Primerica Reports Fourth Quarter 2010 Results
Net income of $52.9 million; Diluted EPS of $0.69
Net operating income of $45.2 million; Diluted operating EPS of $0.59
Strong Investment and Savings Products performance
DULUTH, Ga.--(BUSINESS WIRE)-- Primerica, Inc. (NYSE: PRI) announced today financial results for the fourth quarter ended December 31, 2010. Total revenues were $279.4 million for the fourth quarter of 2010. Net income was $52.9 million for the fourth quarter of 2010, or $0.69 per diluted share.
Operating revenues were $264.5 million, compared to $250.1 million in the fourth quarter of 2009. Net operating income was $45.2 million, or $0.59 per diluted share, for the fourth quarter of 2010, compared with $42.6 million in the fourth quarter of 2009. Results reflect stable core performance in Term Life as well as Investment and Savings Products growth partially offset by lower investment income. Operating results during the quarter excluded $0.10 per diluted share largely related to certain reinsurance recoveries discussed in detail below.
Net income was $257.8 million for 2010, compared to $494.6 million for 2009. Net income for all of 2009 as well as the first quarter of 2010 did not reflect the impact of the Citi reinsurance and reorganization transactions. Adjusted to reflect these transactions as well as other operating adjustments described below, net operating income was $161.5 million for 2010, compared with $158.4 million for 2009.
D. Richard Williams, Chairman of the Board and Co-Chief Executive Officer said, "Our fourth quarter was marked by solid net operating income and earnings per share, reflecting continued growth in both term life net premium and investment and savings products sales. Our strong capitalization, focus on growth strategies and unique sales distribution position us well to enhance shareholder value."
John Addison, Chairman of Primerica Distribution and Co-Chief Executive Officer said, "We are proud of what we have been able to accomplish since becoming a public company and we are working on new products and initiatives that we believe will drive long-term growth for Primerica."
Distribution Results
-- Recruiting increased by 4% in fourth quarter 2010 compared to the same
period a year ago. Relative to the third quarter, the fourth quarter of
2010 experienced a lower percentage of new recruits obtaining a life
license and higher non-renewals largely reflecting a higher number of
states with renewal cycles in the fourth quarter. As a result, the size
of our life-licensed insurance sales force decreased on both a
sequential quarter and year-over-year basis to 94,850 at December 31,
2010. During the quarter we enhanced our new "Fast Start Bonus" to
provide additional incentives for our newest recruits to engage in
licensing activities as well as recruiting and field training
observations.
-- Term life net premium grew by 10% in the fourth quarter of 2010 compared
to the third quarter of 2010 as we added another quarter of new term
life business following the Citi reinsurance transactions. Life
insurance policies issued decreased by 7% in fourth quarter 2010 from a
year ago in line with industry term life trends. Sequentially, life
insurance policies issued increased 4% in fourth quarter 2010 largely
reflecting typical lower sales in the summer months. Total face amount
in force increased by $6.60 billion to $656.79 billion at December 31,
2010 over December 31, 2009 primarily due to the effect of the stronger
Canadian dollar and improved persistency.
-- Investment and savings products sales continued to grow, up 9% in fourth
quarter 2010 from a year ago primarily driven by a 23% increase in
annuity sales. Growth in annuity sales continued to outpace the industry
in fourth quarter 2010, reflecting our clients' desire to mitigate
financial risk with guaranteed lifetime income. Sequentially, investment
and savings products sales increased 10% in the fourth quarter of 2010.
Client asset values were driven higher by improved market conditions, up
11% to $34.87 billion at December 31, 2010 from a year ago.
Operating Adjustments
Our operating results exclude realized investment gains and losses and the expense associated with our IPO-related equity awards. For the fourth quarter of 2010, our Term Life segment operating results also excluded $13.1 million of pre-tax income related to ceded premium recoveries which previously had not been recognized due to the uncertain nature of their recovery. Given the magnitude, we excluded these recoveries from our operating results because we believe they are not indicative of our ongoing operations.
Unusual Accounting Items
During the quarter ended December 31, 2010, we accrued certain items that previously had been accounted for on a cash basis. These items contributed net income of approximately $0.01 per diluted share and were insignificant to prior periods. The corrections reflect one-time adjustments that impact various line items and segments as follows:
-- Term Life Insurance: increase in other insurance expenses of $4.0
million primarily related to premium taxes;
-- Investment and Savings Products: increase in commissions and fees
revenues of $11.6 million with a corresponding increase in sales
commission expense of $6.8 million both primarily related to 12b-1
commissions; and
-- Corporate and Other Distributed Products: increase in commissions and
fees revenues of $0.4 million.
The impact of these corrections is reflected in both our actual and operating segment results below. These corrections will not have an ongoing impact on earnings.
Segment Results
Primerica operates in two primary business segments: Term Life Insurance and Investment and Savings Products, and has a third segment, Corporate and Other Distributed Products. Results for the segments were as follows:
Actual Operating (1)
Q4 2010 Q4 2009 % Change Q4 2010 Q4 2009 %
Change
Revenues: ($ in thousands) ($ in thousands)
Term Life $ 137,068 $ 437,176 -69 % $ 123,927 $ 125,130 -1 %
Insurance
Investment
and Savings 103,021 82,954 24 % 103,021 82,954 24 %
Products
Corporate
and Other 39,298 58,472 -33 % 37,598 42,020 -11 %
Distributed
Products
Total $ 279,387 $ 578,602 -52 % $ 264,546 $ 250,104 6 %
revenues
Income
(loss)
before
income
taxes:
Term Life $ 52,000 $ 156,392 -67 % $ 38,859 $ 43,937 -12 %
Insurance
Investment
and Savings 34,769 26,095 33 % 34,769 26,095 33 %
Products
Corporate
and Other (6,247 ) 16,484 -138 % (4,786 ) (2,739 ) -75 %
Distributed
Products
Total
income
before $ 80,522 $ 198,971 -60 % $ 68,842 $ 67,293 2 %
income
taxes
(1) See the Non-GAAP Financial Measures section and the Operating Results
Reconcilations at the end of this release for additional information.
Term Life Insurance. Operating revenues were down slightly versus the prior year period reflecting lower sales partially offset by improved persistency. Investment income was lower largely related to the performance of the Citi reinsurance trust assets. Additionally, during the fourth quarter of 2010 we recognized a $3.0 million ceded premium recovery from a reinsurer that was previously deemed uncollectible. Operating income before income taxes decreased by 12%, or $5.1 million, versus the prior year period reflecting the $4.0 million one-time accounting correction to insurance expenses noted above. Excluding the impact of this item, insurance expenses were flat year-over-year as the expected run-off in reinsurance expense allowances from Citi was offset by non-recurring expenses in fourth quarter of 2009. Year-over-year trends in DAC amortization and benefits and claims reflected improved persistency, the lower interest rate assumption on new business issued in 2010 and level claims experience.
On a sequential quarter basis, fourth quarter 2010 operating revenues increased by 7%, or $8.0 million, largely as a result of growth in New Term premiums, the $3.0 million ceded premium recovery noted above and the performance of the reinsurance trust assets. Excluding the one-time accounting adjustment, operating benefits and expenses increased by 11%, or $7.7 million driven by the growth in New Term premiums and higher DAC amortization from seasonally lower fourth quarter persistency.
Investment and Savings Products. Operating revenues and income before income taxes in the fourth quarter of 2010 were both driven by higher sales and increased client asset values. Excluding the $11.6 million accounting correction noted previously, operating revenues increased to $91.4 million, or 10% over the prior year period. Excluding the $4.8 million net accounting correction, operating income before income taxes increased to $29.9 million, or 15% compared to fourth quarter a year ago. Growth in operating income before income taxes outpaced the growth in operating revenues primarily due to a volume-related incentive payment we earned for strong 2010 variable annuity sales.
Corporate and Other Distributed Products. Operating revenues decreased by 11%, or $4.4 million, in the fourth quarter of 2010 from a year ago, largely due to lower investment income primarily attributable to lower yield on invested assets and continued diminishing loan sales that had little impact on operating income before income taxes. Segment operating loss before income taxes was $4.8 million in the fourth quarter of 2010 and $2.7 million in the same period of 2009. This change primarily reflected lower investment income.
Corporate expense payments to Citi were lower by $2.2 million in the fourth quarter of 2010 compared to the prior year period, offset by $3.1 million in stand-alone public company expenses which continue to emerge as we transition from Citi-provided services. In addition, expenses in fourth quarter 2009 included non-recurring IPO-related expenses. Overall, expenses were flat compared to the prior year period.
Income Taxes
Our effective income tax rate for fourth quarter 2010 was 34.3%, compared to 36.6% for the same quarter a year ago reflecting the retroactive extension of certain expiring provisions in the United States tax law that previously required us to accelerate the recognition of tax on foreign investment income. We also benefited from a lower tax rate in Canada.
Capital and Liquidity
Primerica continues to be well capitalized, with a high-quality invested asset portfolio and positive cash flow for the quarter. Investments and cash totaled $2.28 billion as of December 31, 2010. Our invested asset portfolio had a net unrealized gain of $157.4 million (net of unrealized losses of $7.4 million) at December 31, 2010, down from a net unrealized gain of $188.9 million at September 30, 2010 as interest rates increased during the fourth quarter. Net realized gains for the quarter were $1.7 million, with minimal other-than-temporary impairments. As of December 31, 2010, the book yield on our fixed-income portfolio was 5.48%; including cash it was 5.15%.
As of December 31, 2010, our debt-to-capital ratio remained low at 17.3%. Net operating income return on adjusted stockholders' equity was 13.8% for the quarter ended December 31, 2010. Net income return on stockholders' equity was 14.9% for the same period.
Primerica Life Insurance Company, our primary underwriter, had statutory capital in excess of the applicable statutory requirements to support existing operations and to fund future growth. With a statutory risk-based capital (RBC) ratio estimated to be in excess of 570% as of December 31, 2010, we continue to be well positioned to support anticipated future growth.
Citi Reinsurance and Reorganization Transactions
In connection with Primerica's April 1, 2010 initial public offering, the Company executed a series of reinsurance and reorganization transactions. These transactions had a significant impact on our financial position and will cause our financial results in the current and future periods to be materially different from those reflected in our historical financial statements. Accordingly, management believes that our operating results, which reflect the effect of these transactions, represent meaningful comparisons between 2010 and 2009.
Non-GAAP Financial Measures
We report financial results in accordance with U.S. generally accepted accounting principles (GAAP). We also present operating revenues, operating income before income taxes, net operating income and adjusted stockholders' equity. Operating revenues, operating income before income taxes and net operating income exclude the impact of realized investment gains and losses for all periods presented and in fourth quarter 2010, income related to ceded premium recoveries which previously had not been recognized due to the uncertain nature of their recovery. Operating income before income taxes and net operating income exclude the expense associated with our IPO-related equity awards for all periods presented. Operating income (loss) before income taxes for all periods in 2009 reflects segment expense allocation reclassifications. Adjusted stockholders' equity excludes the impact of net unrealized gains and losses on invested assets for all periods presented. Periods ending prior to April 1, 2010 also give effect to the reinsurance and reorganization transactions as if they had occurred at the beginning of the period presented for the statement of income. 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 our financial 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 our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Reconciliations of non-GAAP to GAAP financial measures are attached to this release.
Earnings Webcast Information
Primerica will hold a webcast Wednesday, February 9, 2011 at 9:00 am EST, to discuss fourth quarter results. This release and a detailed financial supplement will be posted on Primerica's website. Investors are encouraged to review these materials. To access the webcast go to http://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 on Primerica's website, http://investors.primerica.com.
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 attract new recruits, retain sales representatives and maintain the licensing of our sales representatives; our or our sales representatives' violation of, non-compliance with or subjection to specific laws and regulations; incorrect assumptions used to price our insurance policies; the failure of our investment and savings products to remain competitive with other investment or savings options or the loss of our relationship with companies that offer our mutual fund or variable annuity products; our failure to meet RBC standards or other minimum capital and surplus requirements; a downgrade or potential downgrade in our insurance subsidiaries' financial strength ratings; inadequate or unaffordable reinsurance or the failure of our reinsurers, including Citi, to perform their obligations; a discontinuation of custodial or recordkeeping services; the inability of our subsidiaries to pay dividends or make distributions; the loss of key personnel; conflicts of interests due to Citi's and Warburg Pincus' significant interests in us; arrangements with Citi that may not be sustained at the same levels as when we were controlled by Citi and incremental costs that we incur as a stand-alone public company; historical and pro forma financial data may not be a reliable indicator of future results; and general changes in economic and financial conditions, including the effects of credit deterioration and interest rate fluctuations on our portfolio. 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 http://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.
About Primerica, Inc.
Primerica, headquartered in Duluth, Georgia, is a leading distributor of financial products to middle income households in North America with approximately 95,000 licensed representatives. We offer our clients term life insurance, mutual funds, variable annuities and other financial products. Primerica insures 4.3 million lives and more than 2 million clients maintain investment accounts with the Company. Primerica's mission is to serve middle income families by helping them make informed financial decisions and providing them with the strategies and means to gain financial independence.
PRIMERICA, INC.
Balance Sheets
(In thousands)
December 31, 2010 December 31,
(Unaudited) 2009 (1)
Assets
Investments:
Fixed maturity securities available for sale, $ 2,081,361 $ 6,378,179
at fair value
Equity securities available for sale, at fair 23,213 49,326
value
Trading securities, at fair value 22,767 16,996
Policy loans and other invested assets 26,243 26,947
Total investments 2,153,584 6,471,448
Cash and cash equivalents 126,038 602,522
Accrued investment income 22,328 71,382
Premiums and other receivables 168,026 169,225
Due from reinsurers 3,731,634 867,242
Due from affiliates - 1,915
Deferred policy acquisition costs 853,211 2,789,905
Intangible assets 75,357 78,895
Other assets 303,602 569,268
Separate account assets 2,446,786 2,093,342
Total assets $ 9,880,566 $ 13,715,144
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 4,409,183 $ 4,197,454
Unearned premiums 5,563 3,185
Policy claims and other benefits payable 229,895 218,390
Other policyholders' funds 357,253 382,768
Note payable 300,000 -
Income taxes 126,260 890,617
Due to affiliates - 202,507
Other liabilities 386,182 273,007
Payable under securities lending 181,726 510,101
Separate account liabilities 2,446,786 2,093,342
Total liabilities 8,442,848 8,771,371
Stockholders' equity:
Common stock 728 -
Paid-in capital 889,394 1,124,096
Retained earnings 395,057 3,648,801
Accumulated other comprehensive income, net of 152,539 170,876
income tax
Total stockholders' equity 1,437,718 4,943,773
Total liabilities and stockholders' equity $ 9,880,566 $ 13,715,144
(1) Does not give effect to the Citi reinsurance and reorganization
transactions.
PRIMERICA, INC.
Statements of Income
(Unaudited - in thousands, except per-share amounts)
Three Months Ended Dec. 31,
2010 2009 (1)
Revenues:
Direct premiums $ 548,330 $ 535,417
Ceded premiums (417,981 ) (160,018 )
Net premiums 130,349 375,399
Net investment income 26,688 90,450
Commissions and fees 108,288 89,301
Realized investment gains, including OTTI 1,700 9,503
Other 12,362 13,949
Total revenues 279,387 578,602
Benefits and expenses:
Benefits and claims 52,033 148,448
Amortization of deferred policy acquisition costs 29,536 111,506
Insurance commissions 4,204 6,989
Insurance expenses 15,887 32,989
Sales commissions 50,266 42,001
Interest expense 6,976 -
Other operating expenses 39,963 37,698
Total benefits and expenses 198,865 379,631
Income before income taxes 80,522 198,971
Income taxes 27,633 72,890
Net income $ 52,889 $ 126,081
Earnings per share:
Basic $ 0.70
Diluted $ 0.69
Shares used in computing earnings per share:
Basic 72,453
Diluted 73,240
(1) Does not give effect to the Citi reinsurance and reorganization
transactions.
PRIMERICA, INC.
Statements of Income
(Unaudited - in thousands, except per-share amounts)
Twelve Months Ended Dec. 31,
2010 2009 (1)
Revenues:
Direct premiums $ 2,181,074 $ 2,112,781
Ceded premiums (1,450,367 ) (610,754 )
Net premiums 730,707 1,502,027
Net investment income 165,111 351,326
Commissions and fees 382,940 335,986
Realized investment gains, including OTTI 34,145 (21,970 )
Other 48,960 53,032
Total revenues 1,361,863 2,220,401
Benefits and expenses:
Benefits and claims 317,703 600,273
Amortization of deferred policy acquisition costs 168,035 381,291
Insurance commissions 19,904 34,388
Insurance expenses 75,503 148,760
Sales commissions 179,924 162,756
Interest expense 20,872 -
Other operating expenses 180,779 132,978
Total benefits and expenses 962,720 1,460,446
Income before income taxes 399,143 759,955
Income taxes 141,365 265,366
Net income $ 257,778 $ 494,589
Earnings per share:
Basic $ 3.43 (2)
Diluted $ 3.40 (2)
Shares used in computing earnings per share:
Basic 72,099 (2)
Diluted 72,882 (2)
(1) Does not give effect to the Citi reinsurance and reorganization
transactions.
(2) Pro forma basis using weighted-average shares, including the shares
following our April 1, 2010 corporate reorganization as though they have been
issued and outstanding on January 1, 2010.
PRIMERICA, INC.
Operating Results Reconciliation
(Unaudited - in thousands, except per-share amounts)
Three Months Ended December 31, 2010
Operating Operating Reported
(Non-GAAP) adjustments (GAAP)
Revenues:
Direct premiums $ 548,330 $ - $ 548,330
Ceded premiums (431,122 ) 13,141 (417,981 )
Net premiums 117,208 13,141 130,349
Net investment income 26,688 - 26,688
Commissions and fees 108,288 - 108,288
Realized investment gains, including - 1,700 1,700
OTTI
Other, net 12,362 - 12,362
Total revenues 264,546 14,841 279,387
Benefits and expenses:
Benefits and claims 52,033 - 52,033
Amortization of DAC 29,536 - 29,536
Insurance commissions 4,204 - 4,204
Insurance expenses 15,887 - 15,887
Sales commissions 50,266 - 50,266
Interest expense 6,976 - 6,976
Other operating expenses 36,802 3,161 39,963
Total benefits and expenses 195,704 3,161 198,865
Income before income taxes 68,842 11,680 80,522
Income taxes 23,625 27,633
Net income $ 45,217 $ 52,889
Earnings per share - diluted $ 0.59 $ 0.69
Diluted shares 73,240 73,240
See the Non-GAAP Financial Measures section and the segment Operating Results
Reconciliations for additional information.
PRIMERICA, INC.
Operating Results Reconciliation
(Unaudited - in thousands)
Three Months Ended December 31, 2009
Adjustments Adjustments
Operating for for Operating Reported
(Non-GAAP) the Citi the adjustments (GAAP)
Reinsurance Reorganization
Transactions
Revenues:
Direct $ 535,417 $ - $ - $ - $ 535,417
premiums
Ceded (419,050 ) 259,032 - - (160,018 )
premiums
Net premiums 116,367 259,032 - - 375,399
Net
investment 30,487 52,111 7,852 - 90,450
income
Commissions 89,301 - - - 89,301
and fees
Realized
investment
gains, - - - 9,503 9,503
including
OTTI
Other, net 13,949 - - - 13,949
Total 250,104 311,143 7,852 9,503 578,602
revenues
Benefits and
expenses:
Benefits and 49,123 99,325 - - 148,448
claims
Amortization 32,339 79,167 - - 111,506
of DAC
Insurance 4,936 1,484 - 569 6,989
commissions
Insurance 12,060 24,133 - (3,204 ) 32,989
expenses
Sales 42,001 - - - 42,001
commissions
Interest 7,289 (3,164 ) (4,125 ) - -
expense
Other
operating 35,063 - (3,161 ) 5,796 37,698
expenses
Total
benefits and 182,811 200,945 (7,286 ) 3,161 379,631
expenses
Income
before 67,293 110,198 15,138 6,342 198,971
income taxes
Income taxes 24,652 72,890
Net income $ 42,641 $ 126,081
See the Citi Reinsurance and Reorganization Transactions section, the Non-GAAP
Financial Measures section and the segment Operating Results Reconciliations for
additional information.
PRIMERICA, INC.
Operating Results Reconciliation
(Unaudited - in thousands)
Twelve Months Ended December 31, 2010
Adjustments Adjustments
Operating for for Operating Reported
(Non-GAAP) the Citi the adjustments (GAAP)
Reinsurance Reorganization
Transactions
Revenues:
Direct $ 2,181,074 $ - $ - $ - $ 2,181,074
premiums
Ceded (1,759,836 ) 296,328 - 13,141 (1,450,367 )
premiums
Net premiums 421,238 296,328 - 13,141 730,707
Net
investment 110,376 47,566 7,169 - 165,111
income
Commissions 382,940 - - - 382,940
and fees
Realized
investment
gains, - - - 34,145 34,145
including
OTTI
Other, net 48,960 - - - 48,960
Total 963,514 343,894 7,169 47,286 1,361,863
revenues
Benefits and
expenses:
Benefits and 189,499 128,204 - - 317,703
claims
Amortization 96,646 71,389 - - 168,035
of DAC
Insurance 18,235 1,669 - - 19,904
commissions
Insurance 49,420 26,083 - - 75,503
expenses
Sales 179,924 - - - 179,924
commissions
Interest 27,809 (2,812 ) (4,125 ) - 20,872
expense
Other
operating 149,085 - (3,076 ) 34,770 180,779
expenses
Total
benefits and 710,618 224,533 (7,201 ) 34,770 962,720
expenses
Income
before 252,896 119,361 14,370 12,516 399,143
income taxes
Income taxes 91,412 141,365
Net income $ 161,484 $ 257,778
See the Citi Reinsurance and Reorganization Transactions section, the Non-GAAP
Financial Measures section and the segment Operating Results Reconciliations for
additional information.
PRIMERICA, INC.
Operating Results Reconciliation
(Unaudited - in thousands)
Twelve Months Ended December 31, 2009
Adjustments Adjustments
Operating for for Operating Reported
(Non-GAAP) the Citi the adjustments (GAAP)
Reinsurance Reorganization
Transactions
Revenues:
Direct $ 2,112,781 $ - $ - $ - $ 2,112,781
premiums
Ceded (1,694,790 ) 1,084,036 - - (610,754 )
premiums
Net premiums 417,991 1,084,036 - - 1,502,027
Net
investment 118,345 202,482 30,499 - 351,326
income
Commissions 335,986 - - - 335,986
and fees
Realized
investment
gains, - - - (21,970 ) (21,970 )
including
OTTI
Other, net 53,032 - - - 53,032
Total 925,354 1,286,518 30,499 (21,970 ) 2,220,401
revenues
Benefits and
expenses:
Benefits and 176,287 423,986 - - 600,273
claims
Amortization 101,560 279,731 - - 381,291
of DAC
Insurance 27,635 5,523 - 1,230 34,388
commissions
Insurance 54,219 96,615 - (2,074 ) 148,760
expenses
Sales 162,756 - - - 162,756
commissions
Interest 27,493 (10,993 ) (16,500 ) - -
expense
Other
operating 132,134 - (34,770 ) 35,614 132,978
expenses
Total
benefits and 682,084 794,862 (51,270 ) 34,770 1,460,446
expenses
Income
before 243,270 491,656 81,769 (56,740 ) 759,955
income taxes
Income taxes 84,843 265,366
Net income $ 158,427 $ 494,589
See the Citi Reinsurance and Reorganization Transactions section, the Non-GAAP
Financial Measures section and the segment Operating Results Reconciliations for
additional information.
Term Life Insurance Operating Results Reconciliation
(Unaudited - in thousands)
Three months ended December 31,
2010 2009
Operating revenues $ 123,927 $ 125,130
Reinsurance recoveries adjustment 13,141 -
Citi reinsurance transaction adjustments - 311,143
Reorganization adjustments - 903
Total revenues $ 137,068 $ 437,176
Operating income before income taxes $ 38,859 $ 43,937
Reinsurance recoveries adjustment 13,141 -
Citi reinsurance transaction adjustments - 110,198
Reorganization adjustments - 903
Insurance commissions - segment allocation - (1,850 )
reclass
Insurance expenses - segment allocation reclass - 3,204
Income before income taxes $ 52,000 $ 156,392
Corporate and Other Distributed Products Operating Results Reconciliation
(Unaudited - in thousands)
Three months ended December 31,
2010 2009
Operating revenues $ 37,598 $ 42,020
Realized investment gains, including OTTI 1,700 9,503
Reorganization adjustments - 6,949
Total revenues $ 39,298 $ 58,472
Operating loss before income taxes $ (4,786 ) $ (2,739 )
Realized investment gains, including OTTI 1,700 9,503
Other operating expense - equity awards (3,161 ) (3,161 )
Reorganization adjustments - 14,235
Insurance commissions - segment allocation - 1,281
reclass
Other operating expense - segment allocation - (2,635 )
reclass
(Loss) income before income taxes $ (6,247 ) $ 16,484
PRIMERICA, INC.
Adjusted Stockholders' Equity Reconciliation
(Unaudited - in thousands)
December 31,
2010
Adjusted stockholders' equity $ 1,341,672
Unrealized net investment gains recorded in stockholders' equity 96,047
Stockholders' equity $ 1,437,719
Source: Primerica, Inc.
Released February 8, 2011