Recruiting and licensing momentum drove
life-licensed sales force to a record 141,572; up 5% compared to
the prior year end
Issued Term Life policies up 12% and total
face amount issued up 16%
Investment and Savings Product sales up 13%
and ending client asset values up 15%
Earnings per diluted share (EPS) of $4.30
increased 9%; return on stockholders’ equity (ROE) was
27.8%
Diluted adjusted operating EPS of $4.25
increased 9%; adjusted net operating income return on adjusted
stockholders’ equity (ROAE) was 26.9%
Primerica, Inc. (NYSE: PRI) today announced financial results
for the quarter ended December 31, 2023. Total revenues of $726.3
million increased 6% compared to the fourth quarter of 2022. Net
income of $151.9 million increased 4%, while earnings per diluted
share of $4.30 increased 9% compared to the prior year period.
Adjusted operating revenues of $724.3 million increased 6%
compared to the fourth quarter of 2022. Adjusted net operating
income of $150.4 million increased 4%, while adjusted operating
earnings per diluted share of $4.25 increased 9% compared to the
prior year period.
Strong recruiting and licensing trends continue to reflect the
attractiveness of Primerica’s business model and fuel the growth of
its powerful distribution platform that now exceeds 141,500
life-licensed individuals. The Company’s financial results during
the fourth quarter reflected the benefit of a large and stable
block of in-force term life insurance policies, higher investment
products sales and appreciation of client asset values, while net
investment income was higher due to an increase in interest rates
and growth in the size of the investment portfolio. The Company
continued to experience pressures in senior health, resulting in a
small loss in the segment.
“Strong fourth quarter results completed another solid year at
Primerica as we continue to meet the growing financial needs of
middle-income families,” said Glenn Williams, Chief Executive
Officer of Primerica, Inc. “Our expanding sales force plays a
crucial role in our success, and I believe 2024 holds exciting
opportunities to build momentum as we work toward our biennial
convention in July.”
For the full year ended December 31, 2023, the Company recruited
nearly 362,000 individuals, resulting in 9% increase in new
insurance licenses and 5% growth in the size of the life-licensed
sales force. The momentum of the sales force led to an 8% increase
in issued term life insurance policies and a 15% increase in new
issued term life face amount. Investment product sales were solid
at $9.2 billion, declining 8% year-over-year due to pressures from
volatile equity markets in the first half of 2023. Comparing
financial results for the year ended December 31, 2023 to the year
ended December 31, 2022, net income of $576.6 million increased
23%, while earnings per diluted share of $15.94 increased 29%.
Excluding certain non-GAAP adjustments, such as the impact of a $60
million goodwill impairment in the prior year, adjusted net
operating income of $581.4 million increased 8%, while adjusted
operating earnings per diluted share of $16.07 increased 15%.
Fourth Quarter Distribution & Segment Results
Distribution Results
Q4 2023
Q4 2022
% Change
Adjusted Q4 2022
% Change
Life-Licensed Sales Force
141,572
135,208
5
%
Recruits
89,992
77,025
17
%
New Life-Licensed Representatives
13,029
11,117
17
%
Life Insurance Policies Issued (1)
88,757
72,544
22
%
79,282
12
%
Life Productivity (1) (2)
0.21
0.18
*
0.20
*
Issued Term Life Face Amount ($ billions)
(3)
$
29.3
$
25.3
16
%
ISP Product Sales ($ billions)
$
2.4
$
2.1
13
%
Average Client Asset Values ($
billions)
$
91.0
$
83.3
9
%
Senior Health Submitted Policies (4)
18,663
23,060
(19
)%
Senior Health Approved Policies (5)
17,181
20,705
(17
)%
Closed U.S. Mortgage Volume ($ million
brokered)
$
72.9
$
78.9
(8
)%
____________________
(1)
Previously reported numbers for the three
months ended December 31, 2022 have been adjusted as a result of a
product change made in the fourth quarter of 2022, which modified
how policies are structured in relation to individual lives. To
make year-over-year comparisons more consistent, we have provided
estimates for the prior year period.
(2)
Life productivity equals policies issued
divided by the average number of life insurance licensed
representatives per month.
(3)
Includes face amount on issued term life
policies, additional riders added to existing policies, and face
increases under increasing benefit riders.
(4)
Represents the number of completed
applications that, with respect to each such application, the
applicant has authorized us to submit to the health insurance
carrier.
(5)
Represents an estimate of submitted
policies approved by health insurance carriers during the indicated
period. Not all approved policies will go in force.
* Not calculated
Segment Results
Q4 2023
Q4 2022
% Change
($ in thousands)
Adjusted Operating Revenues:
Term Life Insurance
$
431,327
$
415,974
4
%
Investment and Savings Products
221,656
198,280
12
%
Senior Health
20,148
27,853
(28
)%
Corporate and Other Distributed Products
(1)
51,157
42,396
21
%
Total adjusted operating revenues
(1)
$
724,288
$
684,503
6
%
Adjusted Operating Income (Loss) before
income taxes:
Term Life Insurance
$
140,285
$
132,001
6
%
Investment and Savings Products
62,764
56,612
11
%
Senior Health
(2,681
)
4,285
NM
Corporate and Other Distributed Products
(1)
(5,377
)
(8,762
)
39
%
Total adjusted operating income before
income taxes (1)
$
194,991
$
184,136
6
%
____________________
(1)
See the Non-GAAP Financial Measures
section and the Adjusted Operating Results reconciliation tables at
the end of this release for additional information.
Life Insurance Licensed Sales Force
Primerica's entrepreneurial business opportunity continues to
generate a high degree of interest, leading to a year-over-year
increase of 17% in both licensing and recruiting during the fourth
quarter. In total, the Company recruited 89,992 individuals and
added 13,029 new life-licenses to end the year with a record
141,572 independent life-licensed representatives, up 5%
year-over-year.
Term Life Insurance
Sales volume remained robust with 88,757 new term life insurance
policies issued during the fourth quarter, a 12% increase compared
to the adjusted number of policies issued in the prior year period.
Issued term life face amount, which captures the face amount of
both new policies issued and additions to in-force policies,
increased 16% to $29.3 billion compared to $25.3 billion in the
prior year period. Productivity, as measured by the number of
policies issued per life-licensed reps per month, increased from an
adjusted 0.20 policies in the fourth quarter of 2022 to 0.21
policies in the fourth quarter of 2023.
Fourth quarter revenues of $431.3 million increased 4% compared
to the prior year period, while pre-tax operating income of $140.3
million increased 6%, in line with the growth in adjusted direct
premiums. The Company believes pressure from higher costs of living
has likely contributed to the elevated lapse rates it continues to
experience, although there was minimal impact on the fourth
quarter’s financial results. The benefits and claims ratio was
58.2% and the DAC amortization and insurance commissions ratio was
12.0%, both largely consistent with the prior year period.
Year-over-year, insurance expenses declined $1.6 million due to
higher expenses in the prior year period associated with the launch
of the new term life insurance products.
Investment and Savings Products
Total product sales of $2.4 billion during the fourth quarter
increased 13% compared to the prior year period driven by a
combination of stronger demand for variable annuities and U.S.
mutual funds. The Company also experienced increased momentum in
managed accounts sales following a temporary disruption caused by a
platform conversion during the third quarter. Client asset values
ended the year at $96.7 billion, up 15% year-over-year.
Fourth quarter revenues of $221.7 million increased 12% compared
to the prior year period, while pre-tax operating income of $62.8
million increased 11% driven by higher up-front revenue-generating
product sales and an increase in average client asset values.
Sales-based revenues and sales-based commission expenses increased
15% and 13%, respectively, benefiting from higher sales of variable
annuities. Asset-based revenues increased 12%, outpacing 9% growth
in average client asset values. This was due to a continued mix
shift toward U.S. managed accounts and products such as the
Canadian principal distributor mutual funds for which the Company
earns higher asset-based fees in lieu of up-front sales-based
compensation. The change in asset-based commission expenses was
consistent with the growth in asset-based revenues, when including
asset-based commission expenses on Canadian segregated funds which
are recognized as insurance commissions and amortization of DAC.
Year-over-year, operating expenses increased $3.9 million due to
timing of costs associated with the managed account platform
conversion.
Senior Health
The fourth quarter results reflect lower sales from a less
tenured agent mix. Approximately 17,000 policies were approved by
health carriers, which represents 17% fewer policies than the prior
year period. The lifetime value of commissions per approved policy
(“LTV”) was $1,109 which, beginning in the fourth quarter of 2023,
includes marketing development funds that are now contractually
earned on a per policy basis. The contract acquisition costs per
approved policy (“CAC”) were $878.
Fourth quarter revenues of $20.1 million declined $7.7 million,
or 28% compared to the prior year period, largely driven by lower
sales volume in the current period. The pre-tax operating loss of
$2.7 million reflected higher CAC due to lower productivity from
newer agents. The Company did not contribute cash to the segment in
2023.
Corporate and Other Distributed Products
During the fourth quarter of 2023, the segment recorded an
adjusted operating pre-tax loss of $5.4 million compared to an
adjusted operating pre-tax loss of $8.8 million in the fourth
quarter of 2022. The improvement was driven by a $7.5 million
increase in adjusted net investment income, partially offset by a
$3.3 million increase in benefits and claims for an adjustment made
to the ceded reserves estimate for a closed block of non-term life
insurance business.
Taxes
The effective tax rate was 22.9% in the fourth quarter of 2023
compared to 21.4% in the prior year period. The effective tax rate
in the prior year period was lower than the current year period
because it included a tax benefit from revaluing the Canadian
deferred tax asset to reflect an incremental Canadian federal tax
enacted in December of 2022.
Capital
During the fourth quarter, the Company repurchased $72.5 million
of its common stock, completing the Board of Directors'
authorization to repurchase $375 million of common stock during
2023. On November 16, 2023, the Board authorized a new $425 million
share repurchase program to occur through December 31, 2024.
Primerica has a strong balance sheet, including invested assets
and cash at the holding company of $382 million. Primerica Life
Insurance Company’s statutory risk-based capital (RBC) ratio was
estimated to be approximately 435% as of December 31, 2023.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
U.S. generally accepted accounting principles (“GAAP”), the Company
presents certain non-GAAP financial measures. Specifically, the
Company presents adjusted direct premiums, other ceded premiums,
adjusted operating revenues, adjusted operating income before
income taxes, adjusted net operating income, adjusted stockholders’
equity and diluted adjusted operating earnings per share.
Adjusted direct premiums and other ceded premiums are net of
amounts ceded under coinsurance transactions that were executed
concurrent with our initial public offering (the “IPO coinsurance
transactions”) for all periods presented. We exclude amounts ceded
under the IPO coinsurance transactions in measuring adjusted direct
premiums and other ceded premiums to present meaningful comparisons
of the actual premiums economically maintained by the Company.
Amounts ceded under the IPO coinsurance transactions will continue
to decline over time as policies terminate within this block of
business.
Adjusted operating revenues, adjusted operating income before
income taxes, adjusted net operating income and diluted adjusted
operating earnings per share exclude the impact of investment gains
(losses) and fair value mark-to-market (“MTM”) investment
adjustments, including credit impairments, for all periods
presented. We exclude investment gains (losses), including credit
impairments, and MTM investment adjustments in measuring these
non-GAAP financial measures to eliminate period-over-period
fluctuations that may obscure comparisons of operating results due
to items such as the timing of recognizing gains (losses) and
market pricing variations prior to an invested asset’s maturity or
sale that are not directly associated with the Company’s insurance
operations. Adjusted operating income before taxes, adjusted net
operating income, and diluted adjusted operating earnings per share
also exclude transaction-related expenses/recoveries associated
with the purchase of e-TeleQuote Insurance, Inc. and subsidiaries
(collectively, “e-TeleQuote”), adjustments to share-based
compensation expense for shares exchanged in the business
combination, and non-cash goodwill impairment charges. We exclude
e-TeleQuote transaction-related expenses/recoveries and non-cash
goodwill impairment charges as these are non-recurring items that
will cause incomparability between period-over-period results. We
exclude adjustments to share-based compensation expense for shares
exchanged in the business combination to eliminate
period-over-period fluctuations that may obscure comparisons of
operating results primarily due to the volatility of changes in the
fair value of shares which were acquired for no additional
consideration. Adjusted operating income before income taxes and
adjusted net operating income exclude income attributable to the
noncontrolling interest to present only the income that is
attributable to stockholders of the Company.
Adjusted stockholders’ equity excludes the impact of net
unrealized investment gains (losses) recorded in accumulated other
comprehensive income (loss) for all periods presented. We exclude
unrealized investment gains (losses) in measuring adjusted
stockholders’ equity as unrealized gains (losses) from the
Company’s available-for-sale securities are largely caused by
market movements in interest rates and credit spreads that do not
necessarily correlate with the cash flows we will ultimately
realize when an available-for-sale security matures or is sold.
Adjusted stockholders’ equity also excludes the difference in
future policy benefits calculated using the current discount rate
and future policy benefits calculated using the locked-in discount
rate at contract issuance recognized in accumulated other
comprehensive income. We exclude the impact from the difference in
the discount rate in measuring adjusted stockholders' equity as
such difference is caused by market movements in interest rates
that are not permanent and may not align with the cash flows we
will ultimately incur when policy benefits are settled.
Our definitions of these non-GAAP financial measures may differ
from the definitions of similar measures used by other companies.
Management uses these non-GAAP financial measures in making
financial, operating and planning decisions and in evaluating the
Company’s performance. Furthermore, management believes that these
non-GAAP financial measures may provide users with additional
meaningful comparisons between current results and results of prior
periods as they are expected to be reflective of the core ongoing
business. These measures have limitations and investors should not
consider them in isolation or as a substitute for analysis of the
Company’s results as reported under GAAP. Reconciliations of GAAP
to non-GAAP financial measures are attached to this release.
Earnings Webcast Information
Primerica will hold a webcast on Wednesday, February 14, 2024,
at 10:00 a.m. Eastern, to discuss the quarter’s results. To access
the webcast, go to https://investors.primerica.com at least 15
minutes prior to the event to register, download and install any
necessary software. A replay of the call will be available for
approximately 30 days. This release and a detailed financial
supplement will be posted on Primerica’s website.
Forward-Looking Statements
Except for historical information contained in this press
release, the statements in this release are forward-looking and
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements contain known and unknown risks and uncertainties that
may cause our actual results in future periods to differ materially
from anticipated or projected results. Those risks and
uncertainties include, among others, our failure to continue to
attract and license new recruits, retain sales representatives or
license or maintain the licensing of sales representatives; new
laws or regulations that could apply to our distribution model,
which could require us to modify our distribution structure;
changes to the independent contractor status of sales
representatives; our or sales representatives’ violation of or
non-compliance with laws and regulations; litigation and regulatory
investigations and actions concerning us or sales representatives;
differences between our actual experience and our expectations
regarding mortality, persistency, disability or insurance as
reflected in the pricing for our insurance policies; changes in
federal, state and provincial legislation or regulation that
affects our insurance, investment product and mortgage businesses;
our failure to meet regulatory capital ratios or other minimum
capital and surplus requirements; a significant downgrade by a
ratings organization; the failure of our reinsurers or reserve
financing counterparties to perform their obligations; the failure
of our investment products to remain competitive with other
investment options or the loss of our relationship with one or more
of the companies whose investment products we provide; heightened
standards of conduct or more stringent licensing requirements for
sales representatives; inadequate policies and procedures regarding
suitability review of client transactions; revocation of our
subsidiary’s status as a non-bank custodian; we may not be able to
execute an effective senior health insurance business strategy; a
failure by e-TeleQuote to comply with the requirements of the
United States government’s Centers for Medicare and Medicaid
Services and those of its carrier partners; legislative or
regulatory changes to Medicare Advantage or changes to the
implementing guidance by the Centers for Medicare and Medicaid
Services; e-TeleQuote’s inability to acquire or generate leads on
commercially viable terms, convert leads to sales or if customer
policy retention is lower than assumed; e-TeleQuote’s inability to
enroll individuals during the Medicare annual election period; the
loss of a key carrier, or the modification of commission rates or
underwriting practices with a key carrier partner could adversely
affect e-TeleQuote’s business; a significant change to or
disruption in the mortgage lenders’ mortgage businesses or an
inability of the mortgage lenders to satisfy their contractual
obligations to us; economic downcycles that impact our business,
financial condition and results of operations; major public health
pandemics, epidemics or outbreaks or other catastrophic events; the
failure of our or a third-party partner’s information technology
systems, breach of our information security, failure of our
business continuity plan or the loss of the Internet; any failure
to protect the confidentiality of client information; the current
legislative and regulatory climate with regard to privacy and
cybersecurity; cyber-attack(s), security breaches or if e-TeleQuote
is otherwise unable to safeguard the security and privacy of
confidential data, including personal health information; the
effects of credit deterioration and interest rate fluctuations on
our invested asset portfolio and other assets; incorrectly valuing
our investments; changes in accounting standards may impact how we
record and report our financial condition and results of
operations; the inability of our subsidiaries to pay dividends or
make distributions; litigation and regulatory investigations and
actions; a significant change in the competitive environment in
which we operate; the loss of key personnel or sales force leaders;
the efficiency and success of business initiatives to enhance our
technology, products and services; any acquisition or investment in
businesses that do not perform as we expect or are difficult to
integrate; and fluctuations in the market price of our common stock
or Canadian currency exchange rates. These and other risks and
uncertainties affecting us are more fully described in our filings
with the Securities and Exchange Commission, which are available in
the "Investor Relations" section of our website at
https://investors.primerica.com. Primerica assumes no duty to
update its forward-looking statements as of any future date.
About Primerica, Inc.
Primerica, Inc., headquartered in Duluth, GA, is a leading
provider of financial products and services to middle-income
households in North America. Independent licensed representatives
educate Primerica clients about how to better prepare for a more
secure financial future by assessing their needs and providing
appropriate solutions through term life insurance, which we
underwrite, and mutual funds, annuities and other financial
products, which we distribute primarily on behalf of third parties.
We insured approximately 5.7 million lives and had approximately
2.9 million client investment accounts on December 31, 2023.
Primerica, through its insurance company subsidiaries, was the #3
issuer of Term Life insurance coverage in the United States and
Canada in 2022. Primerica stock is included in the S&P MidCap
400 and the Russell 1000 stock indices and is traded on The New
York Stock Exchange under the symbol “PRI”.
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Unaudited)
December 31, 2023
December 31, 2022
(In thousands)
Assets
Investments:
Fixed-maturity securities
available-for-sale, at fair value
$
2,719,467
$
2,495,456
Fixed-maturity security held-to-maturity,
at amortized cost
1,386,980
1,444,920
Short-term investments available-for-sale,
at fair value
276
69,406
Equity securities, at fair value
29,680
35,404
Trading securities, at fair value
18,383
3,698
Policy loans and other invested assets
51,175
48,713
Total investments
4,205,961
4,097,597
Cash and cash equivalents
613,148
489,240
Accrued investment income
23,958
20,885
Reinsurance recoverables
3,015,777
3,209,540
Deferred policy acquisition costs, net
3,447,234
3,188,502
Renewal commissions receivable
190,258
200,043
Agent balances, due premiums and other
receivables
273,066
254,276
Goodwill
127,707
127,707
Intangible assets, net
175,025
185,525
Income taxes
123,514
93,632
Operating lease right-of-use assets
53,693
40,500
Other assets
382,549
428,259
Separate account assets
2,395,842
2,305,717
Total assets
$
15,027,732
$
14,641,423
Liabilities and Stockholders'
Equity
Liabilities:
Future policy benefits
$
6,742,025
$
6,297,906
Unearned and advance premiums
14,876
15,422
Policy claims and other benefits
payable
513,803
538,250
Other policyholders' funds
435,094
483,769
Notes payable
593,709
592,905
Surplus note
1,386,592
1,444,469
Income taxes
135,247
204,018
Operating lease liabilities
61,358
45,995
Other liabilities
583,434
580,780
Payable under securities lending
99,785
100,938
Separate account liabilities
2,395,842
2,305,717
Total liabilities
12,961,765
12,610,169
Stockholders' equity
Common stock
350
368
Paid-in capital
-
-
Retained earnings
2,276,946
2,153,617
Accumulated other comprehensive income
(loss), net of income tax:
Effect of change in discount rate
assumptions on the liability for future policy benefits
(39,086
)
130,416
Unrealized foreign currency translation
gains (losses)
(2,235
)
(12,279
)
Net unrealized gains (losses) and foreign
currency translation
(170,008
)
(240,868
)
Total stockholders' equity
2,065,967
2,031,254
Total liabilities and stockholders'
equity
$
15,027,732
$
14,641,423
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Income
(Unaudited)
Three months ended December
31,
2023
2022
(In thousands, except
per-share amounts)
Revenues:
Direct premiums
$
834,275
$
812,481
Ceded premiums
(410,182
)
(406,088
)
Net premiums
424,093
406,393
Commissions and fees
246,837
226,720
Net investment income
37,644
28,530
Investment gains (losses)
835
2,846
Other, net
16,929
22,451
Total revenues
726,338
686,940
Benefits and expenses:
Benefits and claims
168,739
161,055
Future policy benefits remeasurement
(gain) loss
746
958
Amortization of deferred policy
acquisition costs
70,378
66,867
Sales commissions
116,747
103,161
Insurance expenses
57,420
58,883
Insurance commissions
9,030
7,280
Contract acquisition costs
15,079
14,952
Interest expense
6,586
6,768
Other operating expenses
84,572
80,443
Total benefits and expenses
529,297
500,367
Income before income taxes
197,041
186,573
Income taxes
45,106
39,851
Net income
$
151,935
$
146,722
Earnings per share attributable to
common stockholders:
Basic earnings per share
$
4.30
$
3.95
Diluted earnings per share
$
4.30
$
3.94
Weighted-average shares used in
computing earnings per share:
Basic
35,149
36,974
Diluted
35,208
37,081
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Income
(Unaudited)
Year ended December
31,
2023
2022
(In thousands, except
per-share amounts)
Revenues:
Direct premiums
$
3,312,125
$
3,230,120
Ceded premiums
(1,651,811
)
(1,629,892
)
Net premiums
1,660,314
1,600,228
Commissions and fees
950,416
944,676
Net investment income
135,837
93,065
Investment gains (losses)
(5,896
)
(995
)
Other, net
75,020
83,159
Total revenues
2,815,691
2,720,133
Benefits and expenses:
Benefits and claims
642,979
632,403
Future policy benefits remeasurement
(gain) loss
(384
)
1,626
Amortization of deferred policy
acquisition costs
275,816
261,629
Sales commissions
457,444
462,764
Insurance expenses
235,460
235,405
Insurance commissions
34,222
30,261
Contract acquisition costs
55,233
68,431
Interest expense
26,594
27,237
Goodwill impairment loss
-
60,000
Other operating expenses
336,647
320,394
Total benefits and expenses
2,064,011
2,100,150
Income before income taxes
751,680
619,983
Income taxes
175,079
152,953
Net income
$
576,601
$
467,030
Net income (loss) attributable to
noncontrolling interests
-
(5,038
)
Net income attributable to Primerica,
Inc.
$
576,601
$
472,068
Earnings per share attributable to
common stockholders:
Basic earnings per share
$
15.97
$
12.37
Diluted earnings per share
$
15.94
$
12.33
Weighted-average shares used in
computing earnings per share:
Basic
35,954
37,997
Diluted
36,027
38,106
PRIMERICA, INC. AND
SUBSIDIARIES
Consolidated Adjusted
Operating Results Reconciliation
(Unaudited)
Three months ended December
31,
2023
2022
% Change
(In thousands, except
per-share amounts)
Total revenues
$
726,338
$
686,940
6
%
Less: Investment gains (losses)
835
2,846
Less: 10% deposit asset MTM included in
NII
1,215
(409
)
Adjusted operating revenues
$
724,288
$
684,503
6
%
Income before income taxes
$
197,041
$
186,573
6
%
Less: Investment gains (losses)
835
2,846
Less: 10% deposit asset MTM included in
NII
1,215
(409
)
Adjusted operating income before income
taxes
$
194,991
$
184,136
6
%
Net income
$
151,935
$
146,722
4
%
Less: Investment gains (losses)
835
2,846
Less: 10% deposit asset MTM included in
NII
1,215
(409
)
Less: Tax impact of preceding items
(469
)
(520
)
Adjusted net operating income
$
150,354
$
144,805
4
%
Diluted earnings per share (1)
$
4.30
$
3.94
9
%
Less: Net after-tax impact of operating
adjustments
0.05
0.05
Diluted adjusted operating earnings per
share (1)
$
4.25
$
3.89
9
%
____________________
(1)
Percentage change in earnings per share is
calculated prior to rounding per share amounts.
PRIMERICA, INC. AND
SUBSIDIARIES
Consolidated Adjusted
Operating Results Reconciliation
(Unaudited)
Year ended December
31,
2023
2022
% Change
(In thousands, except
per-share amounts)
Total revenues
$
2,815,691
$
2,720,133
4
%
Less: Investment gains (losses)
(5,896
)
(995
)
Less: 10% deposit asset MTM included in
NII
(446
)
(3,830
)
Adjusted operating revenues
$
2,822,033
$
2,724,958
4
%
Income before income taxes
$
751,680
$
619,983
21
%
Less: Investment gains (losses)
(5,896
)
(995
)
Less: 10% deposit asset MTM included in
NII
(446
)
(3,830
)
Less: e-TeleQuote transaction-related
expenses
-
1,992
Less: Equity comp for awards exchanged
during acquisition
-
(3,584
)
Less: Noncontrolling interest
-
(6,797
)
Less: Goodwill impairment
-
(60,000
)
Adjusted operating income before income
taxes
$
758,022
$
693,197
9
%
Net income
$
576,601
$
467,030
23
%
Less: Investment gains (losses)
(5,896
)
(995
)
Less: 10% deposit asset MTM included in
NII
(446
)
(3,830
)
Less: e-TeleQuote transaction-related
expenses
-
1,992
Less: Equity comp for awards exchanged
during acquisition
-
(3,584
)
Less: Noncontrolling interest
-
(6,797
)
Less: Goodwill impairment
-
(60,000
)
Less: Tax impact of preceding items
1,494
3,303
Adjusted net operating income
$
581,449
$
536,941
8
%
Diluted earnings per share (1)
$
15.94
$
12.33
29
%
Less: Net after-tax impact of operating
adjustments
(0.13
)
(1.70
)
Diluted adjusted operating earnings per
share (1)
$
16.07
$
14.03
15
%
____________________
(1)
Percentage change in earnings per share is
calculated prior to rounding per share amounts.
TERM LIFE INSURANCE
SEGMENT
Adjusted Premiums
Reconciliation
(Unaudited)
Three months ended December
31,
2023
2022
% Change
(In thousands)
Direct premiums
$
829,918
$
807,796
3
%
Less: Premiums ceded to IPO coinsurers
210,310
224,240
Adjusted direct premiums
619,608
583,556
6
%
Ceded premiums
(410,456
)
(404,174
)
Less: Premiums ceded to IPO coinsurers
(210,310
)
(224,240
)
Other ceded premiums
(200,146
)
(179,934
)
Net premiums
$
419,462
$
403,622
4
%
CORPORATE AND OTHER
DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results
Reconciliation
(Unaudited)
Three months ended December
31,
2023
2022
% Change
(In thousands)
Total revenues
$
53,207
$
44,833
19
%
Less: Investment gains (losses)
835
2,846
Less: 10% deposit asset MTM included in
NII
1,215
(409
)
Adjusted operating revenues
$
51,157
$
42,396
21
%
Loss before income taxes
$
(3,327
)
$
(6,325
)
47
%
Less: Investment gains (losses)
835
2,846
Less: 10% deposit asset MTM included in
NII
1,215
(409
)
Adjusted operating loss before income
taxes
$
(5,377
)
$
(8,762
)
39
%
PRIMERICA, INC. AND
SUBSIDIARIES
Adjusted Stockholders' Equity
Reconciliation
(Unaudited)
December 31, 2023
December 31, 2022
% Change
(In thousands)
Stockholders' equity
$
2,065,967
$
2,031,254
2
%
Less: Net unrealized gains (losses)
(170,008
)
(240,868
)
Less: Effect of change in discount rate
assumptions on the liability for future policy benefits
(39,086
)
130,416
Adjusted stockholders' equity
$
2,275,061
$
2,141,706
6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240213079583/en/
Investor Contact: Nicole Russell 470-564-6663 Email:
Nicole.Russell@primerica.com
Media Contact: Susan Chana 404-229-8302 Email:
Susan.Chana@Primerica.com
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