

 

 

360,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

438,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

3,253,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.
(2)
NAIC ratings for our U.S. insurance companies' fixed income portfolios.
(3)
Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.

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

16 of 18

 


 

 

Investment Portfolio - Supplemental Data and Trends

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

(Dollars in thousands)

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

$
Change

 

%
Change

Net Investment Income by Source

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities (available-for-sale)

$

20,020

 

$

20,155

 

$

19,860

 

$

20,328

 

$

20,889

 

$

22,414

 

$

23,067

 

$

3,207

 

16.1%

 

Fixed-maturity securities (held-to-maturity)

 

15,146

 

 

15,495

 

 

15,741

 

 

15,825

 

 

15,515

 

 

15,815

 

 

16,283

 

 

542

 

3.4%

 

Equity Securities

 

391

 

 

411

 

 

413

 

 

416

 

 

387

 

 

371

 

 

373

 

 

(40

)

-9.7%

 

Deposit asset underlying 10% reinsurance treaty

 

1,368

 

 

1,238

 

 

987

 

 

785

 

 

589

 

 

485

 

 

557

 

 

(430

)

-43.6%

 

Deposit asset - Mark to Market

 

(793

)

 

(170

)

 

(640

)

 

(899

)

 

(2,099

)

 

(1,254

)

 

(68

)

 

572

 

-89.4%

 

Policy loans and other invested assets

 

231

 

 

98

 

 

289

 

 

401

 

 

102

 

 

58

 

 

436

 

 

147

 

51.0%

 

Cash & cash equivalents

 

119

 

 

156

 

 

96

 

 

85

 

 

125

 

 

498

 

 

1,714

 

 

1,618

 

n/m

 

 

 

 

 

Total investment income

 

36,483

 

 

37,383

 

 

36,746

 

 

36,940

 

 

35,508

 

 

38,387

 

 

42,362

 

 

5,616

 

15.3%

 

Investment expenses

 

1,284

 

 

1,353

 

 

1,004

 

 

1,114

 

 

1,088

 

 

1,288

 

 

1,733

 

 

729

 

72.6%

 

Interest Expense on Surplus Note

 

15,146

 

 

15,495

 

 

15,741

 

 

15,825

 

 

15,515

 

 

15,815

 

 

16,283

 

 

542

 

3.4%

 

 

 

 

 

Net investment income

$

20,052

 

$

20,535

 

$

20,001

 

$

20,001

 

$

18,905

 

$

21,284

 

$

24,346

 

$

4,345

 

21.7%

 

 

Fixed income book yield, end of period

 

3.30

%

 

3.31

%

 

3.23

%

 

3.12

%

 

3.18

%

 

3.25

%

 

3.34

%

 

 

 

 

 

New money yield

 

1.72

%

 

2.68

%

 

2.21

%

 

1.60

%

 

3.37

%

 

4.21

%

 

3.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q3

 

 

 

 

 

 

 

 

 

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

% Pt
Change

 

 

Fixed Income Portfolio Quality Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

16.6

%

 

16.5

%

 

18.0

%

 

18.7

%

 

21.0

%

 

22.0

%

 

21.5

%

 

3.5

%

 

 

AA

 

12.2

%

 

11.6

%

 

11.0

%

 

11.8

%

 

11.2

%

 

11.2

%

 

11.1

%

 

0.1

%

 

 

A

 

23.0

%

 

22.1

%

 

23.6

%

 

24.4

%

 

23.7

%

 

23.0

%

 

23.0

%

 

-0.6

%

 

 

BBB

 

44.0

%

 

45.5

%

 

42.9

%

 

40.8

%

 

39.8

%

 

39.6

%

 

40.1

%

 

-2.8

%

 

 

Below Investment Grade

 

4.1

%

 

4.2

%

 

4.1

%

 

3.5

%

 

3.1

%

 

2.8

%

 

2.7

%

 

-1.3

%

 

 

NA

 

0.1

%

 

0.1

%

 

0.3

%

 

0.8

%

 

1.2

%

 

1.3

%

 

1.5

%

 

1.2

%

 

 

 

 

 

 

Total Fixed Income

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rating by amortized cost

A-

 

A-

 

A

 

A

 

A

 

A

 

A

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2022

 

 

 

As of September 30, 2022

 

 

 

 

 

 

As of September 30, 2022

 

 

 

 

 

 

 

 

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

$

14,733

 

$

15,991

 

AAA

 

Canada

$

92,375

 

$

103,645

 

 

 

AAA

$

1,996

 

$

2,124

 

 

2

Province of Quebec Canada

 

14,271

 

 

14,935

 

A+

 

Australia

 

21,567

 

 

23,246

 

 

 

AA

 

7,650

 

 

7,671

 

 

3

Province of Ontario Canada

 

13,629

 

 

14,274

 

AA

 

Cayman Islands

 

17,828

 

 

18,971

 

 

 

A

 

10,618

 

 

12,409

 

 

4

Province of Alberta Canada

 

10,684

 

 

11,729

 

BBB+

 

United Kingdom

 

16,234

 

 

17,005

 

 

 

BBB

 

9,337

 

 

10,641

 

 

5

TC Energy Corp

 

10,356

 

 

11,320

 

BBB+

 

Japan

 

7,751

 

 

9,359

 

 

 

Below Investment Grade

 

2,792

 

 

3,429

 

 

6

Enbridge Inc

 

10,274

 

 

11,538

 

A

 

Bermuda

 

7,191

 

 

8,198

 

 

 

NA

 

 

 

 

 

7

Manulife Financial Corp

 

9,067

 

 

9,513

 

AA+

 

France

 

6,853

 

 

7,084

 

 

 

 

Total

$

32,393

 

$

36,275

 

 

8

Capital One Financial Corp

 

8,932

 

 

10,695

 

A

 

Ireland

 

6,042

 

 

7,571

 

 

 

 

 

 

 

 

 

 

 

9

Province of British Columbia Canada

 

8,869

 

 

10,579

 

BBB+

 

Mexico

 

5,437

 

 

5,463

 

 

 

 

 

 

 

 

 

 

 

10

Ontario Teachers' Pension Plan

 

8,507

 

 

10,205

 

AA+

 

Netherlands

 

5,289

 

 

5,450

 

 

 

Non-Government Investments (1)

 

 

 

 

 

11

ConocoPhillips

 

8,183

 

 

9,095

 

BBB

 

Brazil

 

4,696

 

 

4,825

 

 

 

 

 

 

 

 

 

 

 

12

Fairfax Financial Holdings Ltd

 

8,042

 

 

8,456

 

A

 

Israel

 

3,706

 

 

4,006

 

 

 

AAA

$

2,882

 

$

2,999

 

 

13

Kemper Corp

 

8,034

 

 

9,828

 

BBB-

 

Supranational

 

3,496

 

 

3,623

 

 

 

AA

 

2,396

 

 

2,537

 

 

14

Brookfield Asset Management Inc

 

7,832

 

 

9,519

 

AA

 

Switzerland

 

3,495

 

 

3,556

 

 

 

A

 

44,977

 

 

49,137

 

 

15

Western & Southern Mutual Holdings Co

 

7,767

 

 

7,871

 

A+

 

Luxembourg

 

3,410

 

 

3,500

 

 

 

BBB

 

139,962

 

 

153,597

 

 

16

City of Toronto Canada

 

7,736

 

 

8,008

 

AA

 

Emerging Markets (2)

 

12,028

 

 

14,385

 

 

 

Below Investment Grade

 

8,145

 

 

7,961

 

 

17

Province of Newfoundland and Labrador

 

7,703

 

 

8,032

 

A+

 

All Other

 

 

18,447

 

 

18,077

 

 

 

NA

 

5,091

 

 

5,458

 

 

18

Morgan Stanley

 

7,468

 

 

7,766

 

BBB+

 

 

Total

$

235,846

 

$

257,964

 

 

 

 

Total

$

203,453

 

$

221,689

 

 

19

Bunge Ltd

 

7,318

 

 

8,101

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

Province of New Brunswick Canada

 

7,208

 

 

7,370

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

General Mills Inc

 

7,102

 

 

7,716

 

AA+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

Sammons Enterprises Inc

 

6,911

 

 

7,077

 

A-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

Apple Inc

 

6,896

 

 

8,090

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

Realty Income Corp

 

6,823

 

 

7,890

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25

Williams Cos Inc

 

6,753

 

 

7,443

 

A+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

221,100

 

$

243,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total fixed income portfolio

 

7.5

%

 

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
US$ denominated investments in issuers outside of the United States based on country of risk.
(2)
Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.

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

17 of 18

 


 

 

Five-Year Historical Key Statistics

PRIMERICA, INC.

Financial Supplement

 

(Dollars in millions)

2017

 

2018

 

2019

 

2020

 

2021

 

Q1
2021

 

Q2
2021

 

Q3
2021

 

Q4
2021

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recruits

 

303,867

 

 

290,886

 

 

282,207

 

 

400,345

 

 

349,374

 

 

94,633

 

 

89,285

 

 

91,884

 

 

73,572

 

 

84,707

 

 

70,215

 

 

127,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

116,827

 

 

126,121

 

 

130,736

 

 

130,522

 

 

134,907

 

 

134,907

 

 

132,030

 

 

132,041

 

 

130,023

 

 

129,515

 

 

130,206

 

 

132,149

 

 

New life-licensed representatives

 

48,535

 

 

48,041

 

 

44,739

 

 

48,106

 

 

39,622

 

 

10,833

 

 

10,112

 

 

9,381

 

 

9,296

 

 

9,983

 

 

11,529

 

 

12,518

 

 

Non-renewal and terminated representatives

 

(39,241

)

 

(43,426

)

 

(44,953

)

 

(43,721

)

 

(45,014

)

 

(13,710

)

 

(10,101

)

 

(11,399

)

 

(9,804

)

 

(9,292

)

 

(9,586

)

 

(10,354

)

Life-insurance licensed sales force, end of period

 

126,121

 

 

130,736

 

 

130,522

 

 

134,907

 

 

129,515

 

 

132,030

 

 

132,041

 

 

130,023

 

 

129,515

 

 

130,206

 

 

132,149

 

 

134,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

312,799

 

 

301,589

 

 

287,809

 

 

352,868

 

 

323,855

 

 

82,667

 

 

90,071

 

 

75,914

 

 

75,203

 

 

71,324

 

 

76,946

 

 

71,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life face amount

$

95,635

 

$

95,209

 

$

93,994

 

$

109,436

 

$

108,521

 

$

26,643

 

$

29,981

 

$

26,219

 

$

25,678

 

$

24,773

 

$

27,651

 

$

26,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term life face amount in force, beginning of period

$

728,385

 

$

763,831

 

$

781,041

 

$

808,262

 

$

858,818

 

$

858,818

 

$

869,643

 

$

886,519

 

$

894,018

 

$

903,404

 

$

909,632

 

$

914,438

 

 

Issued term life face amount

 

95,635

 

 

95,209

 

 

93,994

 

 

109,436

 

 

108,521

 

 

26,643

 

 

29,981

 

 

26,219

 

 

25,678

 

 

24,773

 

 

27,651

 

 

26,049

 

 

Terminated term life face amount

 

(65,958

)

 

(70,291

)

 

(71,519

)

 

(60,848

)

 

(64,798

)

 

(17,240

)

 

(14,706

)

 

(16,241

)

 

(16,610

)

 

(19,787

)

 

(19,298

)

 

(21,033

)

 

Foreign currency impact, net

 

5,769

 

 

(7,708

)

 

4,746

 

 

1,968

 

 

862

 

 

1,422

 

 

1,602

 

 

(2,480

)

 

319

 

 

1,242

 

 

(3,547

)

 

(6,669

)

Term life face amount in force, end of period

$

763,831

 

$

781,041

 

$

808,262

 

$

858,818

 

$

903,404

 

$

869,643

 

$

886,519

 

$

894,018

 

$

903,404

 

$

909,632

 

$

914,438

 

$

912,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated annualized issued term life premium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

255.4

 

$

250.8

 

$

244.8

 

$

303.6

 

$

297.2

 

$

74.5

 

$

82.6

 

$

70.7

 

$

69.4

 

$

65.5

 

$

72.3

 

$

68.0

 

 

Additions and increases in premium

 

49.5

 

 

55.2

 

 

60.2

 

 

68.9

 

 

77.0

 

 

18.0

 

 

20.3

 

 

19.5

 

 

19.1

 

 

18.4

 

 

20.6

 

 

19.5

 

 

 

Total estimated annualized issued term life premium

$

304.9

 

$

306.0

 

$

305.0

 

$

372.5

 

$

374.2

 

$

92.5

 

$

103.0

 

$

90.2

 

$

88.5

 

$

83.8

 

$

92.9

 

$

87.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment & Savings product sales

$

6,192.2

 

$

7,040.1

 

$

7,533.2

 

$

7,842.5

 

$

11,703.2

 

$

2,853.5

 

$

3,040.2

 

$

2,790.4

 

$

3,019.0

 

$

3,065.4

 

$

2,689.6

 

$

2,161.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment & Savings average client asset values

$

56,791

 

$

61,842

 

$

65,029

 

$

69,709

 

$

89,993

 

$

83,131

 

$

89,378

 

$

92,652

 

$

94,809

 

$

94,203

 

$

87,994

 

$

83,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closed U.S. Mortgage Volume (brokered)

$

 

$

 

$

31.1

 

$

442.5

 

$

1,229.2

 

$

262.3

 

$

298.6

 

$

337.6

 

$

330.8

 

$

235.9

 

$

152.7

 

$

99.8

 

 

18 of 18